The System II (Yes with irony)

Had a good day trading the system yesterday, and a great day today. Some very nice moves in the market.

A little tricky, but still lots of profits to be made.

Thanks guys!

Dave

My Discipline let me down. Will keep at it. Seeing a lot of 30 40 pip wicks then slamming down in the opposite direction. Crazy out there. Anyways, as usual I need to focus on rifle shooting the trades not shotgunning them Dem wabbits are quick I tell you.

Leasons to be learnt.

I think that using this system we have been among the few who benefited of this euro bull. I had some great trading days, while many where looking for short I have been taking the new high after confirmation of HH-HL, limited risk because of the period of the year but still fun!
What can I say....

I'm considering trading only with the daily trend during these volatile days around the holidays. Here's a trade I entered a few minutes ago. Let's see how it works out.

hi.. Good to see the master and the regulars are writing again. keep the thread alive. p/s: any recommendation for a mt4 broker with tight spread? sorry for the diversion. hehe

Well, this market has humbled me once again, dammit.

Stopped me out just above the resistance by the right arrow. About 15 pips.

Don't get me started....

That's ok - I just picked up 22 pips on a winner on the GBPUSD, so I'm still up for the day.

Is there a chatroom, paltalk, or anything where traders are posting live on this?

Back to trading....

Dave

I have chatted on an irc server for about year www.ircforex.com
irc server irc.ircforex.com #forex

we can start our own channel on this if you want? Its not my server (or anywhere close to mine) but they are a good bunch, just the main chatroom sometimes get a lot of noise so perhaps we should start our own. Up to you.

Hello,


This is the kind of situation where I am reminding myself to sit on my hands and wait for the market to show me the way.

The choppy monster

PistolDave

Ref #746.......don't feel too bad as this time of yr the best planned trade can get derailed. Wild swings & chops without warning are the norm.

After being hit several times over the yrs with one being a sizeable multi lot lost I decide to rest & observe from 2nd week of December to early January each yr. Oh, there are opportunities, but the risk can be high.

Tks for posting your charts.......I need to learn to do the same. Maybe I'll practice over the holidays.

Best Trades

PistolDave,

Just an after thought after looking @ your charts.......note the logical levels that are nearby. Some call these logical levels & some term them as sweet spots, but they are worth noting. They are the (00) & (50) levels. Price will bounce around these levels & you can see an opportunity from this.

Check the 15M $/Y using these levels & note the 3-4 attempts to breach thru the 88.00 going UP which it finally did. These attempts provided 1-2 quick short trades before it blasted thru then was capped by the 88.50 - 89.00 levels. Price is now hovering around the 88.50 level. The System II is a GREAT system & these levels are just something to make note of when trading the system.


This is just my views based on what I see using the 15M tf, but once again, this time of the year ANYTHING CAN HAPPEN TO DERAIL THE TRADE.

I hope this helps, as it works for me............But Never 100%.

at this time of year Feb and Ace!
I made a grand total of 11 points on a long yesterday on the Eur/USD proving my ineptitude as a trader-I exited approx 15 seconds before it exploded dangnabbit, but I was on the right side of the move so I'll keep learning and keep plugging away. I bet £1 a point at the moment but even that huuuuge amount is too much as I'm a case study of greed and fear!

G33 maroon-I use Alpari in the UK for charts/the occasional trade.
Spread for Eur/USD is 2 pips (about as good as you'll find) and GBP/USD is 3 pips (standard). I don't use the MT4 platform for this 5m trading but I do for long term positions as it's too damn clunky with intraday stuff.
I would only recommend it if you're entering set entry and exit orders that will open/close the trade when they're hit as trading live is a joke. Constant requotes as it takes a long time to connect to their server by which time the price you wanted will be invalid. This is not an Alpari issue as I understand it, it is an MT4 issue-was speaking to a broker and he said it's a cheap off the shelf platform for companies to use at low cost to break into the fx market (but then he would say that I suppose).

If anyone else has a better suggestion for a trading platform with small/mini lots then please help, but that's kind of off topic so maybe not

Hello,


I missed this one because I stop being a predator and went to sleep for a couple of hours!


I hope someone else stayed awake!

If anyone else has a better suggestion for a trading platform with small/mini lots then please help, but that's kind of off topic so maybe not[/quote]

B,

I find Oanda to be the best option for micro lots... spread for Eu/Usd stays around .9 - 1. 5 during the London/NY sessions (except during major news releases). Their charts are basic etc... but it would be enough for a naked trader

and it's probably the only thing I've learned from trading, and that is that I have never seen more proof of Murphy's law than in trading forex.
Go to the loo/make cup of tea for 5 mins/have one late morning? That's when the market will move, and yes, I got up late this morning and missed it by 10 mins.
I'm sure I can make some money out of setting up a subscription only trading alert for every time I'm away from the PC for a few minutes, it's the best time for entering a trade that I know

.......I'm sure I can make some money out of setting up a subscription only trading alert for every time I'm away from the PC for a few minutes, it's the best time for entering a trade that I know[/quote]

B,


How much are you going to charge?

It'll be a LOT! There is no more accurate system out there. Lets see, it's 1pm GMT am going to have lunch.

Aaaah no that's dumb, USA open. But then if I timed it with market opening hours it would be an even stronger signal.
Hmmm I reckon my system is good for at least 100 points a day per pair-that's around £150 a month I reckon-bargain!

B,

Maybe you can hire a double and you can stay by the computer.... I think that might work!


Good luck today

Thanks Ace,

I didn't really think much about the 00 & 50 levels. I have heard they were significant but I didn't know they acted that much like support/resistance. I will start making an effort to notice them on the charts.

I'll keep posting some trades I take so we can all learn from them. I do appreciate the help learning about the system.

I traded a method similar to this several months ago, but I gave it up because I could not tell the difference in price action that would move a lot in a given direction and into profit, and action that would break through resistance/support and just slip back and stop me out. I guess my problem was to be able to tell when the price was starting to trend -- and when it was just ranging. Finally, I just said "forget this" and went back to trying to find better indicators -- which as you might know, does not work very well either.

That's why I think there is judgement and discretion involved in this system. I don't think there is any way to make it truly mechanical because you have to consider the strength of the trend, if there is one, and whether price is breaking out of a range, and if it is breaking through major s/r, how far price has already moved, what the potential is for more movement, etc.

I hope this makes sense. I would like to hear from some more experienced traders here, who could let me know if you do use that type of judgement when you decide whether or not to take a trade. Do you go through some kind of mental checklist that helps you decide? Or is it kind of an instinct you develop after you use this system for a long time?

I hope that does not seem like I'm asking a lot of irritating questions here.

Any feedback on those questions would really be helpful. I really like the system and I'm going to keep trading it until I truly understand how it works. I have done well with it so far, but that may be just luck. I don't know.

-------------

If you are using an MT4 platform, to post a chart you do this:

On your platform window go to file > save as picture > active chart (as is) > click ok > save the file.

When you post a reply here on FF you will see under the "Submit Reply" button a window for "Thread Options" where you see the "Manage Attachments" button. Clicking it opens a window where you can browse to the folder on your PC where you saved the file. Find it and click "Upload" and it will be in the post for you to review or submit. Easy.

Have a profitable day.

Dave

I hear your concerns. This is exactly why I've been preaching about not patronizing anything you put on the charts.

First, let me state that you're trading off 5 minutes charts. In other words, you're trading noise. Look for patterns, trends etc on noise trading is completely useless and will lead you to confusion and paralysis-analysis, I guarantee that.

I will probably get some fire for the following statement but who cares?

People lose in this business for two reasons.

1) Paralisys -Analysis

2) Failing to pull the trigger.

Your job here is to shoot, merciless and take no prisoners. You need to ACT when you see your trade. Forget all this support resistance, magic numbers, round numbers sweet spots etc. All of this truly lies in the eyes of the beholder.

If you lose, get up, lick your wounds and keep going.

It's not hard to keep an eye on money management. Once you have your rules set, there's no need for more tweaking. So the next thing to do is to trade. That's it.

This is a quick style trading ala scalping. Scalpers, which is a generic definition by the way, don't care a bit about where the markes was, but where is heading on the next xxx minutes.

I have a poor winning hit rate. I test the market a lot. The idea is to be first in line when the wave begins to develop. In the process, as I said, I test the market...many times during the day, therefore my winning hit ratio will be low. That's my style of trading. Just that, when I hit the wave big time, all the past losees are attenuated. besides, in the process of testing, I definitely have winners.

Here's a couple fo things you guys can do. This is just a general example, no specifics involved.

1) Let's say, you have 100 bucks to lose per day. You're looiking to at least double the money (2:1) You can limit yourself to 1 winner,or loser a day and quit.

2) or you can use the same 100 bucks and spread it across the whole day, still look for 2:1 per trade, but take witouth fear all opportunities available. If you lose on the process, instead of be frustrated because your limit has been reached, you just said to the market "sooner or later your ass will be be mine today, fucker"


Either one is good. I picked # 2. My personal choice.

Trade with attitude. Be a jerk.

Trading with the fear of losing = Assured failure.

[quote=PistolDave;2428440]Thanks Ace,


......Any feedback on those questions would really be helpful. I really like the system and I'm going to keep trading it until I truly understand how it works. I have done well with it so far, but that may be just luck. I don't know.

PistolDave,

I would like to add something else that Feb has mentioned before and that I am focusing my trade on....that is to be on alert at the beginning of a session, preferably the London and/or NY session. I have also found that around the 16:00 gmt ( 11:00am est) price action seems to pick up.

Hope this helps.