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The Daily Fozzy Method

  • #1,961
  • Apr 17, 2007 3:54pm Apr 17, 2007 3:54pm
Quoting coolshades
gman, start from the beginning is as condensed as it gets

Thanks. Wasn't sure if there were some changes as time went on and such. Reading shall commence.
  • #1,962
  • Apr 17, 2007 4:11pm Apr 17, 2007 4:11pm
Quoting gman29
Thanks. Wasn't sure if there were some changes as time went on and such. Reading shall commence.
The core of fozzy is still the same. Some of us have just added our own little bits and pieces.

The system on the first page works fine, the rest is just some fine tuning
  • #1,963
  • Apr 19, 2007 10:26pm Apr 19, 2007 10:26pm
Hello All!

I have (finally) finished reading all 131 pages of posts. It has taken me several days but it is amazing info. I feel like I should get some sort of merit badge just for making it through the thread! Hopefully, my "merit badge" comes in pip form.

I am extremely new to this and I have so far shown an amazing propensity for losing large sums of money very quickly. It is my intention that the Fozzy will help to reverse that trend.

I will probably hit you guys with some quick initial questions, but here is my first:

There has been a LOT of discussion here about how/where/when to take profit. I have one simple suggestion that I don't remember seeing mentioned. Why not simply take profit when RSI crosses back over? This virtually guarantees that you will be on board for the "big moves", although it also makes it very likely that you give a significant portion of profits back.

Specifically, I would think that holding until you see a reverse cross would be best for those feathering in/out with multiple contracts. In other words, hold the 1st contract until a preset profit level and then let the 2nd contract ride until the RSI crosses over. If you are holding 3 contracts, close the 1st and 2nd at preset profit levels and let the 3rd one ride.

Looking back at the historical charts, this shows that some of of those last contracts would have been held for 300-, 400-, 500-pip moves or more.

Please note that I'm not suggesting that you don't employ stops on the last contract. You can still move up the stop on that last contract so that you are still locking in progressive profits as the "big one" continues to move, but you wouldn't actually manually close the contract unless you see a reversal of the RSI and MA.
  • #1,964
  • Apr 20, 2007 7:50am Apr 20, 2007 7:50am
Hello Bytebodger.................welcome to Fozzy trading!

Your idea/suggestion to let the final contract of a multiple contract trade continue until there is a reverse cross of the RSI and MA has some merit. But as you say, doing this would mean giving back a significant amount of the profit on that contract. I think you will find that allowing the last contract to continue with an appropriate trailing stop will gain greater, or at least, equal profit. (For those who have time to check the trade during the day, manual movement of the S/L as a part of discretionary trading is a good alternative.) However, I suggest you do some additional backtesting with several currencies and share your findings with us.

Quoting Bytebodger
Hello All!

I have (finally) finished reading all 131 pages of posts. It has taken me several days but it is amazing info. I feel like I should get some sort of merit badge just for making it through the thread! Hopefully, my "merit badge" comes in pip form.

I am extremely new to this and I have so far shown an amazing propensity for losing large sums of money very quickly. It is my intention that the Fozzy will help to reverse that trend.

I will probably hit you guys with some quick initial questions, but here is my first:

There has been a LOT of discussion here about how/where/when to take profit. I have one simple suggestion that I don't remember seeing mentioned. Why not simply take profit when RSI crosses back over? This virtually guarantees that you will be on board for the "big moves", although it also makes it very likely that you give a significant portion of profits back.

Specifically, I would think that holding until you see a reverse cross would be best for those feathering in/out with multiple contracts. In other words, hold the 1st contract until a preset profit level and then let the 2nd contract ride until the RSI crosses over. If you are holding 3 contracts, close the 1st and 2nd at preset profit levels and let the 3rd one ride.

Looking back at the historical charts, this shows that some of of those last contracts would have been held for 300-, 400-, 500-pip moves or more.

Please note that I'm not suggesting that you don't employ stops on the last contract. You can still move up the stop on that last contract so that you are still locking in progressive profits as the "big one" continues to move, but you wouldn't actually manually close the contract unless you see a reversal of the RSI and MA.
  • #1,965
  • Apr 21, 2007 2:59pm Apr 21, 2007 2:59pm
Have only just started trading the Forex and even now am considering giving my shirt away before losing even that.

I have read through the threads on Wealth Builder only to find that you guys have given it the thumbs down.

Before I do the same with Fozzy - two questions if you please.

1. Is it a 'goer', does it work.
and
2. Is there a quick way to find the system or do I have to trawl through (I think) 130 pages of threads.

ANY ANY ANY ANY help would be most apreaciated.

Virgins - a dying breed

Keithf.ed
  • #1,966
  • Apr 21, 2007 3:09pm Apr 21, 2007 3:09pm
Quoting keithf.ed
Have only just started trading the Forex and even now am considering giving my shirt away before losing even that.

I have read through the threads on Wealth Builder only to find that you guys have given it the thumbs down.

Before I do the same with Fozzy - two questions if you please.

1. Is it a 'goer', does it work.
and
2. Is there a quick way to find the system or do I have to trawl through (I think) 130 pages of threads.

Now, having said that, there is a new e book in one of the thread in the Fozzy sub-forum.

ANY ANY ANY ANY help would be most apreaciated.

Virgins - a dying breed

Keithf.ed
I got to tell ya, it kind of sounds like you do not want to put in the effort or work... how long can it take to read everything on the Fozzy method? Do you really want to trust your money to an incomplete picture of it? Trading and learning to trade takes time and effort.. I wish you the best, but this business is anything but easy.

You sound like you are up to the challenge, best wishes on your edification.

Now having said that, there is a new e book in one of the threads in the Fozzy sub Forum
  • #1,967
  • Apr 21, 2007 3:29pm Apr 21, 2007 3:29pm
Quoting keithf.ed
Have only just started trading the Forex and even now am considering giving my shirt away before losing even that.

I have read through the threads on Wealth Builder only to find that you guys have given it the thumbs down.
The Vegas wealth builder works fine and is profitable long term. Only problem is you may have to wait months to get a signal to trade.

Quoting keithf.ed
Before I do the same with Fozzy - two questions if you please.

1. Is it a 'goer', does it work.
and
2. Is there a quick way to find the system or do I have to trawl through (I think) 130 pages of threads.
Yes Fozzy works. But like any system you need to backtest it and demo it first.

If you blindly trade every signal you will get eaten up. This is why you must demo it to get a feel for the system.

Having to read 130 pages of info to gain a gift such as Fozzy doesn't seem a chore to me.

You only get out what you put in. If the effort of reading this thread is too much then perhaps trading is not for you.
  • #1,968
  • Apr 21, 2007 3:45pm Apr 21, 2007 3:45pm
Wow,

only posted my message 30 minute sago and have received constructive replies already.

Please do not think I have entered into trading lightly, I haven't. However I am sure, like every novice I want everything now.

There is so much information available out there and if I read it all I would just get confused. I want to limit my reading to what is important and neceesary to become successful.

Sorry if my initial message sounded flipant, i am in this for the long haul and the resultant profits and believe me, am fully aware that it is definately a craft that has to be learnt

Keithf.ed
  • #1,969
  • Apr 21, 2007 5:09pm Apr 21, 2007 5:09pm
OK............now that you have repented from the error of your first post.....

Read this as an opener...........http://www.forexfactory.com/showpost...73&postcount=1

However like scott and willf, I will repeat that reading this ENTIRE thread is really a pre-requisite for successful Fozzy trading. It's worth the effort because this method IS profitable when properly applied, but experience is needed and reading this thread while practicing is the only way to go. All the best............

Quoting keithf.ed
Wow,

only posted my message 30 minute sago and have received constructive replies already.

Please do not think I have entered into trading lightly, I haven't. However I am sure, like every novice I want everything now.

There is so much information available out there and if I read it all I would just get confused. I want to limit my reading to what is important and neceesary to become successful.

Sorry if my initial message sounded flipant, i am in this for the long haul and the resultant profits and believe me, am fully aware that it is definately a craft that has to be learnt

Keithf.ed
  • #1,970
  • Apr 22, 2007 3:47am Apr 22, 2007 3:47am
Thanks BB for the few kind words. Have settled down with a cup of tea and started my reading.

Cheers again to scott and willf for their advise.

Keithf.ed
  • #1,971
  • Apr 22, 2007 10:47am Apr 22, 2007 10:47am
Also, there is a summary on page 102 by fresian, very well done.

Quoting keithf.ed
Thanks BB for the few kind words. Have settled down with a cup of tea and started my reading.

Cheers again to scott and willf for their advise.

Keithf.ed
Taking Life One Pip At A Time I officially have my own opinion.
  • #1,972
  • Apr 23, 2007 1:34am Apr 23, 2007 1:34am
I have been trading fozzy now for few weeks and overall i am still in profit... not much but i think it was just a bad last week with crazy stuff happening with GBP/USD anyway here is my observation

Almost 90% of the loser trades go to your direction too atleast for few pips so i was thinking will it be profitable to put 20 pips target on every cross and thats it but when i look at that from RR it doesnt look so good so i need advice from those who are trading this for long time... Do you make most of the profit on the trend change and swings or from your first lot which for most is few pips TP.

I am wondering if anyone else agree that its a good idea but keep in mind it will only take one loser trade to wipe out your 3-5 good trade profit... So what do you guys say?

Also anyone else who found some good filter and hasn't shared yet please do so it might help others
  • #1,973
  • Apr 23, 2007 7:55am Apr 23, 2007 7:55am
Quoting jaree
Almost 90% of the loser trades go to your direction too atleast for few pips so i was thinking will it be profitable to put 20 pips target on every cross and thats it but when i look at that from RR it doesnt look so good so i need advice from those who are trading this for long time... Do you make most of the profit on the trend change and swings or from your first lot which for most is few pips TP.

I am wondering if anyone else agree that its a good idea but keep in mind it will only take one loser trade to wipe out your 3-5 good trade profit... So what do you guys say?

Also anyone else who found some good filter and hasn't shared yet please do so it might help others
First of all, your statement about 90% of trades being positive at SOME time is true of almost ALL trades - whether they are fozzy trades or not. The nature of the markets is such that almost ALL positions - regardless of your chosen strategy - will have been positive by at least a few pips at some point in their duration.

Second, if you cut your TP to a very low level you are essentially turning the fozzy system into a scalping method. I'm not saying that such an approach is not feasible (although I personally doubt it), but the fozzy system is basically the antithesis of scalping. Fozzy relies on relatively few trades held for relatively long periods of time and monitored on a very scant basis. Scalpers make many more trades, hold them for much shorter periods, and often sink many hours into staring at their monitors. So I am skeptical about any approach that applies scalping methodology to the fozzy.

And yes, your R:R observation is valid. R:R management is probably most problematic for the scalper because it is so easy to wipe out a day's, week's, or even a month's worth of good returns if you're not very careful.

Fozzy trading (or any trading method based on daily bars/candles), is designed to hit the "big moves". You make some here, you lose some there, and then one day you wake and found that you've made 200+ pips on single trade.

Again, I'm not saying that your idea is invalid, but I would have to see some hard backtesting (and forward testing) results before attempting to pursue it.
  • #1,974
  • Apr 23, 2007 8:49am Apr 23, 2007 8:49am
hallo
can someone point me (please) at the rules (the update rules) of this method ?
by the way, what are they percent of the profitable trades?

thanking you in advance

btfl
  • #1,975
  • Edited 9:57am Apr 23, 2007 9:31am | Edited 9:57am
Look here:

http://www.forexfactory.com/showpost...73&postcount=1

and here;

http://www.forexfactory.com/showpost...postcount=1523

Quoting btfl
hallo
can someone point me (please) at the rules (the update rules) of this method ?
by the way, what are they percent of the profitable trades?

thanking you in advance

btfl
  • #1,976
  • Apr 23, 2007 9:55am Apr 23, 2007 9:55am
I agree with Bytebodger..............Fozzy trading is not 'day-trading'. If it's your goal to 'scalp' 20 pips or so from the market each day, there are better methods for that. Fozzy trading is about trades that last days, or in some situations even weeks. The excellent e-book produced by 'the bhoy' explains how to use the signals that are the basis for this method to identify a trend change and then trade with the current trend for as long as it is profitable to do so. And it goes without saying that prudent RR and MM would dictate not doing what you suggest.

Quoting jaree
I have been trading fozzy now for few weeks and overall i am still in profit... not much but i think it was just a bad last week with crazy stuff happening with GBP/USD anyway here is my observation

Almost 90% of the loser trades go to your direction too atleast for few pips so i was thinking will it be profitable to put 20 pips target on every cross and thats it but when i look at that from RR it doesnt look so good so i need advice from those who are trading this for long time... Do you make most of the profit on the trend change and swings or from your first lot which for most is few pips TP.

I am wondering if anyone else agree that its a good idea but keep in mind it will only take one loser trade to wipe out your 3-5 good trade profit... So what do you guys say?

Also anyone else who found some good filter and hasn't shared yet please do so it might help others
  • #1,977
  • Apr 23, 2007 10:27am Apr 23, 2007 10:27am
Quoting BeachBum
I agree with Bytebodger..............Fozzy trading is not 'day-trading'. If it's your goal to 'scalp' 20 pips or so from the market each day, there are better methods for that. Fozzy trading is about trades that last days, or in some situations even weeks. The excellent e-book produced by 'the bhoy' explains how to use the signals that are the basis for this method to identify a trend change and then trade with the current trend for as long as it is profitable to do so. And it goes without saying that prudent RR and MM would dictate not doing what you suggest.
Thanks BB

Only backdraw to this is R:R atleast for me because daily target of 20 pips is enough for me but again R:R is not so good but i will still give it a try on Demo and lets see how it goes but wont be putting real money on this anytime soon
  • #1,978
  • Apr 23, 2007 10:48am Apr 23, 2007 10:48am
Think about trying this: pick a currency pair; look back on the Daily chart for a year at all the Fozzy signals. How many would have yielded you 20 pips before S/L was reached? How many would have resulted in a loss? What's the total P or L? Still want to trade this way? Try other pairs. Work for you? Let us know your results...........I'm curious........

Quoting jaree
Thanks BB

Only backdraw to this is R:R atleast for me because daily target of 20 pips is enough for me but again R:R is not so good but i will still give it a try on Demo and lets see how it goes but wont be putting real money on this anytime soon
  • #1,979
  • Apr 23, 2007 2:23pm Apr 23, 2007 2:23pm
beach you are in a generous mood!

Quoting BeachBum
Look here:

http://www.forexfactory.com/showpost...73&postcount=1

and here;

http://www.forexfactory.com/showpost...postcount=1523
  • #1,980
  • Apr 23, 2007 2:31pm Apr 23, 2007 2:31pm
Ahhhh.....my friend cool; 'fresian' and "the bhoy' have made it sooooo easy!!!.............

Quoting coolshades
beach you are in a generous mood!
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