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This article in turn tells us about averaging as the main principle for an expert advisor’s algorithm. Along with strategies based on indicators only, this type of programs also uses them to find the most suitable moments to open and close trades. “What is ‘averaging’?” – people new to Forex would ask. Firstly, if you look at the price chart, you'll see that if it goes upward, it still comes down later at the least to 61.8% of the initial value and vice versa. This regularity of the price is known as correction and occurs periodically; however, the price often returns to 38.2% or even lesser range of the initial value. If you want to learn more about correction, just consult the Fibonacci levels on Forex. Secondly, we can make a profit out of it.
What trader doesn't know about correction is how far the price goes each time, till it starts its reverse movement. So traders invented such an interesting method as averaging, which means opening several trades before the correcting movement begins. As a result, we almost always have profit exceeding loss. But if there is a trend that implies the absence of correction, we have several losing trades opened. So, in this case possible soluti…
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WallStreet6 avatar

Interesting!

chuvee avatar
chuvee 28 July

Yep )

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4/30
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This is a series of 2 articles.
Part 1
Trade management or money management? Often times it is confusing. I would refer to money management when choosing how to treat all of capital available for trading. For instance, trader wants to increase his lot size per each trade only after the capital has increased by 20%. However we would talk about the trade management when trader decided to move his stop loss to break even as soon as the trade has moved certain amount of pips in his favor. These are just two simple examples to illustrate the difference between both.
By knowing the proper ways of how to implement trade management based on a specific strategy trader can improve his overall performance significantly. Trade management is used mainly for 3 reasons which are to protect capital, to increase profits and to improve entry and exit.
These two articles will cover following techniques:
  1. Pyramiding ( averaging in or averaging up )
  2. Scaling in ( averaging down )
  3. Scaling out ( averaging out )
  4. Trailing stops
  5. Martingale and anti-martingale
Each of these 5 techniques will be covered in detail including variations. You will also see how it looks on a chart and will find out when…
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Elani avatar
Elani 18 Apr.

Great article!!! Waiting for the 2nd part.

Likerty avatar
Likerty 19 Apr.

I'm awaiting eagerly the rest of the series:) Thats a topic I'm focusing myself lately.. I see the most problematic part of any managmenet approach - the exits.. Often, even when I have very exact targets, I strugle to maintain positions during prolonged consolidations or when agressive corrections appears..

Armands avatar
Armands 19 Apr.

Thank You guys for Your comments and good words. I will do my best to put together a second part tomorrow.

luke1973 avatar
luke1973 22 Apr.

From all the articles for the April contest I've read this is suppose to be on a first place.But  How can you be appreciate from people which still don't know how to make money ?.............

Armands avatar
Armands 23 Apr.

Thanks luke1973! For me it is enough to be appreciated by the few who know how :) Or by those who find it valuable.

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66/100
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There is a lot of noise when one tries to trade Intraday, how do you make your way through this noise just to get that one right entry and ofcourse the right exit. Trading intraday is a challenge but then what in life isnt??We consider that all prices move in waves, this valid to all Time-Frames we will just apply it on the lower time frames.Trade with the current Trend & by the current trend I dont mean the monthy or weekly trend but coz we are focussed on trading Intraday we are concerned about the daily trend. Let say we are working on the 5min TF, then we are concerned about the 30min Trend. If the 30-min TF is bullish we go only long and if the 30min TF is bearish we take only short enteries and if it is in sideways we either trade the extremes are wait on the side-lines.Identifying the trend is not to easy. Trendlines are very handy, a very simple Can be used for lower risk entries and determining stop loss strategy. Focus on trading with the dominant trend of the day. When that trend shifts, begin trading with the new trend.Follow the news. See if there are any major news coming around and follow it. News can drastically change the direction of the trend are give huge moves …
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mielec avatar
mielec 20 Dec.

Day trading have no noise. When I look at the charts I see a beautiful structure. unfortunately I do not understand these structures. But there are and certainly there are people who understand them perfectly!

radha avatar
radha 21 Dec.

Yes... I want to trade intraday....

ritesh avatar
ritesh 22 Dec.

Quite extensive article. Keep it up buddy and wishing you a very happy and prosperous New Year. +1

live4trading avatar

Thoughtful!!!!

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