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Day Trading
I normally don’t share market insights and system strategies. The few times I have shared my ideas, they ended up on eBay, or being peddled in various forums. However, a few things have prompted me to share once again. One reason is that I have almost completely switched to automated trading. It’s getting to the point where I find myself with a lot of time on my hands – in short; I’m trying to stay active in the market. Secondly, I look at guys like ND, Igorad, Simba, etc. and I’m simply blown away by their endless flow of selflessness. It inspires me to get off my ass and give back.
I’m hoping this thread will shed a little light for some of you guys… if not, at least I’m staying busy. My gut instincts tell me that the trader who will get the most mileage out of this has a minimum of 1 to 2 years experience. If you just found out about the currency markets by accidentally clicking on a Google ad 3 days ago –this is definitely not the right thread for you to be reading.
Please respect this thread by observing the following rules:
1. Never ask how to perform MT4 functions. TSD has an extensive section on that… not to mention the “help” feature in the software. If it boils down to a case of laziness, then you might as well move along… this strategy (along with all others) will not make you a dime.
2. Never ask me to provide back tests, forward tests, or account statements. This is insulting to the person sharing their time and knowledge. I cringe whenever I see a new thread starter getting bombarded with “system effectiveness” requests. No one owes you an explanation, their time, or their ideas. Test it out for yourself – worst case scenario; you might actually learn something.
3. If anyone mentions the phrase “we need an indicator to filter out the bad trades”, or, “can someone make an EA for this”, my hands will magically appear out from your computer monitor and put you into a “virtual” choke-hold.
Otherwise, do what comes naturally.
INDICATORS:
I know this a big concern to many of you. Does this system rely on indicators? The answer is YES. It relies on 2 very important indicators.
1. The indication that you have half a brain.
2. The indication that you have some sense of discipline.
TIMEFRAME:
Whichever you like. However, for our purposes here, we are dealing with an intraday scalping strategy. The important thing to remember is that we will be developing a comprehension (or personal beliefs) about market dynamics. These dynamics apply to all markets - in all time frames.
CHART SET-UP:
You will need 2 charts for this strategy. A 1 min and 15 min chart (both minimized entirely). An image example of what your screen should look like is attached below.
TIME TO TRADE:
This should be an easy one. Since it’s a day trading strategy, it is most effective during active market hours. If you don’t know at what time the markets are active, you should stop reading this thread.
PAIRS:
Will work for any currency pair, futures contract, equity, or any other financial instrument that is traded on an open exchange. Remember…market dynamics. BUT… we will be using EUR/USD. Just because.
A FEW TOOLS:
You’ll need these – (attached below)
I recommend setting up hot keys for the scripts (1-Click Buy & Sell). Igorad’s Multi-Position EA can be affixed to the M15 chart. I already have the money management parameters coded into both scripts and the EA.
Unfortunately, this is not the type of system you might be accustomed to. You know the one where I tell you to buy when the 25 and 50 MA’s cross, with a hard stop of 30 pips and a TP of 45. There are plenty of those on this forum already. What we’ll be trying to accomplish here is developing a deeper understanding of what the market is doing, and how to profit from it. Now if you’ll excuse me, I’m going to take a bit of a break… and will post more in a bit.
To be continued….
Last edited by Mr.Marketz : 05-07-2008 at 08:07 AM.
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