Trade Like a Dealer: (And Avoid Death by a Thousand Stops)

[rockinride]

Doesn't the inevitable losing streak eat up all the profits? If not your entire account? I guess I can see how financial institutions can trade posistions like this, but the retail trader simply would not have the bankroll to sustain himself against what can be massive losses at those stop levels. 2 or three consectutive losses your out if you are the normal trader.
I am starting to think some of you are exclusively demo traders.

P.S. I am assuming you all have 100 thousand dollars in your account.
1000 Pips at ten bucks a pip is still 10 grand anyway you look at it.
500 Pip Stop losses, Come on, I don't think we are in Kansas anymore.

[SimSpeed]

Has anyone here ever seen a 400-700 pip run with no 25, 30, 50 pip retraces? Not likely. Can you absorb a similar dd and make a profit, such that you don't have to throw your cash away on a 500 pip S/L? With a well tested trading plan and controlled money management I believe it's possible with half the equity discussed earlier.

That's the approach several people including myself are testing Here . I will definitely have some trades that carry beyond 500 pips but that doesn't mean I'm not making money and growing my account and margin on the way down. You don't carry everything to -500 (just and example), you continually scale in and scale out as price fluctuates even in a strong trend. The occasional good run can clear almost if not all you load and start you fresh again 4 -5-7 hundred pips down the road.

[fxwiz]

Originally Posted by rockinride

Doesn't the inevitable losing streak eat up all the profits? If not your entire account? I guess I can see how financial institutions can trade posistions like this, but the retail trader simply would not have the bankroll to sustain himself against what can be massive losses at those stop levels. 2 or three consectutive losses your out if you are the normal trader.
I am starting to think some of you are exclusively demo traders.

P.S. I am assuming you all have 100 thousand dollars in your account.
1000 Pips at ten bucks a pip is still 10 grand anyway you look at it.
500 Pip Stop losses, Come on, I don't think we are in Kansas anymore.

Rock you assume way too much, Why would you trade for $10 pips UNLESS you had a min of 100K? You can trade for 1c pips if you had 1K account. The level of risk is contingent on the capital available. OF course you run into large losses , just like insurance companies - yet they have some of the most profitable business models around. Why do you think Buffet is so rich?

As I said this is obviously not a method for everyone and may certainly not be for you, but I can assure you I trade real money - so please don't accuse anyone of being demo traders when you have abosolutly no clue of what the facts are.

If you have valid critism post it otherwise save your sophmoric sarcasm you only show you ignorance and amatuerishness as a novice by making assine accusations,

[Toccata]

Meaage for JASPERFOREX - I agree with everything you say and in fact use this methodoligy with my trading at the moment. I haven't been caught out yet with a move in the wrong direction that I can't sustain but one day, it will happen and I will lose a big one.

Enough wittering - what I want to ask you is how you are determining the end of a trend? Do you trade any shorter time periods than daily? This is the key to scaling in working in my view.

Thanks

[jasperforex]

Originally Posted by Makedon

Hi jasperforex, how do you determine the sell level? Monday's USDCHF was a nice buy at about 11:00 but it opened low and closed high for the 24 day.

Sounds to me like you sold it when the momentum was over and waited for the next day, which was a low range BTW.

To be honest I don't know much about the determination and why the levels are what they are except this. Its sold to the punter as a no loss system and the term used was that forced fit was used to ensure only profits were made over ten years of back testing. Theres some other stuff mentioned about some leway added to account for data error slippage stuff like that too, so its pretty solid. And in real life trade for nearly a year its never lost me. Max pip loss on this one has been about 200 points no more before it came back. And thats rare, normally its well within a 100 points especially if you dont do aussie.

[jasperforex]

Originally Posted by Toccata

Meaage for JASPERFOREX - I agree with everything you say and in fact use this methodoligy with my trading at the moment. I haven't been caught out yet with a move in the wrong direction that I can't sustain but one day, it will happen and I will lose a big one.

Enough wittering - what I want to ask you is how you are determining the end of a trend? Do you trade any shorter time periods than daily? This is the key to scaling in working in my view.

Thanks

I asked about shorter than daily and got given an answer that you should absolutely not use the system for short term bars as it will blow up eventually. Only works for daily.

[Toccata]

Jasperforex - how do you know when the trend is dying?

[jasperforex]

Originally Posted by Toccata

Jasperforex - how do you know when the trend is dying?

Well you never really know I guess but the system waits and waits before it gives you a signal. Basically its like a point of no return, where once it gets there then you know its safe to go in. But who cares as long as it works