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

  • #121
  • Nov 27, 2007 5:43am Nov 27, 2007 5:43am
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.
yeah...we know you're spamming.....but no matter........if the performance is real and it's not a scam.......then we may have to thank you instead....

anymore info on this fund like how long has the fund been operating ?
  • #122
  • Nov 27, 2007 7:54pm Nov 27, 2007 7:54pm
I trust my indicators and I put my stops so I dont lose money. I walk away and come back and look 2 or 3 hours after the different market opens. Once in profit move your stops to capture as much as possible. I do not try to capture the whole move I only want to make a profit. Yes I use a warning indicator. I paid a guy to make me a Sto indicator that would beep whenever all the lines were above 90 or below 0. I can set it for any combination of time periods I want. So right now my indicator is set for 1M 5M 15M 30M. When all four are above 90 or below 10 it beeps and I can look at the trade. I can also change the time periods and found it one of the most valuable indicators a person can have. I then wait for the 1 to cross the 5 and I am in.
  • #123
  • Nov 27, 2007 9:36pm Nov 27, 2007 9:36pm
COT stands for commitment of traders. These are the really big boys who must report to the govt. agencies what their trades are. This is done so that noone can manipulate the market or monopolize the market. They deal in millions or maybe even billions of dollars and work for the big banks, etc. The government or agency puts out a report once a week of where most of them are trading. Most of the time you have to pay to get this information but some places, like PFXglobal.com will post it on their website. You can look up each currency pair there. The theory is if they are long on a currency, stock, commodity, etc. then you should go long. They have so much money tied into the market that they cant afford not to know what they are doing. So its a follow the leader approach to trading. I keep an eye on them to get a general direction on the market but I have found out it is not a 100% indicator of the market either. They are long term traders who buy or sell and then stay put for weeks or months at a time.
  • #124
  • Nov 27, 2007 11:20pm Nov 27, 2007 11:20pm
nanningbob....

Thanks for posting good trading suggestions and observations!
  • #125
  • Nov 28, 2007 1:55pm Nov 28, 2007 1:55pm
bob,
are your MA simple or exponantial.?
THANKS
  • #126
  • Nov 28, 2007 3:31pm Nov 28, 2007 3:31pm
Plz I would like to know how best to trade large timeframes: like: 1h, 4h and daily...........

Plz give me stoploss and target range 4 these timeframes


I am tired of watching my trades always

Is it also very safe to trade with them!!!!!!!!!!!!!!!!!!!!!!!!!!

Thanks
Everything is bare Making the best out of pips
  • #127
  • Nov 28, 2007 8:53pm Nov 28, 2007 8:53pm
my MA are linear weighted and the 5MA is shifted one. To the other post I dont have a formula of stops, etc. The key is entering when the 1 crosses the 5 on the 4h or daily and then going to the 1M or 5M and entering on the cross there. If you enter properly you dont have the problem with back ups and stop losses. Once price goes in your direction set your stop at break even and go with the trade. You dont enter until the 1 crosses the 5 in the direction you want to go. You can get out with 15-30 pip profits in a short period of time or you can ride the trend for hours or days depending on the trader you are. When the 1 MA crosses back over the 5 or the Sto goes to overbought 0/100 you take your profit. That is the formula, it is not numbers or hard fast rules its reading the chart and indicator and getting in at the optimum price.
  • #128
  • Nov 29, 2007 12:51am Nov 29, 2007 12:51am
Quoting nanningbob
my MA are linear weighted and the 5MA is shifted one. To the other post I dont have a formula of stops, etc. The key is entering when the 1 crosses the 5 on the 4h or daily and then going to the 1M or 5M and entering on the cross there. If you enter properly you dont have the problem with back ups and stop losses. Once price goes in your direction set your stop at break even and go with the trade. You dont enter until the 1 crosses the 5 in the direction you want to go. You can get out with 15-30 pip profits in a short period of time or you can ride the trend for hours or days depending on the trader you are. When the 1 MA crosses back over the 5 or the Sto goes to overbought 0/100 you take your profit. That is the formula, it is not numbers or hard fast rules its reading the chart and indicator and getting in at the optimum price.

Great stuff, Bob!!

Question- When you're trading the 4H chart, do you wait for the candle to close after the cross, or do you look for an entry as soon as you see it cross?
Thanks
  • #129
  • Nov 29, 2007 6:39am Nov 29, 2007 6:39am
No I dont wait for the complete candle. Actually I usually enter once price crosses the 5MA on the 4H chart and I get the cross on the 1M and 5M chart. It gets me in sooner. If I wait until the candle finishes I may be 1-200 points above/below the 5MA and lose a lot of pips plus I am in danger of back lash. If you look at 4H candles, most of them are full candles, so once they begin moving in a certain direction they generally stay in that direction for the 4 hours. I also dont watch my trades all day but go to my computer every 4 hours and see how it is doing.

I am surprised by the attetion this simple little system is getting. I am trying to work on an EA that you can turn on and off when you want to trade. When you see a trade coming you turn on the sell EA or a buy EA and it will open the trade at the cross for you. I wish I knew how to write code that would allow the EA to trade only 1 time and quit. Most EAs dont work because they keep trading and that adds to your losses. Testing is taking up my time for now.

Bob
  • #130
  • Nov 29, 2007 8:07am Nov 29, 2007 8:07am
Quoting nanningbob
No I dont wait for the complete candle. Actually I usually enter once price crosses the 5MA on the 4H chart and I get the cross on the 1M and 5M chart. It gets me in sooner. If I wait until the candle finishes I may be 1-200 points above/below the 5MA and lose a lot of pips plus I am in danger of back lash. If you look at 4H candles, most of them are full candles, so once they begin moving in a certain direction they generally stay in that direction for the 4 hours. I also dont watch my trades all day but go to my computer every 4 hours and see how it is doing.

I am surprised by the attetion this simple little system is getting. I am trying to work on an EA that you can turn on and off when you want to trade. When you see a trade coming you turn on the sell EA or a buy EA and it will open the trade at the cross for you. I wish I knew how to write code that would allow the EA to trade only 1 time and quit. Most EAs dont work because they keep trading and that adds to your losses. Testing is taking up my time for now.

Bob
I wish you success on your EA.
I played with this last night and made about 50 pips.

You just wrote that you wait for a cross on the 1M AND the 5M.
I had one last night that had a suitable cross on the 1M (Stoch =100 before breaking downward). Stochastics never went overbought (=100) on the 5M.
Is it necessary to have both 1M and 5M entrances?
Thank you
  • #131
  • Nov 29, 2007 12:34pm Nov 29, 2007 12:34pm
Quoting nanningbob
my MA are linear weighted and the 5MA is shifted one. To the other post I dont have a formula of stops, etc. The key is entering when the 1 crosses the 5 on the 4h or daily and then going to the 1M or 5M and entering on the cross there. If you enter properly you dont have the problem with back ups and stop losses. Once price goes in your direction set your stop at break even and go with the trade. You dont enter until the 1 crosses the 5 in the direction you want to go. You can get out with 15-30 pip profits in a short period of time or you can ride the trend for hours or days depending on the trader you are. When the 1 MA crosses back over the 5 or the Sto goes to overbought 0/100 you take your profit. That is the formula, it is not numbers or hard fast rules its reading the chart and indicator and getting in at the optimum price.
Linear Weight MA 1, Median price
Linear Weight MA 5, Open
Stoch default 5,3,3 close/close, method Linear Weight

is that?

thanks
  • #132
  • Nov 29, 2007 12:37pm Nov 29, 2007 12:37pm
BB or others still playing with Bhale method?

anyone to write a EA to test it?
  • #133
  • Nov 29, 2007 4:36pm Nov 29, 2007 4:36pm
Quoting nanningbob
No I dont wait for the complete candle. Actually I usually enter once price crosses the 5MA on the 4H chart and I get the cross on the 1M and 5M chart. It gets me in sooner. If I wait until the candle finishes I may be 1-200 points above/below the 5MA and lose a lot of pips plus I am in danger of back lash. If you look at 4H candles, most of them are full candles, so once they begin moving in a certain direction they generally stay in that direction for the 4 hours. I also dont watch my trades all day but go to my computer every 4 hours and see how it is doing.

I am surprised by the attetion this simple little system is getting. I am trying to work on an EA that you can turn on and off when you want to trade. When you see a trade coming you turn on the sell EA or a buy EA and it will open the trade at the cross for you. I wish I knew how to write code that would allow the EA to trade only 1 time and quit. Most EAs dont work because they keep trading and that adds to your losses. Testing is taking up my time for now.

Bob
Hello Bob,

First of all, this is wonderful information and a very simple and effective method you're sharing here with us so thank you kindly for taking the time out of your schedule to answer questions and post your charts.

You had replied to Bill that when Price crosses the 5MA on the 4Hr chart that you look to enter on a 1M & 5M chart for best price entry. If we were trading a smaller time frame like 1Hr , 30M , or 15M charts would the same rule apply that we look to enter as soon as price crosses the 5MA or would whipsaw prohibit such entries on Time frames smaller than 4Hrs ?

Also Bob, when trading highly volatile pairs like Gbp/Jpy with higher spreads do you alter your method in any way to accomodate those larger spreads or just avoid 1Hr day trading and stick to 4Hr or Daily charts for these high spread Pairs ?

Thanks again Bob and sincere best wishes to you.....T-Wolf
  • #134
  • Nov 29, 2007 6:09pm Nov 29, 2007 6:09pm
one thing that i din't understand about nanningbob method is the use of the 1ma....

nanningbob, could you explain how you use it with the price?

tanks in advance
  • #135
  • Nov 29, 2007 6:41pm Nov 29, 2007 6:41pm
You had replied to Bill that when Price crosses the 5MA on the 4Hr chart that you look to enter on a 1M & 5M chart for best price entry. If we were trading a smaller time frame like 1Hr , 30M , or 15M charts would the same rule apply that we look to enter as soon as price crosses the 5MA or would whipsaw prohibit such entries on Time frames smaller than 4Hrs ?

Yes, I always use the 1M or 5M to enter. It really prevents backups many times by doing it that way. However, If I have a really strong trade I sometimes dont wait for the 1M If the 5M is overbought the 1M should not hold you back if it has already passed the overbought area. However, many times if I am patient I will pick up that extra 5-10 pips if I wait on the 1M. Remember the 5M= 5 1M bars and price can easily go to overbought on the 1M chart during the 5M time period. However, if price is moving I will jump on board.

Also Bob, when trading highly volatile pairs like Gbp/Jpy with higher spreads do you alter your method in any way to accomodate those larger spreads or just avoid 1Hr day trading and stick to 4Hr or Daily charts for these high spread Pairs ?

The best way to trade that works best with my stystem is to make sure the 4H and 1H are both going in the same direction. Sometimes I will put all 16 pairs on my screen and do the one that has the 1H and 4H agreement. So I make sure my sto's are going in the same direction on both then I can go to a lower chart to trade. Also if you trade multiple pairs you will see at times most of them line up into an overbought situation and a big news story is coming. Guess which way the news story is going? I will sometimes see all the JPY's or all the GBP are at 100 or 0 on my sto chart and a news story is coming. It is a beautiful thing when this happens.

I prefer the Eur/Jpy over the GBP/Jpy because of both the lesser spread and it is just a little less volotile, but it will still move 150-250 pips a day. Just make sure with the GBP you wait until the 1 and 5 cross or switch to a 3MA to 1MA cross. Because this pair trades more volatile and the spread is bigger you need a faster getting out trigger or you can rack up a big loss quickly but so are the rewards. Good luck.
  • #136
  • Edited Nov 30, 2007 10:24am Nov 29, 2007 6:50pm | Edited Nov 30, 2007 10:24am
Linear Weight MA 1, Median price
Linear Weight MA 5, Open (add shift 1)
Stoch default 5,3,3 close/close, method Linear Weight

is that?

thanks

Yes that is the basics, except add to the 5MA a shift of 1, depending on the pairs you trade and indicators you use. I can also use bollinger bands and pivot points to help if you know how to use those indicators. I try to keep it simple though. The purpose of this thread was to provide a simple system and that is it but I also use some other indicators at times to confirm not my entrances but my exits. I like using either resistance or support to put a take profit if I am not going to be around to watch the trade. So once I am in profit I set my stop loss so I dont take a loss and then put in the next support or resistance line (pivot point) as my take profit. Sometimes if I am going with COT Fundamentals I will put my profit 2 or 3 lines later.
  • #137
  • Edited 7:50pm Nov 29, 2007 7:48pm | Edited 7:50pm
Why use the 4H? studying charts I came to the conclusion that everything has a high and a low. 1M 5M 15M 30M 1H 4H all have highs and lows. On all charts make sure you put in the time period separator found in MT4, this a valuable learning tool. These are the conclusions I came to:

A 4H chart will show the high and low for the week.
A 1H chart will show the high and low for the day.
A 15M chart will show the high and low for the trading session.

You can then trade accordingly to your trading style. Remember the higher charts rule over the lower charts. Dont do a sell on the 15M chart if the 1H chart is showing a buy (bull) move. Dont go against the higher chart. Will only get you in trouble. Trade with the higher chart in the same direction.

I go to the pairs in which the 4H charts are in agreement with the 1H charts. I then will trade the best pair of the group for that day. Once I have made a profit. I quit. I found out if I keep trading I will lose my profit.
  • #138
  • Edited 9:13pm Nov 29, 2007 8:56pm | Edited 9:13pm
one thing that i din't understand about nanningbob method is the use of the 1ma....

nanningbob, could you explain how you use it with the price?


The 1MA is set at median price of the high and low, not open or close. I like it because it really is not a lagging indicator. It gives me what price is doing during that candle. I began using it because of problems with line crossing and uncrossing in EAs I was writing. Since it is an average of the high and low it doesnt keep moving up and down with price. It only moves if there is a new high or new low. I sometimes use price crossing the 5MA on the 4H chart because of the big ranges in price you can have during 4H candles but I always wait for the cross on the 1M 5M charts. I only do price though if I am backed up by the COT traders. In other words I am trading with them. When I dont I have been burned too many times when price ends up backlashing.

The whole thing with trading is trying to put the best odds you can in your corner. Once price has moved enough to cross a 5MA my philosophy is it will keep going in that direction at least for a while especially when you use overbought or oversold on a sto oscillator. Add to that of trading only in the same direction when the 1H and 4H agree and I feel I have made the best odds I can get for a trade. That is my basic philosophy in trading. The sto coming off overbought or oversold and the 1 crossing the 5 and dont trade against the higher chart. I think that puts enough odds in my favor to make consistent profitable trades. Add to that I try to enter at the best point on the 1M or 5M chart and dont tolerate the big loss. Take the 5 or 10 pip loss and try again.
  • #139
  • Nov 30, 2007 4:55am Nov 30, 2007 4:55am
thanks for all replies nanningbob.
  • #140
  • Nov 30, 2007 10:55am Nov 30, 2007 10:55am
I wish you success on your EA.
I played with this last night and made about 50 pips.

Hey that is good to hear!!

You just wrote that you wait for a cross on the 1M AND the 5M.
I had one last night that had a suitable cross on the 1M (Stoch =100 before breaking downward). Stochastics never went overbought (=100) on the 5M.
Is it necessary to have both 1M and 5M entrances?
Thank you

If the market is moving fast enough you can trade off the 1M chart. I have done that but follow the rule of not trading against a higher chart. So if the 5M chart is going down and the 1M hits overbought and then as it goes down the 1 crosses the 5, I dont see why you cant take that trade.
I also will trade the sto if i am scalping. The 5M sto is going up so I will take a 1M trade going up. It is really good if the 15M is also going up. So if the 5M and 15M 1MA has not crossed the 5MA but the sto on both have crossed and are going up. I find these excellent scalp trades. The best advice I ever got from an experienced trader was follow the higher charts and then trade on the lower charts in the same direction. When other guys are complaining companies are stop hunting their trades I see in many of their trades they are going against a higher chart and bingo, it hits the stop loss almost every time. Like I said in an earlier post, I line up 16 trading pairs and find which ones have the 4H and 1H agreement. Then go to the 1M or 5M and trade in the same direction. This really works and you can hit 60-70% of your trades doing this. I have had times I have hit 16 winning trades in a row. I have had weeks in which my win % is less than 50 and even gets close to 40% but if I keep my losses to small amounts I can still make a profit for the week. One 50 pip trade makes up five 10 pip losses but my % has never been that bad. I have always been able to trade above 40%
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