"Trade the slope" journal

Great quote Baz. Thanks.

Hello Naijafx,
When you say that "we should ensure that the Slope changes from 0 to 1 or 1 to 0"; where do you see the 0 & 1? Also, are you reffering to daily time frame only? Thanks for your answer and the contribution to this thread.

Regards

hi Pete
For ur info the prices have now been met at the 200ema on the 4hr chart on the Canadian and is at the 50% fibo level from the DEC LOWS
As for me i didnt get the slope turn on the Daily Chart,will now wait for a fibo retracement before taking the short
The 200ema has acted as a ressistance and then a support from JAN 2008.
Anyway a good call!!
All the best and lots of pips to you
regards
baz

Thanks Baz.

Pete

Pluto, thanks for this question.... I'd like to say big thanks to pete for simplifying this method, i have been doing well with it as it is without even tweaking it. More kudos to him for sharing publicly the setting which o think it is the brain of this method.

I don't want to cause any confusion here but will answer your question the best way i can.

The slope is +ve, when we are in uptrend and curve pointing up
-ve when we are in downward trend and slope line curve pointing down
Flat when the slope is in a straight line which denotes a ranging market

I am presently doing a demo the way ema was trading this method by going in when the slope has changed(from +ve to -ve and vice versa)... am of the opinion we would stay in the trend as long as the sl is not hit early and ride on with it until the slope chages, when it does, we reverse our order, by so doing, we will be in trade with that currency pair.

I believe this method will reduce the streak of losses we have been experiencing but getting the first trade might take a while, as i haven't gotten any since i have been monitory the currecies but once one is gotte, might probably stay in the trend for so long.

Hope i made some sense here

PTOURNIS.....

Your doing a great job .... I think your blog is a good idea and reducing redundancy, all questions and such can be left here at the forum so your blog doesn't get cluttered, as to your new SL method, I'm not quite sure I follow you, could you elaborate a bit more here.......

JohnDoe,

Bascially I move my SL 50 pips for every 50 pip move, but still giving a 100 pips of breathing room.

Pete

New Post on the blog

Long Eur/Chf at 1.6130

OK.... Thank you.

PTOURNIS,
Thanks for your sharing. Can you please tell which dealer you are using to get your signals? I am using FXDD and your slope settings from your blog.
I get different signals and would like to get the same as you to follow along.
Thanks in advance!

Drayco,

I use Interbankfx

Pete

Hi Guys
Hope u picked up pips this week,but what a roller coaster,and dont feel bad even if u lost any cash,compared to the french dealer who lost some 3.2 Billion dollars,we are doing OK i guess!!
Man i wish i had 3.2 billion to lose in the first place !!
Take care and have great weekend
baz

Very funny! have a wonderful resting time

Have a good weekend. I am done too.

Unrealized Gains (Losses)

Eur/Gbp +15
Usd/Cad +163
Gbp/Usd +104
Eur/Chf -32

FRIDAY, JANUARY 25, 2008
I was watching 'Fast Money' last night. They were discussing the trader in Paris who lost $7 billion euros for the bank of Soc Gen. Ok, how many of you think this is a true story? In the sense, this 30 something is able to mastermind one of the largest trading losses in history all by himself. He was able to circumvent all the IT systems, supervisor approvals, the rest of market, all the regulators without anyone else finding out. This is what I think. Soc Gen had $7 billion in write offs it did not want to go public with. So find a scapegoat, promise him something down the road and Bam---rouge trader bankrupts bank. All the top dog get away to screw up for another day. Did this episode percipitate the slide Monday? Was Soc Gen unwinding position under the radar then came public later. What do you think? Post a comment and let us know.


Interesting angle and certainly with in the scope of what these guys are capable of.......

also I received my copy of trading in the zone today, very good read, thanks for the recommendation.

JohnDoe,

I am glad to see you are furthering your education.

Pete

Dear Thread,

Giving back too many pips appears to be the common experience at this point while entries seem robust. Hence, the need for better exits. Pete, can you explain what you're dong? What my brother and I have decided to try is Turtle methodology. Traditionally, the Turtles traded two breakout systems: a 20 and a 50 day BO. Their stops, respectively, for each system were a new 10 or 20 day high/low. So, you got in on the 20 and out on the 10; or, in on the 50 and out on the 20. That would mean, parallelly, if you use an 80 Hull to get in you'd use as 40 Hull to get out. Alternatively, I was once visiting a hedge fund manager in London who optimized his technical indicators expecting the optimization to work going forwards 20% of the optimization period. So if he optimized for the last month, say, then he could expect those parameter settings to work for approximately 1 more week before they'd have to be optimized again. Thirdly, another idea, is that the fundamental relationships between all these currency pairs do not change that much at all during the Slope system's trading horizons. That being said, each currency in terms of its ultimate amount of trendedness is limited to that fundamental reality given the sytem's normal trading time horizon. Put a different way, using the analogy of a rubber band, there is only so much elasticity the pairs will exhibit in terms of trending before rebounding to their normal relatedness. The trick then becomes to somehow know/guess/figure out the degree of elasticity of each pair and understand when you're likely to have maxed out what you'll make on any particular trade. When things looked rosiest for me last week (+1715 pips) was in fact the point of maximum elasticity before all the pairs bounced back to their normal relationships. How do determine this elastic point? Perhaps, to keep it simple, by varying Hull MA parameter settings from entries to exits, as mentioned above. Perhaps by using what is a normal weekly range for each pair (say, using a 200 ATR on a weekly chart to get a good average you'd be shooting for) you'd understand when you'd gotten pretty much the most you could expect and then playing defense---moving the stop loss tighter, etc. At any rate, some thoughts for discussion. Looking forward to replies.

My best to all,

Lenoxer

Hi, you might wanna consider exit described in pdf file