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Jacko's Forex House of Pleasure and Pain

  • #7,341
  • Apr 30, 2009 11:05am Apr 30, 2009 11:05am
Quoting TheCyberCore
Yes you are so right. H4 is my preferred timeframe, but for re-entries I sometimes would like to go more in depth (of course M1 is extreme for me, too).

sorry..but for depth, in my book, you should be looking at a higher timeframe, not a lower one...

how can M1 M5 or similar give you depth?

just trying to understand...always willing to learn something...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,342
  • Apr 30, 2009 11:50am Apr 30, 2009 11:50am
A Good Lesson

Yesterday, following the FOMC release, I entered the market at 1.3308 with a 100 pip trailing stop loss (TSL) and a take profit point (TP) at 1.31. The market began moving south and eventually reached a low of 1.3233 thus bringing my TSL to 1.3333.

Because of this move southward, I hesitantly decided to move my stop loss from 1.3333 to break even at 1.3308. I left the house to manage the affairs of another business.

When I returned, I saw the market had returned to above 1.33 and had hit my stop loss at 1.3308. Nothing lost. Great, right? The number one rule in trading and/or in investing alike is "DO NOT LOSE MONEY."

At this time, I was watching the market closely for another SELL entry. Call it ironic, but I eventually entered the market again at 1.3308 with the same parameters as above (100 pip TSL with a TP at 1.31). The market moved 41 pips in my favor before it turned northward. This small move to the south brought my TSL to 1.3367.

During the London session, the market moved to a high of 1.3386, obviously taking out my stop loss at 1.3367 for a 59 pip loss.

Had I originally left my initial position alone and let the trade play itself out, I would have been taken out at 1.3333 for a 25 pip loss. However, the market moved to a high of 1.3386, which is 53 pips above the point at which I would have been stopped out. Because it was 50+ pips, this was enough to engage the Anti-Hedge (AH) strategy by placing a stop order at 1.3333 (the exact price location where I would have been stopped out).

If I would have left the initial position alone, I not only would have recouped my losses but had already been in profit. But I didn't. I let fear take control of my original position by moving my stop loss from 1.3333 to 1.3308. Because of this minor alteration in my stop loss, I am now leaving April with a loss instead of a profit because I foolishly listened to my brain instead of listening to my gut.

Conclusion

Jacko is an incredible teacher and has near-heavenly awareness of market movement. Listen to him, study this thread, print it off and learn the mindset behind the trading method. The methodology is quite simple and rather common sense-like. But the mindset behind the method . . . this is another story.

I hope this helps. I learned a good lesson this morning.
  • #7,343
  • Apr 30, 2009 12:35pm Apr 30, 2009 12:35pm
Quoting jacko
Hi Teddybearhug,

There are three issues that you need to consider regarding trading versus a career as a trader …And you have to remember that I am a trader so I am biased.

Firstly employment security
[color=black][font=Verdana]The salary has never been a truly reliable safety net. From your post it sounds as though you have been through the awful reality of being made redundant and unemployed. As you get older, this awful reality will become even more...
This by far one of the truest, honest, and best posts I have seen, which is exactly why I am trying to steer away from being an employee in the near future. Just coming out of college so I have time, but This is the exact reason I want to be a trader. As Jacko has alredy mentioned, this is THE best business in the world.

Jim
"Luck favors the prepared mind"
  • #7,344
  • Apr 30, 2009 2:27pm Apr 30, 2009 2:27pm
Quoting coscorp
sorry..but for depth, in my book, you should be looking at a higher timeframe, not a lower one...

how can M1 M5 or similar give you depth?

just trying to understand...always willing to learn something...
Sorry, did not read books about Forex yet :-) (Except of the first 30 Pages of a 384 page book about Elliots).

When I was talking about "depth" I meant to get from a general view down to a detailed view, just like zooming into fractal graphics. A general view seems to be a higher TF, a detailed (deeper) view in this sense is a lower TF.

I guess I am the one here who needs to learn something, you are much more advanced in your knowledge and experience, coscorp
  • #7,345
  • Apr 30, 2009 2:53pm Apr 30, 2009 2:53pm
Quote
But the mindset behind the method . . . this is another story.

This is what I joined the group for. Truly extraordinary thus far... Maybe one day I'll get there.


DS
  • #7,346
  • Apr 30, 2009 3:38pm Apr 30, 2009 3:38pm
Quoting TheCyberCore
Sorry, did not read books about Forex yet :-) (Except of the first 30 Pages of a 384 page book about Elliots).

When I was talking about "depth" I meant to get from a general view down to a detailed view, just like zooming into fractal graphics. A general view seems to be a higher TF, a detailed (deeper) view in this sense is a lower TF.

I guess I am the one here who needs to learn something, you are much more advanced in your knowledge and experience, coscorp

me??!...LOL not at all...I'm just a guy trying to acquire more knowledge and become a better trader thanks to people like Jacko. I see what you mean on the depth portion - and it may be a valid way to proceed - but for me - the lower tf's are just a bunch of crazy static running around...though many can actually read that static and trade successfully with it - I know I can't - without risking a coronary every second trade....


Cheers
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,347
  • Apr 30, 2009 3:55pm Apr 30, 2009 3:55pm
Quote
i have placed the TSL EA on the experts folder and enabled Expert Advisors. i dragged it onto the H4 chart.

Attachment 240716 (http://www.forexfactory.com/attachment.php?attachmentid=240716)

How do i know where is the level that will trigger TSL? It will start as soon as your order is accepted by the broker

What does the numbers on the top left corner means? These are Hi/Lo/Open/Close of current candle, placed by Metatrader platform.
...

Hi Rake,

Good to see you have it up and running. The EA will begin a trailing stop as soon as the order is active. For each tick the price moves in favor of your order, the stoploss is adjusted to match. If the price moves against your order the stoploss does not move. I have found that i need to use a much wider stoploss to begin with in order to prevent being stopped out prematurely. This is something you will have to play with until you find a comfortable zone. I reset the StopLoss value tighter after a trade is well into profit. Make sure you have checked the "Allow Live Trading" box in the EA properties window.

Cheers

P.S. Please feel free to email me, I will be happy to help with any questions.
Continuous periods of Total Misunderstanding followed by Complete Confusion
  • #7,348
  • Apr 30, 2009 4:26pm Apr 30, 2009 4:26pm
Quoting TheCyberCore
I guess I am the one here who needs to learn something, you are much more advanced in your knowledge and experience, coscorp
Hi, TheCyberCore. (Long name by the way. Alright if I call you TCC?)

Coscorp is, indeed, far more advanced than any of us could ever be.

TheCyberCore, my favorite time frame is Daily. I use H4 from time to time for analysis, but I use Daily for entry, to place add-on entries and to set proper exit points.

I used to be an M5, M15 trader. Horrific!!! Like coscorp, I would have multiple heart-attacks within one M5 candlestick's movement. My goodness . . . talk about stress factor la rouche.

Nonetheless, I can see your viewpoint of moving down to smaller time frames to look at the details of the movement. But for me, anything smaller than H4 is too fast. I hold trades for hours and hours at a time, if not days at a time. I'm looking for 200 - 1000+ pips each trade. It's not always achieved due to stop losses or quick reversals, but it is merely preference which time frame suits you best.

Good luck with your approach.
  • #7,349
  • Apr 30, 2009 5:02pm Apr 30, 2009 5:02pm
Quoting hans356
Hi, TheCyberCore. (Long name by the way.

Coscorp is, indeed, far more advanced than any of us could ever be.

ok..quit pulling peoples legs...but if you want I'll let you say that when I'm trading 200 standard lots...otherwise...it just ain't the case...


now back to business....nfp tomorrow....also May Day in most of Europe but London is - theoretically - open...I say theoretically because monday it'll be a holiday there and I wouldn't be surprised if quite a few people in the City took a long weekend...

we'll see what the day brings I guess....
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,350
  • Apr 30, 2009 5:46pm Apr 30, 2009 5:46pm
I am only interested in the Fib retracement when trading this method. Just wondering if Jacko could post how he draws his or if there is a book he has read that he refers to when he draws his. Thank you
  • #7,351
  • Apr 30, 2009 6:26pm Apr 30, 2009 6:26pm
Indeed, I bet Jacko read his own book!
  • #7,352
  • Apr 30, 2009 6:55pm Apr 30, 2009 6:55pm
Quoting jacko
I am a Trend Trader

The trend is the BEST friend you will ever have in the Forex market.

The question is:
How to know the trend?

Some use MA to determine trend. MA are lagging indicators. What seems like a Bull Rally Trend for the last 3 days, will appear as bear run on MA lines

Some use MACD - MACD is basically MA lines.

Some would simply use Prices: if daily price open higher or lower than yesterday; or use daily high/low and compare vs previous days..

These are all subjective. The ones who got the eye for this is the winner.
  • #7,353
  • Apr 30, 2009 8:38pm Apr 30, 2009 8:38pm
Quoting ragnakore
The question is:
How to know the trend?

Some use MA to determine trend. MA are lagging indicators. What seems like a Bull Rally Trend for the last 3 days, will appear as bear run on MA lines

Some use MACD - MACD is basically MA lines.

Some would simply use Prices: if daily price open higher or lower than yesterday; or use daily high/low and compare vs previous days..

These are all subjective. The ones who got the eye for this is the winner.
Use "trend" lines to determine the trend.

If you look at the weekly and daily chart and draw a trendline, you will see that it's sloping down, so we are in a downtrend. Right now on the 1h and 4hr tf we are in a uptrend.
Sooo, the correct thing to do would be to wait for it to hit the trendline or a major point of resistance and sell when you see it reverse. You would use the daily and weekly chart to determine the trend and 4h and 1hr charts to plan your entires. Some people trade counter trend, but then you can't use the AH strategy, which is really helpful. For example yesterday, my short got stopped out on two of my accounts, thanks to the AH I recovered my loss plus I made a profit, but if I was counter trend trading I wouldn't be able to do this.

You just gotta watch price action now, because the trendline got broken yesterday and right now it looks like price is going to test it again, so lets see how it reacts
It's NOT GAMBLING when the odds are in your favor
  • #7,354
  • May 1, 2009 12:33am May 1, 2009 12:33am
You may want to check again but I think it will be next Friday 05/08. Not tomorrow.


Quoting coscorp
ok..quit pulling peoples legs...but if you want I'll let you say that when I'm trading 200 standard lots...otherwise...it just ain't the case...


now back to business....nfp tomorrow....also May Day in most of Europe but London is - theoretically - open...I say theoretically because monday it'll be a holiday there and I wouldn't be surprised if quite a few people in the City took a long weekend...

we'll see what the day brings I guess....
  • #7,355
  • May 1, 2009 2:48am May 1, 2009 2:48am
indeed - thanks for the heads up.

Cheers
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,356
  • May 1, 2009 8:45am May 1, 2009 8:45am
Jacko i have a question for u.......
When u have tsl @ 100 and price moves say 110 pips in your favour. Your stop loss is moved 10 pips in favour. if the price starts to move against you, what will you do. Will you let the price come to your stoploss and give all the profit back to the market or will you close your position early and keep some profit?
  • #7,357
  • May 1, 2009 9:38am May 1, 2009 9:38am
Quoting alfakun
Jacko i have a question for u.......
When u have tsl @ 100 and price moves say 110 pips in your favour. Your stop loss is moved 10 pips in favour. if the price starts to move against you, what will you do. Will you let the price come to your stoploss and give all the profit back to the market or will you close your position early and keep some profit?
if I may

if price moves moves 110 pips in his favour then he will be at be + 10....with a 100 pip tsl...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,358
  • May 1, 2009 9:47am May 1, 2009 9:47am
coscorp,

I must say you have helped a ton in my learning and discipline with your continued posts on this thread. I appreciate all of your posts very much and would just like to say thanks. I was about to join Jacko's group a month or two ago, but ran into financial trouble but I do hope when the time comes I will still be allowed to join. This thread has played a huge role in my trading abilities and would like to say thanks to Jacko and all the contributors as well. So thanks a lot guys, this be a life changer thread. One of the best on FF.
  • #7,359
  • May 1, 2009 10:45am May 1, 2009 10:45am
Phonetic...I really don't know what to say...if not thank you for your kind words though I'm not so sure I deserve them, I'm just a little guy trying to make a decent living off this business....and learn all along the way...
Nihil inimicus quam sibi ipse Marcus Tullius Cicero
  • #7,360
  • May 1, 2009 10:57am May 1, 2009 10:57am
Quoting coscorp
if I may

if price moves moves 110 pips in his favour then he will be at be + 10....with a 100 pip tsl...
I understand that @100 pips tsl when u have 110 pips profit ur stoploss is +10pips. but my question is will he(jacko) let go 100 pips profit out of 110 pips profit and realize only 10 pips profit(in case the price moves against him after+110 pips) or he ll consider closing the position b4 he is stoped out?
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