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The Daily Fozzy Method

  • #2,581
  • Oct 12, 2007 10:59am Oct 12, 2007 10:59am
Quoting BeachBum
StoragePro and Trader_V.......

Two excellent posts: it's very nice to have posts from those who have only posted a few times in the past!

TV...........just so you and I are on the same page; 6 point filter?
Do you have the Fozzy indicators created a long time ago by miscon777? (If not, search the attachments on this thread.)

Thanks BB appreciate the compliment. In a previous post you said:

"One the traders who has posted in this thread recently will only accept a cross that has a 6 point or greater difference in value; great filter IMO."

That is what I was refering to. I don't have an actual Fozzy indicator I just applied the RSI/ MA to my chart accordingly. I also found CCI set at 21 very helpful for finding Divergence.

I will be performing a search for the indicator that you mentioned. Maybe just maybe I might learn how to program one of these days
Nothing is impossible, with a willing mind!
  • #2,582
  • Oct 13, 2007 5:30am Oct 13, 2007 5:30am
Quoting Trader_V
Ok got another question for some of you folks. clearly Money Management is the key to sucessful trading combined with a decent system.

Do you move your SL to break even after the market has moved a certain amount of pips in your direction and take partial profit?

Do you Look for your first TP at areas of S/R, take partial profit and move SL to break even?
This would be a great discussion, Trader_V. I suppose most of the people here already know how to trade a Fozzy cross, so the next challenge would be to learn a successful MM. At least I need, because my MM is still bad.

I usually move my stops to BE after the first TP is reached, which usually equals the stop size, i.e. ATR(20)*0.7. But many times it happened that I was stopped out only to see the pair moving again in the same direction.
We leave no soldier behind.
  • #2,583
  • Oct 17, 2007 12:09pm Oct 17, 2007 12:09pm
  •  Trader#0000
  • | Status: Unregistered Trader
Guys,

A quick basic questiion - In the MA for Fozzy method should it be EMA or just a basic MA ?




Thanks a lot.
  • #2,584
  • Oct 17, 2007 2:25pm Oct 17, 2007 2:25pm
Quoting ricardo
Guys,

A quick basic questiion - In the MA for Fozzy method should it be EMA or just a basic MA ?




Thanks a lot.

Well I have seen the orignal method call for the use of a SMA and I have seen others use an EMA. I personally think the EMA provides some cleaner signals at times but that is just my opinion.

Hope this helps.
Nothing is impossible, with a willing mind!
  • #2,585
  • Oct 18, 2007 5:47am Oct 18, 2007 5:47am
Hi there Fozzy! Thanks a lot for sharing your system with your fellow traders. Can u stress a bit more on stop loss and take profits. What exactly are the exit rules? Can we have a fixed number of pips stop loss and take profit for this system?

Thank you!!
  • #2,586
  • Oct 19, 2007 9:51am Oct 19, 2007 9:51am
The Fozz does not stop here much - although he may lurk.... Which is what I tend to do....

Exit and stop loss. I trade only the daily timeframe - 4 hr rules would likely be different....

Normally, my stop is the far side of the closing bar - plus 10 pips. Money Management makes this very tolerable.

Moving a stop is very mechanical for me - as the bars proceed, I move it tot the bottom of the just closed bar - but only move it in a positive gain direction of course. As the pair begins to roll, I *might* employ a two bar stop to stay in the game.

Getting out - You never know what will actually occur, but many people target resistance zones as a great stopping point. However, that can be pretty frustrating if you jump out, and the pair blows right through it and picks up another 500 pips without you.

So, for me, I can and have set stops at a resistance or support, especially if they look strong. SO far, no regrets - but it is just a matter of time.... I'm sure.

As a rule, I will let the market tell me when it is over and take me out.

Can you target a number of pips and then get out and still make money? In my opinion - no. You have to take the pips and continue to take them as they are handed out. Don't get nervous - you have not lived until you've scored a 1000 pip move. They are glorious.

The key to success is to limit your exposure to 1% or less if you are new to this and move your stops up to lessen the loss if it turns on you.

Strangely enough, trading is a losers game. What I mean is that he who loses the least amount will win - provided he allows his winners to run. hat is the key - Control your risk with money management, move your stops up in a regular fashion based a simple rule or two, and let 'er ride.

To win, lose less. That is the key.

Quoting lolla
Hi there Fozzy! Thanks a lot for sharing your system with your fellow traders. Can u stress a bit more on stop loss and take profits. What exactly are the exit rules? Can we have a fixed number of pips stop loss and take profit for this system?

Thank you!!
I'm pretty much done with all this ...
  • #2,587
  • Edited 6:10am Oct 26, 2007 6:06am | Edited 6:10am
Quoting fozzy
This is my first post on FF after months of reading and trying some of the numerous systems provided by members of this forum. Months ago I came across the following indicators that were posted on one of the Vegas threads. I cannot remember who posted it but I am extremely grateful for their insight and hope they do not mind if I show my way of using this indicator.

After months of testing and swapping from system to system I've come back to this indicator and in hindsight I should have stuck with it from the start as it seems to work for my style of trading.

Anyway, on with the detail. I only trade daily charts and only EUR/USD, GBP/USD, USD/JPY and USD/CHF. Why these? Primarily because these are the only ones I have backtested and have been trading for the last 3 months. I also tend not to trade Monday mornings (Australian time) as prices sometimes gap over the weekend. However, this is discretionary.

On each chart I have an 8 period RSI. I also have an 8 period MA of the RSI and Bollinger Bands with a 20 period setting, also on the RSI.

Long Entries: RSI must be below the middle Bollinger Band. Enter long on the open of the next bar after the MA has crossed above the RSI.
Short entries: RSI must be above the middle Bollinger Band. Enter when MA crosses below RSI.

Stop loss is the low/high of the previous bar. I move S/L to break even if the price moves greater than 40 pips in my direction. After the initial 40 pip move I use a trailing stop for exits (25 pips).

I only look at the charts once per day, just before 0.00 GMT. This way I know which pairs are approaching my set-up. I then place trades if my criteria has been met. That's it. A simple system that seems to work for me. Looking at charts all day does not suit me as I have a real job and I'm not in a convenient timezone. 10 minutes a day is all I need. This method provides a limited number of trades but the trades can last anywhere from 1 day to numerous days. There can also be days on end with no trades. I have found that the secret is have patience. I also have come to believe those who say longer timeframes are easier, especially for newbies.

I'm not going to say this system will always work but for me it has generated over 400 pips in September already. Please try this out on demos before putting your hard-earned into it. Just because it is working for me (at the moment) does not mean it will suit everyone.

Please feel free to comment.
Thanks Fozzy,
Iwould like you to please explain what I should do here.
To Buy:= RSI must be below the middle Bollinger Band. Enter long on the open of the next bar after the MA has crossed above the RSI.
Should I buy when the RSI is below the middle Bollinger Band and when the MA is also above the RSI but under the middle Bollinger Band or when it is also above middle Bollinger Band.....in the daily method?
Looking forward to reading your explaination soon.
Thanks.
Arnold.
I.e Should I buy when
  • #2,588
  • Oct 26, 2007 7:52am Oct 26, 2007 7:52am
Quoting Arnoldchidi
Thanks Fozzy,
Iwould like you to please explain what I should do here.
To Buy:= RSI must be below the middle Bollinger Band. Enter long on the open of the next bar after the MA has crossed above the RSI.
Should I buy when the RSI is below the middle Bollinger Band and when the MA is also above the RSI but under the middle Bollinger Band or when it is also above middle Bollinger Band.....in the daily method?
Looking forward to reading your explaination soon.
Thanks.
Arnold.
I.e Should I buy when
Arnoldchidi............

Fozzy has not posted in months...................he's busy using profits from his method to develop a tropical island!

The link in my signature can be used to find the thread that has an excellent e-book that should answer your questions and get you started with this strategy. All the best................
  • #2,589
  • Oct 28, 2007 11:42pm Oct 28, 2007 11:42pm
At the expense of everyone rolling their eyes, I'll ask the ques. anyway. I've set up the Fozzy method & have added indicators as recommended by all you generous people, including the daily Vegas. How does the Vegas Tunnel work? I've googled & search FF, but can't seem to find an explanation for all those wavy lines. What do I do w/ those lines, as well as the 24,28ema's?
Thnx for your leadership---Sid
  • #2,590
  • Oct 28, 2007 11:48pm Oct 28, 2007 11:48pm
Quoting yendis70
At the expense of everyone rolling their eyes, I'll ask the ques. anyway. I've set up the Fozzy method & have added indicators as recommended by all you generous people, including the daily Vegas. How does the Vegas Tunnel work? I've googled & search FF, but can't seem to find an explanation for all those wavy lines. What do I do w/ those lines, as well as the 24,28ema's?
Thnx for your leadership---Sid
Can you see my eyes rolling?

I think a pre-requisite for joining FF should be taking a course on how to use the "Search" feature..............
Attached Image (click to enlarge)
Click to Enlarge Name: vegas_tunnel.png Size: 103 KB
  • #2,591
  • Oct 29, 2007 3:40pm Oct 29, 2007 3:40pm
Quoting BeachBum
Arnoldchidi............

Fozzy has not posted in months...................he's busy using profits from his method to develop a tropical island!

The link in my signature can be used to find the thread that has an excellent e-book that should answer your questions and get you started with this strategy. All the best................

Thanks,
How do I get the EMA that you explained and the e-book that you mentioned ?. So I can start trading more accurately.
Thanks
Arnold
  • #2,592
  • Oct 29, 2007 4:25pm Oct 29, 2007 4:25pm
Quoting Arnoldchidi
Thanks,
How do I get the EMA that you explained and the e-book that you mentioned ?. So I can start trading more accurately.
Thanks
Arnold
Did you read my last post explaining HOW to find the information you requested?

If English is not your first language, please tell me; otherwise I will continue to work on my plans to become a recluse.

Edit: OK, I just looked at your other posts; you want someone else to do your work for you. I get it now! Just curious: do you work for the government and have millions of dollars in a secret account that needs to be transferred to the US? If so, I'll send you my banking information immediately by PM.
  • #2,593
  • Oct 30, 2007 6:32am Oct 30, 2007 6:32am
BB............ Please accept a hug.............your patience and replys are appreciated greatly................roll those eyes back and take yourself to a gently peeling uncrounded point and relax...........

I will dedicate my early on the Currumbin shoreys, to your time and efforts.......

Regards

RBS
  • #2,594
  • Oct 30, 2007 8:31am Oct 30, 2007 8:31am
RBS..................thanks for the hug!

On a different note:

For those of you who like Fozzy-style trading, I found something of interest at the forex-TSD forum. The thread is called "Synergy Trading Method", and contains information very similar to what many of us do with the basic 8 over 8 method and/or variations of this strategy. There is an MT4 custom indicator that I will attach for your entertainment. The indicator has an RSI, Bollinger Bands, a couple of MAs (most with different names) and an explanation of how you can use the indicator for different styles of trading. Open the indicator with MetaEditor and you can read the instructions. The thread is not very long and contains comments and observations that I found interesting at least.....might be worth reading if you have the time.

One other observation: This "Traders Dynamic Index" indicator uses a MA (7) over a RSI (13) for the basic settings. I've tried different combinations of these two with varying results; there's another thread here at FF where one of the traders is using a 21 over 21 on 1 hour charts. And I have a friend who has done some backtesting in Tradestation with different combinations and his results suggest different values work better with different currencies on different time frames.

My point is this. If you have the time and are so inclined, you might develop your own personalized set of values for currencies and time frames. I don't believe it would be a big deal to do this and the results could be very useful and successful.

Just a few random thoughts to stimulate your trading homework.
Attached File(s)
File Type: mq4 Traders Dynamic Index VISUAL ALERTS.mq4   19 KB | 1,156 downloads
  • #2,595
  • Nov 1, 2007 6:50pm Nov 1, 2007 6:50pm
hi all.

i am starting to test the Fozzy EA and like to jnow how Fozzy did this year form January to July when we had bad conditions... small dd? medium? big?

thanks
  • #2,596
  • Feb 25, 2008 9:17am Feb 25, 2008 9:17am
So quite here! How are u doing ?
  • #2,597
  • Feb 25, 2008 1:12pm Feb 25, 2008 1:12pm
Quoting 4newbie
So quite here! How are u doing ?
Shhhhhhhh.........earning $$$ with the Fozzy method using daily charts (and the occasional 4 hour) is quiet work!
  • #2,598
  • Feb 25, 2008 1:23pm Feb 25, 2008 1:23pm
Quoting BeachBum
Shhhhhhhh.........earning $$$ with the Fozzy method using daily charts (and the occasional 4 hour) is quiet work!
  • #2,599
  • Feb 25, 2008 2:10pm Feb 25, 2008 2:10pm
Quoting BeachBum
Shhhhhhhh.........earning $$$ with the Fozzy method using daily charts (and the occasional 4 hour) is quiet work!
LOL!!!
  • #2,600
  • Feb 26, 2008 2:44am Feb 26, 2008 2:44am
Quoting BeachBum
Shhhhhhhh.........earning $$$ with the Fozzy method using daily charts (and the occasional 4 hour) is quiet work!

It is great to see you are still here BB.
Regards
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