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Sonic R. System

  • #6,261
  • Sep 14, 2009 6:58am Sep 14, 2009 6:58am
Quoting damo9893
I am also long, i have been following this thread for about 3 months now, silently reading and learning. Last month everything started to click and i ended up making 20% profit in the month. I will now try my best to post my trades.

Thanks sonic and all the senior members here for all your generosity.
Im from Australia (any other auzzies here?) so i usually trade the UK and US sessions. I hope i can contribute some usefull information.

Thanks,
Damo
Hi Damo,

Nice to hear that you see the same thing as me. Just some question on TP1, I seem like the resistant is about 132.50 near the pivot point. Please explain. Thanks.
  • #6,262
  • Sep 14, 2009 7:04am Sep 14, 2009 7:04am
The main reason is to keep my risk to reward ratio around the 1:1 for the first TP. There is also some resistance at 132.80. I tend to use manual S/R lines more than the pivot lines to be honest.

Quoting p2pfast
Hi Damo,

Nice to hear that you see the same thing as me. Just some question on TP1, I seem like the resistant is about 132.50 near the pivot point. Please explain. Thanks.
  • #6,263
  • Sep 14, 2009 7:06am Sep 14, 2009 7:06am
Quoting p2pfast
Setup on EJ. Not executed Yet.

Buy Stop = 132.20
SL= 131.30
TP1 = 132.45
TP2 = 133.40

I fell that my entry is too late. If I put the entry immediately after the first candle close above the dragon, I will not know how far it will retrace. Please explain.

Please comment on the TP and SL as well. I am using the autopivot for this. Any better way to filter and double confirm?
Already hit TP1 = 132.45, +24pips. Move the 2 lot SL to 132.29, +9pips. Waiting for TP2 of 133.40.

I am using marketiva, I cannot put the stop loss at BE. Minimum is BE +9 pips. In this case, I cannot fully follow Sonic system.
  • #6,264
  • Sep 14, 2009 7:07am Sep 14, 2009 7:07am
Quoting p2pfast
Already hit TP1 = 132.45, +24pips. Move the 2 lot SL to 132.29, +9pips. Waiting for TP2 of 133.40.

I am using marketiva, I cannot put the stop loss at BE. Minimum is BE +9 pips. In this case, I cannot fully follow Sonic system.
Typo, should be BE +8pips.
  • #6,265
  • Sep 14, 2009 7:11am Sep 14, 2009 7:11am
Quoting p2pfast
Already hit TP1 = 132.45, +24pips. Move the 2 lot SL to 132.29, +8pips. Waiting for TP2 of 133.40.

I am using marketiva, I cannot put the stop loss at BE. Minimum is BE +8pips. In this case, I cannot fully follow Sonic system.
Lot#2 hit SL with +8 pips. May be I adjust the SL too soon. Should wait for 2nd Wave of retracement and rebound? Please advise
  • #6,266
  • Sep 14, 2009 8:08am Sep 14, 2009 8:08am
Quoting Rastaman
Is depth of the pullback back into the dragon also important, I mean if it retraces into the lower dragon ema is that a possible sign that this trigger may fail?
Do not read anything into the "depth of pullback into the dragon," as a long trade could be preceded by a pullback that goes below the dragon, and a short trade could be preceded by a pullback that goes above the dragon.

Quoting Rastaman
In that post, you mentioned an "Orderly Pullback" I presume it means a high breaking the upper tunnel line and then retracing only into the upper or red sonic tunnel dragon and not going sideways on the way down, for a long trade?
Quoting SpecialEd
Over the weekend, Ddaytrader was talking about the "orderly pullback" that is required before going long or short. Can you please give a clear understanding of what you mean by "orderly"? How far should it pull back to be considered "orderly"? How far is too far and therefore probably negates previous set-up?
The depth of the pullback should not matter except in terms of risk. If the pullback is too large, then the difference between the EP and the SL may become so large that the trade, while still a valid SonicR should it be triggered, represents too much risk to the trader.

By "orderly pullback," I do not mean to reference the depth of the pullback in anyway. The only limit to the pullback is one that invalidates the set up. For a long trade, the pullback limit is the previous low, and for a short trade, the pullback limit is the previous high. After all, for a long trade, we need a Low, a high, then a pullback to a higher low, and then a higher high on entry. If price pulls back and makes a lower low while anticipating a long trigger, the set up no longer exists. If price pullsback and makes a higher high while anticipating a short trade, the set up is no longer valid.

By orderly pullback I mean one where the range of the bars is contracting, and the bars might or might not overlap. The bars will likely have more closes opposite the trend than with the trend. That is, an orderly pullback in a downtrend will tend to exhibit a series of up closes, whereas a pullback in an uptrend will likely exhibit a series of down closes. Not every bar needs to close opposite of the trend. There may be several doji or near doji type bars during the pullback.

I do not like pullbacks where the range of the bars is expanding, or where the bars are large, overlapping almost completely, and alternating between up closes and down closes.

Here is a chart from todays GU price action. See how as the decline proceeded, GU had three small rallies, or upward drifting consolidations, which I would consider "orderly pullbacks," and a fourth consolidation that, in my opinion, is anything but orderly. I prefer to take SonicR entries and re-entries where the pullback resembled the first three, and I typically avoid an entry that is immediately preceded by a pullback/consolidation that resembles the fourth.

I have also included a second chart of the GU where I show the SonicR ep & sl.

I would add the following caution: These are are nearly text book pullbacks on the GU, and that disorderly pullback is likewise "text book." Do not expect text book ideals all the time. Some orderly pulbacks may be finished in just two or three bars. Others may rnage sideways for hours before they again break in the direction of the trade. And do not replace or forget that in the main, SonicR is all about highs and lows and lower highs and higher lows and support and resistance.

And I will put anyone on Ignore who decides to post an indicator to "screen for orderly pullbacks"(ok, Rastaman?).

Finally, be cautious of encumbering your trading with too may "rules" or "requirements." For example, I just wrote the above saying I look for orderly pullbacks before entry and avoid entries following a disorderly pullback, but for every "rule" such as that, there have been and will be exceptions. Now, someone no doubt will ask, "well, how do we know we should make an exception or not?" It is a bit like the US Supreme court answered when asked to define "pornography." They said, "We know it when we see it." And that is my answer. There are times where the rules can be relaxed or even ignored. Over time, you will come to recognize these instances. Sometimes the trade will go as planned. Other tmes it will result in a loss. That is all part of the game. You cannot avoid losses. You will not succeed if your foucus is on avoiding losses. Your focus must be on taking your set ups when they clearly and distinctly present themselves, and employing Sonic's money management to your equity.

In other words, be picky, but demand simplicity.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Order and Disorder2.jpg Size: 86 KB
Click to Enlarge Name: Order and Disorder4.jpg Size: 92 KB
  • #6,267
  • Sep 14, 2009 8:30am Sep 14, 2009 8:30am
Good stuff. Thanks again for such good detail.

Quoting ddaytrader
Do not read anything into the "depth of pullback into the dragon," as a long trade could be preceded by a pullback that goes below the dragon, and a short trade could be preceded by a pullback that goes above the dragon.





The depth of the pullback should not matter except in terms of risk. If the pullback is too large, then the difference between the EP and the SL may become so large that the trade, while still a valid SonicR should it be triggered, represents too much risk to the trader.

By "orderly pullback," I do not mean...
Up or down, gimme a ticket
  • #6,268
  • Sep 14, 2009 8:34am Sep 14, 2009 8:34am
Quoting damo9893
I am also long, i have been following this thread for about 3 months now, silently reading and learning. Last month everything started to click and i ended up making 20% profit in the month. I will now try my best to post my trades.

Thanks sonic and all the senior members here for all your generosity.
Im from Australia (any other auzzies here?) so i usually trade the UK and US sessions. I hope i can contribute some usefull information.

Thanks,
Damo
TP1 hit 52+ pips
SL moved to BE

Time for bed soon.

While i was writing this another trade triggered, i will post it in a sec.
  • #6,269
  • Sep 14, 2009 8:41am Sep 14, 2009 8:41am
Quoting damo9893
TP1 hit 52+ pips
SL moved to BE

Time for bed soon.

While i was writing this another trade triggered, i will post it in a sec.
Here is the other trade, it went up and hit my buy order and then reversed straight away
Attached Image (click to enlarge)
Click to Enlarge Name: 14_09_2009_nzd_usd.jpg Size: 277 KB
  • #6,270
  • Sep 14, 2009 11:40am Sep 14, 2009 11:40am
UJ M15: While many pairs have expended themselves in nice runs already today, this pair may be setting up for an upside move. Blue entry area IS NOT SonicR, and I am not suggesting a trade here because PA may just drop back thru Dragon and set up for a short. I am thinking "long" here because other pairs have played "dollar weaknes" for all it is worth, imho, and they may start moving in direction of dollar strength now. All said and done, we trade what the charts give us, not our bias.
Attached Image (click to enlarge)
Click to Enlarge Name: # 089.gif Size: 47 KB
  • #6,271
  • Sep 14, 2009 12:14pm Sep 14, 2009 12:14pm
Quoting traderathome
UJ M15: While many pairs have expended themselves in nice runs already today, this pair may be setting up for an upside move. Blue entry area IS NOT SonicR, and I am not suggesting a trade here because PA may just drop back thru Dragon and set up for a short. I am thinking "long" here because other pairs have played "dollar weaknes" for all it is worth, imho, and they may start moving in direction of dollar strength now. All said and done, we trade what the charts give us, not our bias.
similar thoughts with u T.

g/u broke off its up trend channel. i miss the shorts earlier on. hmm waiting~
Attached Image (click to enlarge)
Click to Enlarge Name: gu.jpg Size: 199 KB
trade safe
  • #6,272
  • Sep 14, 2009 12:26pm Sep 14, 2009 12:26pm
Quoting damo9893
I am also long, i have been following this thread for about 3 months now, silently reading and learning. Last month everything started to click and i ended up making 20% profit in the month. I will now try my best to post my trades.

Thanks sonic and all the senior members here for all your generosity.
Im from Australia (any other auzzies here?) so i usually trade the UK and US sessions. I hope i can contribute some usefull information.

Thanks,
Damo
1st of all, let me welcome u on behalf of all sonikers.

gr8 to see more pple joining.

we belive tat sharing is caring and always rem, no pic no talk.

u e/j trade, tp1 on bag.

shift ur s/l if u are comfortable.

rgds
Attached Image (click to enlarge)
Click to Enlarge Name: ej.jpg Size: 187 KB
trade safe
  • #6,273
  • Sep 14, 2009 12:32pm Sep 14, 2009 12:32pm
Quoting p2pfast
Lot#2 hit SL with +8 pips. May be I adjust the SL too soon. Should wait for 2nd Wave of retracement and rebound? Please advise
IMO, E/J and G/J pair are volatiles pairs and if u set a tight s/l too fast w/o any technical S/R to play is not very proper to me.

but den again, diff pple has diff MM. some protect capital, some maximize their R:R, some just set t/s and leave it.

more to come.
trade safe
  • #6,274
  • Sep 14, 2009 1:05pm Sep 14, 2009 1:05pm
Here is the UJ with a couple of orderly pullbacks highlighted in yellow. The first is what I watch for to take a SonicRe-entry.
I did not take the long entry, though the Yen futures are displaying a very nice SonicR short, which implies higher price for the UJ.
Attached Image (click to enlarge)
Click to Enlarge Name: UL 09-14-2009 Orderly Pullback1.jpg Size: 127 KB
  • #6,275
  • Sep 14, 2009 1:09pm Sep 14, 2009 1:09pm
I also want to welcome the new Sonikers. Keep studying and keep sharing your charts. We all learn together, and you will find nothing helps your learning better than posting your trades and having other Sonikers discuss your trades.

Good Luck to All!

PS Also, let's keep the chit chat to a minimum, and, as ZZ said, remember rule 31:

No Picture, No Post!
  • #6,276
  • Sep 14, 2009 1:10pm Sep 14, 2009 1:10pm
GU: This is what I am watching for. It likely could take into next day to develop.
Attached Image (click to enlarge)
Click to Enlarge Name: # 090.gif Size: 52 KB
  • #6,277
  • Sep 14, 2009 1:38pm Sep 14, 2009 1:38pm
Quoting ddaytrader
I also want to welcome the new Sonikers. Keep studying and keep sharing your charts. We all learn together, and you will find nothing helps your learning better than posting your trades and having other Sonikers discuss your trades.

Good Luck to All!

PS Also, let's keep the chit chat to a minimum, and, as ZZ said, remember rule 31:

No Picture, No Post!
Rule 31? LOL were there suppose to have so many rules!!

oh... chit chat to minimum. i almost forgotten.


traderathome, g/u is going for the LH. waiting for the LL.

lets see.
Attached Image
trade safe
  • #6,278
  • Sep 14, 2009 1:41pm Sep 14, 2009 1:41pm
In trading study is the fastest thing which help u slowly and gradually.
FxHome
  • #6,279
  • Sep 14, 2009 1:48pm Sep 14, 2009 1:48pm
Quoting zz_zhang
Rule 31? LOL were there suppose to have so many rules!!
And there will be a quiz tomorrow on rules 1-30!
  • #6,280
  • Sep 14, 2009 1:53pm Sep 14, 2009 1:53pm
Quoting ddaytrader
And there will be a quiz tomorrow on rules 1-30!
,..

Omg, i think i will stick to Muhammad' s method

In trading study is the fastest thing which help u slowly and gradually.

Need to study and brush up the rules again.
trade safe
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