System 2 (AUD trading)

I have been mucking around with oanda charts. They are very crap charting.

Not this has to do with anything but their Fib tool is shocking. It just makes more FUD then anything :/
No i dont use fib btw, you see it on the chart as I was playing around being bored

Maybe I should have played number 2 better , I think I fluffed that trade , waht do you think guys?

Anyawys, back in the trade. Poor form En0x, poor form on that trade. Testing 9318 , will see how it goes. Will play #2 properly this time/

Entry was 9313.

OK, I am in 2 minds about posting the below, as it may confuse or cloud the issue for some. But I'll post it anyway and if people find it not appropriate I'll remove it....

en0x asked earlier whether I target or exit based on price action. The answer is a mix of both. There's a fair amount of discretion involved in my trading, which I will try and describe over the coming weeks. I am a full time scalper (operating off second charts) so I am very much used to reading the ticks as they come in. This reading of ticks is what I based my decision to go for a target or exit on PA. Although excellent, I don't really use fxachilies' defensive strat on trade management as I trust my own ability to make the correct decision the majority of the time. We have to trade in a way that is comfortable to ourselves after all.

As for the merits of AUDUSD itself - I believe it to be a worthwhile pair to trade, but I don't believe you can apply the exact same trade parameters that are used for the EURUSD. The Aussie is appealing because it doesn't suffer those difficult to trade through spikes that you see particularly on Sterling pairs, and the swings as a result are "nice and smooth". Don't discount this characteristic off hand - smooth movers make it a lot easier to sit in a position through the heat of battle (much easier to relax). Off course I'm talking about this in the context of suitable trade times (ie non news and appropriate market hours).

So, many have noted that the runners are small in comparison to the Euro. This is an accurate assessment. This is where the altering of certain parameters comes into play. History has shown that the average volatility of the Aussie is about 65-75% of the Euro. Knowing this we can alter our maximum stop loss position (and increase load to compensate if you wish) to more closely match the average volatility of the Aussie. What I have done is alter my max SL to on average 16 pips and have increased load accordingly. Of course I am speaking in general terms; sometimes my SL will be larger if I don't like where it's positioned etc.

By the way, don't take any of the above as gospel - you all need to do the necessary amount of backforward testing so that you can have confidence in what I am talking about. A very successful trader I know once told me to always "trust but verify" information given.

Let me know if any of the above is unclear.

Shodd, seems like you and AUD are long time lovers
yeah, its damn slower but more predictble. I will try stick to it without going mad.

LOL not quite

I like AUD for this approach, but there's no way I would scalp her...

Do some backtesting with smaller SL and increased load. You might be surprised.

Its pay day this Friday and the first thing on my pay day list is forextester 2
that is my fun time for the next few weeks while forward testing, is to back test AUD trading this ideology


I can trade one bar a time manually so it is perfect during those down times (aka at home ;P )

hi,
i wonder if it is possible to trade the audusd ´with the system II rules like we used from the very beginning of the system II thread.
I took this short after 38 Pips swing and a retracement less 50%
My SL is 0,9315 and i will trail it by chance

EDIT: SL trigert

Morning folks.

Pending order in short @ 0.9282

short .9282 the swing is only 16 pips, retrace 11 pips so target would not be much more than 10 pips

Morning, looks like we're both short now at 9282.

Trade I am in now.

Good morning from the blessed land down under
Another wonderful day in Sydney here. Lets see if AUD wants to let up and lets see what we can do with her.

Tomorrow I am getting the Forextester software, going to spend the weekend backtesting AUD during our trading time (10am Sydney - 11pm Sydney) and see how she plays out over the last 3 months.

morning,
was busy writing , missed ure post

hi, en0x
very interisting
with the last short, u play #2 or #G+?

This is a great question...

Honestly, I was thinking of playing #2g+ and this is what we need to test here and what we are doing.

I actually played it with a hard stop above the HH (as shown with the red line) , price came through the break but I decided to see if a pullback was going to form.

we need to figure out, shall we play the exit rules as they stand ? they where very well tested and proven in EUR or shall we use the standard #2 exits?

I honestly dont know , I think we need to test this. I am going to do some serious testing this weekend (manual backtesting)

Example of another play.

So now we have another example of I dont know how AUD reacts. With EUR you would discoun this level 9270 (support) and trade it as #1 or jus take profits at targets such as this.

we really need some testing.

right now I am playing just these, #2 for fakeouts (remember #2 says that when price comes back to the breakeven point, you asses back at that level in case it breaks, this time the bear candle was SOLID and hard so break was very much possible, hence why I didnt close at break even) and number 1 for all trades. Now the question, normally we would consider trades above oh,, say around 12 for EUR as a semi fakeout and play a #1 to preserve and to take max profits. I dont know what we should judge in AUD, because 10 pip candle is pretty damn big in AUD

This is why I was hopign to take in some of Shodds experiance with AUD in general./

RBA bulletin 11.30, RBA Assist Gov Debelle speaks 12pm

Yen and Euro down after Tokyo open which suggests that USD is driving this move (as per usual really). Euro is at 50 at the moment, which is causing the other 2 pairs to stutter. Be nimble...

Euro holding below 50 atm which is good. Aussie just broke the low of the 11:10 bar so also positive. Hang tight but be nimble.

I'll be out on a breach of 76, so 6 in the can guaranteed