[walterw]

So lets first talk about _Exits ... that is from a succesfull trade...

I am more of a scalper minded... so I like to lock in some good profits when they are there...

Now taking an exit I am convinced its directly related to momentum conditions and here comes into play the traders discretionary reading of momentum and his experience in sensing this..

The first basic exit criteria is when the bar gets inside the rainbow crossing the black line... lets call that the "scalper exit"... its the most sensitive and fastest exit, normally leaving a lot of money on the table, but it can be usefull when we sense there is not much momentum in the market..




The second basic criteria is more of the "Traders Exit" ... in this case is the inverse action to our entry criteria as the black line crosses back the thick darkgreen line...



in this case we stay inside much more, we have the expectative of having a big move... if we can sense momentum on the market, this is the best shot...

So both exits have to be discretionally used... depending on momentum conditions, if small momentum is perceived "scalper exit" its the most recomended, if strong momentum conditions are perceived it would be wise to use "traders exits"...

I know we can develop some intermediate alternatives... would be nice to hear what your creativity tells you on this manner...

So with that sayed we have two exit criterias to be used according to momentum conditions... remember that the rainbow on the 5 min chart gives us very clear hints on momentum as previously discussed... cheers Walter.

[walterw]

And here goes a video on exits... there is also some small info about a paralel research I am doing... cheers Walter.

[Don4]

Excellent, walter!!!!

[dupaski]

Walter,

Very informative thread, thank you for sharing. I was wondering if you ever got any clarification on the use of the ADX in the original formula by Bemac?

BTW I'm partial to mate

-Derek

[walterw]

Originally Posted by Don4 »

Excellent, walter!!!!

Glad to hear that Don ¡¡

Originally Posted by dupaski »

Walter,

Very informative thread, thank you for sharing. I was wondering if you ever got any clarification on the use of the ADX in the original formula by Bemac?

BTW I'm partial to mate

-Derek

Hi Derek, glad you like this thread... about Bemac`s formula I had open this thread on TSD http://www.forex-tsd.com/indicators-...l-vma-mt4.html asking for help coding into MT4 ... I hope some charitable coder can help us... so we can have it on MT4 wich is a much more friendly platform... in that thread you can see Bemac`s formula being posted... so far here Blu-Ray has been able to code it into TS... so I think he is more enlighted into how the formula really works...
cheers Walter.

[walterw]

So now I have to talk about _Stops ... and with that definition we basicly would had covered the entire presentation of the classic structure of a trend trade...

Stops for me at least is the absence of the original argument for wich you opened a trade... in simple terms, you opened a trade because you had an argument, that argument disapeared, why should I still be on the trade ?

Staying because of hope, tolerance, balls... bla bla bla its not really intelligent if actually your argument clean disapeared...

If you get disapointed maybe its time to mature and understand that you have to love them, show them your apreciation and greatfullnes to stops, as they are responsable for your survival on this bussiness without them chaos and defeat is present... stops are our friends, and friends some times can give you some headaches... still your friends...

So let me give you an example of a stop criteria that for me makes sense... if crossing the black line to the darkgreen was my entry... the oposite cross its telling me that things just did not work.. so get out.

On this example I probably would not had taken this trade since I dont like the potential "exhaustion" as I already explained on previous post.. but lets say for example I went long on our Timing entry criteria...



well the oposite cross would tell us that the argument for wich I took the trade its not any more there, there are no more reasons to stay in the trade and your friend mr Stop keeps your equity protected from a real serious drawdown in the case you become stupid enough to stay inside...

So that would be in this case my stop definition... cheers Walter.

[walterw]

And a short video on Stops... cheers Walter.

[walterw]

At this point of the thread we had covered this definitions from a "Trend Trade " :

To open position :

_Trend Definition

_Pullback Definition (dips and rallys)

_Timing Entry Definition

To Close Position :

_Stop Definition

_Exit Definition


We explained the simplicity and optimization we had been able to get thanks too the VMA rainbow... wich I consider it a very powerfull indicator...

Now this "trend trades" have some tricks in terms of selecting the ones with the most potential success... you DONT need to trade all the setups you see... its better to be selective and trade the best ones, the ones that offer more potential of success...

For example let me make you reason on how you can work so little every week (being selective ) and have a very decent lifestyle trading forex... if you make (like my target) $20 per contract/week with 5000 contracts (low volume on forex) you can make 400k per month... not bad for any normal lifestyle... so why bothering trying to trade everything ? its much more smart to focus on the most classic trades... I call them the "surefoot" trades...

on the next post I start talking about the "surefoot" trend trades... cheers Walter.


PD: any conventional "Tokyo Gang" member should be able to make without any stress this monthly figures
anyway if you manage to make 5 digits you will be accepted jejeje