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New Post has been published on TRADE MASTER TEAM

New Post has been published on https://trademasterteam.com/forex-trading/forex-trading-the-most-important-rule-of-algo-trading/24690

Forex Trading - The Most Important Rule of Algo Trading

hey guys Boris often from BK great to be with you another super week of trading at BK this week we're gonna have a very short but I think a really interesting video about the critical most important rule of algorithmic trading which in my opinion is actually knowing when to abandon your algo as an example I'm going to use my three strikes and you're in trade which is the algorithm that we've all been trading lately that a lot of people have had tremendous amount of success with we're basically which we're trying to fade three candles on a Bollinger Band and go along on the short side go short and along side and as you can see in this particular euro dollar example we have two positive traits setting up setting up for ourselves on a five-minute chart we have this trade over here we have this trade over here and when you sort of think about what this algo does is it sells mean reversion it basically sells volatility it buys bottoms sells tops and in a range bound market the one that you've seen over here it's going to work very well but but and this is a very critical but whenever you have any type of a long term trending market a market something with something like this we have sort of a low vol start and an acceleration to the downside what's going to happen is you can eat continuously chopped out of your algorithm all the way down and you're going to be buying bottoms and never having a chance to to have a bounce-back so in order to not give back the profits that you've earned all throughout the range session you really need to understand when to put a kill switch into your algorithm there is no algorithm that works all the time there is no algorithm that can stay in the market continuously and make you money it's extraordinary important to figure out the weak point of your algorithm and to create a kill switch for it in order to stop the madness what it happens so in this pretty good case my rule of thumb is basically ya Street three strikes and I'm in but two stops and I'm out so generally what I like to do is if I'm getting stopped out twice on the same leg of the move that means we have a continuation leg on the same say move I will simply stop the I'll go until until some change of trend happens so definition of change of trend can be anything you want it could be a tagger 220 it could be a move all the way up to the opposite Bollinger Band but whatever you want to define yourself as a change of trend that is the only time when I would restart the algo because then price action has changed the way from trend to perhaps new range bound conditions it's extremely important in this particular case I gave you a very modest example what can happen but there are plenty of times where you could have literally continuity of trend for sometimes two or three hours and you will mercilessly get chopped up in a mean reversion algorithm and give back everything and more so of your profits if you don't know how to kill it so that's the single most important rule about low trading I wish you the best of luck this is Boris cosmic over and out next week probably live skating at the DK chatroom and more trades out of D case have come join us wish you the best of luck and the best of trading over and out

[trademasterteam]

New Post has been published on TRADE MASTER TEAM

New Post has been published on https://trademasterteam.com/forex-trading/forex-trading-high-probability-profit-in-00-trade-time-not-price/17615

Forex Trading - High Probability Profit in 00 - Trade Time Not Price

hey guys borscht last word from bkt alright let's take a look at the ooo set up in a little bit more refined form because what I want to show you today is that the single most important thing about trading the OO set up is actually the time frame not the price now just to review for everybody how does it that we trade the set up basically the idea here is that whatever price approaches the round number figure we want to be join the flow so the typical standard oo setup that I've shown on the on the web many times in YouTube is when price goes to 20 on either side of the handle so for example in this case this is a pound dollar chart and it's moving down and it breaks the twenties own we're gonna think that it's gonna move all the way down to the ozone eventually and go short and the standard trade is basically you go short with a twenty target and a twenty stop now in this particular variation that I want to show you we're gonna make it a little more high probability instead of making a twenty stop twenty target what I typically like to trade is actually ten target twenty stop the reason why is because I want to make us high probability trade as possible and there is no free lunch in trading basically you can have two choices you can either have high probability with negative risk reward or you can have high profit with positive risk reward and that means you're not gonna have nearly as much high probability so in this pretty good case what I like to do is is just trade the meat of the trade which is go from twenty to ten or from nine from eighty to ninety if we were going to the upside but the single most important thing that you want to know about trading the oo setup is actually a time frame let's take a look at the pound olive first and then I'll take a look at the euro dollar in the pound dollar here the critical time frame with this setup works best is basically from around to in this case you can you can maybe make an exception to about one o'clock in the morning but bit generally is from about 2:00 a.m. or let's say even 1 a.m. till about New York time this is all East Coast time so basically right around here maybe even I would say even 11 o'clock in New York time and the reason why those hours are the prime hours of trade is because that's when London and New York intersect that's when you have the most liquidity and that's when price basically takes enormous amount of momentum and vortex remember this whole setup is based on the idea of huge momentum sweeping towards the oh-oh number as news drives it or some other factor drives it towards that direction so if you just limit yourself basically to the start of the London session and to the end of the mid day New York session that's when you're going to have the highest probabilities of success so as we move on this is a five-day chart 10-minute chart you'll see as we move to on during the day you have lots and lots of action this of course Asia going going going very very flat and now again comes London now comes London and it's around 2 o'clock in the in the after in the morning and this is where we begin to trade so here in this particular case we're gonna get we're gonna take a 196 80 right here the stop would be 196 660 will get along here here you get a little bit retraced and notice this is why you need to give yourself 20 points a retrace because sometimes price is just not going to go in your direction right away as momentum builds in early morning remember what's happening is that dealers in London aren't getting orders orders orders and that's where the order flow starts to move towards your direction and here it hits again back up to +10 and maybe even plus 20 if you wanted to hold it all the way down so this is the pound there are lots more examples as we go through here's the New York session again we break the 80 in the New York session and we could make another run back up to the 9700 on the on the move so those are the two key times when you really want to be trading everything else is just going to be lots of fake outs and lots of very weak movements because you don't have directionality let's take a look at as we go forward in our momentum here again we're basically you know this is the 80 this is the 80 chart in this case we're looking for a move back up through the 80 move here it moves back up through 80 and goes all the way up to 9700 on the move up as we as we get the news this is the two o'clock to the four o'clock time window the real meat of the trade when we get news and a vortex of information going our way and here ironically enough by the way a lot of the stuff will get reversed in New York because news of course goes the other way this is the FOMC meeting so that's why there's still the exception the only exception to this is when you have a FOMC meeting at 2:00 o'clock in the afternoon you're gonna get some very meaningful moves up and down taking a look at the Euro I just want to show you how this also works on the Euro so this is the FOMC meeting but let's just go back to the Europe in the early session beginning of the week the euro was actually very very weak this is this is Asia session Sunday night but look again Europe opens up and we have a Down move and again you would look at notice of time you have about three four o'clock in the morning New York time which is Europe opening up breaks it 20 and it goes all the way up to zero the rest of the time it just sits there consolidates this is where you have the highest probability setups for the meet of the trade so bottom line is when you're trading oo you want to trade it between 1:00 a.m. to about 11:00 a.m. New York time you want to look for those very very high probability setups when things are going to be moving your way because of news and try to target only 10 out of 20 points for the highest probability possible he trades I wish you'd have best of luck I hope this was fun and I hope you guys find it profitable this is Boris that's work for B King