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Jacko's Forex House of Pleasure and Pain

  • #4,341
  • Jul 4, 2008 9:00am Jul 4, 2008 9:00am
I'm not sure how many people had a stop hit for a loss during the reaction to the NFP report. My stop got hit for a loss.

Now I have a chance to try the AH strategy.

James
  • #4,342
  • Jul 4, 2008 9:34am Jul 4, 2008 9:34am
Newbie here.

Many of you speak of using a buy limit order to get into a trade (long). This means that your broker will buy the currency if the price is at your limit level or below.

Thus you are trying to catch a retracement on the way down. But you don't know how long it will go down.

Wouldn't it be better to let the market come up to you by using a buy stop at a level which demonstrates that the market has finished its retracement and is coming back up?

To me it's a matter of insurance. If I lose the few pips (waiting for the market to come back up, hopefully indicating that the retracement is completing) then I will be more likely up than down.

But I may be wwwwwrong.

By the way, I'm off to the bank to send a money transfer to join Jacko's group (I'm in Canada, so the banks are open).

BarryPips
  • #4,343
  • Jul 4, 2008 10:15am Jul 4, 2008 10:15am
Quoting BarryPips
Newbie here.

Many of you speak of using a buy limit order to get into a trade (long). This means that your broker will buy the currency if the price is at your limit level or below.

Thus you are trying to catch a retracement on the way down. But you don't know how long it will go down.

Wouldn't it be better to let the market come up to you by using a buy stop at a level which demonstrates that the market has finished its retracement and is coming back up?

To me it's a matter of insurance. If I lose the few pips (waiting for the market to come back up, hopefully indicating that the retracement is completing) then I will be more likely up than down.

But I may be wwwwwrong.

By the way, I'm off to the bank to send a money transfer to join Jacko's group (I'm in Canada, so the banks are open).

BarryPips
I think it's how aggressive a trader you are, it's probably safer to use a buy stop when going long because hopefully the trend is continuing rather than trying to catch the bottom.
  • #4,344
  • Jul 4, 2008 11:50am Jul 4, 2008 11:50am
First of all I agree about 'Buying on the way up' instead of 'Trying to catch the falling knife.' So I am more comfortable waiting for the market to turn back up before buying.

Second, I have a question about the AH strategy.

I know that the theory is to re-coup losses by buying back in at the level of the stoploss, but... here is my question, with some imaginary numbers...

First the trade. I enter long at 1.5000, with a TSL of 100 pips. The price goes in my direction to 1.5050 dragging my stoploss from 1.4900 to 1.4950.

This is of course if I understand the TSL right. It is to be moved as the price makes each new high, to be 100 pips below the most recent high, thereby reducing losses.

So, the price goes in my direction 50 pips before reversing and hitting my stop at 1.4950, for a loss of 50 pips. As the price continues down it hits 1.4900, 50 pips below my stop, and I enter a limit order at 1.4950 to buy on the way back up.

A few days later my order gets triggered at 1.4950.

Do I use the same 100 pip TSL?
Do I set a TP at +50 so I re-coup my losses?
What if the result of the trade is +10 pips, is this a successful AH trade?

Any thoughts on this?

James
  • #4,345
  • Jul 4, 2008 12:11pm Jul 4, 2008 12:11pm
Quoting BarryPips
Thus you are trying to catch a retracement on the way down. But you don't know how long it will go down.

Wouldn't it be better to let the market come up to you by using a buy stop at a level which demonstrates that the market has finished its retracement and is coming back up?
That is a perfectly valid entry strategy, let price fall through, in this case 1.5650, and then place your limit order to catch it on the way back up. However, and this is one of the benefits of trading this system, the wide stop we use is designed so that we don't have to be exactly right with our entries, combine that with the AH trade in the event of a loss and there's nothing to worry about. If you're still nervous about pulling the trigger, then risk less per trade.
  • #4,346
  • Jul 4, 2008 12:21pm Jul 4, 2008 12:21pm
Quoting jharvey407
So, the price goes in my direction 50 pips before reversing and hitting my stop at 1.4950, for a loss of 50 pips. As the price continues down it hits 1.4900, 50 pips below my stop, and I enter a limit order at 1.4950 to buy on the way back up.

A few days later my order gets triggered at 1.4950.
So far so good...

Quote
Do I use the same 100 pip TSL?
Yes.

Do I set a TP at +50 so I re-coup my losses?
No. The AH is partially for recouping your loss, but it's also for getting you back in with the direction of the trend, ride it until your TSL gets you out.

What if the result of the trade is +10 pips, is this a successful AH trade?
Yes, if that's where your TSL got you out.
  • #4,347
  • Jul 4, 2008 12:40pm Jul 4, 2008 12:40pm
JHarvey,
I think it's important to lock in some profits, ive read many times from more experienced traders to never let a winner turn into a loser.
  • #4,348
  • Jul 4, 2008 1:24pm Jul 4, 2008 1:24pm
Quoting Lou
Well ehsan,

Do you want to stop?

If not then I would find a broker that let you trade micro lots... ie.. a dime or penny a pip. So you dont blow away your account.

If you can stop, and think about getting another kind of rush... the rush of viewing the market in the longer term, placing strategic trades, having some kind of a safety net, using the fundamentals, being strategic about the News, ....... then I would have to say you have posted on a thread to find all of that.

It can be a matter of playing chess vs a video game.
Hi ya Lou,

Hoping you could help, where you say 'being strategic about the news' I was wondering how you trade Jacko's system at news time if you have a trade on or want to make a trade?
If anyone else can give advice on this it would be much appreciated

Thank you,
Adrian
  • #4,349
  • Jul 4, 2008 3:52pm Jul 4, 2008 3:52pm
Quoting aarangio
Hi ya Lou,

Hoping you could help, where you say 'being strategic about the news' I was wondering how you trade Jacko's system at news time if you have a trade on or want to make a trade?
If anyone else can give advice on this it would be much appreciated

Thank you,
Adrian
One of the members asked, if it is advisable to trade during the news times and Jacko replied, that yes, as long as you don't trade THE news - meaning in and out in less than 5 minutes.
  • #4,350
  • Jul 4, 2008 7:50pm Jul 4, 2008 7:50pm
I took a long order ... anyone else still with the long order ?
  • #4,351
  • Jul 4, 2008 8:01pm Jul 4, 2008 8:01pm
Quoting BarryPips
Newbie here.

Many of you speak of using a buy limit order to get into a trade (long). This means that your broker will buy the currency if the price is at your limit level or below.

Thus you are trying to catch a retracement on the way down. But you don't know how long it will go down.

Wouldn't it be better to let the market come up to you by using a buy stop at a level which demonstrates that the market has finished its retracement and is coming back up?

To me it's a matter of insurance. If I lose the few pips (waiting for the market to come back up, hopefully indicating that the retracement is completing) then I will be more likely up than down.

But I may be wwwwwrong.

By the way, I'm off to the bank to send a money transfer to join Jacko's group (I'm in Canada, so the banks are open).

BarryPips
What he said. I'm new to this forum and have also just last week joined the second Jacko group.

Maybe you old pros can help me. I see a 50 fib at 5693 and another one at 5606 on my charts but nothing at 5650 to support an entry other than the round number.

The next real level of support I see is 5450 - 5500 on both the daily and 4H charts.

Since the US market was closed yesterday (I am in China so it is Sat here now) I think yesterdays action does not give much of a clue what will happen next. Therefore I am sitting on my hands until Monday.

Help a novice out. What do you guys see that I don't?

thanks
"Money is easy to make, but hard to keep" - FWV 1975
  • #4,352
  • Jul 5, 2008 3:35am Jul 5, 2008 3:35am
Quoting hendrix
One of the members asked, if it is advisable to trade during the news times and Jacko replied, that yes, as long as you don't trade THE news - meaning in and out in less than 5 minutes.
Hi ya Hendrix,

Thanx for your help again on this question ..much appreciated..

thanx,
Adrian
  • #4,353
  • Jul 5, 2008 5:53am Jul 5, 2008 5:53am
Quoting bjohn34

Help a novice out.
PHP Code
What do you guys see that I don't
?

thanks

We see the members blog, welcome bjohn34. After reading the blog, any matured and serious trader will understand at least a little on how someone who trades big think.

See the trade history... ... and thoughts.

I must say, what an eye opener Jacko is. There is so much to learn just by reading the emails questions from smart traders and answer from the veteran. I definitely am humbled by Mr and Mrs Jacko (He is the real deal, trading his own money). If after reading once through and you have questions, i recommend reading again.
Welcome
Still waters run deep
  • #4,354
  • Jul 5, 2008 7:37am Jul 5, 2008 7:37am
Quoting luqmanz
I took a long order ... anyone else still with the long order ?
I am long with an AH trade at 1.5705.

At least I think I am long, my broker was closed when the price went up to 1.5709, so I am not sure how they are going to handle my limit order. We'll see on Sun night.

James
  • #4,355
  • Jul 5, 2008 10:50am Jul 5, 2008 10:50am
I just do not get it. Why on God's green earth would anyone go long? The July 3 bar is a magnificent example of a BEOB or bearish outside bar. It happened right smack on top of resistance, and the thing screams SHORT!

I suspect a gain of around 300 pips on this. There is support at 1.5350.

People - it is fine to attempt to apply Jackos method, but to do so blindly in the face of market price action that runs counter to your trade is a fast way to lose your shirt. Especially so if you do not have storng money management skill.

Sheesh.


Quoting jharvey407
I am long with an AH trade at 1.5705.

At least I think I am long, my broker was closed when the price went up to 1.5709, so I am not sure how they are going to handle my limit order. We'll see on Sun night.

James
I'm pretty much done with all this ...
  • #4,356
  • Jul 5, 2008 11:22am Jul 5, 2008 11:22am
Quoting StoragePro
I just do not get it. Why on God's green earth would anyone go long? The July 3 bar is a magnificent example of a BEOB or bearish outside bar. It happened right smack on top of resistance, and the thing screams SHORT!

I suspect a gain of around 300 pips on this. There is support at 1.5350.

People - it is fine to attempt to apply Jackos method, but to do so blindly in the face of market price action that runs counter to your trade is a fast way to lose your shirt. Especially so if you do not have storng money management skill.

Sheesh.
I agree with you that this is probably an AH that will result in a fallen soldier. Maybe too early to go long at this point if you are looking only at daily TF. Money to be made short and long on different time frames. However, The monthly PA is showing a DLHC. My reason for building longs from 1.5800.
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  • #4,357
  • Jul 5, 2008 11:56am Jul 5, 2008 11:56am
Quoting StoragePro
I just do not get it. Why on God's green earth would anyone go long? The July 3 bar is a magnificent example of a BEOB or bearish outside bar. It happened right smack on top of resistance, and the thing screams SHORT!

I suspect a gain of around 300 pips on this. There is support at 1.5350.

People - it is fine to attempt to apply Jackos method, but to do so blindly in the face of market price action that runs counter to your trade is a fast way to lose your shirt. Especially so if you do not have storng money management skill.

Sheesh.
Don’t waste your time my friend… This is exactly why I pulled my charts from here. Some people need to learn the hard way what will happen to their accounts during ranging periods and when they buy against obvious reversal signs. We need such traders..., they are very beneficial to our accounts..



Quoting KissFan
...However, The monthly PA is showing a DLHC. My reason for building longs from 1.5800.
If your trading off monthly charts, you're expected to close your trades on monthly as well. Will you keep them that long....?
  • #4,358
  • Jul 5, 2008 12:20pm Jul 5, 2008 12:20pm
Quoting raczekfx
If your trading off monthly charts, you're expected to close your trades on monthly as well. Will you keep them that long....?
Are you asking if I will hold a position for as long as a month? If so, yes. Are you going to suggest that a safer trade would be the break of 1.5843, the top of my June candle? I cannot recall reading about this on James 16. Your exposition will be greatly appreciated. Thank you.

PS I know that we will probably need to move this discussion over to James 16. Or feel free to PM me.
  • #4,359
  • Edited 1:17pm Jul 5, 2008 12:33pm | Edited 1:17pm
I should've started reading from behind.
  • #4,360
  • Jul 5, 2008 12:54pm Jul 5, 2008 12:54pm
Quoting psyber85
Good day all.
I've been reading this thread since post number one page number one and i'm currently at page number 92 - less than halfway through - after 4 freaking days!

.
psyber85,

Have you looked at the 'condensed but nontheless accurate version with no bs' ? It can be found in the small box at the upper right of the thread on this page. There is a number there with a paperclip. Select the pdf dated July 3. It is about 25 pages of great reading..... And thank BarryPips.
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