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:
Many traders will use ADX readings above 25 to suggest that the trend is strong enough for trend-trading strategies. Conversely, when ADX is below 25, many will avoid trend-trading strategies. 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 ... When trading, it can be helpful to gauge the strength of a trend, regardless of its direction. And when it comes to evaluating the strength of a trend, the Average Directional Index is a popular technical indicator for this purpose.. The Average Directional Index, or ADX for short, is another example of an oscillator.. ADX fluctuates from 0 to 100, with readings below 20 indicating 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 ... Forex trading involves risk. Losses can exceed deposits. Losses can exceed deposits. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Beside the ADX crossover strategy which is based on the crosses of +DI and -DI, traders can also use the ADX indicator to supplement other trading strategies. For example, you might want to use a trend-following strategy when ADX shows a strong trend (value above 25), or a trading strategy that is more suited for ranging markets in times when the ADX shows an absence of trends (value below 25 ... Many traders using only one level for ADX reading, when ADX is greater than 20 or 25, the trend is strong. Probably it’s not enough. We like to use more levels. We create four levels: In this way, it is easier to read the ADX and the actual trend. How to use ADX in forex. ADX Indicator was a reliable tool to trade the Forex Market. In the ... ADX Trading Indicator – Default smoothing period of 14. Note that the ADX itself does not indicate the direction of the trend, it simply tells us that the market is trending, either strong or weak.. ADX line is below the 25 level and we would consider trading failure tests or support/resistance rejections. Note** The above was an example of a SELL trade using the ADX indicator trading rules. Use the same rules but in reverse, for a BUY trade. In the figure below you can see an actual BUY trade example. Take a look: Conclusion - ADX Indicator. The best ADX strategy gives us very useful information because a lot of the time, we as traders don’t want to get into something that’s moving nowhere ...
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How to use the ADX idicator. This feature is not available right now. Please try again later. All about Trading in Forex and Binary Option Marked. HOW TO TRADE WITH ADX INDICATOR ----- Disclaimer: Videos and other ma... HOW TO TRADE WITH ADX INDICATOR ... How to Use MT4 ADX Indicator in Forex Trading? - Duration: 5:15. ArrowPips Forex Signals 819 views. 5:15. Learn Forex - Average True Range - ATR - Duration: 2:51. ... 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 ... Forex Trading the ADX Indicator: How to Avoid False Signals and Trade the Profitable Ones. http://www.topdogtrading.net/youtube-organic-forex Sometimes the s... 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...