I do take into account correlation but it doesn't affect my trading much. I'd always short the weakest and long the strongest. E.g. I have a Eur bearish bias now, thus i'd look for the strongest currency to go against the Euro. Fartist

Trend Trading System

If you're winning 35% of the time, then it means you're losing 65% of the time. So the probability of losing a trade is 0.65 Probability of losing 2 trades in a row is 0.65*0.65 Probability of losing 10 trades in a row is 0.65^10 You'd get 1.3% ...

Trend Trading System

That's nice Hugo. I hope you have some position remaining to ride this downtrend. Fartist

Trend Trading System

Hi Kk, Please refer to this post here. Trend can exist on any time frame, thus you need to come up with your own trading time frames to define your own trend to trade. Let me know if you have any doubt still. Fartist

Trend Trading System

And now some of you would probably be wondering, so Fartist how much do i risk per trade? Textbooks are saying no more than 2% on each trade. Is that true? My answer to you would be it depends. So what does it depends on? You. If you're adopting a ...

Trend Trading System

We want to maintain risking a constant % of our initial capital (R) on each trade. No matter what the volatility of the instrument or the size of the Stoploss. And this formula will do just that. Stoploss in pips * Position Size = R Let's assume I'm ...

Trend Trading System

Thinking in terms of R You've probably come across traders shouting out the hundreds of pips they made in a day or the 10% gain in a week. But if you ask me, all these are noise. Why? Well, you could be risking 1000 pips and made 500 pips, a risk ...

Trend Trading System

Hi Callum, As mentioned it all depends on your psychological 'muscles'. Some people like you would be able to withstand larger draw downs compared to others. Turtle traders had a go big or go home approach to trend trading. One moment they could be ...

Trend Trading System

Hi Traders! Good to see you guys are doing well. With regards to the 3 duck strategy, i believe it's a trend trading approach as well. Thus it would be no surprise to see some similarities with it. Trend trading isn't simply a strategy to me rather ...

Trend Trading System

Trade Management After you're in a trade, what next? Well you could be one of those trader who adopt a 'set and forget' approach and leave the market to either hit your SL or TP. Or be more pro active because markets are never static. The ebb and ...

Trend Trading System

Thank you for your inputs California & Wuhui. Yes i intend to go through examples like what you've mentioned. At the moment i hope to go through trend trading on a deeper level, enabling traders to develop their own trading plan. After which i will ...

Trend Trading System

If you guys do realize by now, I'm providing the tools you could use for your trading arsenal. What tools you want to deploy is entirely up to you. There's no right or wrong here but what fits you best. Which brings me to my point, no 2 traders ever ...

Trend Trading System

"It never was my thinking that made the big money for me. It always was my sitting" — Jesse Livermore Entries are not going to earn you a single dime or cause your downfall but your exits will. The importance of exits are usually neglected and left ...

Trend Trading System

Greetings All! Thank you for your continued interest as well as posting charts on Sugar. I will be posting my next topic which is on "exits" soon. Fartist

Trend Trading System

Yes good spotting! I did short there and was stopped out on that trade. Fartist

Trend Trading System

It doesn't dilute my profits. The trading principle is all the same just that on a lower scale. I still use the same trade management irregardless of the entries. Holding onto my profits till price tells me to get out. I won't suggest going down ...

Trend Trading System

Yes you're right. I trade this approach also on the weekly daily 4hour and even daily 4hour 1 hour. Let me know if that clarifies your question Fartist

Trend Trading System

Another example. Both monthly and weekly are below 50 EMA, thus i'm looking to sell only. image image image

Trend Trading System

That's a good question Callum. You need to understand that the FX markets used to be very trendy (07-09 period). However given the shift in regulations and policies, alot of prop trading desk in banks are closing down. This partly explains the low ...

Trend Trading System

Hi Dennis, Again please read the posting guidelines here. I need to see the charts on the weekly and monthly to know where we are in the bigger picture. Also we do not trade reversals here but trade with the trend. Fartist

Trend Trading System