Trading is as simple as 1-2-3

Clean and clear...

I'll even put it on the proper chart for you, lol...

Yes this trade I ate the the -9, not that tasty, but I cut out the reverse leverage trading because sometimes that was even less tasty. I do from time to time recover losses with leverage but as a separate trade, still risky.

You weren't running that as a pure counter as Bo and I would know it though, were you? An equal-but-opposite trade to lock a bad trade in limbo?

A possible turn coming on the F40?

Heads-Up on CJ, though this one could bite. Extreme caution advised.

The same is true of UC. That Oil news later...

Here is an example I just took of a recovery trade this EJ +5.6 at 5x, wiped out a -20 on a CF trade earlier. When they work they're great, went they don't, they're not. So caution.

No I didn't take that the other direction and had I would have been burned as it hung up and came falling back. That is a good example why I don't take those reversals, though I have seen a fair share of them work also.

when using a SL are you using the same SL everytime...eg 9 pips.........or are you changing your SL from trade to trade depending on the size of the previous candle? The High or Low of the previous candle?

CJ went just fine...

The earlier UJ is still bubbling away...

I always set the same SL parameters +5 above the signal bar on a short, -3 below similar on a long.

Now sometimes if it breaks a new high or low on the trade bar and comes back through the open I may set the SL to the current bar. That is not per the rules of 1-2-3 but a bend in the rules. And I use it rarely.

Keeping those losses small is always a goal because getting them back is a lot tougher.

Out now with mere 50 points.. rather try small short..970
Will see day then go long as we are sitting on 100 day ma.

hal7 please check your PMs

Still truckin'...Maybe hitting the end now, though.

CJ still trundlin' on...

A little down time here and since a few questions were directed my way, and TooSlow asked me to expand a little on how I trade 1-2-3, I am happy to do so.

A little about me, I am an MBA in Investment Finance which is not all that useful in Forex trading where good instinct and persistence far outweigh what you might learn from a book. Also in my past life I was involved in the casino industry in computer operations of multi-million dollar progressive linked slot jackpots. Again I have observed some similarities to Forex trading.

I have been trading this method for one year now. I have been trading Forex since 2005. It is not my exclusive approach but I do spend quite a lot of time on it during London mostly. I trade about 4 methods besides this and it keeps me very busy. On HOLO I have been focusing only on GU.

What sets this method apart from most everything I have seen on FF is its simplicity and its focus on one idea without all the constant changes and endless indicators you see with the others.

Here is how I trade 1-2-3. Emphasis on "I" you need to determine what is best for you of course. My approach works for me and I tweak it along the way testing ideas. The core always remains the same, always. Yes, there can be some bending of rules but by and large stick to the main idea, and it is quite simple.

First off I focus on 12 pairs each hour. 10 get a bit more focus the last 2 interchangeable. They are in order of importance
GU, EU, GJ, EJ, JY, CA, CF, AU, NZ, EG, AJ, and CADCHF

I have them up on one screen only to observe and do my trading activity on another computer totally different platform and broker from MT4. I arrange my charts to focus only on those that have made the new hi or lo in the hour. I also set my trading screens up with SL in place so I can move very quickly.

My SL is preset for +5 to the top of the hi, and -3 to the bottom of the lo for a sell or buy.

Once the hour triggers I am now riveted on price action and patterns. I have no real insights into what is better or best to trade or why I pull the trigger. There are many variations. Sometimes price will drop immediately. Sometimes it will move toward that hi or lo or smash right through it.

I try to avoid the big stop losses and I would say my average will run from 5 to maybe 15. It is nice to get a short stop on but also they can be taken out pretty easily also, so it is a double edged sword. I also have been experimenting lately with pulling out of a trade going against me quickly to save pips. Yet I have to say I have done that only to have it turn back and get my profit after I am out which is quite frustrating. So never assume you have it figured out. It is what makes trading the challenge it is.

Once in the trade I am focused on one thing, and on thing only. Getting to +5. Once there I have my trade. I have fiddled with what I take off here and probably will continue to fiddle with it. I used to take off 80-90% and leave my stop in place. Now I am taking 50% off moving my stop to BE. That takes me out a lot but it also preserves profit.

Next I am looking for the move and trying to ride it. Sometimes If I get to +10 I will switch to a 10 trailer. On others I will wait until it gets to +20 before going to the 10 trailer. My next move if I get to +40 I will then switch over to a 20.

When you look at these hour charts you will see that one of the hi's or lo's will be the one for the day and those are nice to be on when you can ride them all the way. That is my ultimate objective and sometimes I do get it.

Once in a while I will latch on to a monster move. My record over the past year has been +300. I may have been on the EJ.

Now I have experimented with loss recovery and I am probably inclined to say don't attempt it. It is kind of like fools gold. But being the fool I am, I usually persist with trying to make it work. That said what I do from time to time is take a 5x leveraged trade usually looking for a minimal pip trade.

So for example if I lost 12 pips on a trade I will divide by 5 and add 2. So my profit will be set for 4.6 and I will have cleared my loss with a nice profit with the added 2.

Now when it works it is fantastic because it wipes out that loss and the related bad feelings. But face it 5x is a chunk of of change so it restricts initial trade level. Also if it fails you have now a much bigger problem to deal with.

So my inclination is to stay with straight trades with a 1% risk of total trading capital risk.

I used to take these trades on the same trade as the loss as a reversal. Often it worked with there was a lot of momentum in the market like early London. Or those persistent trend moves we see. However there is much risk in this and especially around news releases when spreads and surging moves can easily wreak havoc.

So now if I take that leveraged trade it is on an individual hourly trade set up.

That's it. Not rocket science. You follow the basic rules and trade over and over and over again and things you see will sink in. You will touch hot stoves on occasion, you will have days when every trade works. Don't get too excited that will almost certainly change tomorrow. But as I have said in the past, on balance this is a very solid method that will give back what you put in and much more... good trading

Hi Hal. Nice roundup.

One small thing - when you say CA, you mean UC (USDCAD), right?