Fading Yen - It has gone parabolic

Discussion in 'Forex' started by gmst, Jan 17, 2013.

  1. Maverick74

    Maverick74

    About to take out the highs.
     
    #41     Jan 24, 2013
  2. can anyone break down what virtual FX is compared to real FX put a trade on the recent low to go long.. and it has never prompted me to go virtual or real before.. i'm with IB .. i wasn't thinking went virtual and then of course had to call IB to close the position.. i closed it just because it wasn't clear to me what i did.. obviously the trade would have done well.. but the guy tried to explain it to me i just didn't understand..
     
    #42     Jan 24, 2013
  3. real is actual value
    virtual is just to keep things straight
    often times the virtual will be a little messed up (like by 1 dollar)
    just right click and go to adjust position (don't forget the minus sign if you are short)

    when it's time to close out, you can go to real and right click close currency and that will close out all residual currency balances

    it would get complicated if you operated in real, because the amounts would be odd, especially with GBP

    so the virtual is just so you can use round numbers


    yeah, it messed me up when I first started, I was flat, but had $200 margin and balance was changing, I called, and they said right click and close all non base currency, and that got the margin down to about $2.00.

    it can get silly sometimes, if you are left with less than 25k, because you pay $2.50 to close out a small position

    I know I'm not explaining it very well, but you will get it

    just periodically close out a position by using the real window and right clicking close, otherwise you will be left with residual which you may not want

    if you are trading crosses, it will convert to your base automatically

    ask somebody else who can use all the proper terms

    but that's how I do it
     
    #43     Jan 25, 2013
  4. its just another way to account for the transaction..
     
    #44     Jan 25, 2013
  5. well, check your real positions. That's what you would be trading in real life. It would get very cumbersome, especially if you were scalping.

    so in the virtual, you can round it out to usd, and move around that way

    the virtual does the conversion for you (but not to the penny)

    that's why you need to occasionally close out in the real

    if you ever want to get flat at the market, it's a no brainer, just go to real, and right click close
     
    #45     Jan 25, 2013
  6. it makes sense... the "virtual" keyword threw me off..
     
    #46     Jan 25, 2013
  7. murrica

    murrica

    Well, I suppose 1.1100 on the yen futures is something of a line in the sand.. and this does correspond roughly to the 90 resistance on the multi-decade chart.

    On the daily, we are in a controlled channel at this time, so I will be watching to see how the lower channel line holds up.. volatility has obviously increased around this resistance area and there is a clear threat to breach this.. (one could strongly argue it has already been breached since we busted 90 and busted 1.1100).

    I'm just curious to see how the relation between this 90 resistance and this lower channel on the daily interact. (90 is just a rough estimate of the resistance area, so I would use that lower channel line on the daily as a 'grace').

    I just wouldn't be thrilled about scaling to 94 with a stop at 96, that's all. I am simply looking for some evidence that this might not be, at least for the time being, a continuation of the trend of the past few months.

    This is just my view. Please be responsible for your own trading decisions. I am not placing any trades at this time on the USDJPY pair, nor on any related derivatives.

    [​IMG]
     
    #47     Jan 25, 2013
  8. Maverick74

    Maverick74

    So why not go long from 90 to 94. I never understood this kind of analysis. If one wants to scale from 90 to 94, why wait. If you believe price is going there, get long now.
     
    #48     Jan 25, 2013
  9. murrica

    murrica

    Yeah, that's a good point. I always try to make things unnecessarily complicated. 1.1100 / 90 was breached. Breakouts/breakdowns are more reliable in a trending market. KISS.

    I am just trying to look at things from an alternate perspective, that's all. Long/short biases have hurt me in the past, as it has made it difficult to adapt to the actual market conditions when my original theories were incorrect.
     
    #49     Jan 25, 2013
  10. gmst

    gmst

    So, we got 3 more scale-ins today at 90.5, 90.75 and 91 for 0.25% risk each.

    So, total risk now = 1.25%.

    After price made a 88.065 and reversed, I wanted to close the 0.5% risk around 85.5 for a 150 pip gain. However, I decided to leave it since my intention in this thread is to demonstrate a hands-off method to fade parabolic moves with TP and SL placed in advance with the broker. A simple way to trade that guys who are working a full-time job can follow.
     
    #50     Jan 25, 2013