Are my lines and where I would have taken trades correct? Many thanks for sharing your knowledge with us DB. Good karma to you sir.
This thread is not about entries. For that you'd have to open up a journal, if you want to pursue this, or, in this case, an FX thread, if you don't. I will say, though, that applying this to currencies is difficult since you can't rely on AMT to help you. Rather you are in a tiny boat in a stormy sea trying not to capsize. The commissions alone may sink you, and never mind the spread. Have you given up the idea of automated trading?
DB, thanks for your reply. Are you saying this method will not work with other instruments like FX and stocks, or not worth pursuing with other instruments? Also not sure what you mean by "Have you given up the idea of automated trading?" Ahh! think I see what you mean, my previous posts. These are old posts when I was just starting out in the world of trading
It will "work", but that's not to say you'll earn enough to make it worthwhile. It's so much easier and more profitable to choose something that's mean-reverting. I've never cared enough about FX to look into it more than casually, and I haven't traded stocks since '98. The automated trading question had to do with your previous posts.
Okay, I see what you mean. I am a newbie and still trying to find my way, and I was under the impression that futures and options were a bit more difficult to trade than FX. Well that's the impression I get - most people start trading FX or stocks before eventually moving on to futures, options etc
Many beginners start with FX and options because they appear to be cheap, i.e., the FX and options, although the beginners tend to be cheap as well or they wouldn't be looking for such low barriers to entry. Be that as it may, you needn't take anybody's word for anything. Whatever you decide to trade has to be characterized, unless you want to spend several years wandering in the weeds. If you don't know what characterization is, see Appendix E here. If you want to see how this works in practice, look at lajax's journals on the CL and NQ.
well , i do have the habit , to try and trade in "foresight" even if a particular channel or range etc.. hasent been formed per se.. the lines are there "just in case" .... but in this case it played out quite well.. as u notice price reacted at the "mean" no other line was in sight (trading in foresight) at best SLA could tell u a pot. reversal.. but with conjunction of the "mean" ... its easier to get out or pull the trigger... but thats just me..
to me that range and its mean got obsolete as soon as price didnt respected it and somewaht whipsawed thru it several times... but one isnt lost .. as the 50% mark of the downmove is what one couldashoulda have focused on..