Simple System By T101 - My Thought

Recently I found the Simple System from "Julius" known as Trader 101.
Today I wanted to post my opinion/contribution to the thread Simple Tradding Method With Trader 101, but unfortunately for some reason I do not know I do not have sufficient previlegies to do that, and so, I decided to open this thread just to post my point of view on T101 system.

Ok, I have not finished reading all thread (I am about over page 100) but like many others (trendchaser for instance), the basics of the system are on first 30 pages. All other pages acts like usuall "indicators" that the main function is to distract us and increase the misunderstanding of a system that is not simple as appears for most of readers/traders (including me).

On that thread, besides a great system (which I do not fully understand), I found great indicators and tools like those one developed by Orest, Trendchaser and Crodzilla (including Julius itself), that really help me "trying" to understand this system and make my own thoughts.

I have found lots of questions that myself wanted to see answered but, in fact some of them I get no answer at all even from T101 the guru of the system. The best answer I read from him was something like "...test the system in several ways and find your best trading style...".

I have tryed myself to use both systems (jumping pairs and 14 pairs) and even wanted to know more about phasis 2 and 3. I give up. I have decided to go back to the first method (jumping pairs) and I really started making some pips (even thinking that are just demo pips). I think that when I "mastered" the first method I will think about a higher level.

Enough of bla bla bla (please, if this post distracts you or makes the system more complicated somehow, please just ignore it, because as I say, I do not understand the T101 system).
1. The system works as "teached" by Julius, on post #1 of his thread.
2. I mainly use Orest indicator to follow the market move on several timeframes.
3. The weekly, daily and 4H timeframes are the one I am interested on. The other one just helps me to try to find if a change could occur.
4. On this MAIN timeframes, I look for a jumping pair. When its occur, I follow its profit/loss. My target is a value above +70 and/or below -70. Trying to explain:

- The pair USDCAD jumps up lets say on Daily colum. I'll wait for a profit of +70. When I reach this profit I enter with BUY trade.
- Since usually when we have a pair jumping up, there will a corresponding jumping down pair, when it happens I also look for a -70 profit on this pair. If it happens I enter the market with an additional BUY trade, and so on for every pair that jumps to the oposite side until they are on the perfect SETUP (in this example all BUY UP, and all SELL DOWN), because when it happens, "it will be time to wait to market revert itself to SELL".

Attached I post some screenshots of the exposed situations and a sample trade made today that the time I taken it was on +100 pips already.

On the screenshot you will see on 4H Column that USDCAD and USDJPY jumped up and are with a profit of +70. Also, the GBPCHF and USDCHF are on the oposite side (SELL) and the profit is -70 more. I made this 4 trades.

If someone of you that used the system and understand it can correct me, it would be great.

Thank you very much for the people I referred here and regards

Paulo

Hi there,

Just another sample of today's trades regardless my thought about this system.

As referred, I see that the trend has changed and sooner or later we will have a perfect setup will all BUYS up and all SELL down. Until that, I will keep BUYING all currency pairs that goes +70 (BUY SET PAIRS) and -70 (SELL SET PAIRS). When I get the perfect setup, all trades will be closed (if some) and will wait for a short reversal signal to start all over again.

Attached is this morning trades.

See that GBPJPY? It happens yesterday afternoon and was not at the computer anymore...it could be a 200pips trade

By the way, yesterday trades closed at about 150pips profit.

Regards

Paulo

batalhademat,

I was missing T101 and I will be keenly following your thread now. Your observations are interesting and I am trying to assimilate.
Keep posting.

In your first screenshot, I see USDJPY not making any substantial movement, whereas USDCAD is the winner. Also GBPCHF is on the SELL side reaching -71 and you bought that too, right? I am also getting confused now!

According to normal basket trade, first example gives BUY ALL trade signal.

Hi IamThat,
Thank you for your comments.
As I have informed on this thread, the main reason for writing this was because I had no change at all to make it on Julius thread, and now I understand why...

That is the only reason you did not find my comments there, because I am a dedicated follower of that great thread which I will keep following on a daily basis. Hope you do it also, and try to isolate what you think to be the best and useful parts for system acknowledgment.

Regardless your questions/comments (just try to answer to way I see at the moment baset on "my" trading style);
- USDJPY: On my first posting, I refer that my mean attention is on weekly, daily and 4h information from Orest indicator. If you noticed, USDJPY is on +70 profit on 4hour and we are on a strong uptrend for daily and 4h. (someone can say that this is a risky trade since we are on a shortrend week, and perhaps it is safe to wait, but, this is only "demo money" and I am trying to learn the system itself...perhaps a lucky scalp move? I do not know. The important think is that, USDJPY where fighting to keep itself on profit side and if my trade where closed hit by the profit/reserve move or even a loss, it was time to enter again because I see the information there.
- USDCAD: Yes, you are right, the USDCAD is the winner. I also entered the trade. And when I entered that trade I was with lots more than +70 points positive. But if you notice I did not make any substantial profit in that currency pair, why? I forgot to mention that when a profit is higher than +120/130 (or lower than -120/130) it could be a risky trade, mainly on daily and 4h timeframes (if we are on oposite side for weekly) and perhaps we are on a retracement of that currency pair... and was a really risky trade. If you see on all timeframes it is with a value higher than +120 and on the second screenshot USDCAD lost losts of pips (I have lost about -130 on my demo for this trade). Just compare the values for the 3 timeframes on first screenshot and second screenshot for this currency pair... Also, since we are on a shortrend week, it should be a very risky move??? Once again I am just trying to learn from Julius. According to what I see, perhaps this is the riskiest trade of all.
- GBPCHF: Remember Julius rules for the jumping pairs? When I entered this trade, this currency pair was not at -70 points (it was about -60). But since I was looking at the charts, the price move was telling me that this currency pair was falling to a more negative value (and this is a SELL SET PAIR, so you should BUY IT)... Another thing was that since I was following and recording the currency pairs move, I saw that we where on a market reverse from SHORT to LONG...this information is confirmed by the USDCAD pair that is the highest profit currency pair on weekly chart.

It is important to refer that during friday, the second screenshot was the only trades I made. Not just because its a good habit to not trade at fridays, but also because the market did not show any confirmed trend (I confirmed by following the ProfitCalc indicator from Julius that there was a "NO TREND" for all day, at least until 4pm GMT the time I left the screens for that day). Believe me that during friday sometimes I get lost myself (overtrading perhaps), and even my trading style was not working anymore... I just let the market ride and everything gets clear again.

Basket Trade: I am not trading the basket trading itself since I do not know how to read it. I believe that once I fully understand the jumping pairs strategy, it will be easier to undesrtand the full basket trading strategy. Until that I will trade just the pairs that jumps to the oposite side, according to market indications.

What will I do next? First of all keep tracking the USDCAD price move until I get a perfect setup. Look for the main week/daily/4h trend, and all currency pairs (BUY) that jumps to profit side with at least +70 (and below +120) I will buy them. The same for all currency pairs (SELL) that falls into negative with at least -70 I will also BUY them, based on 2 screenshots I post.

Hope I was able to clear any confusion, but if you have any additional question please let me know.

Go to Julius profile, and you will find his web site and reference to other forums where he also participate, I do not post them here because did not read the forum rules and do not know if I can post links for external web sites...;o)

By the way, I ask you apologize for my bad English...

Regards

Paulo

Hi IamThat,

I think the best way for you to understand (what I am trying to tell you), is for you to wait for a perfect setup during next week (hope to be a BUY perfect setup) with all BUYS up and all SELLS down. If on weekly timeframe better.

After that, watch for the week/day/4h for all SELL pairs that jumps to profit side. When it happen if the profit is higher than +70 and below -120 (mainly on daily and 4h), sell that currency pair. The same for all BUY currency pair that falls below -70 and higher than -120.

If you get this perfect setup with all sell down and all buy up, and for some reason one of the sells reach the top position on the weekly, better. You will just ride with the market, believe me. Just need to follow and check some indicators like orest itself and profitchart, and mainly follow the jumping pairs strategy.

Another thing, which I found to be one of the most confusion that most of the traders are making on this system is, when we have a perfect setup, lets say with all SELLS UP and all BUYS DOWN, it is NOT a moment to SELL everything. It is a moment to wait for a buy opportunity, because we are waiting for a market reversal and this strategy is to help us to anticipate market reversals. On this perfect setup, we must BUY all buy pairs that jumps up to opposite side... understand?

You can post this question on T101 thread (if you have enough rights to do so), and perhaps someone with more experience on this strategy can help both of us... who knows trader 101 itself can clarify us on this.

Regards and once again thank you

Paulo

Greetings to all,

I am an ardent follower of the basket trading though i have been in the sideline observing and reading a lot about. I have been sending a lot of pm and e-mail to the creator t101 and he has been gracious to respond to them.

Just so glad that someone started this thread for us to continue discussing this fantastic idea. I know there have been several threads that deal with this theory and i had read them as well. Most of them are not really as per original concept in the STM by t101.

Batalhademat, count me in, i know this thread will flourish as long as we stay with the original concept. More power to your, sir...

JD

Paulo,

No need to be apologetic for your English , it is not my first language either. Conveying your idea is the main thing.
Happy to see that you are totally immersed it this method and I am sure I will lot of ideas from you. Your comment above on USDCAD really started me thinking.
I just can't afford to trade live the whole basket with my understanding of the system, so trading the jumping pairs is the best alternative.
Orest indicator is little confusing for me for jumping pairs, because of the reference is not on fixed time scale as I see it. Whereas for a basket trade it really helps.

Hi JD,

Welcome.

You are right. I also think that nobody can change anything that does not fully understand...

I am new to this system, besides been reading it and testing it for a long time, and if we exchange our acknowledgment and experience on it, helping each other and mainly trying to keep on the T101 rules, we will for sure be succeeded on this great system.

Regards

Paulo

IamThat and JD, (and Trader 101)

Hope your fine,
Attached I send a chart formation I found today reading Orest 1.4 indicator. (I have discovered how to configure the charts with higher timeframes which I prefer than smaller ones). I meanly need you to "exchange" your acknowledgment on the system and correct me and/or "be with me" on my idea.

This is basically "The Perfect Setup" that happens on 12H information.

According to what I understand about the system, this is an indication that we are on a UPTREND. So, and since the "jumping pairs" system is system that helps us to anticipate trend reversals, I whould wait for the first jumping pairs that jumps from SELL area to BUY area and trade them short. Additionally and as usually happens, also wait for pairs that jumps from BUY area to SELL area and trade them SHORT too...

What is you opinion?

Regards

Paulo

Your observation is right. that is the basic method as taught by Julius.
Today I had some success with your method mentioned earlier. I caught EURJPY at -78 and sold it and made few pips. I closed little early but it was a successful trade. Normally I trade live on micro account for experimenting, so it was good.

Thank you IamThat,
Careful with this live account ;o)

Yes. The idea is to know how to read the signals we have from the indicators we use. Attached is the full screen shot. If we consider other timeframes, the information is not the same on all of them...

I could also say that, the USDCAD on 4h, EURCHF and USDCHF on 8h are giving a totally different signal...

I also entered short on some currency pairs and made some profit, but found a big retrace and was hit by protect account at about 110$.

I think the secret of the system it self and the main security issue is how do we read the signals. Making money does not mean the was a correct reading.

By now what's important is that if I had entered according to the signals from USDCAD, EURCHF and USDCHF I was loosing money (just making some profit on USDCAD) by reading its value at the time I am writing this post.

Any comments?

Regards

I have just started following his threads and trying to understand. I must not have the indicators set up properly as I do not show the same itesm at the bottom as you. Can you help by attaching the template.

thanks,

Actually you are using an older version. Latest version is Orest1.14 which an EA and needs to be placed in the experts folder.
There are couple of more indicators, Basket Indicator and BuySellbasket2 which you can find in LaTeCoMeR's thread in the trading Journal section. Template also is available. They are very helpful for trading full basket according to me.

Hi all,

I have been exchanging some emails and PM's with Julius, and he authorized me to share this word document with you.

Read it carefully since we can better understand how to read the market signals.

Thank you once again Julius

Regards

Paulo

Thank you and Julius for this very useful trading idea.

Yes, thanks for sharing

Hi Batalhademat, great work on starting this thread, you have explained the system quite effectively and in simple words (Thats the best way to teach anything)

A request: Lets not make this thread full of indicator discussions and stick to the basic concept of the strategy. Instead lets just use the Orest indicator and concentrate on posting charts and explaining trades and the reasons for taking a certain trade.

Also, the IA (Not an indicator but a demo account with 7 buys and 7 sells)as explained by Julius is quite an effective tool by itself.

Thanks for this info Paulo.. I will test this soon. Keep it up.
JD

THE BASKET !!!

Thats the heart of the system


Equation,equalibrium and correlation !!!