Is Mouteki really profitable??

Although I have many years experience in equity trading, I'm new to Forex (since April 2006). During the past 5 months I've done a great deal of reading and have tried several of the more popular trading systems posted on forums. It's been a great learning experience. I've become a little distrustful of indicators, but in a rational way - yes, they all lag, but that doesn't mean that money can't be made with them if you understand what they're telling you.

The first thing that attracted me to the Mouteki approach was the fact that is based on actual price action. I did a bit of research into trend trading and quickly located the book on which the Mouteki approach is based. That, in addition to the material MoutekiTrader has posted, plus a few very minor changes of my own have enabled me to begin making respectable steady profits. In addition, I feel I have gained a new understanding of the Forex market through the analysis of price action.

September was my first month to end in black numbers and I am up 168 pips on three trades for the first week of October. As many have pointed out, any method is good if it works for you and this seems to work for me.

Lou G

It's funny to see all the demo people getting so high with the results in the last 2-3 weeks. A couple of weeks a go i went back to demo to test something. I did 50% in 1 day, with good money management. In that day I said I will never demo again. It's useless. It's like masturbating, dreaming at the most beautifull girl in the world and after that saying to all your friends that you had that girl. It's an ilussion.
The market was nice, many systems caught the moves.
2 lines won't get you 2 far, it's a system like anyother system. It was presented in '94, 12 years ago, and now it's here, with no changes, remember that.
Some people are so enthusiastic about it. The system was introduced to you in a period when the market was too generous. Forex was never easy, will never be easy, 2 lines won't make it easier. You demo now, you will feel so ready, and by the time you go live... you might be disapointed.
I'm not saing that it's not a good system, it's agreat system. But it takes more that a good system to make money on forex.
When you look at the chart you won't see the same think as mouteki sees, even if the same lines are draw on the chart.
The systems are not profitable, the people who use them can be.

Don't mix stoch market and forex TwoBlink... Forex strategies are something of it's own.. Refer to Stop Loss Application.Doc for MASTER Mouteki Method. If you change the method, then it's no more Mouteki but your method. A modified method. When breakout is good, a winner trade is identified, it need space to breath... I personnaly consider putting stoploss on opposing trend line, only then it's considered a loss. It's no problem to have a big SL if your bet is small. Get that pip calculator and always calculate your maximum possible drawdown on a good system and i think 5%-10% (depending on risk) of capital is ok on trade.

I had a big drawdown on monday morning. I didn't respect above statement...

Good trading.

its like im looking at myself in the mirror..

100 trades on the same pair will take 2 years..

It may take long (defenately not 2 years, maybe hours or days), but it can save you lots of $.

Depends on the point of view. Do you want to save few hours of your time, or your money?

man i wanna save my money.. but theres only 2 trades a week on a particular currency u do the math.. heheh

I thought you said it will take 2 years of yourlifetime :

u know what the funny thing is.. i did say 2 years and i think its right .. BUAHAHAH !!

hello everyone,
i just started reading mouteki method, i have a question.
Supply/Demand line; how do you know which one to pick?

You know it when the price penetrates the trend line (supply or demand) and next candle opens above (supply) or below (demand) it.

but i still didn't get it whether to pick 1st and 2nd point from the top (supply) or bottom (demand). can u explain more plz.

Don't mind me asking -- have you downloaded and gone through carefully all the documentations and examples at http://www.forexfactory.com/forexfor...ead.php?t=8464 ?

yes i did.

Ok, fair enough.

Your first question: "Supply/Demand line; how do you know which one to pick?".

At any time, you should draw both the supply and demand line on your chart. The one to "pick" will depend on which line is breached. For a good trade, it should be a clear one way break -- either you get a short signal when price drops below the upward sloping demand line, or a long signal when price rises out of the downward sloping supply line.

Then you also asked: "but i still didn't get it whether to pick 1st and 2nd point from the top (supply) or bottom (demand). can u explain more plz."

Since we want to see both the demand and supply lines on the chart, it follows that we will have 4 points -- 2 points of resistance that make up the supply line, and another 2 points of support to make up the demand line. Just to emphasize, the way to draw the lines would be to look from right to left.

Downward sloping supply line. Find the most recent point of resistance and this would be your point 1 for supply line. Then look left and find the next point of valid resistance that is higher than point 1. Remember that the supply line must be downward sloping.

Similarly for demand line, find the most recent point of support and this would be your point 1 for demand line. Then look left and find the next point of valid support that is lower than point 1. Now we need a lower point because the demand line must be upward sloping.

Now that you have the 2 lines in place, follow the price action. For a typical case, you will see the price moving within the region bordered by the top supply line and bottom demand line. When price moves out either way, we then take our signal accordingly.

Below is an example you can refer to. See how I have labelled the 4 points (A, B, C and D) that make up the 2 lines. Notice that the most recent bar has breached the top supply line. This signifies a break of the current downtrend and we will want to ride on the new uptrend. If we have a confirmation from the next candle opening above the supply line, then we go long.

Hope this helps; if not, please ask again. Specific questions will bring better answers.

Care to share Lou?

regards,
HK

For those who lost money last week, don't despair. Remember that its a huge numbers week. Many successful traders and system creators recommend never to trade right before an important number, especially nonfarm payrolls.

I was actually short cable right before nonfarm payrolls, I placed my stop after I've already made 60pips. If it wasn't for that crazy up move right before the big down move, I would've made more money. As it was, I got stopped out with a smaller profit.

Again, in a numbers week, ALL BETS ARE OFF.

Week of Sept 24-29: +569 pips

Week of Oct 1-6: +124 pips

All trades based purely on Mouteki methodology. No trades taken on NFP day.

Have a great Thanksgiving everyone! (Canadian eh)

Backtest.Manually.

thnx a lot Jumper!!!