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Re: This is the holy grail!!!
>only trade one pair?
Yes, just one - EURUSD.
>use no indicators?
Just one simple indicator. Trade in direction of indicator when strong directional action is seen. Take no more than 3 trades in indicated direction, close any other profitable trades that were opened during sideways trading. Take new longs on 5 to 10 pip pullbacks when the trend is in force, but do not exceed three trades in that direction. Close winning trades opportunistically - watch for 10 pips in the good during trends, use no stop nor take-profit orders. If all profitable trades are closed in strong direction, open one new one. Don't open another unless pullback is seen with trend still in force.
>use many indicators?
See above.
>only trade on pure price action?
When the indicator shows "neutral", yes trade on pure price action -- short on rises, long on dips. This is done per predetermined price action intervals, using last-trade-level anchors as reference points. Close winning trades opportunistically - watch for 4 pips in the good during sideways action, use no stop nor take-profit orders.
>look for chart patterns?
No, that's a waste.
>have a favorite time frame?
H1 is fine, need no others.
>Also, who or what has been your greatest mentor or influence?
LOGIC and ACCOUNTING are my greatest influences. You have to keep track of how much in profits you've booked in relation to the biggest losing trade, and close that biggest loser when your recently closed winners have exceed it by a certain amount (I like one-third of one percent of the account).
This method is hard to trade manually; software is far superior. The logic is simple, but the nuances are devilish to those who aren't accustomed to thinking logically. Most software weenies are busy chasing "artificial intelligence" and "genetic algorithms"...poor saps...simple but clever tactics are much better.
You will not get rich quick with this type of trading, but steady equity gains are possible, and slowly increasing lots in proportion to gains has tremendous power. I like to trade with brokers who provide very small lot size granularity, like nanolot (penny-per-pip) on mini accounts and microlot (10-pennies-per-pip) on standard accounts, and who also allow hedging. No hedging, no trading this way.
Stay away from F_X_C_M.
Last edited by LogicRules : 04-06-2007 at 18:00.
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