alan collins: london’s title goes here premier forex ...€¦ · stop-loss and trailing stops •...
TRANSCRIPT
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Forex System Development Workshop
www.fxrenew.com
Alan Collins: London’s Premier Forex Technical Analyst
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Welcome
G’day, Howdy, Guten Tag, Ni Hao, Вітаю, Hallo, Konnichiwa, Chào and welcome to session #10 of the Forex System Development Workshop.
Live and Interactive
Don’t be a Shy Sally or a Bashful Barry, ask questions,
take your time.
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Forex System Development Workshop
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Alan Collins: London’s Premier Forex Technical Analyst
About Alan Collins
“Tell us a little bit about your background and trading career. How did you get started? What have you
done?”
About Alan Collins
• Started in the 1980’s at Barclays Bank• Moved to KOP where he eventually headed the
dealing desk • Following that he worked as a technical analyst at
MCM and Dresdner • 9 years ago, he started 3C Analysis with Steve Lucas
providing independent technical analysis to banks and funds
Trading Style
“Describe your general approach to trading and how you structure your trades.”
Trading Style
• Cover three timeframes (Quarterly, Weekly, Daily) • Happiest on the shorter timeframes • Technical analysis • Statistical analysis • Tempered with practical considerations that reflect
market experience
Technical Set-up Conditions
“What technical set-up conditions do you look at before you enter a trade?”
Technical Set-up Conditions
• He has developed a technical analysis methodology that produces consistent signals.
• Primarily using hourly charts for daily calls and daily charts for weekly calls.
• Uses the Keltner channel and 13-day moving average to define the underlying trend.
• Employs hourly tools such as RSI, Momentum and Stochastics with a special emphasis on their levels measured against their own moving averages.
Fundamental Set-up Conditions
“What fundamental set-up conditions do you look at before you enter a trade?”
Fundamental Set-up Conditions
• For the most part, fundamentals are not considered. • He remains aware of important data releases or big
political events but, except for adjusting the distance of stops/targets/sizes to reflect uncertainty, sticks to trusted technical tools.
Timing Your Entry
“What do you use as your entry point?”
Timing Your Entry
All of his FX calls are aimed from 7am (London time), although current market conditions mean that the
majority of his trades are ‘legged’ in.
Stop-loss and Trailing Stops
“Where do you place your stop-loss and how do you trail your stop?”
Stop-loss and Trailing Stops
• The initial stop is the level that clearly shows, from a technical perspective, when the call is wrong.
• However, when the market moves in the correct direction the adjustment of the stop-loss is balanced by technical reasons and money management common sense.
Exits
“What is your exit strategy?”
Exits
• Exit in three parts. • Take between one-third and half off at the first
target or sooner if market conditions dictate.• The remainder comes off in thirds or quarters at the
second and third profit targets.• Watch for price action to create new counter
indications.
Trade Management
“When would you scale-in or out of a trade?”
Trade Management
• With current market conditions, scaling-in is essential.
• Scaling-out is sensible at predefined points. • In the real world, pragmatism has to be paramount.
News Events
“How do you manage your positions around news events?”
News Events
• Don’t let fundamentals affect calls. • Nonetheless, it would not be sensible to be unaware
of events such as prime UK numbers, European rate announcements and NFPs.
• Approaching such events he generally adjusts the size of trades accordingly and tries to keep stops at sensible money management levels.
Position Sizing
“How do you determine your position size?”
Position Sizing
Uses a percentage of capital at risk and view trades in thirds or quarters. He therefore likes to deal in three’s
or four’s.
Risk Management
“What other risk management rules do you use?”
Risk Management
The only extra ‘rule’ he uses is to introduce tighter stops and reduce exposure in two situations:1. When he doesn't really have a handle on a
particular market2. When trend indicators show a lack of clear direction
The Three Most Important Things
“What are, in your opinion, the three most important things to successful trading?”
The Three Most Important Things
• Discipline • Money management• 3C Analysis - To have some sort of outside advice
and influence that is independent, proven and trusted
Questions
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Trade Examples
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Questions, Queries, Feedback