The System II (Yes with irony)

Hello,


A new down swing in progress.... waiting for the pullback.

Hello,

Three candles pullback.... I drew the line on the sand..... we will see what the markets wants to do..... and how much momentum is there.

Moneda

Nice charts clearly showing what we're looking for.

Hello,


I moved my SL to breakeven because I did not see enough momentum down and I prefer to trade the first swing of a session per Feb. My only regret is that I did not take the few pips available instead but at least I did not allow it to turn into a looser... wash and rinse.

Another quick 20 pips with this lovely strategy. It's just amazing how easy it is to apply.

It's a wonderful feeling to know how many people has benefited form this simple way of look at the markets. My sincere apologies, again for any delay.

Thanks for all of you who pray constantly for my health. I am definitely blessed as I can walk again, slowly but working on it.

Moneda, I still have my pick up truck and not thinking about selling it. I assure you, I will ride that steelhorse again LOL.

I pick this particular post I made above, as a reference. It's extremely important to all of you to look for your own flavor on trade management concerns. As I stated somewhere, don't make this all-so-called 20/20 rule a hard and fast one.

Some people go 2:1 or 1:1 risk reward. That's perfectly fine. Just make sure you add some sort of trailing stop in order to lock in your profits.

Just please, try to pull out of the market more that you're risking. That way, no matter if you have a low hit ratio (like me, yeah baby) you will come ahead on time.

Trade management is a sticky stuff. I am a scalper by nature, well it's understandable, I come from the pits. In my trading (futures) I use dollar figures for money management, which are attached to % of capital.

But that's another story.

The deal is, you need to find your own way on that, risk wise - capital wise. I am willing to discuss that, if you have any concerns. Just make sure you're comfortable in your own turf.

I been asked about using this "system" on bigger time frames. It might work but you will get frustrated on so many opportunities you have lost due missing the bus. The idea is to be "first in line" when the bus comes. It's a quick entry style.

A five minutes charts will show you the swing, and will tell you what's going on after that swing drops into a pullback. It's all right there. No need to be cross-eyed- Mary looking at zillion time frames to put a trade. Those who trade currency futures, a 144 tick charts will do the work nicely.

Make losing part of your business. Just make it as a part of your overhead, among with the spread of course. If you see it like that, I tell you, the boogie man(losing) will go away. I promise.

If you're not comfortable trading shorter time periods, I suggest other trading style. It's perfectly understandable. I have another thread, System I and I strongly suggest, for anything shorter than 1 day (4 hr), look for Trader V (Vick) posts. True gems in my opinion.

I'll be checking this thread more often. Feel free to post at anytime.

Thanks a lot for all the support and to keep this thread alive.

Peace and good karma to all of you.

Feb,

You have blessed so many of us over the years, and will continue to do so.Thank you for your giving spirit mate and I look forward to your future posts.Glad to hear you are feeling better.

Tweeds

FEB,

Good to see you on the scene again. Much value coming from you & we look forward to more.

Hi all,
First off a big thankyou to Feb for this thread, it's really helped me simplify how I look at prices and price movement, although I can't seem to bring myself to get rid of all my indicators but I'm sure it's a matter of time!

I'm a bit hazy regarding what has happened, but I wish you a speedy recovery Feb, and it certainly sounds like you're well on the way, I just hope that you truly are taking it easy

While I have made money using this great method, I was wondering if I have missed something. I have attached a chart showing a trade I took today that resulted in 2 losses of 20 pips each for me, which of course will have an impact on returns if I keep making the same mistakes.

The Blue line shows both entries-it was a few points below the swing low on the GBP/USD as required, and in both instances the trade went into stop hunting mode, with the price action triggering the short trade and then reversing straight back up again. Was I correct to take the trade, would others have done differently? I was washing, rinsing and repeating but I got stung! I know we have to accept losses, but 2 in a row in the space of 10 minutes must surely be a sign that I'm doing something wrong, or was this just not my time?

Thanks in advance for any responses and/or advice.

Bootsy

bootsyjam,

Near your entry is the 5200 logical level & @ times these will offer S&R to price. Some call them logical level & some term the as sweet spots.

Althought I out of trading until 09 I was watching that very move to see what it would do. Seems 5200 supporting for now.

Just my views about those (0) & (50) levels.....they will having a bearing @ times.

Bootsyjam,

Acetrader made some good points about s/r but it has been my own personal experience that if one does not trade this approach exactly as Feb intended then it is difficult to evaluate our learning process because any indicator that you may have on your chart will have an influence no matter how subtle on your decision making process. This is not an easy thing to do but initially seems to me very important. Later on, once the approach if firmly established one can tweek here or there.

Good luck to you.

Hello,


Waiting for a fresh swing from the NY opening.. as I watch the eur/usd chart I see that the choppy monster is alive and well....what do you guys think?

moneda

As we near Christmas volume will lessen & the chops can be wild. Pay close attention & follow the System to the letter. A bounce for E/$ could be next.
Note the trendlines.

I know that the 50 and 00 levels are ones to watch, but it seems that these levels occur so regularly that there would always be a reason not to take a trade-does that make sense?
The 9.45am (GMT) Eur/USD move would not have been taken as a result-that went down approx 30 pips and has been the winner of the day on the Eur. SO would you never take a trade if the 50/00 levels are nearby?
Update-just stopped out for 20 pip loss on GBP/USD-broke high-moved beyond the 50 then went straight down again-60 pip loss today Can't do trailing stop on metatrader for 20 pips until it's moved 20 pips, and Metatrader is useless for quick intraday stuff.

I only took one trade today, and managed 14pips on GY, short break of 137.17, took profit because of TL and round 137.00.
I'm waiting for the "monster" to breakout, just looking for a higher high on EU, break of 1.3670, pullback and I'll take a long, unless we break the low, where i would wait again for a pullback and go short. Sounds easy doesn't it?

Thanks Ace.

Hi all, new here.

Bootyjam, that retracement was very high. I am sure Feb says that the bigger the retracement the less likely the move is.. but I could be wrong.

I have started reading this thread today and took 3 trades in on the start of Europe session. 3 winners(1xeurusd , 2 x gbpusd), 1 break even(eurusd). 3 winners where 1:1 or more wins. I am sure some losses will come as I fully expect to see them. But so far this looks good, btw the market was very choppy today.

Feb, thank you very much for this thread. May you health be good for xmas. And seasons greeting and a my blessings to you.

Yes I can see what you mean about the retracement being high and therefore grounds for a warning. Combined with the 00 level it was not a good trade.

But then the GBP/USD break down at 9.45am GMT would also not have been a good trade wouldn't it? That retraced up 70 points and also broke resistance levels before going back down and beyond (admittedly not near 00/50 levels), so surely that would have been flagged a no trade too?
I'm sorry if I sound pedantic etc but filtering the trades must be the difference between make or break on this.
I just made 29 pips on the 13:00 GMT gbp/usd price break, but just lost 20 pips on the EUR/USD move in that period of time that broke resistance then went back down again.
I know we're supposed to wash and rinse but surely not as many times as I seem to-everyone seems to hold back a bit but a break is a break is a break?? (unless near 00/50 or news times)

Hello,

Looks like the first swing of the NY session is developing.....if so, wait for the pullback... we will see.

bootsyjam

Ref #714.....When I am thinking of doing a trade I always observe the distance those logical levels are located in relation to my trade direction. I then note has a bounce occured from those levels............how many bounces have occured? You are correct is your view, but this time of the yr volitilty is very
unstable due to low volume & the choppy waters get rough, so expect the unexpected. That is the main reason I shut down trading after 2nd week of December every yr. Resume around Jan 5, 09. Just works better for me.

Set those logical levels on a 5M or 15M chart & follow what developes around these levels especially the E/$.......my main pair traded. From a quick viewing of the GBP/$ it shows similar response as well.

This is just another tool in the traders tool box for me. These levels were pointed out to me yrs ago. They have merit.

Note the Gbp/$ @ this time. Hope this helps.