The System (Irony included)

Quoting leighsww

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In fact, I'm sure this has been other people's dilemma, too ... but when I had let's say a 25ema, 50ema and 200ema on my charts on multiple timeframes (because I do subscribe to the notion that you should be looking at various timeframes for confirmation of the trend, etc.), it always had me anticipating/trying to guess which 25/50/200 ema on which timeframe was the price going to go to. A 25ema or 50ema on the higher timeframes is sure in a heck of a different place than on a 15m or 30m timeframe.

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Quoting feb2865

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I love your post leighs

keep the coming!!!!

peace

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Quoting alcastro

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Trader_V

I am confused with the US/JP chart that you posted.I can see the logic behind the way in which you are managing your trade but I cannot see why did you enter that trade in the first place. According to your method, you will only enter a trade after the fractal point has been broken (the higher-high or the lower-low). I do not see that happening in your chart. Is this an entry based in a different method?

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Quoting alcastro

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Trader_V

I am confused with the US/JP chart that you posted.I can see the logic behind the way in which you are managing your trade but I cannot see why did you enter that trade in the first place. According to your method, you will only enter a trade after the fractal point has been broken (the higher-high or the lower-low). I do not see that happening in your chart. Is this an entry based in a different method?

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Quoting feb

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I managed to keep my head above the water since 1981 doing what I said above. I believe you can do it too.

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Quoting feb2865

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1. no setup = no trade. Stay focus, Don't get fooled by the noise of the market. You know what to do.

2. Once you have a trade with stops and everything stop starring at the charts. Go do something else. I mean, you already have a trade, The market is not going anywhere.

3.There will be a point in your trading career that you need to stop "listening" to others and start listening to yourself. ( Don't you think is about time now??)

4.If you get stopped out, deal with it. There's something called market risk, which is the reason why the holy grail doesn't exist. You chose this career. If you can't deal with a loss, Wal-Mart is always hiring.

5. Trading is not glamorous. It's simple but hard.
when you get bored to death, will be a sign that your trading is improving.

6. You must be attentive to risk and stop thinking about how much can you make. Don't worry you'll get paid.

7. If you're looking for excitement , go to a casino. Trading is hard, cold and lonely.

8. stop this "optimization process" Seems like a neverending story to me. I mean, there will be times where you're gonna get burned. The problem lies in you getting discouraged and start this " let me throw some big macs or stochs to "optimize" I assure you eventually that will lead you only to frustration.

9)Don't be like a monkey jumping from one tree to the other looking for something that "works most of the time". You know that's bullshit. You're lying to yourself. The truth is that you are not capable to follow your vision. At the end, your account is up in the wind. It's time to stop.

10) I've seen plenty of traders, practicing on demo for a hundred years. You're scared my friend don't deny it. Here in forex you can trade even for pennies. It's time to get your ass on the line and get real my friend.

11) The market is nasty. Take no prisoners. and won't care if you're good or not. Don't let it tell you what to do. You call the shots. If you feel that something is not right, insecure, sick, out of focus, etc. Don't trade. Don't force anything

12) Relax. You're trading off the daily chart. Take your time. Think. Observe. Be picky with your trades. Take the best setups.

13) It's good to have an attitude when you're about to trade. I was an asshole when I was on the floor. Now in front of the screen I still have an attitude. Remember , it's your money and your time and you're a professional . The time to be a newbie is over and will end on this thread.

14) If you miss the bus, that's ok. Don't be hard to yourself. As long as demand and supply rule the markets, I assure you there will be plenty of chance to get back on the bus.

15) The most important rule of all - help others. Pass the good Karma and it will comeback to you bigger Talking by experience.

You migth not agree with me and that's ok. But it took me many years to understand what I just stated above. I am practical. I trade for the money that's why I play smart. Risk is my #1 priority.

I managed to keep my head above the water since 1981 doing what I said above. I believe you can do it too.

Peace

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Quoting leighsww

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WoW, feb, awesome post! (that's worth a touchy-feely hug)



I believe we all can do it too!

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Quoting sovo1970

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Leigh... can I have a touchy huggggg tooooo...... Pllllllleaseeeee..... lol

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Quoting Mr Trend

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The fact that you are a woman puts you at a great advantage. Generally, speaking, women are better traders than men.

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Quoting leighsww

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Well, that's a shame that people are bothered to read things through. I try to be thorough in reading what people write, because by not doing so, I am not caring enough about what they have to say.

That's how I feel about it anyway.

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Quoting leighsww

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Yeah, but there were many times that I, as well as others, got to the point regarding where to get in on the 3rd candle of the V-Formation and you STILL didn't get it, lol :

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Quoting leighsww

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I have found that nobody is insignificant. Even the least expected person may prove to add value to your life ... Hey, I still luvs you, even if you can be a silly, silly man sometimes, lol, but I don't know if I can honestly say that I have as much respect for you as I could, because of your lack of humility ... The "Needing to be right" or more importantly, "needing to make others wrong" syndromes are not endearing qualities. Trust me, I was one of those in my younger days :, and it took something painful to make me look at myself and how I affected the lives of the people around me ... Practice humility, my friend ... it can do wonders for the respect you gain and embracing wonderful relationships with people in your life! http://leighswishingwell.com/lp/emotes/hug.gif

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Quoting leighsww

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Hey, but even if I might not have the kind of respect for you as I have for feb...

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Quoting leighsww

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That's interesting. Were you trying to be a standup comic that you know these things? :

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Quoting leighsww

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That's an excuse if you think that :.

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Quoting leighsww

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(but I also feel that you can learn a few things still, from others as well).

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Quoting Mr Trend

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I would totally agree... I'm much the same way. I don't know why you are taking this the wrong way. All I'm saying is that there is research that concludes this. That's all... it's something I have to work on as well, because I can write a book.

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Quoting Mr Trend

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Sorry if I come off that way. It wasn't my attention.

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Quoting Mr Trend

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Yes I do actually. And I think I'm gonna write some material on Internet communication and how people take what you say the wrong way.

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Quoting Mr Trend

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The fact of the matter, leigh, is that you can talk to a lot of people that know me personally, and I'm actually a relatively humble person and a darn nice guy. The fact is that you just can't see/read that on a forum.

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Quoting Mr Trend

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I don't sugarcoat things. If you're the kind of person that needs that, then that's on you, not me.

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Quoting leighsww

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They aren't S/R levels, my chart is depicting Fractals. What made you think they were S/R levels?

Ok my mistake. I just never thought you would use a lagging indicator to trade price action.

LOL, I know this thread is long, but if you're not reading it from the beginning or reading posts carefully and thoroughly, then you're probably missing a lot of info

Yeah i have read thru the thread but there are one missing part. And that is the issue of risk/reward. Personally i dont agree with placing stop losses under/above daily highs/lows, because in the end you are putting stop loss say eg. 200 pips away in order to gain 200 pips. That is suicidal on the long run for two reasons.

1.) There is a point long before the market reaches your stop loss on daily bar that you know you are in wrong trade and that the market has turned against you. So better to exit there than to leave stop loss to be hit on dialy bar.

2.) Unless you can't have a 1:3 risk/reward trading this approach then you will at best break even on the long run if not loose money. If you cant have 1:3 risk/reward then you need to place your stop loss somewhere else.


You might want to read this post regarding what my chart is depicting ( linked to the Fractal info on that post ) --> http://www.forexfactory.com/showthre...25#post1711325

Thx i did

I will be answering your other questions in another post, but I wanted you to read that first. Also, because my next post is going to be long, lol, so I didn't want to have it all be on one post, since I think that is why people might not be reading my posts (or it's maybe because it's just not interesting enough, haha .

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Quoting leighsww

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You are right that the market reacts to S/R levels. It's a "which came first, chicken or egg" syndrome, lol, cuz I believe that the market reacts moreso to it, because everybody's been told that the market reacts to it, so in essence, that fact causes the market reaction to it :

Here is my take on pivot points and the associated support and resistance levels. It is one of the only "indicators" that have stood the test of the time since computers were introduced to trading. Long before computer floor traders used PP and most still do. So there must be value to it. And there is if you look at the charts

I was using them previously myself. My charts have a built in Pivot Calculator that draws the pivot line and S/R levels automatically for me. I had it permanently on my various timeframes using the appropriate one for each timeframe.

They are certainly tools you can use, but to me, after studying up on this PA stuff, I really feel I have all the info I need to make a decision. Also, again, I'm treating this as a mechanical method where I enter when the V-Formation presents itself. The only place I will use discretion is on the 4hr to see if I can get a discount on the price.

I have been trading for 8 months, and quite frankly, I haven't been totally bad at. Actually if you read my Post #251 and looked at my statistics, I actually had 3 of the 5 months end with profit rather than loss (not good profit, lol, but profit rather than loss, nonetheless), but the commissions reduced my profitability quite a bit.

Switch to a broker that doesnt ask commissions or do my 1:3 risk/reward ratio

Throughout my 8 months, I was using EMAs and Pivots/S/L (I was using Fractals, but the other indicators took my attention)

I am not fan of any lagging indicator and EMA are one of the biggest culprits

After reading this thread, however, and learning from feb and others here, it hit me almost like a revelation ... the indicators and such were really taking my focus away (distracting me) from just reading the PA which really give enough info on the situation.

Yes Feb has done well

In fact, I'm sure this has been other people's dilemma, too ... but when I had let's say a 25ema, 50ema and 200ema on my charts on multiple timeframes (because I do subscribe to the notion that you should be looking at various timeframes for confirmation of the trend, etc.), it always had me anticipating/trying to guess which 25/50/200 ema on which timeframe was the price going to go to. A 25ema or 50ema on the higher timeframes is sure in a heck of a different place than on a 15m or 30m timeframe.

Yip perfect way to put yourself in check mate

For me, those just became more of an obstruction than anything else.

The more I strictly go with a naked chart and only the Fractals, the more I have come to realize just how distracting on both my eyes and my decisions, those other indicators were.

The price never lies

The thing I did like about the Pivots/S/R levels, was where to put my SL. I used to use that mainly for trying to get in as close to one of those areas and not in the middle of it, for a better, safer SL positioning.

I totally agree

However, I won't need that anymore, because my SL, with this method, is at the bottom/top of the previous Daily's candle.

Oops big mistake. Before you take any trade always ask yourself the following question: "How much pips can i make on this trade?" If you can't make more pips on your trade than what your stop loss is, then DO NOT take the trade. You would agree it would be silly to go for 50 pips profit when you might potentially loose 200 pips due to your stop loss being put 200 pips away under daily bar? Ok so how do i make that desicion? I know that in most cases the market goes between pivot point and support/resistance level. So if the market just broke up thru the pivot point and the R1 is 200 pips away then i would go for that trade because i will risk putting my stop loss 50 pips under pivot point and my profit target at R1. Now that gives me a 1:4 risk/reward. And that is an EXCELLENT trade oppertunity. PP gives me an idea as to how many pips i can make on a trade.

So, I honestly feel, that I do not need any indicators or pivot points, fibs, etc. because I can get all the info I need from just PA and Fractals. I just wait for the V-Formation criteria, watch my Fractal formations, and I'm good to go.

Anyway, we shall see. I'm only just now commencing this laboratory testing, lol, so as the months roll on, my quantified results will determined if it's improved my consistency in profitability.

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Quoting iandekoker

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If however you need better place to put stop losses then i suggest you use the weekly support and resistance levels. That will save you a lot of pips and also give you a better risk/reward. Ok that was by contribution to a thread that i think has lots of potential. At least your on the right track with trading price action.

For me there are only 3 things that i use to evaluate any approach on FF:
1) Proper money management (but that is not the scope of this thread)
2) 1:3 risk/reward ratio (also not yet the scope of this thread)
3) Winning percentage of 33.3%. An approach that gives you 3 winning trades out of 10 trades. But those 3 winning trades must be 1:3 risk/reward (meaning that for every 7 loosing trades you only need 3 winners to make money) then you WILL make money in forex on consistant basis.

If an approach does not have those 3 components then it will die a slow death.

So if anyone can incorporate that in the already mentioned excellent posts by other traders on this thread, then you will have a good approach here and something to fee you for the rest of your live

But overall and excellent thread

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Quoting Ian

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Well keep us updated on your results. I am sure there might be something to work with

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