Get started

Trading Plan

Visual Signals Versus Data Driven ResultsMany traders fall into the habit of judging a trading system or methodology by observing visual signals. A visual signal can range from a bot or algorithm signals, moving average interactions, a stochastic cross, or a plethora of other common patterns. Observation is the first step to finding a successful trading system but relying solely on visual cues will leave you open to selection bias. In other words, people tend to focus on the signals that worked and ignore the ones that didn’t. In addition to selection bias, if you make adjustments to an indicator or strategy based on visual cues without knowing the results in terms of accuracy and profit, you may suffer from what we call cascading changes, also known as unforeseen side effects. Tuning For Results The opposite of relying on visual cues is basing your decisions on the past results of a trading system. While past results do not guarantee future results, a pattern that has produced historical net profit is likely to work to some degree in the future. Indicators and systems that are packaged with backtesting logic allow you to make adjustments to the system and then view how your changes affect real outcomes like net profit, trade accuracy, and profit factor. Making indicator changes based on results means you are using data in your favor. Avoiding Selection Bias The fix for selection bias is simple. If a pattern looks good to your eyes, backtest it and ensure you locate every last instance of the pattern, especially failed outcomes. It’s also important that you backtest over a long time period and do so on multiple different tickers. Some systems work well over a specific date range on a certain ticker but are much less successful on other securities or date ranges. Those who are unable to write automated backtesting scripts will have to rely on manual backtesting or find others who provide backtesting suites. We highly recommend you avoid indicators and systems that do not include the ability to backtest and view past performance. It’s also best to remain skeptical when taking the word of many online influencers. Looking at a few signals that produced winning trades does not mean the system is capable of producing net profit over large sample sizes. In addition, only testing a system in a rampant bull market can be misleading. In other words, don’t fall victim to visual signals that don’t reveal results across time. Avoiding Cascading Changes When backtesting, sometimes tweaks you believe ought to improve your net profit do not produce the expected results. During extensive backtesting, many system changes we thought were improvements turned out to produce undesired outcomes. Not all changes improve your strategy even though the most recent visual signals appear better. For example, by adjusting a strategy variable to avoid a few unwanted losses you may inadvertently miss a few trades that were big winners. The same variables that produced the unwanted losses were the same variables that produced the big winners. Some of the best trading systems follow the trend and a pattern similar to the Pareto principle, which means a small number of trades produce a large amount of the total gains. Missing the big winning trades has a significant negative impact on your net profit. You will never know in advance if the trade will become a big winner, and anyone who tells you they know is naive. Trying to achieve perfect trade accuracy will cause you to miss many excellent opportunities. Adding more variables to a trading strategy means you are limiting the conditions that will activate a signal and increasing the likelihood your strategy will miss winning trades. A good strategy is strict, but simple, and does not attempt to achieve perfection. Technical analysis does not predict the future, it simply provides us with an indication that one outcome is more likely. Changing trading variables without knowing the full extent of your changes over time is akin to fighting with a blindfold on. Below you can observe the excellent gains produced by our Olympus Cloud backtest logic with only a 54% win rate.
NASDAQ:TSLAEducation
by Level8Trading
The Truth About Trade AccuracyA critical component relating to trading success is the relationship between your win percentage and your bottom line. Many new traders hold some extremely inaccurate views when it comes to what kind of win percentage is required to generate net profit, including the notion they need a 70% or higher win percentage to achieve success. This notion is wrong and misleading. The relationship between your win percentage, your risk management, and the profit you generate from each trade are intricately related. The beauty of this post is that the backtest logic in our Olympus Cloud indicator showcases the concepts covered with real trades, which is shown under this post in the data section. The Positive Win Percentage A win percentage over 50% is regarded as a probable edge or edge. Yet, even with a 60% win rate, you can generate a net loss. How? If your average loss is $100, but you are in the habit of falling prey to your emotions and prematurely selling your winners so you only generate an average of $50 when you win, you will lose money regardless of your 60% win rate. No trader goes into a trade thinking, “Hey, I’ll lose $100 if I’m wrong and I’ll make $50 if I’m correct.” Nevertheless, random wins of $75, $25, $60, $40, $90, and $10 will average out to $50 per win. No one purposely tries to win half of what they lose, but random trading combined with random emotions produces random results. We all desire winning and making good profits when we take a trade, but as emotions come into play, things quickly change. You may take a trade that reaches $75 in profit and then decide the move looks gassed out, so you sell. On another trade, you might get scared by some volatility, or notice a resistance you neglected to spot initially and sell for $25 of profit. It is all too common to fall prey to your emotions and behave in a way you didn’t plan to. The irony is, that you will regard the $25 trade as a winner, and it will raise your trade accuracy. Let’s look at a simple example: Example: 100 total trades with 60% trade accuracy 60 winning trades at an average of $50 per win = $3,000 40 losing trades at an average of $100 per loss = $4,000 Net loss of $1,000 In the example above, your break-even point is a 67% win percentage for a whopping $50 in profit. With this type of random risk and profit management, any meaningful net profit requires a win percentage upwards of 75-80%. The psychological damage of having a higher average loss than an average win is hard to quantify, but it’s easy to feel frustration when one loss wipes out two wins. While this sounds like common sense, many, many new traders fall into the habit of random profit management and find themselves in this undesirable situation. The same theory holds true even if you let your winners play out, but you also let your losses escalate and take a few big hits to your account. In either scenario, your 60% win rate means nothing. The Negative Win Percentage In the case of a negative win percentage, you can produce a net profit even if you are correct less than 50% of the time. In this scenario, your advantage over the market is getting into trades that consistently provide large gains when you win, and by letting those winners play out fully. Furthermore, you can’t hesitate to cut your losses and keep your drawdown controlled. With this kind of win rate, you must not sell early or your entire business model falls apart. You must understand that the big winners will make up for any profit you leave on the table. Let’s look at what happens if you are correct 40% of the time, but your average win is $100 and your average loss is $50: Example: 100 total trades with 40% trade accuracy 40 winning trades at an average of $100 per win = $4,000 60 losing trades at an average of $50 per loss = $3,000 Net gain of $1,000 It is now clear that win percentage is not everything. You can make money even if you are correct on 40% of your trades as long as your average win is double your average loss. The smaller your average win compared to your average loss, the higher your accuracy must be to make a net profit. Of course, if you can maintain a win percentage over 50% while also having proper risk and profit management you will end up far ahead. Putting It Together Clearly, the best approach is to combine a reasonable win percentage of over 50% with proper risk and profit management. You must consistently let your winners play out regardless of the emotions you feel in the moment and ensure you don’t take losses beyond a certain threshold. Furthermore, scaling out of trades – selling portions of your position as the market moves in your favor – will increase your accuracy and ease your mind. By dividing your position into two or three tranches you can lock in a certain amount of profit at predefined targets and then let the final portion ride out the trend with a trailing stop-loss. Revisiting our example, let’s put these concepts together with a reasonable win percentage: Example: 100 total trades with 55% trade accuracy 55 winning trades at an average of $100 per win = $5,500 45 losing trades at an average of $50 per loss = $2,250 Net gain of $3,250 Now, that’s what you want to see! It’s more important you behave in a consistent manner and follow a predefined game plan than it is to have 80% trade accuracy. It is wise to strive for reasonable trade accuracy – 50% to 65% – and remain consistent in order to fulfill your trading potential. After you have mastered your emotions with a consistent strategy, perhaps you can raise your win percentage to mythical values like 80%. As we have covered, though, such accuracy is not required for great trading results.
AMEX:TANEducation
by Level8Trading
1
STEP 1 to MASTER TRADING: Hindsight trading. Train your eyes.A common mistake that traders make after learning any kind of trading setup is jumping into backtesting using a replay tool, or even live trading. However, if you think about it, trading is very much about pattern recognition. And when you force yourself into live trading without a proper understanding of what your patterns look like, most likely you’ll need much more time to succeed. A different approach and much more effective would be using hindsight, that’s when you see what actually happened. During this process, try to find at least 50 high-quality setups, that represent your trading system. So you actually see everything that happened and find situations, where your edge played out, document it in your journal. That’s great training for your eyes and brain. You don’t need to guess, you will not feel anything, because you already see what happened, you’ll notice that sometimes your edge, your system doesn’t give you entries and price goes without you, sometimes, you’ll see a loser or a breakeven after your entry, start to get used to this, as it’s all part of your system. After that, you'll have a much better understanding and vision for your setup - and that could be the time to try some backtesting and forwardtesting. I’ll talk more about a different kind of backtesting in future posts. Meanwhile, take care, send your questions, and comments, will be glad to chat with you. Dima
Education
by Yelli_trades
1
Trading Insights #3: Mastering Your Mind Debriefing In the opening two parts of our Trading Insights Series we evaluated the importance of probability and random distribution, and then covered some key misconceptions relating to technical analysis and price movement. We recommend you start at part one and work your way up, but this entry can stand alone. Intro Your mind is the most powerful piece of the puzzle when it comes to your trading success. Without developing the mentality of a pro trader, you will never achieve the results you desire. When it comes to mastering your mind, we can think of no one better to draw influence from than Buddha. In this entry to the series, we intend to turn back the clock to see if we can glean some valuable insight and apply it to our trading endeavors. Trading Pitfalls There are several pitfalls most aspiring traders fall prey to when operating in the market. In our analysis, there are two categories of trading errors. We define these as conceptual errors and execution errors. While it’s tempting to focus on execution errors, we’ve found that addressing conceptual errors simultaneously fixes execution errors. Conceptual errors stem from inappropriate ideas about trading. These errors are: 1. Not believing you need a defined strategy 2. Blaming the market for your failures rather than taking responsibility 3. Trying to get rich quick by trading in an aggressive and reckless fashion 4. Not viewing your trading exploits over a set of trades and over-emphasizing individual trades Not believing you need a defined strategy This is one of the most common and difficult to break trading habits. The market is a limitless environment where you can do whatever you want, whenever you want. Many traders enjoy this type of freedom and struggle to develop or follow trading rules. Some traders say they recognize the importance of a defined game plan, but when it comes down to it they don’t embody or act out a belief that rules are necessary. By not having a gameplan, or not following your game plan, you will never allow yourself to find out what methods work best for you. When you factor in random variables based on your momentary perception you prevent yourself from learning what variables give you a real edge on the market over a set of trades. Many traders develop a plan, but when the moment comes they fail to execute their plan. This cycle tends to repeat itself over and over. “An idea that is developed and put into action is more important than an idea that exists only as an idea.” —Buddha It’s time to embrace action, not ideas. Create a plan and follow it for 20 to 30 trades. If the results are not what you hoped for, come up with a new plan, and try again. When you find something that works, stick with it until it doesn’t. In this way, you will learn, with a degree of certainty, what method produces the desired results. Blaming the market for your failures rather than taking responsibility for your actions Many traders fall into the habit of believing the market is responsible for their success or failure. The market is a dynamic sequence of events that has no feelings or emotions. It goes up, and it goes down. The market does not exist to make you a winner, just as it does not exist to make you a loser. If you depend on the market to make you a winner, the market can take your success away. If you trade like a gambler and the market gives you a series of winning trades, the market will eventually take the money back. Once you realize it’s up to you to get what you want from the market you will embrace the appropriate amount of responsibility. “It is better to conquer yourself than to win a thousand battles. Then the victory is yours. It cannot be taken from you, not by angels or by demons, heaven or hell.” —Buddha When you take a huge loss, it’s not the market's fault — it’s yours. The contradictory component here is that if you find yourself in a huge winning trade it’s not necessarily because you’re a great trader. Anyone with any degree of skill can stumble into a big winning trade, even a complete amateur. Therefore, big losses beyond what you define as acceptable are your fault, but big winners beyond what you can imagine are not a product of your ability. Why? Because you could have prevented the loss by using a risk management plan, but for the winner, you just happened to enter at the right moment and there is no guarantee it will happen again. Professionals don’t allow themselves to believe they are responsible for big winners — they understand it was just an occurrence of the behavior pattern that gives them an edge on the market and the next trade could very well be a controlled loss. If you believe that a single huge winning trade is more important than a consistent mindset you are missing the big picture. When you master the appropriate mental techniques the market cannot take your success away. You will keep the gains you make and you’ll have the ability to keep winning in a consistent fashion. It’s time to take responsibility and conquer your mind. Trying to get rich quick by trading in an aggressive and reckless fashion Many people get into trading because it seems like the easiest way to make money. In addition, they think it’s their ticket to quick riches, almost like winning the lottery. Indeed, a select few individuals have been extremely lucky and have gotten rich on pure gambles in the market. Yet, if these people kept trading in the same reckless fashion they were not rich for long. There are many high-risk ways to trade the market and inexperienced people are drawn to these methods by the lure of some fast life-changing cash. “Patience is key. Remember: A jug fills drop by drop.” —Buddha There are 252 trading days in a year. If a day trader can consistently earn just 0.5% on their account per day, they can gain 125% in a year. Alternatively, if a swing trader can earn 1-2% per week, they can gain 50 to 100% on their capital in the same period. Any money manager would be ecstatic to produce such results. If you cannot consistently earn 0.5% per day or 2% per week, what makes you think you can earn 100% in a month, and keep it? If getting rich trading the market was easy every retail trader who attempts to trade would be rich. Not viewing your trading exploits over a set of trades and overemphasizing individual trades Nearly every trader has the tendency to view each trade in a vacuum. In other words, each trade either proves or disproves the trader’s methodology or ability, and determines their emotional state. Any trade that does not meet the trader’s expectations causes frustration and mental distress. The problem is, that no trading system tells you what will happen on any given trade. A trading strategy only gives you an approximation of what you can expect over many trades. There is no other way a strategy can work. You must view each trade as a part of a set — this is what it truly means to think in probabilities. “Nothing ever exists entirely alone; everything is in relation to everything else.” —Buddha When you have a methodology that gives you a positive expectancy, you must learn that you will never know in advance which trade will work. Each trade has its own unique outcome but also exists as a part of many trades. When you have a system that tips the odds in your favor, you must view the big picture and not let losing trades affect your positive mindset.
NASDAQ:NFLXEducation
by Level8Trading
3
A simple trend-following strategySo I like to trade without speculation, but if I do decide trade *with* speculation, then this is a way that I like to do it. This is my version of the Turtle trading strategy. I really don't know or care what their specifics are, because I just don't have the patience for anyone who unironically trades daily timeframes. My version of this strategy is all about finding momentum candles that breach support and resistance and then giving them room to grow. So... first thing's first. Once you've decided on your level of risk, then under *no* circumstance can you break that during this process. I cannot make this any more clear! If your risk is $15, then it's $15 from start to finish. If it's $1000, then it's $1000 from start to finish. This way, as you follow the trend, you create a scenario for yourself where your wins (which will in all likelihood be less frequent than your losses) will be very big wins. We're talking like 15:1 ratios on a 1 minute chart wins. Now, because you have to stick to your level of risk, that means you have to get your math right when you're dragging around your stop losses on multiple tickets. If you have 4 buys in different positions, you have to get your exact stop loss level correct for all of them so that your total risk doesn't exceed what you risked when you started this trade setup. So the rules: 1) You enter on the close of a momentum candle (and a momentum candle *only*) that breaches a recent support or resistance. This is a break of structure and is indicative of a potential reversal. It does not mean the price is reversing, and it is likely you will lose this trade. You stop loss goes underneath the momentum candle, and that's how you'll measure your risk for the first ticket. 2) You only add to your position on momentum candles that come after a pullback. You're not looking for Fibonacci numbers or anything, but just look at the exact candlesticks. You want to see a conscious effort from your opposition trying to drive the price down, preferably with some consolidation candles that follow afterward. Then, when you see a momentum candle following the trend you're trying to ride (preferably with little to no wick in the trend direction), you add to that position. 3) You repeat step 2 until you have a ratio that you're happy with, or if you see a break of structure, as in a pullback pivot point being exceeded. That's it. That's the entire strategy. It's simple and effective, but it will only make you money if you're disciplined and stick to the rules. With that said, let's have more examples... I think I messed up in this picture actually - there's a break of structure right at the top of that first wave, so I probably would've seen the writing on the wall and would get out. The only reason one might stay in on this logically, is because the downward pressure isn't momentous. Identifying momentum is extremely important to this strategy. I would highly recommend mixing my non-speculative strategy in with this one so that you're not losing money by waiting (missing out), getting frustrated and entering on bad setups, or having to feel like you've taken a loss simply because you were wrong. My non-speculative limit order trade plan fuels my account to make these kinds of trades.
Education
by WinkleTrades
2
1% risk per trade is too much, try this insteadHello traders, Remember when you just started trading, almost everywhere you could hear about the 1% per trade risk rule? While this is not too bad, I think in most cases 1% risk is too much. Here's why: 1. If you're trading a 100k prop firm account, 1% is $1000. Imagine you have a very usual losing streak of 3-4 trades. Now you've lost 3-4%, and $3-4k in dollar amount. If you're a day trader, it could happen in one day easily. Ask yourself honestly, how would you feel about it all and if you will be capable of executing your edge? 2. Most prop firms will have a 5-10% drawdown breach rule So again, a very usual losing streak will take you halfway to account termination. 3. 1% risk leaves almost no room for days where you executed poorly or traded emotionally. We are all humans and we make mistakes. Something goes wrong and you trade the setup you were not supposed to be trading. And instead of stopping after 3 losers, you continue to trade more. So what can we do about it? My suggestion is very simple: risk no more than 0.1-0.25% per trade. If your average winner is 3-7RR, then with a good account size a 1% winner is just huge and more than enough. And if you're going through the evaluation process, such a small risk will keep your equity curve in control and still will allow you to grow it to profit targets. Hope it helps!
Education
by Yelli_trades
Weekly Quote | 7 Rules of a Consistent WinnerHello trader, here's a quote from the great book "Trading in the Zone". Hope you'll find some inspiration or maybe even practical advice here. I'm a consistent winner because: 1. I objectively identify my edges. 2. I predefine the risk of every trade. 3. I completely accept risk ($ risk, risk of not being right, not being perfect, being wrong, losing money, missing out, and leaving money on the table). If not - I am willing to let go of the trade. 4. I act on my edges without reservation or hesitation. 5. I pay myself as the market makes money available to me (take partials). 6. I continually monitor my susceptibility for making errors (emotional pain or euphoria). 7. I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them. Best Regards, Dima
OANDA:XAGUSDEducation
by Yelli_trades
2
Trade setups I would take and how to manage riskJust like this. Buy and sell limits above and below structure, as in the most recent highs/lows, with your TP in general being a return to structure. Brutally easy way to scalp and make money. Few more examples... This one shows where the stop loss might be. In general, I go with a 2/3 or 3/4 type rule, where I'll have a wide cluster of limits, then a gap, then a hard stop that closes all of them. Just in case. Your order clusters should be wide enough with this strategy that it almost never gets hit. Regular market movement should not be hitting your stop loss. That kind of behavior should generally be reserved for news events that catch you off guard. Now as far as actual risk goes, this is entirely determined by you and no one else. There's no single correct way to do this. A lot of people are dead set on the idea that you should never risk 10% of your account, but how big is the account? Is it $10,000? Is it $100? If it's $100, why not risk $50+ when the odds of a loss are very low? On EUR/USD, you might have a hard stop loss of 50 pips with 15 tickets separated by 2 pips each. Each ticket would be 1k (0.01 lots). If 1 pip on a 1k is $0.10, then a 50 pip stop loss is $5. Your second ticket is 2 pips away, so that loss would be $4.80. Third $4.60, and so on. It's doable, right? Maybe the price dips 20 pips into your counter-trend limit cluster, eating 10 limits. Then the price returns to the support or resistance near your starting point, and you decide to close all of your tickets. The profits from that would be $2.00, then $1.80, then $1.60, and so on. That might not seem like much in comparison to the stop loss, but consider this: your stop loss will have a 0-5% chance of ever getting hit. It's straight profit. And it's constant, and consistent. I cannot stress that enough! You can be doing this all day long. So, what if you want to follow a trend in this manner? It's the same deal, really... just throw limit orders below (or above) trending wicks. Like this: It's all just structure. You bet with structure, and you bet against structure. At all times. You only require a 50% retracement from your starting ticket in order to break even. If you even feel uncomfortable with what's going on in front of you, it doesn't take much for you to get out safely and start over with a new cluster of limits. There is absolutely nothing wrong with closing out safely. You'll be trading so frequently you aren't even a little bit obligated to let things "play out". Maybe you don't like how quickly the momentum built into your cluster, and it retraces down to the 50% area so you wanna break even, but then you start laying more limits above and below because you believe that momentum is likely to slow down. I'm gonna tear down a phrase that I'm sick of hearing: the trend is your friend . The trend could be the worst friend you've ever had. Sometimes he's really cool, and he's the life of the party. But he really likes hanging out with you, especially when nothing is going on. He really likes to wait! He doesn't exactly value your time, and he's perfectly content sitting in a chair next to you watching paint dry. He smacks the remote out of your hand when you try to turn on the TV. This trend guy can be a real jerk sometimes. You also suspect he might be bi-polar, because sometimes when you get excited to do things with him, his mood shifts the moment you open your mouth and suddenly the fun has been sucked out of the room. That is the trend. On some pairs like USD/JPY, a trend can go on for a very long time, and there's a lot of money to be made. The problem is it is speculative . You don't know where that trend is going to end. Nobody is clairvoyant, and most people will make incorrect guesses. If you simply remove this requirement of speculation, where you have to be "correct" in your guesses in order to make money, you will do better in almost any market. If your goal in trading is to make consistent money, then the trend is not your friend. He's an acquaintance at best. You have to associate with him in business and that's about it. You spend just as much time associating with the counter-trend, because you should be doing business with both of them constantly. Now, on the other hand, if your goal is to invest (AKA gambling), that's a separate concept entirely. You're trying to grow a tree from a seed when you invest, and there's nothing wrong with that. But most people cannot live off of it. You can't even order pizza with your investments until they come to fruition. A trader can make consistent money every single day, without knowing or caring where the market is going or what it's going to do. Price continues trend, price retests, trader makes money. Price reverses, price retests, trader makes money. That's it . No waiting for retarded "key support levels", no waiting for "confirmation", no speculation, no technical analysis. Just raw risk management, getting in and out of the market quickly and constantly. Now, the one downside to being this kind of trader is you generally can't do this easily with the basic tools provided by your platform, meaning you would need scripts, EAs or whatever in order to quickly deploy limit clusters. The tool I'm working on allows me to drag a horizontal line on the screen, and I have a panel of buttons that do interesting things. I can click "Sell limits" and a whole bunch of sell limit orders appear just above the line. I can move that line again and click "Adjust TP", and the take profits for all of those orders will appear right below the structural retest point I'm targeting. I have buttons to close profits, to close pendings, close all tickets... it's just the bees knees. This is an MT5 EA, which most people won't be using, but I trade on CryptoAltum so that's what I use. I will leave it here for free. Lastly, have some limit order porn. Every single rectangle is a place where you could've had limits that got filled and made money. On really strong trends, you might notice that the retracement only returns to around the 50% point of your limit cluster, but you'll notice how uncommon that is and how easily you could've gotten out with little to no loss. A lot of the time, I won't even restrict myself to structure (swing highs and swing lows) even though that's the most reliable way to do it. I'll literally just put limits above and below any wick because I feel like it and I can make a profit in all likelihood. ...Anyway. I hope you enjoyed this write-up. Leave a comment if you did, or have any questions!
Education
by WinkleTrades
The easiest way to make money tradingI'm going to show you one of the simplest, and most effective ways to trade. Period. Just about every other type of trading is speculation; this is not. This is making money regardless of where the market goes, and you don't even have to have a clue as to what the market is going to do next. I repeat: you do not need to know where the market is going to make money . In these pictures, every rectangle represents a cluster of small limit orders getting filled, with the anchor point (starting place) being a wick rejection. That's it! You'll notice that in almost all of those cases, the retracement from the limit block exceeds 100%, meaning 100% of the limit orders in that block are profitable. You only actually need to see the price retrace by 50% of that block to break even. This is why I laugh when people say "the trend is your friend". The counter-trend is your friend too. The market is your friend. You don't have to know where the price is going, and you can make money in either direction as long as you're placing your limit orders in a way that goes with the flow. You're trying to capitalize on liquidity 100% of the time, and liquidity is really, really common. You can literally place trades based on every single candle if you want to! If there is a wick, you can trade it. Even if you're wrong, having tiny limit orders spread out through a cluster based on that wick means your hard stop loss would be hit rarely. You should still definitely have a hard stop loss, just in case a doomsday scenario comes. So imagine you have a $2000 account. On a 1k (0.01 lot size), 10 pips is $1. Let's say you have 100 limit orders, separated by 1 pip each. 50 of your limit orders get hit, and then the price retraces by 50 pips. Given that your average entry point would be 25 pips (the halfway point), you would have made 25 pips profit on a 50k, meaning $125 profit on a very high probability trade. In those pictures, even the big moves don't hit all 100 of your limit orders, not at once. Not even 50 all at once. I'm not saying that doesn't happen obviously, but the probability of it happening is very low in relation to how frequently you'd be making profitable trades. So what you do is you either commission a script or write your own to deploy all these limits very quickly. I'm currently having one commissioned for me in MT5 which works very well. I can drag a horizontal line that serves as an anchor point, deploying x amount of limit orders with y distance between each other, z order sizes (0.01). I can even have them all share the same stop loss and take profit, or have SL/TPs a specific distance from each individual ticket. I'd show this stuff here, but TradingView doesn't like pictures coming from the outside. If you use metatrader 5 and would like my tools, feel free to message me. I'm not sure if I can edit this later, but I hope I can... I tend to rethink things a lot and hate having to finalize something. Anyway. I hope this helps.
FX:XAUUSDEducation
by WinkleTrades
10
Guide To Trading USDCADIf you are an investor interested in any currency pair during NYSE trading hours, the USDCAD should be among your priorities. Ranked among the top 5 most traded currency pairs on the platforms, the USDCAD represents a significant volume in Forex trading. Such a pair offers excellent profitability possibilities because the daily trading volume is considerably high. Learning about the technical and fundamental aspects that make this currency pair move price is a must for successful trading. Essential information related to the USDCAD. Once you acquire the knowledge, you will put it into practice and profit from it as soon as possible. Fundamental aspects Like other pairs in the FOREX market, the USDCAD is firmly anchored to international commodity prices, especially oil. Canada and the United States are among the countries with the highest oil production levels in the world. In addition, Canada’s leading oil export destination is the United States. Therefore, a rise in oil prices will hurt the US dollar and positively affect Canadian dollar. Conversely, if oil prices fall, the pair will tend to rise. Canada is also a significant exporter of materials and commodities, such as wood, grain, and minerals. Being so close to the US has strengthened the import/export industry in Canada. In addition, it helps the currency maintain a stronghold in the foreign exchange market. Changes in interest rates and policies to help increase the employment rate are other aspects to take into account. The announcements are made by the Central Bank of Canada and the Federal Reserve of the United States. Changes in interest rates and policies targeting the increase in the employment rate are other aspects to consider. These announcements are made by the Central Bank of Canada and the Federal Reserve of the United States. The essential thing in this aspect is to be attentive to the dates when they will meet because, during those days, the volatility of the USDCAD pair increases considerably. Because they are firmly related economies, data on economic growth (GDP), industrial production (PMI index), and consumer demand for goods are highly relevant. As a result, it can cause significant volatility spikes in the pair. Profiting from the wrong policy decisions of some countries is possible. One of the examples is the fall of the US stock market and real estate market in 2008. In addition, the banks’ recklessness in lending non-stop throughout the 2000s resulted in a crash. However, Canadian banks were spared because they did not follow the same policies as American banks. Different strategies can be applied based on technical analysis since it is a very liquid pair, especially during the hours of higher volume. Typically, during the opening hours of the NYSE, a more significant number of transactions takes place, thus increasing the volume in the pair. Canada and the United States have different economic structures. While Canada leans toward more liberal economic policies and strict immigration regulations, the US depends on the economic boost of educated and talented immigrants to enhance the workforce. The USD benefits from a much larger volume of trading activity, as well as the presence in virtually every primary global industry. It may seem that the US and Canada are very different. Still, their geographic proximity helps traders, making trading USDCAD easy. Performing back testing and analyzing all the aspects we have mentioned will give you a better view of the market and increase the probability of success in your trading.
Education
by Anbat
8
How to trade intraday pullbackHello friends, Market finally picked a direction and it looks like it's gonna continue downtrend. Many novice traders are long biased and they find it very difficult to trade in down-trending market. Today, I am going to share a simple strategy for making quick gains by trading pullback in a downtrend. Below is a chart of NASDAQ:AMZN in daily timeframe. You can see that price is in a downtrend. Below is 5 minutes timeframe chart of NASDAQ:AMZN . You can see that above chart fulfills all the rules mentioned below. For this trade, Risk to Reward ratio is 1:3. Checklist - 1. Price is making LL while RSI is making HL - Bullish Divergence(highlighted in the chart) 2. RSI is below 30 - Price is oversold 3. Price is showing signs of reversal - Long lower wick candle(highlighted in the chart) 4. Above three confluences occurs during the first 1.5 hours of market open before market goes into mid-day chop 5. Risk to Reward ratio is at least 1:2 (shown in the chart) Entry - 1. Enter at the next candle open after reversal confirmation Exit - 1. Set Stop-loss below the recent low 2. Set Target at the first resistance
NASDAQ:AMZNEducation
by PriceActionTrader1
1
Simple trading setup from swing range- Determine directional bias from HTF - Find high/low trading range from previous day - Drawn in fib level to see premium/discount zone for entry - Spot CHoCH in different direction of HTF (Potential to grab liquidity) - Wait and see Price action with HTF bias (In this case is bearish) - Price entered premium zone for open short position - Wait for lower time frame BOS before entry - Target imbalance zone/ Previous key level low/ Fair value gap (RR 2.65, not bad, since we get entry outside premium zone but more confirmation)
OANDA:XAUUSDEducation
by v_rapatt
'Trading Psychology: 'The 3 Levels of your Game'Hello Traders, As we know trading is one of the most challenging professions in the world and not only do you have to do your research and own due diligence on a technical aspect, you must ensure your mind/emotions are on point as it is the most common reason traders lose money in this industry. I wanted to share a bit of information from a mental and emotional standpoint about breaking down the 3 levels of your Psychology Game. . No matter how skilled one trader is, everyone has an area that could improve and everyone will make mistakes. The 3 main mistakes we as traders make are: To summarize this chart, the differences between 'B' and 'C' game is that in the 'B' game you have the impulse or thought to make a 'C' game mistake, like closing a trade too early or forcing a trade. Instead you retain the presence of mind and emotional control to avoid it. In your 'C' Game, your emotions are too strong and you cannot stop yourself from forcing trades or cutting profits short. While in the 'A' game, the impulse or thought doesn't happen, or its too small you barely notice. Your goal to as a trader is to eliminate and correct your performance errors that cause your 'C' game. You cannot by escape how much of the gravitational force 'C' game has by focusing on improving just your trading skills and knowledge. You will continue to make the same errors (possibly different ones, but errors are errors) which will create a level of excess negative emotion in your mind. Creating and plan of emotions to examine & review on a daily basis will help you correct your failures and fill you with a different type of emotions, happy ones. By writing down your thoughts of what is going on before, after and during, you start breaking down the backend of your trading and your decision-making becomes much easier and more confident. Creating a plan of your emotions could come with a variety of things, some of the most common ones to watch out for are: -Trigger (eg. Swing trading forex) -Thoughts (eg. I can't believe I got stopped out, it has to go up!) -Emotions (eg. I want revenge on any trade that I lost which I know I should have won!) -Behaviors (eg. Overly focused on one position) -Actions (eg. Constantly looking at P/L) -Changes to your decision-making (eg. I need to get my money back, I need to trade more) -Changes to your perception of the market opportunities or running positions (eg. Your going off prediction rather then reaction) -Trading Mistakes (eg. I'm taking the same trade over and over, until its clear I'm getting no where) Journaling down these emotions and also reviewing them on a day to day, trade to trade, basis, will help your trading game improve and make you become much more successful. I hope this has given a brief insight on how trading psychology plays a huge role in our careers, please leave a comment and share what level of game you are! If you felt this has shared some good information, please hit the like button and follow me for more of these! Thanks Trade Safe!
COINBASE:BTCUSDEducation
by ktlfx
1
A tweak to my trading plan. Weird, but stats don't lie.My trading has been evolving at a rapid pace recently. In the last 2 years I made a transition from being a swing-trader to day-trading. Some things, the backbone, of swing-trading carried over to day, but with a lot of extra thing that I didn't utilize prior. I went from taking 5-10 trades a month, to taking 20 trades a week. Results didn't go up linearly, but they did go up nevertheless. The reason for switching to day-trading was due to deeper understanding of my own personal character as well as my flaws. I wasn't that patient to hold a trade for 2-3 days, and if a trade is missed for any reason it would hurt me like hell because I had to wait another 2-3 days for price to develop another one. And what's worse is that when the missed one ended up making profits, and the next one was a statistical loss. That hurt me deep. The switch to day-trading happened primarily because of that, missing a trade here doesn't hurt the same way because there are way more of them constantly developing. On top of that holding period went from 2-3 days on average to 30-60 minutes. I can be in and out quicker, and be less prone to making suboptimal decision after price has been stalling for 2 days in before breakout. In short, day-trading suited me better. In day-trading style I was targeting 2-3:1 RR. Playing with different targets, I came to realize that -0.27 on Fib Retracement was a good target as it offered a perfect blend of RR as well as capturing that quick swing. But, I also didn't like when price almost came to target and turned around to loss, so I came up with a 80% rule. If price climbs up to 80% of the way to the target and fails to keep going - I manually close for 80% of the move's profits. This was pretty good overall. However, after doing review for the last 100 trades I noticed a weird pattern. With my approach price often goes to 1:1. In 100% of times when price went to reach 1:1 it did the following: * 30% price went to full target. * 30% price either turned around SnD level, or reached 80% and turned around. * 40% price touches 1:1 and turns around into a moved stop, original stop, or manual exit for around 0. When I combined the average results of all these trades (and that's a pretty huge sample size) - I realized a new angle to my trading. What happened is that there is almost no difference in the long-term results if I were to simply target 1:1 fully and be done with a trade. This would give me way less time being in a trade, less teetering with it, even quicker in and outs, slightly better long-term profits. It's weird, but it seems that my personality and my trading is more suited toward HSR trading and not HRR trading. HSR = High Strike Rate. HRR = High Reward Risk Ratio. But my average risk is also going to be much smaller, because my early exits are quite on point overall. In the last 100 trades my early exit accuracy is around 80%. It's weirdly huge. So, there's that. Constant improvement, constant tweaking. For now I will be trading and targeting 1:1s only + early exits.
Education
by Lightwork_
2
How to play with imbalance barShares experience to play imbalance of order in M15/M5 timeframe with an obvious Order block that facilitate for open sell position real quick. - Marked imbalance area occur from 2 huge bearish bar. - Price pullback to fill that gap. - Draw in trend line from M5 timeframe and see if price breakout. - Spot price retrace to premium zone of fib level facilitate to open Short. - Open short with stop loss above marked out zone. - Target at order block level with 3.3R
Education
by v_rapatt
2
Easiest Way to Manage TradesTrade Managements is one of the pillars of successful trading. We can enter good trades (which is difficult in itself), but still not be profitable because our trade management skills/techniques are simply not there. In this post I want to talk about the easiest way to manage trades. (Before we start we must mention that an actual EASIEST way is hugely dependent upon each trader's unique personality and circumstances. What works for one may not work for another and vice versa. There is no precisely one answer). With that being said, there is a way that is much less popular and flashy, but that helps to trades so much. That is: SCALE OUTS. Scale outs can be extremely frustrating and cause a lot of FOMOs and FOFR (fears of future regrets). Let's talk about cons with examples: Let's say you enter a trade that has 3:1 reward risk ratio. You decide to take 1/2 off a trade off at 1:1 area, and then price continues to go to your target. In this example you just made: (0.5 * 1) + (0.5*3) = +2. So, instead of making full +3 points, you think, you make 'only' +2. This can be frustrating. So next time you decide to not do scale outs, but watch what would happen: Price goes to your 1:1 target, and then turns around and you get tapped for a full -1 loss. Had you scale out You'd make: (+0.5 * 1) + (-0.5 * 1) = 0. Effectively you hit a breakeven trade. If your strike rate is at 50%, then the results profits wise are exactly the same: (+3 -1) = +2 and (+2 + 0) = +2. However, the scale out route flattens your emotional volatility all the way down and instead of being elated for banking +3 -> you bank slightly less at +2. On the other hand, instead of losing -1 you hit Breakeven for 0. Your emotional curve and psychological capital are thus preserved and it's much much EASIER to make better decisions throughout the trading session, week, and month. Scale outs aren't glamorous because they don't spark that "BIG TRADE" dopamine. But what it does is helps you to stay in the game and actually PAY YOURSELF quick whenever your analysis proves to be profitable. Instead of waiting for full +3, you actively taking profits and paying yourself, while the long-run results are relatively similar. Even if longer-term results would be smaller - the price is worth to be paid for that emotional flattening. But it won't be that much of a difference anyway simply due to statistical distribution. Price often does go 1:1, but much less so in does go to 3:1. Banking these frequent 1:1s both reduces risk AND gives profits. Scaleouts work GREAT if you are one of those traders who can benefit from them. There is another group of people, who perform much better with SCALEINs. But that is a story for another day. Lightwork_
Education
by Lightwork_
5 BIG MISTAKES TRADERS MAKE!Hey traders, I've had the privilege to have been involved in trading, both retail trading and working within a prop firm for many years. The biggest benefit I get, is to work with so many different traders with so many different strategies, personalities, timeframes, assets, you name it. I've probably worked with a trader that trades it. Now, there's a few things that are extremely common in all traders, regardless of what or how they are trading. It's the same mistakes that keep making traders fail. So today, I'm going to explain what five of these mistakes are and how to avoid them. I will also discuss how to incorporate them to ensure that you don't get hit by the stone wall that many traders do. If you have any extra information to add, please do so in the comments. I look forward to hearing from you all. TRADING WITHOUT A PLAN This right here is the biggest one and this is usually for the early beginners or even strategy jumpers. You must have a plan. That is non negotiable if you ever want to see some kind of consistency in training. I can tell you from experience, both personally and with working with traders from firms, that the more in depth that plan is, the better chance of success. The same way you create a business plan before launching a new endeavor. The same way you create a game plan for your team before you go out and verse the opponent. The same way politicians plan out their PR campaigns before running for office. You must have a thorough trading plan. A plan can consist of a multitude of different things, from understanding what you're willing to lose, understanding overall position size, understanding your trading strategy, minimizing drawdowns, maximizing profits, the assets you are trading, the times you're going to be trading, how much time you actually going to be allocating to trading and setting up goals. A trading plan must be thorough, so you can not only track your progress, but when you start getting unmotivated or confused, you have something to look back on to realign you with where you are and where you want to be. My final advice with your trading plan is stick to it. You will have bad trading days. You will have bad trading weeks. You will have bad trading months. Stick to your plan. OVERTRADING We've all been there. It's the start of a trading session. We've opened two positions. They've both gone on to be fantastic winners. You're unstoppable. Nothing can possibly go wrong from this point. You have mastered the markets. You are the best trader the world has ever seen. So what do you do? You open another seven positions because it's just free money on the table. And what happens? All seven of those positions lose, wiping off your original profit and some. This is so common in beginner traders. It's that aspect of unpredictability that they forget about in the markets. Trading too much too soon is a serious issue and it needs to be worked on as soon as possible. I understand the excitement of being live in the markets, the excitement of the profits you could earn day today, but the reality of the situation is if your brand new. Trading too much is going to be a serious issue. What sitting back watching and not trading does is not only increases your patience, but also allows you to analyze the markets in a clearer state of mind, making your future decisions a whole level ahead. Add that into the plan, give yourself a maximum number of positions per day if you are new. Trust me, it's going to help you progress. FAILING TO CUT LOSSES I've spoken about this a lot, especially in one of my recent webinars. A lot of traders are taught the whole set an forget method, and I'm not a big fan of it, but in some circumstances I won't lie. Yes, it does work. But a lot of the time, these trade ideas that they're in there actually give massive warning signals prior to hitting the stop loss that they are going to do that. The trader could have cut those losses a lot shorter. Now don't even get me started on traders that don't use a stop loss. What I wanted to do really in this segment is dive into the emotional side of failing to cut a loss. It's true. I remember experiencing it early on my trading career, that feeling of when a trades going against you, but you did all the analysis, so it shouldn't be going against you. So what do you do? You hold on with hope and temptation that it will turn for the better. The reality of the situation is in very, very rarely does. It's a horrible feeling because some traders are prone to even giving those trades more room, adding to the position, moving there stop loss, removing their stop loss altogether. Everything you shouldn't be doing in the time that your analysis is going against you, most traders lean towards because they done all the research they needed to do and they cannot comprehend bring wrong. The best way to battle this feeling, if you've ever felt it or still to this day feel that urge, is going back to number one. Trading with a plan. Have a plan. Risk management plans are the greatest things ever. We can plan for the absolute worst so when it does come in and everyone's going manic everywhere, we know exactly what to do, where to be and how to position ourselves. This will help you learn to cut those losses. NOT UNDERSTANDING LEVERAGE The world changed times are changing. You can access any type of information or access pretty much any type of market you want at the click of a button by the glorious internet. Same goes with trading is probably how most of you have gotten here, or even just into trading as a whole. The thing is, we reach out to these brokers and we open accounts with small amounts of money and they offer us great deals like 300 hundred or even 500 to 1 leverage. That means with $1000 account, you can open $500,000 of currency. Now, the reality of the situation is most traders will never use all of that leverage. But as a result is that most trade is also wouldn't have experienced a no money call when opening a position, or perhaps a margin call, or a true understanding of when they put in 0.5 lots of EURUSD, what they are actually doing. Leverage is a great tool. Fantastic tool. When used correctly. Working at the firm, had so many traders reach out. They keep getting an error code. They say, "I can't open this position!? WHY!?!" and it's all because they don't have the margin requirements to actually open that position and it is alarming to see how many traders don't fully understand what leverages and margin is considering they have used it for years. When you open a position of 0.5 lots on a U.S. dollar currency pair, for example, UUSDJPY. You are opening a position size of $50,000. You have just entered a $50,000 position. That means you are actively managing $50,000 while you are in that position. Let that sink in. Now that's just a position of 0.5 lots. There is traders pit there trading 10-100 lots and it is just baffling to understand the amount of risk there actually taking in accordance to their account size. Do your research. Understand your position size and when you're doing your trading journal. Instead of doing lot sizes in your trading journal, I recommend you do actual position size, value. That will give you a much better understanding on the risk you undertake when you take positions and also if you can, lower your leverage. You don't need 500:1. BEING ABLE TO ACCEPT LOSSES Now this is a fun one and this is what I really wanted to chat about. Being able to accept losses can be one of the most damaging things a beginner trader can ever have, because what happens is they lose the value and respect that the market can take their money. Every market "guru" and every trading course out there tells you to remove emotion from the equation, accept that losses are gonna be a thing, and trade knowing that. Now most people go, "OK, let's do that." and surprisingly, they actually managed to pull it off. Which actually creates a bigger problem. They become reckless. They no longer care if there's a little bit of parameters different from their trading plan. They no longer care if there's key indicators that the trade idea is wrong because, "we're going to have losses. So what? This one might as well be one. If you're not in the market, you're not going to make money." they become reckless. Do not remove emotion from your trading. Incorporate emotion into your trading and once again this results back to the first tip. Trade. With. A. Plan. Traders, that is all for me today. These are five things that I've noticed in struggling traders which seemed to be a common recurrence. Thank you for your time. I hope you enjoy the read. As always, have a fantastic trading week. -Jordon Mellor
Education
by the5erstrading
14
A quick and dirty trading method I useSo lately I've been using an Envelope indicator, and nothing else. I have it set to a 3-period smoothed MA on MT5, which is basically the same thing as 6 exponential on TradingView. From there, for every pair, I fine-tune the envelope's deviation range to create a very specific situation. 1) You want consolidation candles to generally close inside of the envelope. Most candles should close inside the envelope, or at least have presence on the inside. Sometimes trends are stupidly strong, though. 2) You want momentum candles to close outside of the envelope. So how do you trade it? Simple. 1) When a momentum candle closes outside the envelope, you look to enter a position on the inside of it. 2) You place a hard stop loss, which could be a 1:1 if you think in ratios, or a specific amount of money that you're willing to lose. The stop should be reasonably wide, like pretty distant from the opposite side of the envelope, because wicks happen all the time. 3) You close with a loss *only* if the price either hits your hard stop (unlikely), or if a candle closes on the wrong side of the envelope. This is important! 4) You take profit either when you're happy (typically 1:1 or greater), or with a trailing stop loss. The purpose of this trading system is to trade the *exact* trend you're on currently, rather than going for some kind of fibonacci pullback or whatever. On top of that, your losses are well controlled since your entries usually won't be far from your exit if you're wrong. Example:
Education
by WinkleTrades
2
HOW-TO: Build your strategy with Protervus Trading ToolkitHi Traders! This tutorial will show you how to build your own strategy and link it to Protervus Trading Toolking (PTT) . First of all, let me remind everyone that this content should be considered educational material, and backtesting results are not a guarantee. My goal is not to provide ready-made strategies, signals, or infallible methods, but rather indicators and tools to help you focus on your own research and build a reliable trading plan based on discipline. So, without further ado let's start building our first strategy! For this tutorial we'll build a simple EMA Cross strategy and add the Chaining Snippet to link it to PTT. The first step is to create a new indicator in Pine Editor and add the initial requirements: //@version=5 indicator("EMA Cross (data chaining)", overlay = true) Let's now create the inputs where we will be editing EMAs' length: FastEmaLen = input.int(50, title = "Fast EMA Length") SlowEmaLen = input.int(200, title = "Fast EMA Length") At this point we can proceed by calculating the two EMAs: FastEma = ta.ema(close, FastEmaLen) SlowEma = ta.ema(close, SlowEmaLen) We are now ready to script our Entry conditions: BullishCross = ta.crossover(FastEma, SlowEma) BearishCross = ta.crossunder(FastEma, SlowEma) We also wish to see the two EMAs plotted on the chart, so we will add the following code: plot(FastEma, color = color.new(color.green, 0)) plot(SlowEma, color = color.new(color.red, 0)) At this point, our code should look like this: Great, we are now ready to add PTT Snippet by pasting all the code at the end of the one we just wrote. Let's head to the CONDITIONS INPUTS section and replace the placeholder text for EntryCondition_1 , giving it a proper name: EntryCondition_1 = input.bool(true, 'Ema Cross', group = 'Entry Conditions') We can also add null to the unused inputs to clear the settings panel: ADDING ENTRY CONDITIONS We'll now be adding our Long and Short Entry conditions in the ENTRY \ FILTER CONDITIONS section. In LongEntryCondition_1 we should replace null with BullishCross : LongEntryCondition_1 = BullishCross Same for ShortEntryCondition_1 down below: ShortEntryCondition_1 = BearishCross Guess what? We're done! We just added our Entry conditions: We can now compile the script and add our indicator to the chart, along with PTT. Let's open PTT and select "EMA Cross (data chaining): Chained Data" in the Source Selection drop-down menu - the data will now be forwarded to PTT and we can start tweaking the settings to experiment with our new strategy: ADDING EXIT CONDITIONS Let's say we now also want to add an Exit condition for when the price goes above (or below) the fast EMA, signaling a trend reversal: we can do that in no time! Go back at the top of the code, and right after our EMA calculations, add: PriceAboveFastEma = ta.crossover(close, FastEma) PriceBelowFastEma = ta.crossunder(close, FastEma) Of course, we also need to add the newly created conditions in the snippet code. Let's find the section EXIT CONDITIONS and, just like our Entry conditions, we can replace the null placeholder with our actual conditions: LongExitCondition_1 = PriceBelowFastEma ... ShortExitCondition_1 = PriceAboveFastEma If we also want to use these conditions as Stops, we can add them to the STOP CONDITIONS section: Note: Exit Conditions will close the trade in profit, while Stop Conditions will close the trade in loss. Still, you should not worry about scripting it yourself: PTT will take care of analyzing the trade and separate Exits from Stops when the signal to close the position is received. ADDING FILTER CONDITIONS Besides using our indicator to open and close trades, we can also use it to filter the signal from another, chained indicator. To keep this tutorial simple, let's use the same EMA Cross script, so we can add it again to the chart and use the first one as Signal, and the second as Filter. Let's add our Filter conditions in the script: FastAboveSlow = FastEma > SlowEma SlowAboveFast = FastEma < SlowEma Just like we did in the previous steps, we should now add the option in the settings panel and the Filter conditions in the snippet code: CHAINING INDICATORS We currently have one EMA Cross indicator working as Signal in the chain, linked to PTT on the chart: Let's copy-and-paste the EMA Cross indicator (or add it again) to have two of them. The first one on the chain will act as Filter, so in the settings let's give the two EMAs a longer length (e.g. 250 and 300) in order to verify the trend and discard signals received when it's not favorable. Remember to set output mode as Filter, and tick the Filter box. The second one will be our Signal: we can choose the length of the two EMAs we will use as Entry \ Exit when a cross happens (e.g. 100 and 200), enabling our Entry and Exit conditions by ticking the boxes. This time, we will tick the "Receive Data" box, and select the Chained source of the Filter: If before linking the Filter you already had the Signal linked to PTT, you will notice it automatically recalculates the data - and if our Filter works as intended, the improvements will be visible ;) EXTRAS If your indicator doesn't plot anything on the chart, we must enable a "Dummy Plot" in order to prevent issues, since we are sending chained data as an invisible plot and it cannot be the only plot in the code. Just un-comment the line plot(close < 0 ? close : na, title='Dummy Plot') to avoid this problem: ADDING SIGNALS MARKERS PTT will show all labels and markers for trades, but if you wish to have them on the indicator or just to debug your signals, you can enable and customize the last lines in the snippet: CHAINING SCHEMA |-- Filters (optional, any number of filters - linked one to another) |---- Signal (mandatory, only one indicator must be set to Signal - in case of multiple Filters, Signal must be linked to the last Filter in the chain) |------ Protervus Trading Toolkit (linked to Signal) |-------- PTT Plugins (Strategy Wrapper, Trade Progression, etc - linked to PTT) NOTES - When you chain an indicator, its source remains "locked" even if you un-tick the Receive Data box. If you wish to use that source on another indicator you should un-link it first (just select "Close" as source to free the indicator's chain output). - If you remove indicators in the chain, all other indicators linked AFTER it will be deleted - to prevent this, you should un-link chained indicators before removing them. - Pine Script is limited to one source input per indicator, so you cannot chain indicators that let you choose another source to calculate data: for example, if you have an RSI indicator with a source selection ( input.source ) you must remove that input and only use the one for chaining. You can read more on PineScript Reference page.
FTX:BTCUSDEducation
by Protervus
2
What is Spread in Trading | Trading Basics 📚 Hey traders, It turned out that many newbie traders completely neglect spreads in their trading. In this post, we will discuss what is the market spread and how it can occasionally spoil a seemingly good trade. 💱No matter what financial instrument we trade, in order to buy the asset we need to have a counterpart that is willing to sell it to us and vice versa, if we want to sell the asset, we need to have someone to sell it to. The market provides a convenient exchange between buyers and sellers. The asset price is determined by a current supply and demand. However, even the most liquid markets have two prices: bid and ask. 🙋‍♂️Ask price represents the lowest price the market participants are willing to sell the asset to you, while 🙇‍♂️bid price shows the highest price the market participants are willing to buy the asset from you. Bid and ask price are almost never equal. The difference between them is called the spread. 📈The spread size depends on liquidity of the market. 📍Higher liquidity implies bigger trading volumes and greater number of market participants, making it easier for them to make an exchange. On such markets we see lower spreads. 📍From the other side, less liquid markets are categorized with low trading volumes, making it harder for the market participants to find a counterpart for the exchange. On such market, spreads are usually high. For example, current EURUSD price is 1.0249 / 1.0269. Bid price is 1.0249 - you open short position on that price. Ask price is 1.0269 - you open long position on that price. The spread is 2 pips. ❗️Spreads must always be considered in a calculation of a risk to reward ratio for the trade. For scalpers and day traders, higher than usual spread may spoil a seemingly good trade. Always check spreads before you open the trade. In 2020, for example, we saw unusually high spreads on Gold during UK/NY trading sessions. Spreads were so high that I did not manage to open a trade for a couple of days. Not considering spreads in such a situation would cost you a lot of money. Do you consider spread when you trade?🤓 ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
3