Technical Templates

[whipcrack]

Yes, that’s where I’d figured you’d be looking on that Euro pullback whipcrack.
Like you say, even if it doesn’t pan out, your risk offers fantastic potential value, as evidenced by yesterdays trade.

You got it!
It's all about the "value". If you can constantly get the right side of value you're putting yourself in the driving seat.

Ok, so price is now nudging this mornings resistance level up here at 1.3950 & I've pulled my stop up from 1.3915 to rest underneath the days open at 1.3925, 5 pips below my entry, thus reducing my exposure on this trade.

I'm happy with my entry & overall positioning, & if it breaks out above this stubborn resistance level, then all well & good - if it loses steam & drops back below my entry, then I don't really want to be aboard.

I consider the entry to be fair value, so I'm really expecting continued upside from here. I'm happy to scratch the trade & keep my powder dry for better opportunities if it fails up here.

[jack mason]

It's all about the "value". If you can constantly get the right side of value you're putting yourself in the driving seat.
I consider the entry to be fair value, so I'm really expecting continued upside from here. I'm happy to scratch the trade & keep my powder dry for better opportunities if it fails up here.

That makes perfect sense. I guess the very nature of these types of entries dictates that unless prices begin moving away from your entry more or less straight off the bat, you don’t want to be positioned?

You guys have shown plenty of examples where the justification for remaining positioned has borne fruit when price has ripped through the chart, as well as reducing the risk & flattening out when prices are content to simply flop around aimlessly.

Do you (& the others here trading this strategy) maintain a strict percentage of your account as your designated risk amount whipcrack?
So for instance, do you say trade 1.5 or 2% of your account regardless of the set-up or trigger level?

I can see how the account, & subsequent bet sizes, would increase exponentially as a result of controlling risk & allowing your positions a free rein to accumulate profits via this type of trailing stop usage.

It’s a pretty smart trade management combination, which is one of the main reasons I’ve continued to follow this thread with heightened interest!

There aren’t many threads out there on the various trading boards that operate this type of strategy as successfully as you guys do. In fact, most of what I’ve seen out there attempting this very style of trading, have come unstuck very quickly indeed.

But then, there aren’t many posters out there as savvy or switched on as Navajo Joe either. I guess if you know what you’re doing & you can transfer that knowledge & expertise across to those willing to get stuck in, it’s more than possible to replicate that success.

[shona123]

Do you (& the others here trading this strategy) maintain a strict percentage of your account as your designated risk amount whipcrack?
So for instance, do you say trade 1.5 or 2% of your account regardless of the set-up or trigger level?

Hi Jack

I do.

I currently commit 2% of my account balance & the bet size is dependant upon my stop loss. So if one trade entry calls for a 40 pip technical stop, my bet size will be slightly smaller than if my trade calls for a 20 pip stop.

My short term goal is to reduce the % at risk as my account increases.
I’m intending to get it down so that I’m placing up to a max of 1% of my account at risk, allowing me to also trade at least 2 standard contracts (obviously dependant on stop level).

[goldtop]

Do you (& the others here trading this strategy) maintain a strict percentage of your account as your designated risk amount whipcrack?

Howdy Jack,
I've gone the other way
Last year I was staking between 1 to 1.75% of my account at risk per individual trade execution. However, since adopting this specific style of trading, I've increased to 2% & very occasionally 2.25% per trade as dictated by the strength of the individual set up & potential.

I keep very detailed records of my trades, including profit/loss...longest winner v/s longest loser, average win/loss amounts etc etc, & the stats back up the decision to ramp up my individual trade risk percentages. But it's a very personal thing & based around experience, psychological tolerance, attitude to (generic) risk & your capital availability to name but a few considerations.

I consider the entry to be fair value, so I'm really expecting continued upside from here. I'm happy to scratch the trade & keep my powder dry for better opportunities if it fails up here.

Hey whipcrack
Did you manage to squeeze anything out of the Euro trade in the end? I see it's been dragged kicking, screaming & flailing to the 1st (65%) of your average daily range markers @ 1.3970........................I'd have gotten pretty bored with events long before it made a move

[goldtop]

My short term goal is to reduce the % at risk as my account increases.
I’m intending to get it down so that I’m placing up to a max of 1% of my account at risk, allowing me to also trade at least 2 standard contracts (obviously dependant on stop level).

Hows it goin shona?
You added any more pairs to your watch list, or you still content observing the majors?

Trust a woman to put a sensible slant on proceedings

[whipcrack]

Hey whipcrack
Did you manage to squeeze anything out of the Euro trade in the end? I see it's been dragged kicking, screaming & flailing to the 1st (65%) of your average daily range markers @ 1.3970........................I'd have gotten pretty bored with events long before it made a move

Ha ha ha, no I scratched it for +6 & covered some commission costs from last week.
Watching paint dry doesn't exactly rank highly on my radar



I guess you guys are keeping a sharp eye on the main GBP pairs (gbp/usd & gbp/jpy) this morning? Potential pullback opp's on the cards

[jack mason]

I guess you guys are keeping a sharp eye on the main GBP pairs (gbp/usd & gbp/jpy) this morning? Potential pullback opp's on the cards

That would be long the GBP-USD through 1.6030 with the stop back at 1.6010? & long the GBP-JPY through 145.12 with the stop back at 144.75?

Looks like the GBP-USD beat the second pair to the tape, meaning you’d be aboard that one only?

The 2 average daily range markers on the GBP-USD according to your usual configuration would be highlighting approx 1.6080 & 1.6150 if I'm reading it correctly?

I worked out that you're using a 100 ATR on a daily chart for those average range read outs?

[whipcrack]

That would be long the GBP-USD through 1.6030 with the stop back at 1.6010? & long the GBP-JPY through 145.12 with the stop back at 144.75?

Correct on both counts!

Looks like the GBP-USD beat the second pair to the tape, meaning you’d be aboard that one only?

For me yes, but you (or anyone else) might decide to trade both.
You also might decide to split your bet stake between 2 or more pairs if they're all setting up.

The 2 average daily range markers on the GBP-USD according to your usual configuration would be highlighting approx 1.6080 & 1.6150 if I'm reading it correctly?

I worked out that you're using a 100 ATR on a daily chart for those average range read outs?

Correct again.
You can also obtain an average by using the last months worth of activity (20 ATR) and/or the last couple weeks (10 ATR), especially if the price action has been particularly volatile or passive etc. It’s only a snapshot of the most recent price behavior designed to assist in better managing upside/downside potential away from your entry.

[whipcrack]

Here are the 2 chart captures highlighting the potential set ups before they triggered this morning.
The gbp/usd is the only one to have triggered so far.





And the potential upside markers that Jack mentioned in his post..



We’ve got some gbp data being released at 9.30am that you need to keep an eye on.
The services PMI is a barometer of the ongoing economic strength/weakness affecting companies. Obviously with the UK still struggling to overcome it’s credit crisis woes, these numbers are important in gauging forward growth potential, therefore could have a volatile short term impact on price action.

Worth being aware of what’s coming up for release to the market on the weekly economic calendar. You don’t want to be blindsided by important data, especially if you’re considering entering just ahead of a news release!

[goldtop]

I guess you guys are keeping a sharp eye on the main GBP pairs (gbp/usd & gbp/jpy) this morning? Potential pullback opp's on the cards

And to cap it all, the Euro decides to put it's hiking boots on too & join the 'long' party thru 1.3990.
I cut in on your slipstream whipcrack & snuck a long bet as it pulled back this morning....bit of a risk I know after yesterdays huffing & puffing, but I guess it was due a pop to the upside considering all the coiling up from yesterdays frustrating price action.

Good luck on the Cable bet