New Year's gift! We will release a video limited to purchasers!
Purchaser-only video no.3 2025.12.19 (averaged positions)
In today's video I made two trades, and the first one averaged twice, taking three positions. (In other words, my forecast was wrong.)
Gold 5-minute chart
As explained at the end of the video, I have changed the indicator.
Free indicator from the site “FX Indicator Repository”
●MAs_MTF_toggle_v1.71
The displayed moving averages are 5-minute 10EMA, 20SMA
20SMA on the 15-minute, 1-hour, and 4-hour charts
●Engulfing_look-back_Alert
If you look closely, there are small arrows. Engulfing (engulfing candle)
Parameters and initial entry lots
There is no correct value, and I trade while adjusting according to market conditions. If kept at the default, with an initial entry of 0.01 lot, even if it goes against you, you should be able to endure 80 pips (with a 10,000 yen stop loss). In other words, “80 pips against you, if it goes further against you, stop loss.”
It’s often said, but it’s important to first determine the stop-loss level. You should exit if the market moves against your determined stop-loss location, and it might be more important than the setting itself. If you enter at 0.05 lot, you’ll quickly hit stop loss with 1-2 averaging trades, but if the stop-loss is close, you may enter at 0.05 lot with the same settings.
If the stop-loss is far away, you widen the averaging distance and enter with a small initial lot. (If the stop-loss is far away, the correct action is not to enter, but often I change the settings and enter anyway. Even so, it can still hit stop loss (ノД`)…)
From the chosen entry point to the stop-loss distance, measure it, and if it moves against you, check how much unrealized loss you would have on the attached Excel sheet.
Even when profits seem likely to grow, if the setting shows unrealized profit, it will be automatically settled. (If you turn off automated trading, it won’t settle) Even if you increase the setting value, it’s possible that it starts to move against you before you can take profit, so early profit-taking is recommended.About averaging intervalI set the initial value to 1 minute, but in practice, there are many times when it would have been better to set the averaging interval to 0. I think the averaging interval should be 0 or 1.
Somehow, the initial value seems to feel right.
Regarding averaging multiplier, the initial value is 2, but it might be a bit too large.
By widening the averaging distance and reducing the multiplier, the endurance width expands, making it harder to hit stop loss. If you boldly increase the stop-loss amount, the probability of taking profit increases, but of course the risk also increases.
How you operate is up to you.
I understand this may be uninteresting for non-beginners. I’m very sorry.
I would be glad if it could help someone.
Fukuyan