The Daily Fozzy Method

Quoting stockwet

Disliked

I think it will be helpful if you're going to post that you have a signal to define which set of rules you are using. Some people are using the original Fozzy rules, others, like BeachBum, have modified the entry rules. It can get confusing for the rest of us who look at our charts and see something entirely different.

Ignored

Quoting BeachBum

Disliked

Good idea..........

Using the original fozzy entry signals with the BB indicator, I had these trades show on my charts at 5 PM est:

aud/usd
aud/jpy
chf/jpy
eur/aud
nzd/usd

Ignored

Quoting Horace Kent

Disliked

Hi all,

Sorry to jump in like this, but is there a post that can summarize the progress of this method to date?

Thanks

PS: Hi mniemiec

Ignored

Quoting fozzy

Disliked

This is my first post on FF after months of reading and trying some of the numerous systems provided by members of this forum. Months ago I came across the following indicators that were posted on one of the Vegas threads. I cannot remember who posted it but I am extremely grateful for their insight and hope they do not mind if I show my way of using this indicator.

After months of testing and swapping from system to system I've come back to this indicator and in hindsight I should have stuck with it from the start as it seems to work for my style of trading.

Anyway, on with the detail. I only trade daily charts and only EUR/USD, GBP/USD, USD/JPY and USD/CHF. Why these? Primarily because these are the only ones I have backtested and have been trading for the last 3 months. I also tend not to trade Monday mornings (Australian time) as prices sometimes gap over the weekend. However, this is discretionary.

On each chart I have an 8 period RSI. I also have an 8 period MA of the RSI and Bollinger Bands with a 20 period setting, also on the RSI.

Long Entries: RSI must be below the middle Bollinger Band. Enter long on the open of the next bar after the MA has crossed above the RSI.
Short entries: RSI must be above the middle Bollinger Band. Enter when MA crosses below RSI.

Stop loss is the low/high of the previous bar. I move S/L to break even if the price moves greater than 40 pips in my direction. After the initial 40 pip move I use a trailing stop for exits (25 pips).

I only look at the charts once per day, just before 0.00 GMT. This way I know which pairs are approaching my set-up. I then place trades if my criteria has been met. That's it. A simple system that seems to work for me. Looking at charts all day does not suit me as I have a real job and I'm not in a convenient timezone. 10 minutes a day is all I need. This method provides a limited number of trades but the trades can last anywhere from 1 day to numerous days. There can also be days on end with no trades. I have found that the secret is have patience. I also have come to believe those who say longer timeframes are easier, especially for newbies.

I'm not going to say this system will always work but for me it has generated over 400 pips in September already. Please try this out on demos before putting your hard-earned into it. Just because it is working for me (at the moment) does not mean it will suit everyone.

Please feel free to comment.

Ignored

Quoting saaedb

Disliked

I dont see the purpose of the Bollinget Bands, coz you're just basing your decision off of the RSI and MA crosses over/under another MA. Whats the role of the BB?

Ignored

Quoting mniemiec

Disliked

Horace here is the ea fozzyv1.0

Ignored

Quoting BeachBum

Disliked

paul2............

When I first suggested using ATR as a basis for deciding about an appropriate S/L, I commented about the need to do some research to confirm this approach. Your recent experience with eur/gbp validates that. Slower moving pairs (eur/gbp, eur/chf, gbp/chf) do not behave the same as the more widely traded and active pairs. My experience with these tells me to be more cautious and give trades more room to breathe. I lost $$$ on the eur/gbp before I adopted this approach. My suggestion again is to research each pair before making S/L and T/P decisions. Remember fozzy's original method of choosing a S/L worked well for him on the Big 4. We have now chosen to go beyond that and trade other pairs, so due diligence is in order. JMO.

Ignored

Quoting paul2

Disliked

I agree with you 100%. A different approach is needed for different currencies. On the majors, ATR is fine because if it goes that much one way or the other, the trend is most likely in place. But on these smaller ones, if volume picks up enough to move it, it could go either way as I found out, before settling into it's trend.

Ignored

Quoting jlowder

Disliked

Thanks for the indicator, that makes it easier to toss together the charts.

The one thing I find visually confusing are the signal indicators. I was wondering if it would be possible to somehow indicate the buy or sell position on the actual chart, say a green (or blue) up arrow on the bar for a buy and red down arrow for a sell. Having it point on the bar that buy/sell is taken on would eliminate the need for two indicators on the indicator window. This would also help in clearly viewing historical entries.

What do you think? Either way, thanks for the work, I'm using the first indicator now.

Jason

Ignored

Quoting BeachBum

Disliked

Thurs-Fri 9/28-29:
eur/aud................still open, currently +50...........still open +75 locked in closed 10/3..............+155
eur/chf.................B/E

New trades:

Sun-Mon 10/1-2:
usd/cad (F) +40

QUOTE]

Ignored