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The Daily Fozzy Method

  • #1,721
  • Mar 2, 2007 5:54am Mar 2, 2007 5:54am
will, i am sure this is a stupid question.. when your trades carry over to the next day, do you change the s/l, and t/p to the levels of that day? or retain the value of the day of the trade? for eg:

USD Cad current price is 1.1754:

is s/l moved to today's 0.7*ATR(20) at close of day or you keep the s/l at 0.7*ATR(20) as on 28th feb, which was when i think you took the trade...

and also whether you do the same with tp.




"I now use ATR as my stop and I adjust them at the end of the day. I only move them if the trade goes in my favour. If the trade is going against me I leave the stop where it is. Generally one the first TP is hit I can the adjust the stop and lock in some profit on the second TP."
  • #1,722
  • Mar 2, 2007 7:58am Mar 2, 2007 7:58am
  •  Trader#0000
  • | Status: Unregistered Trader
Quoting JokersWild
That's interesting~ Definetly needs some study. I Don't like a Short GBP at the moment. Today's candle is anything but a Sell

My post #1717 refers.
This indic is very powerful.. it showed us clearly 2 days ago that the GBP is going down.

I trade what I see
Attached Image
  • #1,723
  • Mar 2, 2007 8:11am Mar 2, 2007 8:11am
  •  Trader#0000
  • | Status: Unregistered Trader
The candle of Wednesday 28 Feb was a hanging man ... which means bearish and normally occurs after a up trend. That is exactly what has happened, as we had an uptrend before.

Also have a look at the daily GBP candle of Dec 4 ( hanging man) ... Candle formations are powerful tools to help us forcast what is to come.

Techincal analysis works... it pays to study techinals.

Good luck
  • #1,724
  • Mar 2, 2007 11:07am Mar 2, 2007 11:07am
IT is nice to wake up and see green......I shorted the Gpb also on that cross....I also took the previous crosses on the eur/jap and usjap........and long on uscad........ there really is something to this system......
I am a believer ......

Living the dream
Indreamer
  • #1,725
  • Mar 2, 2007 12:11pm Mar 2, 2007 12:11pm
Quoting fresian
Willf,

Just hoping you could clarify something for me. Are you still leaving your initial S/L in place still until your 1st T/P is hit or do you do some trailing there as well? And are you using 1xATR.

Thanks..
I use 70% of a ATR(20) as my stop. As the trade goes in my favour I adjust the TP on both. If the trade goes against me I leave the stop where it is.

I do this on both lots until either they hit the TP or get stopped out.
  • #1,726
  • Mar 2, 2007 12:18pm Mar 2, 2007 12:18pm
Quoting coolshades
will, i am sure this is a stupid question.. when your trades carry over to the next day, do you change the s/l, and t/p to the levels of that day? or retain the value of the day of the trade? for eg:

USD Cad current price is 1.1754:

is s/l moved to today's 0.7*ATR(20) at close of day or you keep the s/l at 0.7*ATR(20) as on 28th feb, which was when i think you took the trade...

and also whether you do the same with tp.
If the trade moves in my favour I adjust both the ATR and the TP.

So yes my USDCAD was opened on the 28th has been adjusted twice to take account of the move. As yet the neither TP has been hit but by the end of the day (at the current price) I will move the stop to around 1.1707 and move the TP levels up. This will give me at least 2x33 pips profit.

By doing this rather than my previous way of leaving the stop until the first TP was hit I can lock in some pips should it not reach the TP.
  • #1,727
  • Mar 2, 2007 12:20pm Mar 2, 2007 12:20pm
You're smokin' hot dollie- you're dynamic indicator is superior to my fozzy- changing the ma to a 5period works for me as seen on the us/cad


A Tribute-

Inserted Video



Quoting HelloDollie
My post #1717 refers.
This indic is very powerful.. it showed us clearly 2 days ago that the GBP is going down.

I trade what I see
Attached Image
T
  • #1,728
  • Mar 3, 2007 11:06am Mar 3, 2007 11:06am
Hello everyone.......

After being away from FF and trading for almost six weeks, it's nice to be back. I've enjoyed reading all the posts that were made while I was gone; many here have done very well with this method and I'm anxious to get back to trading with the Daily Fozzy.

I apologize to those whose questions I missed, but it looks like others have stepped in to answer for me. Thanks!

To zzz in post #1678: you are very discerning. IMO, the best way for a trader to become familiar with, comfortable in using and achieve profitability with a given system, is to do research and backtesting with that system. They can then make that system their own. I have in the past provided what I believe is significant direction for the benefit of those who are willing to do the "homework". Stop loss selection using average retracement values, ATR useage, using Vegas Daily Tunnel and fib levels for T/P values as well as trade decisions, Solar Wind, trend direction...............these are just a few of the things I have commented on and offered observations about. Anyone who spends the time working with these and other indicators along with the Daily Fozzy Method will become familiar with what works best for them and most importantly WHY something works! I could post a multitude of charts, figures and analysis results that I have complied and used as a basis for developing my own Fozzy trading method and style. But I think this would be a dis-service to others. In the long run, it really wouldn't provide what a serious trader needs to be successful. In the early days of this thread, I used the analogy of teaching someone how to fish versus providing them with fish(if I remember correctly, this was not very well received by the person questioning me). But I stand by that position and will continue to post whatever I believe is useful in helping others to be better fishermen(women). Others at FF have helped me in that way, so I will be trying to give something back.
  • #1,729
  • Mar 3, 2007 12:35pm Mar 3, 2007 12:35pm
Welcome back dude
  • #1,730
  • Mar 4, 2007 9:10am Mar 4, 2007 9:10am
Welcome Back BB.
Taking Life One Pip At A Time I officially have my own opinion.
  • #1,731
  • Mar 4, 2007 10:07am Mar 4, 2007 10:07am
Welcome back Beach,
Amen to all that U have just posted. I post to another thread and meet with the same responce from people who just don't want to do the work necessary to be a successful trader. Like everything else in this world if you don't work for it its pretty much unappreciated. I am a firm believer in Traders helping Traders but its like read the instruction manual which is all the post that have come before and you can cut your learning curve in half.

Thanks and again welcome back

Bill
"When there is no peril in the fight there is no glory in the triumph."
  • #1,732
  • Mar 4, 2007 10:20am Mar 4, 2007 10:20am
willf, MikeC & williamk.....

Thanks very much for the warm welcome! It feels good to be back at FF.
  • #1,733
  • Mar 4, 2007 9:28pm Mar 4, 2007 9:28pm
Hi fozzy, willf, BB et al!

I really want to express my thanks to all of you - especially fozzy for sharing his system in the first place. When I joined FF, I read the fozzy thread with some interest, mainly because I am a fellow aussie, but found it way to boring for my trading style (or lack of !). What! Only a few trades a week!! You're kidding aren't you! At the time I was hopping from system to system and trading like I was playing one of those old C64 games - the faster you click the button the faster you go! After blowing I think 5 demos I have that out of my system!

I have now developed my own fozzy variation, with heaps of help from willf's posts that I am beginning to feel that I actually "own".

I want to share some things I have discovered, whether this is due to fozzy or just a natural progression I don't know:

1. Support and Resistance - I now draw yearly and monthly support on my daily. Also, for some reason I had an obsession with drawing triangles and pennants only, and was missing important horizontal SR levels. I've found this very useful in setting SL and TP. Actually, I'm thinking of getting rid of the Vegas fib levels I'm currently using, as the SR lines seem to be more important, or coincide with the levels anyway.

2. Set and adjust my TP (and hence your SL) according to the trend. I can take a trade against the major trend, but cannot, ofcourse, expect the same sort of movement. When I'm with the trend, don't close a trade simply because it reaches 20, 50, 100, etc pips, have a reason.

3. Risk/ Money Management - I am still a little slack with this (I think it is because I'm on Demo), but I'm a lot better than before. I'm always aware of the risk of a particular trade now. Currently I've been risking around 4%. I stay out of low RR trades.

4. Set a time limit to analyse and watch the charts. Once I know what I believe is going to happen, I need to make my decision and then leave it. This allows my trades to "breathe" without me freaking out, makes me stick to my SL, and lets my profits run. I would like to get this down to 1 hr a day, maybe 30 minutes in the morning (GMT 0) and again in the late evening. I believe this is vital for part time traders. I have, and still do sometimes, watched the charts and/or read FF posts all day. This has no benefit to my trading AT ALL. What it does do is make my neck, back and eyes sore, negatively affect my energy and general health, causes me to neglect daily house/ life chores, and above all frustrates my wife no end. I NEED TO WORK ON THIS.

Please comment on any of the above - I may be wrong and am wanting to learn all the time.

Having said all this, I would like to know if the last couple of weeks have been particularly good for people using fozzy? I have grabbed around 450-500 pips since 21/02 (8 trades, 1 loss, 7 wins) and that was with being away and missing the UJ move on the 27th. This seems a little too much, and was wondering how other long term fozzy traders have been doing.

Anyway, sorry for the massive post, I'm on a bit of a high I guess. I'm sure the market will bring me down to earth again soon.

Thanks again!!
  • #1,734
  • Mar 5, 2007 7:35am Mar 5, 2007 7:35am
Hello grrowler...

Congratulations on your "Fozzy" successes!

My position has long been that if a person takes a basic system/method, makes it their own and succeeds, they are doing the right thing. It seems you have accomplished just that. My suggestion is to stick with your own personal version of the Fozzy method without deviation unless you can prove to yourself there is a need to change something, but it doesn't appear that will be necessary. I "DO" believe you should spend less time in front of the computer screen. Many of us started out trading on 5 minute charts, so we spent 12 hours a day staring at a monitor. Not anymore! Read relavent info here at FF (don't waste time with all the "prattle"). Trade smart with "Fozzy". Spend some time each day researching and testing and then get those "chores" done.....lol!

Quoting grrowler
Hi fozzy, willf, BB et al!

I really want to express my thanks to all of you - especially fozzy for sharing his system in the first place. When I joined FF, I read the fozzy thread with some interest, mainly because I am a fellow aussie, but found it way to boring for my trading style (or lack of !). What! Only a few trades a week!! You're kidding aren't you! At the time I was hopping from system to system and trading like I was playing one of those old C64 games - the faster you click the button the faster you go! After blowing I think 5 demos I have that out of my system!

I have now developed my own fozzy variation, with heaps of help from willf's posts that I am beginning to feel that I actually "own".

I want to share some things I have discovered, whether this is due to fozzy or just a natural progression I don't know:

1. Support and Resistance - I now draw yearly and monthly support on my daily. Also, for some reason I had an obsession with drawing triangles and pennants only, and was missing important horizontal SR levels. I've found this very useful in setting SL and TP. Actually, I'm thinking of getting rid of the Vegas fib levels I'm currently using, as the SR lines seem to be more important, or coincide with the levels anyway.

2. Set and adjust my TP (and hence your SL) according to the trend. I can take a trade against the major trend, but cannot, ofcourse, expect the same sort of movement. When I'm with the trend, don't close a trade simply because it reaches 20, 50, 100, etc pips, have a reason.

3. Risk/ Money Management - I am still a little slack with this (I think it is because I'm on Demo), but I'm a lot better than before. I'm always aware of the risk of a particular trade now. Currently I've been risking around 4%. I stay out of low RR trades.

4. Set a time limit to analyse and watch the charts. Once I know what I believe is going to happen, I need to make my decision and then leave it. This allows my trades to "breathe" without me freaking out, makes me stick to my SL, and lets my profits run. I would like to get this down to 1 hr a day, maybe 30 minutes in the morning (GMT 0) and again in the late evening. I believe this is vital for part time traders. I have, and still do sometimes, watched the charts and/or read FF posts all day. This has no benefit to my trading AT ALL. What it does do is make my neck, back and eyes sore, negatively affect my energy and general health, causes me to neglect daily house/ life chores, and above all frustrates my wife no end. I NEED TO WORK ON THIS.

Please comment on any of the above - I may be wrong and am wanting to learn all the time.

Having said all this, I would like to know if the last couple of weeks have been particularly good for people using fozzy? I have grabbed around 450-500 pips since 21/02 (8 trades, 1 loss, 7 wins) and that was with being away and missing the UJ move on the 27th. This seems a little too much, and was wondering how other long term fozzy traders have been doing.

Anyway, sorry for the massive post, I'm on a bit of a high I guess. I'm sure the market will bring me down to earth again soon.

Thanks again!!
  • #1,735
  • Mar 5, 2007 8:05am Mar 5, 2007 8:05am
Hi, grrolwer,
Quoting grrowler
1. Support and Resistance - I now draw yearly and monthly support on my daily. Also, for some reason I had an obsession with drawing triangles and pennants only, and was missing important horizontal SR levels. I've found this very useful in setting SL and TP. Actually, I'm thinking of getting rid of the Vegas fib levels I'm currently using, as the SR lines seem to be more important, or coincide with the levels anyway.
I also am more interested in horizontal S/R and have taken off my fib bands (but I also use MTP Decision Points).

Quote
3. Risk/ Money Management - I am still a little slack with this (I think it is because I'm on Demo), but I'm a lot better than before. I'm always aware of the risk of a particular trade now. Currently I've been risking around 4%. I stay out of low RR trades.

I encourage you to give this area max focus. Don't delay trading real $ longer than you have to : even if it's microlots, it will add a whole new dimension.

Quote
4. Set a time limit to analyse and watch the charts. Once I know what I believe is going to happen, I need to make my decision and then leave it. This allows my trades to "breathe" without me freaking out, makes me stick to my SL, and lets my profits run. I would like to get this down to 1 hr a day, maybe 30 minutes in the morning (GMT 0) and again in the late evening. I believe this is vital for part time traders. I have, and still do sometimes, watched the charts and/or read FF posts all day. This has no benefit to my trading AT ALL. What it does do is make my neck, back and eyes sore, negatively affect my energy and general health, causes me to neglect daily house/ life chores, and above all frustrates my wife no end. I NEED TO WORK ON THIS.

Right on. I really respect the traders who have this down. I am improving steadily, and it is the area where I am working the hardest. Simple but not easy.

J.

PS. Hi, Beach, finally back from the land of the perfect cappuccino !?
  • #1,736
  • Mar 5, 2007 8:07am Mar 5, 2007 8:07am
Interesting couple of posts and hear hear.

I've been with fozzy from almost the start and, while I do trade other methods on other timeframes, I find the dailies the least stressful and most rewarding.

I've gone to and fro a little in executing the fozzy crosses as time goes on and like you have taken the vegas off my charts but kept and 28EMA as a trend indicator and s/r. Double tops/bottoms inform a lot of my choices.

I wish you well in your trading, keep a log of what you're doing and use the weekend to analyse that week's trades.

All the best
Michael
  • #1,737
  • Mar 5, 2007 8:19am Mar 5, 2007 8:19am
yes, thank you..............perfect might be an understatement...

Quoting jtrade
PS. Hi, Beach, finally back from the land of the perfect cappuccino !?
  • #1,738
  • Mar 5, 2007 11:29pm Mar 5, 2007 11:29pm
Quoting willf
I modified the attached indicator so it gives a channel on the chart instead of a figure. Visually it's much easier to see how ATR works better than previous hi/lo.

Have play with it. It's set at 0.7 by default but you can change this or add other levels. It's calculated off the opening of the current candle which is of course when we make our trades
hello willf,

could you modify the indicator to make the channel distance to be MA(20) of ATR instead of ATR? i want to have a smooth curve

thanks.
  • #1,739
  • Mar 6, 2007 12:40am Mar 6, 2007 12:40am
now that he's back, all shd be right with the world

.. i too have been in asia the past 6 days and couldnt trade at all... the gmt+5 parts of asia that is..



Quoting BeachBum
yes, thank you..............perfect might be an understatement...
  • #1,740
  • Mar 6, 2007 9:38am Mar 6, 2007 9:38am
Thanks Willf for posting the ATR channels indicator.

Really gives a visual to the validity of this method of stops. Great for backtesting too - saves me a lot of time.

I've gone back to using the 70% ATR(20) after experimenting with previous day's high/low - gives me a lot more manageable stops. Nothing is set in stone however and if a see an important s/r nearby that makes more sense I'll use that.

Thanks again and happy trading to all.
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