Personal Notes on Forex Trading from 2008 to 2009


Trading

Updated Jun 21st, 2021

Spend some time getting better: watch videos, learn how to use platform better (close all open orders, backtest, etc.), create a reference sheet of rules, analyze past trades, etc.


SWAP time is 5:00pm EST!
know upcoming news and economic events, know major support/resistance levels, watch bollinger bands. It’s allm about feel- ride the charts. Stay objective; don’t trade on emotions

I need to avoid huge blowups when scalping. Cut losses in the hundreds if need be and regroup before it gets out of hand to the point of no return. Triple check stop losses and TPs to make sure the decimal is in the right place. ALSO, use TPs just as much as Stop Losses. I set a stop loss on a major losing position before going to bed and when i awoke i realized if i would set a tp i would made money but missed a brief pullback only to get stopped out seconds later. DISCiPLINE
Be aware of major economic news events. The fed announced a target range for interest rates of 0-.25% today and the spreads became very wide, 20 pips or so. Don’t underestimate the volatility surrounding these events (the yen moved $1.20 and the Euro moved 2.72%!)


Don’t forget to look at larger time frames. Do NOT FIGHT THE TREND, FIND LOW RISK ENTRIES, and BE AWARE OF KEY RESISTANCE LEVELS

I heard some more horror stories (reviews) about interbank fx. I guess the best thing to do is go live and play small to get a feel with a few different brokers and just live and learn.


be careful and change your thinking when prices are moving really fast. How do you know when things are getting fast? Look at the pip interval on y-axis. Normal interval on the Eur/$ in 3rd zoom is 5 pips and so when it jumps to 20 pips, be cautious and get small.
Stay focused…don’t lose your head after a few days of success. Keep cool, and don’t make stupid mistakes. Some days are harder than others….


Revisitng timothy morge’s video on moneyshow.com i would like to take a closer look at his median lines…
Bollinger bands are a good tool but they are by no means right 100% of the time. What can I do to increase my winning percentages using this indicator? Find choppy sideways markets, use stop losses to avoid run away losses that will blow up the account, look for signals across multiple timeframes, be aware of major economic news releases, know support resistance levels, bring in other indicators etc., wait for feel of the price…etc.


While I am using MQL4 as a trading platform I would like to experiment with the creating an expert advisors. Forex example: write a program to “alert me when price moves outside of the bollinger bands on both the 1 minute and 5 minute time frames.


Use the fast navigation line feature to go to jump to a past chart. (Ex. 2009.02.16 12:00)


Cntl+F for crosshair in interbank. Can be used to show distance, difference, and current price
F12 to scroll through the chart bar by bar

F9 brings up the order window.
You can drag transactions from the history onto the chart to see them visually: this is awesome

Look for CHANGE IN BEHAVIOR! Only buy against upsloping lines and sell against downsloping lines; the trend is your friend. Trade patterns that you see repeatedly so that you can do the statoistics on them and know the probability.
Median lines are leading indicators and help project the probably path of price. Don’t do anything with them unitl you’re 4/5 bars in. Must have a test, close with seperation, then a retest. When price does not meet a median line it will likely go in the other direction.


Don’t underestimate the imprtance of Market Structure and change of character.


The big dogs (hedge funds and other instituitions trade the H4 because you’ve got the morning session and the afternoon session.


At some point enough is enough and you must stop out. DON’T FREEZE! This is a character flaw and you are useless if this happens to you.


at least in summertime hours 5:00pm is the swap and 8:00pm is the New Day in GMT (7:00pm in winter). Sunday trading begins at 6:00pm but we wait until it’s Monday on GMT

I think the strategy is sound you just need to bring in absolute stops. I think the absolute stop should’ve been at the 20 pip a day mark for 2009.


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