• Home
  • Forums
  • Trades
  • News
  • Calendar
  • Market
  • Brokers
  • Login
  • Join
  • User/Email: Password:
  • 4:18pm
Menu
  • Forums
  • Trades
  • News
  • Calendar
  • Market
  • Brokers
  • Login
  • Join
  • 4:18pm
Sister Sites
  • Metals Mine
  • Energy EXCH
  • Crypto Craft

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Moutek made me go wrong or i have made mistake in analysis? 8 replies

Lies, broken promises,working strategies.....4 all newbies=me 21 replies

I'm tired of reading "I'd have made more but I made mistakes." 16 replies

Rules Are Made To Be Broken 1 reply

  • Trading Systems
  • /
  • Reply to Thread
  • Subscribe
  • 1
Attachments: Strategies Follow Rules, But Rules Are Made To Be Broken
Exit Attachments
Tags: Strategies Follow Rules, But Rules Are Made To Be Broken
Cancel

Strategies Follow Rules, But Rules Are Made To Be Broken

  • Post #1
  • Quote
  • First Post: Dec 3, 2008 4:58pm Dec 3, 2008 4:58pm
  •  mayorspread
  • | Additional Username | Joined Oct 2008 | 14 Posts
I have been studying about Technical Analysis for about 3 years now. I have used some strategies that have worked really great. But I have come to understand that successes don’t depend of the indicator or the strategy you use; it depends on how good you use the tools you have. And for tools I mean indicators, resources and knowledge. You must have the knowledge to indentify which indicator is the best to use in a particular situation and how much of your account you are willing to risk.

In order to make myself clear I give you an example. I develop a simple strategy. I use Bollinger Bands and a 15 EMA cross to confirm the signal and I trade under trendlines channels. So, I was trading in my 5 mins timeframe on December 1th as usual with a simple strategy. I was selling within this tunnel when I identify a very familiar pattern. At the beginning I didn’t recognize what it was, but I was shocked when I realize that I was facing a perfect Elliot’s wave formation. I have studied about this patterns formations and honestly I thought it was something very difficult to understand and very unlikely to happen. But look at the chart!!!

So I take advantage of the situation and I enter when the 5th wave formation was confirmed. I set my target in the support trendline. When the trend hit my take profit and it cross the support trendline. As it was expected the trend continues with a trend correction. I had seen an old support level before. So after the downtrend was confirm I set that support level as my next target. In fact, when the trend touched the support level it bounced back and the 15 EMA confirm a change of direction in the trend. As I was sure of the Elliot’s waves I set the next target just below my old trenline recently form as a resistance trendline. At this point my feeling get into play and I decided to wait for the next wave confirmation. Sadly the 15 EMA become flat and the trend turns irregularly. However, I took a deep breath and I set my last target at the old support level. I wait in this position for at least one and a half hour when the price close under my take profit at 1,2679.

All that said I have made 600 pips in this particular situation which could have only been 67 pips if I have followed just my strategy. A strategy must have its rules and we must follow them strictly. However, we must have a flexible system that allows as to introduce the right tool for the right situation.

http://charlesmcg.wordpress.com/2008...-to-be-broken/
Attached Image (click to enlarge)
Click to Enlarge

Name: Elliot Waves Formations.jpg
Size: 234 KB
  • Post #2
  • Quote
  • Last Post: Aug 27, 2017 11:00am Aug 27, 2017 11:00am
  •  faisal13
  • | Additional Username | Joined Mar 2013 | 200 Posts
A system that enters and exits trades that are only profitable. This step is probably what most traders really think of as the most important part of trading. No losses - ever. Such a system, if there were one, would make some trader rich beyond his wildest dreams. But the truth is, there is no such system. There are good methodologies and better ones and even very average methods that can all be used to make money. The performance of a trading system is more about the trader than it is about the system.
 
 
  • Trading Systems
  • /
  • Strategies Follow Rules, But Rules Are Made To Be Broken
  • Reply to Thread
0 traders viewing now
Top of Page
  • Facebook
  • Twitter
About FF
  • Mission
  • Products
  • User Guide
  • Media Kit
  • Blog
  • Contact
FF Products
  • Forums
  • Trades
  • Calendar
  • News
  • Market
  • Brokers
  • Trade Explorer
FF Website
  • Homepage
  • Search
  • Members
  • Report a Bug
Follow FF
  • Facebook
  • Twitter

FF Sister Sites:

  • Metals Mine
  • Energy EXCH
  • Crypto Craft

Forex Factory® is a brand of Fair Economy, Inc.

Terms of Service / ©2023