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The Daily Fozzy Method

  • #2,481
  • Jul 15, 2007 10:02pm Jul 15, 2007 10:02pm
mike...............without the details of your trades; I don't know how anyone could comment intelligently.

Quoting mikelath
Hi all.
I just wanted to get some feedback on last week's fozzy method trades.

I may have entered too early on the setups that i saw, so I'm open to be set straight on this.

I was stopped out on EURUSD, GBPUSD and USDCHF. I made some profit on the USDJPY as I took profits when the trade went in my favour and also reset the stop so that the last lot was stopped out in profit.

Did anyone have a similar experience ?

Last week was my first time paper trading this method and because it has recieved much acclaim both on FF and beyond I am serious about adopting it for live trades once I've paper traded it successfully.

rgs
mike
  • #2,482
  • Jul 19, 2007 3:53pm Jul 19, 2007 3:53pm
hey their i was wondering if some one here can answer my question
Nothing is impossible
  • #2,483
  • Jul 21, 2007 7:54pm Jul 21, 2007 7:54pm
Hi folks,

Let me be the latest one to jump aboard the Fozzy Train. After spending the last week or so reading all 166 pages of this monster (while experimenting progressively as more suggestions were made about S/Ls, T/Ps, adding indicators, removing indicators, etc), I can confidently say that I see a lot of potential (as if it hasn't been proven already ). I can now start backtesting more seriously and make my own final decision as to what feels comfortable for myself.

One thing that is almost guaranteed to make its way into my own Fozzy version as exit strategy is candlesticks analysis. I have been a fan of candlesticks for a while now, and should be able to get my hands on Steve Nison's renowned original book next week at my local library. Looking forward to it.

Like many new Forex traders, I did a little reading early on for a week or so and figured I was ready to make piles of money. So I opened a live mini account and started trading. 3 weeks (and 40% of my deposit) later, it finally clicked that I wasn't doing it right. Jumping in trades just because my broker's "experts" made it their daily or weekly strategy, not being in control of my emotions by trying to "get even" when losing money (like placing an opposite order if I got stopped), moving my S/L when it was about to be hit. You name the mistake, I made it.

At that point, I took a step back and re-examined my whole strategy. I read probably 10 times more material than before I first got started (not even including this thread ), and hammered in my conscious and sub-conscious that losing trades are part of the whole process. I used to get so mad at every losing trade that I likely would not have lasted much longer, I think.

Anyway, glad to be aboard. Now, if I may talk about what has been disappointing lately with this thread and sub-forum. When I read the first 120 or so pages of this thread, there was (as mentionned many times) a sort of comradery between Fozzy followers that made it all so much fun to even just read a huge thread. Sadly, the last few months seem to have attracted a bunch of negative whiners that go on long diatribes if they're not given the key to the Mercedes right from the start by those that went through hundreds of hours of monitor staring working the kinks out of their own version of this system. This, in turn, seems to have turned many of those long time followers somewhat cynical (not that I blame them). I guess that's the unfortunate result of the higher profile of this system.

Alright, enough of my blabbing, let's get pippin'.
  • #2,484
  • Jul 21, 2007 9:54pm Jul 21, 2007 9:54pm
Welcome Metalhawk.....

When properly applied, "Fozzy-style" trading is profitable. And I agree with you that the addition of candlestick analysis can help; just be sure to backtest thoroughly!
  • #2,485
  • Jul 22, 2007 12:28am Jul 22, 2007 12:28am
Thanks for the welcome.

Quoting BeachBum
just be sure to backtest thoroughly!

If this has not been ingrained into my brain by now after 166 pages and it being repeated hundreds of time, it never will be.
  • #2,486
  • Jul 22, 2007 5:08am Jul 22, 2007 5:08am
how to calculate jp atr?
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Nothing is impossible
  • #2,487
  • Jul 22, 2007 8:33am Jul 22, 2007 8:33am
Quoting abman4444
how to calculate jp atr?
Read the thread. It is in there.
I'm pretty much done with all this ...
  • #2,488
  • Jul 22, 2007 8:38am Jul 22, 2007 8:38am
Quoting Metalhawk
Thanks for the welcome.

If this has not been ingrained into my brain by now after 166 pages and it being repeated hundreds of time, it never will be.
Takes more than reading my friend! This method is darn good, but like any other, it will require practice to make it ingrained. Until you get some time and use of it under your belt, it is just a bunch of words. In fact, you'll begin to notice that not all crosses are to be treated equally. Some crosses are just plain high risk - and eliminating those (or say half of them) will give your account an amazing boost!

Take some time and readthe James16 threads. Adding in Price Action analysis strrengthens any methodology. The James16 thread is the the best on the site (Outside of the private forum!)

All the best and success to you and your family.
I'm pretty much done with all this ...
  • #2,489
  • Jul 22, 2007 1:21pm Jul 22, 2007 1:21pm
Quoting StoragePro
Takes more than reading my friend! This method is darn good, but like any other, it will require practice to make it ingrained. Until you get some time and use of it under your belt, it is just a bunch of words. In fact, you'll begin to notice that not all crosses are to be treated equally. Some crosses are just plain high risk - and eliminating those (or say half of them) will give your account an amazing boost!

Take some time and readthe James16 threads. Adding in Price Action analysis strrengthens any methodology. The James16 thread is the the best on the site (Outside of the private forum!)

All the best and success to you and your family.
I was referring to the principle of backtesting before doing anything live with a new method. But you are right though that backtesting alone is not going to make it easy to trade this (or any) method live.

As for James16's thread, I guess I'll head there right now. Thanks for the advice!
  • #2,490
  • Jul 22, 2007 6:04pm Jul 22, 2007 6:04pm
Quoting Metalhawk
I was referring to the principle of backtesting before doing anything live with a new method. But you are right though that backtesting alone is not going to make it easy to trade this (or any) method live.

As for James16's thread, I guess I'll head there right now. Thanks for the advice!
Got it.

Forward testing is even better!
I'm pretty much done with all this ...
  • #2,491
  • Jul 22, 2007 6:16pm Jul 22, 2007 6:16pm
Quoting StoragePro
Forward testing is even better!
My belief is 3 (or 4) steps: Back-testing -> Forward testing -> Live micro account (-> Live mini/standard account).

Although back-testing is not mandatory, you could save yourself a lot of time by not forward testing a losing system. Then again, I'm sure I'm just telling you stuff you've known for a long time.
  • #2,492
  • Jul 23, 2007 6:25am Jul 23, 2007 6:25am
Yes! Finally!
Finished this thread in 3 days. Which wasn't that bad at all. Now on to the back testing and forward testing.

Looks like my next read would be Mouteki and James16 thread. As you guys like to say....start from post #1!!

I've been seeing comments about studying James16 Price Action and found their private website. Has anyone tried joining their group?

Thanks for the great read guys!
  • #2,493
  • Jul 23, 2007 8:32am Jul 23, 2007 8:32am
Quoting francob604
Yes! Finally!

I've been seeing comments about studying James16 Price Action and found their private website. Has anyone tried joining their group?

Yep. Excellent.
I'm pretty much done with all this ...
  • #2,494
  • Jul 23, 2007 8:44am Jul 23, 2007 8:44am
Quoting francob604
I've been seeing comments about studying James16 Price Action and found their private website. Has anyone tried joining their group?

Thanks for the great read guys!
I've been a member of the Private Forum since day one................priceless!
  • #2,495
  • Jul 26, 2007 7:14pm Jul 26, 2007 7:14pm
Greetings all,

Forgive me if this post becomes a trifle long. First off I would like to offer my sincere thanks to Fozzy for such an outstanding method. You have provided me with the missing piece to my jigsaw . Praise must also go to all those who have contributed to this thread. Without you I would not have reached my eureka moment. I must confess that I did not start using this method until about 2 months ago. I have live traded using Fibonacci for about 18 months now, with a fair degree of success. However I have always been searching for a trigger method with a high % success rate that would confirm my own analysis for entering trades. Over time I have used nearly every indicator going in various combinations and settings. Some good, some not so. Then I came across this thread. Having read all the posts, it struck me that here was the rock solid indicator I was looking for. Simple back testing provided proof of this. Upon reading the entire thread for a second time ( The Encyclopedia Britannica ? ) it became clear that TP levels was an issue that many struggled with. Also it seemed to me that the reason why so many tried to add other indicators to the original method was to filter out some of the signals that ended up going south. To that end I would like to offer my thoughts from a fibo traders perspective. Since you have all helped me to improve as a trader I would like to offer something in return. While I suspect many using the Fozzy method have used fibo in one form or another in the past ( I note the use of Vegas tunnels mentioned several times ) correct fibo use can provide pinpoint exits, as well as keep you out of non starter trades. I say correct because many do not apply the techniques as they are meant to be used. While I am no expert I discovered long ago its power of prediction and how, if applied to the markets in the right way, can give uncanny results over and over. Many, many hours spent reading and learning about fibo gave me the method I would pursue. The daily Fozzy method is the icing on my cake. IMHO both work best on longer timeframes. Since most of us probably have day jobs this is the ideal vehicle for our trading. Later 2day I will post a chart of a recent trade using Fozzy and fibo, together with my analysis in the hope that it helps all Fozzy users.
Those that can, do, those that can't, teach.
  • #2,496
  • Jul 27, 2007 7:30am Jul 27, 2007 7:30am
Welcome to the Fozzy thread, pf1966

In his excellent e-book, the bhoy refers to the use of Fib levels with the Daily Fozzy and I have used them as part of the Vegas Daily Tunnels almost since the beginning of my Fozzy trading career. But I would very much like to learn more about the application of these to our Fozzy trading; and therefore welcome and look forward to your sharing this information with us!

On another note: the past week and a half or so has produced some of the best Fozzy-style trading I have seen since I began using this method last September. Fozzy trading has been somewhat "flat" for the past couple of months (the use of 4 hour Fozzy during this period has kept me profitable), but recently there were a lot of pips to be earned. I trust all of you Fozzy traders have done well recently!


Quoting pf1966
Greetings all,

Forgive me if this post becomes a trifle long. First off I would like to offer my sincere thanks to Fozzy for such an outstanding method. You have provided me with the missing piece to my jigsaw . Praise must also go to all those who have contributed to this thread. Without you I would not have reached my eureka moment. I must confess that I did not start using this method until about 2 months ago. I have live traded using Fibonacci for about 18 months now, with a fair degree of success. However I have always been searching for a trigger method with a high % success rate that would confirm my own analysis for entering trades. Over time I have used nearly every indicator going in various combinations and settings. Some good, some not so. Then I came across this thread. Having read all the posts, it struck me that here was the rock solid indicator I was looking for. Simple back testing provided proof of this. Upon reading the entire thread for a second time ( The Encyclopedia Britannica ? ) it became clear that TP levels was an issue that many struggled with. Also it seemed to me that the reason why so many tried to add other indicators to the original method was to filter out some of the signals that ended up going south. To that end I would like to offer my thoughts from a fibo traders perspective. Since you have all helped me to improve as a trader I would like to offer something in return. While I suspect many using the Fozzy method have used fibo in one form or another in the past ( I note the use of Vegas tunnels mentioned several times ) correct fibo use can provide pinpoint exits, as well as keep you out of non starter trades. I say correct because many do not apply the techniques as they are meant to be used. While I am no expert I discovered long ago its power of prediction and how, if applied to the markets in the right way, can give uncanny results over and over. Many, many hours spent reading and learning about fibo gave me the method I would pursue. The daily Fozzy method is the icing on my cake. IMHO both work best on longer timeframes. Since most of us probably have day jobs this is the ideal vehicle for our trading. Later 2day I will post a chart of a recent trade using Fozzy and fibo, together with my analysis in the hope that it helps all Fozzy users.
  • #2,497
  • Jul 27, 2007 8:18am Jul 27, 2007 8:18am
Quoting BeachBum
Welcome to the Fozzy thread, pf1966
On another note: the past week and a half or so has produced some of the best Fozzy-style trading I have seen since I began using this method last September. Fozzy trading has been somewhat "flat" for the past couple of months (the use of 4 hour Fozzy during this period has kept me profitable), but recently there were a lot of pips to be earned. I trust all of you Fozzy traders have done well recently!
I thought I was the only one who noticed that! The last few weeks have been great. It has been as easy as falling off a log!

There has been some flatness - no doubt. Summer doldrums? I guess that is where PA comes in. Nothing like Price Action (just the facts) to keep one out of a whipsaw...
I'm pretty much done with all this ...
  • #2,498
  • Jul 27, 2007 4:38pm Jul 27, 2007 4:38pm
Thanks BB. Here is the chart. I have chosen this one since it shows very well the 2 points I previously mentioned, namely TP and how to possibly avoid some signals. For clarity I have omitted some of the fib levels. The green lines are drawn from the whole move 5th March low to 22nd June high. The yellow line is a 61.8%R of A to B. The blue line a 50%R of A to D.
Since fibo is predictive it can offer an insight into where the market might end up. Potential TP points if we are in a trade already, or how much up/down side there is from our entry point if we are going to taking a trade.
Lets now focus on the Fozzy buy signal 1. Is this worth taking? Yes. A bounce out of trend line support (white line) should at least take us to a retest of the previous swing high, or even new highs. Oops. Warning bells go off on the stall at the 61.8%R C. TP, rest to BE.
Sell signal 2. If you went short here and managed to sit through the 6 days of sideways action, why would you then revert to long at 3 only to reverse to short at 4? Here's where common sense and fibs help. Do not blindly trade every signal. We've all seen this before. A strong thrust in one direction only to go sideways or up or both. At the risk of missing a trade, why not stand aside to await a better entry.
Which brings us to buy signal 3. A no brainer. Where is the upside? The best we can hope for is a 50%R where it has failed twice before.
Sell point 4. Now this looks good. The market clearly wants to go down. Lower swing highs, lower swing lows and a qualified TL break.
The red lines are fibo expansions, projected levels off the move A to B. Good TP points if we get there. Now the sell candle 20th has already touched the 1st line but our focus now turns to the 38.2R just below at W. As it happens we enter Mon open higher up than Fri close. Straight away our R/R ratio is improved. 2nd TP is the 100% fib exp at X. Y is a confluence of fibs 1.618 exp and 61.8R. Z is the shoot for the moon level, which we reach to the pip.
I hope this insight into how I use fibo in conjunction with Fozzys daily method will be of benefit. Hopefuly I have explained myself fairly clearly. Should you have any questions or queries please feel free to PM me. Over the weekend I will post some final thoughts and guidance.
Attached Image
Those that can, do, those that can't, teach.
  • #2,499
  • Jul 28, 2007 9:54am Jul 28, 2007 9:54am
pf1966.................great Fib trading instructions! More would be appreciated.......

Please clarify for us the currency pair in your posted chart and the dates pictured. Thanks!
  • #2,500
  • Jul 28, 2007 9:56am Jul 28, 2007 9:56am
Quoting StoragePro
I thought I was the only one who noticed that! The last few weeks have been great. It has been as easy as falling off a log!

There has been some flatness - no doubt. Summer doldrums? I guess that is where PA comes in. Nothing like Price Action (just the facts) to keep one out of a whipsaw...
I think this thread is quiet when traders are making money the old-fashioned Fozzy way!
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