Talisman's Blog (47)

Creating boudaries where there are none

An important aspect of successful trading is the concept of creating boundaries and rules to help present the market to yourself.  There is no exact correct way to do this but I will share my general view of this using a current EY chart to demonstrate.

First off , define a trend, theres many ways to do this,…

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Added by talisman on March 9, 2014 at 12:55am — 3 Comments

Not all lines matter

Its important in trading to figure out what lines actually matter when trying to figure out how to pull a little money out of this market .  While everyone can make their case for whatever they believe, one must first figure out in general what types of time frames they would like to work with as a starting…

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Added by talisman on March 1, 2014 at 12:56am — 3 Comments

Fishing rods for sale

Rubber boots tip of the day-a good entry is determined by its exit. So place your educational focus on exiting, whether that be exits with losses or exits with profits.  Try to embrace the idea that one of the main things to understand on the road to profits is to understand what you control.  Once you are in a trade the only thing you control is when you get out.  If over a series of trades you make more than you lose and the drawdowns don't pysch u out your entries are good.  Doesn't…

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Added by talisman on February 9, 2014 at 7:11pm — 1 Comment

Don't be just another dart throwing monkey

There is a very good article in the education section of fxstreet that is worth reading . it is " How to set profit targets and control losses ". Within it it points out things like trading is " a series of compromises ", and demonstrates how open ended targets with an understanding of maximum adverse excursion is more profitable than targets.  It highlights the importance of consistancy , and eludes to this fact by the very nature of the content.

It neglects to address the importance…

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Added by talisman on February 1, 2014 at 5:38pm — No Comments

Using dual time frames as part of an entry strategy

Using two time frames can be an important part of a traders edge.  My approach is to determine a possible emerging trend in a…

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Added by talisman on January 16, 2014 at 2:47am — No Comments

Simple Breakout Strategy

Here is an example of a simple breakout strategy. 

the idea is to trade the first breach of a new HH or LL . when I trade breakouts I set stops initially at swing low/high, and follow up as new highs /lows are made. this tends to result in a fair number of breakeven trades and every once in a while you will actually catch a trend in its infancy and grab 6 to 10 or even more RR. you must be prepared to give a few pips back because this method is most effective with loose stops.  a…

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Added by talisman on November 22, 2013 at 3:32am — 26 Comments

Patience Pays

I thought I would share a recent 3 trades in ea that illustrate the value of patience.  ea had started an uptrend imo on the timeframe I was monitoring.  my guidelines dictate I enter only if the market is moving decisively in my direction ( in this case long ).  the pair most have 2 either 2 candle closes where the close is higher than the open and then enter on a break of the second candle, or a the most recent swing must be broken.  in the example I was hoping for a slightly better entry…

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Added by talisman on October 29, 2013 at 2:41am — 4 Comments

Pull back entry trade example

Eu has pulled back within a mildly bullish market in my opinion.  For me as a rule I like to see some movement in the desired trade direction after a 2 stage pullback. the second stage is entered when there is a break of the previous candle in the desired direction.  the pullback is negated and a trend change is suspected if the pullback goes beyond the most recent consolidation and/or  S/R  area.

there is no target for my trades , and I like to keep stop movements wide with the hope…

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Added by talisman on August 13, 2013 at 8:37pm — 16 Comments

Happy Canada Day !

I love my country ! Cant beat a small town celebration, from the fireworks , the local folks performing, the church handing out homemade donuts, this land is made for you and me . 

hope this day finds everyone happy and healthy.…

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Added by talisman on July 1, 2013 at 5:58am — 3 Comments

EUR/USD long

EU has made a large correction, as it breaks up after the second leg down it triggers an entry signal for me.  I thought it was a nice example of how two legs down can look quite different from trade to trade, with this one being quite long.

we ll watch and see how it goes.…

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Added by talisman on June 24, 2013 at 7:31pm — 24 Comments

EUR/YEN short

I see the pair at the end of a 2 leg pullback, the second leg being right at the same height as the first leg.  overall the pair is generally bearish, and also looks bearish on daily but currently pulling back.  the last 4 daily bars are inside bars within a large bearish candle.  something interesting to note is that from the peak on may 22 to the low on jun 16 the number of bars is about 100, with bars closing higher than they opened about equal to the amount of bars closing lower than…

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Added by talisman on June 19, 2013 at 3:40am — 6 Comments

The Devil is in the Details ( always )

Late this week i made a trading error that cost me a few pips that i thought i would share.  I had an aus/usd short entry that met all my criteria.  A nice 2 stage pullback within a primarily down trend, as well a down trend on the higher timeframe. To add confidence a swing high coincided very closely with a previous swing high.  i placed my entry below the low of the most recent bar, and the stop at the high of the same bar. The trade triggerred with a bearish engulfing candle. All good…

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Added by talisman on June 14, 2013 at 9:56pm — 1 Comment

USD/CDN simple two legged pullback entry with trend

A nice example of a simple 2 legged pull back entry with trend, and some explanation of the thought process.

to determine trend, simply need 2 or more HHs, after which you look for the first 2 legged reversal.  the 2 legged reversal should not extend beyond the most recent HL, if it does it negates this particular set up and may even indicate a trend reversal.  if you look at the previous reversal from bear to bull you can see the 2 legged pullback would not have been traded, and did…

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Added by talisman on May 31, 2013 at 5:55pm — 28 Comments

RR, OPPORTUNITY, EXPECTANCY & THE GRADE 3 PAGE 1 DEFINITION OF HOW THEY INTER-RELATE

a couple quick definitions to get the kick the cat here

rr=risk/reward-the amount at risk compared as a ratio to the amount you make

opportunity-the amount of set ups a method gives you to enter the market in a period of time

expectancy- the amount of pips( or whatever you want but pips is best ) you excpect to gain(lose) employing a method per pip risked

in order to profit in the long run you must have a positive expectancy, this is a must.  the amount of…

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Added by talisman on May 23, 2013 at 1:22am — 3 Comments

drawdown tolerance

in the vein of blog posts venturing away from predictions, analysis, and trade entries, a trend i m quite pleased to see, i thought i would throw out the topic of drawdown tolerance for discussion. 

it is important to understand ones draw down tolerance , and taylor a plan that does not exceed these limits. 

early on in my forex adventure ( about 5 years ago ) i wanted to get my feet wet with live trading so i started trading a very simple strategy using atr.  in 4 months i…

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Added by talisman on April 17, 2013 at 1:26am — 6 Comments

Plain Jane Vanilla Trading ( Same ol' same ol' )

A number of good people mentioned gu buys around this level without giving specific stops and entries.  since it falls within my criteria for a buy as well i ll take it a step further and illustrate the trade.  this trade could easily ( as always ) still turn into a loss.  i like to try to post them fairly quickly after entering so its obvious i m not cherry picking.  lets see what happens with this very smple s/r trade…

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Added by talisman on April 9, 2013 at 1:12am — 7 Comments

More plain jane vanilla trading

this post is intended for new traders who want a simple approach they can expand on and make thier as time goes on. it is not intended to to give triple digit monthly returns.  just because you re not wayne gretzky doesnt mean you cant play hockey.

dont try to predict, just roll with whatever is happening.  as you become comfortable with seeing the signs that a market may bounce off a level start to experiment with managing the process as it moves in your favor.

not sure where…

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Added by talisman on April 3, 2013 at 11:56pm — 4 Comments

take your piece out of the middle

i thought i'd throw this example of trading pullbacks with the trend ( as i see it ) . once i determine something is trending i look for a pulback that is no less than 1/3 of the last move and know more than 100 percent of the last move.  once it passes the 1/3 mark i start to look for a sign that it will continue on in the direction it was going. a signal can be something like a pin bar or two bars in a row closing higher ( lower ) .  the target area is usually quite conservative. i usually…

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Added by talisman on March 18, 2013 at 8:21pm — 1 Comment

Be wary of Snake Oil

Take all information with a grain of salt.  If someone over complicates, its snake oil, if someone claims no errors, its snake oil,  if someone can only show you results after the fact, its snake oil, if someone connects results with magical numbers, its snake oil, if someone claims unrealistic results, its snake oil , if someone cant explain themselves , its snake oil

snake oil is everywhere, although this is the best site ive come across for forex dialogue make no mistake its here…

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Added by talisman on November 25, 2012 at 2:51am — 4 Comments

AUS?USD 15 min swing trade ( short )

Enter on break of LL after break down from consolidation.  target at s/r on 4 hr.  trail stops at each LH or areas of consolidation after breaks down. Very simple method if used with proper money management will give good results.…

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Added by talisman on June 12, 2012 at 2:28am — 4 Comments

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