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Trade-strategy

How To Calculate Pip Value, Risk & Trade Size TutorialHey Traders, in this idea we are going to break down step by step, how a professional trader calculates pip value, risk and trade size. The focus of this lesson is aimed towards helping you get an idea of how you can create your own risk management plan in order to remain consistently profitable over a long period of time. You can have the best strategy in the world and still lose consistently without a solid risk management plan. In fact, in my personal experience with teaching traders, I have found that many traders who do not succeed are actually using a profitable strategy! These traders would have made money if they followed their risk management rules but that tends to go out the window when we do not see how the numbers work out for ourselves (among many other reason). It is important that you use these calculations that I have broken down on these charts over and over again until it makes perfect sense to you and then apply them to your own trading. If you do nothing else at least make sure the numbers work for you! I hope this short tutorial helps you get started on creating your own risk management plan and please be sure to comment below with any questions you may have. If you like this tutorial please give this lesson a thumbs up and I will cover more on this topic In a future lesson. Thanks Traders, If you would like access to a spreadsheet that automatically calculates all of this for you, please request one using the link below and I will send you my personal spreadsheet for free. goo.gl Also if you have not done so please follow me at TradersNsights Facebook page as I plan to start posting daily market updates and predictions over there that may be helpful to you. www.facebook.com
Education
by Alec40
17
EUR/JPY LONG TERM TRADEAs the green C movement was the last part of the Elliot Wave, we are now waiting to se some consolidating in the 122 level. If that occurs we could consider trading the break out and go for the pink C of the ABC pattern. This is a super long term trade. It could take up to 24 months. By the way, the 122.5 level is a key level that we better be carefull as it could leave a great short opportunity in the short term, or even in a longer term as the Green ABC would then be a 12345 and would then start the B to C pink pattern. Let me guys know what you think.
by lluiszardoya
1
USD/JPY GOLDEN 4H SIMPLE STRATEGY/ VERY ACCURATE Along side my trend channels and range trading, I like to use this set up for some extra pips and when back tested works very well over most months (Will probably move to only this strategy when I can guarantee consolidation is not taking place) It cuts all emotions out of trading when I use it with the right money management. Everyone should know that moving averages will indicate direction of price and wether you should be buying or selling with the trend. Gold stars indicate correct setup. Arrows are entry. Red line is SL movement. STRATEGY: SMA CROSS & BOUNCE TIMEFRAME: 4H (Will give traders time to enjoy their life and trades can be made simply from mobiles on the go) CHARTS: USD/JPY GBP/JPY (Works the best because of high volatility) INDICATORS: MA (50/200) BB (20) RULES: BUY ENTRY 1. BB (MA20) must be above MA (50) 2. Price must cross above both BB (MA20) & MA (50) 3. Price must test BB (MA20) as support while above MA (50) 4. Bullish conformation candle from support 5. Buy/Long Entry is made. RULES: SELL ENTRY 1. BB (MA20) must be below MA (50) 2. Price must cross below both BB (MA20) & MA (50) 3. Price must test BB (MA20) as resistance while below MA (50) 4. Bearish conformation candle from resistance 5. Sell/Short Entry is made RULES: SL AND HOW TO PLAY IT 1. SL Placed at bottom/top wick of conformation candle depending on buy/sell 2. Allow price to move in trade direction 3. When price retests MA(20) SL is moved to top/bottom wick of candle 4. repeat until price no longer stays above/below MA(20) and hits SL. I have given 2 previous example of how this strategy works in the past few weeks, I hope you all enjoy it and would love some feedback and some helpful information to combat consolidation periods. Current signal for Long order highlighted. Please use strategy with your own judgement.
Long
by RenkoBuddy
5
Correlation Trading - How to Trade Forex With Little to No Risk!Tonight we did a live stream on YouTube offering an in-depth explanation of correlation trading. You can watch the stream back in its entirety here www.youtube.com Below will be a written explanation of correlation trading utilizing the AUDJPY vs. NZDJPY as the example: Correlation trading is an amazing way to add diversification to your trading portfolio and in your trade plan. You can continue your trading plan and strategy but take advantage of correlation trading opportunities as they arise to increase your ability to profit from the forex market. In correlation trading the objective is to find currency pairs that are highly correlated, meaning that when one pair moves in any given direction the other pair also moves in that same direction. A great example of this would be the AUDJPY vs. the NZDJPY. Over the past year the correlation between the two pairs has been very positive, 92% of the time over the past year the two pairs have been moving in sync with one another. This correlation can be confirmed by using the Oanda correlation chart: Once you have confirmed that you are looking at two pairs that are highly correlated to one another, you will want to then look into the charts and compare the price action over the past year. TradingView makes this very convenient with the ability to overlay charts. When we overlay the NZDJPY chart on the AUDJPY chart (candlesticks=AUDJPY, bars=NZDJPY) we can clearly see the times of the year when the two pairs were moving very much in sync and the times where the correlation cracked a bit and the two pairs moved oddly in opposing directions. It is during these times when the correlation cracks that provides us with the immensely profitable and essentially risk free trading opportunities. If you notice on the chart throughout the past year you will see highlighted in yellow boxes all of the times when the correlation has cracked and a gap has formed. We can look at these moments and estimate the average maximum gap in correlation and use this information to gauge when to take a correlation trade on this pair. You will notice every time the correlation has cracked and a gap in price action has formed, price inevitably moved back in correlation narrowing and even closing the gap You will also notice if you look back at the widest portion of the gap from every time there was a crack in correlation that it has been roughly anywhere between 400-500 pips . If we look at the second to most recent gap in correlation that we have labeled on the chart you will notice that at its widest point the gap in price was roughly 600 pips; the high being at 85.500 and the low being at 80.700. If we were watching this occur as it was happening and we noticed the gap in correlation approaching 400 pips and then 500 pips and then 600 pips, forming the widest gap in correlation all year, we could then look to take a correlation trade between these pairs. In this given example around 3/11/16 we would look to take equal positions of long NZDJPY and short AUDJPY banking on the fact that the gap in correlation should statistically, with 92% likelihood, narrow and potentially even close completely so that the two pairs are moving back in correlation with one another. You will see that if we did this we covered on 3/30/16 we would have netted ourselves a fruitful profit of 300 pips. Our short position in AUDJPY would have been down about 20 pips or so but our long in NZDJPY would have been up about 340 pips. This profit came with little to no direction risk because as one position goes against you the other statistically should go in your favor and if you are not netting a profit at any given moment your loss should be simnifically reduced as compared to what it would be if you were only holding the losing position.
Education
by UnknownUnicorn261897
13
HOW NOT TO GET A MARGIN CALL?HA-HA, I think I can hear what you're saying now about money management, and about my words. But look, to be consistent in profit we must do a couple of things on a regular basis. 1 Follow our system or a trading approach with no excuse - to keep the statistics. 2 Not to be afraid to trade, when we see a signal. 2 Use our stop losses without any excuses, and no matter what you think: - oh , the volatility is high, so the stop loss I will double in the amount of pips - oh, the news are coming today, will use what the news will say without a stop loss at all - I'm a bit late with the entry, will use a wider stop loss. etc. etc. well, we all have been there, all of the professional traders, all of them. thoughts, mistakes and other things :) Guys, the journal you need for your statistics, of what works and what is not, and your work is to follow what works. Basically, those who used limit orders have made some on Friday, those who used a proper stop loss probably even made some money back, but those who didn't use a proper money management are staying with hope over the weekend, and others are thinking, why did I do that. Didn't want to be rude or something, just want to call everyone with a word DISCIPLINE!!!! always think before!!!
by Marenno
2