The Daily Fozzy Method | Page 41 | 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

  • #801
  • Nov 8, 2006 5:26am Nov 8, 2006 5:26am
Quoting 4rex
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.

Hey,

Good question you ask. Maybe go to investopedia on the net and look up the indicators and what they are used for. I do this when I come across a system I like so I know myself what going on and why, good on you for asking. If you don't ask you don't get, eh.

All the best.

Alex
  • #802
  • Nov 8, 2006 6:47am Nov 8, 2006 6:47am
I can't speak for others, but I can tell you why I haven't responded to your question: I don't have the time to write an explanation that encompasses all that is happening with these indicators within the "fozzy" system. I won't feel good about writing a half-*** answer. So if I was to sit down and write what I know and what I think I know, it would consume a lot of time I'm unable to allocate for this project. Sorry! However, I think the suggestion made by AlexFX is excellent. Research and study on your part should provide the answers you're looking for.



Quoting 4rex
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.

  • #803
  • Nov 8, 2006 7:02am Nov 8, 2006 7:02am
Hello,

Alex I appreciate your suggestion and believe me I have put many hours of studying/research into FX. I guess there is just so much info that I am having a difficult time assimilating the info. Maybe I am a slow learner but it seems to me that my difficulty comes when I try to understand how each piece of the puzzle work in unison. I guess part of the problem is looking at too many system and running into whirlpool of ideas and opinions. The good thing is that I have and continue to use Fozzy as my main trading approach which should help me understand its nuances with time.
BB, you have been nothing but extremely and unconditionally helpful to this thread. I appreciate and respect your reason for not taking on my questions.


Thanks again
All 4 1 and 1 4 All
  • #804
  • Nov 8, 2006 7:06am Nov 8, 2006 7:06am
You're very welcome!

Quoting 4rex
Hello,
BB, you have been nothing but extremely and unconditionally helpful to this thread. I appreciate and respect your reason for not taking on my questions.
Thanks again
  • #805
  • Nov 8, 2006 8:53am Nov 8, 2006 8:53am
in post 795 i was tracking the GBPJPY via fozzy and thought i had a cross.. and placed my entry today.. got stopped out very quickly. more attention to the chart should have shown me that the cross was not completed.

i thought the yellow line candle was a cross, but not so. the cross might or might not be completed by the current candle as indicated by blue vertical and ideally i shd have waited for the candle to complete to take a call.

lost 30 pips, but learnt something - patience

again, pls correct me if i am reading the charts wrong.

cool
Attached Image
  • #806
  • Nov 8, 2006 9:03am Nov 8, 2006 9:03am
and yes, i dont think i will trade this pair again.. too wide a spread offered by my broker
  • #807
  • Nov 8, 2006 9:08am Nov 8, 2006 9:08am
Mr cool............

I'm not at my computer with charts, so I can't comment on the setup, but let me add my two cents.

GBP/JPY is my favorite pair to trade. I've made more money with this pair than any other. HOWEVER, you can't trade it successfully with a 30 pip stop! Because of the volatility and ATR, I would not even think of trading this pair with less than a 100 pip stop loss. The spread is easy, it's the S/L that's a challenge.


Quoting coolshades
and yes, i dont think i will trade this pair again.. too wide a spread offered by my broker
  • #808
  • Nov 8, 2006 9:11am Nov 8, 2006 9:11am
thanks beach, i will keep that in mind.. can you comment on the chart i posted?

thnks.. and pls drop the mr.. i am a wet behind the ears trader

cool
  • #809
  • Nov 8, 2006 9:18am Nov 8, 2006 9:18am
Quoting BeachBum
Mr cool............

I'm not at my computer with charts, so I can't comment on the setup, but let me add my two cents.

GBP/JPY is my favorite pair to trade. I've made more money with this pair than any other. HOWEVER, you can't trade it successfully with a 30 pip stop! Because of the volatility and ATR, I would not even think of trading this pair with less than a 100 pip stop loss. The spread is easy, it's the S/L that's a challenge.
BB,
I'm more than a little surprised to see you say that GBP/JPY has made more than any other pair. Maybe you're referring to your normal trading, I don't know. But, as far as Fozzy results with this pair, it's the biggest loser by a wide margin. I think it's more than -300 pips in 7 trades the last I looked at my notes.
Hi, my name is Barry and you can keep your doctor...
  • #810
  • Nov 8, 2006 10:02am Nov 8, 2006 10:02am
Quoting cisco
BB,
I'm more than a little surprised to see you say that GBP/JPY has made more than any other pair. Maybe you're referring to your normal trading, I don't know. But, as far as Fozzy results with this pair, it's the biggest loser by a wide margin. I think it's more than -300 pips in 7 trades the last I looked at my notes.
I have tried several indicators and any pair with JPY is always the biggest loser. I have heard Japanese banks and exporters are the culprits.

Even successful Expert Advisors have losing records on JPY pairs.

But I do see that GBP/JPY have very big moves. So, as BB said, SL is a challenge.
  • #811
  • Nov 8, 2006 10:17am Nov 8, 2006 10:17am
Your observations about GBP/JPY and the fozzy method are correct. In fact it was YOU who put together my fozzy trading results that showed GBP/JPY at the bottom of the list. I will consider carefully trading this pair with "fozzy" in the future. However, this pair has been very profitable for me using Vantage Point software (see the threads here at FF about VP). On another note: GBP/USD with fozzy works very well.



Quoting cisco
BB,
I'm more than a little surprised to see you say that GBP/JPY has made more than any other pair. Maybe you're referring to your normal trading, I don't know. But, as far as Fozzy results with this pair, it's the biggest loser by a wide margin. I think it's more than -300 pips in 7 trades the last I looked at my notes.
  • #812
  • Nov 8, 2006 10:19am Nov 8, 2006 10:19am
Sound like a "conspiracy" theory goin' on...........

Quoting newspring
I have tried several indicators and any pair with JPY is always the biggest loser. I have heard Japanese banks and exporters are the culprits.


Even successful Expert Advisors have losing records on JPY pairs.

But I do see that GBP/JPY have very big moves. So, as BB said, SL is a challenge.
  • #813
  • Nov 8, 2006 10:20am Nov 8, 2006 10:20am
I'll take a look at the chart later today when I have access to a computer with charts.

Quoting coolshades
thanks beach, i will keep that in mind.. can you comment on the chart i posted?


thnks.. and pls drop the mr.. i am a wet behind the ears trader

cool
  • #814
  • Nov 8, 2006 10:22am Nov 8, 2006 10:22am
Quoting BeachBum
On another note: GBP/USD with fozzy works very well.
Indeed!
Hi, my name is Barry and you can keep your doctor...
  • #815
  • Nov 8, 2006 12:03pm Nov 8, 2006 12:03pm
Quoting 4rex
Hello,

Alex I appreciate your suggestion and believe me I have put many hours of studying/research into FX. I guess there is just so much info that I am having a difficult time assimilating the info. Maybe I am a slow learner but it seems to me that my difficulty comes when I try to understand how each piece of the puzzle work in unison. I guess part of the problem is looking at too many system and running into whirlpool of ideas and opinions. The good thing is that I have and continue to use Fozzy as my main trading approach which should help me understand its nuances with time.
BB, you have been nothing but extremely and unconditionally helpful to this thread. I appreciate and respect your reason for not taking on my questions.

Thanks again
Hey,

Your welcome friend. Maybe study the James16 chart thread and the pure price action. I think this will put you into a different place.

All the best

Alex
  • #816
  • Nov 8, 2006 12:05pm Nov 8, 2006 12:05pm
RSI is basically an oscillator and measures the relative strength of price movement ,see the Hayden doc I posted earlier, for a very good explanation. The MA of RSI just smooths out the rough edges. This could be set to anything and you could use multiple MAs etc try experimenting. The BB just gives a general trend again see Hayden doc for an exxplanation of the 20/40/60/80 levels and the deviation bands of the Bollinger show volatility. Whats more important is not how you get in but how you get out. I read a long time ago something very important.

"when you enter a trade you know all there is to know about the price and wher it has been, you know nothing of wher eit is going and never will" Entry is the starting point so you had better know where you want to get to e.g profit/loss or you may be suprised."


Quoting 4rex
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
  • #817
  • Nov 8, 2006 12:08pm Nov 8, 2006 12:08pm
You probably haven't done anything wrong but just look at the common denominator!! USD. If you get that wrong sided all your trades are doomed. Its obvious 2 long 2 short. You are trading only 1 currency USD. I got burned a few weeks ago with several dollar trades like this. I bet you don't do it twice.




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?
  • #818
  • Nov 8, 2006 3:56pm Nov 8, 2006 3:56pm
Steve,


Thanks for your explanation. I will read the mentioned doc.


Alex,

Thanks for the advice. I need to purge my braincells before I read a gazillion post that make up the Jame thread!
All 4 1 and 1 4 All
  • #819
  • Nov 8, 2006 4:25pm Nov 8, 2006 4:25pm
Quoting 4rex
Steve,


Thanks for your explanation. I will read the mentioned doc.


Alex,

Thanks for the advice. I need to purge my braincells before I read a gazillion post that make up the Jame thread!
Hey,

What ever you do try and keep it simple. Also check out OrangeRoshan SRDC thread. Remember most if not all indicators are lagging. Price action analysis is where its at...

Good trading to you

Alex
  • #820
  • Nov 8, 2006 4:28pm Nov 8, 2006 4:28pm
is anyone trading this on shorter time frames.. there have been some posters who trade successully on a 4 hr time frame..


i live in the UK and trading on daily chart using fozzy is difficult, since the candle starts forming at midnight...i need my beauty sleep

comments welcome.
2 traders viewing now