Consequence Pilot Level Trading

Consequence EL Trading

Trade Price Consequence… in other words, follow the price like a hound dog to plant winners.
Simply following the footstep of the price by trading the hiccups which automatically keeps you intact with the current direction inside the short TF of 5M.
With this method we only look for short gains till achieve the daily goal and turn off the platform.

The details…

All you need is your two sets of eyes, couple of horizontal lines to determine your next entry and some commonsense.

Early Level (EL)… every time there is a price hesitation and 2 candle pullbacks, you got yourself a trade-able Level… You MUST only trade the earliest developed level and be quick to void the previous one. Your have two options to draw your EL's... you can draw it at low or high of the candle (like the chart image below) or at the close of the candle. I personally use both ways depending on the market condition and the size of the wicks... however mostly I use the close.

No indicators of any kinds to indicate anything whatsoever.. such as where the trend could be or going to be or turning or whatever a heck else, too much analysis in scalping is irrelevant if you ask me… snipers get snip in the end, lol.

Target… I look to snag 5pips out of time unless price in supremely generous and gives away more on some striking move.
Stop… I look to not get snagged for more than 5 pips on an average… the goal is to have an average loss of 5 or less.

So, there are no set in stone target/stop of 5 & 5 for the purpose of giving the trade the necessary room and time for not falling victim to premature exits. However an emergence hard stop away from the heat, is necessary, ie 20-30 pips... and definitely the stop to not be beyond your opposite pending order so you would avoid being in a hedge situation... one trade out of time and never two open trades at the same time... this will keep you safe from getting stuck in large losing trade to act as a an eliminator.

This is very much a hands on style of trading with visual stop/target where it requires a true scalper skill for quick, but balanced thinking, feeling and reacting.

The plan is to bank a quick-clean winner, period… anything short of that sequence would consider as a sign of weakness for that level at that time.. which urges the act of survival-seeking play game to exit for the least damage or a breakeven one… and yes, all manual baby.
To give you an idea of a busted trade, it would look like: a sharp move against your position quickly after trigger, or a travel of 5 pips or more against your position quickly post trigger, or trade simply taking too much time to make a move either way in a hanging mood… these are all pretty good signs of weakness from top of the list which indicates, to exit, to exit the trade and look for the next one.

This thread will show you how to sharpen such skills with my hands on live play with a small TE attached for reviews etc,.
I have traded this way for a long time and some of this kind of skills and tactics have been presented and used in my Scalper thread as well which some of you might have followed in the past.

Ok… daily goal is 15 pips… the quest to get 15 each day and no quitting till you get it. On the flip side, if you lose 20-30 pips it’s wise to stop for that day.

MM… I highly recommend to risk no more than 2%... for beginner’s go down to 1%. The skill full players with small accounts can risk more but no more than 5% ever, with large accounts risk 1%... I personally risk 1% on my large account and for small account like the TE attached 4-5%.
The calculation will go like this: balance x 1% / avg loss = pip size ( $1000 x 1% = $10 / 10pips = $1 or 0.10 lot size).. now average loss will vary for everyone... mine is no more than 10pips ever at worst and usually around 5pips.

Pair… I only trade the EU for various reasons… low spread, quicker fill, higher liquidity factor as a leading fx pair, more reliable moves and more importantly of all, sticking to one pair for better focus concentration to develop the necessary feel/sense to trade it masterfully.

News… watch out for major red EU news… no trade 10 minutes before and after price settle down... prior to news if you got a pending order you should delete it... if you got a ongoing trade I advise to close.

Working hours… EU open to close.

… and last but not least the good ol Filtering factor… it is useless and I don’t use it, point blank. It only brings second guessing, confusion, complication and worst than all, it would take away the simplicity for not much of a benefit. Please do not bring it here, its a zero tolerance state.

Last but not least please be respectful at all times… no arguing, no taunting, no nagging, no whining, no cussing, no overall f-ing around… trading is a serious business, treat it like one… on the flip side, positivity, humor, overall energetic vibrant attitude and activity is fully recommended and welcome.

oh almost forgot... a lil about me.. I am a blunt straight talking sob.. but fun loving guy who keeps it real.

I think I have covered most… welcome to my thread.


Regards,
Empire



Vocab:
EL = Early Entry Level.. QCW = Quick Clean Winner.. DO = Daily Open.. DG = Daily Goal.. FO = Fake Out.. MM = Money Management.. DB = Daily Brief..

My Currency Market/Trading philosophy…

The currency market is a market of constant changes and sudden changes… moves happening at will with no reasonably logical or structural elements behind it, period… at least this would be a fact for short term trading. Hedge funds, banks, major players styling long term with all the money in the world and access to plenty of pre-hand information would consider as a different ball game than regular retail trader.

Therefore, I do not give any weight to probabilities nor market sentiments… there are no edge based on such market philosophy. The edge ultimately will come from skillfulness of maneuvering with the market. I trade current… what price is presenting at the moment, is what the reality is… so following the footsteps of price will free one from all kinds of analysis paralysis pressures that ultimately breaks down the trader.
I am bound to take my chances at the earliest level price presents and to defend aggressively against it in the case of fake outs. I would be involved in any and all market conditions with no fear of losing because of the defensive skill possession. I do not discriminate one signal for another or one market condition, s/r zones, s/d zones or etc, over another… the perception is the reality… no cherry picking, they all present the same amount of chance of achievement and failure.
By staying intact with prices footsteps I feel I have the best chance to win in this market with a solid trading plan in place. Trading in such fashion benefits in two major areas… one, guarantees to be in every break of the market which results in not missing out on any wining moves… two, develops this strong sense and market feel to make the better decisions in the heat of the battle… so to say, the more attached and involved, the more intuitive.

so as follower you can expect and learn couple of major elements above all as a core..
1- Learn to attack and defend at the break of all Earliest Levels (EL)
2- Courage and ability to trade all and any Market Condition.


Important posts to read as the thread moves on:
http://www.forexfactory.com/showthre...48#post7743448

I would need to give out a brief explanation of the chart above which I would do a bit later.
If you have any questions post it and I'll attend to it.

ok the chart above..
not messing up the EL is very important.. you want to get in at the earliest position possible.. why? well this is the way to fight off chop on super range days.

all the horizontal line the red and green are the Entry Level EL.. as soon as you see a move hesitation pulling back with couple of opposite candle forming a the slightest loop alike shape, you should draw your line and place your buy stop order 3-4 tenth of a pips above or below the EL.. the up and down arrow are all the EL who have been triggered for the trade.
Now it's important to cancel out the EL's that no longer are valid.. so focus your attention to the blue X and check mark.. this when a the old level is invalid (X) after new level (check mark) in the same direction at earlier position is created.. the new level is the one for the valid play of that direction and the old one to disregarded for ever.

The two red X's are just simple example of your last recent EL's to play from.. the upper one valid for buy-stop and lower one for sell-stop.

This is an important clarification to keep in mind to implement for better success.

d

i like your way using horizontal line , its seem played S/R or break and hold some level...do you think it will ok if I aplied to hourly candle instead of 5 M candle?

secondly, do you consider other line stuff like fibo, pivot, closing day line ?

The last one, do you trade London and NY session only ?

Best Regards

It could work on anytime frame but it wont be scalp.. it would need different structure of stops and target I assume.

No, I do not consider any of that stuff or anything else.. just commonsense.. for example if the price is at low or high adr I be much more cautious and be less tolerance on possible turbulence and etc..

I trade till I tag my daily goal.. which starts from EU open and take up to close of it.. which overlaps the NY for couple hours or so... but most times I am done before it reaches the end session.
The goal is to make money everyday in most minimal time.

Hey, good to hear from you Empire, I'm in on this one,
even though I'm still using the magic MACD indicator.
still trading NY session EST.

Good method but maybe it seems you would be burned in the ranging market, did you try it in what market conditions?

Today i reached my target within couple of hours into eu... but it was a great day to bank a lot more than 15 if i had continued.. however in the same token you would be risking losing out the 15 and get in the dog fight to get back to 15 thinking long run.
it's up to each traders agenda to have different approach and tactics to make post trades.. and I do it some times.. l drop the load or maybe when I get lucky on one particular trade and get 20 instead of regular 5.. so I got house money to play now.. things like that.

I would consider to post the days chart at end of trading day to see all possible trades and when the Daily Goal was reached and so forth..

talk later..

good to see you brother, welcome..

all conditions..

That is why the EL recognition is vital, to even make money in 20-30 pips range or at least survive it..
later on in this thread you would see me hands on in such days as to how it supposed to be handled..

nevertheless, everything has a weakness of some kind otherwise me and you and million of others would have been already a gizillionaire pal, lol

Subscribed. I like this kind of trading.

Looks interesting, FX. I will look at at chart or two to see how it works on another pair.

Interesting..... I will follow this one....

Pardon my ignorance.... but how do one insert these short red/green lines on the graph... ?

Using Metatrader 4 it is a trend line

Hello brother do you have plans to share your indicators?

Thank You

Thank u Preddy

Doubleclick the trendline to put it in edit mode. When in edit mode, right click the line and from the dropdown menu select "Trendline Properties" (first option).
You should get a popup form with three tabs, select the tab named "Parameter". Uncheck the box labeled "ray".
All sorted....

Empire, do you have any recommendations on how you would set stops and targets trading this way using 1 hour charts?

To trade this method you need no indies.. the ones you see in my charts are just simple informational such as clocks and adr..
sure i put the in the first post.

nothing that i can be sure of to be honest..

okay cool, thank you for the response. Look forward to learning as much as I can from you. Iv been following your journal for a long time praying you would teach your ways eventually.