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Jacko's Forex House of Pleasure and Pain

  • #3,441
  • Apr 25, 2008 9:59am Apr 25, 2008 9:59am
Gotta say Ocean that is one sleek looking chart you got there.
  • #3,442
  • Apr 25, 2008 10:00am Apr 25, 2008 10:00am
Quoting ferose
wow ocean..that IS brilliant..thank you SO much for this...
Ferose,

Thanks for the kind words.

Ocean
  • #3,443
  • Apr 25, 2008 10:01am Apr 25, 2008 10:01am
I got to say ....we got NO room for EW on this thread....or G/J!! Please stick to the soul of this thread.

And u wonder why group members don't post ....
  • #3,444
  • Apr 25, 2008 10:01am Apr 25, 2008 10:01am
Quoting forexmoments
Gotta say Ocean that is one sleek looking chart you got there.
As everybody here say. Less is better.

Ocean
  • #3,445
  • Apr 25, 2008 10:04am Apr 25, 2008 10:04am
Quoting Jarret
I got to say ....we got NO room for EW on this thread....or G/J!! Please stick to the soul of this thread.

And u wonder why group members don't post ....
Jarret,
My intention was to help some traders understand the big picture. Perhaps I shouldn't post it here.

Ocean
  • #3,446
  • Apr 25, 2008 10:08am Apr 25, 2008 10:08am
Sorry man, but yes -you should start another thread ( not just you)....this was Jacko's Journal and if you want to post here-keep it to core of what he teaches.
  • #3,447
  • Apr 25, 2008 10:11am Apr 25, 2008 10:11am
Quoting Jarret
Sorry man, but yes -you should start another thread ( not just you)....this was Jacko's Journal and if you want to post here-keep it to core of what he teaches.
You are right. Jacko started this thread so he is in power what shape should it have. No more EW here

Ocean
  • #3,448
  • Apr 25, 2008 10:27am Apr 25, 2008 10:27am
ocean, i have PM you..
make money up or down...whatever ! :
  • #3,449
  • Apr 25, 2008 11:39am Apr 25, 2008 11:39am
Week done. Very bearish week this was. Last 3 weeks we had nothing but dancing up and down. Now it looks like that's past and will see some more consistent movement from now on, wether its bullish or bearish.
As I mentioned, a retrace of 100pips has occured from the low of 1.5554 to 1.5666 , I believe now that we're going to have a move up. Since today is friday and I prefer not to have a position open over the weekend I am going to be looking to buy on monday, probably at 1.5600 price if I can get it. If not, I'll wait for price to penetrate 1.5700 and see if I can get it at 1.5700.

Good weekend everyone
  • #3,450
  • Apr 25, 2008 2:40pm Apr 25, 2008 2:40pm
Quoting kaunasny
...And people, this week I made 2 trades. I bought at 1.5990 and closed my position at BE once i saw no big move up is comming. 2nd trade I made was buy at 1.5850 wich i had a drawdown of 30 pips with AH set now at 1.5820 . No more trades for me this week. So if you had more than 3 trades this week, you overtrading Jackos system, meaning your doing something wrong, meaning your probably wont get same results....
I made 2 trades this week (in the Euro), I bought at 1.5795 (my plan was 1.5800), a got stopped out at 1.5695. -100 pips.


Quoting kaunasny
In this down move, we had so far only 3 retracement higher than 50 pips, 2 of them were 60 to be exact, and you had to be very unfortunate to get yourself in that position so that retracement of 60 pips would triger your AH order.
And I had a AH trade at 1.5695, which got stopped out at 1.5607. -88 pips.

I'm not complaining; I just want to show that you can follow the rules and still lose sometimes. You lost 30 pips in the same week I lost 188 pips. You can say I wasn't patient, but I waited and bought near a nice supporting trend line and then followed Jacko's rules precisely.

Yes perhaps on the first trade I could have let the price bounce off of the trend line before buying or on my second trade behaved as you did on your first trade and quickly moved your stop to breakeven because of the apparent weakness over 1.6000. But this isn't in Jacko's rules.

So again I want to make the point that there is much more to this strategy than it appears on the first few pages. So if, for example, Ocean wants to enter based on E. Waves, more power to him. The entries are really wide open.

So let's be honest and not act as though when you lose it is always due to not following the rules and the method is flawless. No system/method is perfect.

This thread addresses a set of GREAT RULES to follow when we are trending. When the trend stops or begins to reverse, they are not so great. No system I have ever seen addresses both trending and ranging markets, for that would be the Holy Grail, and we know that does not exist.

In short, Kaunasny give yourself a pat on the back because your intuition played a large role in your success this week. And that should be confidence building. You traded loosely within the Jacko "framework" in a non-trending (or perhaps a down-trending) market and came away with just a light bruise.

Congrats,

Sean
  • #3,451
  • Apr 25, 2008 3:56pm Apr 25, 2008 3:56pm
Hi Cruze2005,
re post 3393 and TSL. I also use GFT and Halifax. I live in South Australia.
This is how I have set things up. In parameters set the default trailing stop. When placing the order use "parent and contingents." Parent is either 'limit' or 'stop' depending if current price is above or below the price you wish to enter. Then I tick (check) the trailing stop box. The number in the stop field should automatically change to parent minus the default stop (assuming you are going long.) The TSL should have no effect until the parent has triggered. Once triggered the stop will be the highest price minus the default. If triggered and price goes down the TSL should not change because there has not been a higher price.
I hope this helps. Send an Email if you would like me to send you screen shots.
Cheers
Michael
  • #3,452
  • Apr 25, 2008 3:57pm Apr 25, 2008 3:57pm
The reason I got away with small bruze of 30 pips because I did not have 100 pip TSL. otherwise it would have been 80 pip loss. I have a little different strategy to enter trades wich I don't want to discuss here.
Yes, you right. I have my own way of trading within Jackos framework.
Sometimes it helps, sometimes it doesn't.

You was one of those very unfortunate, price just got you back in the market and droped right away. That is just bad luck. That again shows that AH is not 100% money back guarantee.
Actually in the trade wich I bought at 1.5990 , price went up 30 pips, and then fell below my entry and I was negative in pips. Then I saw that expected strength to run the market up is not there. So I placed TP order at BE wich was filled when price kept bouncing around.

Sean, if you made only 2 trades this week, then my post wasn't pointing at you. I see that your trades were reasonable. My post was more for other members that probably had 10 trades in last 2 days, or it seemed that many.
  • #3,453
  • Apr 25, 2008 4:43pm Apr 25, 2008 4:43pm
Quoting kaunasny
Sean, if you made only 2 trades this week, then my post wasn't pointing at you. I see that your trades were reasonable. My post was more for other members that probably had 10 trades in last 2 days, or it seemed that many.
I didn't take it that you were "pointing" at me. I just wanted to show an example of what can go wrong even if you are doing your best to follow the rules.

And your point is well taken that one of the goals of this method is to prevent the overtrading. I am very proud that I had only two trades this week. I am usually in and out of the market many times a day. It took great restraint on my part to limit myself.

This method is totally against my training. As Jacko pointed out that the charts below 4 hours have a great deal of noise. Well this noise can be very profitable with proper discipline. The opposite reason for Jacko focusing on the Euro for this style of trading (lack of noise), is why I like the Yen for the short-term (more noise).

Maybe I'll never sync with this method, but I haven't given up yet.

-Sean
  • #3,454
  • Apr 25, 2008 5:23pm Apr 25, 2008 5:23pm
Quoting seanchicago
I didn't take it that you were "pointing" at me. I just wanted to show an example of what can go wrong even if you are doing your best to follow the rules.

It is often said that if you lost money by sticking to the rules then you should be pleased. It's when you lost money breaking the rules or even made money breaking the rules that you need to be concerned. No system is 100% perfect; all systems have drawdowns. If we can minimise losses during these negative periods then over the long term we can make a living out of this.
The market reveals who we really are...
  • #3,455
  • Apr 25, 2008 5:40pm Apr 25, 2008 5:40pm
Quoting seanchicago
I made 2 trades this week (in the Euro), I bought at 1.5795 (my plan was 1.5800), a got stopped out at 1.5695. -100 pips...
Hi Sean!

Thanks for your honesty and I agree with everything you said.
  • #3,456
  • Apr 25, 2008 7:33pm Apr 25, 2008 7:33pm
Quoting mros
Hi Cruze2005,
re post 3393 and TSL. I also use GFT and Halifax. I live in South Australia.
This is how I have set things up. In parameters set the default trailing stop. When placing the order use "parent and contingents." Parent is either 'limit' or 'stop' depending if current price is above or below the price you wish to enter. Then I tick (check) the trailing stop box. The number in the stop field should automatically change to parent minus the default stop (assuming you are going long.) The TSL should have no effect until the parent has triggered. Once triggered the stop will be the highest price minus the default. If triggered and price goes down the TSL should not change because there has not been a higher price.
I hope this helps. Send an Email if you would like me to send you screen shots.
Cheers
Michael
Cheers cobber,

I used to use the parent and contingent function but now just enter with stop orders. I am not to sure what happened but when I put an order on yesterday and it continued to move south, my stop stayed where it was @ 5700 i believe, where it normally followed it down, in this case with price action yesterday would have been closer to the 5600. So I will just have to keep an eye on it in the future, or i may just go back to P and C orders. Oh and ive did change the trailing pip number, cheers for the info.

BTW how did you get to know of the GFT platform. Did you do a course through Learn to trade???

Nice to meet you m8

Max
  • #3,457
  • Apr 25, 2008 9:24pm Apr 25, 2008 9:24pm
As has already been intimated by several posters, this thread is getting away from Jacko's strategy and you should have already noticed that he is conspicuous by his absence. His private correspondence is indicating his frustrations with what is going on here. He has already closed down one Forum because things got out of hand, please all calm down and go back to Jacko's basics.

Over the months, I have copied extracts from this Forum and put into a file called "Summary of Jacko's Principles" which I review weekly. Some of these I have copied below and some may even be from his Private blog and emails to me as I no longer know which is which.

Sean and Ace - please don't get into it again on the Forum as that is a sure way to get the great man to walk away.

I start with weekly, then move closer in using daily, and 4 hour to help me make a decision

I use the barest of Technical tools...minimal numbers of Support and Resistance lines, the 50% Fib retracement rule and the natuaral "clustering of trades around the "round numbers" (eg 2100...2200..etc).

Again, not wanting to sound like an old man, but this trading is not as hard as young aggressive traders make it into...just calm down on the fast in /outs and go with the flow (or trend). If you are waiting for this market to turn from 18 MONTH bull to bear in the immediate future, you will be financially stripped.

This must probably be the best advice I have ever used...know your market, know what makes it change, know the ranges, know the expected pip moves on a daily, weekly, monthly basis

TRADE THE LONG TERM FORGET ABOUT INTRADAY YOU WILL LOSE YOUR MONEY BEFORE YOU HAVE LEARNED WHAT TRADING IS ABOUT

There is no need for me to rush to enter a trade. I don't believe that we are going to see a spike straight back up

I try to think in a logical and methodical way.

I only use the Charts in the normal day to day trading environment.

I am not in a rush....if we see a good opportunity we will take it, but we are patient and think that there may be a better opportunity in 48-72 hours. (Maybe less, maybe more.... the price action will tell us)

I don't mean to try to "predict" any particular target. I try to let the market tell me when it is changing (or more correctly, when it has changed).

When this happens you need to go for a long walk for at least one hour, then come back and have a look at the "big picture" (at a minimum, use a daily or weekly chart) to put yesterdays drop into perspective.

A good trader has the experience / gut feel / etc NOT to get overly excited and trade dangerously.

However, you will only learn this by making lots of mistakes and getting old

I am a medium term trend trader, so I do not trade frequently....but I do trade in large volumes so each of those pips are worth a lot of money to me. (However, whether you have 200 lots or 1 lot...it is still the same.You don't run around firing a gun blindly and repeatedly hoping to hit a target. You sit back like a sniper with a telescopic lens and a big caliber bullet and you hit the target. (The A-H is like a ricochet that bounces the bullet back at the target if you miss it the first time).

I draw trend lines for weekly, daily and 4hr. I use the lows

Firstly, you should never go into a trade without knowing exactly what you should do in a trade.

Secondly, unless you are absolutely sure what a trading strategy is, you shouldn't use that strategy.

And thirdly, you should never buy again, immediately after a loss. It is a "revenge" buy, and they are rarely successful

Some people seem to think that gold is "going up" or "going down". The same with oil prices. The same with the Euro, the same with the GBP, the same with JPY. However, they all have a single common denominator...the are all priced in US dollars. (If you charted the Euro, the GBP, the JPY and gold...all in US dollars...you will find a remarkable similarity in the charts)

Originally Posted by Bakuli [IMG]file:///C:/Users/Robert/AppData/Local/Temp/msohtml1/01/clip_image001.gif[/IMG] (http://www.forexfactory.com/showthread.php?p=1947127#post1947127)
Hi Take Profit,

I find what helps emotionally is to have a plan before you place your trade and then trade to that plan. That way you do not have to start making all those decisions about exits, take profit etc during a trade. Personally, I don't always look at the resistance levels to take profit because price will always meet with pockets of resistance along it's way. I have a predetermined number of pips that I want to protect once I am x number of pips in front and leaving the rest to run. It's just my way of managing my trades and it helps me emotionally and keeps me disciplined (ie following a plan).

Another factor, which has been mentioned before, is that if a trade is causing one much anxiety, then probably it may be due to taking on too much risk. So the logical step would be to cut down on the size of the trade until you feel comfortable with it and feel less inclined to "interfere" with the trade, letting your pre-determined trade plan play out itself. I used to trade too big a position for my account and that affected me greatly in that I was watching every tic with constant thoughts of "Shall I take profit now ? Shall I cut my losses now ? etc. ". I wasn't able to trade any pre-determined plans I had for my trades because of the anxiety and strong compulsion to close the trades prematurely. Well, that's all history now since I started trading at a more sensible size and can withstand several losing trades without seriously damaging my account.

Happy trading [IMG]file:///C:/Users/Robert/AppData/Local/Temp/msohtml1/01/clip_image002.gif[/IMG]
Bakuli
Hi Bakuli

Your post shows a great increase in your trading maturity....EXCELLENT WORK !!!!

To all Newbies,

This is why one of my brokers approached me a short time ago and said to me..."we want some traders who are passionate about trading...BUT have the maturity to be excellent traders... AND have a good trading record...who would be suitable for prop trading for our bank.....Do you know anyone???" (Three people out of my group were identified and contacted and two have agreed to take up positions with the bank...the third wasn't prepared to relocate)

If you read the above quote from Bakuli, and can identify with what he is saying, then you have the potential to become an excellent trader.

If you say that he is "full of horse-shit" and you just want to punt on the next 10 pips....then you will NOT become an excellent trader and your trading life will be very short. – Jacko

How are you dealing with the situation we are in now with the strong overhead resistance that has been tested and failed 9 times (on H4), but finally succeeded only to return below resistance again (some call it a breakout failure)? Aside from your counter trend aberration, would you normally wait for the market to resolve itself and give a signal or sign on the daily or just go with a gut feel? It depends on each situation but I prefer to wait for the market to resolve itself







  • #3,458
  • Apr 25, 2008 9:49pm Apr 25, 2008 9:49pm
WEEKLY
There is a HUGE OUTSIDE RED bar with a close LOWER than the previous 2 weeks. This is definitely a BEARISH OUTLOOK
DAILY
The last bar on 4/25 is RED and NOT a pivot bar AND closed below the 1.5660 Fib. It took out 28 days of prices and 4 swing lows.
However, it has not taken out a MAJOR swing low (4/3) so the Daily uptrend is still intact.

Nothing here tells me to go to the H4 to look for an entry.

Nothing here tells me to go short as the main trend and fundamentals are still intact BUT there could be a change in the intermediate trend.

The conflict between Weekly and Daily and the acceleration of the 2 down bars on 4/23 and 4/24 all adds confusion.

We still don't know whether this easing of the high Euro$ is sufficient to passify Trichet and his Euro clowns (sorry, Politicians).

What does Jacko say? See my previous post - I prefer to wait for the market to resolve itself
  • #3,459
  • Apr 25, 2008 10:29pm Apr 25, 2008 10:29pm
eirron (http://www.forexfactory.com/member.php?u=66442)

Excellent post!, Thanks for the reminder, things have had a tendency to get a little out of hand.
  • #3,460
  • Edited 11:31pm Apr 25, 2008 11:20pm | Edited 11:31pm
Since Jacko's method is mid-term or even long-term oriented do you care about overnight rates?

Check trend of a market vs. check swaps

Observe for long trend:

EUR/USD
GBP/USD
AUD/USD
USD/JPY
GBP/JPY
EUR/JPY
EUR/CHF
NZD/USD
AUD/JPY

Observe for short trend:

USD/CHF
EUR/GBP
USD/CAD

Or don't you care so much about swaps?
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