Jacko's Forex House of Pleasure and Pain

Quoting xgxg

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Hi,

Great forum and excellent posts! I almost read thru this thread now. It's my impression that Jacko's methodology really works fine for a person who's currently got a fulltime job while trading part-time. Can anyone share some experiences in that regard? Jacko's private group members are especially welcomed to share their experiences if they choose to do so.

keep up the great work!
xg

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Quoting acetrader

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As everyone can see on post #1741 I used Jacko's method & reloaded E/$ longs @ 5100 & now price is holding @ 5317. When I entered this trade it was entered following the rules (5100) & the obvious trend is UP. This is 4 lot trade live 100K account. If PRICE retraces to 5200 & holds I will add 1 more lot, but I will not hesitate to take profits on all 4 lots if it turn to much against my position & this might be a veriation from the rules somewhat, but that is just my style. Stick to Jacko's rules & you will prosper.

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Quoting stewartr

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Well done Acetrader.
Curious - do you trade other pairs too; or have you come to the conclusion that one pair is sufficient to provide the trading opportunities you want?

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Quoting jacko

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Hi stewartr,

I am often confused by these types of questions. Why does everyone want to trade 10 or so pairs...so they can feel like a Master of the Universe? Too many people see forex trading as standing around in a hyper stance, trading every twenty seconds and playing their trading platforms like fast moving computer game.
It is NOTHING like that !!!!!

The Eur/USD is the major pair in the world, which means that it has the most stable trend of all the pairs. (that is, all the others have higher degrees of volatility...read that as "being whipsawed endlessly").

The BEST market to trade is one that consistently trends in one direction with minimum volatility. If you want to add more risk, then you can simply increase your trading lot size.

PS Stewartr, the MoU statement is not referring to you as I know you don't trade that way

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Quoting acetrader

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Hello Jacko,

Ref post #1748.....it can't get much simpler than that. Thats the type I like boring & profitable. Tks for that example.

AceTrader

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Quoting stewartr

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Hi XGXG,
I am in Jacko's group of followers.

......................

After 3.5 months of following Jacko's style, I am finally trusting the method and stepping up to full lots now.

I am a full time trader now. Jacko's method makes me money but it is not entertaining. (I also have a smaller account for day trading so I can amuse myself with trying to pick bottoms and tops). :-)

Just my thoughts.
Best Wishes
Stewartr

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Quoting jacko

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Jacko's method makes me money but it is not entertaining.

LOL....I like that !!!!!



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Quoting stewartr

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Hi XGXG,
I am in Jacko's group of followers. Here are my observations.

1. The method is simple. It relies on a strong trend that is backed up with fundamental reasons for that trend to continue. This is where my confidence is coming from. I live outside of the USA but have dealt exclusively with USA companies for the last 5 years. I can see many 'fundamental' reasons that the USD is weak and I see little/nothing that will change that. So I 'feel' confident of where the prices are going. (No need for endless chart patterns and analysis....the price is going up!)

2. You then buy on discount. If you want to, you can use price action, fib levels, round numbers (whatever you want really)...just buy at a discount. Over the last few months Jacko has been going for big discounts. But the trend has been so strongly up that he has missed a lot of good moves, while he has waited for a better price. That has been good for me to see. Jacko does not panic, he does not chase every pip. He waits for a bargain in a bull market.

But for those of us that are not as patient as Jacko, we have been trading more often than Jacko and making more pips.

3. Jacko's method has losses too (like every method). It seems to me that the deeper you buy on discount, the less likely you are to get stopped out. But this is why point number 1 (a strong trend that is based on fundamentals) is important. If you have a loss......wait......place your AH order.....and wait.....then you get all the money back. (I love that!)

I have made about 40 trades using Jacko's style over the last 3 months. I have been profitable on 30+.

If there are mistakes I've made in following Jacko's method they are:
Mistake 1. I have not waited for a big enough pull back (in otherwords I bought when the price had already moved well off its low, and my 50 pip stop loss was getting stopped out.) I have fixed this by being more aggressive with my entries (ie picking a round number and just getting in, and not waiting for a confirmation that the bounce has happened). Yesterday was a classic example of this with Jacko getting in at 1.5150! Talk about a good entry. I was waiting to see if it would go below 1.5150 and it never did. So I got in at 1.5159 which was about 40 pips better than my earlier trades would have been.

Mistake 2. Stop loss too close. Heh, its a long term trend following approach. It doesnt need a 20 pip stop. Give the trend room to move! (I am only just realising that now. I have always been a short term trader and my close stops are unnecessary and counterproductive to Jacko's method.)

My BIGGEST MISTAKE 3. I was demo trading Jacko's method in an account with a few thousand dollars in it. I was taking small positions for a few weeks (I started with $2000 contracts and stepped it up to 2x$10,000 contracts) and the account was growing. Then I decided to step up the trading to 1% of my risk capital (which is multiple $100,000 lots), and that's when we had 2 losses in a row of the full 50 pips. At that stage I was still skeptical of Jacko's method and I was wondering if the euros sideways move might actually be the start of a reversal. So I went back to trading MICRO (not even mini) lots. So while I am up about 600 pips overall.....I am DOWN in raw $.

Lesson - trade with the exact same position size whether you win or lose, until you have built the account to profit, then increase the position size. My error was not reducing the position size by 90% after a loss and therefore I did not make the loss back up.

After 3.5 months of following Jacko's style, I am finally trusting the method and stepping up to full lots now.

I am a full time trader now. Jacko's method makes me money but it is not entertaining. (I also have a smaller account for day trading so I can amuse myself with trying to pick bottoms and tops). :-)

Just my thoughts.
Best Wishes
Stewartr

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Quoting jacko

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A live example of trading:

At 11.10 am NY time on Tuesday March 4 I advised my group that I had placed an order for a buy trade at 1.5150. (The market was at about 1.5220 at the time)

Some 16 hours later (around 3.10am NY time March 5) the market had fallen to the target and I was activated.

Because I manually adjust my TSL's (because I don't trust computers), I have moved my TSL four times since I entered the trade.

Other than that, I have done NOTHING !!!!!!!!!

My TSL's are in place so I don't need to constantly look at the computer...and I can have a life.

VERY BORING...BUT VERY PROFITABLE

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Quoting xgxg

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Hi Jacko,

Just to share my first trade with your method: entered rather randomly long 1 mini-lot ($10,000) on E/U at 1.5185 and put a 50-pip TSL. I'm not sure if it's a demo account misbehavior or what, i saw a net position of short 1 lot @1.5297 this morning around 11am EST. So maybe i didn't enter the TSL order correctly so it ends up selling 2 lots versus 1. Still I'm scratching my head now as to why 1 long postion turned into 1 short...

but anyway, it appears to be a valid hit via the auto TSL. I wonder if your manual overwrites would keep your trade longer in the current run-up?

thx,
xg

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Quoting Jurrasic

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Hi Jacko and everyone on this thread

I've only read the first few pages and the last few.. sorry about that.. lol
But I think it was quite sufficient to see this is a great thread and Jacko's a great trader. Great stuff ! And I totally agree with what's been said on the previous page - it's "boring" trading.. But I think most people realize it deep down in their guts that keeping it simple and following the trend will win in the long term and just our impatience and lack of mechanical discipline keeps some of us from using it to our advantage.

I have a small question for Jacko, it was probably answered somewhere here already but that's a lot of pages to look for it... Like you asked - I won't nag with it again. I understood the 50 pip SL and buying back at it after the price retraces from a fall of at least another 50 pips. My question is, what is the size of the trailing stop you use once in profit and where do you ussualy enter trades ? Suppose that you had no previous trade with a stop loss and you're looking to enter, do you wait for a retrace bottom to form, price return back up by some percentage ?

Thank you very much for this thread

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Quoting Bakuli

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Hi Jurassic

I think you should read the whole thread from start to finish to get a good understanding of Jacko's method. There're loads of good stuff in it which will help your trading, especially Jacko's insights. Reading just the first few pages and the last few only gives you an idea of his methodology but you are missing out on the main content. Reward come to those who are not afraid of hard work (no criticism of you), so my advise to you is go back to the first page and start all over again as I did when I first came across this thread. You will not regret it !

Best regards,
Bakuli

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Quoting Jurrasic

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I'll try Got a test to study for and a ton of HW for next week, so will take some time..

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