The System II (Yes with irony)

Hi fxachilies,

As I am still trying to learn the art of trading, I have some questions about #1 and #2.

For #1, makret comes back from 10 - less 21 pips ...and for #2 means market goes only less then 10 pips in our favour and then comes back, is that the only criteria to judge #1 and #2?

Is the retracement also counts that how deep it is, so should I wait till L/L or try to break even my trade based on the retracment depth?
In the fig-1, you had showed the retracement is not deep, so we waited for L/L and in Fig-2 retracement is deep so we waited for break-even? may be I am wrong?

My question is where should be my stop on point 1, 2 or 3?

Thanks[/quote]


Why do not use a fixed SL?


in situations like this i sugest you to use a "FRACTALS" to identify the retracements if you dont using fixed SL. second fractal higher then preveos means a change of trend direction (not always) but a second one fractal i supose its a good sign to get out of that trade,but i sugest you for This "system" to use a fixed SL,and a trailing stop for profits.........

sorry for my english

if retracement is more than 50% you geting a risky trade......somewhere on this thread...Try to read more

786,

how far of the thread have you read?

and.. don't reply back to me with.. that u have read it allthoughway!!!!
bcz that be just right out insulting my inteligence here.

I had read first 50 pages and now is going to the next must read posts and will start again after 50. I did not say that i had read all the thread.

ok... resume from pg 51 and you'll get all the answers to you questions..

Good luck.

My structure for every newbie and midtermer..

Please begin by completely reading of the first 50pgs.. then take a day and think about if this is the style that might suit u before proceeding.. once thats out of the way.. then move to post 4734 and follow the instructions from there (read each one of those posts several times).. then again take some time and see if it still suits you before proceeding.. once thats out of the way.. then read my three posts in page 649 (the plan).. then read post 11758.. then one last time sit back and thinkd this over and see if its a fit for you.. once thats settle.. then go back to pg 51 and finish reading the whole thread atleast once while ur staying current with the daily process of the thread..
do this by the order that i just put above.
and.. if and when you decide to trade this style dont bother with Demo.. i suggest to open a micro account ($300-500.. and use 0.03-0.05 lots).. No demo.
Thank you.



sounds hard?.. you bet it is.

ok... why do I stress so much about reading the whole thread?

bcz i want u to be a millionaire!!!.. no joke.. i am serious.. i dont joke about money.

ok hear me out now everyone.. (I explain this one more time very clearly)

ok.. the other reason is..
i have teached this plan (i have been following my plan for the past 6 months and will for rest of my traing career.) to you guys on a step by step process.. i did not give out the whole plan all at once.. bcz people needed to learn each part in live actions for the purpose of feeling the pain, agonis, success, win, losses and the whole thing at one step out of time before moving to the next levle.. its vital to feel and complet the experience of each step before being prepared to absorb the next step..
for eg... if u don't read and undestand the first 50pgs of this thread you will not have a clue of my plan.. you wont know the backbone of it the whole consept.. and u be lost like crazy.
another eg... it is important to know how and why to apply the #2 defensive play before u could be prepared and appricated the G+ defensive play.. and then to distinguish the difference between the two an make them fit appropiately, in the heat of the battle..
in nutshell u got to get a better understanding by going through the emotions when ur winning and specialy losing when your own hard earned money is on the line.. and thinking about quitting atleast a couple of times.. yes people, we human beings need to be streached to the maxium before anything worthy to be produced .. I belilve in that strongly and thats what has happened to me and thats how i have put the bits together for myself..
we got people that dont go exacltly by my plan but they have got enough out of this thread by putting the necessary hard work to put the missing pieces toghether for their own plan of choice to be successful.. and i can greatly respect and apprciate that.

news!!!.. lol.. the plan is not given out 100% yet.. wotttttttttt!!.. yes sorry.. i got my reasoning as to why.. just read the above one more time.. but i have given out atleast 90%.. rest is up to you to either figure out or go through the emotions before i reveal it for good.. but don't worry xmass is around the corner.. .

now.. some of u have been around with me for the past afew months side by side going through this live.. but others have not.. so for the fact of being absents, the only subsitute is to atleast read the whole thread and take notes of key posts from I and others from the live plays.. the questioning and answering.. the quiz questions.. the new developments and etc..

I went through each one of these steps all by myself in my own shell starting 9 months ago by puting the pieces together.. and i know for certain thats what everyone else needs to do.. to go through the same experience by reading the whole thread with passion and excitment not bcz u have too.. and get a secondey feel of what i have felt and others in this journey.. otherwise u dont stand the chance.. period.

so when u see me hit a newbie with a "read the whole thread" before i even say hello to you or reply back to your question, in the thread or pm.. its for the reasons i just explained above.. its for your own benefit without a doubt.. shortcut answers will do you a harm.

i be blunt with you.. I can care or less if you leave the thread!!! if your not looking to put in the necessary work.. to be honest we don't want u here if the lack of effort is the big issue.. i think every veteran of this thread without a doubt concurs with me in this regard.. and further that this thread is for "Winners" and winners only.
I have said this manytimes and i say it again.. out of 100 of you, only 5 might survive what we put u through here.. we get about 60 different people here everday watching our thread, but so far we have got only about 20 people that are dedicated and really successful.. and without a exception each and everyone of them been hit hard by me in the begining and through out the thread.. just go ahead and ask couple of the popular guys in here, like.. macdaddy & elizo.. buttttt.. currently each are up about +300% on their accounts and off to bigger profit for Dec and even bigger plans for the up coming year.

I am out.


see u all tomorrow.. i be trading sharp 2hrs before londi open.. looking to put a reall hurt on the market before the xmass holidays.

Thanks everyone!

That was a nice runner, it was an easy one though. Price has not done anything during the whole run to trick me into taking my profit prematurely. What we need to do is stay in for the hard ones, that is my challenge. The ones with mixed candles for and against our position, the ones when the market is trying his best to shake you out at BE or small profit. Those are the #1 scenarios that will make me or brake me as at trader. Looking forward for those!

Greetings everyone!
Coronajazz

786 and jaguar!

I am new here and I dont know if I am invited to say this but...

The thing with the chart you are discussing as to where the stop should be is that YOU DONT HAVE AN ENTRY there. You see. So the problem is not in your stop, it is in your entry.

Listen to what FX is saying about reading the most important posts and the whole thread. He is not repeating that all the time to annoy us, but because it is very important

Anyway, read,these two posts for to clarify why this was not an entry.

http://www.forexfactory.com/showpost...postcount=3973

http://www.forexfactory.com/showpost...postcount=3809

Nice post, I'm doing my studying at the moment and hope to join the thread and you guys trading in due course.

FX, I think for your sanity and so you and others don't have to keep repeating themselves it might be worth asking Feb to edit his first post on page 1 and paste your current message below it...so anyone new knows what to learn and think before interrupting the flow of the thread...

That's assuming anyone new will take the trouble to read the first post/page...

I was doing some thinking during the weekend about hit (win/loss) ratio. Feb is stressing the importance of accepting the loses and taking them out quickly many times throughout the thread. He says "I ve traded the hit ratio for consistency many moons ago". While we all know why is that important (keeping losers small) I was always wondering, what is so bad about a high hit ratio. Arent we here to win money- yes, dont we win money from winning positions - sure we do. So what the.... is all this low hit ratio about?

The answer came at me like a hammer at my head. Many of you are sure aware of it but still this is a big illumination for me so I wanna share it as it came. We will make it as sort of a quiz, like many of them that FX is preparing for us to help us learn better.

Imagine two systems are handed to you on a silver plate. Their performance is as following. The spread is not calculated for simplification.

System 1 (not has anything to do with Feb`s system 1) has an average hit ratio of 58 %, average loser is 50 pips, average winner is 50 pips. Over a series of 100 trades you will make 2900 pips on winning trades and lose 2100 on losing trades and will be net profit 800 pips after 100 trades.

System 2 (very close to the system 2 we are trading here) has an average hit ratio of 30%, average loser is 10 pips, average winner is 50 pips. Over a series of 100 trades you will make 1500 pips on the winning side and lose 700 pips on the losing trades, so the net profit after 100 trades will be the same - 800 pips.

The fact is that you should be very gratefull to the person who introduced you to these systems, as both of them are great systems. So now you are in a very nice position as have to choose between two good systems. Which one you choose and why?

If you give me sometime today (Sunday) I would love to answer that for you if is possible...

ok..I changed my mind...Both "systems" are faulty but still I am gonna let you check where the fault is....and probably somebody else to contribute if you allow... but there's one big flaw in both.....


Hopefully somebody else could see the fault.


hey, not trying to debunk your theory or anything, we're all here to learn...

Dear Feb!

I am honored you are responding to my quest. Please, do not worry about debunking my theory or anything. Its not even my theory. I am sure the point I want to make is well known to most of you guys, it must be, cause it was right there in front of my nose all the time, I just did not think about it this way till now.

I can`t see the fault in the systems but I am thinking now.

Please, everyone who wants to participate, take note that these are imaginary systems. They do not exist and are described as they are just to serve as tools to get to the bottomline.

The fault lays in the word "system" itself.. Markets go through cycles and in a such a constant changing enviroment you can not put a square box around it and threat it the same all time..

there is give and take in any style and flaws are a given..

thats the way i see it brother.

Answering the question on face value here (ie ignoring context etc) -

System 2 in a canter. Those 800 "system 2" pips are worth a lot more than the "system 1" 800. I'm sure you'll have lots of newbs saying system 1 because the win rate is better........

I'll tell you where the fault is, but I'll do it tomorrow Monday. I'll take a little longer to explain but I must do it. Just stick around, for the benefit of you and many others.....Right now I have to take a lil rest as I just catch the flu and my immune system is running very low.

See U tomorrow.....don't miss the class

Not gonna miss it for anything. I cant wait. But please take care of your health first. Seriosly.

hi everyone.....
I've been a long time follower of this thread but for one reason or another have not posted for many months. I now have some consistant time when I can join you although as i'm in Australia I have trouble trying to trade the NY session. i'll do my best to contribute when possible.
For the record I'd like to add my thanks not only to Feb for opening our eyes and mind but also to Fx for not only continuing the thread, but for selfishly value adding to it.
cheers and safe trading to all

Yeah brother that's one point - the chaos theory and I definitely believe in that.

But see, one of the problems I had when I started trading the spot is the pips count.

People, you need to stop counting pips and start counting $$$$

lets say, 20 pips stop - 40 pips target...what's the deal??

The pip value is what matters. I talk about loads, not pips...I could have my stop situated and 40 pips or 10 pips...it really doesn't matter......the thing is how much value this "pip" has?

Let's talk about this 20/40 pips countdown - although is a 2:1 ratio (which is my favorite) if you're trading mini lots....do you honestly thing you can make a living off that??

I understand some are still learning the ropes. But you need to base you discipline in your bankroll rather than pips. Even if you have a small account. If you have (for instance) a 5k trading account (not recommended if you wanna make a living) and your risk comfort (look at me, risk comfort , yes repeat many times) is situated @1% of your bankroll PER DAY (yes, repeat many times...PER DAY...NOT PER TRADE LIKE SOME BOZOS ARE SAYING)that been said, then you have to trade under 2 conditions.

1) Until you get your bounty or

2) you have exhausted your DAILY RISK LIMIT.

Anything in between (you're cutting the trade short etc, ) has to be under this two premises I mentioned. There is no black and white area on this, trust me...some days you will get your WHOLE bounty...some days you won't...some days you just simply have to say "screw this market" and maybe close the day with a scratch.....

I have a low hit ratio because I use tight stops - not for the system II but for what I trade.... Just picture yourself fishing on a shore...you throw the thing (I forgot the name now..shit) and you throw it over and over and over until you catch the fish or you go home because you're getting hungry(or running out of beers)....

Oh man I sincerely wish I can keep talking to you but I am so tired......You have no idea how much hurt to have lymphatic issues..

I'll get back tomorrow.....promise...

Carry on brothers...