Trade Execution
The Key To Profit
Content has been updated
- Choosing Pairs and Time Frames
- Finding Setups
- Alerts
- Different Ways to Enter a Trade
- Order types
- Building a position
- Scaling out
- Dealing with draw down
Choosing Pairs and Time Frames
CADJPY, EURAUD, EURCAD, EURJPY, EURNZD, GBPAUD, GBPCAD, GBPJPY, USDJPY, GBPNZD(with caution)
These can successfully be traded from 1 hour Contraction.
The rest move slower and are probably more suitable for multi-day play from 4 hour Contraction.
If the pair forms overlapping bars or the range is too wide we have to look at lower time frames.
In the case of GBPNZD - all the way down to 1 minute.
Finding Setups
Start looking for Setups after 10p.m. UTC when the spread returns to normal. Large volume does not always equate to large moves and sufficiently large moves can happen in any session.
Forex Market Hours - Investopedia
When scanning the charts for setup, the principle is:
- If there is a move we are waiting for a range
- If there is a range - identify structure
- If structure is clear - time an entry
Start with 1 hour chart - if there is a range try to identify the structure (narrowest part, boundaries, middle line)
If the range on 1 hour is not long enough, move to 30 minutes and do the same.
On 5 and 15 minute charts you should have a cloud of contractions at this point and clearly visible structure.
The charts that don't have a setup need only be checked once every 2-4 hours - sort them at the end of MT4.
On the charts that have formed a range you can place alerts to start timing entries - sort them next to the "no setup" charts.
Only few charts that have positions or are awaiting timing an entry should be monitored more often - sort those first.
Alerts
Once the structure of the Contraction has been identified we can place Stop Entry orders or set alerts if we need to double check the price action.
I find Trendline Alert indicator useful. Apart from the horizontal price levels it allows alerts to be set on an angle.
You can get it here:
PriceAlert_Ver_1-2.mq4
Different Ways to Enter a Trade
We are always trying to build a position on confirmation that price is moving in the desired directioin.
Here are some setups that allow us to enter trades on confirmation.
- Previous bar High or Low
This is an aggressive way to enter a trade and is usually best after a long reversal
- ZigZag indicator tips - High for Longs, Lows for Shorts
- Major and Minor Trendlines - Respect or Break
