Trading Systems or Trading Setups

Dear all,

FF really has been the best thing that happend to me. I have met so many teachers here. Alot have been taught abt Forex in FF compared to any other. There is one ringing question in my head though, as traders what would be the ideal for us? Trading using one system or trading various simple chart setups?

True various setup will gear us in a different kind of play and not all setup works plus two or three setup can be happening at one time, which leave us in question...which do we take.

Having a system will streamline our ideas and we tend to wait for the 'perfect timing' to trade the system.

My point here is which would be our preference? Having various setups in our arsenal or keep trading off a system?

I'm definitely one for setups but constuctive comments are welcome. Plus it would be nice for those who trade off simple chart setups to share some which they take.

Jest

yea, been wondering bout that too myself.

Maybe we should create a poll
Im a chart setup trader

I use 2-3 different methods....but they can all be labeled as trending systems.

I use a normal DMI/EMA cross hourly trender as well as a Gann system that sometimes gets me in slightly sooner. If I miss or exit too soon, I use a break of the lows/highs for the previous or lowest/highest period.

I trade soley intra-day and rarely ever carry a trade overnight. So, if the trend continues, I need a method to re-enter at a safe level. For me, breaks of the lows work well Vs. selling/buying a pullback. Just kinda the way I prefer it.

Too many pullbacks typically indicate youre in the chop (bottom or top) and could be looking at a reversal. But the number of stop outs, in my opinion, don't justify pullback entries when the market is NOT in a strong trend....which we are not, by any means.

So, to answer your question, I think several (2-3) systems or techniques to enter based on market conditions, and whether or not you are re-entering a trend is the way to go. At least for me.

It seems to me, that to begin with using one system and sticking with it will get you the positive experience with the various different instuments(currency pairs) that you need to be successful. As you gain this experience and become familiar with each individual currencies habits and price movements, you can learn to adjust your strategy towards the individual currency pair.

Start small, you will get there. The only "Holy Grail" is you...

Mud and Ellis,

Thanks for your inputs. Well so there are traders who trades multiple systems. Mud how do you alternate your systems? Alerts?

Let me share my setups.

1. Pivots Points S/R
2. Box
3. Break of High Low
4. 200/500SMA Zone Play (rare)
5. Gaps (rare)

I'm intending to add more setups once i have got my tradestation up.
1. Bollinger Squeeze
2. $Ticks Fades

Jest

Systems usually don't work well in all market conditions. It's better to have a few different methods for all the various market conditions you can be faced with.

What works in a trending market usually doesn't work well in a ranging market and what works in a ranging market usually doesn't work well in a trending market. Then the flat markets ruin both systems.

The most logical approach is to find out what kind of market your dealing with and then implement the more appropriate strategy.

I agree. The currencies move in different ways at different times, and you can get stuffed by a system that is designed for one particular condition. My framework allows me to be sensitive to the changes in conditions and apply the appropriate strategy at the appropriate time. The 'setups' become more apparent when you can see these changes.

Trading Setup

System Doesnt Work q=

Well I'm Discretionary,Can't Blame Me

One system designed for one timeframe, one pair, one session, avoid big news. 92.86% of trades winners this month

I still don't understand set-ups

A system is more tighter and restricted.... As in its limited in its choice of trade setups

Like my simple system only has one method of entry really.... That's a "system"

And trade setups are just trade setups.... I have a few of those...

Bull candle low/bear cand high breakout that's one of my setups

Break of structure + 62/79% retracement that's another setup

Maybe a setup for you would be some shit like price bouncing a moving average as support/resistance.... Or a support/resistance rejection that can be considered a setup.

The system I am coached on which is not disclosed here is designed to pretty much provide opportunity in almost all trading conditions (as long as it's not a bank holiday and we are trading the correct time windows) that system adheres to certain setups....