ACTIVE TRADES - FOREX TRADE MANAGER

in-depth view for forex tool #5
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This tool is the main trading management tool in the kit, in addition to its main purpose of managing active forex trades, it also acts as the link between money management tools and trading management tools, ensuring a seamless flow of data between both.

It can monitor and manage up to 8 concurrent trades and unlimited closed trades per checkpoint. When a trade is closed or a new trade is activated, the tool instantly populates the remaining risk threshold to the trading tools and sends the current standing to the money management tool.

This page will cover everything regarding this tool in details, starting with the features of the tool, then explaining data flow from/to the tool using a chronological example, then explaining all the data shown in the tool, and finishing with an example for closing a trade.

TOOL'S FEATURES

"Active Trades" tool features: Universal percentage based on trading balance

universal percentage based on trading balance

UNIVERSAL PERCENTAGE

Handling money management and trading management simultaneously can be extremely confusing with all the calculations needed for multiple currencies and possibly multiple forex brokerage accounts with different base currencies. That is why everything is anchored around the active trading balance which will always be considered a 100%, and everything else will relate to that percentage.

Using that approach keeps the user focused on nothing but money manaegment. A trader might have multiple brokerage accounts where one of them or their collective balance exceeds the total balance planned for trading, but that won't be tempting to enter trades with more risk than originally planned, since all calculations are always relating to money management balance used for the forex trading cycle, not actual total balance.

CURRENCY MANAGEMENT

The currency chosen for money management is the dominant currency for the whole toolkit. When a trade that uses a forex brokerage account having a base currency different than the money management currency is imported, the exchange rate update option will automatically be enabled inside the trade's placeholder. When a new rate is entered, the expected risk and profit for that trade will be instantly updated, as well as the current checkpoint's thresholds. The updated exchange rate will also be saved for that broker's preset.

8 CONCURRENT TRADES

The tool can manage up to 8 concurrent trades & unlimited closed trades for the active checkpoint, with detailed information for each trade including (used presets, order details, exchange rate, money management details, and order tracking details).

CHECKPOINT'S STANDING

Checkpoint's standing will keep track of all the closed & active trades, ensuring that data sent to both trading and money management tools is always up to date and reflecting the actual current standing.

BROKER'S STANDING

The balance for each of the forex brokerage accounts and their relation to trading balance in percentage are displayed for reference.

When a trade is closed, the brokerage account used for that trade will be automatically updated with the new balance. Accounts that have a base currency different from the dominant currency will be instantly updated with their new percentage with respect to the universal percentage whenever the exchange rate is changed anywhere in the toolkit.

EASY TO IMPORT

Importing a trade setup from any of the trading tools is a matter of choosing the tool and clicking the import button. Everything will be automatically updated accordingly, including the balance and available margin with the forex broker used for that trade, and the remaining risk for that checkpoint.

HEADS-UP MESSAGES

The tool will do its best to keep the user consistent, personalized messages will be shown when the tool detects a deviation from the original plan for the active checkpoint.

TOOL'S DATA FLOW

the tool's role as the anchor of calculations

The below illustration details the type of data flow between this tool and other tools directly connected to it, to see the bigger picture for the whole toolkit's data flow please check this illustration.

Data flow from/to "Active Trades" forex trading management tool

data flow from/to "Active Trades" forex trading management tool

During the life span of a full forex trading cycle, taking trades should always be done according to strict money management rules, this is essential for consistent trading. To achieve that consistency, the toolkit's structure contains trading tools that will calculate the technical aspects of a trade setup like pip value or margin required or pip distance to take profit & stop loss, while money management tools will calculate targets and sustainable loss according to the current trading balance and money management rules set. A tool was needed to "connect" both of these trading and money management activites, and that's exactly what this tool does.

CHRONOLOGICAL EXAMPLE

To demonstrate the flow of data from/to the tool, we will be using checkpoint #9 of the trading cycle. Starting from the moment the previous checkpoint #8 was closed, going through activating two trades taken during checkpoint #9, and finishing with closing the trades and the checkpoint, to start the next checkpoint #10. In short, the whole life span of checkpoint #9!

"Active Trades" tool chronological example: milestones illustration

chronological example milestones illustration

Checkpoint #9 consisted of two harmonic patterns trades, a Crab pattern that started forming on H1 chart of NZD/USD (X candle: 13-Apr-2016 06:00) and was triggered at (19-Apr-2016 13:00), and a Deep Crab pattern that started forming on H1 chart of GOLD (X candle: 14-Apr-2016 11:00) and was triggered at (20-Apr-2016 04:00). The second trade (Deep Crab) was closed first at (21-Apr-2016 15:00) by hitting the planned stop loss, and the first trade (Crab) was closed last at (21-Apr-2016 20:00) by hitting the planned take profit. Below we will show each step taken to trade both patterns chronologically as they actually happened, and the changes in checkpoint's standing and thresholds throughout the life span of checkpoint #9.

A NEW CHECKPOINT

"Active Trades" tool chronological example: Checkpoint #9 thresholds

checkpoint #9 thresholds

When a previous checkpoint is closed (checkpoint #8 in our example), the new checkpoint's thresholds are automatically calculated at the money management tool "Checkpoints" and sent to this tool. The screenshot shows the data recieved when checkpoint #9 was opened.

That data is then populated by this tool to all the different trading tools, to be used for sizing and calculating any trade setup according to the trading cycle's rules.

THE FIRST TRADE

"Active Trades" tool chronological example: Setting up a trade in the trading tools

setting the trade rates

TRADE SETUP

Jumping to "Custom Trade" tool, where the first trade setup was recieved from the harmonic "Crab" tool, the screenshot shows the rates as they were recieved, and the correct USD placement in the pair is selected.

"Active Trades" tool chronological example: Overriding the default risk percentage

overriding the default risk percentage

OVERRIDING RISK

By default, all the trading tools will use the maximum available risk percentage to calculate trades. However the risk percentage was overriden to 0.90% to leave some risk for more trades during this checkpoint.

view a native screenshot of "Custom Trade" tool at that time.

"Active Trades" tool chronological example: Checkpoint's standing

checkpoint's standing

CHECKPOINT'S STANDING

Now that the trade setup is ready and sized according to the forex trading cycle's rules, the trade is imported by choosing "Custom Trade" in the first trading slot. The image shows the checkpoint's standing after importing the trade. The new calculated thresholds are instantly populated to all the trading tools.

view a native screenshot of this tool at that time.

THE SECOND TRADE

"Active Trades" tool chronological example: Setting up a trade in the trading tools

setting the trade rates

TRADE SETUP

Next, the second trade setup was recieved from the harmonic "Deep Crab" tool, the screenshot shows the rates as they were recieved, and the correct USD placement in the pair is selected.

"Active Trades" tool chronological example: Overriding the default risk percentage

overriding the default risk percentage

OVERRIDING RISK

This trade used all the remaining risk for the current checkpoint, thus no overriding took place.

view a native screenshot of "Custom Trade" tool at that time.

"Active Trades" tool chronological example: Checkpoint's standing

checkpoint's standing

CHECKPOINT'S STANDING

Now back to this tool, the second trade is imported into the second trading slot. The image shows the checkpoint's standing after importing the trade. The new calculated thresholds are instantly populated to all the trading tools, which in this case is almost zero and not enough for entering any new trades, so it is just a waiting game for the trades to close at any of the planned stop loss or take profit targets.

view a native screenshot of this tool at that time.

CLOSING TRADES & CHECKPOINT

"Active Trades" tool chronological example: Checkpoint's standing after Deep Crab closure

checkpoint's standing after "Deep Crab" closure

CHECKPOINT'S STANDING AFTER "DEEP CRAB" CLOSURE

The first trade to hit a closure rate was the "Deep Crab" trade, which closed by hitting the planned stop loss, the screenshot shows the checkpoint's standing after closing that trade (More about closing trades is shown in details later in this page).

Right now only one trade is still open, and the risk threshold is still the same since the closed trade was a loosing trade that didn't provide any additional cash for the active checkpoint to be used in trading.

view a native screenshot of this tool at that time.

"Active Trades" tool chronological example: Checkpoint's standing after Crab closure

checkpoint's standing after "Crab" closure

CHECKPOINT'S STANDING AFTER "CRAB" CLOSURE

Next, the "Crab" trade hit the planned closure rate, which was the take profit target of the trade. The screenshot shows the checkpoint's standing after closing the trade.

As shown, the closed trades resulted in a net profit of 99.48 USD, which resulted in the thresholds for the active to be calculated again providing the new risk threshold to be used for calculating any trades, which in our example will be the exact same percentage that the checkpoint was initially using. Unlimited trades (maximum of 8 concurrent trades) can still be calculated and imported into this tool for the current checkpoint #9. However, we are closing this checkpoint after those trades.

view a native screenshot of this tool at that time.

"Active Trades" tool chronological example: Final standing for Checkpoint #9

final standing for Checkpoint #9

FINAL CHECKPOINT'S STANDING

In "Checkpoints" tool, the standing for the active checkpoint #9 and the status for the closed trades are recieved, clicking "close active CP" will end the current checkpoint and have the next checkpoint's thresholds calculated and populated automatically.

view a native screenshot of "Checkpoints" tool before closing checkpoint#9.

view a native screenshot of "Checkpoints" tool after closing checkpoint#9.

"Active Trades" tool chronological example: Checkpoint #10 thresholds

checkpoint #10 thresholds

NEXT CHECKPOINT'S THRESHOLDS

The image shows the new checkpoint #10 calculations by "Checkpoints" tool, which got populated to this tool to use for trading through this checkpoint.

view a native screenshot of this tool at that time.

CONCLUSION

This tool is the single point of contact between money management and trading management, it recieves checkpoint's thresholds from the money management tool and populate them to the trading tools. It keeps the current checkpoint standing updated according to both closed & active trades, while sending the new thresholds to the trading tools and the updated standing back to the money management tool.

TOOL'S CONTENTS & STRUCTURE

In-depth demonstration for the 2 sections of the tool

Now that we talked about the tool's features and data flow thoroughly, we will go more in-depth and explain everything seen in the tool by breaking down this screenshot and explaining all the data shown, it was taken for this tool at checkpoint #9, after both harmonic trades were imported.

The tool mainly consists of two parts, 1: Trades management & 2: Money management. The trades part handles importing and managing active trades, while the money management part will shows everything related to money management to eliminate the need for jumping back and forth to the money management "Checkpoints" tool to check those values.

1: TRADES MANAGEMENT

"Active Trades" forex trading management tool in-depth: Importing a trade

importing a trade

IMPORTING A TRADE

Importing a trade from any of the trading tools into this tool is a matter of choosing the tool where the trade is set up and clicking import.

Each of (Stop Loss Rate, Take Profit Rate, Position Size, and Fixed Range) will always be imported and saved with their names. "Custom Trade" tool will be imported and saved with its name if the tool doesn't have an active harmonic link, or with the harmonic pattern reference if there was an active harmonic link in the tool.

Trades originated in "One-to-Many" are imported individually, that enables closing/saving only the trades that were triggered and clearing the remaining trades.

"Active Trades" forex trading management tool in-depth: Used presets

used presets

USED PRESETS

Both broker & currency presets that were chosen in the originating tool are shown here, it is important to understand that once a trade is imported, it is completely detached from the trading tools.

"Originator" will show the tool in which the trade was setup, with a special exception for trades that were sent from any of the harmonic tools to the "Custom Trade" tool, they will be imported and saved using the harmonic pattern reference as the originator.

"Active Trades" forex trading management tool in-depth: Order details

order details

ORDER DETAILS

The order details part will show the trade's details from the forex brokerage account point of view, showing the 6 main details for an order (entry rate, take profit rate, stop loss rate, position size, position type, and margin used), in addition to the possible outcomes for that trade (risk & profit).

"Active Trades" forex trading management tool in-depth: Update broker's exchange rate

update broker's exchange rate

UPDATE BROKER

This option is automatically enabled if the forex brokerage account used for this trade have a base currency different from the money management dominant currency. When the user updates the exchange rate for those currencies (exchange rate is manually updated), the broker's preset will be updated, as well as risk & profit expected from this trade with respect to money management rules, and finally the remaining risk for the active checkpoint will also be updated accordingly.

"Active Trades" forex trading management tool in-depth: Money management risk and profit expected

money management risk and profit expected

MONEY MANAGEMENT

This part shows the possible outcomes for the trade using the dominant money management currency. If both the dominant currency and the brokerage account currency are the same, this part will show the same exact values shown in the order details part, while if they are different, both values will be calculated using the exchange rate entered.

"Active Trades" forex trading management tool in-depth: Order tracking details

order tracking details

ORDER TRACKING

In this part, the traded currency pair and the chart timeframe are chosen, and the order reference with the forex broker is entered. This will help in finding that order later in the history tool. Actions related to the imported order can be taken here, either closing the order or clearing it as needed.

2: MONEY MANAGEMENT

"Active Trades" forex trading management tool in-depth: Checkpoint's data

checkpoint's data

CHECKPOINT'S DATA

This part shows the data recieved from the money management tool "Checkpoints" when a new checkpoint is opened, all the values here never change starting from the moment a new checkpoint is opened untill it is closed.

  • Trading balance: balance at the active checkpoint's opening.
  • Risk%: risk percentage with respect to trading balance (this is the percentage populated to trading tools).
  • Cash at risk: risked cash for the active checkpoint.
  • Profit %: target profit percentage, with respect to trading balance.
  • Target profit: target profit for the active checkpoint.
  • Reward/Risk: R:R ratio (this is the ratio populated to trading tools).
"Active Trades" forex trading management tool in-depth: Checkpoint's standing

checkpoint's standing

CHECKPOINT'S STANDING

This part keeps track of all the closed & active trades, while keeping both the trading tools and money management tools updated with the data calculated here.

  • Closed: output of all closed trades during the active checkpoint.
  • Active risk: total risk for all the current active trades.
  • Collective: total output of both the closed & actived trades.
  • Checkpoint output: status and percentage of closed trades, with respect to the checkpoint's opening balance (This is the data sent to "Checkpoints" tool).
  • Safe to risk: remaining risk populated to the trading tools.
"Active Trades" forex trading management tool in-depth: Heads-up messages

heads-up messages

HEADS-UP MESSAGES

This part is meant to help the user stay consistent by displaying messages when certain situations are detected. Messages are displayed when there is no active money management plan, when risk/reward ratio for the active trades shows more weight given to risk, and finally when exceeding planned risk for the active checkpoint.

"Active Trades" forex trading management tool in-depth: Brokers status

brokers status

ACCOUNTS' STATUS

This part shows the balance in each of the forex brokerage accounts, and the percentage of each one of them compared to trading balance. When an account's base currency is different from the dominant money management currency, the active exchange rate entered will be used to calculate the balance with that broker in relation to trading balance, and calculate the percentage accordingly.

CLOSING A TRADE

Every bit of data is saved

Keeping data is extremely important in forex trading, that is why the tool will save each and every bit of data collected regarding the trade being closed.

There are 3 main parts in the "Close Trade" window. (Order tracking, Planned setup) will show all the data that will be saved for the order, while (Actual Closure) part will handle the actual closure data for that trade and its impact on the brokerage account used and money managemet.

The process for closing a trade is logically arranged so that only the values that didn't match the originally planned values are to be entered, dynamic recalculations will take place whenever overriding a calculated result.

The screenshot and images used to explain closing trades, are taken while closing the second trade of checkpoint #9 (Deep Crab).

"Active Trades" tool closing a trade - Order tracking details

order tracking details

ORDER TRACKING

This part shows data collected for tracking that trade, there is no user input for that part.

  • Trading cycle: cycle reference where the trade was opened & closed at.
  • Trading checkpoint: checkpoint reference where the trade was opened & closed at.
  • Trade#: the toolkit's reference of the trade.
  • Originated by: originator tool of the trade.
  • Traded using: broker's preset used and order referene with that broker.
  • Currency preset: currency preset used for that trade.
  • Actual traded pair: traded currency pair, since it can be different from the currency preset.
  • Char timeframe: chart timeframe where the trade was spotted at.
"Active Trades" tool closing a trade - Originally planned setup details

originally planned setup details

PLANNED SETUP

This part shows data collected for the originally planned trade, there is no user input for that part.

  • Entry rate: entry rate of the order.
  • Take profit: initially planned take profit rate.
  • Stop loss: initially planned stop loss rate.
  • Position size: position size of the order.
  • Order type: direction of the order (Long/Short).
  • Margin used: margin used for opening the order.
  • Risked (Broker): planned risk from brokerage point of view (in cash & percentage).
  • Expected (Broker): planned profit from brokerage point of view (in cash & percentage)
  • Risked (MM): planned risk from money management point of view (in cash & percentage)
  • Expected (MM): planned profit from money management point of view (in cash & percentage)
"Active Trades" tool closing a trade - Actual closure

actual closure

ACTUAL CLOSURE RATE

This part will handle the actual closure of the trade, the tool automatically gives the options matching the originally planned profit and loss targets, so that if the trade wasn't closed using a different rate, it will be just a matter of choosing the rate and closing the trade.

Choosing either one of the supplied rates will use the chosen rate for calculation, while choosing (other:) and entering a rate, will force calculations to use that rate. calculations done for the next part are primarly dependant on the closure rate chosen/entered here.

"Active Trades" tool closing a trade - Broker & Money management update

broker & money management update

BROKER & MONEY MANAGEMENT UPDATE

This part will dynamically calculate the impact of that trade on both the forex brokerage account and money management according to the closure rate chosen/entered, with options to override any value as needed. They are arranged in a way that if a values is chosen to be entered manually, it will recalculate all the next values depending on it, this will minimize the needed entries when a value gets changed.

broker update
  • Profit/Loss: This is the aboslute output of the trade in cash with respect to brokerage account, default value is calculated with respect to the actual closure entered, with override capability.
  • Balance: This is the final balance with broker after the update, default value is calculated with respect to Profit/Loss above.
exchange rate
  • If the brokerage account base currency is different from money management currency, the exchange rate can be directly entered here.
money management update
  • Profit/Loss: This is the aboslute output of the trade in cash with respect to money management, the default value is calculated with according to Profit/Loss of brokerage account and exchange rate from the above step. The final value in the step will be used to update the current checkpoint standing.
"Active Trades" tool closing a trade - Final information

final information

FINAL OUTPUT & CLOSING

Now that everything is completed, this information windows will describe exactly what will happen when this trade is closed. It mainly informs the effect of the trade on the forex brokerage account, money management, and if the exchange rate was changed.

When "Close Trade" is clicked, the trade will be saved, checkpoint data and thresholds will be updated, and the trade's slot in the tool will be cleared.