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  • #161
  • Aug 1, 2008 4:10am Aug 1, 2008 4:10am
Dear Lusan,
could You post which was that post where was FTI example?
I have look and read all over thread but did not see.

If You cant, it's ok...

Thank You.

Best wishes,
Tom
  • #162
  • Aug 1, 2008 4:26am Aug 1, 2008 4:26am
Quoting tfflyer
Dear Lusan,
could You post which was that post where was FTI example?
I have look and read all over thread but did not see.

If You cant, it's ok...

Thank You.

Best wishes,
Tom
See #1423 and #1462...#1204...Note MikeD...he is my favorite...but he is gone.
Empty as water and soft as a facing wind mountain
  • #163
  • Edited 11:17am Aug 1, 2008 9:57am | Edited 11:17am
News breakout trading
--->this time fti suggested similarly until he began talking about rebounded for a second wave
--> he suggested short...I would have gone long
why?....Friday...it is a brief session...it felt right because of the long shows of the last 5M...$bears are back and angry...
oh..well..I am on training so I went with him for a rescue session...I am probably missing something here
hey..I need that practice...my rescue skills are becoming rusty...

Pull the plug when he began heavy attack...Agree on PA turning because of expected reversal to the mean on Friday afternoon.. if wrong...real trouble because liquid dies out...and I do not like trading Friday afternoon either!

Day profit: 0.04 %...no such a hot day...keep having problems early morning...news breakout brought book back to positive and gave just a small profit...need to review early morning approach..
Week profit: 1.2 %...(for 3 days of trading)

Comments: non involvement in the continous chatting of the thread help me focusing...that is really a better approach for me...

Nice weekend
Attached Image
Empty as water and soft as a facing wind mountain
  • #164
  • Aug 1, 2008 11:13am Aug 1, 2008 11:13am
Quoting luSan
......

Still...I have many issues about the way people trade...I believe that this is an art...so it will be very different from person to person...so I am trying to develop my way of doing it...a way in which I am confortable, profitable and consistent...if I succed then I met my goal....so I advise you not to try to be fti, be yourself...it will take longer but I believe that it will be more reworthing...

How do your losses happens?...Either you are trading against the 15M, 5M trend, fearful, or impatient.

Regards,
Hi,

Thanks for the answer.
Yes, I am agree with you, that everybody has to develop his own style,
but the method of FTI is an important guide for me because I am still
in the first steps of trading....

I do the same mistakes... :-/, I am impatience and
I forget to see the main trend and the development of the candles
in the 60' chart... (I don't observe others charts than the 5', 60'
and daily, a lot of information don't help me)
...and I have two monitors to see the charts.... my fault.....

Have a nice week end.

Rgs,

Textor
  • #165
  • Edited Aug 2, 2008 8:44am Aug 1, 2008 4:45pm | Edited Aug 2, 2008 8:44am
Quoting luSan

My forex strategies from my understanding of fit's teachings

Constrains:
a) Trade E/U only
b) Scout size: 2 % of account with 50:1 leverage-->
c) MM: Pyramide. Increase 1 % size @ 10% ROA increment up to min army size then need more asset. Minimum army: 20 troops

Skews:
Attack: 1-2-3
Rescue: 3-9

Biases:
Major: 1D (Safer: long term)_The trend is your friend_this is the market direction! (59)
Secondary: 1H - Counter trend (less safe:short term)_this is the market form (59)
Minor: 15M and 5M (Risky)_Trade
Best situation: 1D/1H/5M in harmony...

Trend definition: HH and HL, LH and LL (69)

Key questions:
To be done later..

1)Range Dance: Enter at both range extremes...Do not use 5M trend, capture at other extreme...rescue at will and in peace...Trade when news are not coming out...Better to trade in the 1D direction...risky: trade short above mid range and long below mid range...best for consolidations and distributions after a run...Live account

2) News breakout: Square before the news....(otherwise is gambling)...follow PA AFTER (1) news and (2) spread stabilization....This is not breakout trading...but taking advantage of news reaction...Target is as far as PA allows with consideration of ABCDE...eye on 1M...Normal fast dance...Be carefull with the pullback, second wave on the pullback if with the 1D trend...News to care: Mayor US and EU only..Live account

3) Normal dance: Track PA and execute normal dance in the 1D direction...better when volatility is > 50...Carefull attention to 15M and non-Elliot ABCDE behavior...Do not fear rescues as long as the 1D trend is in place...careful on Monday and late Friday...Most be patient...this is day trading...Best time: Whenever there is not potential major news coming.Live account

4) Overnight trade: PA on 1D trend (69)...Enter/Review: Early evening/morning... PT at 50 pips. Size: 2 %...A way of training main trend analysis skill...Separate account. DEMO only until 2x growth...

Note: Number in parenthesis refer to fti's messages.
These are my latest notes....I will keep making changes and move it to the first message eventually...or I close this journal and start another volume..
Empty as water and soft as a facing wind mountain
  • #166
  • Edited 10:31am Aug 2, 2008 9:15am | Edited 10:31am
And yes...I am going through the whole thing again...It looks even simpler this time...

You just:

1. Trade along 1D...most important trend...
2. Best scout is when 1H countertrend is finished: 1H reverting into 1D trend..
3. If wrong timing...rescue and be patient...it will come your way..as long as the 1D is true...so hold it and play music or read the paper...entertain yourself
4. When 5M confirms alighnment attack hard...5M used to manage your positions...your in and out

That's it: the rest is just timing done with 5M to maximixe profit and reduce risk...to be as water flowing in the river..

So...charts: 1D, 1H, 5M...(15M and 1M complement actions on 5M)

Easy...So why do I make it so complex...because of my own educational training...Of course, this requires timing...because you might glue to the computer through the day...and that is hard for somebody with a daytime job...(is it one of the reason why some people play with indicators? Lack of time?...is it the reason why I easily lose early morning and I recover during the day?)

Note: this is my understanding so far...oh well...this is how I learn...Actually these posts are private..._I mean: there are not warranty_but since I began posting it as a Forex Journal...then I keep to it...Anyone that read this posts shoud go to the fountain and see by themselves...
Empty as water and soft as a facing wind mountain
  • #167
  • Aug 4, 2008 4:16am Aug 4, 2008 4:16am
Patience pays..
almost pull plug but decide to be patient..

Early morning target is bed by 5..

Day bias: short as per day chart...
1. scout out
2. 2x troop out
hesitation on collection
3. 3x troop out - fail fast retrace
4. 3x rescue
Now we wait and wait and wait...
Then bingo!...reversal..took profit and to bed I go.
Profit: 0.20 % ROE
Attached Images
Empty as water and soft as a facing wind mountain
  • #168
  • Aug 4, 2008 1:56pm Aug 4, 2008 1:56pm
Today I decided to go full time...while I keep seeking for a job...
What a messy day! So many trades...so many false starts...resizing...Confusion and fear...
1) Forgot the news and I found myself agains the impulse...a real sin...I passed the whole day pain the price of this mistake.
2) Forgot day analysis...pull plug, capture some pips and reverse again to see the 1D trend bringing back PA into line...My book hurt...
3) Began more aggresive trading...and instead of losing -1.5 % I recovered most of it...loss was -0.2 %
So I should be very happy...this is the first time I trade full time and I survived the day.

Lessons:
1- Enter after clarity of trend
2- Consider what is going on with G and J - Need to think about this
3- NEVER NEVER be in during news announcements.
4- Never gave up...Remember that 1D direction will try to take over after news announcements..
5- The reason fti does not post his trades? Now I think I understand...so much is going on and he trades so fast that it would meaningless...
6. Be totally flexible and stick to the 5M even_though keep the 1D in mind...you are trading the 5M...NOT the 15M or the 1D...Se the graph above...its has 3 clear directions...up-down and up...so clear after the fact...
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Empty as water and soft as a facing wind mountain
  • #169
  • Aug 4, 2008 3:02pm Aug 4, 2008 3:02pm
Hi Lusan:

Just want to drop you a quick note. Love your journal, very clear and to the point. Yep, your science background certainly shines thru. I started trading about a month after you, so I'm as wet behind the ears as you are. Stumbled onto FTI's thread not long ago, and find his teaching quite refreshing. I personally trade mostly long term (4 hr & daily charts). Of course those trades come quite infrequently and does test my patience. On the other hand, I'm still not convinced that I want to try trading 5 min charts, but I do appreciate FTI's version of the wave theory. Right now I'm on my second reading of the his thread (whatever happened to Northpro?).

Keep up the good work, and best of luck with your job search (you really ought to get out of Albany, I visited there once and don't miss it one bit )


Cheers
Being the best loser that I can be.
  • #170
  • Aug 4, 2008 6:13pm Aug 4, 2008 6:13pm
Quoting Freestyler
Hi Lusan:

Just want to drop you a quick note. Love your journal, very clear and to the point. Yep, your science background certainly shines thru. I started trading about a month after you, so I'm as wet behind the ears as you are. Stumbled onto FTI's thread not long ago, and find his teaching quite refreshing. I personally trade mostly long term (4 hr & daily charts). Of course those trades come quite infrequently and does test my patience. On the other hand, I'm still not convinced that I want to try trading 5 min charts, but I do appreciate FTI's version of the wave theory. Right now I'm on my second reading of the his thread (whatever happened to Northpro?).

Keep up the good work, and best of luck with your job search (you really ought to get out of Albany, I visited there once and don't miss it one bit )


Cheers
thank for visiting...chemist?...by training and experience...but now more of a manager...at my level looking for a job takes a while...

Are you a chemist?...5M looks similar to a poorly calibarted FTIR spectrum...that is why I feel so confortable with the vibrational modes...it is just the same...waves theory, beautiful and elegant....and very intense...not for everybody..

Agree. FTI strategy is outstanding but very hard for those that cannot babysit their trades or are afraid of pulling the triger...1D/4H combo might be very good for those that have another job...I would use 1D for the trend and 4H to enter at the conclusion of the counter trend...of course, not stop but reviewing th trend at least twice a day....it should work...wave to wave...the sign of the infinitum...I plan to look into it because if I get a job I will have to look into different strategies...

How do you trade these time frames? Any success?

Albany? Ok if you like hiking and mountains...Got here because I worked on nanotechnology...Now we are open to almost all places but nevr CA...

Northpro is still around. Search for his name..

Regards
Empty as water and soft as a facing wind mountain
  • #171
  • Aug 4, 2008 10:12pm Aug 4, 2008 10:12pm
Hi Lusan:

I'm a member of the Jacko's group. Trading 4h charts (and higher) can be very profitable, especially if you're a trend follower. It does take a lot of patience and have to endure many "false starts" that slowly eats away your capital. Also, it would be very dangerous to not have a stop loss. Since you're not babysitting trades, the price can go against you in a hurry.

I also like to trade breakouts, based on momentum. Have you heard of the DIBS method? It's also a popular thread here, and it's based on one-hour bars.

I'm still trying to pinpoint my own temperament and experimenting with different techniques to see which one fits the best. FTI's method, goes against everything I've learned from books & other pros. Yet at the same time, one cannot deny his success and in-depth knowledge. Hence my curiosity.

By the way, I'm not a chemist. My background is in math. Although I pretty much have to drop my analytical instincts for trading. You really need to leave your brain at the door when it comes to forex, or else you end up beating yourself up all the time. Gotta stick with the basics. I have enough trouble keeping the scorpion in me in check, thank you very much.

Cheers!
Being the best loser that I can be.
  • #172
  • Edited 3:18pm Aug 5, 2008 2:24pm | Edited 3:18pm
2 important lessons

1) What to do if you have losing open positions and an important news is coming out? If you close, then your book will be hurt; if you stay you are gambling.
Answer: You hedge your positions!
Do not close the position, but trade U/CH in the same direction of you positions...Remember 1x E/U = 1.5x U/CHF

2) What to do when the market is not showing a clear trend?
You get out and wait otherwise you are gambling. You do not want to trade withoug having the trend as your friend.

No profit today. I gave my profit back because lacking of a clear plan of action when trading near to an upcoming important morning news....Now I have it...so happy.

A fantastic day! This is better than reading any forex book or listening to somebody telling you how to do it.
Rescue operations saved the book during the latest part of the day...

In case anyone want to know: my current troop size=1k units. Small enough for my life training and large enough to feel greed and fear running through my veines. I will not resize until learning slow down. Day trading is very different to my normal early morning trading because I have to deal with all the economical news and market manipulations.

Tomorrow will be another day.
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Empty as water and soft as a facing wind mountain
  • #173
  • Aug 6, 2008 10:44am Aug 6, 2008 10:44am
What a morning: No profit made even when dollar impulse was so strong...found againt the impulse and I have to innovate on the fly...

The dynamic hedging strategy...
1. You are agains the trend...do not want to pull plug...
2. Trade on the same direction an anticorrelated pairs and dynamically seek for the floor...keep bying and selling the hedge pair until the floor (if you are a risk taker, forget about the loser and dance the winning pair].
3. At the floor, when the impulse is exhausted, then you close your winning trades.
4. Rescue your loser pairs...
Outcome: if you are conservative, you will break even; if you are a risk taker, you will ride the impulse...

Warning: scary at time. You have a handle on your fear and greed and know how to rescue because on the floor you will have to move into level 2 or 3. I did twice level 2

Yesterday I was worry that I did not now how to deal with a news announcement when I was with losing positions...so I thought and that case I have an emergency. Either (1) pull the plug, (2) hedge with some other currency, or (3) gamble...I pull the plug and I saw my profit gone!

Today I found myself misreading the market...caught in a storm with 3 position open...Be a pig or experiment save your book? With 1 small scout, I would be probably a pig? With 3 going the wrong way?...bad for my book!
So I decided to test life the hedging thing. I bought U/CH because its smaller spread than G/U...

Good thing: Saved the book...I am alive to fight another day
Bad thing: Where is my profit? 90 pips and I go nothing.

I would not recommend it because it's taking with the left what the right hand has. When you were away, we discussed this issued. I tested and discarded. Somebody kept experimenting and works around this approach...
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Empty as water and soft as a facing wind mountain
  • #174
  • Aug 6, 2008 1:02pm Aug 6, 2008 1:02pm
Day split:
1) no early morning trade
2) Dynamic hedging described before
3) Normal dance a little late because of mental exhaustion of the previous hours!

Overall, I have way of dealing with losing position prior to the news-To use only for this type of situation. I found against the trend be a pig...kill you scout and trade with the trend...if many position are open then you have an emergency.

Profit: 0.3 % ROE
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Empty as water and soft as a facing wind mountain
  • #175
  • Edited 10:15am Aug 7, 2008 10:01am | Edited 10:15am
After yesterday Rollercoaster, I am altering my MO...and minimizing my posting at fti's thread...let's others take the floor with the Boss...I got enough lessons to practice for a long while...

Changing MO? one more time?...yes
I never expected day trading forex to be easy...my target this month is survival...then we'll see....these rules are not applicable if I am trading for a very brief period of time as in early morning...Original approach remains active...till changed.

So the new rules look like this

DO RULES
1) Is PA impulse or range mode?
2) Impulse? That is the trading bias
3) Range? Buy high and sell low
4) Long? buy the deeps
5) Short? Buy the highs
6) News? Wait 10 min away from computer
7) if trapped before news, U/CH hedge.
8) Be patient, Forex demands patience!
9) P/T @ end of wave....Eye on SMA(12)

DO NOT RULES
1) Avoid the news
2) Do not chase PA

Skews:
Flexible until testing these rules

Definition and comments
1) Impulse= 1D trend or, in its absence, 1H trend
2) Waves and ranges could easily last 2 hours.
3) Aggresive skew on a wave, soft skew on a range
Empty as water and soft as a facing wind mountain
  • #176
  • Edited 12:10pm Aug 7, 2008 11:46am | Edited 12:10pm
Profit= 0.6 % ROE.

Trade stopped because I was tired, probably there is more uptrend on the dollar. The premature fail is a good indication of the me -a fool- chasing PA.

This chart show the first implementation of the rules. I found that these rules are less riskier than the previous one. Note all profit obtain with only 2 entries, a third was possible but not taken. Fear of mistake...Adapting is hard, no kiddding!

News mess again -premature reaction, all trades done to save the book-, but very usefull to force me to forced me simplify. The important element are (1) the identification of the impulse direction, (2) identification of the ABCDE, and (3) not fear of intering against 5M if that is needed...This is almost a short term contrarian theory applied to Forex. It is not my idea but a destillation of what I understand from fti's lessons....I am waiting to build enough house money to become even more aggresive...so I go easy and slow.

So if I know what is the impulse direction, then winning the war is pretty mechanical. Thats is something to think about.
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Empty as water and soft as a facing wind mountain
  • #177
  • Edited 2:32pm Aug 11, 2008 8:25am | Edited 2:32pm
Profit: 1 % ROE

The Bad: too many mistakes and error entries...Concerned about the dollar retracing made distrust the day trend.
The Good: Followed my rules at time and they delivered

I am not happy with today trades...too impatient and fighting my own rules...still made today profit target so I quit for the day...my mindset is off...long or short...too unclear...so tomorrow will be another day...

Began live testing the new strategy: I left a child position open keeping company with the bulls.

Thoughts: my attack skew (1-2-3) is too risky. Fti skew is less risky (1-1-2-3-5-8). Why? Because % wise (16-32-50) versus (5-10-15-26-42), his skew has less risk at scout level and commitment happens after the direction is clear. However, then I need to commit to several trades for full army deployment...I will switch to his skew in my next campaign...Why now? Because my skew was developed for trade for 1 hour on early morning and I changed that MO...I do not believe it is good for extended trading.
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Empty as water and soft as a facing wind mountain
  • #178
  • Aug 12, 2008 8:20am Aug 12, 2008 8:20am
Reasons:
1) Today is Tuesday but little action
2) Low liquidity...high risk
3) No impulse...we are forming a dollar bearish flag...PA might become bullish at any time.
3) 1D in bull trend and 1H in bear trend...so we are in a countertrend...do I dance it?
4) 5M drifting bearish.

Conclusion:
I should dance as a quick dollar bear (with high risk), but that is against 1D and also there is low liquidity to substain any direction... I should dance a slow dollar bull (it could take hours)...Too much uncertainty...fti

Action...I am out...Read the news...go to a bookstore...in other words, I am taking the day off.
Attached Image (click to enlarge)
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Empty as water and soft as a facing wind mountain
  • #179
  • Edited 10:17am Aug 12, 2008 9:57am | Edited 10:17am
This is a very profitable E/U pattern that I have often observed in the 5M. It happens during a reversal when PA is unable to make a new high after the last high..the pullback failed...see that the bearish bar created a resistance to the pullback....of course, consider the opposite on a downtrend.

Trading strategy

  1. Enter at the highs or the lows
  2. Exit at the 30-40 from the top
  3. Skew: 1-2-3

You have 2 highs to enter in this example. Do not take profit until the bottom. Enogh for 2 trades and maybe a third one as in teh third black candle before the out region.

Comment: this is a note to myself. Trade at your own risk.

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Empty as water and soft as a facing wind mountain
  • #180
  • Aug 12, 2008 1:15pm Aug 12, 2008 1:15pm
Profit: 0.2 % ROE

Leaving the house, I checked the charts and I could not avoid doing some trading...but a terrible one...too emotional and impatient...Not very proud about it....I pulled the triger and of course...on a support level...ah...the worst place to do it; in the house of fools...Never again....

the good things was that I dance with small size...I went into the normal dance with my current standard size to save my book for the day...

Lesson: When we have a retracement, the 1H trend might be the bias.
(2) Never pull you plug on a support or resistance line
(3) Never trade if you do not have the time commitment
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