Candle size +- 20pips (buffer) = box size
Candle size low 1.5000, high 1.5100 = 100 pips
Box size = 100 pips + 40 (buffer) pips = 140 pips (+- 20 pips on each sides).
Day trading does not have to be about trading for 9 hours in front of your screen, it is about taking note of areas that are going to provide the strongest barrier and being ready to execute trades when PA gives you the confirm. Holding your trades for longer will teach you more about yourself than taking minor pips here and there, I know because in the past 6 months I have enjoyed greater success (and even I am no angel to the rules, but they are tough to swallow and will take most traders years to fully master) by allowing trades to mature well beyond a 1:1 or even 4:1 ratio. On a 4 hourly candle the risk may be higher, but in most cases the signals you get are stronger, especially against those of lower TFs.
Im not expecting many of you to understand or follow what I have written, like I said take it or leave it. Trading allows one to make there own descisions, what I have mentioned above is what I have learnt from people who have been in this game for more than a decade, meaning that they have worn the scars of booms and bust and are still here.
Being able to mentally move away from a trade to give it time may mean in some cases giving up a few hundred pips, to outline this I mention a few weeks back that I had trades that where at one stage up 1600 pips. We hit a weekly support zone and after PA confirmed that area was going to hold I took close to 900pips. Sure I gave up 700 pips, but had I traded the hourly or something like that I would probably have taken my trade off well before 400 (i remember coming home and seeing 400+ pips and thinking wow, I went to bed and woke up with 700+ staring at me). The end result was still absolutly great and far more than I would have taken before learning a little bit more about the above.
I hope this helps some people.
Thank you for taking the time to put into clear simple English something that is so useful for us newbie traders. I never cease to be amazed at the generosity of some people with their time on FF.
Im studing this system and I like it a lot, but I think the best way to approach it would be to get the EA working.
Till now I could set it up on the charts, I can see the "box", and It will do some trades too. It enters as its suposed to do.
The problem I got are the exits:
On the tester, some times there is not TP, some others there is.
On demo acc, same thing happens.
Im starting to study this programming language, and I have studied for a while the code of this EA, the question I got is the next:
Are there implemented the exit rules on the EA? I mean, the 3x (Box) for TP and 1x (Box) for SL? (So I keep studyng and searching for them instead of trying to code them)
If so, could anyone share the .set file that makes it work this way?
Btw:The version of the EA Im using is the one Ronald Raygun released the 20th of july, which I believe to be the latest.
For those set trail stop this week, I think the long trade closed with BE.
Your more than welcome. It has taken me 4 years in total but in the past 6 months I have changed my mental focus thanks to alot of what I have read. Ive had more ah ha enlightenment moments since January than I can count, due largely in part from a small handful of traders/members who speak different, by that I mean they lay it out, the truth the whole truth and nothing but the truth. In step I have been more honest with myself and evolved past a perhaps not so disciplined (was going to say reckless) trader to a more focused and prepared trader.
There are many things that I have now been open to, things I would have missed had I not taken some time to read and understand. Most of my readings have come from particular people and from there I have attained, through reading, most of there mentors and there works. What this has done is open a new door where mentally I changed and for the better.
I still strive to learn more every day. I never used to be a big reader. So far in the past 6 months I have read or am in the process of reading a dozen books.
The best thing (or 1 of, there are many) I did was settle down with a strategy and give it a real go. I backtested it, read about it (20+ times) and traded it and got some good results. As part of the process I told myself, and I do this regularly, to look back on time and spot the trades that would apply to this method and see how far they have travelled. Im not interested in the loosers, they will come and go, quite regularly at times. Its the winners that run, and by run I mean dont come home (dont get stopped out at all, or at least not for years). These small minority give me the focus I need, the focus to trade my plan to the best of my "current" ability. It is an ability that is growing stronger every week.
I dont plan on being a millionaire, its a fools dream and too many traders try to focus on that instead of the here and now. For me a steady income would be great. My goal would be to trade a couple of standard lots and see how they grow, bank something here and there. To trade full time would be nice, but I think i would get tired of it. I am happy being self employeed, I have my freedom with that. To add a holiday here and there through someone elses money is just fine with me.
Take care all, I love the fact that so many are giving this method a real go. Joel Rensink trades a method very similiar, in fact a couple. Range breakouts are one of the most robust methods available. They are simple, dont require fancy squiggles and can be traded off most TFs.
yeahp, same thing is happening this week as last week =( this sucks....its fail again for the original system on this week.
Ive been trying to stick with the original system...maybe I will start putting in the BE as my new SL...in the future.
If you have spent time testing something, that includes backtesting, then you will understand that consolidating times are tough, the trend will resume once the market has had enough, then you will make back your losses with plenty of interest.
GJ going to hit bottom entry, hopefully it happen as per long entry. Infact, EUR is weaker compare to GBP, refer to E/G pair, the best entry will be E/J. It hit 1X already. Unfortunately, i did set an entry there, I just trade G/J.
Just for my update, I got out of my Long at Breakeven (BE) and didn't put in another Long Pending Order. The Yen is very strong right now, relatively speaking so I am waiting for the Short.
My Risk management with BE is paying off right now big time. If you are using the basic system, my personal opinion is that you should really be using smaller Lot sizes until a new trend develops as your loses could be very large cumulatively.
Shorts are now in play.
However, beware on the resistance at around 154.00
Well this seems like another week like last, For me I canceled my short orders before tripped... and at least used a hedging position to offset 90% of the loss from the two long trades (GY, EY).
Will see how next weeks trades go, for me it is time for a rest and little observation... Frustration is never the time to trade.
Has anyone any information from back testing how many weeks has it done in the past in a row (like last couple weeks)? Just as a possible window to the future (if there ever really is one).
How did you know that the volume is low when it hit the resistance, any indicator you use ? Please show us the chart.
There has been a lot of talk about volume in several threads. What I don't understand is how someone can get an accurate volume reading due to forex being decentralized. I guess you can measure your brokers volume-but wouldn't that be speculative as well?
I have a few volume indicators but I am not really sure about them. Do they help?
most volume indicators only show orders being filled through their broker. Plus volume can be traded in so many different ways, I know some traders that look for high volume to signify a reversal.
omg its the same thing as last week...lol my prediction still standing true =(
keep telling self - try to fight the emotions..
Its goin long again =(
GenTarkin, so your trading a system that you are predicting will lose?
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