How to hold and fold in the U.S. trading game - Trading Systems

ismael360 2012.08.19 12:03 #2021

Tzuman:
Ish,

There is never perfection, just a lot of effort to achieve a close proximity to perfection. There are so many facets to trading forex that solving one problem only leads one to focus on the next as XARD is doing. Nearly all of the systems XARD has included in this thread achieve a certain degree of success. It is knowing when "to hold them and when to fold them" which leads to profitable systems.

MS

Your right MS, (The Mad Scientist),. There probably will never be perfection. But it is the quest for perfection that drives perfectionist like Xard and yourself too push the trading systems too the level they are now.

And knowing when to hold them and when to fold them is the ideal way to play this game. Which is why the trading setup it only half of the equation to trading successfully. Knowing when a pair is making a significant movement to give an ideal trade and knowing what its vitals are to insure you get the winning trade that you risk your good money for is one of the important aspects of knowing when to hold and fold.

Im sure there are many more.

Ish

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ismael360 2012.08.19 13:23 #2022

In my opinion a simple example would be to utilize something that helps determine strength and weakness.

Like a simple currency power meter that Xard has shared many time in many of his setups.

Take Mundu's chart here. It's the setup that Xard posted here called the X-chart.

If you haven't traded with this chart then you should get yourself familiar with it because it's pretty good.

It's one of my favorites.

You can see the obvious entry points on this setup. Its freakin obvious when to look to enter, right?

But the question is should you enter.

Just because you have an entry. Does that mean you should enter.

And that goes for any setup.

Just because you have all your ducks in a row. Or all you indicators lined up for one moment to give a good signal to buy or sell, should you risk your hard earned cash to take that trade? ??

I tell you what you can have a badass setup. Many in which I have now. I have many setups and all of them are great. But I gurantee you that I can't just take any trade those setups give me and always come out with a win.

Not that the entry's won't be valid entries. But they can be good one moment then sometime later fizzle out and even go against me, hit my stop loss, and I lose. It happens. It still happens.

But I can garantee you that if you incorporate better ways to figure out which entries have a higher probability of moving in your favor then you have just raised your winning rate big time.

Heres where a simple addition to your setup like the currency power meter can come in handy.

Now if one of those entry points on Mundu's xchart came along and your currency power meter reading for that pair says that the strength and weakness of that pair isn't going along with whats on your chart then why risk it?

Meaning if the eur isn't at one side of the spectrum of the meter fighting against the usd which you want on the other side of the spectrum showing the strength of which eur/usd, (mundus chart), is more likely to move. And if its not going along with the entry the setup is giving you then why risk it?

Yeah you might miss a valid trade. But I can bet you many more trades will come along.

Now if you do get a valid entry from the setup. Everything lines up the way you like it and the TDI is giving you the nod saying your clear. And your trigger and candle color change is ready.

Then you look over to your power meter or what ever it is your using and its like yeah the eur is at one side of the spectrum and the usd is at the other and its looking strong agreeing with your entry, like its patting you on the back saying you got this.

Then the probability of you winning that trade has gone up a little, yes?

Now im not saying everyone run out and throw a currency meter on your chart. What Im saying is that theres more to trading these charts then lining up indicators and waiting for a good signal visually. Its not always about what you see.

Get under the hood. Get your fingers dirty. Look at the vitals of the pair. Meaning it's health. Is it looking strong or is it looking weak.

Look for patterns that have worked in the past

. Like, yeah I got a valid buy entry and my eur is freakin strong and the usd is freakin weak and the London just opened up.

And the trade is in the direction of the 4hr, or Im comming off the bottom line on my bands and there moving in a up direction. Or what ever. Thats up to you to figure out.

This is what we should be focusing on. Not does this indicator re-paint? or whats the best indicator. Trust me theres many great indicators out there. Many of which have come out of TSd. And you can throw them all on your chart. All of them, till there is no room left. And you can still lose, trust me, i've tried it.lol

I just think we should focus on the bigger picture. Strategy. The best way to trade Xards setups. Trend catching, basket trading, breakouts. How ever you like to get down.

And lets look at the successful patterns and lets improve upon them.

Ish

p.s. sorry if i talk to much. Also sorry I can't spell for crap.

Files:

currency_power.gif 19 kb

mundu_xchart.png 81 kb

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mundu09 2012.08.20 02:58 #2023

ismael360:
In my opinion a simple example would be to utilize something that helps determine strength and weakness.