Being Stopped out

Yesterday I being stopped out again. Total earning is 60 pips. This is because I trail my stops too near. This is the dilemma, Trailing nearer give less risk, but easier to get stop out. Tailing far giving more risk on loosing pips, but can yield bigger reward. More pictures below..

The graphic here show my entry, and the point i being stopped out. If i have stay in the trade, the income would have doubled for today.

Read more!

Trailing Stops in Metatrader

I have been testing out trailing stops feature on Metatrader lately. In this posting I will talk more about this wonderful feature. Also attach here are some of my trailing stops result.

To use the trailing stop on your Metatrader, right-click on your opened trade (inside terminal window), and select trailing stop, then select the amount you need. By default there are pre-determine points, but you may enter your own value as trailing stops.

When the price move more than the amount from your entry (or your previous stops), Metatrader will automatically set new stops. Because trailing stops is executed with the MetaTrader client, thus the client has to be left running to enable the trailing stops.

I have been trying with various value for trailing stops. Set the value too small, and the trailing stops will move according to price, but we will get stop out at slight retrace of the price. This is not good as the price will continue to move a great deal after the retracement.

If setting the trailing stops too big, we might miss out some trade, some winning trade may be too small to move the trailing stops, and reverse out and cause losses.

I still have not find the suitable value on each timeframe yet. Will be working out ways to optimized it.

Read more!

Indicator: ZigZag Indicator

The zigzag indicator is not really an indicator. It is used to illustrate the price trend in clear form, filter out less significant price change and noise.


Zigzag indicator using percentage of difference in its construction. When a swing low or high is more than the percentage, the line is drawn. Other swings high or low that are smaller than the percentage of changes are ignored. The ZigZag indicator did not have predictive power.


Usage
Zigzag indicator used to highlight the trend. It can be used to determine the direction of trend. It however does not indicate timing for entry and exit. The line is redrawn based on changes of the price.

Another use of ZigZag indicator is to ease the wave count. Many traders use zigzag indicator to count the wave in Elliott Wave form.

Here are some reference on ZigZag indicator:
http://www.forexrealm.com/technical-analysis/technical-indicators/zig-zag.html
http://www.traderslog.com/zig-zag-indicator/
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:zigzag

Read more!

I'm Back

wow.. such a long time no update this blog
I am stuck at company event for the past few weeks
(my stupid day job)
kinda miss the pretty candle chat...

Anyway.. i back from the events
and will continue working on my EA and manual system

This sucks.. as time past so fast now already November
too many things stacking up..
Read more!