Not entirely true - Maybe on a single trade basis and if the trader is using discretion on each single trade. It very much depends on the phenomenon a trader is trying to exploit. My partner an I have carried out hundreds of statistical tests over ...

why is everyone so afraid to average down?

It depends on the definition of a losing trade. Too many traders are calculating their maximum loss in pips based on a certain value per pip which ultimately represents a certain percentage of capital. If you know the amount in dollars and % you are ...

why is everyone so afraid to average down?

Indeed it can be done - but is it worth to stick with a bad position? Main thing is to know at the entry of the first unit of a full position, at what % loss of the overall capital to pull the plug. In other words, if you are intending to add to a ...

why is everyone so afraid to average down?

It's not going to happen - at least not in such a way that all member states would simultaneously abandon the Euro. I have been trading most of the old currencies including D-Mark, Lira, French Franc Dutch Guilder etc.. Many thought at the time that ...

Who has traded since before the time of euro?

To write an EA so a trader can watch TV or play or play golf or go to sleep are also not the origins of thinking behind the inception of automatic trading. I have been once told that as long as a trader in its human form can execute what he/she is ...

Why does Automated trading never seem to work?

Great post. The fact that 'robots' or 'EAs' or programmes are often designed to run 24h should tell us something here. Namely that the opportunities most of them are trying to exploit are based on very small moves in the market. Exploitable ...

Why does Automated trading never seem to work?

hahahaha.....I like the fact that you have reduced your overheads by plugging the PC into the street lamp.

Show us your workstation!

What do you want to do in terms of market direction? You said '...but I placed a short/limit...' Do you want to buy or sell with that order? regards daytrding

Limit Order Question

No need - If you are 6 pips form being stopped out (i.e. at -44pips), there is nothing easier than to trigger your stop at -50 without creating any problems for them - and you are out of your position.

Why does Automated trading never seem to work?

Hi Hanover, There comes the dilemma: 'how to define a trend' Lets assume for sake of keeping the discourse short and concise that trends do exist in FX (and that as a contained asset class, FX operates very different from commodity or equity ...

Gaining an edge from your exit

Hi Hanover, Unless I misunderstood Tharpe (and ultimately Tom Basso on whom the example was based in the book 'trade your way to financial freedom'), the 'random entry' illustration was used to exemplify the importance of money management and ...

Gaining an edge from your exit

I think nobody in their right mind would dispute the logic you are offering: ask anyone whose business is of a trading nature whether they would want to sell a product at, or below cost. So far, so good. Nevertheless, even with your stance on ...

Gaining an edge from your exit

Don't ever underestimate the huge ego's attached to some of the best traders. Not that one should generalize that each hyper-successful trader naturally comes with such an ego - but rest assured some do. I have met some and it is not always a bad ...

Why 61.8%?

Exits - While many traders enter too fast and impulsive, they are confused by immediately following price action in the decision making process for exits. When you exit a trade, there is no way of knowing if it was the best time, too early or too ...

Gaining an edge from your exit

Hey man - good to see another ex-icap dude. nice post(s) agree with the tooling; only professional hardware - at least for short term execution. regards daytrading

GoMarkets Discussion

OPM $25million X 1% (per month) = $250.000 X 20% = $50.000 (per month) Own Cash $100.000 X 10% (per month) = $10.000 (per month) I know which one I'd go for. Keeping in mind that producing 10% pm (or 120% per annum) on a consistent basis (over ...

Attracting Investor Capital

It becomes more difficult to achieve higher percentage returns with huge sums under management. It is also not necessary. Most people never have as much own money to find out. I still rather manage $25m of OPM and achieve 1% per month (from which I ...

Attracting Investor Capital

If I am not mistaken, all the candles you see represent 15 pips movement - it can be seen by the time scale on the bottom of the chart. One of those bars finishes only after a movement of 15 pips - however long that may take (quick during UK/US ...

Range bars - anyone trading them?

True.

Domino's Price and order flow trading

Bear in mind the following: although you might perceive that one follows the other, the cash market never really follows the futures. The reason being that a heavy load of cash transactions happen for reasons other than speculation and are therefore ...

Domino's Price and order flow trading