Discussions and Chat

[immy]

that is a fantastic result over july!
was that all on H1 of is some H1/m5 in it too?



 

Hi, 

No M5. Pure and simple Banana Signals.

We don't need to have taken all the signals. I aim to catch just 3-4 of those, that will do the trick.

My Targets are Always 5R but I move SL to BE at +2R and then I trail by 2R., so when it's at 3R move SL to +1R at 4R move it to 3R. 

It is important to protect Drawdown. e.g. You have a 6R target. You risk 1%. The market goes 5.5R in your favour and then it turns around, hits your BE. You will LOSE your account. 

cheers 

ps: for those scratching their heads (drawdown limits)

 

CORRECT: At 4R move it to 2R. Sorry. 
 

[immy]

I had some free time available to me and trading is so damn simple/easy if you know what you're doing tbh. 

(assuming you've got your psychology and shit together , ofcourse) 

Today's 2 trades, one I'm in, one I chose not to trade. EUR/USD nice signal, and steady down move. 

But GU , was giving me more vibes... I went for it (there were some news today at ) 

Just about now, I have moved SL to 1R on GU. and EU has started to fall. IF I was in EU it would be at BE and soon to be moved to 1R. 5R target is EASILY going to be hit by the end of the day
 
 

[immy]

I had some free time available to me and trading is so damn simple/easy if you know what you're doing tbh. 

(assuming you've got your psychology and shit together , ofcourse) 

Today's 2 trades, one I'm in, one I chose not to trade. EUR/USD nice signal, and steady down move. 

But GU , was giving me more vibes... I went for it (there were some news today at ) 

Just about now, I have moved SL to 1R on GU. and EU has started to fall. IF I was in EU it would be at BE and soon to be moved to 1R. 5R target is EASILY going to be hit by the end of the day
 
 

 

5R finally hit today. Had to let it run over the weekend. 

[immy]

I want to say something to you as if I am on my DEATH BED. 

There is a minimal edge on the 5 or 1-minute time frame compared to the H1, H4 or D1 time frame. GET THIS.
 The Edge is there but it is comparatively much smaller to H1. 

GET THIS ... WAIT and THINK A BIT..... WAIT.... think .... 

An edge is made of two things. 

1. The Probabilistic Advantage of the Strategy/system (The Trading EDGE based on properly backtested data)
Plus
2. The Trader's Performance (The TRADER's Edge based on individual past performance and experience) 

Both aspects combined create the edge. As you can deduct from this the trading edge will be different for everyone. Because we are, all traders who don't just use EAs or BOTS are Discretionary traders. 

The one-minute chart EDGE has a more significant proportion of the 2nd aspect. (Trader's Performance) GET THIS ... THINK

In other words, the trader's performance as a more significant proportion of the TRADING EDGE .... let's visualise it.

(there is no way to measure it but I'm just giving you an educated guess).

Success on M1/M5 
70% Traders' Performance
30% Traders Trading Strategy

Success on H1/H4/D1 
80% Trader's Strategy 
20% Trader's Performance 

GET THIS .... THINK About it for a while... 
any questions ... let me know 

ps: any system with an average of 1:5 winners does not require a skill. The only skill you need is to take the trade and follow the plan. that's it. (automate it) 
 
 

[immy]

I thought I'll give a bit more detail as to why this is true ... 

Further to my previous post. 

Let's have a look at some of the reasons why  M1 depends largely or proportionally more on the trader's performance compared to the H1 time frame over above. 

1. Volatility Changes 
2. Momentum
3. Trend changes
4. Support and Resistance Levels 

1. Volatility Changes: The smaller time frame will present you an opportunity to take advantage of volatility spikes every now and then, but it can be disrupting as well. The higher the time frame the more protected you are from a such burst of volatility spikes. If played correctly, it could lead to some great profits but often beginners will not know how to play this to their advantage. The volatility changes on the Hourly chart is quiet visible but it does not disrupt the structure of the trend too often. The m1 chart could be doing an ATR of 5 and suddenly go to 50ATR.... this huge disparity is not that common on the h1 chart and non-existant (almost) on the d1 chart. IF it does happen on the D1 char,t usually its a major event that the whole world knows about, e.g. Covid and Ukraine etc. 

2. Momentum: the momentum and how to read momentum might perhaps be everything for the day trader. Infact, your ability to read momentum is the most important skill if you're a day trader trading on the m5 or m1 chart. The momentum of a H1 chart requires a few hours to confirm compared to m1, it could build and probably even disappear within 15-20 minutes. That's what you have to wait for on m1. The momentum breakout , because if there is no breakout , there is no momentum and there can't be good trades. 

3. Trend Changes: The trend can change multiple times on the 1 minute chart, you can't really rely on one sided trend on this time frame. There are several boom and bust cycles on the m1 chart several times a day. That is not true for H1. Usually if the trend is in place yesterday, the h1 chart will follow through. THe same can't be said about m5 or m1. 

4. Support Resistance levels of the H1 and D1 charts are WAY WAY stronger and reliable. If you identify those levels and paly off these on the m1, you will find some great trades, but the levels that are only for the m1 chart are not really powerful. 

5. The spread to average profit (in pips) ratio. You end up paying a lot of spread and buffer to the market. e.g. if your average winner on M1 is 15 pips, you are giving away 3 pips within that. which is a huge percentage. Compare that to h1, your spread and buffer will still be 3 pips yet you will make average winners of 30 pips or more. 

There are many more key points... but I'll end it here... 

cheers  
 
ps: 6. Traders' Personality: This might be the BIGGEST factor. If you don't know who you are, you probably will find out soon. But don't be like myself. It took me 10 years to find out that actually my brain is NOT good for day trading. I easily get distracted, I am impulsive and yet I have spent 10 years on m1 chart. That was HARD WORK, very HARD Work. Now that I have invested, the last 18 months on figuring this out, I have realised that my life is so much better. I make a lot more money with 20 times less number of trades and STRESS has disappeared from my life. Can't believe it myself... 
 
pps: ten years, hard work, yet I was still sticking to it? that is THE Definition of Gambling/Addiction. I was ADDICTED to the dopamine/adranlise hits of the m1 chart. You won't believe this but even a losing trade gave me a little orgasm .. hehe
 

PPPs: OMG, how can I forget the MOST important factor. this is what happens when you have adhd and you don't think or plan before you write. apologies for that.

THE BIGGEST FACTOR is RISK TO REWARD RATIO: 

1:5 risk to reward trades are a RARITY on m1. On the other hand 1:5 and 1:10 trades are a COMMON, very common instance on the H1 chart. 
1:5 risk to reward is the KEY TO SUCCESS. it is the SECRET nobody told you about (though paul tudor jones told us that way back in the 1990s). And once again in Tony Robbins book, when he interviewed PTJ he said "let me give you $140,000 (fee for MBA Degree) worth of financial advice. Always make sure you trade for 1:5 risk to reward ratio". Because with that , you only need 16.6% win rate to remain above the water.... this is the SECRET. 
 
PPPPS: What will I do if I were to trade intraday again? I will trade the US30/NAS/DAX in their respective sessions, on the 5 minute chart... and yes you can catch plenty of 1:5 winners on M5 (relative to m1 but still harder, much harder than h1/h4). But I will always stay in tune with H1 and today's price momentum and direction. 
 

[immy]

I thought I'll give a bit more detail as to why this is true ... 

Further to my previous post. 

Let's have a look at some of the reasons why  M1 depends largely or proportionally more on the trader's performance compared to the H1 time frame over above. 

1. Volatility Changes 
2. Momentum
3. Trend changes
4. Support and Resistance Levels 

1. Volatility Changes: The smaller time frame will present you an opportunity to take advantage of volatility spikes every now and then, but it can be disrupting as well. The higher the time frame the more protected you are from a such burst of volatility spikes. If played correctly, it could lead to some great profits but often beginners will not know how to play this to their advantage. The volatility changes on the Hourly chart is quiet visible but it does not disrupt the structure of the trend too often. The m1 chart could be doing an ATR of 5 and suddenly go to 50ATR.... this huge disparity is not that common on the h1 chart and non-existant (almost) on the d1 chart. IF it does happen on the D1 char,t usually its a major event that the whole world knows about, e.g. Covid and Ukraine etc. 

2. Momentum: the momentum and how to read momentum might perhaps be everything for the day trader. Infact, your ability to read momentum is the most important skill if you're a day trader trading on the m5 or m1 chart. The momentum of a H1 chart requires a few hours to confirm compared to m1, it could build and probably even disappear within 15-20 minutes. That's what you have to wait for on m1. The momentum breakout , because if there is no breakout , there is no momentum and there can't be good trades. 

3. Trend Changes: The trend can change multiple times on the 1 minute chart, you can't really rely on one sided trend on this time frame. There are several boom and bust cycles on the m1 chart several times a day. That is not true for H1. Usually if the trend is in place yesterday, the h1 chart will follow through. THe same can't be said about m5 or m1. 

4. Support Resistance levels of the H1 and D1 charts are WAY WAY stronger and reliable. If you identify those levels and paly off these on the m1, you will find some great trades, but the levels that are only for the m1 chart are not really powerful. 

5. The spread to average profit (in pips) ratio. You end up paying a lot of spread and buffer to the market. e.g. if your average winner on M1 is 15 pips, you are giving away 3 pips within that. which is a huge percentage. Compare that to h1, your spread and buffer will still be 3 pips yet you will make average winners of 30 pips or more. 

There are many more key points... but I'll end it here... 

cheers  
 
ps: 6. Traders' Personality: This might be the BIGGEST factor. If you don't know who you are, you probably will find out soon. But don't be like myself. It took me 10 years to find out that actually my brain is NOT good for day trading. I easily get distracted, I am impulsive and yet I have spent 10 years on m1 chart. That was HARD WORK, very HARD Work. Now that I have invested, the last 18 months on figuring this out, I have realised that my life is so much better. I make a lot more money with 20 times less number of trades and STRESS has disappeared from my life. Can't believe it myself... 
 
pps: ten years, hard work, yet I was still sticking to it? that is THE Definition of Gambling/Addiction. I was ADDICTED to the dopamine/adranlise hits of the m1 chart. You won't believe this but even a losing trade gave me a little orgasm .. hehe
 

PPPs: OMG, how can I forget the MOST important factor. this is what happens when you have adhd and you don't think or plan before you write. apologies for that.

THE BIGGEST FACTOR is RISK TO REWARD RATIO: 

1:5 risk to reward trades are a RARITY on m1. On the other hand 1:5 and 1:10 trades are a COMMON, very common instance on the H1 chart. 
1:5 risk to reward is the KEY TO SUCCESS. it is the SECRET nobody told you about (though paul tudor jones told us that way back in the 1990s). And once again in Tony Robbins book, when he interviewed PTJ he said "let me give you $140,000 (fee for MBA Degree) worth of financial advice. Always make sure you trade for 1:5 risk to reward ratio". Because with that , you only need 16.6% win rate to remain above the water.... this is the SECRET. 
 
PPPPS: What will I do if I were to trade intraday again? I will trade the US30/NAS/DAX in their respective sessions, on the 5 minute chart... and test you can catch plenty of 1:5 winners on M5. But I will always stay in tune with H1 and today's price momentum and direction. 

 

Has anyone read this? it is very important...

[Minsk]

I have read your posts.
I can't say anything about m1 and 5 only that's it's too fast for my liking.
I like H1, and I am contemplating doing a D1 next to H1 when I start a new batch.
You can do everything/anything all day, just half an hour of trading at candle close, you can look at way more charts if you like, be choosy about which one sets up nicer.
H4 is a bit more of a hassle as I don't always be awake at candle close, and trades will stille be running. Same is for H1 but these usually have closed before bedtime.
I am a firm advocate of the bigger timeframes, profits are made easier probably on those
 

[immy]

I have read your posts.
I can't say anything about m1 and 5 only that's it's too fast for my liking.
I like H1, and I am contemplating doing a D1 next to H1 when I start a new batch.
You can do everything/anything all day, just half an hour of trading at candle close, you can look at way more charts if you like, be choosy about which one sets up nicer.
H4 is a bit more of a hassle as I don't always be awake at candle close, and trades will stille be running. Same is for H1 but these usually have closed before bedtime.
I am a firm advocate of the bigger timeframes, profits are made easier probably on those
 


 

Not the point of my posts but anyway thanks. 

I was not necessarily building a case for or against a time frame. I was trying to emphasise the importance of THE EDGE. That it's two faceted.

One person's edge on m1 might be higher than the other person's edge on h1. Because although M1 requires higher performance the trader might actually thrive better in such conditions and perform at their highest. (e.g. Emma or myself)

Meanwhile, there are other traders who have a superior EDGE for their time frame based on their trading strategy that does not require the trader's performance as the main ingredient to be profitable. 

One trader might have a fully automated algorithm (trader's performance factor =0) or they have a semi-automatic algorithm (ours) and requires 25% of the trader's performance as a success factor. etc etc. 

cheers


 

[immy]

The Simple (single-legged or Pause) Pullback 

or 

The Complex (2-legged pullback - no seeds) Pullback 

I just wanted to clarify... 

below is the GU chart of today... on m30 we saw a Clear 1-legged pause/pullback signal 

while on M15, we saw a 2 legged pullback 

(both time frames are not for me but just showing examples) 

The H1 is a nice and clean breakout ... 

 
 

[immy]

I noticed this yesterday. would have taken m15 if my EU would not have been running at the same time. Thanks for sharing this.
 

 

No, you would NOT have because it is NOT part of your trading plan.