Fibonacci Trading with Bobokus

Quoting Shermenator

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Decided to trade the larger time frames today...I am up 40 pips on usd/jpy

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Quoting islandtrader

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short gu on break of Intraday short at 1.8295

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Quoting hiswords

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Whatz cooking today,seems our friend cable wants to do us the way it's been doing for days now.Sherm! are u still holding on?

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Quoting katarche

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Finally got there with help from positive USD news.
Sold at break of Intraday short level after retrace into wholesale zone.
This is a 5 min chart.
Have a good weekend...

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Quoting big_pipin

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Also does anyone here use fib fans, and do you find they work as well as fib retracements do?

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Quoting big_pipin

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kat, how did you not get stopped around 8319? HOW wide was your stop?...and r/r ratio?

thanks

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Quoting katarche

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Hey bp,
fair question.
The thing i love about Bo's thread is that he gives us a structure to trade within, but encourages individual approaches - the mark of a seasoned trader.
I am really grateful for this wise tuition.
So as i understand he doesn't use hard stops but lets price action dictate the plays.
My plan on this trade:
Hard stop above swing high @ 1.8342 (which is also just above intraday long @ 1.8338) - this is a worst case scenario to protect against sudden adverse moves like we had recently due to oil prices or other news.
Then I watch price action around swing long @ 1.8310
If it sticks above there I'm out before hard stop is hit - let's say 1.8325 or so.
My profit target is based on swing T1 @ 1.8227. This might vary depending on where Intraday targets are or perhaps scaling out at swing T1/T2 etc.
So risk reward: personally I can accept as low as 1:1 if the win loss ratio is high enough. If stops are set too close you can really reduce your win/loss ratio as volatility takes you out over and over again... or if profit targets are too ambitious you never get paid.... My position size is set accordingly.
In this case with entry of 1.8285, target of 1.8230, and discretionary stop of 1.8325 it's a risk of 40 pips to get 55 pips.
If I had traded to Intraday TP1 @ 1.8180 it would be risk of 40 pips for profit of 100 pips.
I'm only trading the short side because bigger fib levels are all short.
Also I waited for resistance in the wholesale zone to be tested by retracement before entry. Then entered below swing short level @ 1.8291 - trying to put the probabilities in my favour.
At present I'm using Bo's principles on other majors as well and only taking trades that are first with the trend of larger fibs, then signalled by intraday levels, and finally triggered from swing levels as demonstrated in this trade. Trying to avoid scalping against the trend.

Having been long winded about it, you're absolutely right - not a great risk reward ratio and lucky to get a break from the news which could have gone the other way and stopped me out. But it was a calculated risk that played out this time. I have been listening up to Bo's advice about getting over the fear of losing, and continuing to practice with backtesting in Vhands and forward testing in real time.
This week, working with my own implementation of Bo's ideas and methods I am trading less but winning more. Thanks to his persistent reminders to wait for the right opportunity, trade the plan, take your money and move on. This was my only trade today.

Thanks to others for sharing and to Bo for generous assistance.
BTW looks like I was wrong about 1.83 as support - now it could become resistance ... market rules as always!

happy holiday - new month to come.

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Quoting Bobokus

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This is what it all about, I cant necessarily teach people to actually trade all I can do is show you how the tools work, how I used them and how they can aid in your trading the rest is up to the Individual trader, some traders are high risk go for broke traders others are calculated and more structured but both trading the same type method will approach it completely different even though they use the very same tools and methodology. Some will be very successful some may never be able to trade it successfully at all. Everyone has to find what works for them through trial and error its just human nature. Its the same thing I tell my students, you have to get to the point where instead of thinking what would Bo do here, where would Bo enter or exit, instead you need to think without second thought I enter here and exit here according to my trading plans, you build confidence in doing this through constant backtesting forward testing and realtime trading because over time and the experience built up from doing this you know from your experience gained where they are without help from anyone or any method other than what you develope all on your own. At that point youve almost got it whipped. I encourage everyone to continue to use what they have found success with. I can tell you from my experience that the less you use the better off your going to be. Me I only need very few things anymore other than the tools Ive developed on my own and over time neither will any of you, it will just come natural.

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Quoting Bobokus

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On this instance I entered on the 1st candle to open beyong the Intraday long fib..it was short lived though the trendline held again and price began to plummet.I was counting on the trendline breaking on the second attempt but it held again and i let it run against me for about 20 pips and closed the long, I reversed my position then ,since we moved back into the trading zone...counting on it to test the lower end or the Intraday short fib, it did i also added another short position at that point counting on the Intraday short fib to give way but it held and left a reversal candle so i had to close all 3 shorts at that point and played the reversal back to the Intraday long fib where i have shorted the failure there again counting on the Intraday short fib to give way again.

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