Ok I don't get it please help

Quoting MuddBuddha

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Yes, this is the system I use on the above qoute, and since that qoute I've added the 30 minute chart. To clarify the pip range, I diversfy my pair portfolio to a select few pairs that I feel confident with and have traded for a while.

When I started trading stocks (day trading) a few years ago, the instructor said to diversify your portfolio to protect yourself but to do so within a range of reliable stocks and careful not to over diversify as you would have the same effect or worse as a un-diversified portfolio. In essence, he was stating that an over diversified portfolio in day trading was too difficult to manage properly and would have a bad effect as the stock trend moved against you - you may catch it late or not at all.

When I started Forex, I read an obscure website author who said to concentrate on 1 pair until you knew that pair very well and then move on to another - eventually totaling 4-6 pairs.

Currently, I have only four pairs that I trade: EUR/USD - EUR/GBP - EUR/CHF - AUD/USD

What I have done is chosen 4 currencies that are radically different from each other in their movements and pinned a chart time that I use for each one.

The EUR/USD : 30 & 15 - 30 exclusively during violatile periods
The EUR/GBP : 1 hour - It has beautiful peaks and vallys but is rather shallow on the 30 and 15 minute charts
The EUR/CHF : 30 and 1 hour - She's my nice "slow and steady" - I like her because she's reliable and doesn't give you too many suprises.
The AUD/USD : This one I recently added in substitution for the USD/JPY. I haven't quite figured out her pattern yet. She was profittable for me last week on the 30 minute charts, but if you view the daily on the same EMA settings, it's a scary ride. The 3- hour is decent, but I'm thinking it will be a strictly 30 minute pair.

The thing I like about these pairs is that what affects one doesn't necessarily affect the others. The EUR/USD make take a dive and never see the effect ripple to the EUR/CHF. The same can be said for the EUR/USD AUD/USD. If the dollar plumments on rising oil - the effect noted on the AUD is still there but on a much smaller level. So while I was longing the EURO/USD most of the week, I was shorting the EUR/CHF and both on the EUR/GBP.

The important part of acquiring the stated pip range is that I monitor the market and my positions like a hawk. I am not sitting in front of the computer all day, but I do check it regularly and yes, even a couple of times during the night. Even though I have four pairs set up in the platform exclusively, I make it a rule never to open more than 2 positions at any given time. It just seems to work better for me that way - not really sure why. So, if I see an opening on a pair and already have two positions open, I may close a slow moving position and open on the more favorable pair. But "Ms. Slow and Steady" is always there to go back to.

I realize this is not a well written, technical description, Dial, and I apologize for that; but it is the method I use. Now, I've had times that I have broken the rules, have gotten impatient, or decided to try something new that has seriously back-fired on me, and I'm good about admitting when I've been an idiot. Normally, it's when I try to get technical that I fail terribly. Simple systems seem to work better for me and I personify the pairs slightly in the way I relate to them(sounds kinda sad).

My pip average is fairly stable since I am pratically always in a trade, but it's not without effort. I changed platforms a couple of weeks ago and really screwed myself up. I just couldn't adapt to the platform and had to change screens to view charts and another to place orders. I was with them(Forex.com) for about 4 days and I called them and asked them to cancel my account. I didn't do well that week at all. Even utilizing the same system. The 5 and 15 minute charts on their platform were terrible and the price flucuated rapidly - UUGGGH. So, I went back to Oanda.

Chart the system and see what you think. I added some charts to my blog at TIER-7 if you want view the 15 and 30 comparison of the pairs I talked about. I was getting a lot of request for them so I stuck them up this afternoon.

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Quoting diallist

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MuddBuddha,

Wow! Thank you so much for taking time to give such a detailed reply. It was very gracious of you!

Thanks to you I've been having a lot of fun tonight playing with your system. I've even made a few pips too

No, it does not "sound kinda sad" that you anthropomorphize your pairs. I think it's kinda neat! Especially since you give them female personas. Here's an idea: I'm gonna call them "Mudd's Women" as in the Star Trek episode of the same name!

Thanks again for the excellent reply!

Dial

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Quoting Antra

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Hi Jim,
I like your thread on the charts. I know you say price action is very simple to follow but your observations are very clever. I learn a lot from every chart you put up and it also makes me realise how much more I have to learn! Thanks.

It really is nice of MB to share. I always thought the whole idea of a forum was to share ideas and give support and help where it was needed and hence it was sad to see so much negativity happening in past months.
The dynamics of a good forum with positive input will really help us all.

I like 'Mudds' women...where does your humour come from Diallist?????

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Quoting diallist

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MuddBuddha,

Wow! Thank you so much for taking time to give such a detailed reply. It was very gracious of you!

Thanks to you I've been having a lot of fun tonight playing with your system. I've even made a few pips too

No, it does not "sound kinda sad" that you anthropomorphize your pairs. I think it's kinda neat! Especially since you give them female personas. Here's an idea: I'm gonna call them "Mudd's Women" as in the Star Trek episode of the same name!

Thanks again for the excellent reply!

Dial

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Quoting james16

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do any of you old timers remember several months ago we had more than a couple of people that would go out of thier way to tell you they would not share thier trading methods. have you also noticed that its been a long time since we have had any of these jerks prowling around. well i have noticed and its been a nice run and its because of all the decent people on this forum. they just cant thrive here which is fine by me. thanks again mb. jim

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Quoting james16

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as we would say here in texas, well thank ya maam. dial gets his humour from the same place i get mine. he stays up half the night.

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Quoting diallist

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Yep! And I alternate which half. Sometimes I'm up until 3am, and other times I get up at 3am. 'Splains my wackiness a bit, eh?

BTW, I updated the image of Mudd's Woman.

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Quoting Antra

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Ha Ha Hee...Olivia Newton John as well for the Aussie....very clever...Gave me a good laugh today...thank you and your wackiness!!!!

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Quoting diallist

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G'day Antra,

Happy to be of service Milady .

It's good to hear from you again Antra, keep it up!

Dial

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Quoting ivenger

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"The more people trade the less efective a systme becomes". Is this saying true. Here are some thoughts on the matter.
If many people use the same method then the MMs and large players will play eventually against you. This means that using some system changes the market itself - specificially against that system. For an efficient market the randomness should be perfect. However, the market is not at its utmost efficiency, mostly as it seems to me, because the ampunt of players is large, but finite. This is why mechanical systems work. However, the correction to a player (a stratgy) that all the time drains money from the market would soon be made. A counter-strategy would develop in a short while. This is why I think that any system works only for some period of time. The more money you've made using the system, the more chances there are that the market will change. The more players play the same strategy - the more money they make. Hence a distribution of system among many players haunts its longevity and efficiency.
However, I think that all this isn't really relevant while all who use a certain system is a small amount of players.
Here's a simple calculation. 10 players play among them say at most 10(lots/per player)*10(players) = 100 lots (which corresponds to ~100 million $) which is ~4 orders of magnitude less than goes daily on the forex spot market (~1*10^12). That means that our 10 players play only 0.01% of the total equity of the market. However, when you increase the amount of players to say 1000 you start to account for ~10% of the total turnover on the market. Remember that all our players use only one strategy. Hence it would be very efficient to come up with a strategy that would play against 10% of the market at once. Hence such a strategy is developed by someone (or some institution) and it eventually changes the structure of the market such that it is not beneficial anymore to play our devised strategy.

I hope I am making some sense. Please correct me if I'm wrong.

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Quoting MuddBuddha

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I'll tell you my super techincal system which is similar to your own.

I use a 10,25,and 50 EMA on a 30 minute chart with a Parabolic SAR at 9,3 (3).

I include a Stochastic indicator at 0.02, 0.2.

I have tried a lot of systems - but I like simplicity.

When the 10 crosses (completely) the 25/50 with the SAR on the entering side, enter the position. I use the Stocahstics as some indicator as to the trend length and strength. There is more detail about it at www.TIER-7.com under Personal Trading Books.

I would advise using a 15/30/1 hour chart.

I know it's not as elaborate as other systems, but I just enjoy using this system and it has rarely let me down. No lines to draw, no charts to analyze, no projected Fibonacci guiding registers pointing to the third quadrant of the monetary expenditures , just plain simple forex trading.

(Unless we're talking about the analysis from guys like james16, he does cool charts - but doesn't sleep much from what I understand and he points out very solid entry points)

As far as missed pips, you need to wait for the indicators no matter what. So they aren't really "missed" - they are positional pips that need to be generated in order for your indicators to kick in (at least, that's what I tell myself). It's best to play it safe and be patient.

You miss one trade? I got great news - there's always another one.

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Quoting MuddBuddha

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Wooops. Good catch, James.

Yes, it should be the reverse of what I wrote.

!aixelsyd nmad

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