Rules for opening, maintaining, and closing positions.
Rules for open positions
1) Open up the position only if there is one primary and at least one confirming signal.2) When you open a required advance, create and write down on paper:- The price at which you are willing to close for a profit;- The price at which you will close upon receipt of damages;- Estimated time during which you are willing to maintain an open position. 3) Carefully and for a short time to open against the trend.4) Be careful for a short time to open in the absence of a specific trend (in sideways).
The rules of carry and the partial closure of the estimated time
1) Maintain the position only if the analysis confirms the earlier findings.
2) Partially closed:- Upon payment of losses over;- If the price reached a settlement mark for profit.
3) Look for:- If lower than the estimated damages;- If the price stays at the same level;- If the price has not reached the estimated mark for profit.
Rules unwinding
Close position in any event (subject to the above described features of work):- After the estimated time;- If estimated earnings;- Upon payment of damages;- When you reach the maximum profit.
Opening and closing a position is shooting at a moving target. Get exactly the bull's-eye (selected price) is difficult. Be prepared to bargain at a price close to the "apple."
Slightly on the averaging
Averaging is a strategy work, in which a trader produces the same type of surgery to perfect before (a long position or short selling in) on an even more affordable price.The main disadvantage of averaging is that you do not know in advance as to what the price will go against you, marketplace. Along with it every time averaging required to make additional mortgage funds, which increases the risk of your position. Most beginners make the traditional error - in the pursuit of high profits "overload" your account, relying on all available funds.
For example:You bought $ 100,000 against the franc at the rate of 1.5500, expecting to sell at a price above 1.5510 and earn 10 pips (15 510 - 15500). But the price in a short period of time has gone down and was - 1.5480, thus you have suffered a loss of 20 points (15 480 - 15500).You decide to buy another $ 100,000 for this course franc 1.5480, expecting to sell now $ 200,000 at a price of 1.5495 and earn the same 10 points of profit (15 495 - 15500 + 15 495 - 15 480). Thus you have made an average of two positions at the average rate 1.5490 ((15500 + 15480) / 2) and you no longer need to wait for the price increase to 1.5510.
Among traders goes a joke that people have resorted to averaging the three tendencies: the rich merchants, traders stupid, stupid rich traders. Remember that every joke - only to share the joke.
Finally - one of the interesting tactical developments, which gives good results on intraday intervals Forex. Every day around 9:00 Moscow time, on the basis of a mathematical model that includes the testimony and the Elliott Wave oscillator Stoch, RSI and M ACD), calculated the corridors of price changes for each of six exchange rates: EUR / USD, USD / CHF, GBP / USD , USD / JPY, EUR / CHF, EUR / GBP.
In this case calculated the maximum and minimum values of these currencies for the period of construction of four bars of your operating range. Results in two corridors - Corridor for High values and the values of the corridor to Low. At the time the 300 minutes will be given a forecast for the period from 9:00 am to 5:00 am the day of the next day, and 60 minute range - respectively from 9:00 to 13:00 the day. The calculated levels of High and Low are not the levels of resistance and support in its purest form. The first forecast is used as a preliminary, and the second, shorter in time, you need to enter the market or out of it. The probability of coincidence of these forecasts with the actual movements of prices in practice is about 82%. Where:
1. The course chosen currency should fall into the corridor as High, and in the corridor Low, at least once (the method does not predict re-return rates in the corridor, in which she had visited once over a selected time and came out of it).
2. Likely that the value of High will be close to the level of «High average", and the value will be close to the Low level «Low average." However, perhaps a small price crossing the level of «High minimum value" or border «Low maximum value."
3. The probability that the rate will be much higher than the «High maximum" or «Low minimum value is low and is only 18%. If the exchange rate has crossed one of these limits in at least two consecutive bars (their closing prices), then this is evidence of fundamental change in the foreign exchange market. Therefore, depending on the position you occupy in the market place stop-loss level «Low minimum value" or «High maximum value." In this case, the probability of triggering the command stop - is only 18%, but the volatility of the market rarely beats a stop - and usually save you from significant losses.
Rules for open positions
1) Open up the position only if there is one primary and at least one confirming signal.2) When you open a required advance, create and write down on paper:- The price at which you are willing to close for a profit;- The price at which you will close upon receipt of damages;- Estimated time during which you are willing to maintain an open position. 3) Carefully and for a short time to open against the trend.4) Be careful for a short time to open in the absence of a specific trend (in sideways).
The rules of carry and the partial closure of the estimated time
1) Maintain the position only if the analysis confirms the earlier findings.
2) Partially closed:- Upon payment of losses over;- If the price reached a settlement mark for profit.
3) Look for:- If lower than the estimated damages;- If the price stays at the same level;- If the price has not reached the estimated mark for profit.
Rules unwinding
Close position in any event (subject to the above described features of work):- After the estimated time;- If estimated earnings;- Upon payment of damages;- When you reach the maximum profit.
Opening and closing a position is shooting at a moving target. Get exactly the bull's-eye (selected price) is difficult. Be prepared to bargain at a price close to the "apple."
Slightly on the averaging
Averaging is a strategy work, in which a trader produces the same type of surgery to perfect before (a long position or short selling in) on an even more affordable price.The main disadvantage of averaging is that you do not know in advance as to what the price will go against you, marketplace. Along with it every time averaging required to make additional mortgage funds, which increases the risk of your position. Most beginners make the traditional error - in the pursuit of high profits "overload" your account, relying on all available funds.
For example:You bought $ 100,000 against the franc at the rate of 1.5500, expecting to sell at a price above 1.5510 and earn 10 pips (15 510 - 15500). But the price in a short period of time has gone down and was - 1.5480, thus you have suffered a loss of 20 points (15 480 - 15500).You decide to buy another $ 100,000 for this course franc 1.5480, expecting to sell now $ 200,000 at a price of 1.5495 and earn the same 10 points of profit (15 495 - 15500 + 15 495 - 15 480). Thus you have made an average of two positions at the average rate 1.5490 ((15500 + 15480) / 2) and you no longer need to wait for the price increase to 1.5510.
Among traders goes a joke that people have resorted to averaging the three tendencies: the rich merchants, traders stupid, stupid rich traders. Remember that every joke - only to share the joke.
Finally - one of the interesting tactical developments, which gives good results on intraday intervals Forex. Every day around 9:00 Moscow time, on the basis of a mathematical model that includes the testimony and the Elliott Wave oscillator Stoch, RSI and M ACD), calculated the corridors of price changes for each of six exchange rates: EUR / USD, USD / CHF, GBP / USD , USD / JPY, EUR / CHF, EUR / GBP.
In this case calculated the maximum and minimum values of these currencies for the period of construction of four bars of your operating range. Results in two corridors - Corridor for High values and the values of the corridor to Low. At the time the 300 minutes will be given a forecast for the period from 9:00 am to 5:00 am the day of the next day, and 60 minute range - respectively from 9:00 to 13:00 the day. The calculated levels of High and Low are not the levels of resistance and support in its purest form. The first forecast is used as a preliminary, and the second, shorter in time, you need to enter the market or out of it. The probability of coincidence of these forecasts with the actual movements of prices in practice is about 82%. Where:
1. The course chosen currency should fall into the corridor as High, and in the corridor Low, at least once (the method does not predict re-return rates in the corridor, in which she had visited once over a selected time and came out of it).
2. Likely that the value of High will be close to the level of «High average", and the value will be close to the Low level «Low average." However, perhaps a small price crossing the level of «High minimum value" or border «Low maximum value."
3. The probability that the rate will be much higher than the «High maximum" or «Low minimum value is low and is only 18%. If the exchange rate has crossed one of these limits in at least two consecutive bars (their closing prices), then this is evidence of fundamental change in the foreign exchange market. Therefore, depending on the position you occupy in the market place stop-loss level «Low minimum value" or «High maximum value." In this case, the probability of triggering the command stop - is only 18%, but the volatility of the market rarely beats a stop - and usually save you from significant losses.
No comments:
Post a Comment