The Daily Fozzy Method

BB,
Sorry I was having issues getting the correct image uploaded, and the
picture wouldn't display as long as I had the indicator uploaded also.

The Vegas Daily indicator is attached on this post. Sorry for the confusion.

OK..............thanks for correcting it!

Results for the Swissy have not been as well as for some of the other pairs.

USD/CHF Results From 01/01/07 until current; 17 trades

Method 1- Trade closed at next Vegas Daily level
10 Wins, 5 Lossse, 2 Break Even; 71% Win Ratio; Total: +104 PIPS

Method 2- Trade closed at 2nd nearest Vegas Daily level (i.e. level following method 1's)
6 Wins, 6 Losses, 5 Break Even; 65% Win Ratio; Total: +336 PIPS

Method 3- Trade closed at +40 PIPS
11 Wins, 6 Losses, 0 Break Even; 65% Win Ratio; Total: +259 PIPS

Method 4- Trade closed at +60 PIPS
7 Wins, 6 Losses, 4 Break Even; 65% Win Ratio; Total: +179 PIPS

Method 5- Trade closed at +80 PIPS
6 Wins, 6 Losses, 5 Break Even; 65% Win Ratio; Total: +203 PIPS

Method 6- Trade closed at 70% of 10 period ATR
9 Wins, 6 Losses, 2 Break Even; 65% Win Ratio; Total: +265 PIPS

Explanations: I use standard Fozzy Settings, with a Vegas Daily Tunnel set
specific to each currency. I use Alpari MT4 and I monitor the close of the
1400 bar- which happens to close at 8 AM my time. With discretion, I decide
whether to leave the trade open, move the S/L to break even, or close the
trade. If the trade has already hit a profit level, I will generally move the
S/L to break even for the USD/CHF. If the trade has gone bad and not
already triggered a stop, I will close the trade at market. If the trade has
fluctuated between my entry and one of the lower profit levels, I will move
the stop to Break Even. I count the Break Even trades as wins because with
any discretion you can turn a slight profit on the trade. I will not take a trade
that is too close to the midline unless I have good reasoning, nor will I take a
trade which goes against the fozzy rules. Such as a buy signal at a RSI near
70.

shatteredgently has a new Fozzy trading journal:

http://www.forexfactory.com/showthread.php?t=30465

I'd like to backtest this strategy. Any ideas how since it uses BB and a MA?
Thank you

Hey ,

if you go to very first post , it will tell you all you need too know...

Let us know your results

good luck

Rye

p.s there is also an excellent e-book in amongst the daily fozzy sub- forums
'noobs begin here'

But the bollinger bands change as price continues. The crosses that occur below and above the middle bollinger band along with the MA. This would mess up the back test.

Firstly I'm not sure how many people use the BBands any more?

Secondly that's why we enter on the opening of the next daily bar after the cross - so that we are not affected by the cross appearing and then disappearing during the signal bar.

-TPO.

If you want to backtest; a piece of paper, a pencil or pen, Daily charts from your favorite provider with the original Fozzy indicators and lots and lots of time in front of your computer. I believe that is how most of us have backtested this method; there are no 'shortcuts' to the process just like there is no way to 'get rich quick'. Enjoy the excercise!

Long time, no posts. How's everybody? Good to see the Fozzy method is still going strong. I had to put off trading for some personal things, but I'm back. Little rusty, and it looks like there's been about 80 pages added since December. Keep up the good work guys.

Here's one for the record books. Can't get better than this!

Hi,

Could you tell me what is the MA you have drawn on the candles?

Thanks

A 28Ema.

Hi & thanx for setup!

How do you exit the trade and what's your SL tactic?

Thank you!

I use 70% of the atr for the stop loss. My exit strategy is closing half my position for a profit when it hits 70% of atr, and then letting the other half ride with it's stop moved to break even. I'll adjust it as needed if the trend continues, or take profit based on what my head tells me.

Thank you for you answer!
Could you please show what you mean at chart? My question is: do you use ATR of RSI (as MA of RSI in Fozzy method) or ATR of price? And how do you calculate 70% of ATR. So I ask you very much to show a chart!
Thank you anyway!

And could you please explaain then how do you use the Vegas lines? Thank you VERY much!

What is the best filter for RSI-MA-cross:
1. BB
2. 30%-70% RSI levels
3. 50% RSI level
???

I don't mean to be a dick, but you should probably read this entire thread, or re-read it, because you're obviously missing some key points.

Hi Aktaurus,

Unfortunately as Paul says, you really need to read the whole thread to get a better understanding of the method and how it is being analysed at the moment. I know it takes time and I appreciate that English is probably not your first language, but it really is the only way to understand Fozzy and the different variations.

Your questions:
- 70% of ATR - this is 70% of the ATR of the price. You calculate it using [value of ATR]*0.7 in Excel...
- Using the Vegas lines - Paul hasn't mentioned using them. BeachBum was using them to determine profit targets but you should read the Vegas sub forum to understand this method.
- Best filter - this is what everyone wants to work out! The original method uses BB, Willf's modification uses above/below 50 level, others are using Stochastics. The ONLY way anyone can know what filter THEY should use is to back and forward test all signals, noting down the values and over a group of results, work out what filters perform well. This will depend on your broker timeframe and what YOU are happy with. Without your own tests, you will not have the confidence in the system.

-TPO.