The Daily Fozzy Method | Page 40 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The 4 Hour Fozzy Method 233 replies

FOZZY Method CROSSES 808 replies

Fozzy Alt... one more approach to the Daily Fozzy Method 40 replies

My Daily Fozzy Trades 337 replies

Monthly Fozzy Method 9 replies

Attachments: The Daily Fozzy Method
Exit Attachments

The Daily Fozzy Method

  • #781
  • Nov 6, 2006 1:51pm Nov 6, 2006 1:51pm
To Fozzy: Do you go long or short based on the MA cross of the RSI or when it crosses the middle band. Thanks
  • #782
  • Nov 6, 2006 1:54pm Nov 6, 2006 1:54pm
See page ONE of this thread...
Quoting bmw540i
To Fozzy: Do you go long or short based on the MA cross of the RSI or when it crosses the middle band. Thanks
"Loss and failure are inevitable but misery is optional"
  • #783
  • Nov 6, 2006 2:09pm Nov 6, 2006 2:09pm
I'm not fozzy, but I'll presume to answer for him:

Please CAREFULLY READ posts #1 and #18 in this thread......the answer lies within!


Quoting bmw540i
To Fozzy: Do you go long or short based on the MA cross of the RSI or when it crosses the middle band. Thanks
  • #784
  • Nov 6, 2006 2:55pm Nov 6, 2006 2:55pm
This may be of interest to all those interested in all thing RSI. Not suggesting it is of any use or not. Just an article I came across some time ago. Steve
Attached File(s)
File Type: pdf Trend_Determination.pdf   560 KB | 1,528 downloads
  • #785
  • Nov 6, 2006 3:37pm Nov 6, 2006 3:37pm
Steve............thanks for the two documents.
  • #786
  • Nov 6, 2006 3:44pm Nov 6, 2006 3:44pm
Quoting PipRipper
Looks like the ema(13) is acting like support.
Pip Ripper: it looks like you are using Prophet Charts..

I am too, but can't see how to get the Fozzy indicators all overlayed onto RSI... would you take a couple minutes & educate us up here??

That would be SO great, thank you!!
  • #787
  • Edited 9:15pm Nov 6, 2006 8:25pm | Edited 9:15pm
some clarification on fozzy's system needed.

i think fozzy trades long/short when the cross has completed and another candle has completed. that is to make sure the cross is not momentary.

but in the attached chart, if we waited for another candle to be completed then the upside would be lost.

in the attached chart, the cross is completed at the red vertical, the yellow vertical is a 'wait and confirm' vertical and fozzy wld enter the trade at the white vertical.. but by that time the upside wld have been lost..

am i right in reading this?
Attached Image
  • #788
  • Nov 7, 2006 3:52am Nov 7, 2006 3:52am
Quoting coolshades
some clarification on fozzy's system needed.

i think fozzy trades long/short when the cross has completed and another candle has completed. that is to make sure the cross is not momentary.

but in the attached chart, if we waited for another candle to be completed then the upside would be lost.

in the attached chart, the cross is completed at the red vertical, the yellow vertical is a 'wait and confirm' vertical and fozzy wld enter the trade at the white vertical.. but by that time the upside wld have been lost..

am i right in reading this?
Fozzy system enters a trade on the open of the next bar after completion of rsi cross, in this case it would be open of the candle with yellow vertical line on it

Regards

howard
Regards
  • #789
  • Nov 7, 2006 6:42am Nov 7, 2006 6:42am
thanks Howard. now much clearer.
  • #790
  • Nov 7, 2006 8:15am Nov 7, 2006 8:15am
Quoting stevecartwright
for anyone interested.
Thanks for both the docs, Steve.

J.
  • #791
  • Nov 7, 2006 3:43pm Nov 7, 2006 3:43pm
Hello fellow Fozziers,

At the risk of sounding stupid I wanted to ask the following:

Why the 8MA/RSI8?
Why the BB?
Why the 20ma middle band criteria?

Fozzy only talks about the mechanics of the trade and I am a believer of the system....yet just today I ask myself...Self, do you know why you are using these indicators? Fozzy went through a lot of system growing pains to get to this system but I kind of feel like I am using it with blinders on. Can someone please be so kind as to explain how these indicators are working/complimenting each other? Don't need definitions. Looking more for the dynamics of it.

Thank You
All 4 1 and 1 4 All
  • #792
  • Nov 7, 2006 3:43pm Nov 7, 2006 3:43pm
is this a fozzy setup we see emerging( see vertical line) , if yes, trade entry shd be at next candle (if the cross occurs) , which wld be sometime tomorrow?

correct me if i am wrong pls..
Attached Image
  • #793
  • Nov 7, 2006 3:53pm Nov 7, 2006 3:53pm
Well I entered my trades on Sunday, when the four main pairs (EUR/USD; GBP/USD; USD/JPY; USD/CHF) all gave a Fozzy signal (two to the long side and two to the short side). I was able to get some pips with the GBP/USD closing half of my position at +40 pips and moving my stop to B/E. But with my other three trades I was stopped losing money in all three. What did I do wrong? Can someone let me know if they were succesfull with these trades?
  • #794
  • Nov 7, 2006 4:13pm Nov 7, 2006 4:13pm
Quoting alcastro
Well I entered my trades on Sunday, when the four main pairs (EUR/USD; GBP/USD; USD/JPY; USD/CHF) all gave a Fozzy signal (two to the long side and two to the short side). I was able to get some pips with the GBP/USD closing half of my position at +40 pips and moving my stop to B/E. But with my other three trades I was stopped losing money in all three. What did I do wrong? Can someone let me know if they were succesfull with these trades?
I made money on one, broke even on another and closed out for a minimal loss on two others.

Losing money doesn't mean that you did anything wrong. It's part of the facts of trading. You will ALWAYS have losing trades. You need to accept this and don't think twice about it. The key is to make more money than you lose in the end. Try to shoot for monthly averages. If you've got your MM working and your head screwed on tight (I know it can be hard) you can do well... At least thats my take on it.

Jason
  • #795
  • Nov 7, 2006 4:21pm Nov 7, 2006 4:21pm
Jason, thanks for your response. Did you follow ur trades during the day? I sticked to the rules. Only watched the action at the end of the day, so I could not adjust my stops all the time as the price moved during the day. Could do it with the GBP/USD because I saw the action early in the morning (6:00AM ET) but then I had to leave to my "real" job. That is when my stops were hitted.

Why did you decide to move your stops before 5:00 PM.? What did you see that made you close your positions? Just trying to learn here.
  • #796
  • Nov 7, 2006 4:35pm Nov 7, 2006 4:35pm
I only looked at three of them. The GBP turned out ok for you I would think if you raised the stop to BE after taking the 40pips.But look how strong the GBP has been trending long since Oct 16th! I look to go with the trend.Also it is trading above the 89SMA. A good trend indicator for me. What kept me out of the YEN trade was the prevailing trend again. Also I tend not to go long if the 21RSI is below 50 or short if the 21RSI is above 50. A short on the EURO was against the prevailing trend too. The BB and crossover "looked" great but again the 50 RSI was above 50. Check the 89 SMA again. I like to go long if the currency is charting above the 89 SMA and short vice versa. The trend is your friend and if you are not too eager to jump into every crossover but let other trend indicators support you. Hope this helps. Go back and look at old crossovers and notice how consistant they are profitable if they are returning to the trend, they are above the 89 SMA and the RSI is above the mid point. You'll trade less but with a higher success rate. That will give you the confidence to increase size.

Quoting alcastro
Well I entered my trades on Sunday, when the four main pairs (EUR/USD; GBP/USD; USD/JPY; USD/CHF) all gave a Fozzy signal (two to the long side and two to the short side). I was able to get some pips with the GBP/USD closing half of my position at +40 pips and moving my stop to B/E. But with my other three trades I was stopped losing money in all three. What did I do wrong? Can someone let me know if they were succesfull with these trades?
"Though this be madness, yet there is method in it." -Hamlet Act II
  • #797
  • Nov 7, 2006 4:40pm Nov 7, 2006 4:40pm
Quoting alcastro
Jason, thanks for your response. Did you follow ur trades during the day? I sticked to the rules. Only watched the action at the end of the day, so I could not adjust my stops all the time as the price moved during the day. Could do it with the GBP/USD because I saw the action early in the morning (6:00AM ET) but then I had to leave to my "real" job. That is when my stops were hitted.

Why did you decide to move your stops before 5:00 PM.? What did you see that made you close your positions? Just trying to learn here.
I'm not sure when I changed my stops but I recall seeing the prices start to move in the opposite direction for all of my trades. I had at one point a decent lead (in fact, my Eur/USD should have closed out but I relied on the stupid server for my TP instead of the MT4 client) and that started to dwindle away. Given my 30 pip lead at the time I felt it safe to move my stop to break even.

I too work a full time job, but I can come home for lunch and have plenty of time in the mornings and evenings to check in on the trades. If you see that the trades are starting to make a strong progression in the opposite direction you might want to tighten up on your stops. I guess if you watch the prices long enough you form your own ideas about when it seems like things are going against you. I wish I could give specifics, but no one can truly read the market so a lot of it is guess work. That being said, this still happens to be one of the better performing systems I've ever seen. You've just got to stick with it for a while before you can really determine if its going to work for you or not.

J
  • #798
  • Nov 7, 2006 6:59pm Nov 7, 2006 6:59pm
Quoting alcastro
Well I entered my trades on Sunday, when the four main pairs (EUR/USD; GBP/USD; USD/JPY; USD/CHF) all gave a Fozzy signal (two to the long side and two to the short side). I was able to get some pips with the GBP/USD closing half of my position at +40 pips and moving my stop to B/E. But with my other three trades I was stopped losing money in all three. What did I do wrong? Can someone let me know if they were succesfull with these trades?
Exact same thing happened to me.

It's not a fault of the fozzy system. It's just that over the past few trading days there has been a lot of fundamentals that have made the market jump around more than usual.

I am just gonna sit the next day out until things calm down.
  • #799
  • Nov 7, 2006 8:40pm Nov 7, 2006 8:40pm
Guys...

Today was election day in the US. Probably not a very good day to open any new trades unless you're trading the news or breakouts.

Gotta wait for markets to normalize...

Good Luck.

mrLogik
  • #800
  • Nov 8, 2006 5:20am Nov 8, 2006 5:20am
Hello,


Well, is the fact that no one has replied to my post (794) reason to assume that my need for clarification/understanding of why Fozzy uses his combination of indicators a well known fact? Does everyone else that is following the Fozzy knows why and how Fozzy's indicators work together? Maybe all the backtesting that has been done is sufficient but I guess I like to know why I am doing what I am doing in order to be able to adjust my methods to fit new circumstances. Please accept my apologies if my questions are clear to all followers of Fozzy.

All 4 1 and 1 4 All
0 traders viewing now