The Daily Fozzy Method

Quoting Ryecatcher

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Now this is fun...

What did i ever see in trading ??

Rye

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Quoting Billser

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People have asked me what is my SL, what is my TP, do I do this... Do I do that. So I thought I would sit down and write a few lines.

I think the word discretionary is a perfect word for the Fozzy Method, at least the way I trade it.

I definately have an Entry which is the Fozzy crosses. Although today I could kick my discretionary ass for not taking the Cable and usd/chf... I would have been up over 200 pips just on those two over night trades......shame on me for opting out just because I made a discretionary decision..

Sometimes taking all crosses can be very stressful but like BeachBum said, you never know which one will put you in your place and which one will make your pip account grow.

As for SL I am now committed to only placing my SL at the high/low of the previous day's candle. I might get stopped out a few times but I think in the long run it will pay off. If I do have a large SL then I will compensate by reducing my lot size, therefore my potential loss will not be as great.

Now for the big one.....TP....I dont place a TP except for certain times.... I don't place a TP because in reality I, nor the market does not know if a trade will only bare you 1 pip or 100 pips or in the case of BeachBum 357 pips (per trade) So I choose not to limit my expecations and I go by either my gut, my nerves or in some cases...this is where I will put a TP in.... my charts are screaming at me telling me that there is magor resistance 40 pips away don't be a dumb ass and go place a TP........

This is my schedule for the trading day. At 5 pm west coast time I put in my trades. From 5pm to 11pm I watch them on and off. When I go to bed at 11pm I decide, do I take my profit and run or hang in there and let the Fozzy crosses do their thing. When I get up at about 6am the next day I will look to see what happened and almost always take my profit and close the trade. All of the profit thing for me has been and will be pure discretion and gut feeling.

I have tried to add other filter to keep me out of bad trades but for me I find I start to get the "deer in the head lights" look. I find that I end up not taking the trade just because the blue line didn't cross over the pink line and the pink line didn't change color to orange....etc

I personally believe that if you keep it simple it will keep you happy and profitable...Now simple to one person might be complex to another....that word again..... Discretionary.

The Fozzy system has been the only system that has given me constant pips in all of my short trading career. That to me in of its self speaks volumes.

When I started trading the Fozzy Method about 6 weeks ago I did three things (for the first month) that have phycologically kept me going: 1. I committed to taking all the crosses and trading the original Fozzy way with no deviations what so ever. 2. I resigned my self to loosing money IF that is what was going to happen. 3. I kept a record of EVERY signal trade I did and I would go back and keep looking at those trades as a learning tool.

I beileve that if you did nothing else but those three things, the Fozzy Method will make you pips.

Dam I'm long winded...

Have a great weekend

Billser....

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Quoting Bytebodger

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For another thing, I think that my SL/TP strategy was far too slow to lock in profits. I thought I was being wise by trying to let things run as long as possible - but just because you are trying to "let it run" doesn't mean that you can't lock in some of those profits.

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Quoting howard

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Please guys, do not forget the title of this thread, do not forget the beauty of Daily.

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Quoting coolshades

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actually now that you put it this way in black and white.. this is less discretionary... it just happens to be a time + fozzy based system..anything that is repeatable consistently is a system..

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Quoting JoshDance

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I'm going to upload my results, which are totally different from yours, BB. Bear in mind this was done over the course of 20 or 30 minutes with my pit bull sitting in my lap because he was scared of thunder ;-) I got totally different results, with an overall pip gain of 200. I'm attaching 4 images showing my trades. Magenta lines are losers, green lines are winners. Can you post your trades or at least give me an idea of what I'm doing differently from you? Granted, I'm using Alpari GMT+1 data which is probably a bit different from fxdd, but I don't see how we could have such a discrepency.

I had 60 trades, 28 losers and 22 winners, for a total of +200 pips. And that was with most losers being well into -40 pips, and giving a little leeway to about 3 winners which were right on the edge of +60. I should add, the vertical lines indicate the day the cross occurred, so obviously we enter at the opening of the next bar.

This has been my frustration with the method -- I see so much success but when I've backtested it's been disappointing! Please let's compare our testing differences and figure out how we differed! Later tomorrow perhaps I'll get an FXDD data feed and test again, so we eliminate that variable.

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Quoting Billser

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3. I kept a record of EVERY signal trade I did and I would go back and keep looking at those trades as a learning tool.

Dam I'm long winded...

Have a great weekend

Billser....

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Quoting StoragePro

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Nice post Bill -

I am building out a trading diary with the help of Dr Tharp. I am looking for any good ideas out there to build it. Would be willing to share what you are recording?

I have a lot of data facts going into mine and like you, am trading every single cross to allow myself to build out a model in my head that I can successfully dance to.

If not - I understand.

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Quoting Billser

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Hi StoragePro,

Please see attached PDF

>snip<

The pip count is also very interesting to see...more pips with less discretion (see PDF)

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Quoting Billser

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The pip count is also very interesting to see...more pips with less discretion (see PDF)

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Quoting BeachBum

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No, I have a cross on 1/25 that results in "just" 60 pips of profit, NO S/L. Then a new trade on 1/29.

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Quoting JoshDance

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I tested 6/1/06 - 12/31/06. I used FXDD, and the AO_FozzySignalALL indicator, TP 60, SL 40. For this period on daily charts, I had 12 winners and 20 losers, for a -80 pip loss. Looking at the above quote, I think I see the problem. You have a cross on 1/25. So you don't open until 00:00 on 1/26, right? That 1/26 bar produced a max profit of 55 pips, so why do you call this a winner?

Is it possible that you're counting the DAY OF the cross as entry? If so, this is incorrect. We must enter the day after, to go by the close of the bar... I've attached my chart that shows a small period of only about 30 or 40 days where there are 7 winners and 12 losers. The bars indicate the day the trade was OPENED, and the red bars are losers, green winners. Notice how the bar comes AFTER the indicator signal. I don't see any way my testing can be incorrect, but I'd love for it to be somehow. There were only a couple of cases where a signal was not taken because we were already in a trade and TP or SL had not yet been hit. Almost all losers happened on the day the trade was taken, so Stop and Reverse was not an issue. Am I missing something big here?

A few sample trades:

cross at EOD 6/1, opened Long 6/2, TP 6/2
cross at EOD 6/6, opened Short 6/7, TP 6/7
cross at EOD 6/15, opened Long 6/16, SL 6/19
cross at EOD 6/23, opened Short 6/26, SL 6/26
cross at EOD 6/26, opened Long 6/27, SL 6/28

EDIT: first green bar on the chart below is 9/6, last green bar is 12/29, to give you a time frame.

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Quoting ftraderx

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Just my 2 cents from years of experience. Trading on the Daily charts with TP 60 and SL 40 on volitile pairs like GBP/USD or GBP/JPY or USD/CHF is not productive. Especially a 40p stop. This is suicidal behavior and guarantees stop out unless some news shoots price straight into profit. SL of 40 on even 4 hour charts is questionable unless trades are carefully entered in extreme over bought\sold situations in a very clear support or resistance area. 40p stop is ok on 1 hour charts.

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