Real Time Short-Term Trading Gregory McLeod Currency Strategist

Transcription

1 Real Time Short-Term Trading Gregory McLeod Currency Strategist

2 Risk Disclosure Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

3 as a log or stone rolls down a hill, good soldiers seek effectiveness from momentum Sun Tzu, The Art of War

4 Active Trader Strategy Lab

5 For Scalping TIME TERRAIN TACTIC TOOL TREND TRIGGER

6 Enter in quiet times exit is wild times, Alan Farley During Asia Session 7pm -2am EDT TIME Before the U.S. Session 4am-7am EDT European Close/US Session Lunch

7 You need to be aware of the terrain and its affect on your soldiers, as well as the enemy. This will allow you to fight with advantage, Sun Tzu: 10.Terrain Determine the Mood of the Markets Overseas TERRAIN Use Dow Futures to See How the US equity Market may open up. Positive overseas markets could carry into the next market to open Markets seem to oscillate from Risk Appetite to Risk Adverse

8 You need to be aware of the terrain and its affect on your soldiers, as well as the enemy. This will allow you to fight with advantage, Sun Tzu: 10.Terrain is good to for taking the pulse of the market Scan DailyFX headlines for Forex specific news that may be at the forefront of traders minds Strong correlations between currency pairs and the equity markets can help keep us on the right side of the action

9 Buy or Sell Support and Resistance TACTIC Buy or Sell Breakouts Fade Price Spike Extremes

10 Risk Management Limits Vary from 2 to 15 pips based on Market Volatility Catastrophic Stop set at 40 pips Trade may be cut sooner and Position Reversed Divide Initial Position into 5 parts Scale in as Price moves against position every 2 to 5 pips and/or Price breaks out above entry If Position Limits out within 5 minutes or less Re-enter

11 Pairs with tight spreads and robust pools of liquidity (EURUSD, USDJPY, EURJPY, etc) TOOL Highly volatile pairs like GBP/JPY,GBP/USD Currencies that are at the Top or Bottom of Heat Map

12 TOOL Six Trading Pillars

13 TOOL Six Trading Pillars

14 30-Minute Trend Sets Directional Bias Scalping only in the direction of the Market Tide gives us an edge TREND Scalping against the 30-minute trend usually results in the losing trades that turn into position trades

15 TREND Could Trading Be This Simple?

16 Use DailyFX +Technical Analyzer to get Trade Ideas Based on 30-Minute Trend Direction Quickly TREND

17 Price Breaking Support/Resistance/Trend line Price Bouncing from Support or Resistance Price crossing a Moving Average TRIGGER Candlestick Reversal Pattern S/R Stochastics / MACD Crossover Market Depth Imbalance

18 Price Breaking Support/Resistance/Trend Line TRIGGER

19 Price Bouncing from Support or Resistance

20 Price Crossing a Moving Average

21 Candlestick Reversal Pattern at S/R

22 Stochastics Crossover on 24-tick chart

23 Market Depth Imbalance

24 Market Depth Imbalance

25 What are your Questions?

26 Let s Go Out to the Market