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Bringing Down the Forex House

  • #121
  • Dec 1, 2009 6:41am Dec 1, 2009 6:41am
Hi to all especially Madness for this very helpful thread!

Have just started studying and applying PA to my demoing and find this thread heaven sent especially with all you helpful fellas there.

Have a problem or two to be solved here. Have downloaded the indicators and tamplates on Pg 1 and Pg 3. Acturally, the ones on Pg 3 overides the ones on Pg 1. All is fine except that the BB signals never appeared. Have been eyeing for at least 6 hrs today on all time frames of GU and charts on all pairs to make sure I do not miss it when it supposed to appear cos I've been watching out for it to appear the past few days.
Have gone thru reading the threads a few times and decided to give up trying not to be spoonfed.

So, here I am with my first request for help above and another one in next paragraph.

Well, I have a question for lgtj, re your charts with MACD and rsi . How do you get the histogram of MACD to have two colors? Also, how do you insert the MA8 onto the same window as the rsi.

Hope that some kind soul can help me. Thank U.

HAPPY TRADING WITH MIKGHTY PIPS TO ALL!
  • #122
  • Dec 1, 2009 7:39am Dec 1, 2009 7:39am
MADNESS,
How are you spreading your charts across 2 monitors? I have to use two MT4 platforms to do this?? I love your strategy it is simple and to the point - profitable. Thanx 4 sharin
  • #123
  • Dec 1, 2009 8:03am Dec 1, 2009 8:03am
Quoting Madness
Small Lesson: Trade what you see!

Great to hear from everyone! Glad that my thread is getting the blood pumping!

Well the thing is with my strategy, its not 100% mechanical (more like 75%). Meaning, there is no set stop or always a set take profit, in pips. This is more of a real world trading strategy (which is what most pros trade). I trade when the deck is hot or is exhausted! only bc it gives me the edge while i trade! This strategy is set to not pick tops and bottoms but to trade what...
I think you are right to some extent with regards to risk:reward. But it depends how you analyze the charts. I don't think you can suggest how the pro's trade as I am sure they trade a vast array of techniques. No one trader is the same. However, there is one dominant level of understanding pro traders have and that is order flow. This is because they can see it (less so in Forex). The closest technique we have to seeing it on our charts is by understanding supply and demand levels and knowing where these are formed. These can be used to determine targets and stops. They are not 'magic' as you might suggest but they are reliable.

The point I wish to make is that such levels including SR, can be used with this method as a guide. Should you have a signal on a 5 min chart to go long directly below a higher time frame supply level, this would be at a far greater risk than if you took a long signal near a higher time frame demand level.

Whilst I agree that your method has an edge in terms of feeding off the momentum of a higher time frame on a pull back at a lower time frame, understanding levels of SR or Supply/Demand would put the odds even more in your favour. At the end of the day trading is about reducing risk and maximising reward.
  • #124
  • Dec 1, 2009 6:47pm Dec 1, 2009 6:47pm
The system is quite good, but i would like to know what are your money management?

Like do you usually use a Take Profit system?
eg. When it hit up 20 pips, I will close 20% of the account to protect the loss.


Any opinion, or even you don't need to do anything about it. Just open the trade and close the trade when the bband is opposite?
{Promotion Removed}
  • #125
  • Dec 1, 2009 10:20pm Dec 1, 2009 10:20pm
I like the look of this system on principal...will have to have a look at it this week.
  • #126
  • Dec 2, 2009 10:26am Dec 2, 2009 10:26am
Quoting Antny
MADNESS,
How are you spreading your charts across 2 monitors? I have to use two MT4 platforms to do this?? I love your strategy it is simple and to the point - profitable. Thanx 4 sharin

Antny,

Great to hear you are enjoying this system!!
Yea i have 2 mt4 platforms running with 4-5 pairs on each platform. I also have a laptop that i have up during trading hours for emails and IMs...remember you have to keep an eye on the 30M charts more than any other TF! so keep them the easiest to access and view.

MADNESS
  • #127
  • Dec 2, 2009 10:34am Dec 2, 2009 10:34am
Quoting Porkpie
I think you are right to some extent with regards to risk:reward. But it depends how you analyze the charts. I don't think you can suggest how the pro's trade as I am sure they trade a vast array of techniques. No one trader is the same. However, there is one dominant level of understanding pro traders have and that is order flow. This is because they can see it (less so in Forex). The closest technique we have to seeing it on our charts is by understanding supply and demand levels and knowing where these are formed. These can be used to determine...
Porkpie,

Great post!

Yes i have to agree with you with most of what you said...but with the 'magic' part of the post, i was just merely talking about other systems that say they ALWAYS use a 20 pip SL with a 30 pip TP, no matter how the market is acting. I do not trade like that, i trade what the market is telling me to trade (thats why i am always looking at 8+ pairs, so i can see which deck is the best at the time of my trading session).

But yes, putting daily pivots and S/R would def help some traders maximize profit potential. But for me, it just distracts me making me, as a trader, second guess targets and when to enter the market. To each their own. Which ever shows you better results, stick to it!

Yes, i also always go other S&P 500 (closely following/inversely usd lately) charts with volume and Euro options to check open interest and volume to get a better understanding of how the market is acting as a whole.


MADNESS
  • #128
  • Dec 2, 2009 5:35pm Dec 2, 2009 5:35pm
Hi Madness,

Thanks for sharing this system. It does very well on entries is my experience so far.
However, i too, seem to have some trouble exiting the trabde
What i'm currently doing:
- Close 1/2 at 1:1 ratio. (if SL is 22pips, tp is 22pips).
- The other 1/2 -> If close of current candle is above close (for long trades) of previous candle, put sl 3 pips below current candle's low. (5 min. chart).

I had mediocre succes with it.
What exits are you guys using?
  • #129
  • Dec 3, 2009 2:13am Dec 3, 2009 2:13am
Quoting Madness
Porkpie,

Great post!

Yes i have to agree with you with most of what you said...but with the 'magic' part of the post, i was just merely talking about other systems that say they ALWAYS use a 20 pip SL with a 30 pip TP, no matter how the market is acting. I do not trade like that, i trade what the market is telling me to trade (thats why i am always looking at 8+ pairs, so i can see which deck is the best at the time of my trading session).

But yes, putting daily pivots and S/R would def help some traders maximize profit potential. But for...
Yes, SR can cause people to second guess direction if they are not used simply as a guide.

I like the fact that you are looking at so many pairs and looking for the best set-ups out of these. Do you prioritise trades that have just made a new bb signal over trades that are already in 'mid-flight' looking to scalp?

In other words do you see that entries taken sometime after the 30min bb signal as having a higher risk due to possible exhaustion/weakening of the move as it moves (so you would then prioritise earlier moves off the bb signal over the scalps)?

Are all your 'mid-flight' 5 min moves always scalps or do you hang on depending on where the signal is in relation to the 30 min bb signal?
  • #130
  • Edited 3:15am Dec 3, 2009 2:56am | Edited 3:15am
You might find the attached useful with regards to managing your trade with the scalps which basically suggests making sure you have enough room between trade entry and the top of the last swing high to take some profits should price decide to turn around at that point.

Quoting weetikveel
Hi Madness,

Thanks for sharing this system. It does very well on entries is my experience so far.
However, i too, seem to have some trouble exiting the trabde
What i'm currently doing:
- Close 1/2 at 1:1 ratio. (if SL is 22pips, tp is 22pips).
- The other 1/2 -> If close of current candle is above close (for long trades) of previous candle, put sl 3 pips below current candle's low. (5 min. chart).

I had mediocre succes with it.
What exits are you guys using?
Attached File(s)
File Type: pdf Traders_Trick_Entry.pdf   139 KB | 465 downloads
  • #131
  • Dec 3, 2009 9:01am Dec 3, 2009 9:01am
I have done the same. I wanted to mention that for support and resistence I like to use horizontal lines plotted at .25, .50,.75, .00 . I found this idea from a trader known as TRO. I use them for exits. As for stops I have been using the your 21 hi/lo opposite of the trade direction.
Works well. Great stategy you have, k.i.s.s the way it should be.
Talk with you later
  • #132
  • Edited 6:55am Dec 4, 2009 5:02am | Edited 6:55am
Quoting Porkpie
You might find the attached useful with regards to managing your trade with the scalps which basically suggests making sure you have enough room between trade entry and the top of the last swing high to take some profits should price decide to turn around at that point.
Thanks, this doc contains some usefull info.
BTW, would it be hard for a programmer to show stats of 30M chart on the 5M chart?
Info would only have to be:
-Price above high moving average / below low moving average.
-Price above / below BB.
This would save me the money from buying an extra montor.

Edit: What do we do around the news? No trading with high and medium impact 60 minutes before, and 30 minutes after?
Regarding
  • #133
  • Dec 5, 2009 11:31am Dec 5, 2009 11:31am
Hi All,thought i'd drop a line and say a thank you to all who have contributed to this thread especially Madness who is helping me out big time thankyou.
  • #134
  • Dec 5, 2009 2:10pm Dec 5, 2009 2:10pm
yes forex brokers are the house.. and remember the house always wins..
  • #135
  • Dec 8, 2009 8:53am Dec 8, 2009 8:53am
Trade Examples:

Here is a great example of the a very hot deck that stays hot for quite some time. Take a look at the chart for more details. I would be shorting till i saw the deck cooling (price action trading between the HiLo) or till the price was getting near exhaustion levels. My stop loss would be the Hi moving average because of how perfect the price action was moving, so any bump in the road i would be out.

For more details take a look at the chart below...

MADNESS
Attached Image (click to enlarge)
Click to Enlarge Name: EJ.jpg Size: 203 KB
  • #136
  • Dec 8, 2009 9:01am Dec 8, 2009 9:01am
Quoting dengzhi
yes forex brokers are the house.. and remember the house always wins..
dengzhi,

NOT always! The MIT kids thought of way to get the odds in their favor and play a system without emotion...and i feel like we have done the same thing here, just leaving emotion out and actually pulling the trigger is the obstacle for most traders that will leave them paralyzed. Bc with these kinds of systems they must be traded constantly, you can't pick and choose a couple of trades a month and think you will be profitable, you have to put the hours in and trade the system as it is told to do so (at least 1 trading session a day). Once you have mastered the system, pips will start coming in. The reward for trading well is money, you can't go into trading trying to make $100 a day. You trade what the market gives you that day, and if you trade well, you will inturn see that in your balance.

There are always obstacles that will be in the way though, and that is emotion in this game.

MADNESS
  • #137
  • Dec 8, 2009 9:24am Dec 8, 2009 9:24am
Madness, mate you have been away quite a while
  • #138
  • Dec 8, 2009 9:38am Dec 8, 2009 9:38am
Quoting ukcool
Madness, mate you have been away quite a while
ukcool,

Yes, its been tough december so far...had the flu for about a week, finally slowly getting over it today...been resting the past week or so.

good to be back!!

MADNESS
  • #139
  • Dec 8, 2009 9:44am Dec 8, 2009 9:44am
Quoting Porkpie
Yes, SR can cause people to second guess direction if they are not used simply as a guide.

I like the fact that you are looking at so many pairs and looking for the best set-ups out of these. Do you prioritise trades that have just made a new bb signal over trades that are already in 'mid-flight' looking to scalp?

In other words do you see that entries taken sometime after the 30min bb signal as having a higher risk due to possible exhaustion/weakening of the move as it moves (so you would then prioritise earlier moves off the bb signal over...

Porkpie,

Yes, i do have about 8 pairs that im always watching on my monitors...and i look for the pair that on the 30M chart that is trending the best. meaning, i like the pair that is moving smoothly in a hot deck without many spikes into the HiLo MAs, most of the time in 'mid flight'. Then i look on the 5M for entries and using the opposite HiLo MA or BBand as a SL. My targets range depending on the price of the pair, and probabilities of the price reaching a certain target. I feel like the best way to get the hang of this system is just putting in the screen time guys!

You have to remember, the BBands and HiLo MAs must be used together! so when you get a new BBand appear on the 30M chart, you must then wait for an entry on the 5M. They all should line up before getting into the pair, giving you better odds of the trade working out.

Hope that helped Porkpie!

MADNESS
  • #140
  • Dec 8, 2009 10:53am Dec 8, 2009 10:53am
Quoting lgtj
Madness, thanks for this method. I've tweaked it a little to fit my style of trading, and I'm currently +100 pips in profit across several pairs. Here are two live charts.
Attachment
Attachment

Please can you post your indicators & template that you are using in the screenshot,lgtj?
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