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Inside Bar Trading Technique

  • #61
  • Jan 22, 2008 4:00pm Jan 22, 2008 4:00pm
Quoting fxtradera
Hi Damon

I've been studying this and trading IBs for a while - I'll trade a b/out either side. I tend to look at 30 min charts and there's often good opportunities on the EJ and GJ. James, as I understand, focuses on the GU 15 min - at least it seemed that way a month ago.

IBs can work on any time frame from 5 min up. I wouldn't consider less than 15, and the GU 15 can chop you at times.

Would be interested to hear of your views and if you focus on particular currencies and time frames and if you only trade one side of a b/out or use any indicators to filter?

Also, while there may be indicators over at TSD, would it be useful to identify and post a good one on this thread that could be used?

I'm answering some of my own questions here as I went back to the very first post where you discussed trading the dailies and specific pairs. So those questions are covered.

As I mentioned, my own experience is there's some really good opportunities on a shorter tf down to 30 mins. GJ, EJ, GU are my favourites as they see more price action. If you do trade less than a daily tf , I was interested in your own filters and experience and whether you'll only take a trade on one side of the bar or either.

I'm still looking for a good IB indicator with alert for MT4 that anyone is using, and I'll take a look over at TSD later myself as well.
  • #62
  • Jan 22, 2008 9:48pm Jan 22, 2008 9:48pm
Quoting fxtradera
Hi Damon

I've been studying this and trading IBs for a while - I'll trade a b/out either side. I tend to look at 30 min charts and there's often good opportunities on the EJ and GJ. James, as I understand, focuses on the GU 15 min - at least it seemed that way a month ago.

IBs can work on any time frame from 5 min up. I wouldn't consider less than 15, and the GU 15 can chop you at times.

Would be interested to hear of your views and if you focus on particular currencies and time frames and if you only trade one side of a b/out or use any indicators to filter?

Also, while there may be indicators over at TSD, would it be useful to identify and post a good one on this thread that could be used?
Hello fxtradea,

I can only imagine that the IB will work on just about any time frame. I can only check my charts once per day, so I only use the dailies. I usually play a break out on both sides incase of a stop and reverse. Sometimes price will stop and reverse a two or three times for small losses before the break out.

But I have learned the power of adding on additional trades one the trend has been defined and a break out doea occur. This allows me to add on other positions as the price continues to moves in my direction. I think that is the most valuable thing anyone can do as a swing trader.

If you have some doog indictors you would like to share with us, I would be honored to see them. I like to use Bill Williams things for my subsequent orders, but would be glad to see anything you would like to share with us.

Cheers,

Damon
"Keep your eyes on the helpers" - Mr. Rogers
  • #63
  • Jan 22, 2008 9:55pm Jan 22, 2008 9:55pm
Wow...today was a very hectic day. When I woke up this morning, I saw GJ jump over 200 pips in five miniutes. When everything retraced back down again, I closed every open order I had out there. I wanted no part of this madness.

I even wnet back years on the EU chart and nowhere that I could see at a quick glance did it ever move over 300 pips in one day.

So now I am on a clean slate and I have revised the excell file so it may be a little easier to follow along as to what I am doing. It was a nice run and unfortunately many of my positions closed a break even, I did make some very nice profit.

With that said, I hope you enjoy following along and if you have any questions along the way, I will surely try to answer them.

Cheers and enjoy,

Damon

Attached File(s)
File Type: xls TR_01-22-08.xls   37 KB | 501 downloads
"Keep your eyes on the helpers" - Mr. Rogers
  • #64
  • Jan 23, 2008 10:29pm Jan 23, 2008 10:29pm
I don't know if any one is following along or not, but I wanted to upload my file that has my latest open and pending orders.

Cheers,

Damon

Attached File(s)
File Type: xls TR_01-24-08.xls   38 KB | 729 downloads
"Keep your eyes on the helpers" - Mr. Rogers
  • #65
  • Jan 24, 2008 5:22am Jan 24, 2008 5:22am
Quoting damonl
I don't know if any one is following along or not, but I wanted to upload my file that has my latest open and pending orders.

Cheers,

Damon

Attachment

Hi Damon

I haven't had chance to look for indicators yet but I'd be interested to see and hear more, including your latest orders.

Thanks for taking the time. I'm still here...
  • #66
  • Jan 28, 2008 7:26am Jan 28, 2008 7:26am
hi damonl, have followed you from oz site and looking on with great interest. be assured this i am a keen follower of your style so please keep it up. i am pretty new at this so im just getting my head around what your saying. will post if i get anything worthwhile to add.
  • #67
  • Jan 28, 2008 7:01pm Jan 28, 2008 7:01pm
Hi Damon,

IB on GBPCHF. But possibility of a double top . What are ur thoughts ?
  • #68
  • Jan 29, 2008 10:09pm Jan 29, 2008 10:09pm
hi damonl, have just put on my first pendings. hope i am reading this correctly. usd/chf buy stop 1.0970 sell stop 1.0865

eur/gbp b/s .7458 s/stop 7385

e/u b/s 1.4805 s/s 1.4655

g/j b/s 214.03 s/s 211.11.

think this is correct. thanks for the thread and keep posting my friend please. need to get some more ideas on adding to the trade as it evolves. ill experiment and comment when i know what im doing. steve
  • #69
  • Jan 30, 2008 9:21am Jan 30, 2008 9:21am
Quoting cheelu
Hi Damon,

IB on GBPCHF. But possibility of a double top . What are ur thoughts ?
Hey Cheelu,

I wouldn't pay too much attention to the double top. I have found chart formations don't hold as true to the Forex Market as they do in trading stocks, commodities, etc.

More important about the IB you are referring to are these:

1. Both the high and the low are inside the alligators mouth and because things tend to bounce around for a while when in the alligators mouth, it may be best to hold off on this trade. It is hard to say. In this case as you will have seen, the price did bounce around.

2. You can see that the alligators mouth is closing after going on quite the hunting spree. There is rarely good opportunities to take profit when his mouth is closing and he is about to go to sleep. Better to wait until the mouth is completely closed and look for other trades outside the alligators mouth that would put you in position to be ready for profit when the alligator wakes up again.

Being that both these two things are happening at the same time, it would have been best to stay out of this trade, especially with G/CHF because of large movements that can happen quickly.

Cheers,

Damon
"Keep your eyes on the helpers" - Mr. Rogers
  • #70
  • Jan 30, 2008 9:22am Jan 30, 2008 9:22am
Quoting brisvegus
hi damonl, have followed you from oz site and looking on with great interest. be assured this i am a keen follower of your style so please keep it up. i am pretty new at this so im just getting my head around what your saying. will post if i get anything worthwhile to add.
brisvegus,

I am still here. I work all week and by the time I go over my charts at the end of the day I am tired and just want to hang out with my wife.

I will try to post mor regularly however and will also give some explanations of some of the trades that I will take.

Damon
"Keep your eyes on the helpers" - Mr. Rogers
  • #71
  • Jan 30, 2008 9:38am Jan 30, 2008 9:38am
Quoting brisvegus
hi damonl, have just put on my first pendings. hope i am reading this correctly. usd/chf buy stop 1.0970 sell stop 1.0865

eur/gbp b/s .7458 s/stop 7385

e/u b/s 1.4805 s/s 1.4655

g/j b/s 214.03 s/s 211.11.

think this is correct. thanks for the thread and keep posting my friend please. need to get some more ideas on adding to the trade as it evolves. ill experiment and comment when i know what im doing. steve
Hmmmm....let's take a look.

U/CHF - There were actually two inside bars in a row and it appears that you are using the previous inside bar. You should always use the most recent inside bar.

EU - Once again, I think you are using the highs and lows from the bar that is prior to the inside bar. This may work, however I think it is better to use the highs and lows from the inside bar itself.

GJ - The last inside bar that I see was back on the 7th of January, so I am not sure if you see an IB that I am missing.

EG - I do not trade this pair.

Hope this has been helpful.

Damon
"Keep your eyes on the helpers" - Mr. Rogers
  • #72
  • Edited 10:29am Jan 30, 2008 10:19am | Edited 10:29am
Hello....

I apoligize for not being around much. I work all day and then by the time I am done checking my charts at the end of th eday I am tired. I will try to be more diligent in uploading my daily open and pending orders.

You will find last nights calulations attached to this thread.

***PLEASE NOTE THAT THIS COMPLETE TRADING SYSTEM IS NOT FOR THE FAINT OF HEART***

Here I would like to discuss my version of how I trade using the OzFx system. I did not change this because I thought his was not working, but because I needed to adapt it to my Forex Strategy.

I am not going to get into a whole lot because you can visit his thread to get how things work, I will just go over my differences. I am only trading this on the D1 chart.

1. I open up 2 orders. One for 2 lots and the 2nd for 1 lot. I use a 50 pip S/L for both these orders and no set T/P. If after the close of the first day I am in profit, I close the 2 lot position and place a B/E + 10 S/L on the 2nd order. You can choose to keep this position open longer if you wish. I will then let the 1 lot order run until I get a confirmed reversal entry at which time I will close it. I will most likely also close this order if a reversal divergent bar is triggered even if no OzFx trade has occured.

2. I use same stochastic and AC indicators with nothing else except the alligator which I use as a filter if I feel like it or if something just doesn't look right. Please don't ask me to go into the alligator with you because on the first page of this thread I give you two books that you can read that will tell you all about it's implications on the market.

3. Short signal A....

Wait for the stochastic %K to moved from above 80 to turing down and touching or falling below 80 at the close of any bar. Then wait for the AC to be red at the close of the current day. Then place two sell stop orders 1 pip below the low of the set-up day bar. Leave this as a standing order until triggered or until the %K has moved back above 80 without triggereing the order. If by chance you get stopped out, you could also reset this order at the following day.

4. Short signal B....

If stochastic does not go above 80, wait for %K to cross from above the 0 line of the AC to below the 0 line of the AC and then wait for AC to close red and then follow the entry instructions described in part A above.

5. Long Signal A.....

Wait for the stocastic %K to move from below 20 to turning up and touching 20 or raising above 20 at the close of any bar. Then wait for AC to close green. Then place two buy stop orders 1 pip + spread above the high point of the set-up day bar. Leave this as a standing order until it is triggered or until the %K has crossed below 20 without tirggering the order. If by chance you get stopped out you can also reset this order the following day.

6. Long Signal B....

If %K does not go below 20, wiat for %K to cross from below the 0 level of the AC to above the 0 level of the AC at the close and then wait for the AC to close green. When both these things happen, place orders as in Long Signal A above.

All signals are generated at the close of any day and if you miss the first signal use your own judgement as to enter the market late or not.

I hope this helps you understand how I use the OzFx system to place trades for myself. If you have any questions I will be happy to answer them. I will also try to post soon another method in detail how I would enter and exit the market.

In the meantime, happy trading and enjoy my last nights calculations for those who are following along.

Cheers, and thanks for all your support,

Damon

Attached File(s)
File Type: xls TR_01-30-08.xls   61 KB | 416 downloads
"Keep your eyes on the helpers" - Mr. Rogers
  • #73
  • Jan 30, 2008 8:49pm Jan 30, 2008 8:49pm
Hello.

Attached is a file that shows my open and pending trades for today. I hope you find it useful.

I made a mistake today. One of my rules is to always close out all my postions if at any time I find my profit in open trades to be over 3K. Well....that happened today and I thought I would just let it ride. Of course the market retreated substantially and so I am not up nearly 3K any more. Actually I could eaisily close all trades at 1K in profit.

The market may still come back or it may not, hopefully it will so I can follow my rules next time. Since I allow myself many points of entry to try and capitalize on the breakouts and then compound my posititions as the break out continues it is very easy with this system to set a profit target and close out all your trades because re-entry is never far away and profit can build very quickly.

I hope that you are enjoying this thread and have a great day of trading. I will get back here as soon as I can.

Cheers,

Damon

Attached File(s)
File Type: xls TR_01-31-08.xls   59 KB | 508 downloads
"Keep your eyes on the helpers" - Mr. Rogers
  • #74
  • Jan 30, 2008 9:10pm Jan 30, 2008 9:10pm
hi damonl. thanks for the reply. it seems i may of had to many rum and cokes whilst spotting these inside bars. ill go back and take another look. incidently, all the trades are currently in small profit. more arse than class. thanks again, steve
  • #75
  • Edited 5:48pm Feb 1, 2008 5:15pm | Edited 5:48pm
Quoting brisvegus
hi damonl. thanks for the reply. it seems i may of had to many rum and cokes whilst spotting these inside bars. ill go back and take another look. incidently, all the trades are currently in small profit. more arse than class. thanks again, steve
No problem brisvegus.....

Trading the way that I trade takes a few hours each night, but the rules are very easy to understand. And there are no gimmicks involved with the way that I trade. One thing is for certain...what I have realized is that trading in this manner which I am now trading is "Trading to Win".

I have recently been adjusting some of my MM strategies because at any one time, I can have up to 50 trades open all going in my direction. Trading like this is really quite new to me and very intimidating because as I realize that I am putting myself in the best postion to take profit, I am also in the worst position.

I hope that you continue to follow along. I have changed some areas of my spread sheet, and removed my profit in pips catoagory and my lots per trade catagory as I want people to make these decisions for themselves. I am also narrowing down my take profits and stop losses as well as lowering my lots per trade becasue of the sheer volume that I am in the market.

BTW...for all of you watching at home, how many of you caught the massive down movement of the GU today? There is no way hardly that you could have forseen that move, but becasue of my trading strategy I was able to catch over 1/2 of that move with multiple entry points.

Please...I don't mean to brag, but to show you the power of this complete system, that GU down move today....with my mulitiple entries, I am over 1000 pips in profit as of the close of today. This is really something.

If you can show me a way to enter the market sooner than this method. I'd love to see it.

Stay in touch okay...I love to hear from you.

Cheers,

Damon
"Keep your eyes on the helpers" - Mr. Rogers
  • #76
  • Feb 1, 2008 5:27pm Feb 1, 2008 5:27pm
I have received some PM asking for me to go over with you my strategies as the spread sheet is very unclear for the average reader.

First of all, I will do that but if you think it is my first priority you are mistaken. I have already revealed 2 of the techniques to you and will reveal more to you when I want to.

Anyone who wants the easy road here might as well just leave now. I spent that last two years of my life devouring every piece of litereature that I could get my hands on. Spending every last penny I had to learn how others traded.

What I do is a feel for the market that I hope that you all get. So...in time I will reveal almost everything to you about how I am trading. I may fail miserably, but one thing is for certain.....I am in postion to win big.

Cya around and stay tuned. I'll be around as well and as always, if you have any questions, I'll do my best to help out as I can.

Cheers and best wishes to all,

Damon
"Keep your eyes on the helpers" - Mr. Rogers
  • #77
  • Feb 6, 2008 4:09am Feb 6, 2008 4:09am
hi damonl. thanks for your informative previous posts. a question from a dumb aussie. a question from a previous post from me regarding placing some inside bar trades. if a 24 hour candle closes and the high/low is smaller than the previous days candle, therefore forming an inside bar. the pendings orders which are set, are they placed using the prices from the candle that has just closed or the larger one from the day before. if they are put on from candle that has just closed, that is where the confusion came from with an earlier post as i was using the candle from the day before. ie the larger one. hope this make sence. thanks damonl and keep posting buddy when u get time. steve- australia
  • #78
  • Feb 6, 2008 8:33am Feb 6, 2008 8:33am
go the crows
Quoting brisvegus
hi damonl. thanks for your informative previous posts. a question from a dumb aussie. a question from a previous post from me regarding placing some inside bar trades. if a 24 hour candle closes and the high/low is smaller than the previous days candle, therefore forming an inside bar. the pendings orders which are set, are they placed using the prices from the candle that has just closed or the larger one from the day before. if they are put on from candle that has just closed, that is where the confusion came from with an earlier post as i was using the candle from the day before. ie the larger one. hope this make sence. thanks damonl and keep posting buddy when u get time. steve- australia
  • #79
  • Feb 6, 2008 1:30pm Feb 6, 2008 1:30pm
Quoting brisvegus
hi damonl. thanks for your informative previous posts. a question from a dumb aussie. a question from a previous post from me regarding placing some inside bar trades. if a 24 hour candle closes and the high/low is smaller than the previous days candle, therefore forming an inside bar. the pendings orders which are set, are they placed using the prices from the candle that has just closed or the larger one from the day before. if they are put on from candle that has just closed, that is where the confusion came from with an earlier post as i was using the candle from the day before. ie the larger one. hope this make sence. thanks damonl and keep posting buddy when u get time. steve- australia
Hey brisvegus,

You would use the current inside bar highs/lows of the one that just closed. However, I think that you could make an argument for placing orders around all inside bars say within the last 10 days or so. This would give you multiple entries as the price broke away. I am going to do some more looking into this, but I am seeing many times where this is a very good idea. Especially if the alligator is really tightly wound.

Cheers,

Damon
"Keep your eyes on the helpers" - Mr. Rogers
  • #80
  • Feb 6, 2008 1:41pm Feb 6, 2008 1:41pm
Hello everyone following this thread.

As you may know, the "Inside Bar" is only one method in which I trade. Someday I want to list them all as well as any rules that go along with them. So here is what I am going to do.

Please keep in eye out for my mother thread. This will be the core of my operation and from where I will link to other threads that will talk about each strtegy in particular. From this mother thread, I will also be uploading my spreadsheets.

I am hoping that I will have more time lately because it is getting easier and easier every night to go over my trades and pending orders.

This method will allow me to keep this thread for IB trading questions and education only and won't confuse anyone by putting to many tradingideas on one thread.

Hope that you all enjoy.

Damon
"Keep your eyes on the helpers" - Mr. Rogers
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