The System II (Yes with irony)

Thanks Moneda,
It's way for me to give back what i have learned from Feb and all of you guys. hope to see more of you and others in here.
Speedy recovery to Feb.

E/U setup on a shallow pullback.
http://www.forexfactory.com/images/attach/gif.gif

Hi Guys! I'm fighting now with this set up on E/U.


Big trends and Good day to all !!!

maybe I jumped the gun on this one, the reall pullback is occuring now

I got stop... So I'll wait for London session... It's only begin

New possible set up! Go, baby, go to papa... LOL

Hi,

Thanks. Closed a trade on EJ previously and currently shorted EJ again at 130.14. Finger crossed

Anyone with me on short on EJ ?

Guys,
this is a example of how important it is to wait for a valid pullback, for the new guys do not trade the shallow pullbacks if your not super discipline to cut the loser short early, I bailed out with a loss of 22, just imagine if I wouldn't have now disaster and all kind of problems.
so to be in the safe side only trade the qualified swing and a qualifed pullbacks. Be patient you'll get plenty of oppourtunity.

we mostly trade the E/U in here bcz of its more controled volitility. be carefull with spiky markets.

Can you share ur chart based on ur entry price n exit loss price ?

Yes, Fxahilies! Please!

Oh ok....in that case, i'll also contribute if i spotted EU setup.

I noticed that you and dim are taking a 1 bar in the opposite direction as a pullback sometimes. Is a valid pullback for Feb two bars or more? and the single bars you count as shallow pullbacks?

Hi,

Will anyone take this short at the red tick from the breakout ? If no, why ? Was it a valid setup ? Another question, do you guys place at SL at 50%?

Quote:
Originally Posted by dim4ik42 http://www.forexfactory.com/images/buttons/viewpost.gif
It was a strong move. But I have not seen two candles pullback and had not trade this cross.

FXahilies to me.
Dim,
Remember there are not any set in stone rules, shallow pullbacks normally occures after a strong move, it is just a hickup and an opportunity for you to get on the bus, again for me every trade is just basically testing the water I may catch a river or i may get a swamp, but at least i wont be sitting and regret of not trying.
nice job with the earlier trade, keep it up.

Read this topic! I just do so.

ok,
First of all I highly suggest for everyone to read the first afew pages of the thread very carfully so you understand the core of this system as feb has explained.
but here is my two sense,
entery,
we need a solid qulified swing (minimum 30-40 pips, multiple of bear or bull candels with out much interuption) then we need a qualified pullbacks no more than 50-60% retracement at least 38% even for shallow ones.

live example of such setup
http://www.forexfactory.com/images/attach/gif.gif

read post 1268.

I did it so. But I'm not sure am I right. There was a pullback on m1 chart.

Sorry I had a phone call
now exit,
Inital sl goes above the pullback, if market reverses right after order has been triggered I personally am ready for the panic botton so i get out at end normally around 15-20 pip loss, normally wait for the candel to close if its not going against me like crazy.
now if price is going in my favor i simply trail stop it.

now if i get in on a not so qualified pullback such as shallow one, first of all right of the bat i know i am taking alittle bit of risk so i be more even discipline to get out if its turning against me. exactly what happen today pullback was not formed yet i got in with a shallow pullback price move about 10 in my favor then it started to retrace, now is it retrace? is it gonna continue? who knows, the only thing i can do is to get out based on my money mangment and my tolarence. My tolarence in that case was 22 pips loss.

guys read this carfully if you have not already, post 865 by Feb
Trade expectancy



As I mentioned many time, I am a scalper. I've been trading like this since I started, many years ago. But scalping requires not only a strong concentration level, but is harmfully stressful. In my situation, I can't have the luxury of been stressed out the whole trading time.

As for the system II, I mentioned few times this is a high-frequency trading routine. Trading is definitely an art of reading numbers in order to be first in line at the rigth side of the market.

But if the market decides to go the other way, I simply play along.

I will tell you what I use for my scalping. It's applicable on any framework/timeframe.

I use a hard stop, just in case of a connection failure or an unforeseen volatility. I never let my stop to get hit...NEVER.

Your job is to cut that loser short, no matter what. Don't worry about how many times you'll have to cut that loser, at the end you'll get a runner.



Let's assume you are bullish, you go long at your signal, and immediately the market goes against your position(A very common situation). What you should do?? How far is too far?? Does it feel like a cat in the headlights?

This is where you make trading an art. I cannot tell you specifically when to cut it short. None will. But I'll give you some pointers, from my experience ( since 1981)

I use as a reference, how was the market behavior at the past session/timeframe/last bar. Then I have some expectancy/time limit on my trade to work out...or I just simple hit the panic button.

Let's say you'll use the last candle as a reference point. Then , you see the market (assuming you're long) retracing back. If I see more than 50% of the move against me, rest assured I'll be ready to hit the panic button. The point is, you don't know how that candle/bar /time frame is going to end. This is where prediction is useless on the markets.

Trade expectancy is simply put, the trade MUST go your way within a resonable time table/rythm/distance...or I just quit.

Trade expectancy is the only thing that will keep your head above the water.

Trade expectancy is the only tool that will bring consistency to your trading.

Money management alone is not sufficient. Having a good entry, is not enough.

You need to go to the basics on what is that you're looking for in trading??

MONEY

Bottom line is all about how many Benjamin's can you pull off the market. If you're not consistent, trading becomes futile and frustrating.

In my life as a trader, I can count how many times I cut a trade short, only to see the market going back my way. It''s cool. But I saved my ass way more times. I made some statistics about it from my journal.

Actually, as I have my risk in check with my money management, in this specific situation mentioned above, I just go back and re-establish my position, even if I have to go market.

If you get stopped or just simply bail off a position, as I said many times before, look at the other side, maybe there's a change of sentiment.

The science of trading is simple: You're either on the profitable side of the market or you're not. In order to get on the right side, you use technical analysis (and have your ear on the ground, of course). Then you pull the trigger based on your signal.....that's it...and it's easy.

But how do you transform that into $$$ consistently?
Cutting that loser short. It's more an art than anything else.

The System I and II or any other "system" I put on a thread, is just a framework for you to trade. But if you don't manage the trade, it becomes useless.

I'll be checking this thread more often, as I know for sure questions will arise as a result of this post.
__________________
Peace

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