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Simple Trading Method with trader101

  • #1,761
  • Oct 4, 2008 11:22pm Oct 4, 2008 11:22pm
Quoting greenfx08
Thank you Master for taking time to answer. As you said GU and GJ repel to each other, my question is how would you trade them if GU and GJ are next to each other and while they are in the upper half region?
Since you gave the example of EU and UCHF, so I just want to have an example for the other type of pairs ( repelling pairs ).

Thank you for your generosity.
gFX
i think that if the same example of EU and USDCHF is appricable, then for example if both are in the half top and one get close by two slots (even two i think will be rare) of the other then you go short GU and buy GY.

but that the explation about direction i am confuse if there is another criterion to enter the trade for pairs that repel. Hope someone can clarify.
  • #1,762
  • Edited Oct 5, 2008 1:48am Oct 4, 2008 11:45pm | Edited Oct 5, 2008 1:48am
Quoting giraia_br
i think that if the same example of EU and USDCHF is appricable, then for example if both are in the half top and one get close by two slots (even two i think will be rare) of the other then you go short GU and buy GY.

but that the explation about direction i am confuse if there is another criterion to enter the trade for pairs that repel. Hope someone can clarify.
I think what he means is if GU and GJ are now next to each other and let say GU is on top GJ, GU will cross over GJ and continue go down while GJ cross GU and go up. And we trade accordingly to the rule :
Sell go down ---> LONG the pair
Buy go up ---> LONG the pair.
ect...
I attached a pic w/ highlight. I hope that Master T101 will confirm it.

Regards
gFX
Attached Image
  • #1,763
  • Oct 5, 2008 2:42am Oct 5, 2008 2:42am
Dear Trader101,

Please forgive my ignorance, but in post #1742, p. 117, you say
if both EURUSD and USDCHF are at the bottom half, then short EU
and long UC and if they are at the top half then short UC and long EU.
I don't understand the logic. Can you explain it to me?

Thanks,

Lenoxer
  • #1,764
  • Oct 5, 2008 4:23am Oct 5, 2008 4:23am
Quoting trader101
Hello, this is the guideline that i discuss in the last MSN meeting: Take time to learn it and it will deliver pips for you.
T101
Julius
Hi Julius
Thanks for this good explanation.
A question about the timing: do you trade as soon as you observe the jump or do you wait for a confirmation ?
Because with the Orest indy there is sometimes hourly this kind of jumps but a few time after there is a change. So the trade is bad.
Your checking is only daily or have you a particular frequency of checking to observe the jumps ?
Regards.
  • #1,765
  • Oct 5, 2008 4:40am Oct 5, 2008 4:40am
Quoting Orest
It's doable , but in separate indicator similar to those which moves in time.
It least you've got me thinking, Leo.

I think that new indicator should show current weekly, 4h, 1h buy/seel signals along with "perfect storms" all buys and sells together separated by median line. All this in history of course.
Orest
Yes, like a weather map to track the movement of the 'perfect storm--Hurricane Yoda' ! As you describe it could function as many multi-frame indicators do, showing the long, medium, and short term trends. But the trends and direction change pivot points are marked by the T101 buy/sell polarization events, rather than price relative to MA's. This will allow for confirmation and confidence in the shorter term trading and whether to expect larger or smaller profit moves because one is trading with or against the longer T101 trend.

Sounds great!

LeoM
  • #1,766
  • Oct 5, 2008 5:09am Oct 5, 2008 5:09am
Tag your it, I'm just subscribing to this interesting thread.

Thanks for expanding our trading tools Trader101...
  • #1,767
  • Oct 5, 2008 6:26am Oct 5, 2008 6:26am
Quoting brijon
i dont understand why anyone would need to keep asking questions as 101s
strategy is explained in the first 10 pages and his last post. so clearly

if you wait he will explain in debth his part 2

if you dont understand i think you never will

whynot read page 1 to 10 then look at his last explantion and his last screen snap shot

its simple , easy to understand and a great strategy

the thread becomes a mind blowing question and answer and new commers loose there way .sorting the wheet from the hay

in my opinion if sit back and let 101 move on to his next stage when we have digested only 101s post from now on we may all learn a lot more

thats my opinion

from brian
Brijon,

Hmmmm your opinion?...You know Brijon, and I mean this with all due respect, I really don't know what has got into you recently. What don't you understand Brijon? If it is explained so cleary in the first ten pages than why were you told in post #71, after your first few post here, by Trader101 himself that you had completely misunderstood the system and that you should go back to the beginning and start again! Your response is given in post #111. Never was it suggested to you that you should stop asking questions. It is also clear that you have had some further misconceptions about this simple system addressed by others since then.

It is funny, and also alarming, to observe the Kantor brigade come to this thread one by one and post their own simple questions, some of which were preceeded by a phrase like, "I'm not too sure if this has already been raised here or not", which implies that they had not even read all this thread. Yes even your own people, who appeared to have a firm grasp of your method, came her and asked very, very simple questions one-by-one regarding this simple system. I wonder what people would have thought if Trader101 had responded to each of you in this manner:

"i dont understand why anyone would need to keep asking questions... if you dont understand i think you never will".

Are you Brijon the only arbiter here? Is it you, or your people even, who decide how many questions a newbie may ask before he should understand?

Is it just me or does it seem to be the case that now, now that the Kantor group have their feet on the ground in this thread, so to speak, we run the risk of all newbies being scared off by the sacred Kantor mantra, stop asking questions, read the thread from the beginning....that's all the help we are willing to give. Prove yourself to us! Prove to us that you are worthy of our attention!

Oh brother where art thou...
  • #1,768
  • Oct 5, 2008 6:35am Oct 5, 2008 6:35am
HELLO TO ALL

It has been more than 3 weeks that this Basket Currency Trading Method (T101 System), a new and radical way of analysis in the Forex Market, that we allowed the flow of ideas and innovation from all traders around the world. I want to just highlight to everyone that this system is neither a signal system nor a trading recommendation. I am using this method as a tool in my trade analysis. At this point in time, I think we have also come into the conclusion that the “Orest Indicator” is a perfect replacement to the IA and the Franco’s Excel Sheet which were introduced earlier in the thread. Some of you that are using broker that do not use MT4 platform, you still have to use the IA and the Franco Sheet in your analysis.

At this point, in order to move forward and give time to concentrate on trading either demo or live, we have to stop fixing the unbroken. The Orest Indicator as it now stand version 11 is the last revision I will adopt. Though there is still a flaw when use with broker having a non-consistent pair digit (FXpro) is almost in perfect to what I want in an indicator and sheet combine. The columns of month, week, day, 4H and 1H, give an almost accurate indication for a trade to be profitable. This digit function flow is being fixed right now as we speak and eventually will be presented by Orest or by Dee.

If you think you are in disagreement with me on this conclusion and wants to further explore the changing of Orest Indicator or have the any idea to change the parameters of this thread, I am not preventing you from doing so, however I would say, you have to start another thread in either the Trading Discussion or Interactive Trading. I will visit you there once in while, similar to what Carl have done with his pursuit to improve his T101 IA monitor. Honestly, guys it is perfectly alright with me. This week I am trading and will only read good results in this thread and no more indicator discussion please. PM the one concern to avoid confusion in the thread.
Thank you,
T101
Julius
  • #1,769
  • Oct 5, 2008 6:53am Oct 5, 2008 6:53am
Quoting trader101
HELLO TO ALL

It has been more than 3 weeks that this Basket Currency Trading Method (T101 System), a new and radical way of analysis in the Forex Market, that we allowed the flow of ideas and innovation from all traders around the world. I want to just highlight to everyone that this system is neither a signal system nor a trading recommendation. I am using this method as a tool in my trade analysis. At this point in time, I think we have also come into the conclusion that the “Orest Indicator” is a perfect replacement to the IA and the Franco’s Excel Sheet which were introduced earlier in the thread. Some of you that are using broker that do not use MT4 platform, you still have to use the IA and the Franco Sheet in your analysis.

At this point, in order to move forward and give time to concentrate on trading either demo or live, we have to stop fixing the unbroken. The Orest Indicator as it now stand version 11 is the last revision I will adopt. Though there is still a flaw when use with broker having a non-consistent pair digit (FXpro) is almost in perfect to what I want in an indicator and sheet combine. The columns of month, week, day, 4H and 1H, give an almost accurate indication for a trade to be profitable. This digit function flow is being fixed right now as we speak and eventually will be presented by Orest or by Dee.

If you think you are in disagreement with me on this conclusion and wants to further explore the changing of Orest Indicator or have the any idea to change the parameters of this thread, I am not preventing you from doing so, however I would say, you have to start another thread in either the Trading Discussion or Interactive Trading. I will visit you there once in while, similar to what Carl have done with his pursuit to improve his T101 IA monitor. Honestly, guys it is perfectly alright with me. This week I am trading and will only read good results in this thread and no more indicator discussion please. PM the one concern to avoid confusion in the thread.
Thank you,
T101
Julius

thank heavens for that, i can now settle on the latest indicators/scripts to be used,(which ever they be)
  • #1,770
  • Oct 5, 2008 7:15am Oct 5, 2008 7:15am
Hello Julius,

I am one of the many "silent traders" in your thread.
Thank you for the fantastic method.
I am trading the basket method live with a great success.

Also, thank you to all programmers for their hard work.
You guys are amazing.

Regards,

Pluto2
  • #1,771
  • Oct 5, 2008 7:20am Oct 5, 2008 7:20am
Thanks Julius for your last post, it has been clear. That is what everybody wants, simple things, simple posts. Please, to everybody, we owe this respect,deference, to Julius. Don´t try to complicate this. See "The beauty of Simplicity" and everybody will be happy


Sorry if too much philosophy.:nerd:
  • #1,772
  • Oct 5, 2008 7:21am Oct 5, 2008 7:21am
Juluis,
I appreciate the goal of allowing this thread to focus more on sharing trade applications of the basic method. I'll follow Orest's lead in terms of pursuing further discussion and development of his current indicator in another parallel thread. I'll pm him about the subject.

Thanks again for sharing your strategy for analysis of the FX market and good luck to all of us in making the pips with the T101 System!

LeoM

Quoting trader101
HELLO TO ALL

It has been more than 3 weeks that this Basket Currency Trading Method (T101 System), a new and radical way of analysis in the Forex Market, that we allowed the flow of ideas and innovation from all traders around the world. I want to just highlight to everyone that this system is neither a signal system nor a trading recommendation. I am using this method as a tool in my trade analysis. At this point in time, I think we have also come into the conclusion that the “Orest Indicator” is a perfect replacement to the IA and the Franco’s Excel Sheet which were introduced earlier in the thread. Some of you that are using broker that do not use MT4 platform, you still have to use the IA and the Franco Sheet in your analysis.

At this point, in order to move forward and give time to concentrate on trading either demo or live, we have to stop fixing the unbroken. The Orest Indicator as it now stand version 11 is the last revision I will adopt. Though there is still a flaw when use with broker having a non-consistent pair digit (FXpro) is almost in perfect to what I want in an indicator and sheet combine. The columns of month, week, day, 4H and 1H, give an almost accurate indication for a trade to be profitable. This digit function flow is being fixed right now as we speak and eventually will be presented by Orest or by Dee.

If you think you are in disagreement with me on this conclusion and wants to further explore the changing of Orest Indicator or have the any idea to change the parameters of this thread, I am not preventing you from doing so, however I would say, you have to start another thread in either the Trading Discussion or Interactive Trading. I will visit you there once in while, similar to what Carl have done with his pursuit to improve his T101 IA monitor. Honestly, guys it is perfectly alright with me. This week I am trading and will only read good results in this thread and no more indicator discussion please. PM the one concern to avoid confusion in the thread.
Thank you,
T101
Julius
  • #1,773
  • Oct 5, 2008 7:51am Oct 5, 2008 7:51am
Now that julius, has laid down the rules, could someone please list the final versions that should be used on ibfx,
  • #1,774
  • Oct 5, 2008 8:21am Oct 5, 2008 8:21am
Hello everyone,

I would sugest that those who understand system, for period of time..., post screen shot and comment what they trade or intend to trade and why based on 101 rules and 101 indicator(s)....

On this way rest of us who still dont understand strategy and system of 101 would learn by examples and in same time those who understand wouldnt be bothered with questions like " how it works" and would continue to advance....


regards,

mima
The Market pays you to be disciplined
  • #1,775
  • Oct 5, 2008 8:25am Oct 5, 2008 8:25am
Quoting mima
Hello everyone,

I would sugest that those who understand system, for period of time..., post screen shot and comment what they trade or intend to trade and why based on 101 rules and 101 indicator(s)....

On this way rest of us who still dont understand strategy and system of 101 would learn by examples and in same time those who understand wouldnt be bothered with questions like " how it works" and would continue to advance....


regards,

mima
I second that request...thanks!
  • #1,776
  • Oct 5, 2008 8:47am Oct 5, 2008 8:47am
Quoting mima
Hello everyone,

I would sugest that those who understand system, for period of time..., post screen shot and comment what they trade or intend to trade and why based on 101 rules and 101 indicator(s)....

On this way rest of us who still dont understand strategy and system of 101 would learn by examples and in same time those who understand wouldnt be bothered with questions like " how it works" and would continue to advance....


regards,

mima

Hi mima,

i think is a great idea. I am in the beginning of understanding the system, Meanwhile it would be good for you (for me it has been) to read again and again the resume made by icicle, posted in post number 1730. He has make an excellent work like others do here.

  • #1,777
  • Oct 5, 2008 8:47am Oct 5, 2008 8:47am
I agree with the above. All too often there are post saying things like "just took long trade, now x pips up". This dilutes the thread. We need everyone to include as much info as possible Including screen shots and all the reasons they took the trade, especially how they used the indicator, highlighting exactly what the pairs did and what tf the action was in.

It would also help in everyone making sure that we are all looking at the same charts. If we all have uncertanties about wether even our Indys are right then we will never nail this and move on.

A picture says a thousand words.

We need quality not quantity in our posts.

We need to make sure we are all singing from the same song sheet.

That's what I think any way

Regards Paul
  • #1,778
  • Oct 5, 2008 9:45am Oct 5, 2008 9:45am
But I had to say I just attached orest 1.11 (the latest)....
It's Beautiful....Between Julius and you all I can say is I am not worthy!!!
Thank you Thank you Thank you!
  • #1,779
  • Oct 5, 2008 9:47am Oct 5, 2008 9:47am
Ok....

I found an annoying factor of this method was the inability to back test so having some spare time on the weekend I started creating a tool that will allow us to back test this system, thinking I would just whack it up in a few minutes .....

10 hours later! I finished this little project and I don't know how much use it will be to any of you guys but seeing it took me so long to make I just had to share it...

Quite simply its an excel spreadsheet that shows the "jumps" the pairs make at the time intervals you choose so you can look back at a whole weeks action...

Anyway I created an instructions manual with screenshots of each step only to realise it was to big to post here so I have taken the screen shots out of the instructions so its small enough to post.

I guess if you PM me I can sent the photo instructions if you need them but anyway try to make sense of the plain instructions first.

Attached is the Excel blueprint plus the Microsoft word instructions which you will need to read in order to use it.

Let me know what you think and if theres any wizz kid out there who knows a way to export the data we want straight to the spreadsheet without having to manually add it Id love to hear it.

Enjoy
Attached File(s)
File Type: doc Trader101 Back testing Spreadsheet 2.doc   40 KB | 4,508 downloads
File Type: xls Blue Print.xls   531 KB | 2,081 downloads
Time hides Nothing
  • #1,780
  • Oct 5, 2008 10:13am Oct 5, 2008 10:13am
For those of you who are still struggling to understand the system, I would suggest that you just turn off your monitor (after you read this post) and just think about what we are doing when we trade the basket. Since I use IBFX as my broker, I will refer to the 14 hedged pairs that Julius has picked out.

Sit down with a pad of paper and something to write with, grab a cup of coffee (or a beer) and write out your 14 pairs (7 buys and 7 sells). If you BUY "the basket", what would you be buying? Your answer is probably: 14 currency pairs that Julius picked out for some reason. To that answer I would say your are correct. But drill down one more level. We know that when we buy a currency pair, its not like buying stock or a commodity - where you are just betting that the price will go up...instead, you are betting that the price of the first (base) currency will go up, and at the same time that the second (quoted) currency will go down, right?

Thus, if you use IBFX, you would be buying the base currency of each of the 14 pairs, which are:

4 lots of EUR
3 lots of GBP
2 lots of NZD
2 lots of AUD

2 lots of USD
1 lot of CHF

If, on the other hand, you wanted to SELL "the basket", you are doing exactly the opposite....ie. selling the above group. But here's the catch. In doing this, you are in effect buying the quoted portion of each of the 14 pairs...which you do buy Selling the pair, right? Think of it this way...if you are buying the basket, you are buying the first (base) currency of all 14 pairs. If you are selling the basket, you are buying the second (quoted currency of all 14 pairs. Just write out all 14 pairs, vertically (from top to bottom) and draw a line going UP through the first currency and write buy, and draw a line going UP through the second (quoted currency) and write Sell.

So if you SELL the basket, you are betting on the following going up:

6 lots of JPY
4 lots of USD
3 lots of CHF

1 lot of GBP.

Assuming you are still with me, and/or that you agree with my analysis so far, isnt the IBFX basket hedge really just playing the EUR, GBP, NZD, and AUD against the JPY, USD, and CHF? As I see it the 1 lot of CHF and 2 lots of USD in the first group are just balancing out the pairs, just as the 1 lot of GBP in the second group is a balancer...you are not really worried about them. They are just there to balance out the group. You are really trading (or betting on) GROUP 1 against GROUP 2....ie. EGNA v. JUC (see above).

Note also the extra dimension of the weighting of the basket. GROUP 1 is dominated by EUR (4) and GBP (3). NZD and AUD are highly correlated and usually move together compared to the other bunch, so you can almost look at them like a team.

GROUP 2 is dominated by JPY (6) and USD (4), followed by CHF(3). So if you really think about it, although its not perfect, GROUP 1's leader is EUR and GROUP 2's leader is JPY. And these are not leaders that sit back and watch their armies fight. These are leaders that get up and do most of the fighting themselves. So in a very real sense, we are pitting EUR v. JPY when we trade the IBFX basket, no?

Perhaps some of you will be even more confused by my analysis above. For me, it was critical to even understanding how to trade the system, because I could not grasp it until I broke it down this way. I would guess that you can successfully trade the system without knowing any of this. But at the same time, I think there is alot more theory to be uncovered that will allow us to fine tune our own approach, for instance, by drilling down into the individual pairs (which Julius has recently started to do) and analyzing how and why they attract or repel each other.

For instance, I would think that the relationship between EUR/USD and USD/CHF is very different than the one between EUR/USD and EUR/JPY. Julius said EUR/USD and USD/CHF are like husband and wife. I love that! Although I am not 100% sure about this yet, my guess is that the consequence of this relationship is that you may never see these 2 pairs occupying opposite anchors because they are a nearly perfect balance and could not do so, because the anchors do not reflect balance, but rather, the respective strongest BUYs (when you are long the basket) and the strongest SELLS (when you are short the basket). Rather you will more often see them tagging along, and moving apart (one at anchor and the other near the 0 line), as they are the most perfect negative correlation we have in forex. This may not seem all that important yet, esp. to basket traders, but if you are trading the tandem method, you should probably start to get your brain around this concept.

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