Monthly Fozzy Method

Has anyone else looked at a monthly chart with some of fozzy's rules on it? Here is my setup, 8ema on 8rsi, and 28ema on bars. I like to trade in the direction of the 28ema, but I do use personal discretion when making trades. Your thoughts?

Paul

no this is not asking you for back tests, but for your stop loss!

smart try

Hey now, i'm being (somewhat) serious.

paul, any system as widely used as the fozzy WILL work.the question is will the average trader/newbie (me included) have the patience to take a trade only once a month?

Hi paul2...........

I believe "in theory" the basics of the Fozzy method will 'work' on any time frame and the corresponding chart. But there are some questions and issues that each trader would need to consider, whether they are trading Monthly, Weekly, Daily or whatever time frame they prefer. coolshades has already addressed two; larger time frames require larger stops and more time for the method to develop on that chart. Fozzy on the Daily provides a nice balance of the pertinent factors and results in good profit when managed correctly; for most traders. But there are some traders who for a variety of reasons are not comfortable trading on Daily charts. "Comfort level" as well as account size will have a definite impact on your proposal.

Actually on a monthly time frame, for a given pair you may only have 1 trade per year (as in the above chart). That's a LOT of waiting. :-)

If you were looking to enter some long-term carry trades, a monthly (or even weekly) fozzy might be a useful tool.

FYI- It's impossible not to freak out when you are making a lot of money one day, then a week later, you're loosing a lot of money, then another week later, you're back up.

Unless you have nerves of steel, don't bother.

Just look at every trade as a probability that may or may not work out.

Don't use money you can't afford to lose, treat it as a tool.