The System II (Yes with irony)

Thanks Fx!

I'll try.... So.

For me the most problem is not to enter on trade, not mistakes of enters, not little losses, but - when to give some room to breath for price, and when do not. And my toughts are - may be I have to look at something bigger picture...
Here you have chart with my possible trades (how i see it today, how I would play it).... So I think you will get my problems.....

thanks bro!

Agree. Having difficulty deciphering when to take #1 and when to let it ride off. Or even when to identify not to wait for #1 and exit asap.

I think, the most challenging part of system 2 is not entry, but the exit.

ok.. thats easy..
( somehow i knew dim would be the first guy that will make a post.. and i love that about him.. its a display of winning attitude.. he is a true student of the game.. eventhough that he is already successfull and been around with me shortly after i joined the thread.. but he keeps plugging looking to fine tune within the plan.. bravo to you my friend..)

ok..
but.. lets hear some more from rest of your brothers..

well i know that you guys struggle!! but how?.. which part the most?
dig in boys... refelect back on your trades..

i tell ya.. days like this don't come around often.. take advantage of it..

i can help dim by pm ing..

For me it is the preserving part. I am always biased towards keeping the runner (which is great), but even on times when PA is clearly telling me to take my profit. Before I came here I was trading 1h chart many different currencies, even futures on CFD, and I had +150 pips trades that went to +300 pips winners but also to brakeeven or small losers.So #1 yes, that is my challenge in a way.
Also the bias. Since I come from higher timeframes, and analyzing correlations etc... I am having hard time changing my mind to often, So its hard for me to take a short trade on a day like today for example.

i be out for a alittle while... i check back and reply when i see reall struggle/pain.. for now, it seems to me not much problems and you all looking good..

plus, i dont want to give this away if there are only handfulf of you that are struggling.. don't ask why!!!
bcz i know we got people behind the curtains waiting eagerly.. so they can get on to making there videos and get paid for it one way or another.. ya i know who you are.. lol.. how sad. atleast i got go through some agonies.. lol
but don't worry curtain boy.. you might just get it, if I see toomany of my brothers in pain..
we call this my gift to the curtain boys..

Cya in a bit..

Hi FX,

I'm not sure if I should post over at the forum to clarify on doubts or in PM.

Well here goes,

In a trending day,(like you mentioned, we dont get this often!) and we dont get this often, I really hope to maximize the best of the trade's capability instead of exit and enter again.

Given there are several retracement (SF), how will you judge if this is a SF or an end to a trend. I struggle in identifying SF(let the trade ride) or end of trend and exit with #1 accordingly.

In ranging situation, say for eg. a typical 3 cycles of ranging, we'll have incurred several fake outs given a #2G+ exit. That would incur substantial pips in the process of hunting for a runner.

I've come to conclude for #1 exit for breakouts(30 pips or above in 2-3bars). For trending, perhaps I should have SF and let the trade ride. What do you think?

Anyone facing similar situation?

Hi Fx,

Sorry for been a curtain boy.. I haven really master the system so don't is my question sound stupid..
Just for today trade, I have a few #2G+. 1 #2G+ lost will cost me around 5pips.
And when I try out #1 following your advise, most of it will hit stop at BE or some lose.
So I really don't know need to keep trying all the breakout or have some cleaver way of choosing it...


Thanks

I am not sure, but it seems to me that your words describe my today's chart with entries and exits... I think I am facing the same situation. The same problem. In fact - earlier I did hunter runners mostly too, the last couple of days were almost range-days, I start play #1 more agressively, because I need some profit... And today was the situation (in hindsight) when we have to hunter runners again..... And I did not change my tactic....

Here is the problem.

Hi all

Many thanks to Feb, fx and all the contributors to this thread.

It's taken a month to read and is hard to put into words how helpful and enlightening it is.

I have been trading many years and at best break even on 1h & 4h time frames.

this thread has shown me that higher frequency 5m trading works and is ideal if your trading with low capital.

Sorry for hiding behind the curtains but I feel too far behind to be of any help to the thread yet.

I look forward to gaining enough experience to help newbies on this thread in the future and be accepted in the team.

Thanks

Chris

This style of trading is an art not a science so if we try to take the same trades as anyone else it is like trying to copy someone elses artwork. FX gives us loads of tools to use which is like a framework for us to build our trading style onto but it is MY style that I use. There no "right" entry or exit there is only the entry I used and the exit I took.

Having said all of that FX you haved been doing this for longer than I have so my question is is when you have entered a trade and price is not really moving but is creating a range around your entry point will you exit after say 5 bars and wait for a BB trade or keep your trade open and set up and order to catch the market if it moves the other way?

I fear to lose a few pips at one moment and then I am able to give bigger room the next... I got to give up the urge (emotion again) to jump into trades without valid setups (costs me plenty)...

Like I wrote a few pages back it is me I am struggling with. So it is emotions, not patient enough waiting for good setups, not waiting for the market to develop when in a trade, cutting winners short and letting losers run etc. etc.. That is why I do not post any charts and questions here. I trade live, four hours a day (yes, I have this regular job..) but I am still on the losing track. So I will have to learn making a habit of executing the plan and not counting the money of every gained or lost pip and looking at my account after/during every trade. Changing your habits is a hard thing to do, I can tell.
FP
See signature:
"Together with System II you should belong to the first group. Alas I still belong to the second.." (FP)

hay wonbi
good trading IMHO and good outcome,+38 total
in trad 1 you had a BB and you should play 2g+ and maybe even loss more then 2 pips. the way i see it you play 2 over there
trad 2 IMHO you play perfect
trad 3 was also a BB and 2g+ supposed to get you out sooner
this is just MHO (im no expert). i hop FX reply to your post as well
good luck to you

Thanks Gevelber02... my trade 2 was magic-hand, accidentally touched the finger pad when my mouse was on the panic button...haha...

FP... agreed, old habits die hard, but they will have to die to survive! Same reason why I seldom put up charts.

ok guys,
just got back to my desk for my quiet time.. i see some concerns posts, less than i expect!!! but i will read them and most likely at the end of my quiet time i'll make a post that u would find usefull.. don't expect magic.. HG do not exist.. the sooner u belive that the closer u be to the never catching mountain top.. but i know u already know that, just saying incase..

talk to u later..

Hey guys, thanks for all being supportive in this forum, i have learned so much from all you. just reading your thoughts on the #1 play is very similar to my experience. This way of trading had giving me the ability to stay in trades when i would normally get out and get out when i would stay in. So this is GOOD!

My question with the #1 is ..... Is it a hard and fast rule?, seems like it has alot feeling into it, ( talking to the market), if you see the market moving against your position 'fast' #1 play says, get out! to save pips and reenter again later. I think the #1 is used after we have already moved 20-30 pips and a new HL has been made, SL has moved up or to BE, now we are protecting out profits with the #1 play..

Although i have seem posts where the #1 play was being used on the initial breakout.. but i think FX said to be patient and give the break out some room using #2 or g+

Example:
1. 2 or 3 bear candles after a 20 pip move could be a quick #1 play
2. after 2 failed break outs on a new high or low could be #1 play to save pips on the table and reenter later.

is it a bit of technical and feeling? either way this trading method works...

ok.. our offensive runner/preserving #1 play..

now before i get in to that i think its safe to say that we are pretty set on the setups for entery and the defensive plays in the case of fakeouts and PA reaction to the levelline and not losing on more than average of 10-15pips on a trade and so forth..

now.. guys i am going to say something quite revolutinorary here.. very simple yet difficult to do perhaps.. (i might get beat up for it.. but hey.. i am used to it by now.. dont u think!!..lol)
we do already know that prediction is way out the door... here is another one way out the door..
PA reading aswell, to some degree.... uffffffff.. wot!!! is fx kidding.. is he crazy!!! .. lol.. neither gentelmen.. i just think outside the box..
who the hell ever knows what PA will do next anyways.. psssssssss.. lol..

listen, don't get me wrong here now.. PA is important.. everything we do is based on price.. but falling into PA reading is another story and a crutch and a big mistake.. we follow the price for our entery to get in the action when is meet up with our setups.. but not as a primary option for our exits.. are u with me now!!!.. and my plan has already prepared you for that.. consciously or unconsciously you been prepared for it..
you can only watch things at ur own end.. so..
what u need is Risk Management and Trade Management more than anything else in this business specially for exits...
put this on top of your list.. print it and stick it somewhere in your desk or office or pin it to your brain... I tell ya.. its the only thing that will bring consistency to your trading career and keeps ur head above the water afloat rather than sinking.


ok trading in generall is a matter of preference.. we stress one currency one timeframe here.. but thats bcz this is our preference... you may use this very style in any timeframe of your choice.. as long as u adjust the risk, stops, ur account size and so forth..
so with that said.. as an a eg. when it comes to our #1 play its also matter of preference.
i explain what i mean..
once u are in a given trade and it truns into a SF and ur set to play #1, then more than likly after some time u be facing with a hurdel (ur 1st retrace).. now u got two choices here..

A) u can preserve.. (bank upon 1st HH/LL faliure)
B) u can go for a runner..(set sl below levelline and sit tight for more gain)

if u choose A... just like everything else in life it has its pluses and minuses.. pluses are: you have chosen a more conservative option by banking in smaller gains and always staying afloat.. the minuses: are that you must bear with the fact that u will be in for quicker ins and outs and more possibility of falling into fakeouts.. so, for eg. when there is a 100pips ride, u will most likely capitalize 1/3 maybe half at best.. (to get the most out of it PA really got to play prefectly into ur hands, and thats not very probable)

if you choose B.. same thing pluses and minuses..
pluses: if there is a bigtime runner, u will most likely capitalize the whole way, atleast 2/3.. with less trades made, much calmer trading day.. (eg. today i had 4trades good for 135pips).. ok minuses: if there are no reall rides of 40 or more you probably will finish at BE or some loss for the day.. and u will leave money on the table (25pips gain goes to a BE finish).. you got to give some to get some..

so as u see they both are good choices.. which one is your choice? its entirely up to you..

atm.. you are probably saying to yourself: well, fx i already know all about A & B.. tell me something that can really help me to become a star.. lol.

well my brothers, i have to set you up with zero ground first..

now, listen up... i know what u want.. you wanna know how u can get the best of both world.. combination of A & B.. switch back and forth to capitalize for the max on a given day.. BAMMMMM.. wow.. that sounded so good.. lol

heheheh.. my suggestion is to get a crystall ball.. lol

ok.. ok.. serious now.. to get the best of both world and max capitalization on a given day.. you must go back to my revolutionary statement up top..
yes baby.... Risk management.. and throw out PA reading.. lol

so.. when i am rewarded with a SF situation into some profit and my reward out weights my risk.. i intend to be less aggressive when playing with the house money, mix it with the use of my atm favorable RR ratio along with my atm postitioning and take the most advantage to reach my goal.. which is to fill my job dutie to capitalize most profit out of a given runner..
so as u see, no part of what i just mentioned in the paraghraph above has to do anything with PA reading what so ever.. its rather all about risk calculation..

ok, now I fill you guys in with details.. its called how to get the best of both world fxa style.. lol.. this is what i do.. u can use it or lose it..

i am gonna do my best to paint a picture to serve a step by step for you guys.. before i do so i want to let you know one thing incase if you dont know me already by now.. and that is..

that i always think B first (Runners) and A second (Preserve) as a backup..

scenario 1.. when i enter a trade.. and its not a fakeout bcz it has shoot up for about 15 or 20 pips gain.. then i am obviously set to play #1.. and I set my sl below the levelline.. ok.. with knowing that B is my first choice.. if right around 20-25 pips and under i get to face with my first hurdel, then follows with levelline holding and retrace resuming back in my direction and tests the LL/HH.. at this moment i do not preserve on first or even the second attempt.. i only preserve if market goes dead into a long consolidation bracket look alike form.. then and only then i really take my time to preserve for the max amount and quickly set a reentery and a IF and Then order.. so bottomline in this type of situation is that i can care or less about leaving money on the table.. i am going for the runner!!! and playing a very soft #1 preserve as i explained above..

ok.. 2nd scenario.. if price shoots up for a straight hurdelless 40/50+ pips.. then at this moment i still wait for the retrace.. but if price coming at me with major speed like crazy then i try to bank no less then 1/3 of the potential gain.. but if its making a normal retrace (about half way, preferably less), i stay put patiently and let it fully develop.. now at this point price will either.. 1) breaks the top.. nice chichingggg, patience got paid off.. 2) it will test the LL/HH and falls into consolidation.. and i take my time to calmly preserve on top for max.. c) it can break the fcr, and i will bank there without hesitation.. I never hold a trade that breaks a valid fcr, period.. and you all know how touchy i can get about that.. bcz this action is so against everything that with do in system II and the plan.. its like cancer.

ok.. 3rd scenario.. this occurs when i have passed the 1st hurdel perhaps maybe even the 2nd hurdel and have already fallen into a decent or a very nice profit... obviously things get alot easier from here on.. i am in the drivers seat and i will either designate this with fcr's.. locking in profits and letting it ride to catch the moon.. or play a little more aggressive #1 and bank for 80pips and feel good about mission accomplishment.. then open up a cold one and relax waiting calmly for the next bus.. the point is, most of the times after the 1st hurdel or 2nd hurdel u will be in enough profits that u have the luxury with all kinds of options open... but i am more like the Gorden Gecco "greed is good" type a guy, only better bcz I don't get carried away with it.. lol.. i only use it when i really got the market by you know its what.. lol.. i am talking about locking in profits with a sl at +65.. its a beautifull thing to watch.. today i had the luxury to do this twice and bank big..

ok guys.. the hard part is obviously the early stage.. before and through the first hurdel or maybe even the 2nd hurdel !!!.. thats when u are dealing with alot of stuff such as.. technicaly, PA's deciving different looks and forms.. which it will lead to creeping of crapy mental feelings.. ohhhh ya.. fear of losing out is the grand daddy of all in this type of situation..


so guys... with my plan you are set to not lose much with desigend entery and predetermined exit defensive plays in the case of fakeouts.. the purpose of this part is to give you the courage to take your shots relentlessly when valid setup opportunities are arrived.. bcz the most important thing in trading is to pull the trigger.. you got to be in it to win it.. and today you are presented with my more clearer and deeper understanding of step by step #1 play scenarios fxa style.. lol

now.. is it easier said then done!!!.. u bet it is.. are u gonna start making banks right from tomorrow!!.. hehehehe NO.. are u gonna make mistakes and go through agonies!!.. u bet you will.. does it take alot of practise!!.. you bet it does.. does fx screws up aswell still!!.. u bet he does.. but does he stick to his plan!!! u bet he does.. does he care or less about leaving money on the table based on the first screnario!!!.. not what so ever.. does he care about daily win/losses!!! hell no.. does he like his monthly statment!!.. ahhh hell ya.. .. is it all about bottomline and long haul success!!.. you bet it is..

ok, long post.. and it tired me.. its almost 2am my time.. but i stick to my word and wanted to get this out to you guys for thanksgiving.. my way to give back to my system II familia..

Good Luck Gentelmen..

Thanks, you are DA MAN FX! YESS! I have been thinking about this all night and your response will be laminated on my wall to read a 1000 times til i get it..

Happy Thanks Giving to you and the rest of the Family..

pls i need the system too
keep your good work

eristonsho