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Please suggest a simple & effective Method/System of "Trading System" Forum to newbie

  • #101
  • Oct 1, 2007 9:13am Oct 1, 2007 9:13am
Quoting Faith
Hi johnedoe,

Confused in what aspect(s)?
Can you mention more?

Thanks
it's just that there is alot of info out there....and after a while it all starts getting a bit blurry....
Same Whore .... Different Dress
  • #102
  • Oct 1, 2007 10:50am Oct 1, 2007 10:50am
Quoting Vantage
Just stumbled onto this reply now by accident. Hey please don't knock it till you've tried it. Traex typically does 500 pips plus per week. Yes you read right, per week with a very high win %.

To follow his trades whilst you are learning to put your own trading style together would be very good indeed. Then once you have a system if he gives a call make sure your own system confirms.

Just my view obviously and I respect yours.

Traex ? may i ask who is this enlightening fellow ?

buying all usd/chf, gbp/usd, eur/usd and usd/jpy seems to be the idea of Freedomrocks ?

i remember someone suggested buying usd/chf and eur/usd and just grab profits and start over.
  • #103
  • Oct 2, 2007 3:01am Oct 2, 2007 3:01am
Quoting findcount
Traex ? may i ask who is this enlightening fellow ?
Very good Elliott wave trader. Go through his thread, Harmonic Wave Journal, see how consistent he is and decide if you want to follow his trades.
  • #104
  • Oct 2, 2007 7:18am Oct 2, 2007 7:18am
Quoting Vantage
Very good Elliott wave trader. Go through his thread, Harmonic Wave Journal, see how consistent he is and decide if you want to follow his trades.
many thanks........i've never visited that thread as the title sort of sound too technical and complex for me.........

so you mean he'll post his trades before he takes them ? if that's the case and makes 500 pips per week........i don't mind worshipping him as a deity....


anyway, today very very frustrating for me as i wasn't around and missed the breakout of usd/chf and eur/usd...........i seem to miss profitable opportunities but not the losing ones.......
  • #105
  • Edited 10:36am Nov 24, 2007 9:55am | Edited 10:36am
Put a 1 moving average based on the average of the high and low and have it cross a 5 moving average based on the open with shift set on 1. Put it on a 4 Hour or 1 day chart. Simple and easy to trade. Since you are using a 1 moving average it is not a lagging indicator. If you trade the 4 hour chart you will be trading 2-3 times a week and you have plenty of time to enter and exit trades. Please see next post for a chart.

Good luck
Bob
  • #106
  • Nov 24, 2007 10:03am Nov 24, 2007 10:03am
Quoting findcount
many thanks........i've never visited that thread as the title sort of sound too technical and complex for me.........

so you mean he'll post his trades before he takes them ? if that's the case and makes 500 pips per week........i don't mind worshipping him as a deity....


anyway, today very very frustrating for me as i wasn't around and missed the breakout of usd/chf and eur/usd...........i seem to miss profitable opportunities but not the losing ones.......


This attitude will lose you many pips. Let me explain:

You are basically saying in this above quote that you are NOT willing to put any thought into this. Forex is a business, nothing else. There will be losses, and there is the spread. You cannot get out of this fact no matter how good you become. It's the cost of doing business, that's all.

But let me ask you this: Would you open any other business without learning how to do it? This is what keeps the 95% figure out there. Nobody really knows if it's true, but it wouldn't surprise me.

The computer in not an ATM.

If you put the effort in, you will be profitable. If you don't, then hire a money manager.
  • #107
  • Edited 10:31am Nov 24, 2007 10:05am | Edited 10:31am
After you set up the MA then put a stochastic oscillator (not the stochastic indicator) on your screen. Use the settings 5,3,3 with it set on close/close and linear weighted. When it is near 100 be ready to close your buys and prepare to open a sell when it crosses down with the 1MA crossing the 5MA. When it is near 0 get ready to close your sell and prepare to open a buy when the 1 MA crosses back up over the 5MA. This system works on any time frame but I like the 4H or 1 day charts so I don't have to be watching over my computer all day. Place stops above/below the 5 MA to protect sudden market turnarounds. Take your profit and wait for you next opportunity. Works on any currency pairs.

Good luck,
Bob
[IMG]file:///C:/Documents%20and%20Settings/dad/Desktop/eur%20usd%204h.gif[/IMG]
Attached Image (click to enlarge)
Click to Enlarge Name: eur usd 4h.gif Size: 22 KB
  • #108
  • Nov 24, 2007 10:52am Nov 24, 2007 10:52am
Quoting nanningbob
After you set up the MA then put a stochastic oscillator (not the stochastic indicator) on your screen. Use the settings 5,3,3 with it set on close/close and linear weighted. When it is near 100 be ready to close your buys and prepare to open a sell when it crosses down with the 1MA crossing the 5MA. When it is near 0 get ready to close your sell and prepare to open a buy when the 1 MA crosses back up over the 5MA. This system works on any time frame but I like the 4H or 1 day charts so I don't have to be watching over my computer all day. Place stops above/below the 5 MA to protect sudden market turnarounds. Take your profit and wait for you next opportunity. Works on any currency pairs.

Good luck,
Bob
[IMG]file:///C:/Documents%20and%20Settings/dad/Desktop/eur%20usd%204h.gif[/IMG]
Hi Bob,

Your system looks good. How do you filter the crosses that may turnaround very soon after you enter? It may cross a lot in the ranging market. The Stoch Oscillator 0/100? Many thanks!

Pipal
  • #109
  • Edited 7:08pm Nov 25, 2007 7:07pm | Edited 7:08pm
The sto is one way and the other is use a 4H or 1 day chart. It only crosses 2 or 3 times a week on a 4 h chart. Even if it turns around it still does quite a few pips before crossing back on the 5 MA. Basically I will enter when price crosses the 5 and it almost always keeps going for a while. Watch out for the news stories cause that is usually the only time it will do that, go against you suddenly. The distance from white line to white line is 1 week on a 4H chart.

Bob
  • #110
  • Nov 25, 2007 7:55pm Nov 25, 2007 7:55pm
I also follow the fundamentals as shown on www.pfxglobal.com If the COT traders are long I will be more patient with the trade. If they are long and the trade is going short I know it wont go short for long.

Bob
  • #111
  • Nov 25, 2007 8:34pm Nov 25, 2007 8:34pm
On say 4 hr time frame... how far above the 5 ma do you put your stops ???

Seems like it is possible this system will eat up a lot of profits by getting stopped out on a lot of little whiplashes... especially if you try to trade against the trend... so being aware of the trend would be very important...

For most of the time on chart I post here... if you try to trade LONG when the ma's cross... you would get stopped out... and stoch does not always go to 0 or 100 before turning...

Maybe I am not understanding the whole thing yet...

Quoting nanningbob
After you set up the MA then put a stochastic oscillator (not the stochastic indicator) on your screen. Use the settings 5,3,3 with it set on close/close and linear weighted. When it is near 100 be ready to close your buys and prepare to open a sell when it crosses down with the 1MA crossing the 5MA. When it is near 0 get ready to close your sell and prepare to open a buy when the 1 MA crosses back up over the 5MA. This system works on any time frame but I like the 4H or 1 day charts so I don't have to be watching over my computer all day. Place stops above/below the 5 MA to protect sudden market turnarounds. Take your profit and wait for you next opportunity. Works on any currency pairs.

Good luck,
Bob
[IMG]file:///C:/Documents%20and%20Settings/dad/Desktop/eur%20usd%204h.gif[/IMG]
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy.gif Size: 11 KB
  • #112
  • Nov 26, 2007 8:04am Nov 26, 2007 8:04am
"On say 4 hr time frame... how far above the 5 ma do you put your stops ???

Seems like it is possible this system will eat up a lot of profits by getting stopped out on a lot of little whiplashes... especially if you try to trade against the trend... so being aware of the trend would be very important...

For most of the time on chart I post here... if you try to trade LONG when the ma's cross... you would get stopped out... and stoch does not always go to 0 or 100 before turning...

Maybe I am not understanding the whole thing yet..."

Understanding how a MA works may help you. A MA is an average of prices. The bigger the numbers in the MA the more below the MA cross price has to go before the average makes the cross. So when people say I use a 5 cross the 10 or 40 cross the 80, price has to go way beyond the crossing MA to make the averages cross. The lines look great but price is way below/above before the lines cross. I use a 1MA between the high and low of a a bar so if price starts 30 points above the 5MA it has to go 30 points below the 5 ma for the cross to happen. Once price has gone that far below its momentum will carry it onward and seldom does it reverse above the 5MA again, even though it can, its seldom does after a clear cross has happened, especially if you use the sto 100, 0 indicator with it. I make trades only when it comes off of extreme highs and lows. The others can cause too much trouble. I checked the eur/jpy for 2007 on a 1 day chart and it crossed 38 times this year. With the sto added there were 25 good trades and all of them would have been profitable to some degree, most for pretty good sums. I think there were two that would have proved scary for a while but eventually they would follow the trend. I have learned that once a trade makes profit I move my stop so it can never make a loss and I keep that to a minimum.

I also use the 5M and 1M charts to enter and the sto must be in the overbought area to enter. This helps prevent the backup common to many peoples trades. I enter sells when sto comes off of 100 on the 5M and 1M charts and buys off the 0 on the same charts. Price soon covers my spread and I move my stop to break even. If it stops out I plan my next entry. I dont like taking losses and I found the best way to handle that is to come off the overboughts on the 1M and 5M charts. With some practice you will see what I mean. I hope you can understand this explanation. So the 4H and 1 day charts give me my signal or if I want to 1 day trade use the 1H. The 1M and 5M gives me my entrances. Soon as my spread is covered I go to break even. I dont wait to stop out at 20 30 40 pips. If the trade is not going in my direction, I get out and get back in when it does. Waiting for the 1M to reach 100/0 range and the 1MA cross the 5 MA has saved me a lot of pips in trading. It is the best advice I could ever give a trader. I know this may have not been the simple answer you wanted but this lesson of using the 1M to enter my trades is the best advice I have ever learned in trading.
  • #113
  • Nov 26, 2007 8:10am Nov 26, 2007 8:10am
here is a recent trade on the eur/jpy 4H chart. Price crosses 5MA around 160.55 this is my signal to enter. see attached pic.
Attached Image (click to enlarge)
Click to Enlarge Name: eur jpy 4h.gif Size: 21 KB
  • #114
  • Nov 26, 2007 8:30am Nov 26, 2007 8:30am
Also notice on the 4H the sto came off of the 0 line. Now look at a 5M chart during this same 4H time period. notice how the sto came off the 0 line here and the 1MA crossed the 5MA here too. This shows a great place to enter without worry of the trade backing up on you. Since the fundamentals tell me the Eur/jpy is in a bear mode I will not be patient with this trade but will take my profit and get out when the sto comes off the 100 or the 1MA crosses the 5 MA here on the 5M chart. see attached chart.
Attached Image (click to enlarge)
Click to Enlarge Name: eur jpy 5m.gif Size: 17 KB
  • #115
  • Nov 26, 2007 8:43am Nov 26, 2007 8:43am
Lets pretend this trade did not work out well. Since I came in off the sto 0 on the 5M it will quickly take me into profit and cover my spread. I set my stop loss to break even and if price does not go up I lose nothing. If the 1 MA crosses back over the 5MA on this 5M chart I can decide to get out with a very small profit or very small loss. I don't wait for it to hit a 20 30 40 pip loss. I just wait for another good entrance. This maximizes your profits and minimizes your losses. Since I have learned to use 1M and 5M charts to enter trades my attitude of using stop losses changes. I dont use them. I try to get my trade at an entrance point where price will go in my direction when I enter my trade, if it doesnt, I am out. 5-10 pip loss is my max. The key is the entrance of a trade. If i am patient and wait for this time the stop loss is not an issue. I have attached a 1M chart of the same time period. It gave me 3 good entrances for this trade. When you enter like this you dont take 20 pip losses. I cant tell you how this has changed my trading by maximizing my entrances.
good luck,

Bob
Attached Image (click to enlarge)
Click to Enlarge Name: eur jpy 1m.gif Size: 14 KB
  • #116
  • Nov 26, 2007 3:48pm Nov 26, 2007 3:48pm
Quoting nanningbob
After you set up the MA then put a stochastic oscillator (not the stochastic indicator) on your screen. Use the settings 5,3,3 with it set on close/close and linear weighted. When it is near 100 be ready to close your buys and prepare to open a sell when it crosses down with the 1MA crossing the 5MA. When it is near 0 get ready to close your sell and prepare to open a buy when the 1 MA crosses back up over the 5MA. This system works on any time frame but I like the 4H or 1 day charts so I don't have to be watching over my computer all day. Place stops above/below the 5 MA to protect sudden market turnarounds. Take your profit and wait for you next opportunity. Works on any currency pairs.

Good luck,
Bob
[IMG]file:///C:/Documents%20and%20Settings/dad/Desktop/eur%20usd%204h.gif[/IMG]
I thought you mentioned a 4 hr chart. It looks like a 1 hr chart in your next post.
  • #117
  • Nov 26, 2007 3:49pm Nov 26, 2007 3:49pm
Sorry i meant your example, not your next post..
  • #118
  • Nov 26, 2007 11:32pm Nov 26, 2007 11:32pm
You are right I did accidentally use a 1H chart instead of a 4H chart on the original post. However, if I use a 4H chart my point still remains the same. I have found the higher chart I use the less problem you have with back lash. I do use the 1H often especially when I am day trading but back lash becomes more common. I still go down to the 1M and 5M charts to make my entrances though, this does help a lot with back lash. Sorry for the mistake.
  • #119
  • Nov 27, 2007 12:18am Nov 27, 2007 12:18am
Spam!

Quoting victoria
There is a very steep learning curve for beginners.
Based on my experience, I suggest that you diversify and invest some of your money in forex managed funds.

Exactly 1 month ago, I opened an account in the Sentiment Aggressive Fund through a brokerage called Self-Actualizer Financial Solutions (http://www.self-actualizer-fs.com) because they give a reduction in the performance fee from 20% to 15% for the first 90 days of new accounts.
My account in that fund is up more than 9% by now after the performance fee for the 1 week in October that my account was active was subtracted. At the same time, my accounts in mutual funds are all down (as much as 12%) relative to where they were 1 month ago.

That fund has had a return of 52% for July-October, 2007. At the moment you can open an account in this fund and the Sentiment Fund with only $1,000, but this minimum will increase to $5,000 on Dec 1.
Also, these funds are completely liquid, so that you can withdraw some of your money (if you keep the min.) or all of it at any time.
  • #120
  • Nov 27, 2007 2:57am Nov 27, 2007 2:57am
Quoting nanningbob
The sto is one way and the other is use a 4H or 1 day chart. It only crosses 2 or 3 times a week on a 4 h chart. Even if it turns around it still does quite a few pips before crossing back on the 5 MA. Basically I will enter when price crosses the 5 and it almost always keeps going for a while. Watch out for the news stories cause that is usually the only time it will do that, go against you suddenly. The distance from white line to white line is 1 week on a 4H chart.

Bob
Hi Bob

Thanks for sharing your system which looks really good. Just a couple of questions - if the 4H only crosses 2/3 times a week, you obviously aren't monitoring the charts all the time to wait for these so you must use some sort of alert system. Can you tell us what it is please ?
Also can you explain a little more about what COT traders do ?

Many thanks
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