The System II (Yes with irony)

now your homework is to go back on charts and identify 3 conditions for trade - swing/pullback/entry and play with your stops and targets....

have fun.

Dear Feb!!!!!

I follow your great thread for a time yet... But still it is for me the BIG QUESTION - "how to determine when to cut the loser short???"... With your clarifications to Ogna I refresh my knowledges... I have read your great post about "EXPECTANCY", about "CUTTING THAT LOSER SHORT"...

BUT I still don't understand clear 2 things:

1. Why we need to place our stop loss in sensible spot, if we don't have to wait for the market hit stop loss?

2. I understand - this is an art, but can you give another pointer how to decide when to cut the loser???

I work about it every day... And it looks for me, that my losses are more than profits... And they happen more often...

I have tried to cut position with very tight stop (3 pips behind horizontal line)... Results were not very good...

So, I am just a little confused for now... It looks like I did myself complicated during my studies...

I did re-read this thread many-many times... Absorbed all ideas... But, I think I "don't see" something "in front my nose"... and I don't know what it is...

Please,Feb, help me to clarify this...


Thanks very much!!!

Sorry for my english...

what if its like 30 pips ??? lol

Hi Feb,

Based on your chart the Stop loss on E/U pullback would be about 30-40 pips. Would this be a problem if your target is around 20-30 pips I believe. Where would be your target on this one?

Do you practice the 20/20 SL and TP method that I believe was mentioned in the first few pages of this thread?

1)

a)In case of sudden surge of orders against your position.

b) In case you have a disconnection from your DSL or you broker.
Your charts can get frozen, unforeseen events of nature etc.

C) So you have room to wiggle in case you decide to trail the stop.

2)The loser's thread have some pointers on trade management. But, If you have some specific questions, just shoot....


The way I personally manage my trades are somehow different that I have stated on this thread. Remember, I am a high-frequency trader.
But still, if you have any concerns, let me know...

I lay a lot on the line on the loser's thread.

ok

Please mark this post. If you might, print it out or something.

Stop thinking about numbers!! ah.... it has to be 40 pips swing etc.

screw the 20/20 rule!....ok??

I started this thread with these numbers 'cause many people need training wheels. Especially, some people coming out of the indicator's nightmare. I say this with all respect, please I apologize in advance if I offend anyone.


The rule of 20 was something used a lot on YM (Mini futures) and for some reason forex adopted that rule. Right now, with this volatility, you can't use this rule or any number's fixed rule for that matter.

It's about time for you guys, to train your naked eye. The markets are an ever-changing environment. It's very hard to put a square box in a round hole. The box has to be adaptable to any shape and form.

Trading is an art. You need to move along with all the diverse shapes and form. This is why I prefer to teach people in their own thinking mode instead of giving them a canned set of rules ALA guru's.

Use a basic set of rules. The rest is you perception on the market you're trading.

Be right back ......stay tuned....my daughter is calling.

Dear Feb!!!

I am very thanksfull for your answer...

My specific question is about situations when market reverses right after order has been triggered...
Exactly such situation is the thing, about what are my troubles...
Exactly this one thing I can't to make good for now, and have ALL MY PROBLEMS... All my questions are around this moment...
I have read your post, where you say that if the last candle moves more than 50% against you, you are ready to hit the panic button... But I can't imagine this for me... Can you show it me on the chart... Exactly this moment is for me THE PROBLEM...

I am probably scalper too, because it is hard for me to see that the market reverses for more than -15 pips against my position...

So... Thank you for your help!!!

I am going to look for a post I made around Christmas...hold on

feb, I think is post 759 that your looking for.

"Guys.

As I said before, I feel grateful with all the good wishes I got. Surely help.

On the following days I'll be following this thread at least once a day. So we're going to keep the ball rolling.

First and foremost, I am a scalper by nature. I feel at the beginning of this thread, my scalper's nature came up and somehow the trade management is not up to my satisfaction. At least in the eyes of some who can't or won't scalp for whatever reason, which I totally respect.

I have some ideas but I will post it later.

Things are getting better healthwise.

Thanks so much to all the guys that kept this thread alive. I promise I will bring more good stuff to all of you. As I said first, we need to work out a more - gentle trade management so more traders can see the benefit of this great simple strategy."

I thinks this is post #661 not sure...I mixed my scalping trade management and with this "system II" in my view is hard to deal with.

In regards to dim's concerns,
I do this little thing called the 4th minute close of candel: on the occurence of price going against my postion right after trigger time I heavily analyse the 4th to 5th minute of that candel on wheather i stay with that trade or not. its been my experience that by the 4th minute the shape of the candel on how it will close it's been created or pretty much close to it. so, if it is a solid full candel in the making to close against my postion I will bailout on the last seconds of close and look for rentery or next bus.

Excuse me feb if I stuck my nose here.. your input is most useful in this matter.

Thanks.

looking for short on e-u @ 1.3563
looking for long on u-c @ 1.1102

It is a valid observation.

Guys' the idea of this thread is to give you a reference on market behavior.

As I started the thread, I had to use something to give people here a framework to deal with. But eventually, you need to develop your own sense. The markets are moving sand. I think this "system" is a good reference but don't dwell too much in a set of fixed rules..."buy here, sell there" because markets aren't fixed at all. This is why I get ironic about systems, strategies etc.

The best analogy I've seen on trading is just looking at a surfer. In order to catch the wave, he/she will get screwed many times. But that doesn't discourage the surfer. He/she keeps on and on until eventually he gets the big one.

I am not trying to invalidate what's been written on this thread. But the time for the training wheels is over, my friends.

Fxachilles has made a nice way to deal on trade management, based on candles. That's a good one.

Basic observation on the charts -based on the system II.

1) swing.

2) pullback.

3) entry spot.

Trade management - please do me a favor and don't place your stop too close to the heat. If you do, then adjust your load and be aware that the market has recently be there and could be orders still pending on this particular level(s).

Give the trade some room to go. If you follow me, you might go crazy. I am a high-frequency trader and my trade management differs from this one. If you like to take a peek on what I do, check the loser's thread in the journal section.

Use common sense . If you see that big candle coming at you like the cookie monster, something is odd. But don't go running because you see a hiccup. Look for obvious reversals. If you apply expectancy, here's where it plays a big role. You have your stops and targets and is evident that you expect the trade to go your way in a reasonable way at a reasonable time frame. ...But it has to be reasonable.

Don't trade on your toes!!! I've mention this before.

Observe the speed on the candles!! momentum....
This is an intrinsic part in your path of learning (oh shit, I sounded like Confucius!)

1)How fast is coming against your position
2) How fast is moving on your side.
3)is the market stalling???..I wonder what's going on??

Have this information collect at hand. It will make you more in tune to what the market is trying to do. This is not to "predict" but to "react".

I've notice that some people are forcing the trades. If is not there, just sit on your hands. If your setup is not present, why bother risking your ass??

You can't fight the news!! If you have announcements @8:30 or 10:00 , do yourself a favor and stay put. Liquidity dries up and your beloved broker will put the spread high like a kite on the sky.

I force people to think. If they fell, I pick them up. But you need to walk the walk..yo know??


As I said, from now on, the training wheels comes off . If you want to be profitable on this business, I'll take you to read the market's pulse.

I have the time and my health is improving. If you guys are interested, we take this onwards.

Look at me what I am talking to you!!!No more second -guessing. If you see a qualified setup, act accordingly. Don't wait for me or anyone here. Place this order without hesitation. If you fell on the floor, stand up, lick your wounds and keep moving.

feb
"I have the time and my health is improving. If you guys are interested, we take this onwards."


Count me in already, I am ready to go. I tried my hardest to keep the thread alive in your absent, along with prayers for your health and speedy return to the arena, it looks like the moment for this thread to get kicked up to the next level has arrived and I am all for it. as you said the other day there are good bread of new traders on board and I think they are eager and ready as well... lets do this feb.

God bless you and the whole gang.

cheers.

Wonderful to hear you are on the mend mate. Looking forward to your mentorship.

Cheers

Great!
I look at u feb, keep talking ^^

Count me in!!! You have my attention

Feb!

Thanks for clarifications... And I want to go forward!!! I'll not stop!!!

So, I'm with you, if you will count me in...!!!

long e-u

stop loss