SETO-Method

Thanks, Seto!

I think that your presentation is not finished at all. In fact, it is just started!

I am in fact more interested in your statistics rather than your trading examples.

the statistics with significant reference values may be:

Starting Capital vs Equity Growth (or use %), Profit vs Loss

NO. of trades, winning ones, losing ones;

max & min & average P/L for winning trades, and losing trades;

trades duration (shortest vs longest)

and so on......

if you have these statistics, that'll greatly help us forming an impression (or a concept) of the potential/performance of this methodology (or trading style).

let us wait patiently for the map to roll out.

everyone said let profit run and cut losers short, why would pipeasy write that thread? or even why is FF here?

sorry, but I have a feeling seto hasn`t got a lot more to say. probably wants to go from here "together". but we`ll see

I thought that he has finished explaining the method.

Choose 5 pairs
Identify monthly trend at the beginning of the month and stick with that bias
Every day look at the 5 pairs and enter the best trade in the direction of the monthly trend with a relatively small stoploss (50 to 75 pips)
Hold and hope that 4 trades in one month do not hit your SL
Hold and hope that the SL is not hit in subsequent months
Close some positions if/when they are in profit enough to cover the losses incured by the 18 losing trades every month

The questions remain...
How do you identify the monthly trend?
Look at the attached monthly chart of EURUSD
The last 5 candles are all bullish, so is the monthly trend bullish?
Looking at the whole chart, is the market ranging or is it in a downtrend with large retracements?
If you were to blank out the last 6 numbered candles, you would see that price has been basically downwards for over a year.
So during the course of month 1 (July) you would only enter short trades.
Looking at the daily chart, you can see that some short trades would have done very well, going close to 500 pips in profit.
By the end of month 1 you would be feeling quite happy with any trades on this pair
Going into month 2, I'm quite sure that you would still have a bearish bias (remember, at this stage candles 2 to 6 would not be visible)
But after waiting for the market to turn downwards, every single short that you might take would be stopped out.
Early in month 3, you would also see every trade that you took in month 1 would also be stopped out.
How many people are mentally equipped to see some trades go 4 or 500 pips into profit, only to be stopped at a loss in later months.
What would be your bias entering month 3? Without the benefit of knowing how candles 3 to 6 will turn out.
1 bullish candle at number 2 doesn't make a trend, so I believe that you would still be looking for opportunities to short.
So I believe that you would probably not enter any trades until the latter part of the month when the market turns down again.
Some of these trades will go into profit, but only to be stopped out early in month 4.
So now what is the bias going into month 4 - well to be honest, it doesn't really matter. ANY trade entered in month 4, long or short would be stopped out in month 5 or 6
Entering month 5 you may well have changed to a bullish bias and started taking long trades about the middle of the month. Many of these would be stopped out, but maybe some will survive.
Month 6 you may have taken some more long positions that are now showing a small profit.
Who knows what next month will bring? If price drops 400 pips from the December close, it will take out the stops on any remaining positions.

So possibly, you may be showing a small profit on this pair. It would take a lot more time and detailed analysis to know whether you would have been able to close enough positions in profit to cover the losses.
Of course, one would hope that one of the other pairs has been in a very strong trend that will give good wins, but that is all it can be - hope.

How many trades do you need to make before you can be sure that a method will work consistantly?
10,000?
1,000?
500?

Setoeric wrote this post on April 23rd 2012

http://www.forexfactory.com/showthre...32#post5598132

Where he admits to not being a profitable trader, that was 8 months ago.
So was he trading with this method then? Obviously not because this method is so profitable.
If he started with this method immediately after that post, he would only have been able to place about 160 trades, not enough in my opinion.

Face facts, this guy is a wannabee Guru who has put up a rehashed method with vague entry and exit criteria so that if it fails, he can blame you and not his method

Instead of speculate we can see wht he say when he comes if he comes....


Best regards