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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #34,741
  • Dec 6, 2017 9:18am Dec 6, 2017 9:18am
Update: My expected TP would have been hit. Not proud about how I traded this, but happy that my analysis worked.
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  • #34,742
  • Dec 6, 2017 9:25am Dec 6, 2017 9:25am
Quoting Dropplan
Mr. Pip, I'm trying to figure out your thought process for your entry on your "long term" trade. Can you explain when you get a moment? Thanks...
my thought process is that the long term expectation is for a nsh price had realigned itself with that by producing a shorter term nsh so i entered on the correction.
If you fail to plan, you plan to fail.
  • #34,743
  • Dec 6, 2017 10:02am Dec 6, 2017 10:02am
Hello Damian & fellow traders.

Firstly thank you Damian for the incredible patience and dedication that you have shown in getting us to become better traders. I have been trialling the system for a while now and at first could not get it to work for me. I kept with the program and persevered whilst watching all the videos and back testing for 1000's of hours. Finally it has started to make some sense. The hardest bit for me was identifying the order flow. I found the easiest way to get round this is to work out how many pips the swings cover and if you are comfortable with the Stop Loss. Everything else falls into place when the correct order flow is traded. On the whole I have become profitable, but am having 2 problems that eat into my profits.

1. When a successful trade has fulfilled either to 127 target or trialling with Stop Loss, I find it difficult to find another entry. I wait for pullbacks to structure and ratio but these tend to extend further and further until the order flow changes to something unaffordable. Am I doing something wrong here / any advice on this scenario?

2. Waiting for rotation candles on entries nearly always (after adding on spread) gets a negative risk/reward. I remain positive overall as a result of more winners than losers, but losers, for me, are bigger hits per trade than winners. I remember Damian saying that 1 winner covers 2-3 losers somewhere - not for me. What am I doing wrong here?

Any advice help greatly appreciated. Happy trading all.

Sid from London.
  • #34,744
  • Dec 6, 2017 10:42am Dec 6, 2017 10:42am
Quoting SidE1
Hello Damian & fellow traders. Firstly thank you Damian for the incredible patience and dedication that you have shown in getting us to become better traders. I have been trialling the system for a while now and at first could not get it to work for me. I kept with the program and persevered whilst watching all the videos and back testing for 1000's of hours. Finally it has started to make some sense. The hardest bit for me was identifying the order flow. I found the easiest way to get round this is to work out how many pips the swings cover and...
Maybe you could post some charts of your trades with entries, exit,... Would be easier (also for Damian) to give you comments.
  • #34,745
  • Dec 6, 2017 10:55am Dec 6, 2017 10:55am
Quoting Coreg2004
{quote} GM, so far so good, thank you for asking {image}
Clean trade, congrats.
  • #34,746
  • Dec 6, 2017 4:36pm Dec 6, 2017 4:36pm
Hope this works..... first time

As hopefully you will be able to see from attached file of actual trade taken USDJPY, I identified and entered sell on pullback to structure and fib value. Not being happy with rotation I waited for a little follow through with second sell candle. Trade came through nicely and I was taken out while trailing. Risk/Reward was not good when you include spread and size of rotation candle. Therein lies my first issue with risk/reward in earlier question.

Once trade completes, where would you enter again? Waiting for pullback for a re-entry makes the swing too big and changes order flow I believe. Guidance / Advice would be gratefully received.

Many thanks.

Sid.
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  • #34,747
  • Dec 6, 2017 7:52pm Dec 6, 2017 7:52pm
Quoting SidE1
Hope this works..... first time As hopefully you will be able to see from attached file of actual trade taken USDJPY, I identified and entered sell on pullback to structure and fib value. Not being happy with rotation I waited for a little follow through with second sell candle. Trade came through nicely and I was taken out while trailing. Risk/Reward was not good when you include spread and size of rotation candle. Therein lies my first issue with risk/reward in earlier question. Once trade completes, where would you enter again?...
I am not sure ? but i believe , you have problem with your trailing stops, i may suggest you read this article....

https://www.fxcm.news/uk/learn/junior-uk/strategy-lock-profit-trailing-stop/

you may adapt it to your TF , follow the price with SL placed at least one pullback before the last one, move it only when last HIGH breakout.
  • #34,748
  • Dec 6, 2017 10:23pm Dec 6, 2017 10:23pm
Quoting Supreme1394
{quote} I try to help based on my limited knowledge: Pic 1 : Yes, but it doesn't have much value because it's just a correction to the swing before it. The swing before it holds structural importance, you can see it in M30 when you draw stucture areas. Pic 2 : Yes, you can see price bounced off it a little in M30. But the value of that structure is not that important compared to the one above it because price bounced off it more often and stronger in M30. Pic 3 : Looks like you went to BE too soon, ideally should go to BE when price test the structure...
i think this video explain everything i need to know , Thanks~

https://www.youtube.com/watch?time_continue=9805&v=LW3ga0rCYx4

Thanks Mr.Pip for giving us this extreme complete strategy that time proven , result proven , and not only strategy , money management , and discipline , he put his time on for so many year , and effort , teaching us all info that needed to be a successful consistent profitable trader .
  • #34,749
  • Edited 10:49pm Dec 6, 2017 10:31pm | Edited 10:49pm
Quoting SidE1
Hope this works..... first time As hopefully you will be able to see from attached file of actual trade taken USDJPY, I identified and entered sell on pullback to structure and fib value. Not being happy with rotation I waited for a little follow through with second sell candle. Trade came through nicely and I was taken out while trailing. Risk/Reward was not good when you include spread and size of rotation candle. Therein lies my first issue with risk/reward in earlier question. Once trade completes, where would you enter again?...
I think that you have an issue with your expectations. You took a short after a break of expectation on the 38.2 fib and at the end of a huge rotation candle.

If you do not chase price, you thought that you do not want to miss the train and profit from the down steam. When taking such a config, your TP area shoud be something between (above) 127.2 to 161.8. There is a video of Mr. Pip on that.

Your entry is a bit problematic in terms of protecting (you have immediatly a test of structure. I would at least reduce risk, once price made the rotation on your level 3. Once price, passed the your fib "0" level, I would protect. I would not have screwed my last trade (yesterday), by following that approach.

In terms of trailing, I will not comment since I am myself rubbish at that. However, I made the experience, when your targeting an extended fib, you will reach your TP if you let more room (not aggressive trailing). Aternative approach, you set a TP at the 127.2 Fib and you life with what you get (I use that often).


PS: I am aware that in hindsight everything looks easy. However, I tried to give you hints which are also based on what I experience with PA.
  • #34,750
  • Dec 7, 2017 12:16am Dec 7, 2017 12:16am
Hello everyone,

I caught my self time to time miss read order flow and most of the time it happens when price make very small NSH or NSL.
Is this chart read was correct?
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  • #34,751
  • Dec 7, 2017 2:10am Dec 7, 2017 2:10am
Quoting evocpr19
{quote} I think that you have an issue with your expectations. You took a short after a break of expectation on the 38.2 fib and at the end of a huge rotation candle. If you do not chase price, you thought that you do not want to miss the train and profit from the down steam. When taking such a config, your TP area shoud be something between (above) 127.2 to 161.8. There is a video of Mr. Pip on that. Your entry is a bit problematic in terms of protecting (you have immediatly a test of structure. I would at least reduce risk, once price made the...
Thanks Evo for spending the time to reply.

I wasn't really chasing price (at least I don't think so). I saw the change of trend, identified area 1 as the high and waited for pullback to structure to participate in a sell. This happened at area 2 which had confluence of structure, fib ratio and was inline with expectation. I also get a rotation there which I wasn't too confident on and decided to wait for a follow through - which happened - and I entered at 3.

I think the trade itself was not a bad one. The entry was late, hence the poor risk/reward. I find that unless we get a 61.8 / 78.6 retest the risk/reward will always remain against the trade. On the flip side, a deep correction like that normally means weakness and a higher risk in the trade not working out overall.

Thanks again for your comments..
  • #34,752
  • Edited 7:27am Dec 7, 2017 5:12am | Edited 7:27am
Short GU 5min.

Lose
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  • #34,753
  • Dec 7, 2017 5:43am Dec 7, 2017 5:43am
Quoting 6288monkey
Short GU 5min. {image}
doesn't that monster candle and no rotation worry you?
  • #34,754
  • Dec 7, 2017 6:22am Dec 7, 2017 6:22am
Quoting SidE1
{quote} doesn't that monster candle and no rotation worry you?
price were going down on the retrace
  • #34,755
  • Dec 7, 2017 7:08am Dec 7, 2017 7:08am
Came late to the charts, due to my work. Took only 2 small trades in order to get my daily target. +15 on YM and +1,5 on NQ
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  • #34,756
  • Edited 11:40am Dec 7, 2017 8:22am | Edited 11:40am
Shorted EURUSD, HUge Rotation candle, price rejected three times at that level....expecting a 1:1 down....
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What is the rule when price weakens before it reaches 127 or 1:1 after the BE....?

Thanks

Updated:

Price hit my SL and moved downwards

https://www.tradingview.com/chart/EURUSD/9RmvkDVu-eurusd-short/
  • #34,757
  • Dec 7, 2017 9:19am Dec 7, 2017 9:19am
Quoting evocpr19
Came late to the charts, due to my work. Took only 2 small trades in order to get my daily target. +15 on YM and +1,5 on NQ {image}
very clever bravo
Always trade your own plan...I don't provide trading signals.
  • #34,758
  • Dec 7, 2017 11:37am Dec 7, 2017 11:37am
Normallly I like to trade gold, but PA is currently falling in free fall, so cannot trade it. The chart is only for illustration purpose (took a 5000 tick chart). Coloured box shows only where price is at the moment.
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  • #34,759
  • Dec 7, 2017 12:09pm Dec 7, 2017 12:09pm
Quoting evocpr19
Normallly I like to trade gold, but PA is currently falling in free fall, so cannot trade it. The chart is only for illustration purpose (took a 5000 tick chart). Coloured box shows only where price is at the moment. {image}
Evo, change your chart to the front contract (Feb.2018)...you are still in dec, 2017
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Always trade your own plan...I don't provide trading signals.
  • #34,760
  • Dec 8, 2017 3:56am Dec 8, 2017 3:56am
I had a terrible week this week, I took 6 trades and only 1 was BE where I was to agressive with placing my stop to BE because it had worked out very well. The other 5 were losses. It's very frustrating because besites the real trading I still backtest and with the testing the numbers are exactly the opposite. And after reviewing my trades I see what went wrong.

I look for setups that appear at the 61,8 and prefer to see also a 1:1 that finishes arround the 61,8 and all of this in a area of structure. So it's at least a sos2 sos3 signal for entering a agressive C of the mainswing and of the shorter term a D enter.
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