Re-entered EURUSD long @ 1.3000

15.01 bst

This is really maddening. EURUSD has jumped right back from its lows a few minutes ago, and as usual I got out almost exactly at the low!

Anyway, I have re-entered the long at 1.3000, with a stop below 1.2970.

I really need to figure out the art of placing stops. About 80% of the time the market is simply hunting for stops!

Apart from the loss in EURUSD, all my other trades are doing well now!

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10 thoughts on “Re-entered EURUSD long @ 1.3000

  1. Hans

    lol, you are not alone, took half of at 2956!!! argh (futures), just covered at 13102 though from my original entry at 2984, so not complaining about this move. But stops can be hard.

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  2. Hans

    yeh, well, the trick is pretty much summed up in your weekly analysis this sunday. Where leverage/exposure is the main thread in my career as a trader. Never shall I over leverage again. And that basically does it for me.

    I like your style with regards to swinging it, but I would put to you that after having a trade 50-60 pips in your direction, letting go against you for the same amount should never be required. you can always protect your position by taking of half, and letting the other half run. Or moving stops on half up a bit to get the same result in case of a larger (too large) retracement.

    If a swing is in place and the entry is right, the level should just hold. no more than 20 pips are required to find out. At least thats my approach. Getting above 200 pips though is a lot harder for me. So there is some midle ground here, as always

    Just dont forget to protect profit, but thats coming from someone who mm.. well … mm … too often feels he has not taken enough.

    cheers

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    1. ZenFXTrader

      Wise words, Hans. By over-leverage I assume you mean ‘bigger order size’ as I describe it. Yes, trade sizing seems to be a key skill I need to develop. That is closely tied to the stop level chosen.
      Re your suggestion that we should never let a 50-60 pip profit turn into a similar loss, here’s the dilemma: Often, the price needs to move 50-70 pips before a swing trader gets confirmation of a top/bottom and a change of direction. And then once a trade is entered, the price often tests that high/low again(but not predictably often enough). So in my trades it happens often that the trade moves against me for upto 50-70 pips (or more in the case of 100 pip hourly ranges in EURJPY). If I survive through this, and the pair moves back in the profitable direction, the profits tend to be big. I have to allow the trade that kind of space to capture the larger profit moves.

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  3. Hans

    About that answer. How about entering half-size at the confirmation, and have an add at the support. If it works from confirmation, you’re good on half the size, If it works from support, your good for normal size, and if it fails you are only down for half a confirmation and half a support, instead of 1 full confirmation entry.

    Unless your are playing pure break-out, then you can enter full right away, but then the stop should be really small, cause break-out is break-out, and is not supposed to retrace too much.

    Writing this down, makes it sound all so easy πŸ˜‰

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    1. ZenFXTrader

      Hans, thanks for the suggestion – that is the recommended way to trade such things. The dilemma is – we don’t know how often and by how much will the price retrace from the TL or S/R break. I researched this in depth a few years ago, and decided to use the only levels that we can be sure of with > 80% probability. And that is – i) when my signal is generated (TL or S/R break) and ii) When that trade is invalidated by a break of stop loss level. The in-between levels don’t have any level of consistency that can be traded. Sometimes the price retraces 50% of the last candle, sometimes 50% of the rise/fall from the recent low/high. In all cases it either continues up/down, or breaks through prior low/high (which is my SL). So I cannot use the half-half strategy. As you say, it is easy to write it down, but when the candle is actually moving, how do you know when to enter the other half?
      All the best!

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  4. Hans

    I dont know your system off course, but the other half is entered at support, which is, I would presume, around 20-25 pips above your stop.

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    1. ZenFXTrader

      Hans, what do you do if the price only goes to, say, 20-30 pips ABOVE support? Do we enter the second half? Or sometimes the price moves up for 1-2 candles, and then tests support. I have looked at thousands of charts going back 10+ years to find patterns of high probability. In the half-half strategy the probability is not high enough to trade.

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  5. Hans

    I am happy with my trade half size, if it does not come back to get me in at support on the second half. Then again, I tend to enter at support, counter trend ou may say, so my stops are mostly nowhere near 60 or 100 pips, more in the range of 16 to 30.

    Also when I do trade half-half, my exit on the second half is 1 – 1.5 to 1 – 2 ratio, getting me out quick, so half is my usual ride anyways.

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    1. ZenFXTrader

      Good on you Hans. I actually worked out the profitability of the half-half strategy v/s all-in or stopped out strategy, and the second one is more profitable. But each one trades according to their preference. All the best.

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