Sonic R. System @ Forex Factory

sonicdeejay · #1 Oct 13, 2008 9:23pm

Hi Fellow Traders,

My name is Sonic. I want you to read The 5 steps of Becoming the profitable trader (5 steps pdf) document before you do anything else in trading.

The Story

I have been trading for a near 2 years now and been a blessing so far.
Just like many of you. I started hunting for the holy grail <aka> indicators that gives buy/sell with 0 loss.
Soon, I found out that my trading statement is going no where, with messy charts and too many indicators to confirm. That causes the late signal trigger; minimizing my wins and maximizing my losses. Most of them are lagging.
After reading many TA systems, books and LIVE trading, I have found out about there is no systems or indicators can really predict where the price will go. I became to understand the importance of Money Mangement, General trend, Higher, High Higher Low, S & R and fib <for advance user> and most pro use minimal to none indicators at all.

The philosophy

Trading is a probability business.
You can win and you can lose too.
It is your job to minimise your loss and maximize your win.
You will follow set of rules that will help you on the winning sides most of the time.

The Rise of Sonic R

Here is a simple, nice and profitable 5M/15M swing system that I found in Raghee 's book.
A Blindly followed Moving Averages system can be very successful in trending market, but I am around here long enough to witness the failure of it, when the market goes into ranging periods.
So, I fine tuned the system with understanding of Trend line,S & R, Wave analysis and Price action, and I am getting high success rate on my position/swing trading, apart from my original Sonic Striker System which is based on the higher 4H TF.
I'd like to call it Sonic R.
Now, it is not the magic bullet, nothing is.
It is a simple EMA based yet effective system.
You can earn 50 to 400+ pips on a trade.

The Reason

And why am I sharing this, while I do not earn a penny from you for my time and effort? Because I believe Sharing is Caring.

The Setups/Rules of the system

Check out about the essence of Sonic R HERE, find out why the Sonic R set ups have been profitable.
I have put the "entry, exit, SL and TP" rules with all necessary indicators into "SonicR or SonicRV2 or SonicRV3" zip file.
SonicRV3 is created with better and more comprehensive examples...
Please refer to the attachment of this post and you can learn how to install and load the Sonic template properly , HERE

The Expectations

I have no commercial interest in sharing this system.
You can say thanx to me by posting comment in my profile, "vouching" me in my profile and rating to this thread (on the right hand corner of this page).
Please don't be a silent lurker. Get yourself invlove in this community, sharing with others as well about your experiences and trade set ups.
Let's get the ball rolling..

Sonic FX Chatroom

It is simple. It is free.
Click HERE for more info.

Sonic
(P.S I do not do managed acc, sell signals or whatsoever)

sonicdeejay · #2 Oct 13, 2008 9:31pm

Here is the sample trades last nite..

White :::: Open positions
Red::: SL line
Blue/Lite Blue :::: TP, Close positions

Sonic

sonicdeejay · #3 Oct 13, 2008 9:59pm

+300 pips trade on EUR/JPY...
**I have Euro Long bias on mind.

White :::: Open positions
Red::: SL line
Blue/Lite Blue :::: TP, Close positions

Cheers
Sonic

Yaad · #4 Oct 13, 2008 10:02pm

Looks good when the market is trending, but in a ranging market you will get murdered even if you are entering a few pips above/below the set up bar.

Been trying to "perfect" a similar system for some months now, results haven't been that good.

sonicdeejay · #5 Oct 13, 2008 10:11pm

Quote:

Originally Posted by Yaad

Looks good when the market is trending, but in a ranging market you will get murdered even if you are entering a few pips above/below the set up bar.

Been trying to "perfect" a similar system for some months now, results haven't been that good.

Absolutely agree on this one...I am glad that u asked.here are the solutions that I incorporated, to avoid possible whipsaw.

1. Trading Time Periods (that kill alot of whipsaw blunders)
2. Angle of the slope (Long 1 to 2 O clock, Short 4 to 5 O clock, avoid 3 O clock Ranging)
3. Muliple TF confirmations (By checking in 15M and 1H TF (for 5M TF trade) and 1H, D1H TF (for 15M TF trade) give u an edge on the sense of direction of Overall Trend)...
4. Not chasing after the trade. (that beats alot of single bar fake breakout, created by Big Boys)

Hope these helps.

Sonic

sonicdeejay · #6 Oct 14, 2008 9:00pm

White :::: Open positions
Red::: SL line
Blue/Lite Blue :::: TP, Close positions

Yesterday was ranging during UK session and I await for a valid break out. Please attention to how I count my wave using HH,HL and LH,LL...

Trade 1 (long)
Entry..I was waiting for the ranging line to get broken (The white line)
SL.... I put my SL @ few pips below nearest support level. (The red line)
TP.... I book my profit when top "M" shapre is broken.

Mombone · #7 Oct 14, 2008 10:18pm

Am I missing something?? What indi puts the white and red lines on the chart??

Thanks
Mombone

sonicdeejay · #8 Oct 14, 2008 10:31pm

Quote:

Originally Posted by Mombone

Am I missing something?? What indi puts the white and red lines on the chart??

Thanks
Mombone

Hello Mombone,
The lines are drawn by myself for illustrating purpose...in Paint..It is not include in the MT4.

Sonic

kentashiburo · #9 Oct 14, 2008 10:38pm

Quote:

Originally Posted by Yaad

Looks good when the market is trending, but in a ranging market you will get murdered even if you are entering a few pips above/below the set up bar.

Been trying to "perfect" a similar system for some months now, results haven't been that good.

I've used Stochastics and oSMA's (2yrs) to the same extent with amazing results in trending market, but horrible for scalping in low volatility.

Takes a lot of discretionary positioning and it is kind of nerve wrecking

sonicdeejay · #10 Oct 14, 2008 10:49pm

Quote:

Originally Posted by kentashiburo

I've used Stochastics and oSMA's (2yrs) to the same extent with amazing results in trending market, but horrible for scalping in low volatility.

Takes a lot of discretionary positioning and it is kind of nerve wrecking

Agree about the killer ranging periods....but have u tried to trade following the rules in post #5. You will see the differences...

Hope it helps//
Sonic

kentashiburo · #11 Oct 14, 2008 11:18pm

Quote:

Originally Posted by sonicdeejay

Agree about the killer ranging periods....but have u tried to trade following the rules in post #5. You will see the differences...

Hope it helps//
Sonic

Hi Sonic,

I am a bit confused by 1 and 4. Care to expand on that?

Quote:

Originally Posted by sonicdeejay

1. Trading Time Periods (that kill alot of whipsaw blunders)
4. Not chasing after the trade. (that beats alot of single bar fake breakout, created by Big Boys)

sonicdeejay · #12 Oct 15, 2008 12:00am

Quote:

Originally Posted by kentashiburo

Hi Sonic,

I am a bit confused by 1 and 4. Care to expand on that?

1. Nice Trading time periods, that have major movement.... UK is the main centre of Forex and UK/US session overlap has a lot of movement too....

Trading Time
1AM - 4 AM EST (UK session)
7AM - 11 AM EST (US session)

4. We do not buy/sell on the break on the line immediately. Wait till that break-thru candle close. and we put buy stop/sell stop few pips above or below it...

Buy
Look for the candle go above upper white line and wait till the candle ends...and put the "Buy stop" few pips above the "High" of that candle.
MACD sloping up.
Stoch pointing up.

Sell
Look for the candle go below lower white line and wait till the candle ends...and put the "Sell stop" few pips below the "Low" of that candle.
MACD sloping down.
Stoch pointing down.

Hope it helps,
Sonic

drmahathir · #13 Oct 15, 2008 5:54am

Thanks for sharing this simple system, Sonic. I like the fact that with a buy/sell stop you won't be roped in on false breakouts.

One question, you mention that stocs should be pointing up for long signal. Does it matter whether it just crossed 20 or well passed 20?

Thanks again

sonicdeejay · #14 Oct 15, 2008 7:17am

GBP/USD 15M trade...

Bagged a near +140 pips....

The Angle looks OK...

So, wait for the breakout.
Break out at point 1. Stoch doesn't favour. Wait till it ends (If u chase, u will get caught here).. Put a "Buy Stop" with few pips above it @white line 1. I like number like .7 or .4 ...
The order doesn't get taken and price swing back.

Break out again at point 2,I put the buy stop at white line 2.

SL @ upper red line. Sometimes, I'd put SL @ t lower red line as it is a nice Support level and defintely withstand from normal whipp.

Well...the rest is as u can see,,,

Sonic

sonicdeejay · #15 Oct 15, 2008 8:13am

Quote:

Originally Posted by drmahathir

Thanks for sharing this simple system, Sonic. I like the fact that with a buy/sell stop you won't be roped in on false breakouts.

One question, you mention that stocs should be pointing up for long signal. Does it matter whether it just crossed 20 or well passed 20?

Thanks again

Doesn't matter...about the level....Stoch up is all I want...

Sonic