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Bringing Down the Forex House

  • #21
  • Nov 18, 2009 9:21pm Nov 18, 2009 9:21pm
Madness,

Did a trade on the EUR/JPY at 7:15 EST and got 20 pips. It went over 50 pips total. I'll keep demo trading this and posting my trades.

Thanks
  • #22
  • Nov 19, 2009 2:07am Nov 19, 2009 2:07am
MAdness.. I am a PA trader and normally wont even look at indicators but you are using them for the right reason and that is to give you an edge.. I like that so I will enjoy watching this develope.

I trade euro and pound using ranges and started a thread.. lots of hard work so my hat goes off to you for doing this.

Anyone that has not started a thread and had to answer all the stupid questions has no idea how fustrating it is.. explaining what is simple to you becasue you know it so well can be very difficult.

cheers for the system.
  • #23
  • Nov 19, 2009 8:31am Nov 19, 2009 8:31am
Quoting Eminiforex
Madness,

Did a trade on the EUR/JPY at 7:15 EST and got 20 pips. It went over 50 pips total. I'll keep demo trading this and posting my trades.

Thanks
Eminiforex,

No, i missed that trade but im glad you caught some of the pips!!!

MADNESS
  • #24
  • Nov 19, 2009 8:37am Nov 19, 2009 8:37am
Quoting Duke900
MAdness.. I am a PA trader and normally wont even look at indicators but you are using them for the right reason and that is to give you an edge.. I like that so I will enjoy watching this develope.

I trade euro and pound using ranges and started a thread.. lots of hard work so my hat goes off to you for doing this.

Anyone that has not started a thread and had to answer all the stupid questions has no idea how fustrating it is.. explaining what is simple to you becasue you know it so well can be very difficult.

cheers for the system.
Duke,

Yes, trading successfully is finding an edge and STICKING TO IT...most unsuccessful traders over trade (too many lots & too many trades) and change their strategies over and over, but what they haven't realized is that each system they trade is based on the past few months, which in reality is a VERY small history of the market. You would have to find something that makes sense to you and makes sense trading. I believe that this strategy is a great way to have some edge in this hectic market. just hard to master at first

Hopefully the thread keeps me even more disciplined.

Good trading to you duke!

MADNESS
  • #25
  • Nov 19, 2009 8:38am Nov 19, 2009 8:38am
Quoting opie999
Ok. We'll give him a chance and then start bashing him.

Actually, I'm looking forward to seeing how this develops. I appreciate the simplicity of it so far.

opie,

Thanks for the chance!

MADNESS
  • #26
  • Nov 19, 2009 9:00am Nov 19, 2009 9:00am
HiLo MAs & BBands Explained

ok, i will try to explain in more detail about the way i trade using the HiLo MAs with the help BBands on the 30M chart. If you take a look at the attached chart it shows that where the price is trading at compared to where the MAs are says a great deal of information. With knowing that you can trade off of the 5M chart anyway you see fit (which leaves entries and exits somewhat up for grabs depending on your 'trader personality'). Personally i have been trading off the 5M chart with a bunch of different strategies that i feel i have developed just by the countless hours that i have been trading fulltime. Will go more into details after this short lesson on the MAs & BBands.

take a look at the attached image to get a better idea.

MADNESS
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPY-MAs.jpg Size: 162 KB
  • #27
  • Nov 19, 2009 4:38pm Nov 19, 2009 4:38pm
Quoting Madness
HiLo MAs & BBands Explained
ok, i will try to explain in more detail
take a look at the attached image to get a better idea.
MADNESS
Madness,
Picture starts clearing now. Thanks for the explanations.
Subscribing to this thread now and keeping an eye.....
  • #28
  • Edited 5:33pm Nov 19, 2009 4:52pm | Edited 5:33pm
Madnsess,

1) Are you using default settings for the BB ? I have Length=20, Deviation=2, MoneyRisk=1, Signal=1, Line=1 (which from your charts look that you are also using).

2) Your method should work well in trending markets. What is your experience so far with ranging ones? I guess we need to define trending/ranging in M30 timeframe.

Thanks.
  • #29
  • Nov 19, 2009 6:43pm Nov 19, 2009 6:43pm
if its ranging then PA should be between the MA thus keeping you out of any trades
  • #30
  • Nov 20, 2009 7:55am Nov 20, 2009 7:55am
Quoting kostas1
Madnsess,

1) Are you using default settings for the BB ? I have Length=20, Deviation=2, MoneyRisk=1, Signal=1, Line=1 (which from your charts look that you are also using).

2) Your method should work well in trending markets. What is your experience so far with ranging ones? I guess we need to define trending/ranging in M30 timeframe.

Thanks.

Kostas,

Glad to hear you are finding the thread helpful towards your trading!

1. Yes.
2. This method works great for ranging markets, but when looking at 30M charts, not too much ranging going on outside the HiLo MAs (filters out trades and/or small losses)

Hope that helped!

MADNESS
  • #31
  • Nov 20, 2009 8:22am Nov 20, 2009 8:22am
Counter Trend Trading:

When trading this method, you do not always have to keep going with the trend, especially when you start to believe that the 30M chart is heading into major S/R or its just exhausted. The way I countertrend trade is being very patient and waiting for a some sort of signal to show that price is being a bit overbought or oversold. And i do this by waiting for long wicks on the 30M chart showing exhaustion (which means waiting for the candles to close). After i notice that the rally is having trouble going higher i will then wait for a spike in the 5M before getting into the market using the highest/lowest price as a SL. There must be though, at least 50 pips between the Price and the HiLo MAs, showing a strong rally.

For me counter trend trading is bit more riskier than going with trend, so i do not trade a full size and i am looking for price to head back towards the HiLo MAs on the 30M chart as my exit strategy. The main reason to counter trend is when the move happens and you missed it (ex. wake up after london's session and GBP/USD is down 250 pips better risk reward to play pullback). Just remember to trade smaller when taking these trades.

For me, a successful trader can switch gears quickly without 'self doubt' or '2nd guessing.' Another thing that i would like to mention here is that you should be able to tell what type of market you are in by your losses, if you take 1 or 2 losses with the trend, switch gears! the market is telling you to! just much harder to ACTUALLY DO.

Let me show a chart to get a better idea...

MADNESS
Attached Image (click to enlarge)
Click to Enlarge Name: CounterTrend.jpg Size: 171 KB
  • #32
  • Nov 20, 2009 9:00am Nov 20, 2009 9:00am
Are the 21 ma's ema's or sma's? Nice thread by the way.
  • #33
  • Nov 20, 2009 9:05am Nov 20, 2009 9:05am
Quoting Madness
Kostas,

Glad to hear you are finding the thread helpful towards your trading!

1. Yes.
2. This method works great for ranging markets, but when looking at 30M charts, not too much ranging going on outside the HiLo MAs (filters out trades and/or small losses)

Hope that helped!

MADNESS
Thank you for this system. It also appears to work well with 1 and 5 minutes.
  • #34
  • Nov 20, 2009 9:11am Nov 20, 2009 9:11am
COUNTER TREND TRADE PART II
Here is another example of a successful counter trend trade in the EUR/JPY.
Notice the hammers on the 30M chart...

NOTE: One thing that i have noticed over the countless hours of intra-day trading is that a bottom/pullback takes alot longer to form that most think. Most amateur traders will start buying while the price action is still falling, not being patient enough to actually make the 'right' trade decision during their trading.

check chart for more details...

MADNESS
Attached Image (click to enlarge)
Click to Enlarge Name: CounterTrend II.jpg Size: 159 KB
  • #35
  • Nov 20, 2009 9:13am Nov 20, 2009 9:13am
Quoting lgtj
Are the 21 ma's ema's or sma's? Nice thread by the way.

lgtj,

Thank you!
The 21 HiLo MAs are Simple Moving Averages.

MADNESS
  • #36
  • Nov 20, 2009 9:16am Nov 20, 2009 9:16am
Quoting aelimian
Thank you for this system. It also appears to work well with 1 and 5 minutes.

Aelimian,

Glad to hear that this system is working for you! Yes, you can use this system with any TF you see fit.

MADNESS
  • #37
  • Nov 20, 2009 10:26am Nov 20, 2009 10:26am
Enjoying reading about your trading method. I see that the barracudas have crawled out from under their rocks already to bash the thread but have backed off a little. We can't all be as intelligent or perceptive as these "gentlemen" but most of us can bumble along in our own humble fashion trying to learn from each other exchanging ideas and asking questions. Hopefully we can avoid making "pronouncements" and keep the BS, such as this post, to a minimum.

THANKS FOR YOUR TIME AND CONTRIBUTIONS TO OUR TRADING EXPERTISE. KEEP UP THE GOOD WORK!
  • #38
  • Nov 20, 2009 11:03am Nov 20, 2009 11:03am
Quoting Madness
Duke,

Yes, trading successfully is finding an edge and STICKING TO IT...most unsuccessful traders over trade (too many lots & too many trades) and change their strategies over and over, but what they haven't realized is that each system they trade is based on the past few months, which in reality is a VERY small history of the market. You would have to find something that makes sense to you and makes sense trading. I believe that this strategy is a great way to have some edge in this hectic market. just hard to master...
Sticking to your strategy is the KEY to your success .. I heard this dozens of times before it finally sunk in. You have to find your strategy which may take some time as it is different for everyone. I've found some valuable ideas in this thread and I also like the idea of comparing fx trading to what those MIT kids did in '21'. Very cool!
******************* I'd rather make money than be right.
  • #39
  • Nov 20, 2009 11:39am Nov 20, 2009 11:39am
Quoting Jollyroger
Enjoying reading about your trading method. I see that the barracudas have crawled out from under their rocks already to bash the thread but have backed off a little. We can't all be as intelligent or perceptive as these "gentlemen" but most of us can bumble along in our own humble fashion trying to learn from each other exchanging ideas and asking questions. Hopefully we can avoid making "pronouncements" and keep the BS, such as this post, to a minimum.

THANKS FOR YOUR TIME AND CONTRIBUTIONS TO OUR TRADING EXPERTISE. KEEP UP THE GOOD WORK!...
Jollyroger,

Can't fight with the barracudas in FF, but a little blood pumping is what we want lol...going to keep this thread going, seems to be getting much more positive comments than negative...i have much more trading setups in my head waiting to come out!

MADNESS
  • #40
  • Nov 20, 2009 11:42am Nov 20, 2009 11:42am
Quoting 4xStar
Sticking to your strategy is the KEY to your success .. I heard this dozens of times before it finally sunk in. You have to find your strategy which may take some time as it is different for everyone. I've found some valuable ideas in this thread and I also like the idea of comparing fx trading to what those MIT kids did in '21'. Very cool!

4xStar,

Yes, that is def the hardest but most important element to any successful trader is sticking to your strategy (more to that, money management, discipline, etc). Once a new trader can understand that losses are always going to happen and that it is part of the business and that he doesn't have to change his strategy bc of of 1 losing month, he will grow as a trader most definitely.

Glad your finding this thread useful and entertaining!!

MADNESS
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