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4 Hour Strategy (MACD)

  • #8,001
  • Nov 3, 2007 6:53pm Nov 3, 2007 6:53pm
Pips,

Thank you so much for taking so much time to respond to my questions. I did not want to distract from this wonderful thread, but I had some outstanding questions I just had to ask.

I am going to read over your answer even a few more times, just to make certain I don't miss anything. I have been testing Phillip's methods, listening his lessons and studying by looking over historical data on MT4. I am really starting to get a hang of it all. Very exciting.

I have always wanted to be a full time trader, though I know it will take some more time. I am 29 BTW, I am hoping to be a full time trader sometime between 32 and 35. The biggest obstacle will be a full sized trading account (which is why I am considering yet another job). I think I could have a $200,000 trading account in 3 years, and if I can prove with micro-lots to be successful, hopefully then I can make a decision.

I have a CPA handle my taxes, so I will also discuss it over with him. I wanted at least an idea of what I was getting myself into, and what to really expect after taxes on my gains. Thank you so much.

Looks like I might have to start getting up earlier and following the market. That is fine by me. As I get older, I need less and less sleep, and I love that fact.

I have heard Phillip say this method works on other trading vehicles outside of Forex. Such as stocks, indexes, commodities, etc. Have you or anyone else here tried this method on non-Forex trading vehicles?

Thank you again Pips!
  • #8,002
  • Nov 3, 2007 7:14pm Nov 3, 2007 7:14pm
Quoting shreem
Hello Benniardi, wow! great trade. This TC signal on the USD/CAD was really a perfect exemple of a truly very high probability trade. Nice that you have taken that big run down.

Sincerely

Shreem
This was a good deal but we have to remember that we had two big fundies that helped the CAD. First one was canadian trade balance and second one was nonfarm. Both went our way this time.

I also took this trade, but the news could have gone against us as well, taking out our SL. Next time I will not take this kind of trades so close to these big economic reports... i think
  • #8,003
  • Nov 4, 2007 7:09am Nov 4, 2007 7:09am
unlv_tj:

One thing that you must remember is to be patient. Follow maybe two currencies at the most and don't hunt for trades by looking at 10 pairs. If you can nail down the patience and discipline battle than half of he war is won for you. The other half would be learning the method and money management. And as pips said, don't think about the money all the time and don't let trading become your top priority in your every day routine. Diversions are necessary to negate the tunnel vision that some of us experience from time to time. I've been a victim of that as many of us have. As for trading full time for a living that's a whole different ballgame....If you can be profitable for a year and you can make just as much trading per year than your current salary, then consider it. Not sure of your current living situation but you have to consider your mortgage, health insurance, retirement funds, monthly bills, car payment, vacation money...a lot. You would need to make this amount on a monthly basis. What happens when the markets start ranging for two or three weeks? You might have to seek a different trading approach other than the 4hr method and be profitable at that as well. I'm not trying to throw water on your fire at all, but these are the questions that I have asked myself also. I'm a single income mortgage payer and that automatic paycheck every two weeks is a good thing. I'd like nothing more than have to make several trades a month, play golf, go fishing, work on the 280Z, but I've got a little ways to go. I can follow the markets at work most of the time because I use a broadband laptop card for a connection. Now, if you have a sugarmomma or sugardaddy that says go for it...then by all means go for it. When I started trading futures about 10 years ago I thought that this was it for me, wooo-hooo!!! But, it's not as easy as it looks. Get the method down first, learn discipline (extremely difficult), learn from your losses which you will have, and don't let trading be your only purpose in life. Phillip's method is a very solid and practical approach to trading and I believe it does have the ability to provide a second income. But, you must learn how to adapt to the markets as well in the event that things 'change'.
  • #8,004
  • Nov 4, 2007 7:29am Nov 4, 2007 7:29am
Quoting pips4uandme
If you worry and think about money non-stop you are going to fail. You have to change this mindset or you will not make it because your starting off with the wrong mindset. I tried to show 4 friends exactly what I do, they all failed and the 1st thing they said. "Wow this is easy, I can't wait until I get a Ferrari"


The above was taken from a post from Ryanmcd....& it says so much very wisely! For some strange reason, when we focus on money in the markets, the market takes it away! When you focus on good opportunities, the market gives pips!! (Guess it goes back to fear and greed and seeing something that really isn't there-- along w/scared money.). Nicely said Ryan!

Best,
Pips
Dear pips:
i like Ferrari too, I also like Chresler.hehe.
I need time ,I need money, I need more patience
  • #8,005
  • Nov 4, 2007 7:55am Nov 4, 2007 7:55am
Quoting shreem
Hello all, just wanted to post another very nice exemple of a very profitable trend continuation (TC) in harmony with the current motion of the market with the USD/CAD yesterday on the Nonfarm Payroll day. The beauty of this trade is that it was already showing the direction of the market before the news. (some big players do really have an edge for the direction of the market).

Price was in a confirmed downtrend (under 89SMA) and price retraced to the 21 EMA and then continue it current direction with a TC on MACD. We could have entered either on the 4H at 12:00 hours FXDD time or at the 10:00 hour candle on the 1H FXDD time as it was a retrace to the 89 SMA and amove away in the current direction with bounce through zero of the MACD confirming the downtrend.

Please see both charts

Another great example of the power of the TC on this 4H MACD of Phillip. Just need to create a trading plan and the discipline and patience to follow the plan and not chase every signal but only wait for the hight probability setup.

Sincerely

Shreem
Dear shreem:
Thank you very much for your pictures, i want to know where is your profit and stoploss.
Regards
I need time ,I need money, I need more patience
  • #8,006
  • Nov 4, 2007 8:08am Nov 4, 2007 8:08am
Quoting BIL2205
hello just wanted to add to the TC back testing, If u also keep in mind the time of the TC candle/ macd signal according to your platform, it will give you an insight as to which were more profitbale , For Me on GMT platform and on EURO only 0400 and 0800 candles were the most relaible. As they developed into a profitable trade.I was surprised to see that MOST of the TC were on those times only as well. Very few on 1200 or 1600 and rarely the 2000 candle. Now i am in the process of developing my own trading plan as far is what do i expect from myself as a trader. Its like putting pieces of a puzzle together. One by one it is coming together. if u try to solve it too quickly u will only get more frustrated. But with patience you can reach your goals and once your puzzle is complete then it might start to come naturally to u. And then when u look back from where u started to where u have reached you can be proud of yourself. Some might roll thier eyes at my post. But this is just my progress as a trader and i have no regrets to share it here.

That was my friday speech. !!!, have a great weekend everyone.
Nadia.
HI:
Great find. Do you think we should do nothing in asia time. ONly wait the London open
Regards
I need time ,I need money, I need more patience
  • #8,007
  • Nov 4, 2007 9:28am Nov 4, 2007 9:28am
Your excellency Philip and pips:
I an a new guy, i have studied philip's system for a week from the pdf files, but i found recently, we only taled about the Tc signals, does it means ther other signal is abondened?
Regards
I need time ,I need money, I need more patience
  • #8,008
  • Nov 4, 2007 9:28am Nov 4, 2007 9:28am
Quoting unlv_tj
Pips,

Thank you so much for taking so much time to respond to my questions. I did not want to distract from this wonderful thread, but I had some outstanding questions I just had to ask.

I am going to read over your answer even a few more times, just to make certain I don't miss anything. I have been testing Phillip's methods, listening his lessons and studying by looking over historical data on MT4. I am really starting to get a hang of it all. Very exciting.

I have always wanted to be a full time trader, though I know it will take some more time. I am 29 BTW, I am hoping to be a full time trader sometime between 32 and 35. The biggest obstacle will be a full sized trading account (which is why I am considering yet another job). I think I could have a $200,000 trading account in 3 years, and if I can prove with micro-lots to be successful, hopefully then I can make a decision.

I have a CPA handle my taxes, so I will also discuss it over with him. I wanted at least an idea of what I was getting myself into, and what to really expect after taxes on my gains. Thank you so much.

Looks like I might have to start getting up earlier and following the market. That is fine by me. As I get older, I need less and less sleep, and I love that fact.

I have heard Phillip say this method works on other trading vehicles outside of Forex. Such as stocks, indexes, commodities, etc. Have you or anyone else here tried this method on non-Forex trading vehicles?

Thank you again Pips!
I started when I was 23 I am 31 now so it took me some time. The key here is to not have any or as little bills as you can, I also saved up over 1 years worth of living money before I started but I lived in a cheep apartment and had everything else payed for. The last thing you want to have when trading full time is to have to worry about paying bills, that will cause you to force a trade and you will lose money that way. Just stick with it, also trading is not very exciting, in fact I am in computers so I got a job and traded when at work and did just as well, now I work from home doing computers and trade. Just take it step by step and you will be fine. 1st thing, learn how to make money trading, if you can't do that don't worry about the 200k or paying bills. It like running your own business, I also did that before I traded so I did not freak out when I did not have steady income, also it teaches you how to save when times are slow.
Keep taking CT trades, I need more money
  • #8,009
  • Nov 4, 2007 9:49am Nov 4, 2007 9:49am
Quoting ztdep
Dear shreem:
Thank you very much for your pictures, i want to know where is your profit and stoploss.
Regards
Hello Dear Ztdep, my stop loss would have been a few pips above the 21 EMA just above the high of the previous candle and one take profit would be around .9405 before the round number as there is always the possibility that the price will bounce at round number and the rest will be put at breakeven and let it ride as much as possible as we are in a clear downtrend. A trailing stop of 30 pips will be a good idea.

Hope it help

Sincerely

Shreem
Attached Image (click to enlarge)
Click to Enlarge Name: usd-cad1.gif Size: 16 KB
  • #8,010
  • Nov 4, 2007 10:35am Nov 4, 2007 10:35am
Quoting ztdep
Your excellency Philip and pips:
I an a new guy, i have studied philip's system for a week from the pdf files, but i found recently, we only taled about the Tc signals, does it means ther other signal is abondened?
Regards
Nope. Here's why. It 'feels like' a lot of people are starting to catch on and see what Phillip means by market rhythm, this is good. When the market is trending well and being able to recognize when to get in is important. There are a lot of pips to be made on Round tops (Rt) and Round bottoms (Rb). Getting in on one of those at the right time can turn out to be a very profitable trade. The trend continuations come into play when you understand what the 4hr charts are telling you. It seems easy enough, hey the 4hr is above the 89 and price is at the 21...jump in!!!....The thing is, there could be a Rt that formed and the price is above the 89 and price has come down to the 21 and that's a Tc right???? Yeah but, there's a Rt that has formed and price is falling....then what? Do you get in on the 21 or did you take the Rt and your short??? Don't forget about the big picture on the 4hr charts. Here's and example...see the yellow triangles....Just because something is happening doesn't mean something else is 'supposed' to happen.
Attached Image
  • #8,011
  • Edited 12:57pm Nov 4, 2007 12:24pm | Edited 12:57pm
Ryan and Palmer, thank you very much. I do greatly appreciate your detailed and thought out responses to my questions.

I first wanted to address this...

Quote
What happens when the markets start ranging for two or three weeks? You might have to seek a different trading approach other than the 4hr method and be profitable at that as well.

What do you do if the marking is ranging and the 4 hour no longer works for you? Do you sit on the side lines and wait? Do you go to the 5 minute charts and scalp? If you go to the short charts, do you use a variation of Phillip's 5 minute trading strategy posted here?

I am not in a big hurry to trade as my only source of income, but these questions were burning inside of me. I am as cheap as they come, and to be honest, trading/making money is about the only reason I have to go on living. Not even to be successful, just the challenge. I know, I know, I will hear "you need more in your life", don't fret, it is a combination of the circumstances of where I live, where I work, and where I am from. This is my life. Not being successful is my life, just the challenge and the fun.

I figure in 3 years, I will have large enough retirement fund, enough money on the side to pay my bills month to month for a while, and enough to fund a trading account properly to make an income with risk being managed. Until then, I have a lot of work to do, and I am looking forward to it.

Thank you again!
  • #8,012
  • Nov 4, 2007 1:38pm Nov 4, 2007 1:38pm
Info
Attached File(s)
File Type: pdf Range Bound Trading.pdf   45 KB | 3,649 downloads
File Type: zip Range Trading 1.zip   827 KB | 3,316 downloads
  • #8,013
  • Nov 4, 2007 1:40pm Nov 4, 2007 1:40pm
Info
Attached File(s)
File Type: zip Range Trading 2.zip   811 KB | 3,370 downloads
  • #8,014
  • Nov 4, 2007 2:04pm Nov 4, 2007 2:04pm
Quoting unlv_tj
Ryan and Palmer, thank you very much. I do greatly appreciate your detailed and thought out responses to my questions.

I first wanted to address this...



What do you do if the marking is ranging and the 4 hour no longer works for you? Do you sit on the side lines and wait?
Absolutely. Patience with the 4hr method is critical. You'll see when the 8/21/89 are withing a few pips of each other it's hard to get a feel for what is going on. I wait for a breakout, let the market find direction, then prepare for a trade. This will happen and it can take a week to get out of this range.

Do you go to the 5 minute charts and scalp? If you go to the short charts, do you use a variation of Phillip's 5 minute trading strategy posted here?
Yes. If I have the time to watch a 5 min chart I will. But, even on the 5min chart I force myself to be patient as well. This can take a few hours before I see what I'm looking for. Even then, I'm only looking for 7,8..pips or so.

I am not in a big hurry to trade as my only source of income, but these questions were burning inside of me.
Me too. But, over the years I've realized how difficult trading full time can become. Especially if you do not have a method set in stone, that works. Right now I am my only source of income. Until Jessica Biel comes knocking on my door.....

I am as cheap as they come, and to be honest, trading/making money is about the only reason I have to go on living. Not even to be successful, just the challenge. I know, I know, I will hear "you need more in your life", don't fret, it is a combination of the circumstances of where I live, where I work, and where I am from. This is my life. Not being successful is my life, just the challenge and the fun.
Again, you MUST be successful. Not month by month, but week after week. I'm just thinking out loud on that one. But, think about it. If you lose money two, three weeks in a row...how do you survive?

I figure in 3 years, I will have large enough retirement fund, enough money on the side to pay my bills month to month for a while, and enough to fund a trading account properly to make an income with risk being managed. Until then, I have a lot of work to do, and I am looking forward to it.
I know what your saying here. I just still want to be 'young enough' to still be active, chase hotties (not saying I will catch any of them), and not have to use any of my current retirement fund to live on. My goal is to make as much per year as I do now (including benefits = insurance, retirement, etc.). If I can do that/this for a few years, then I will consider not working for the man any more.


Thank you again!
Stick around, you drive and motivation are welcome!
  • #8,015
  • Nov 4, 2007 2:20pm Nov 4, 2007 2:20pm
Thanks for the .mp3 Phillip. Great stuff as usual!!!
  • #8,016
  • Nov 4, 2007 2:41pm Nov 4, 2007 2:41pm
Quoting Palmer
Thanks for the .mp3 Phillip. Great stuff as usual!!!
Hello Phillip, I do really second the previous post of Palmer, absolutely great MP3 that you have done on range trading and it certainely help a lot about how to position oneself for range trading when looking at how the price moves in relation to the trendlines and moving averages.

Thank a lot

Sincerely

Shreem
  • #8,017
  • Nov 4, 2007 4:20pm Nov 4, 2007 4:20pm
Hi all,
Another new comer to this system. Been working my way through the thread (pg 100 at mo) and keeping up to date with the latest stuff as well. I've been looking around for months for a system that works for me (and that makes sense and is logical) and this is the one! Looking forward to more postings and being a part of it all - thanks to everyone for the huge amount of work thats gone into it. Phillip, all your lessons, mp3s etc etc etc have been a huge help and much appreciated.

Cheers,
Ben
  • #8,018
  • Nov 4, 2007 4:30pm Nov 4, 2007 4:30pm
Quoting BenStevo
Hi all,
Another new comer to this system. Been working my way through the thread (pg 100 at mo) and keeping up to date with the latest stuff as well. I've been looking around for months for a system that works for me (and that makes sense and is logical) and this is the one! Looking forward to more postings and being a part of it all - thanks to everyone for the huge amount of work thats gone into it. Phillip, all your lessons, mp3s etc etc etc have been a huge help and much appreciated.

Cheers,
Ben
Welcome to the thread. It seems like a lot of info, but the great thing about the method is that it's the same from day 1. No magical custom indicators or rule bending. Take your time with it all, there's patience for the markets and patience with learning as well.....
  • #8,019
  • Nov 4, 2007 5:13pm Nov 4, 2007 5:13pm
.
Attached File(s)
File Type: doc RangeTrading_1_and_2.doc   31 KB | 1,801 downloads
  • #8,020
  • Nov 4, 2007 5:13pm Nov 4, 2007 5:13pm
Hi Philip,

thanks for another great mp3. I have a question about one setup at the PDF. One bar after signal number one we got a TC to the downside. Doesn't this fit to the rules also? The price went down under the 21EMA again, retraced back to it and gave the signal. For me a good chance that the previous downtrend may continoue. How do you see it? Thanks.

Regards
Janson
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