Live Forex Trading |

People ask me.

So people ask me how much time do I need to spend on my account and how much of my day is going to be spent on me trading. So very little of my time is spent trading. So what I do do is, is I do spend time watching the chart because I'm excited about it. I'm excited about Forex and I'm excited about what's going on and I love it. So. But I'm not trading. I'm just like on and off watching the chart. So what I do is, is I'll place pending orders at certain areas on my chart so that I don't have to watch the chart. And the orders will automatically trigger when that prior when there's price action. So price action means when the price moves to that area. So a buy stop basically means that. Let's say you're in a channel. Okay, so we're in a channel. So let me just create a little picture for you. So let's say you. There is a channel here. So here's a channel there and here's a channel here. Okay, so the second candle opens above the 8 exponential moving average. It goes up and then it comes down and the second candle opens below the atma. And then it goes up and we stuck in this little channel here. And you're not quite sure what to do. Okay. Okay, so now you've got two trades open. The second candle opened above the 8 exponential moving average, but the price didn't go up that much. Then it went down and the second candle opened below the atma. So now you're hedged. Okay, so now people say to me, well, now what do I do? Like do when do I place another trade? And like how do I place that trade? So do I constantly watch the chart waiting for the opportunity to place their trade? No, you don't have to. Okay, so what I did was I wanted to know, I wanted to know when the channel had been broken properly. So I placed a sell order over there. Okay, I placed a sell stop. So basically the price was coming down when it went through the line where I placed my order. The the order was triggered and my order was placed automatically without me knowing that it was placed. I didn't physically go and create that trade at that. When the price went through. I created that trade days ago, waiting for the price to break out of that position. All right, so you've got the sell stop where you want the price to come down to a specific point and carry on going down. You place your order and when the price reaches that point, then your trade will activate. Now to place that trade is very simple. Okay? So on your MetaTrader 4, okay, I like to trade on my phone. Yes. I lose a bit of money by trading on my phone because we've got the VPS and the VPS has got a.

Connectivity of 11 milliseconds. So.

There it is. So, so 9.98 milliseconds, which means that it, it's 0.9 of a second for the trade to execute when you place the Trade on the VPs. Whereas if you place the trade on the phone, it takes about three to five seconds to place the trade. I'm okay with that. Okay. I just prefer to trade on my phone. It's a personal thing. So to place the trade, firstly you need to make sure that you're on the correct currency. All right? So when you close your MetaTrader 4 and you reopen it, you know, sometimes you're not on gold, okay? Sometimes it, when you click on the trade button, it automatically goes to euro, US dollar or something. All right? So you need to make sure that you're on the correct currency. To place the trades, you click on the, the trade button at the top and where it says Market execution. That means your trade is going to execute immediately. So, so you drop that down, you click on market execution, you drop this down. And here you've got your different orders. So what did I place? I placed a sell stop. I think it was. Let's go back. All right, it was a sell stop. I wanted the price to carry on going down. I wanted my, my trade to activate and, and I'd be in the trade. Now why did I do that? Obviously because the second candle opened below the 8 exponential moving average. So I'm also an emotional oak. Okay. I don't like, don't know if it's going to be the right trade or not the right trade. I followed the rules. I already had a sell. A sell trade activated I think did I.

Can'T remember if I did. Let me just check if I had one.

Let's go and have a look.

1964, 73, 77.

No, I didn't. Okay, so I wasn't 100 convinced that the price was going to come was going to come down because the banks are long. So I wanted that structure. Whoops. I wanted that structure to be a hundred percent broken. That's why I didn't place my trade on the second, when the second candle opened below. Mainly because we'd been stuck in this area since the 20th of October, basically. So for the last like almost three weeks we've been stuck here. So I wanted the structure to be broken and I placed my trade so nobody knows if it's going to go up or if it's going to go down. We just try and place it as best we can. All right, so when you're at the bottom, okay, now let's say this was the bottom of the trend and you wanted to, you were also stuck in, in a sideways channel. You'd want that channel to be broken. So you would place a buy stop at a fractal. So I place my trades at fractals. All right, so I like to choose a fractal where it looks like the, the channel's been broken. And if it activates, wonderful. And if I, if it's a winning trade, then wonderful again. Okay. And I'm making money. Okay. So hopefully the, the analysis and the prediction has about an 80 to 90% accuracy. Nobody has the crystal ball. I try and find that I've got about a 90% accuracy when I, when I call it and when I place my trades. But I also make mistakes and that's why we've got the hedge functionality. Cool. So the buy limit is a very interesting.

Strategy. So this is how you would do the buy limit. So it's to, ah, for me, for me it's about getting a better position on your trade. So let's enlarge here and let me explain to you what I'm talking about. Okay, so here, this is the first candle that opened below the 8 exponential moving average. This is the second candle that opened. But this was in the early hours of the morning. Then 9 o' clock happened and the price went north. Now this is where you would put your, your cell limit. Okay, you would put your cell limit at this point. Why? Okay, so does anybody know, does anybody want to take a stab at this? You can unmute yourself and take a stab.

Sorry, because a motorcyclist is driving past.

Me because the, the atma will give.

A nice support line where the price will gravitate to correct. It should come back 100%. That's 100% correct. Okay, so I would place, I would place my sell limit at that point. So this order over here, okay, I'd place a sell limit like this. So if you, if you're busy and you're going into a meeting, you could place your cell limit at this point over here on the chart. Okay. Round about there. That way you're getting a good, a good positional trade. So we already know that we south. This is in normal circumstances where you're not in a channel and, and you want to get maybe a better position. So you could place your trade. You wake up in the morning, you place your trade over there. Okay. And then you could place another trade at this position. When the price comes down here, you can, if you want to close this trade out at even, okay? So at zero sum. And then this trade will be in a profit. So if you feel that you've overexposed, okay, Even if you place like a 0.01 or a 0.02, you know, and it's too much risk for you, then you know, you've got your positional trade here. We know that the, for me that the second candle has opened below the 8 exponential moving average. So when it comes down here, you could trade, you could close this trade or you could leave this as a nice dollar cost averaging trade that you've opened. If it goes against you, then you'll just. For me, I would just open a hedge trade. When the second candle opens above the 8 exponential moving average, I'll just open a hedge trade and then leave it and trade out of it. Okay, that's what I would do. Does anybody have any questions?

Okay, so you've got your sell limit and you've got your buy limit, which works obviously the opposite to what your sell limit does. It's quite obvious here what it does. So your, the, the second candle is open above the 8 exponential moving average. You haven't got good position here. So you want the price to come back to, let's say the 8 exponential moving average. This is where you would put your buy limit. Okay. And then when it touches it, it'll, it'll activate. That's basically what will happen. So as it touches it, it will activate and then it'll go back up again. All right, So I hope that you understand what this is. So basically you're putting your buy limit below the price. So here's the current price. Then you want the price to go lower, the trade executes and then hopefully it'll go up again. So that's what that basically means. And the opposite is true for the sell limit. You've placed the sell limit higher than what the price is. So your price is down here. You put your sell limit over there. When the price goes goes up. When the price goes up, your trade is executed and then hopefully the price will go down. Okay, so do you guys have any questions?

Hi Alan. I would just like to know with the trend going down now, would you dollar cost average for the upside, seeing that the institutions are aiming to go higher.

So, Leon.

I don't trade against the trend. I am hedged. I've got a trade very high at 2003.

But I'm net short at the moment. So I don't like to trade against the trend, betting against the institutions. It's never worked out well for me. So when, if you do do that, you better have deep pockets and if you are going to do that. So basically you'd be trading the same as how the robot trades. And you need to be very conservative with your lot sizes so that if the price does continue to go against you, you can.

You can handle that drawdown. Try and get out of it. Yeah, yeah, yeah. So that's.

That'S where this new product is. So fantastic. I don't know if you've tried it out. It's the margin calculator, which. It's so flipping clever, Oaks. This is like genius what I've come up with. Okay, check this out. Okay, so let's say, so now we're going. Let's say you have placed a cell and at 2003. Okay, so let's say you've placed a cell at 2003. A buy at 2003, right. Hoping for it to go up. So you want to basically know, can I stomach it? Okay, so let's say I've got only sell trades.

You can't do it that way. Sorry. So, yeah, so you've got your, you've got your seller 2003. So you can put in here, what happens if the price gets to 1945? What's going to happen to my sell trades? What's my drawdown going to be when that happens? So you click on ok and it'll tell you your current drawdown is at the moment like 1%. All right. On my sell trades only. Okay. And if the price continues to go south, I will be in a net position, in a net long positive trading position of 12.59%. That's if the price went down. All right, so if I, if I'm, if I've got bars and sells open, then you can say like, what would be my drawdown? And you can see, takes a bit of time to calculate. It says there that my current drawdown buys and sells is 8%. If the price went down to.

19, whatever price I said 45, my drawdown would be 7%. So I can stomach it. So only because I've, I've got, I'm Net. I'm net. I'm net short. So we'll do it in the opposite direction to your question because I'm net short. You're saying what happens if you're net long? All right, so I'll do it at 2050. Okay. What will my account be if I'm, if I'm. If the price shoots? And as you can see, I can. My drawdown will be 12.47%. So at the, at the way I'm trading, I can handle a massive jump in the currency. Do you understand now how powerful this calculator is? So now you can sort of predict, okay, at what level I should be maybe placing a hedge trade. Where am I going to be uncomfortable? Am I going to be uncomfortable? And at 2000, am I going to be uncomfortable at 2010? Okay. When, when, when, where does it become uncomfortable? So for me, I think it's like $3,000. Okay. That's when I'm in trouble. 61% drawdown, but I would have placed the hedge long before that.

So at the moment, it is a bit of a gamble. Like, if America drops an atom bomb somewhere, we. We're going to have a problem. Okay. Like, gold's gonna go through the roof and I'll have a 61% drawdown. So theoretically, I'm. I should have, like, a hedge trade placed on my chart.

Like. Yeah.

So if I look at my net long positions, where the hell is it? Yeah, so I'm 138 lots short. Sorry, I'm 17 lots short. Okay, 17.91 lot short. So I should place a hedge trade for 17.91 lots at. On my chart, like, probably at 2003. So, as if there is an atom bomb. Okay? World War 3 does start and Jordan and Syria get involved, then I'm protected. My drawdown won't move. So I hope that that's helped you. Have I answered your question, Leon?

Yes, thank you very much.

It's a bit of a long way of answering it, but I can only tell you what I would do.

100%. No. Good advice. Thank you very much, Alan.

Okay, cool. Anybody else got any questions? Okay, cool, guys. Well, thanks very much. And I'll see you on my next zoom, which will probably be in a week's time.

Sorry, sorry.

Yes, yes, yes.

Cola.

Currently, I think. Hello. Okay, yeah, so currently, I think my position is opposite of the last caller. I actually have him.

2003.

Okay.

And it's active.

Okay, so I've also got one.

Okay, so then you're in a good position.

So where is your. Where is your cell? Where is your cell? Hedge?

Yeah, the. The edge is at.

Three. Three dots. Sorry. 1 9. 198 9.

Okay, so you're. So you're in profit, so that's great. So you'll wait for, you know what to do. You.

So that trades in profits, and you'll just wait for the price to reverse north, and then when it does, you'll close that trade. You know exactly what to do.

Okay, what was the E? Was the X EA that etched that for me properly? I asked it earlier, but I think I didn't do it. Well, so thanks to. Thanks to the.

Okay, good, good, good. Do you guys have any other questions?

All right, cool. So let's leave it there and I'll see you in a couple of. In a week or so. Thanks, guys. I hope, Martin, I hope that you understand the risk now and the difference between the two different orders, because that this conversation was meant for you. So it was about the two different orders and how much time.

One wants to spend or has to spend on their account, which was.

Alex asked that question on Trello, so I was just answering you. All right, cool, guys. Thanks very much. Chat soon. Cheers.