Downloaded MT4 from https://www.metatrader4.com/en/download. Found out that I downloaded MT5.
Friday, November 24, 2017
Registered with FxChoice
I found out that oanda is an MM (Market Maker) forex broker. I looked for an alternative and found FxChoice which is an ECN forex broker. I immediately signed up and uploaded ic for verification.
eToro verified
Registered with etoro on 21 November, 2017. Uploaded ic and tm bill. Today 24th November, 2017, got verified.
But minimum trade is USD5000 and minimum for each CopyTrade is USD100.
But minimum trade is USD5000 and minimum for each CopyTrade is USD100.
Thursday, November 23, 2017
I am back
Re-registered with oanda under Australia account as my old US account does not allow funding via paypal, but Australia account does. Contacted customer support and she advised me. Uploaded IC and TM Telekom bill for verification. My old us oanda account will be cancelled.
Thursday, March 20, 2008
Another Catastrophe with EUR-JPY
Lost: 350 pips
Trading with Stop Loss. I entered a Long Position via a Limit Buy at around 9.54 am.
The price kept falling and falling and at 10.45 pm, I experience my first Margin Call.
The price had dropped 350 pips in 12 hours. In terms of price, this is a 70% loss and is my biggest lost so far since I started trading in Dec 2007.
To me this is a most unexpected price behaviour for the EUR-JPY which is a ranging pair.
It appears that EUR-JPY's daily peak-to-peak amplitude is far wider than that of the CHF-JPY pair.
Unfazed, I took stock of my trading strategy again. Upon analysis, I find the CHF-JPY pair to have a smaller peak-to-peak daily amplitude and that is where I will focus on for my next trades. However, CHF-JPY seems to have a wider spread this week, today it is 5 pips. For the past 6 weeks it was 2.8 pips. This week seems to be a departure from the norm. However, the amplitude for the M1 chart seems to be about 20 pips as of writing. I figure that, so long as the bollinger band's width is much bigger than the spread, range trading is still possible. In this case, the spread is 5 pips, but the Bollinger Band is 20 pips.
I will still apply the same trading system, ie.
1-pip Range Trading Strategy without SL
Trading with Stop Loss. I entered a Long Position via a Limit Buy at around 9.54 am.
The price kept falling and falling and at 10.45 pm, I experience my first Margin Call.
The price had dropped 350 pips in 12 hours. In terms of price, this is a 70% loss and is my biggest lost so far since I started trading in Dec 2007.
To me this is a most unexpected price behaviour for the EUR-JPY which is a ranging pair.
It appears that EUR-JPY's daily peak-to-peak amplitude is far wider than that of the CHF-JPY pair.
Unfazed, I took stock of my trading strategy again. Upon analysis, I find the CHF-JPY pair to have a smaller peak-to-peak daily amplitude and that is where I will focus on for my next trades. However, CHF-JPY seems to have a wider spread this week, today it is 5 pips. For the past 6 weeks it was 2.8 pips. This week seems to be a departure from the norm. However, the amplitude for the M1 chart seems to be about 20 pips as of writing. I figure that, so long as the bollinger band's width is much bigger than the spread, range trading is still possible. In this case, the spread is 5 pips, but the Bollinger Band is 20 pips.
I will still apply the same trading system, ie.
1-pip Range Trading Strategy without SL
Wednesday, March 19, 2008
Stop Loss-less Trading
Having lost 157 pips in the previous trade, I took a long look at my trading history.
I discovered the following:
1. Almost all my losses since I started trading in December 2007 (last year) is caused by
Stop Losses. Only a handful is caused by my manually closing the trade (when the price was
going the wrong way).
2. In most cases, after the SL was taken out, the price would reverse direction and go the
right way.
3. None of my trades came close to margin calls, even after the SL was taken out.
4. Many of the SL was taken out by sudden price spikes (conversely, a few of the TP hits are
also caused by price spikes).
Based on the above observation, I hypothesise that, my losses are invariably caused by Stop Losses. This begs the question:
How to avoid losses?
And the only logical answer is:
Do not use Stop Losses.
I will now embark on a new revised One-Pip Range Trading Strategy. All of the strategy will
be the same, the only difference is:
Do not put in Stop Losses.
For this to work, I must be willing to accept the following:
1. I must be prepared to lose my entire capital. And I surmise that, I am prepared to do so. Whatever profit I want to keep, I will withdraw from the Oanda Account, and whatever is left in the Account is the amount I am willing to risk losing. That will be my psychological preparation.
2. I should not trade large amounts of units, not more than 1000 units.
With that, I henceforth trade SL-less.
I discovered the following:
1. Almost all my losses since I started trading in December 2007 (last year) is caused by
Stop Losses. Only a handful is caused by my manually closing the trade (when the price was
going the wrong way).
2. In most cases, after the SL was taken out, the price would reverse direction and go the
right way.
3. None of my trades came close to margin calls, even after the SL was taken out.
4. Many of the SL was taken out by sudden price spikes (conversely, a few of the TP hits are
also caused by price spikes).
Based on the above observation, I hypothesise that, my losses are invariably caused by Stop Losses. This begs the question:
How to avoid losses?
And the only logical answer is:
Do not use Stop Losses.
I will now embark on a new revised One-Pip Range Trading Strategy. All of the strategy will
be the same, the only difference is:
Do not put in Stop Losses.
For this to work, I must be willing to accept the following:
1. I must be prepared to lose my entire capital. And I surmise that, I am prepared to do so. Whatever profit I want to keep, I will withdraw from the Oanda Account, and whatever is left in the Account is the amount I am willing to risk losing. That will be my psychological preparation.
2. I should not trade large amounts of units, not more than 1000 units.
With that, I henceforth trade SL-less.
Disaster strikes with EUR-JPY
Lost: 157 pips
My limit long order was fulfilled for 1000 units on the EUR-JPY pair at price 156.22 at 11 am.
My TP was 1 pip and SL = 156 pips.
At 5 pm, the price took out my SL. It had dropped 150 pips in 6 hours which translates to a 25% loss. This was totally unexpected. I had thought that my 150 pips SL would be sufficient.
But apparently I was wrong.
This taught me an important lesson: the SL for trading EUR-JPY should be more than 157 pips.
Maybe 200 pips would be more appropriate. And if, I was not willing to risk 200 pips SL, then, I should stay away from the EUR-JPY pair.
For CHF-JPY, a 100 pip SL was sufficient as evidenced by my 6 weeks' successful trades.
A good idea would be to do a study on intra-day fluctuations (daily peak-to-peak amplitudes) on the Ranging Pairs. This would help us decide the proper SL's to use on the respective pairs.
My limit long order was fulfilled for 1000 units on the EUR-JPY pair at price 156.22 at 11 am.
My TP was 1 pip and SL = 156 pips.
At 5 pm, the price took out my SL. It had dropped 150 pips in 6 hours which translates to a 25% loss. This was totally unexpected. I had thought that my 150 pips SL would be sufficient.
But apparently I was wrong.
This taught me an important lesson: the SL for trading EUR-JPY should be more than 157 pips.
Maybe 200 pips would be more appropriate. And if, I was not willing to risk 200 pips SL, then, I should stay away from the EUR-JPY pair.
For CHF-JPY, a 100 pip SL was sufficient as evidenced by my 6 weeks' successful trades.
A good idea would be to do a study on intra-day fluctuations (daily peak-to-peak amplitudes) on the Ranging Pairs. This would help us decide the proper SL's to use on the respective pairs.
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