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The Paradox System

  • #11,661
  • Edited Oct 27, 2017 12:49am Oct 26, 2017 11:08pm | Edited Oct 27, 2017 12:49am
Rules for consolidation:
a: The 2 hour is your trading/trend chart. - Purple x white
b: Use the Daily Chart S/R as reference for consolidation. - SAR at bottom
c: You can trade either short or long in consolidation. - Long
d: Trade from resistance to support and vice-versa. Do not trade from center in consolidation. -Trade from bottom with Daily SAR, 4h DB, 2h DB, 1h purple x smooth
e: Both upper and lower bands are resistance and support in consolidation. - 2h hit lower band waiting on EMA hit


Long at 0400 bar
yellow news at 12am, Red news at 6:30am my time
This long would take me close to the Daily EMA where I would look for my next trade

I would like to note the risk factor for this trade (as far as i can see it at this point)
There is a risk for ever trade and as Dove says the Paradox if read and followed correctly can eliminate risk.
Is the risk too high for this trade?
Daily- Consolidating, Macd Down, EMA arrow down,
4H- 4 horsemen full down, Room to the 100 fib 33 pips
2H- EMA x ROMAR, Bottom BB open, MACd down
1H- EMA slider, purple hasn't crossed EMA yet
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  • #11,662
  • Oct 26, 2017 11:27pm Oct 26, 2017 11:27pm
Quoting The-Force
{quote} Evaluation: I closed the trade before the news at the o6oo bar By doing this I broke a 2 rules. 1 let your trade run 40 tp or 40 sl, 2 close your trade 5 mins before RED news
Hi Force,
Maybe you are not quite right with those two rules.
The 2nd rule you have written contradicts the 1st & you acknowledge that the 2nd rule is a rule.
So when we enter a trade we go 40/40. We are ok to close the trade at least 5 minutes before Red news - at least 5 minutes before does not mean only at 5 minutes before... in the way I am reading the rule.
Eg: in my trade yesterday, the only reason i was checking the charts & noticed I had stuffed up the actual time of Red News was because I was going to close the trade off at the close of the 2 hours bar (regardless of pip loss or profit), which I thought was going to be 45 minutes before the red news. I was wrong & the rest is history & a lesson. I do not currently see that I had broken the two rules you have discussed. Had my times been accurate I guess I would have planned to close off the trade at the open of the 0600 bar as well.

Is everyone in agreement with me here in that we close the trade "at least" 5 minutes before Red News,
the rule is not "must be at 5 minutes before Red News".
??

So in general Force, I don't see a rule being broken in your application of the above two rules - & am happy to be told if I'm incorrect.

There is still only 1 trade per day - so don't be thinking to get sneaky. A trade is still a trade regardless of how an entry or exit is completed.

Hoping this helps.

Oli
If you make up your own rules then the story is sad.....
  • #11,663
  • Edited Oct 27, 2017 12:09am Oct 26, 2017 11:43pm | Edited Oct 27, 2017 12:09am
Quoting OliveBranch
{quote} Hi Force, Maybe you are not quite right with those two rules. The 2nd rule you have written contradicts the 1st & you acknowledge that the 2nd rule is a rule. So when we enter a trade we go 40/40. We are ok to close the trade at least 5 minutes before Red news - at least 5 minutes before does not mean only at 5 minutes before... in the way I am reading the rule. Eg: in my trade yesterday, the only reason i was checking the charts & noticed I had stuffed up the actual time of Red News was because I was going to close the trade off at the...

Thank you Oli

the way i see it...

When I closed my trade at 0600 bar i broke a rule "40/40" (because I did not have a rule to close my trade)

And your right The rule is if there is a red news close trade 5 mins before
  • #11,664
  • Edited Oct 27, 2017 1:07am Oct 26, 2017 11:45pm | Edited Oct 27, 2017 1:07am
NEWS:
US GDP 0830
Michigan CSI 1030

Thurs/Fri Trading Plan


Daily:

ROMAR - Support
EMA – support
Parabolic - support

Checklist:
Last MACD 0 Crossing - down
Last EMA Alert Arrow - down
Fibonacci – red

Notes: SAR/DB attached at top at 134.483 with both divergences attaching. SAR attached to current candle at 132.58

H4:

ROMAR – support
EMA - resistance
Parabolic – resistance

Checklist:
Last DB Attachment – Bottom at 132.58
Last SAR Attachment – Bottom at 132.58
Fibonacci – Red

Notes: Notes: SAR/DB attached at bottom of previous candle at 132.58 along with lightskyblue swing line.


H2:
ROMAR - resistance
EMA - resistance
Parabolic – resistance

Checklist:
Last MACD 0 Crossing - down
Last EMA Alert Arrow - down
Last DB Attachment – bottom at 132.58
Last SAR Attachment – bottom at 132.58
Fibonacci – green

Notes: Green fibo, MACD down but becoming less negative, EMA arrow down, DB/SAR connect at bottom on two previous candles, white cross purple with opening above smooth, smooth nearby, 77 pips to romer/PSAR resistance

H1:

ROMAR - resistance
EMA - resistance
Parabolic – resistance

Checklist:
Last MACD 0 Crossing - up
Last EMA Alert Arrow - down
Fibonacci – green

Notes: DB/SAR attached at bottom at 132.58 with gold divergence and lightskyblue swing line several candles ago. Most recent SAR detatched from DB, and attached at top 2 candles ago indicating possible new direction of trend.

Notes:
Market in consolidation so can trade both ways. H1/H2/H4 charts display DB/SAR attaching with swing line at the bottom. Near the bottom of trading zone in H1/H2/H4. Daily chart has most recent SAR/DB attachment at the top with recent SAR attach at bottom, indicating possible downtrend targeting the 100.0 fibo- not sure how soon that will happen. H2 has green fibo, DB/SAR connect at bottom on two previous candles, white cross purple with opening above smooth, smooth nearby, and 77 pips to romer/PSAR resistance. The MACD is down but becoming less negative. I see an opening to go long and will enter at the current candle.

Entry:
Entered long at 132.82 (after spread) with TP/SL +/- 40 pips. There is high impact news at 0830 so will exit trade if it has not reached TP or SL.

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  • #11,665
  • Oct 27, 2017 2:41am Oct 27, 2017 2:41am
As I am learning I can see The PARADOX needs/requires understanding and PATIENCE
Dove Says the main purpose for our trading plan is understand if we are in consolidation or trend
Do you know the difference between the two? and how do you trade consolidation?

I have a long way to go and a lot to learn.

But at this time I want to share my insight as I only see it fit.
I have been learning about The Paradox since June this year,
and as i said i have a lot to learn!
I have never traded live...

I would like to tell you why I want to trade....

LIFE (as I see it) Is about TIME!
How much time do you have?

MONEY has no value other then TIME (free time "your time").

For example

IF you had to choose between...

A month to live with 10 million dollars

Or a Life to live with 1 month salary.

What would you pick?


The Paradox IS the sight can you read it.. (maybe Im being a little too dramatic)
  • #11,666
  • Oct 27, 2017 3:35am Oct 27, 2017 3:35am
Quoting The-Force
As I am learning I can see The PARADOX needs/requires understanding and PATIENCE Dove Says the main purpose for our trading plan is understand if we are in consolidation or trend Do you know the difference between the two? and how do you trade consolidation? I have a long way to go and a lot to learn. But at this time I want to share my insight as I only see it fit. I have been learning about The Paradox since June this year, and as i said i have a lot to learn! I have never traded live... I would like to tell you why I want to trade.... LIFE (as...
Hi Force,
Totally agree with you. The Paradox is not just a trading system, it is more like a lifestyle like Buddhism. Religion and faith is closely related with it. To be honest i joined the thread one year ago but after few pages i left it because of time and determination lack. One month ago i remembered it again and once again i downloaded MT4. I thought i´ll make quick cash, will solve all my problems etc and of course i burned all my demo accounts as i traded different pairs without focus and without understanding the basic rules. But i kept reading each post. Now i am on page 363 but already noticing changes inside me and the main thing i have managed to curb my EGO which, i must admit, is our main enemy. Also i am learning PATIENCE which i never had in my life. Does not matter if i become a great trader or not, what matters is that i am noticing big changes inside me, in my mentality. So thanks Dove for your valuable time here on FF.

Peace to all
linadze
  • #11,667
  • Edited 4:49am Oct 27, 2017 4:20am | Edited 4:49am
Quoting SixSigma
NEWS: US GDP 0830 Michigan CSI 1030 Thurs/Fri Trading Plan Daily: ROMAR - Support EMA – support Parabolic - support Checklist: Last MACD 0 Crossing - down Last EMA Alert Arrow - down Fibonacci – red Notes: SAR/DB attached at top at 134.483 with both divergences attaching. SAR attached to current candle at 132.58 H4: ROMAR – support EMA - resistance Parabolic – resistance Checklist: Last DB Attachment – Bottom at 132.58 Last SAR Attachment – Bottom at 132.58 Fibonacci – Red Notes: Notes: SAR/DB attached at bottom of previous candle at 132.58 along...
psar on the 1hr didnt even flip not even an open candle above 1hr ema for a trade long and smooth on the 2hr hasnt cross purple yet for a trade to be taken long. now smooth becoming a slider. ema crossed romar on the 2 hr so the trend is down. what I did is take entry short on 1hr psar hit in frankfurt open and got my 40. When ema romar is in sync thats the trend until ema cross purple to trade against romar trend. even if your sl 40 dont get hit, still not the best entry for a trade long

Purple, White, Smooth, PSAR:

Your four trading indicators Purple, White, Smooth, and PSAR are the resources for your profit. These 4 horsemen deliver the visual of each swing. White and Smooth must cross Purple before a trade can be taken. And in a slider (consolidation) EMA must also cross Purple for a reversal. If not; then the slider will continue in the original trend. And you use the 2 hour chart for this reference.
To reach that level of determination is a matter of the will.
  • #11,668
  • Oct 27, 2017 5:40am Oct 27, 2017 5:40am
Quoting TraderMarcos
{quote} psar on the 1hr didnt even flip not even an open candle above 1hr ema for a trade long and smooth on the 2hr hasnt cross purple yet for a trade to be taken long. now smooth becoming a slider. ema crossed romar on the 2 hr so the trend is down. what I did is take entry short on 1hr psar hit in frankfurt open and got my 40. When ema romar is in sync thats the trend until ema cross purple to trade against romar trend. even if your sl 40 dont get hit, still not the best entry for a trade long Purple, White, Smooth, PSAR: Your four trading indicators...
Hi TM, looking on H2 at the time of your trade, may I ask what gave you the confidence to risk going short short against a H2 Purple/White cross, fibs turned green, the H2/H4 DB with divergence and the Daily SAR/50.0 fibo, when your +40 target was below all of these?

Was it solely off the H1 Parabolic hit?

Cheers,
Andy
From the ashes of disaster grow the roses of success - Grandpa Potts, 1968
  • #11,669
  • Oct 27, 2017 7:09am Oct 27, 2017 7:09am
Quoting TraderMarcos
{quote} psar on the 1hr didnt even flip not even an open candle above 1hr ema for a trade long and smooth on the 2hr hasnt cross purple yet for a trade to be taken long. now smooth becoming a slider. ema crossed romar on the 2 hr so the trend is down. what I did is take entry short on 1hr psar hit in frankfurt open and got my 40. When ema romar is in sync thats the trend until ema cross purple to trade against romar trend. even if your sl 40 dont get hit, still not the best entry for a trade long Purple, White, Smooth, PSAR: Your four trading indicators...
This question is for anyone regarding Trader Marcos post: Wouldn't the Psar be eliminated as resistance once the purple crossed over the white on the 2hr chart? I'm trying to find in the rules and thread if white sliding under/over purple negates the Psar rule.

Great work TM and others for recognizing that the trend was down and that Psar was a strong resistance which allowed a 40 tp back down to the 0.0 Fib. Thanks again for everyone posting their comments/self-evaluations, these really help me understand this system better.
  • #11,670
  • Oct 27, 2017 7:14am Oct 27, 2017 7:14am
Quoting Andiroo
{quote} Hi TM, looking on H2 at the time of your trade, may I ask what gave you the confidence to risk going short short against a H2 Purple/White cross, fibs turned green, the H2/H4 DB with divergence and the Daily SAR/50.0 fibo, when your +40 target was below all of these? Was it solely off the H1 Parabolic hit? Cheers, Andy
In every way TM's was truly an amazing and masterful entry and I more than welcome further insight from him! But Andy, perhaps he already answered your question---simply a pullback within a downtrend. Until the trend changes trade the trend. I know for me I repeatedly get lost in the details/specifics and forget the big picture basic stuff.
  • #11,671
  • Oct 27, 2017 7:45am Oct 27, 2017 7:45am
Quoting Therapsid
{quote} In every way TM's was truly an amazing and masterful entry and I more than welcome further insight from him! But Andy, perhaps he already answered your question---simply a pullback within a downtrend. Until the trend changes trade the trend. I know for me I repeatedly get lost in the details/specifics and forget the big picture basic stuff.
Maybe you're right Mark - I've never traded the H1 this way, I would be awaiting a SAR on the H2 to consider this trade....even then the 0.0 fibs and DB (at that time) would have possibly made me stay away?

Like you say, maybe we've missed the bigger picture.

Cheers,
Andy
From the ashes of disaster grow the roses of success - Grandpa Potts, 1968
  • #11,672
  • Oct 27, 2017 7:51am Oct 27, 2017 7:51am
Hello Traders

Regards the trade Marcos did, there is a rule you are missing on the 2hr, and that rule would have stopped you from going long. Can anyone tell the group what the rule is, and remember I am talking about the 2hr chart here?

Regards

Shaun
Nobody can be told what The Matrix is. You'll have to see it yourself.
  • #11,673
  • Oct 27, 2017 7:54am Oct 27, 2017 7:54am
Quoting bsverma
good morning sir g eur/jpy 27/10/2017 daily romar - support ema - support psar - support check list last 0 macd - up but at this time daily candle arrow down ema arror - red bur not fixed untill next candle open db/sar - both db/sar atteched at top 134.483 sar atteched at 132.582 fibo - red fibo market opened above 50% fibo b/b - extended note - daily consolidation market white purple cross db atteched at top next db at bottom sar atteched at bottom but daily candle not reached target may be untill next candle 4 hr romar - support ema - resistance...
self evaluation -- 12 pip loss i remove my trade 5 minute before red news u s d
this trade is not good so it goes my against smooth slide over purple and 1 hours down trend so should be wait for smooth cross but i am taking here buy entry gold divergence attached to previous candle only this factor for buy here may this is not enough for buy it may be gone 40 loss if i not remove
  • #11,674
  • Oct 27, 2017 7:57am Oct 27, 2017 7:57am
Quoting shinny
Hello Traders Regards the trade Marcos did, there is a rule you are missing on the 2hr, and that rule would have stopped you from going long. Can anyone tell the group what the rule is, and remember I am talking about the 2hr chart here? Regards Shaun
Hi Shaun,

Do you mean Post 10127?

White crossing Purple does not eliminates the TREND nor puts the market in consolidation. All it does is eliminate the power of the Parabolic in consolidation. The only thing that eliminates the Trend is the H2 Parabolic flip. It is then you are in consolidation and you can trade both ways.

Even if the market goes sideways in trend the market is still in trend. Going sideways gives the market a chance to reverse with EMA and the Parabolic holding the trend and then reverse with the H2 Parabolic flip. And going sideways does not mean you can trade both ways. ONLY in consolidation can you trade both ways and there are many variables as for consolidation and you need to know all of the variables.

Regards
  • #11,675
  • Oct 27, 2017 8:00am Oct 27, 2017 8:00am
Quoting Cili
{quote} Hi Shaun, Do you mean Post 10127? White crossing Purple does not eliminates the TREND nor puts the market in consolidation. All it does is eliminate the power of the Parabolic in consolidation. The only thing that eliminates the Trend is the H2 Parabolic flip. It is then you are in consolidation and you can trade both ways. Even if the market goes sideways in trend the market is still in trend. Going sideways gives the market a chance to reverse with EMA and the Parabolic holding the trend and then reverse with the H2 Parabolic flip. And...
Nice try, but not quite there I'm afraid.

Look at the 2hr as it moved down, what happened?
Nobody can be told what The Matrix is. You'll have to see it yourself.
  • #11,676
  • Oct 27, 2017 8:04am Oct 27, 2017 8:04am
Purple did not cross over ema for the parobolic flip for the signal to go long.
  • #11,677
  • Oct 27, 2017 8:09am Oct 27, 2017 8:09am
Let me rephrase and hopefully help you. Not only would what have happened on the 2hr stopped you going long, it was also a signal to go short!!!
Nobody can be told what The Matrix is. You'll have to see it yourself.
  • #11,678
  • Oct 27, 2017 8:14am Oct 27, 2017 8:14am
Quoting shinny
Let me rephrase and hopefully help you. Not only would what have happened on the 2hr stopped you going long, it was also a signal to go short!!!
macd signal down which is also strong smooth slide over purple
  • #11,679
  • Oct 27, 2017 8:15am Oct 27, 2017 8:15am
Quoting shinny
Let me rephrase and hopefully help you. Not only would what have happened on the 2hr stopped you going long, it was also a signal to go short!!!
The White/Smooth cross long before (still hasn't happened of course) the EMA/Purple cross = slider back into downtrend.
  • #11,680
  • Oct 27, 2017 8:19am Oct 27, 2017 8:19am
Quoting shinny
Let me rephrase and hopefully help you. Not only would what have happened on the 2hr stopped you going long, it was also a signal to go short!!!
EMA/ROMAR cross, both resistance, rule not to trade against true trend
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