Nanningbob 4H trading system

Nothing like getting hit by a freight train DANG, The JPY and NZD made incredible moves. Well we assess the damage and go on. When I go 100:1 Monday there is no way my account would be able to handle this kind of movement. Have some tough decisions to make. I definitely have to add funds to the account to cover this on the switch over Monday. By the end of the day I will have to cut some losses if I dont get some major retraces. Dang NFA ruins my ability to use the 2.4.2 recovery without major infusions of cash. I see IBFX is moving to the UK. Will see how that turns out. If I stay in the USA I will definitely have to drop all volatile pairs and not trade them anymore. Even though there are good signals out there I must clean up this mess first and not commit anymore margin to my trades. If I had just stuck with my 11 pairs I would not be in as much trouble but still would be. I definitely will have to drop gbp/jpy and eur/nzd and go with 8-10 pairs. Will study it this weekend and decide. Even though this was a bad day, it opened my eyes to the potential dangers I will have to face trading 100:1. I definitely will have to tone down the risk factor.

I have never seen the market move like that when the USA session is closed. I have seen it drift in one direction all day but not make really big moves. gbp/jpy 700+ pips dang.
TAKE PROFITS
eur/chf, +51
eur/usd, +66
gbp/nzd +10
CLOSED FOR LOSS
gbp/jpy -600
OPEN TRADES
aud/jpy, -256 +50
AUD/NZD -77
eur/gbp -70
eur/nzd -280 +65
gbp/chf, -217 -24
gbp/jpy -414 -214 -14
nzd/chf -182 -62
nzd/jpy, -408 -208 -08
usd/chf, +78
usd/jpy not entered

TOTALS
total for day -473
-19 for the week
+1496 for the month
Carry over -2241

primary trades
BUYS
SELLS
Secondary trades
BUYS
SELLS

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility. __________________
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin for a slow mover like that.

Yes it has wild swings but it will retrace unlike other pairs which will sometimes just keep trending for days and days. Will probably have to drop it with the upcoming changes in the USA

Just took half my profit of the eur/usd trade at the 40MA line, will let the rest ride from here!

Hope you get good retrace today Bob. I stopped trading my IBFX account two weeks ago and closed it. Got my money in two days by the way. I'll be taking the big plunge early next year trading this EA through an IRA with FXsolutions Australia (400:1) with some serious money. Until then I'll continue to trade my demo and see how far I can push it. If IBFX opens to US citizens with 400:1 I'll be back with them.

400:1 leverage? I think this is your account's killer.

No no no, The higher the leverage the better you can trade a multi level system. When you trade multi level most of the rules you learned about trading are the opposite. The lower the leverage the more money you have to risk. The higher the leverage the less money you risk. You can trade my systems at a penny broker for 500 dollars at 400:1 at 100:1 I will now need 2000. That is a higher risk not lower. I never understand why people dont understand that. At 400:1 my risk of MY MONEY is lower not higher. At 100:1 you will now have to face closing positions because of margin more often now. This is not a benefit to traders especially to newbies. They now have to risk more money to learn this business and will suffer bigger losses. The cost of people's education to learn Forex has just multiplied by 4.

Closed some trades out earlier than maybe I should have but I wanted to reduce my commitment before Monday's change to 100:1. So far just trying to minimize the damage and I think most is under control. Reduced my DD by 40% and still registered a profit for the week. Will register profit for the month. I will post new trades later this weekend after I do the math of the new 100:1 leverage. I see IBFX is opening an office in England but have no concrete details yet. The name of the game for me now is to keep the profit I have already won and exit out of these last couple of losing trades. One thing nice about the EUR/NZD is it can get you out of trouble as fast as you get in. I am going to change my trading pairs and go conservative until I get used to trading at 100:1 I will announce those later.
TAKE PROFITS
usd/chf, +80
usd/jpy +73
NZD/JPY +92
CLOSED FOR LOSS
aud/jpy, -156 +150
gbp/chf, -127 +66
gbp/jpy -209 -9 +191

OPEN TRADES
AUD/NZD -96
eur/gbp -67
eur/nzd -438 -93
nzd/chf -192 -72
nzd/jpy, -308 -108

TOTALS
total for day +151
+132 for the week
+1628 for the month
Carry over -1374

primary trades
BUYS
SELLS
Secondary trades
BUYS
SELLS

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility. __________________
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin for a slow mover like that.

Continued to reduce my DD. I did a couple of trades with the GBP/NZD but since I didnt call it in advance I am not counting it. The eur/gbp and gbp/chf look real good but I am not taking them today. Going to ride out what I have. Sometimes price just heads for the middle of the chart during a big news week and just sets there until something happens. Strange how some threatened default on some loans in Dubai would send the markets all over the place. It is why I range trade because those moves had nothing to do with indicators or fundamentals. It is just too many trigger fingers are in Forex and too many people are ready to jump at the hint of any news. It is what makes Forex trading so rough, especially on the lower TF. Ok gonna sit tight for another day.
TAKE PROFITS

CLOSED FOR LOSS


OPEN TRADES
AUD/NZD -142 -18
eur/gbp -117
eur/nzd -258 +87
nzd/chf -125 -8
nzd/jpy, -278 -78

TOTALS
total for day +0
+0 for the week
+0 for the month
Carry over -937

primary trades
BUYS
SELLS
Secondary trades
BUYS
SELLS

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility. __________________
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin for a slow mover like that.

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Aug. 2009 Total +1020 pips
Sept. 2009 total +2651 pips p. 27 post #396
Oct. 2009 total + 1335 for the month P. 39 post #579 (This was our most difficult month so far but we survived and profited)
November 2009 +1628 (got hit the last couple of days on the Dubai news but still not a bad month)

3 1/2 month total 6634 pips. I guess I can be happy with that. I hope you guys don't mind if I brag just a little do you?? But is there any other system at FF or anywhere doing better?? 46 For the system 42 against. Still waiting for a negative vote guy to show something better. I hope the 100:1 wont kill me. Will be cautious this month as I experience these new numbers and ratios.

Not at all, in fact you should....

After using your system live (with very small $ account) for 2 months, I'm more convinced that 4 years search of system that suits my style is near to end.

I thank you for kindly sharing your trading systems and insights.

Bob, I think the floating minuses frighten the negative vote guys. Or no?

Just closed my eur/nzd positions for a very small loss, if I was at the computer this morning i could have taken a profit on it. This is from being down approximately 600 points at one stage last week.

Closed -
Eur/Nzd: -146, +133.

Open:
eur/gbp: +82 and watching, still looking good although it is approaching the 40ma line...will stick with it, perhaps ill take half there and let the other half ride.

I guess. When you are trained to put a stop loss 30 pips away and follow the trend it takes time to wrap your mind around multi level trading. The guy above wrote about how he got out of the negative eur/nzd trade but he nearly zeroed the trade and feels good of getting the exit. Once you develop the skill of zeroing out trades you will love the system. If you cant comprehend or cant emotionally handle the negative trades you will never handle this system. As long as you trade with small enough lots so you can handle the occasional surprise story the system will get easier. My viewpoint is that we want to enter in such an overbought or oversold area that even with a surprise story hits, we still have the confidence that price has to retrace at some point even though it may continue in its present trend. The Eur/Nzd may still continue to trend up but that does not matter to us. Price has to retrace and there are market forces that will always cause that.
1. Banks have to resupply themselves with the currency that they just sold out on. Banks make money exchanging money whether it is going up or down. They are not concerned with the hundredths or thousands of a penny like we are. When they exchange money they add on several pennies or even dimes as the cost of doing business. I may have to pay 695 RMB to get 100 USD dollars or I may pay 100USD to get 685 RMB. Their profit is much higher than yours or mine. When there is a run up like last week they have to go out and buy the currency they just sold to replenish their supplies. So you know the retrace has to come.
2. Market psychology is on your side. When price is at the top of the screen, you just cant mentally think it will keep going higher even though the fundamentals may scream it should. A certain amount of traders are going to take profit and another certain amount are going to want to do a sell. This will cause a retrace. When the Dubai story hit the news, there was a price runup even higher on the charts causing even more people to think time for profit, time to sell. Once they are done then the fundamentals will take over and price will continue up or if there was enough sell off for it to go into a downtrend.
3. Business deals that have gone one way like company A in country B sold a bunch of products to country C now companies in country C sell products back to Country B and the exchange of money reverses the trend. If you want to see this principle in action go to the aud/nzd on the 5M chart and watch price just bounce up and down as products are bought and sold between the two countries. Those two countries have a very unique currency action because they are both so far away from other countries, and are so similar economically that it has that unique bouncing up and down action you wont see on other currencies. But it clearly shows what I am trying to explain here in point #3.

Just some thoughts.

Hearing you brag a little gives me more confidence so keep it up. And you have plenty to brag about. This EA and your guidance in how to trade it are truly a gift to all of us. Thanks Bob.

Today we cleaned up the mess and am now out of my negative position and kept my profit for last month intact PLUS made a profit for the day. Just like it is suppose to work. Wiped out the carryover and still made a profit.
Couple of currencies are showing signs of almost being there. AUD currencies look like they need another day or two before entering. nzd/jpy looks good from the RWB lines but I dont like taking trades in the middle of the screen anymore. Eur/usd looks good. Chf/jpy is in the middle of the screen and fundamentals are calling for a strong CHF run right now but ............. naw not going to take it even though it probably is a good trade.
TAKE PROFITS
AUD/NZD -62 +62
eur/nzd -58 +287
nzd/chf -31 +86
CLOSED FOR LOSS
eur/gbp -34
nzd/jpy, -138 +62

OPEN TRADES


TOTALS
total for day +173
+173 for the week
+173 for the month
Carry over 0

primary trades
BUYS
SELLS
Secondary trades
BUYS
SELLS eur/usd

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility. __________________
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin for a slow mover like that.

Bob, you're right...I do feel good now that I've zero'd out the trade...i was deep as well.

This is why I'm trying all this out on a demo account for now. The system goes against all the stuff you hear about finding the trend and trading it, and keeping your stop loss tight etc. Personally, I have always had trouble making money trading that way, and always get burnt.

So far, I've made probably 300+ pips in 3 weeks on this, and that is only taking a handful of primary trades, probably half those that Bob has taken (due to being in Australia and not having internet access at home right now to enter).

I think the entry points for this system are excellent. You have CLEAR and PRECISE points of entry, and an EA to do it for you! Trade management will come with experience, however bob also provides a nice rundown for that.

Im still a beginner at this system, but so far so good.

THANKS, I hope you have a successful trading future. I love this system and it is my favorite out of everything I have developed. I hope to share a new idea with this later today for discussion.

closed out my eur/gbp position for +41, it hit my trailing stop loss, only to head back down a long way.

A much better trade would have been to close half my position when I was 80 points up, then let the rest ride...as I said I was going to do, but didn't.

discipline.

I have found that TS do this with almost every trade. Unless you hit a news story that makes the TS follow a quick move, price seems to always move back and hit the TS so I just take the profit 90% of the time. The idea of taking half and letting it run is a much better idea than a TS. Anyways that has been my personal experience. The good news though is you still made a profit, much better than hit a SL.

TAKE PROFITS
eur/usd +38 closed half of this trade, set my SL at +10 and will let the rest ride.
CLOSED FOR LOSS


OPEN TRADES


TOTALS
total for day +211
+211 for the week
+211 for the month
Carry over 0

primary trades
BUYS
(eur/aud in the middle of the screen do not take it.)
SELLS aud/cad chf/jpy
(also aud/chf, aud/jpy but I am not taking them staying with my list with the lower leverage) (gbp/jpy in the middle of the screen do not take it.Same with the other jpy crosses) Of the jpy crosses I think the eur/jpy looks the best but I am going to hold on it and see if it goes higher first.
Secondary trades
BUYS
SELLS aud/nzd 3rd time I am taking this trade from this point. Triple top

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility. __________________
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin for a slow mover like that.