隧道交易方法

This filter is so profitable, we increase the size of our trading position when we see it develop and then happen.

When you go back and check it out, you will notice many times how it just misses a move by a few hours. It is an extremely profitable filter.

We also define "same price" as being within 5 pips or so of being equal. Sometimes it turns out the signal is exact, but I dont think you have to split hairs on this. Within 5 pips is good enough for us.

2.)

We do not initiate new currency trading positions based on tunnel trading during the Asian time-frame. Anything between 5pm NY and Midnight NY is ignored for entry of new positions. Positions that are on are monitored as normal, i.e., everything else is the same. We will take profits if fib levels are hit. If we miss a move, then we miss a move. A missed move is just an opportunity cost. Chop-chop in Asia will eventually cost you more money than it is worth.

3.)

News days that can have a significant affect on prices are ignored. Thats right, we skip them for entry of new positions. Currently there is only 1 day per month which qualifies, and that is US Non-Farm Payrolls [NFP] which comes at 8:30 am NY time the first Friday of each month. Positions that are on are monitored as normal.

4.)

When the tunnel is very narrow [most of the time], do not just put stop on the other side of tunnel. If you do you get whipsawed to death. Use the hourly charts and the most recent hours of support and res. to make the call.

If you are a newbie to trading, you will find this to be the most troublesome filter. If you are not familiar with trendlines, triangles, flags, pennants, and support and res. levels, then go get the eduation and come back. Simple but necessary advice.

I dont mean to infer that just because you know this technical stuff its going to be a walk in the park. Its not. Lets make one thing perfectly clear. EVERY model has its vulnerable spot that seem to increase losses. For tunnel trading, this is one of the scenarios. Putting in the right stop is an art, not a science.

5.)

We look for clean moves [1 bar] through the tunnel. This means your into profits almost from the get-go. You will not always get the clean moves. The longer the market stays in the tunnel chopping around, the higher the probability our entry decision will be made on a break of support or res. instead of the tunnel boundaries.

6.)

We do not trade minor [contra-major] trend signals in a strong up or down market price trend. If the GBP/USD is in a strong price uptrend, we will not initiate new short positions on a break of the lower tunnel boundary. Why? Because the probability of success in getting past 55 from the ema is not very good. Past history tells us that, so Im not looking to be the hero here and say "This time its different." When market comes back through the tunnel on the upside, we will get back in on the long side.

If I have to tell you when the market is in a strong price move, I dont think you have been paying attention to the price movements of late.

In a range-bound market, which we define as a market between 3 - 5 handles [or lower] in a 5 week time-frame, we trade both sides.

Now, thats all we use. Can you use more? Can you invent your own? Can You change some of the definitions? Yes, absolutely. Invent your own filters, use an Elliot Wave filter, anything you think will help your trading.

SUGGESTED MODEL SYSTEM

Do I really need to mention money management?

I didnt think so.

At a minimum you should be able to do 3 units to implement tunnel trading. Use the 55, 89, and 144 levels to take 1/3 off at each level. If you can do 4 units, use 55, 89, 144, and 233. 5 units is the preferable level, and you use 55, 89, 144, 233, and let one unit ride until crosses over tunnel boundary or it reaches 377.

Of course, you can make your units any size you want. For smaller traders, a unit size may be 10,000. If you do not have the money to trade 30,000 of something, then I would advise you to save up and come back when you do. If your account has $2,000 in it, you can easily implement tunnel trading with 10k units.

One of the greatest advantages of this model is its flexibility in its design to allow you to choose the level of risk/reward you desire in trading. You can make this as aggressive or as conservative as fits your style. I will give an example of each. These are just examples, Im not saying you have to do this. Im only giving you these two to stimulate your brain. In the following day and weeks I am confident you will find an appropriate level for yourself.

Example 1 - Very Aggressive

Tunnel is pivot level for buy/sell. Above tunnel, buy breaks, sell at fib numbers. At 233 an 377, fade the move for retracement. Below tunnel, sell rallies, buy at the fib numbers. Use previous fib numbers in the move as stop loss points. This is very aggresive, and woul be appropriate for very short-term traders who have a time-frame of day-trading.

 2/3  首頁 上一頁 1 2 3 下一頁 尾頁