13 May, 2021 Ignat Terentyev Strategies 0 EURUSD, H1, a deal to buy on the "hammer" Contrary to the stereotype, popular with novice forex traders, Price Action is not a trading system, and, rather, trading style, based on some candlestick analysis patterns. Himself
We continue to publish material from the archives Bullish patterns of trend continuation Bullish variants of such patterns appear in the middle of an uptrend. Explosive movement is indicated by speed and dynamics of movement. Ie. When 20$ stock moves up 70 cents and more, behind 1-2 minutes. This setup can be traded long, so in shorts. Beginners should focus on trading longs. This pattern usually develops, because hot news is coming out. Consequently, the market has little impact on this pattern.. What does this type of movement look like on a chart? On the 1 minute chart, you will see a large vertical explosive bar. The following 1-3 bar will be much smaller. If, after an explosive movement, the stock has a small pullback and begins to move in a small range, then in most cases, after this range, the stock will go up. You should never enter a trade on an explosive vertical bar. Wait for that moment, when the stock calms down and begins to consolidate. This will give you the best risk to reversal ratio.. This pattern indicates a strong upward momentum. Usually a market order for an offer is entered into this setup., and limit orders are also issued for the offer. Any flag and pennant ends in "LowerHigh". It is easy to fool yourself when trading this setup., confusing "LowerHigh" with another explosive movement. What do you expect from the next upward move? If the first …
NB: Pro spin the wheel, beginners print and learn by heart:)
Part 1. Risks.
The basis of the risk management is the value of the daily stop – this is the maximum amount, that you can lose in a day. Personally, I am not a supporter of that, to count it every day according to some cunning scheme (for example, hang the moving average on the profitability chart and determine the stop for the day by its value). But what exactly is worth doing – it is to decrease the day stop during the red bar. This allows you to relieve the psychological stress., get back to work and trade with a cool head. As results improve and self-confidence grows, stop needs to be increased. Raise it in 2 times too cool, but less, than one and a half – not seriously. Briefly speaking, уполторение – our choice:)
, the same mythical character, which I spoke about in my , force to trade all ideas in the same size – it will trade at 0 at best.
How to determine the size, who need to enter the position? First you need to decide for yourself, сколько вы готовы потерять в идее. The resulting value must be divided by an adequate stop in cents, round in any direction – get a size.
Example: idea of 50$, risk of cents 15, 50/0.15~300sh.
Now let's dwell on the most important – how much can you lose in a specific idea? In order not to blow up your brain, all ideas should be divided into three classes:
Класс С. Just fucking ideas (we are good boys and we don't sell any shit, Really?). These include approximately 80% all ideas. Depending on their trading style, they need to be willing to sacrifice 10% to 25% day stop.
Class B. Just HUGE ideas. Yet 15%. Such should be allocated 30-50%.
Class A. Top 5%, they happen once in a lifetime / year / month. Confidence in them must go off scale! 50-100%, even if the day is just beginning.
Example: Сферический стачок АВС падает в сильный день на повышенном объеме, runs into a large bid, on 7 cents higher a big offer is placed, prints go into it (ОМГ, he is real!), the stack has not yet made half of its daily range. Bid print out planned. This is a clear B. Let our stop 100$. Looks so good, that fifty dollars is not a pity. 50/0.07~700sh. Выход в распринт офера, now we make a plan for where and how to fix the profit and forward!
Belonging to a class – it is a function of many factors: market, stock fundamental, news, cup, volumes, where and how these volumes took place, тапе, sector, setap, then, how it looks on different time frames, риски ликвидности, risk-return and much more.
You need to constantly work on the skill of defining the class of ideas. It's incredibly difficult., including psychologically, but this is the grail, кроме шуток:)
Напоследок забавная история. Тот самый Серега как-то раз на моих глазах набрал 10к (mb and embellish, but five were there anyway:) on strike, which trades about 100-150 thousand. Not, not because he's fucked up (reread the post, ёба!), but because he was confident in the idea and was ready to leave the entire day stop in it. It all went wrong at once, and throwing such a size into the market would immediately put the strike on the Top Loosers list.:) Briefly speaking, he sat and covered himself all day. About an hour before closing, he completed the process, fixing the elk in one and a half pieces. Got up and left. The end of the story I think everyone guessed it: under the closing, the stack shot in his direction by almost a point.
During numerous discussions trade on paper and its implications as a learning tool, we usually see participants, divided into two camps. The first speaks of the total uselessness of paper trading., another vows not to start trading without it. Mocking Camp Points to Obvious Limitations of the Paper Trade:
Let's try and build trading rules on paper, which will enable us to turn it into a powerful learning tool. We can identify three cases, where paper trading is used instead of real for the purpose:
Trading on paper makes it easier for you in real trading and see if your theoretical approach works. This is the stage, where you start to measure your method against market movements. You will have ample time to review psychological pressure and performance techniques later on., adding them gradually, since you start trading with low volume. but, before real money is used, theory must be verified by reality, and this first experiment should be painless for your trading account, насколько это возможно. Obviously, trading on paper does not pursue any meaningful goals, if your trading system is built this way, that you can test it, thus, starting by building your trading approach, and then continuing testing it in the mode real time.
Trading on paper is built in a fairly simple way. This is a simulation of your actions without actually sending your orders to the market maker. You define your setup with all its components: signal for the entrance, stop level, signs for exit, the possibility of partial exit and pull-ups. Then, watching market action, you simulate your ins and outs, writing them down. This will be your first meeting with the market, so take it seriously. Trading on paper teaches you a lot about market action without scouring your money., if you follow closely and act responsibly.
Watch, do your setups. If you are losing money on paper day in and day out, there is something wrong with your approach. Try to make corrections, find what factors you did not consider. This is the stage of fixing errors - looking for problems to fix. If you receive a negative result, don't be discouraged - it is much better to know about the problem before transferring real money to a dubious method.
Watch, does yours work risk management. You lose within your defined limits on any trade and on any day? Maintain discipline at this stage - your future trading results will be at risk, unless discipline has become your second nature.
The all-important purpose of paper trading is, to figure out the maximum rollback, which you may encounter. This element may require a slightly longer paper trading stage.. The fact, that losses and wins are not necessarily evenly distributed on your trading chart. You may face a string of losses. Although the average loss may be affordable in terms of your trading capital, and the group of losses cannot. It is very important to make sure, that a losing streak doesn't kick you out of the game.
Here are the rules for trading on paper, which allow it to be as close to real as possible and make paper trading an effective learning tool:
Explore your platform. Manipulate settings, change the number of shares, the price of your order, order type and router type. Switch limit order on market order and vice versa, practice changing quickly change cent. manipulate the settings long enough, to make this process automatic. Learn how to place additional orders.
AND, finally, configure sending orders in this way, to keep your money safe. Do it in the following way.
Set a small number of shares – from 10 to 50. Set a price, far enough from the market price, not to be fulfilled. If the stock is trading for about $20, prepare your buy order by $10 and for sale by $30. Submit orders. look, is there any confirmation. Now cancel the orders and see the confirmation. Make Sure, that all messages, which you got, verified, so as not to waste time reading them later. Make Sure, that pop-up notification windows do not interfere with work. Monitor the accuracy of quotes, especially during the most active periods. Make Sure, that you have a phone number, for quick communication with the broker and with the technical support of the provider, in case of possible problems with the Internet.
Often asked, how long should this stage take. But there is no answer, the same for all. There are traders, who study during the week, and I know a broker, who traded on paper for a whole year. This does not mean, that he is a slow learner. He was just perfecting his trading system., until I was completely satisfied. Although the year, maybe, this is already extreme, and a week or two is also not quite right, which suits most people. The exact time is usually not important, since it will be different for everyone. Paper trading has specific goals, and you must move forward, when these goals are achieved. Keeping all your trading rules, you can show a stable profit? You have seen how your setups work and you are comfortable with them? Are you sure you know the drawdown, which your system can create and can withstand this drawdown? You feel comfortable working with charts and trading platform? If you can answer YES to all of these questions, then trading on paper can last only weeks for you. If you cannot answer for any reason, make in practice one of the most important elements of your psychological transformation – patience. Learning to sit on the sidelines will serve you well.. It will also allow you to gain a greater sense of self-control on your first day..
We mentioned two more cases, when paper trading makes sense.
Testing a new system or improvement of the existing, will obviously make you go back to paper trading. You change something – why risk real money before, how to make sure it works well? Usually, when a trader does it, he already has enough experience in his belt, to know how effective trading on paper is. Just make sure, that you are giving her enough time and your results are already statistically significant. I know a trader, which makes this type of new testing setup without stopping real trading. In the process of real trading, it simultaneously records optimized trades, comparing the results and drawing conclusions about the quality of optimization.
After going through a series of losses, the trader wants to find out the reason for the low performance. These are market conditions, which change this way, that it destroys his trading system? This is a trader, who acts unruly himself? If this is a market, whether it has changed fundamentally or is it a short-term fluke? Or changed main trend? Or is it just temporary narrowing the range without volumes? What is likely to happen next? These types of questions are not easy to answer in the heat of battle.. In this way, digression towards revaluation of things, to regroup and rebuild trust or reconfigure your approach, is a good solution.
If for some reason you switch to paper trading, your main step to ensure success in this, is the definition of goals and the development of steps to achieve it.
There is such bullshit: if you try (proceed) expand the range is done 1-2 point towards expansion and (sharp) bounce back - this suggests, that there is no desire to move in this direction.
You can try to enter on pullbacks.
No mood, all on my nerves, twitchy, I am looking for some half a turn ):
Sitting Whiplash coding.
Нахождение хай\лоу\опен\клозов по сессиям сделал, there is not much left - to code the main algorithm for comparing this whole case and trade…
Bai-setap (sell-setap - reverse)
PS. There are those who want to unite in robotics?
I grew up in a small town near Las Vegas.. One summer, a group of teach lei decided to work part-time in a casino while on vacation. Fun for fun, они объединили свои деньги, To view, what's going to happen, if they constantly play on a machine with one lot to the jackpot. They lost about a quarter of their money.. This story shows that, what we all know so. Non-professional players will never be able to leave the casino, even with a zero balance. Free alcoholic drinks, entertainment, lounges are the only goal for non-professionals, who come to the casino to relax and lose money. The casinos are arranged like this, that the probability is always in their favor. Everything, what they need to do is wait, let people play and stuff their safes with cash. Playing casinos can be fun, if you know, how to limit your losses, and when to finish the game. If you don't manage risks, trade without a reliable trading plan and trading strategy, trading is an activity similar to playing in a casino for the sake of relaxation.