The Daily Fozzy Method

Quoting colbru

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That is what I've found...
willf:
All pairs are set up as model 1&3 with the exception of EURCHF & EURGBP.

Mhh... sorry for my ignorance but I do not understand 1&3...
do you mean I have to apply the indicator 2 times? once with model 1 and once with model 3...?

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Quoting RemingtonTJ

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Hello
i try to follow the Fozzy method which seems to be a great system. Could someone post a chart or a statistic e.g. with his/her signals in EURUSD or another pair. The signals that i get with my datafeed come in a false way or come one day after the signals that are mentioned here in this threat. Or I am applying the method in a wrong way.

Thanks Till

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Quoting MikeC

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Remington,

It depends on what time your broker or server closes the candle for one and opens a new one. This would explain why you might get a signal at a different time than another trader. Attached is what my EurUsd Chart looks at at the time of posting, 8:45pm EST.

http://www.forexfactory.com/attachme...1&d=1171503898

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Quoting RemingtonTJ

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Hi MikeC Thx for your answer
so Metatrader is the prefered trading platform here ? Could you tell me with what broker most of you are trading ? Is it FXDD ?
I am using Tradestation and that's where I get the different signals.
Till

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Quoting jtrade

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RTJ,

I use TS8 and instead of a Daily candle, I use a 1440min intraday candle set to a Custom Session time (because you cannot customise the session for Daily bars; 1440 minutes = 1 day).

In my case, the 1440min candle is set to begin at 0900CET for the highly esoteric reason that I return from taking my 6 yr old to school at around 0855.... it's my opinion that over the course of a year, start time is not significant, as long as you keep it close to one of the major session start or end times. Trading is all about establishing a viable rule set(s) that fits your lifestyle and personality (otherwise you will never trade consistently), then sticking to it.

Very simple, but not at all easy.

J.

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Quoting coolshades

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is it just me or the roller coaster of the last 3-4 weeks hasnt stopped yet..

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Quoting willf

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Lol. Anyone feel sick and wanna get off

Been annoying. Just hang on in there. Backtests show that in the longterm we will come out on top.

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Quoting RemingtonTJ

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hi jtrade
yes thought of somethin similar, maybe with cutting the Asian market out of the candle.

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Quote

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the major problem for me is,
that I've read through this whole topic, and visually from the chart think Fozzy is a good system, but don't manage to program a strategy in TS that delivers positive results when back-testing
so either my programmed strategy in TS doesn't function the way Fozzy is traded or the discretionary elements are more important.

Quoting fozzy

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Hi Sid,
To use the ATR as a S/L simply take the ATR value and set your S/L accordingly. So in your example of USD/CAD your stop loss would be 23 pips.

Cheers

Fozzy

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Quoting jtrade

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Hi, Till,

Just to clarify - I leave the Asian session in, ie. I don't end the day with the NY close and then start again at 0900CET. I end at 0858CET. This will not affect the setup, but it could affect the trigger.



You raise an excellent point about the value of backtesting. For some, unless a strategy can be fully backtested to a satisfactory result, it is invalid. However, this means the strategy must be 100% mechanical and fully automated. I expect you have already seen that over on the Fozzy EA thread there are people trading Fozzy this way.

You will also have read on this thread that BeachBum, willf & others have avoided some trades because of proximity to the Vegas tunnel, price stuck in a range & other reasons, so they are trading their versions of Fozzy succesfully with discretion. I use other filters, including the MTP Decision Point module, and I am very picky about trades.

I have several good trading methods, including Fozzy, for which I have TS strategy code. None of them test well with full automation, ie. they all need discretion. Some would dismiss these systems accordingly. I have developed a fully-automated Fx system in TS, but I am waiting for FX automation in TS8.3 (I'm on the beta tester list, so should receive it soon) before I start trading it with real money (I could trade fx futures now, but the system scales out of 3 lots & 3 full-size futures contracts per market is too much size right now).

So the decision we all have to make is as to whether we want to deal with discretion or not : we've all read the reasons for a fully mechanical approach. It should make it easier to be consistent and execute 100% according to the system rules (although it's not an absolute guarantee) & this in turn should make it easier to trade multiple markets in mutiple timeframes if required. On the other hand, a good discretionary trader should be able to trade profitably with considerably less drawdown.

Everyone has to find this answer for themselves & there's no substitute for hard work, which often seems to involve endless hours of going round in circles of "silent desperation" (to quote Pink Floyd !).

I think it's good to have both.



J.

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Quoting zzz

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hi all, just finished reading all zillion pages.
i have a question for BB: you have ATR of 260 on your chart. i would guess it gives you an average true range for a year. how you use it? or this is just for a general feel of the range?
thanks.

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Quoting zzz

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thanks howard,
i think it is trickier than that: from what BB briefly mentioned in one of his posts, he uses it somehow to figure out of how much of possible retracement is left, if the trade first goes against you, but then reverses in the disired direction.
i also has a feeling that he did a huge ammount of backtesting in Excel. Before plugging in numbers myself and spending hours of Excel calculations, i thought i could use a snick pick at where he is, if he is willing to share, of course.
The fact that he is successful with so many pairs tells me that he figured many small things that he never mentioned in his posts. Starting today i am going to do my own research, it is not that i am lazy, just was curious of what he discovered, say for GBP/USD.
Maybe somebody else is willing to share? For example, information regarding of how mmany pips it retraces on average before turning back, the percentage of turning back against not turning back etc. This sort of things. Just doing F12 is only a part of a picture.
thanks.

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