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-   -   How to use the 123 strategy effectively (https://www.forexfactory.com/showthread.php?t=232466)

Saidar Apr 20, 2010 7:25am | Post# 1

How to use the 123 strategy effectively
 
Hey there everyone,

What is the best way to use the 123 system, in terms of entry, exit, take profit and stop loss?

I think the 123 strategy is a great system but I cannot seem to make a steady profit with it, I keep losing as much trades as I win, and sometimes lose more than I win.

Would appreciate it if anyone can help out this noob

Thanks!

TEB63 Apr 20, 2010 7:30am | Post# 2

Hey there everyone,

What is the best way to use the 123 system, in terms of entry, exit, take profit and stop loss?

I think the 123 strategy is a great system but I cannot seem to make a steady profit with it, I keep losing as much trades as I win, and sometimes lose more than I win.

Would appreciate it if anyone can help out this noob

Thanks!

what are you doing now?

teb

witsnpips Apr 20, 2010 7:33am | Post# 3

Hey there everyone,

What is the best way to use the 123 system, in terms of entry, exit, take profit and stop loss?

I think the 123 strategy is a great system but I cannot seem to make a steady profit with it, I keep losing as much trades as I win, and sometimes lose more than I win.

Would appreciate it if anyone can help out this noob

Thanks!
the 123 strategy is not actually that good.

simpleguy Apr 20, 2010 7:38am | Post# 4

the system II
 
I would suggest you look at this thread and the FCR. It's a lot of reading but it's got some good stuff in it and it's all about the 123 set up.

Saidar Apr 20, 2010 9:12am | Post# 5

what are you doing now?

teb
I am using the 123 MTF indicator. It gives you values for the four parameters.

Saidar Apr 20, 2010 9:13am | Post# 6

I would suggest you look at this thread and the FCR. It's a lot of reading but it's got some good stuff in it and it's all about the 123 set up.
What thread? Can you please give me a link?

Saidar Apr 20, 2010 9:14am | Post# 7

the 123 strategy is not actually that good.
Ok, can you please mention another strategy that I can use instead?

Thanks

simpleguy Apr 20, 2010 10:39am | Post# 8

here you go
 
What thread? Can you please give me a link?
Here is the link to the system II thread: http://www.forexfactory.com/showthread.php?t=80290

I think that will work:

Saidar,

You seem like you are just looking for something that will work and start to make it work now. What time frame are you looking at?

If you are looking at higher time frames, I would look at Jacko's forex house of pain thread, the James 16 chart thread (I only use the pin bars from it, but it's an AWESOME system), and the Trend Trading chart thread. You can find them by using the search.

If you are looking for lower time frames: You can try the system II, THV (very solid system) my personal is the Forex Force. If you are going to do smaller time frames, take your time and get to know 1 pair, 1 time frame, and 1 entry & how to exit.

I would also look up Ronald Raygun's coin flip to work on your exits, IMHO that's the most important thing of trading.

golferguy99 Apr 21, 2010 2:39am | Post# 9

123 System
 
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Saidar,

I use a 123 system that I have pieced together. I trade it profitably. I will give you a brief look at it and if you want to hear more about it feel free to let me know. I use it on the 15 min time frame. I use TD points to make up the 123 pattern. I look for long trades when the market is going short and short trades when the market is moving up. I take the trade 1 pip of the high/low of the 2. I trail the stop as the market moves up/down. Let me know if you are interested in hearing more about it.

Golferguy99
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baron193 Apr 21, 2010 3:34am | Post# 10

Saidar,

I use a 123 system that I have pieced together. I trade it profitably. I will give you a brief look at it and if you want to hear more about it feel free to let me know. I use it on the 15 min time frame. I use TD points to make up the 123 pattern. I look for long trades when the market is going short and short trades when the market is moving up. I take the trade 1 pip of the high/low of the 2. I trail the stop as the market moves up/down. Let me know if you are interested in hearing more about it.

Golferguy99
Most of Vic Sperandio's stuff is interesting, most traders fail to understand 123's happen at major turning points (for the TF you trade).

golferguy99 Apr 22, 2010 2:02am | Post# 11

You are exactly right. Right when the trend begins to shift is when you have the best opportunity to trade a 123 setup. I also look for the next 123 set up after the first as a continuation 123 in the direction of the new trend. I only look for the continuation if the very first 123 of the new trend did not set up like I would want it to.

SeaPip Apr 22, 2010 2:41am | Post# 12

Key to the MINT
 
If you like 123 then check out HaroldFX thread

http://www.forexfactory.com/showthread.php?t=57116

keithhobbs May 23, 2010 7:25am | Post# 13

I am using the 123 MTF indicator. It gives you values for the four parameters.
i can you pot that indy?

sam69 May 23, 2010 1:55pm | Post# 14

golferguy99
 
Saidar,

I use a 123 system that I have pieced together. I trade it profitably. I will give you a brief look at it and if you want to hear more about it feel free to let me know. I use it on the 15 min time frame. I use TD points to make up the 123 pattern. I look for long trades when the market is going short and short trades when the market is moving up. I take the trade 1 pip of the high/low of the 2. I trail the stop as the market moves up/down. Let me know if you are interested in hearing more about it.

Golferguy99
hi, what do you mean by TD points?, is it an indi that marks the 123 points?

bogus May 24, 2010 9:05pm | Post# 15

1 2 3
 
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Heres my recent 123 trades.
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waves May 24, 2010 9:46pm | Post# 16

the key to trading 1,2,3 right, is that 2 is and abc...I trade damn near 100% and if I have an abc I get 2 entries most of the time. on the chart above I would have 4 positions in a sell off the last move down....how long you stay in, depends on if you have any idea on how to count waves........in the old days I waited for a 1.2.3 in the opposite direction in the same degree. as I got better, I learned better ways......I started a thread a few days back but the moderators decided to put in the rookie forum and kill it before anything could come from it...if you are not trading 1,2,3s well you have not properly defined the proper price action they are created by....sounds like alot of book hours ahead of you to piece it all together.......I have met precious few that have spent the time to do it, (many I have taught) but every one of them trades like a king

golferguy99 May 24, 2010 9:58pm | Post# 17

Sam69
 
A TD Point is Trademarked by Tom Demark. It is a candle pattern. The best way to describe it quickly is hold up your 1st, middle and ring finger. Look at your finger tips and that is a TD point. It takes 3 candles to make them.

bigjim1958 Jul 30, 2010 12:11pm | Post# 18

Additional indicators?
 
Saidar,

I use a 123 system that I have pieced together. I trade it profitably. I will give you a brief look at it and if you want to hear more about it feel free to let me know. I use it on the 15 min time frame. I use TD points to make up the 123 pattern. I look for long trades when the market is going short and short trades when the market is moving up. I take the trade 1 pip of the high/low of the 2. I trail the stop as the market moves up/down. Let me know if you are interested in hearing more about it.

Golferguy99
Hey Golfer:
I was wondering if you use any other indicators, i.e., moving average, only go long price above, etc., or do just use the 1,2,3, set up as if. I was on skype this morning, did I miss you or did you just not get on? Thanks for your reply and have a great weekend.

Jim

bigjim1958 Jul 31, 2010 8:03pm | Post# 19

Saidar,

I use a 123 system that I have pieced together. I trade it profitably. I will give you a brief look at it and if you want to hear more about it feel free to let me know. I use it on the 15 min time frame. I use TD points to make up the 123 pattern. I look for long trades when the market is going short and short trades when the market is moving up. I take the trade 1 pip of the high/low of the 2. I trail the stop as the market moves up/down. Let me know if you are interested in hearing more about it.

Golferguy99
Hi Golferguy:
Would you be kind enough to explain what kind of trailing stop and exits that you use. I've been trading FEB's method on the 5 minute, but it's a little too quick for me, would like to look at 15 minute time frame. Thanks.

Jim

golferguy99 Aug 1, 2010 3:06am | Post# 20

Trailing stop
 
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Jim,

First let me answer your first question. I use a 5 EMA set to close and a 8 EMA set to open. That is all that I use. I don't use them except for help in the manual trailing stops. Now, your second question. I use relative highs or lows depending on trade direction. If the relative high / low is below or touching the 5 ema I can use that as a point to move my stop to. Please see attached chart for reference of the placement of stop.
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