Part    submitted by whatthefx to Forex [link] [comments]
So in the first week of this an account initially funded with $10,000 got to around $40,000 / $45,000, but it was wild. The drawdown swings were large. Equity swings were what I would describe as problematic. My broker agreed. I got a call from them and it went a bit like this;
"Hi, Whatthefx (yes, me and the broker are on first name terms). One of your new accounts has done a lot volume this week. I was wondering if you're going to continue to trade so aggressively? Can we expect the same volume this week?"
I replied; "Of course not. I started last week with $10,000 and now there is $40,000. It would be fair to assume I will trade four times as much volume this week".
They advised me if I did this, in the near future we'd be having a discussion about re-evaluating how much leverage the broker would offer me. I told them I could not believe they'd speak to me like this after all we'd been through. "You've changed, man" I ruefully muttered into the phone. He told me risk compliance was getting edgy, and they felt the best solution would be to reduce my leverage. I told them to a hammer everything looks like a nail. They told me this hammer was about to come down.
Long story short, compromises has to be made.
I decided to split accounts and reduce risk acceptance on both of them (dramatically on the larger of the two accounts). I started an account with $25,000 running a very similar but slightly watered down version of the initial strategy. I then started another account with $50,000 and used this to trade against people who consistently bet against trending moves.
Vrs scalpers results:
As a recovered "Trend doubter", I understand the mindset of people who fade the trend too aggressively. There is a fine line between being an effective contrarian and just being dumb enough to think you're smarter than the entire market. When you're the latter, you come to learn the infallible truth in the saying "A fool and his money are soon separated".
I take a bit of time to snoop on those I am reverse copying from. Through some statistical analysis and good old fashioned reading through their feeds on platforms they promote themselves I seek out the ones who have die hard doubt on the existence of strong trends and also with some ingrained belief that the fib levels are irrelevant.
I find the ones most die hard against these things. It's easier to find committed doubters of fibs than it is of trends. I find those who are the most extreme on this bell curve. Some of them are practically evangelical about how sceptical they are of fibs. I take these people and pay particular attention to their trades. Most specifically I run analysis to see how the trades they make at important fib levels perform. I have a few I look at but the most important one for basic trend following is the 61.8% fib (explained in previous post).
I find an extremely high correlation between the people who know so much better than us who like to use fibs and them consistently making losing trades at important fib levels.
This is all I need to feel confident sticking some money on this. I make some filters to allow me to copy their mistakes and dodge the times they are more likely to be correct. I add some other ways to identify strong trends. I include some aspects of ATR, ADX and MAs. I also do some lot sizes rules to prevent them from martingaling against me. I do not want to let them accumulate larger and larger positions against me on the slight breakouts of the 61.8% level, because there is a high chance of there being a retest of that level. If they close all their positions there, this will give me a net loss.
Vrs trend faders results:
How To Use ADX For Breakout Trades. Heading back to the Bitcoin price chart, I used a vertical line to show where ADX has fallen below the trending cutoff point. During the scan, we find the indicator showing a weak or non existent trend (range conditions) and in doing so, we look for a consolidation structure for breakout trading. I have used dashed green lines to mark off the high and low of ... ADX Strategy – How to Use the ADX in Forex Trading. This is the second article in our ADX series. If you haven’t already we suggest that your check out the first article about the ADX Indicator. In that article, we covered the history of the “Average Directional Movement Index”, or “ADX”, indicator, how it is calculated, and how it looks on a chart. The ADX indicator will typically ... How to Use ADX to Identify Forex Trends. 2013-08-29 02:53:00 Rob Pasche, Forex Trading Instructor. Share: Article Summary: The Average Directional Index (ADX) rates how much a currency pair is ... To use the ADX indicator in the Forex Market, you have to develop a strategy that uses the ADX to filter the trend. ADX – TRADER JOHN TUTORIAL FOR BEGINNERS. The Directional Movement (DMI), conceived by the famous technical analyst Welles Wilder, is an indicator that allows you to identify the first direction followed by prices. The indicator, which is usually calculated over 14 periods ... In order to reduce risk and increase the potential profit, most traders utilize the strategy of trading in the direction of strong trends. One of the forex indicators that allow traders to determine the price trend is the Average Directional Index or ADX.Many even consider it to be the most useful trend strength indicator, and for good reason too.In this guide, we examine ADX, its history ... Traders use the index to determine if a trend will extend or gradually lose its strength, valuable information when setting entry and exit levels in the forex market. The ADX can also be classified as an “oscillator” since the various curves produced fluctuate between values of zero and 100. The “signal” line of the indicator rarely goes above 60, but values below 20 indicate a weak ... The ADX Forex Trading Strategy is based on the forex indicator called the Average Directional Index (ADX). This forex trading strategy requires the following:. Timeframes: use 15mins and above Currency Pair: Any Indcators: ADX & 14 EMA Here’s what you should know about the Average Directional Index Indicator: The ADX indicator is used to measures the strength of a trend and this can be ...
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How to use the ADX idicator. This feature is not available right now. Please try again later. how to best ADX And Stochastics forex trading strategies 2018 Welcome Friends to 's Biggest Technical Analysis Youtube Channel Our Dream is to make you an Expert in Trading any Market, be it ... (ADX) Indicator + Moving Average Forex Trading StrategyTwo EMA + ADXBest Strategy What is the ADX indicator? The Average Directional Index (ADX) Indicator,... All about Trading in Forex and Binary Option Marked. HOW TO TRADE WITH ADX INDICATOR ----- Disclaimer: Videos and other ma... The ADX (average directional index) is an indicator that shows you how strong a trend is. The ADX gives you a reading that generally ranges between 0 and 50. The higher the reading, the stronger ... Learn what is ADX and how to use this indicator in your trading. For more forex education check https://www.youtube.com/ukspreadbetting Follow Us On Twitter:... Watch our video to learn how to correctly analyze ADX signals, how to analyze the market by taking into account the Average Directional Movement (ADX) indica...