1 trade a day

Is anyone using an ea for this system. I saw one in this forum but do not see much discussion about whether it is working.

We should not have the hedging problem if you switch you forex.com US to Forex.com UK. They actually emailed me and offered. All I had to do is fax an approval.

Are you using this EA? It looks great... I'm guessing 30min time frame, but with know who wrote it I am just guessing.

Gator-Trader

Here is an Indicator that works great to see the Asian Box.

Hello fellow traders...the system overall looks pretty good. I am a veteran trader for 5 years now and I trade something similar to this. I have a couple of suggestions that I use on my system. First, on a mechanical system like this if you trade with a 1:1 ratio you will see good results at first but will ultimately end up giving it all back at some point. Whether you risk 20 to make 20 or 100 to make 100. Either way you will have to win at least 50% of the time to just break even let alone make a profit. Lets face it, the best traders in the world average between 50 to 60 percent.

The way I trade my breakout system which is almost identical to this is keep the same entry rules and same tp level but set your SL to a fixed 25 to 30 pips. Once you are up 30 to 40 pips in profit then move your SL from 30 to 15. This way if the market continues in your profit direction then no harm. But, if it reverses on you then you will only get stopped out with 15 to 30 pips instead of 100 or so. If you get stopped out then immediately place you original entry back in with the same tp and sl levels. This way if the market comes back down then it will usually continue but if it doesn't come back to you entry then you only lost 15 pips instead of 100. Even if it comes back to enter you back in the market and reverses again and you lose 2 trades, you are still risking less pips then before. You can keep all the other rules the same. By doing this you now have around a 3:1 risk and sometimes 4:1 and you only need to win around a 25% to 30% of your trades to b/e instead of 50%. By doing this you will see your account grow faster then you ever have before.

I make around 1500 net pips per month off this strategy alone. Plus, if you are risking 5% of your account, you can now use more money than with a 100 sl or 60 or what ever the trade calls for.

Lets say for example that you have 1000.00 in your account. You are risking 5% on a trade. That means you can risk $50 on the trade. If you use a SL of 100 versus 30, look at the difference in your lot size. You can risk 1.66 per pip on a 30 pip SL versus a .50 on 100 pip SL. If the trade wins, then it is a difference between a $166 versus a $50 win by risking 5% on either.

Look at the difference if you use 1 lot per trade. It's a difference between risking $1000 versus $300. That is if you have a TP target of 100 pips. Sometimes you will target 60 and sometimes you will target 120. Your account will survive and grow much faster by using this type of ratio.

Some will argue that 30 SL is too close. Well yes and no. Scroll back on your screen for just 1 month and see how many trades would have entered you into the market then reverse the other direction. How many times did that happen especially if you trade multiple currencies. If you were trading 5 different currencies like this and they all retraced with 100 tp and 100 sl.....you would have lost 500 pips in one night. Now, look at it if you were risking 30 pips on those trades....150 pips loss instead of 500. Usually you will not have all currecies lose in the same night but I wouldn't want to risk it. Now look at the ones the didn't hardly retrace at all which would be all profit. Then look at the ones the retraced half way and then came back to take your profit. If you are completely honest with yourself when doing this you will see yourself winning around 40 to 50 percent of the time. Now take the 3:1 or sometime 4:1 ratio and see how much more money you would make.

If you are not an experienced trader than I would suggest you not trade all 6 of the currencies that were suggested but pick out a couple and start from there. Then work your way up to more. Money management is a very key factor with this type of trading as well. You are going to lose trades but you need to live to trade another day if you are stopped out a few times.

The system overall is a very good system to use with just a little tweaking.

I hope this helps.

Ufgators - thank you for a very informative post. I have been thinking about this strategy for some time, and your money management plan really makes this system far more viable. Thanks again.

Great monday morning for you all trading the GBPUSD with this system, certainly was for me.

http://i31.tinypic.com/v4xobd.gif

Yes, that was a nice trade. Do you have a tool that puts your Conserv TP, etc on the chart? It looks very neat and clean.

Hi Uf

Great advice

2 questions.

DO you use 100 % or 618 fib for tp ?

Do you use any trailing stop after you have moved sl first time to -15 pips ?

Thanks

On top of the ant_Gu breakout indicator you'll find all over the place, a couple of pages back in this thread you'll find the settings to put into your fibonacci retracement then just draw it across the range. You'll work it out

I am litle cofusied....

I play London Rush Asian Ses,that mean that i play only when Lodnon ses open :O or i can play earlier ? TOday i see that price broke my box but in that time London ses wasnt open... :S

Thanks George.

Thank you for your input and for sharing your experience. Some posts back someone asked about the TP-levels. Do you also use the 100 % and 61.8 % levels? What is your opinion about them? Also, do you have any opinion or experience with different breakout ranges?

Thanks again!

No problem

I use both....I use the 100 for my tp but move my sl into profit once it hits the 618 level. I watch to see how it reacts at this level. Usually when it hits the 618 level I am in profit by 40 to 60 pips. I will move my sl to either b/e or to +20. That way if the market starts to reverse I can't lose. One thing I absolutely hate to see is a winning trade turn into a losing trade. Never let this happen. By a winning trade I don't me being up 10 to 20 pips then come into a loss but when you are up several pips around 50 then that would result in a winning trade. Remember, almost always a currency will not go straight to 100 pips without some sort of retracement. So you still have to let the trade have room to breathe. So you don't want to have your SL too close when you are up. This area of trading will only getting better as you get more experience. There is no set number here but what ever you are comfortable with. I usually follow it by 40 to 50 pips after I move my SL to +20. I never set a TP level unless I am turning off my computer and going to bed. But if I am up watching the trade then I will just keep adjusting my SL. Once I am up 100 pips I will move my SL very tight to around 10 pips away. This way if the market keeps going up in my direction then I can grab and extra 20 to 30 pips. But if it comes back then I will grab a 90 pip trade. No harm there.

I don't use a trailing stop but doesn't mean it wouldn't work the same way. I just like to do it myself. If you are a new trader and can't adjust your sl quick enough then you might want to use a trail stop.

Also, the 618, 50 and 382 are the sweet spots with fibs. So I keep a close eye on these areas. I also mark all my s/r areas and watch those very close as well. For example, if I have a profit area of 100 pips but a major s/r line is 90 pips away, then I will set my sl very close to that area. Sometimes, depending on how strong the s/r area is, I will just take my profit around 10 away from the s/r area and be done with the trade. Also, jump over to the daily chart before you set up your trades and see if there are any s/r lines there. The daily s/r areas are much stronger than the hour s/r. I do this with any type of trading I do and it has saved me from a lot of trades that would have been losers. For instance, if you are getting ready to place your orders and you see a daily or even the hour s/r is only 10 or 20 pips away from your entry, then you might want to pass on the trade or wait to see how price reacts to this area.

Hope this helps.

Very quick question, in GMT, when do you start and end your range (box)?

Thanks

Hello, see my last post for some info on the fibs. But I will add to that post here. When using fibs on this type of trade you will have to run a separate set of fibs to get your true tp area. Because the way this trade strategy was designed, you stretch your fibs down where the 50% level is really where the 0 level would normally be. All this is doing is telling you where the price level is for the same amount of movement that the market moved during the asian session. So, what I do is run my fibs like the it says by stretching the fibs down and get my entrys and tp levels. But, after this I delete the fibs and run them like they are intended to do. I run my fib extentions as well. the 3 levels of extensions is where I pay close attention to. You will notice that the majority of the time price will hit one extension then retrace before it goes to its second and third extension. It does not always hit the 2nd and 3rd extension but usually always hits the first. But, if you notice when placing your trades, the entry price is usually close or at the first fib extension. So, now price is either going to reverse, go to the second extension or retrace. This is one of the reasons why setting your sl to 30 will eliminate several losing trades that would result in 60 to 100 or even 120 pips. I don't know about you but I would rather lose 30 pips over 100 any day. The bread and butter of my trading comes from fibs. I use NO indicators at all on any of my trading strategies. I don't have a lot of strategies because I don't need a lot.

As far as any other breakout strategies, I don't really have any because I more into reading the market than a mechanical approach. Although I use a mechanical approach like this, my fib trading strategy is my bread and butter of my trading. All I can say is if you want to trade using a breakout strategy, you want to use it where your entries are at the opening of the London or US open. This is where you get your bigger moves of 100 pips or so. A breakout strategy is rather easy to create. Just test your theory on a demo for awhile and make what adjustments you need. Just don't try to use a strategy like this after the london or US has been open for 2 or 3 hours. For example, I live in the EST of the US and the London opens at 3am here. I would not enter any type of trade using a breakout system at 6am. I would wait until the US opens.

I have been asked several times to create a post on my fib strategy trading so I will probably create one here real soon. It is rather easy to do and you never risk more than 50 pips on any trade. But has a TP level anywhere from 100 pips to 400 pips. The good thing about the way I trade fibs is you don't have to set in front of your monitor for hours. You come back to it about every 3 or 4 hours until you find a trade setup. Once you find your trade you just set it and your done. You don't need to look at it until the next day if you don't want. Plus it works on any currency. I look at 12 different currencies so I always have a trade each day. Each currency will produce 1 to 2 trades per week.

Hope this answered your questions.

I start this strategy from 00:00 to 08:00. Depends on your broker but that is from 6pm to 2am EST.

Hey ufgators

are you saying your range finishes at london open,your trades will only be entered after london open?

thanks

Yes that is correct.

Hey mate

but you say range ends at 2am EST, which is 1hr before london open

thanks