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Forex System Development Workshop
www.fxrenew.com
Day Trading with Steve Lucas
FX Renew Disclaimer
The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. This website is owned and operated by FX Renew Pty Ltd ABN
50 168 652 542 the holder of an Australian Financial Services Licence (AFSL) to carry on financial services business in Australia, limited to the financial services covered by its AFSL no.455388.
Any advice included in this webinar is general advice only and is based solely on consideration of the investment or trading merits of the financial products alone, without taking into account the investment
objectives, financial situation or particular needs (i.e. financial circumstances) of any particular person. Before making an investment or trading decision based on the general advice, the recipient should carefully consider
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information. Past results are not a guarantee of future performance.
RISK DISCLOSURE: Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. The high degree of leverage available can magnify profits and as well as losses. You can lose more
than your initial deposit. Before trading, please carefully consider the risks and inherent costs and seek independent advice as required. Please contact us, to discuss any questions or concerns you may have, we are
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Welcome
G’day, Howdy, Guten Tag, Ni Hao, Вітаю, Hallo, Konnichiwa, Chào and welcome to session #6 of the Forex System Development Workshop.
Live and Interactive
Don’t be a Shy Sally or a Bashful Barry, ask questions,
take your time.
Title goes here
Forex System Development Workshop
www.fxrenew.com
Day Trading with Steve Lucas
About Steve Lucas
“Tell us a little bit about your background and trading career. How did you get started? What have you done?
Etc.”
About Steve Lucas
• Started trading in 1979• Moved to Australia to run a Swiss book • Spent some time in LA• Took over an AUDUSD book • Ran CBA New York office • Then prop trading in Sydney and London • Moved to DRKW in 2001 in a research and technical
analysis team of four• Encouraged by clients to start own firm in 2004 – 3C
Analysis
Trading Style
“Describe your general approach to trading and how you structure your trades.”
Trading Style
• My strength is short-term• I like to catch the first European move from 7am open to 9am • Analysis continues during the day• Asian moves are usually wrong • Not swayed by news releases or events • Let the charts, price action, volume and open interest speak• Use statistical data and correlations • Have a view out to three months but for the most part focus
on day trades
Technical Set-up Conditions
“What technical set-up conditions do you look at before you enter a trade?”
Technical Set-up Conditions
• Have favourite set-ups but look to make a call on the open for each market covered
• For the FX Renew signal, I select my favourite of the day and Sam confirms it
• Favourite candlestick pattern is a Spring Hammer/Shooting Star
• Medium term looking for a trend (higher lows or lower highs)
• Long-term is a combination of Head and Shoulders. Evening/Morning Star and DMI (a statistical tool)
Fundamental Set-up Conditions
“What fundamental set-up conditions do you look at before you enter a trade?”
Fundamental Set-up Conditions
I try to ignore fundamentals but will take into account when opening and closing positions, so I always know what is released and when, and what I think the potential implications of a miss will be.
Timing Your Entry
“What do you use as your entry point?”
Timing Your Entry
• Use the 7am open for FX• Not ideal but forces me to be proactive • Clients will often enhance entries and exits levels
with their own analysis
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 most important thing in any trade is to have a stop
• I use cut-off times for trades • My favourite stop is Fibonacci based, as is the trailing
stop • Constantly watching for a turn and will exit on a sell
signal
Exits
“What is your exit strategy?”
Exits
• Not text book • Take 1/3 of fairly quickly • As the trade reaches break even, raise the stop • The second 1/3 at the main target around 2:1 RR• Let the final 1/3 run
Trade Management
“When would you scale-in or out of a trade?”
Trade Management
• Totally depends on the market • A couple of years ago I would rarely scale-in but
always scale out • Today I nearly always scale-in and out
News Events
“How do you manage your positions around news events?”
News Events
• Don’t have much going into news events • Look to get square at 1pm on daily trades • Keep position size small if a European release that is
going to drive the market
Position Sizing
“How do you determine your position size?”
Position Sizing
• I use a percentage of capital at risk • I always view the trade in thirds. • Therefore we like to deal in threes
Risk Management
“What other risk management rules do you use?”
Risk Management
• Use daily, weekly, monthly drawdowns • Analyse trend success • After losses don’t trade or keep positions small until
have a handle again • Which days we make or lose money
The Three Most Important Things
“What are, in your opinion, the three most important things to successful trading?”
The Three Most Important Things
• Discipline • Composure • Use a limited number of trusted inputs (3Ca being
one) • Keep healthy and sleep well
Title goes here
Forex System Development Workshop
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Trade Examples
Trade Example: Dark Cloud/ Bearish Piercing
Trade Example: Morning Star
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Trade Example: Spring Hammer
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Trade Example: Bullish Engulfing
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Trade Example: Bullish Engulfing
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Trade Example: Bearish Engulfing
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Trade Example: Bullish Hammer
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Trade Example: Bullish Piercing
Trade Example: Bullish Piercing
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Trade Example: Evening Star
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Trade Example: Morning Star
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Trade Example: Dark Cloud Cover
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Trade Example: Imperfect Evening Star
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Trade Example: Inverted Hammer
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Trade Example: Bullish Morning Star
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Trade Example: Shooting Star
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Trade Example: Weekly S&P
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Trade Example: Yearly AUDUSD
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Trade Example: Monthly Dax
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Trade Example: Weekly Dax
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Questions
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Forex System Development Workshop
www.fxrenew.com
Questions, Queries, Feedback