FOZZY Method CROSSES | Page 29 | Forex Factory

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FOZZY Method CROSSES

  • #561
  • Jun 27, 2007 11:56am Jun 27, 2007 11:56am
i would be hesitant to take the eur/usd trade. the daily chart says short, the 4 hour chart says long. i say stay out. plus currently in an uptrend since 6/13, price is only 35 pips or so above the 72 ma, which is pretty solid resistance...

trev
  • #562
  • Jun 27, 2007 12:06pm Jun 27, 2007 12:06pm
Hi,

This month for me has been a bad month with the Fozzy trades...down 212 pips as off 6/27/2007.... So I have been looking back on the trades I took and the signals that were given, where the rsi ma crossed in relationship to the BBands. Where was the R/S levels and what was the trend up or down.

I am also changing my settings to 3.20.3 on the Dynamic Zone indicator to see if that helps. I changed the settings as an experiement because I am with IBFX and they have the Sunday candle. So far this setting in the last 7 trades has been ok (up 135 pips)... I didn't take any of the yen pairs this week because I have juist started testing this setting....but man I wish I had

With the 3.20.3 settings I also notice very clearly that when the blue line (see chart) is at the very top or very bottom that is the best time to take the trade when a cross occurs and stay in the trade until the blue line reaches the bottom or top to exit... on the yen pairs this week that would have gieven me some excellent pips.

Just my own observations and my own style of trading the Fozzy method. Any thoughts welcomed.

Billser
Attached Image
It's All About Attitude ...
  • #563
  • Jun 27, 2007 2:15pm Jun 27, 2007 2:15pm
I took the 2 nice setup yesterday. I was a little bit late on my entries not watching the time of candle close. Nice trading this month.

gbp/jpy +101
eur/jpy +76

Up +454 pips this month so far.
  • #564
  • Jun 27, 2007 7:27pm Jun 27, 2007 7:27pm
Quoting 4newbie
if will be bullish candle so price go down - sell
if will be bearish - fake signal ?
If you look at your chart now, you will see that there is no signal at all, and, in fact, the price has retraced back up.
  • #565
  • Jun 27, 2007 8:59pm Jun 27, 2007 8:59pm
Quoting Craig2
If you look at your chart now, you will see that there is no signal at all, and, in fact, the price has retraced back up.
This is a trap that a lot of new Fozzy traders fall into. The system is a daily system and works off the close of the daily candle. It's no good getting all excited and hyped over a potential cross because, as in this case above pointed out by Craig, the price retraces and on close on the daily bar there is no cross. It doesn't matter what it did during the bar - it's at the close that it counts.

For those that trade the 4hrly or lower, it's still at the close on the relevant bars where we judge whether there is a cross or not. Of course, it's not law. You can trade it as you see fit. But, if you want to follow this method as it was intended you must only take the signals after the bar has closed. Only then are they valid.

If you find some other "tweak" that lets you take the trade prior to close of bar and it's working for you, excellent. Then, it would be your turn to share!

Cheers,
Art...
  • #566
  • Jun 27, 2007 10:47pm Jun 27, 2007 10:47pm
i dont see a problem with posting potential crosses... it allows people to point out something others may not have noticed... and for example my previous post showed some good reasons not to take the trade, in my opinion... if it stopped somebody from jumping the gun, its a good thing...

trev
  • #567
  • Jun 28, 2007 3:22am Jun 28, 2007 3:22am
Quoting trevwest
i dont see a problem with posting potential crosses... it allows people to point out something others may not have noticed... and for example my previous post showed some good reasons not to take the trade, in my opinion... if it stopped somebody from jumping the gun, its a good thing...

trev
No problem at all, I, in fact, wish there was more of it (mind you, I dont exactly detail the trades I take here). Its always good to "compare notes"

BTW, looks to me like CAD pairs are resuming their downtrend. Might be EUR/CAD USD/CAD signals when tomorrow starts.
  • #568
  • Jun 28, 2007 6:39am Jun 28, 2007 6:39am
Thanks for the answer but please tell me how does the following phrase fit your explanation and comprehension of the system : This strategy does not have a closing "requirement". post 2361 P. 158 of the daily Fozzy thread.

Thanks

Quoting Artamon
This is a trap that a lot of new Fozzy traders fall into. The system is a daily system and works off the close of the daily candle. It's no good getting all excited and hyped over a potential cross because, as in this case above pointed out by Craig, the price retraces and on close on the daily bar there is no cross. It doesn't matter what it did during the bar - it's at the close that it counts.

For those that trade the 4hrly or lower, it's still at the close on the relevant bars where we judge whether there is a cross or not. Of course, it's not law. You can trade it as you see fit. But, if you want to follow this method as it was intended you must only take the signals after the bar has closed. Only then are they valid.

If you find some other "tweak" that lets you take the trade prior to close of bar and it's working for you, excellent. Then, it would be your turn to share!

Cheers,
Art...
  • #569
  • Jun 28, 2007 6:52am Jun 28, 2007 6:52am
Quoting TiKin, post #2359
I was wondering once you have cashed in some profit, do you usually stay in the market with a BE stop or does the strategy requires that you close all positions the same day.
Quoting Beachbum, post #2361
This strategy does not have a closing "requirement".
I believe that Beach was referring to closing positions at the end of the say (as per your question).

Waiting for the close refers to ENTRY rather than EXIT. You wait for the candle to close to confirm that there is an incontrovertible cross before entering a position.
  • #570
  • Jun 28, 2007 7:50am Jun 28, 2007 7:50am
G'day Tikin,

Quoting TiKin
Thanks for the answer but please tell me how does the following phrase fit your explanation and comprehension of the system : This strategy does not have a closing "requirement". post 2361 P. 158 of the daily Fozzy thread.
If I understand the statement correctly, I read it as there are no signals that you wait for in order to close out a position. It either hits your TP or your SL (or Trailing Stop). This is how I trade it. I enter the trade based on the crosses but my exit is determined by price movement. If it reaches my pre-defined TP's, it exits. Conversely, if it goes against me and hits my SL, again it exits. Is this the best way? I don't know. But, in my testing it was far more profitable to do this than to try and grab some arbitrary number of pips and exit.

Your own testing will show what works best for you.

Cheers,
Art...
  • #571
  • Jun 28, 2007 8:08am Jun 28, 2007 8:08am
Quoting Craig2
I believe that Beach was referring to closing positions at the end of the say (as per your question).

Waiting for the close refers to ENTRY rather than EXIT. You wait for the candle to close to confirm that there is an incontrovertible cross before entering a position.
If you are trading using only the Daily chart, this is correct; wait for the close of the Daily bar/candle before making a trade decision.
  • #572
  • Jun 28, 2007 8:12am Jun 28, 2007 8:12am
Quoting Artamon
G'day Tikin,

If I understand the statement correctly, I read it as there are no signals that you wait for in order to close out a position. It either hits your TP or your SL (or Trailing Stop). This is how I trade it. I enter the trade based on the crosses but my exit is determined by price movement. If it reaches my pre-defined TP's, it exits. Conversely, if it goes against me and hits my SL, again it exits. Is this the best way? I don't know. But, in my testing it was far more profitable to do this than to try and grab some arbitrary number of pips and exit.

Your own testing will show what works best for you.

Cheers,
Art...
I agree with Art wholeheartedly; my backtesting and experience has lead me to trade this way. Succombing to the temptation to grab early pips will lead to an overall loss. Why? Because most traders will let a trade run to a S/L but not the T/P, resulting in unbalanced and improper R/R and MM.

However, every trader needs to do their own homework and establish their own personal trading rules.
  • #573
  • Jun 28, 2007 9:04am Jun 28, 2007 9:04am
So would you say, on major pairs, that when the setup comes into play we expect to get on average around 30/40/50 pips?!?

I would say 30 at least?

Quoting BeachBum
I agree with Art wholeheartedly; my backtesting and experience has lead me to trade this way. Succombing to the temptation to grab early pips will lead to an overall loss. Why? Because most traders will let a trade run to a S/L but not the T/P, resulting in unbalanced and improper R/R and MM.

However, every trader needs to do their own homework and establish their own personal trading rules.
  • #574
  • Jun 28, 2007 3:55pm Jun 28, 2007 3:55pm
Quoting BeachBum
I agree with Art wholeheartedly; my backtesting and experience has lead me to trade this way. Succombing to the temptation to grab early pips will lead to an overall loss. Why? Because most traders will let a trade run to a S/L but not the T/P, resulting in unbalanced and improper R/R and MM.

However, every trader needs to do their own homework and establish their own personal trading rules.
Man o man. How true is THAT. I am finding this out via experience. I keep track of my trade - post close if I TP before I stop or hit my target, and It is true - it is a DUMB-ASS thing to do.
I'm pretty much done with all this ...
  • #575
  • Jun 28, 2007 4:00pm Jun 28, 2007 4:00pm
Quoting guess121
So would you say, on major pairs, that when the setup comes into play we expect to get on average around 30/40/50 pips?!?

I would say 30 at least?
Cannot say straight out. It depends (doesn't always?). You'd have to know YOUR system expectation, and then actually trade it. Pip counts are not the measure.

Some traders have very high expectancies (a far more important number than pips - by far). You need to think differently. Pips are simply not the measure at all. Expectancy is. Get Van Tharps Trade Your Way To Financial Freedom and see why I say this.

Of course MM is essential.
I'm pretty much done with all this ...
  • #576
  • Jun 28, 2007 4:16pm Jun 28, 2007 4:16pm
  •  TPO
  • | Joined Sep 2006 | Status: One Life, One Chance | 68 Posts
And the rest
  • #577
  • Jun 28, 2007 5:50pm Jun 28, 2007 5:50pm
Here are my 3 new trades for today.

Short USD/CAD
Attached Image


Long USD/CHF
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Short EUR/USD
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  • #578
  • Jun 28, 2007 5:54pm Jun 28, 2007 5:54pm
Quoting guess121
So would you say, on major pairs, that when the setup comes into play we expect to get on average around 30/40/50 pips?!?

I would say 30 at least?
guess................if you have to ask this question; you don't understand "basic Fozzy". In fact, you may not understand basic R/R and MM. ALL the information you need is right here in this sub-forum, provided FOC by many great FF members, beginning with Fozzy himself. Time for some reading!
  • #579
  • Jun 28, 2007 5:59pm Jun 28, 2007 5:59pm
Quoting lholcomb
Here are my 3 new trades for today.

Short USD/CAD
Attachment
lholcomb................I do not disgaree with your charts, but want to point out something for those who are still "learning" Fozzy trading:

Look at the 4 hour chart on the USD/CAD. What do you see? I've been short since 1.0700. Two lots closed, one will run until exhausted.

Learning a 4 hour method has it's advantages!
  • #580
  • Jun 28, 2007 6:05pm Jun 28, 2007 6:05pm
Quoting BeachBum
lholcomb................I do not disgaree with your charts, but want to point out something for those who are still "learning" Fozzy trading:

Look at the 4 hour chart on the USD/CAD. What do you see? I've been short since 1.0700. Two lots closed, one will run until exhausted.

Learning a 4 hour method has it's advantages!
CRAP!! Would you look at that...well unfortunately I have an 8-5 so the 4H isn't really an option for me. Way to go!
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