My GBPJPY trade journal

I have demo traded trying to use this method for the past 3 months with some mixed results. I have had some success especially when the market is trending, however, I have found that I may have been overtrading and getting stopped out of many trades which has chipped away at profits. My difficulty has been in taking too many lower quality trades and thus suffering multiple small losses. Somehow I feel that I need to determine how to take only the best quality trades with a higher rate of success using the principles of momentum and volatility....anyone have a similar experience or any constructive thoughts? Thanks, Flinty.

i would say my experience has been similar especially earlier on.
It could be said it is easier getting on the same trades as Greg, especially if your looking for every move, than avoiding the ones Greg doesnt take - which result in loss
With anything though it is practise practise and experience, but a key can be having a daily pip target/session and then weekly target. (cause you wont make your fortune in a day but you can lose it in a day). So if you've gotten lucky and made 50pips or more for the seesion then finish for the day and start a fresh tomorrow.
Also pay attention to the time of the day when the good quality trades occur and how the price then moves to reach its target (the best trades have a rhythm to them that can give you some confidence in the move - always expect the unexpected though.
Just some of my thoughts, i am still learning and improving, but experience, practise, perserverance(i think?) and discipline is what it takes to get that level we dream of.

its been months since i ve been reading Greg's trading notes. no doubt he is doing great trading and knowledge transfer.

i 'd appreciate if you could email me that document that you compiled on his journal @ [email protected] ... thanks - BlueBird

Thanks for your response Travpip. I agree that it is easier to take the trades that Greg takes than it is to avoid the lower quality trades. I know Greg gas a lot of experience and that he uses this to get into the best trades but for me i seem to also be taking the C and D quality ones...just wondering if it may be helpful to combine his ideas on momentum and pivots with price action triggers or other confirmation to get into the best trades and avoid poor quality trades. Just thinking out loud.

PM me and i will send you link at rapidshare for you to download.

Hello all,

I have contributed many hours/sessions/screen time over Greg's method the past year.

For me, the first few months didnt make much sense at all. It just seems too many indicators, no firm entry point/exit. There were times of frustration and doubts over the whole method.

Then it started to clear out. And i know i could have this all wrong, but the results are better and my hindsight is getting much better.

We all know Greg does his best here at FF and we greatly appreciate his contributions but there is no such flow chart. By this I mean,

A. If this happens at this time then B, if B does C then D or if B does E then F. Which we all gladly opt for as we would prefer to have someone else/indicators to govern our choices rather than making our own calculated decisions.

So I started making real progress when I shifted my focus from what the indicators are telling me TO what the price is going on. And i know this is easier to type then actually execute and you are probably already moaning, "..sigh.. another FF member telling me price action is most important.." But.. it is..

These days, I wait for the obvious setup to happen. I take note when the day opens to the CPP (higher/lower), I take note the distance between CPP and S1, R1 (at least 100pips), channels, pivots, boll bands, main long term trend (4hr, daily).

I watch and sit on my hands until price reaches CPP, S1, R1, and wait for 'obvious setups' to occur. Many traders, institutions wait at the pivot lines and I would rather swim with them and with the current. Obvious setups look so obvious that it would be stupid not to enter. Then I will confirm my entry by looking at indicators and see if they also agree with me. I want to see Stoch, MACD agreeing, boll bands open or exploding and compelling momentum. Long candles on 5min chart with very little retracements. When I enter trade, my trade should be positive immediately with no retracement at the point of entering. If there is retracement upon entering I could have chosen a better entry with stronger momentum. I will look at adding positions once my first trade is in profit. This addition of positions must comply with all rules and usually entered with a strong ongoing momentum. All this happening preferably in the first few hours of the london session starting. For exit, I watch 5min and see if there are any stalls, retracements, support/resistance, and if there is Im out and in greg's own words, "Im satisfied with the easy money."

Now I have to admit with all the above points firmly in my mind, I was still seeing opportunities everywhere all the time. This will gradually reduce with more screen time and you will be able to grow your hindsight so you will know when a optimum setup occurs with the highest probability.

Im still on the same learning boat as everyone else and might sound like bigger than my shoe but my only intention is to help.

Regards,

pipEASY

Hi again

I have an important question for Greg if he doesnt mind answering.

We all know how important money management is in forex. Here is why;

A system with 20% edge will still suffer deep drawdowns.

What this means is, a system of 20% edge wins 70% of the time. This is a big advantage however, even with this amount of advatange there will be periods where there will be drawdowns. I have personally witnessed 26 loses with 2% edge. So if you are trading this same 2% edge system with 2% risk per trade there will be a phase in your trading journal where your capital just lost 52% with 26 losses in a row.

New traders scoff at the idea at 26 losses in a row but you will be amazed and sore that it will happen.

Now having explained why money management is important

IM at a point of contradiction. I acknowledge how important money management is but I know Greg has mentioned in this thread that he was up to his last $2000 before he build up to his current capital.

I think he also mentioned that you can build your capital from $300 to $30000 in 6months or to that par (correct me as this could be from someone else). He also stated he was aggressive when he started off with his $2000

Now, im going to drop a bombshell theory..

"if someone can emulate close to or similar to greg's method I believe it is viable to deviate from the well known 1-2% per trade money management and risk alot more per pip.."

ofcourse this will depend on the traders own ability but greg's method is not a system. There is no SL, entry/exit points. Greg's method is discretionary. I have proven my theory correct on my demo accounts. Started with $3000 USD, 100:1 leverage and successfully doubled with no major drawdown. Out of 3 demo accounts doubled, I had only 1 demo that dropped to -$1000 before going even and then finally doubled.

Normal money management would be $1 per pip with 30-60 pip SL for 1-2% risk. But with greg's method, I find that I will never risk any trade to be 'stopped out.' Systems have firm entry/exit so you need to adhere to your SL strategy and let the market decide your fate. I find that with Greg's method you make your own fate and if everything is played tight, you would be stupid to leave your trade to go into negative amount and then stopped out. With greg's method i never place any SL unless i goto bed. If a trade is wrong then you should have enough experience and hindsight to bail out shortly after you enter (this obviously comes from alot of experience).

Am I right to say that even with $3000 capital but with 'proper' mindset for the method we can deviate from the normal 1-2% risk money management?

Let me get my fire retardent suit before I get flamed...

Regards,

pipEASY

I have read all the post in Greg's journal. I am also a newbie... I have little time to study forex as I am a student and a part time teacher... Making tests, giving tests, giving and grading homework, not to mention my own homework form my teacher at my university. However I am very interested in the potention that forex offers. As far as the money management... Well, I think that some people that are on these forums don't want to give all the answers, however... I think that it is possible to grow $500 USD to about $100,000 USD in about 14 months. And I am making my caculations based on specific lot sizes and specific pips targets. I bet that sounds amazing... Let me put out one of my newbie examples... And anyone can correct my mistakes... after all ... I am a newbie... ha ha ha... Let's say that you start with USD $500 dollars. If you make it a goal to make 25 pips per day, or on average 125 pips per week with a USD $1 per pip your account will double in 20 trading days. Also, that would be achieved using a 10k lot. Then After your USD $500 is not USD $1000 after the 20 trading days. You can increase your lot size to two 10k lots.. giving you USD $2 per pip. And again go for a weekly average of 125 pips per week. Now... if you start with USD $500 and it double every 20 days and you double it 12 times what do you have.. hmmm... a lot if you are very lucky. Kind of like that thing when someone says... Do you want 500 dollars for the Summer job or a penny a day that doubles everyday. Of course to open up a one 10k lot with a USD $500....depending on leverage could be a 20% risk. and with a USD $2000 dollar account it would be a 5% risk... So, there is one thing that I haven't mentioned... If you have a larger pool of capital.. Say... USD $10,500 to start with... You only need to risk 1% of $10,000 to give the remaining $500 a 5% gain per day with 25 one dollar pips per day or 125 weekly average. Sooner or later that $500 will grow larger than the $10,000 backbone. I bet this is confusing huh? Will all comments are welcome... But that is what I think the best money management and pip targets are for me on a very conservative outlook.

Had some typos...
this "After your USD $500 is not USD $1000 after the 20 trading days."

Should be "After, your USD $500 is now USD $1000 after the 20 trading days."

Hello there

Everyone has their own plan and Im sure you have thought out your plan very well. Thats what matters.

Its not the destination but the journey.

Your plan sounds fine and I hope it works out very well for you.


Even if you fall, dont stay down too long.

One thing I've learned is not to get excited when you're on a roll - keep your discipline or you can easily lose it.. it's fine to make hypothetical predictions based on account size and leverage but when it comes down to putting A into B... can you handle your emotions?

Thanks.. As I mentioned.. it is an example that I feel is a good money management. As far as the emotion well... I think only risking 1% is great emotional control compared to some people that have the gambling bug. Also, I am only demo trading for now. However, I have been reading a few books on Economics and macro Economics, and I am getting better at see the over all direction of the price action without tons of lagging indicators, however, the more I learn, the more I realize how much I don't know.. Kind of like the word sophmore.. It is greek for "know less" ... It makes great sense.. Freshmen come and after they second year they realize there is still a lot to lean. Anyways, I hope that we can get more interaction with Greg. But as he has mentioned, That his publicly posted journal on this forum is for his own benefit and if a person learns from it great and if they don't great. I did read one of Gregs favorite books Warrior Trading. It has lots of nice ideas.
Good luck all.

Hi Greg,

Thats a nice clock you have there, where can I get one ?

topclock.com

Thank You

Hi All,

It's been long quiet here..... where's everybody
Wonder where's Greg..?

Longing for his insight lately...

Chart and trade summary

Thanks Greg

Was worried that you might have tossed in the towel.

Glad to see you back!

pipEASY

Nice to see You Greg still in the business. I've found it more difficult to trade your system for the past few months. May the new year be more gracious to momentum traders.
All the best to you.

Hi Perez;

I agree with you. My strategy works in Trending Momentum markets. You haven't seen me post charts and trades results for awhile because I've stayed away from the market since the first of December for the most part. There were the holidays in December and the market was bound to be slow. Traditionally January is also slow. I've made a few trades since the first of the year, but most were stopped out at breakeven entry. When that happened, I tossed in the towel for the session. I captured a couple trades worth approx. 100 pips. But yeah, trending momentum has been thin.

So it goes. I stay out of the game and save my money. I'll know when the market starts kicking up its heels again -- i.e., my trades will ceased to get stopped out at breakeven, and they will continue in the direction of my 100 pips target with momentum. In the meantime, I just have to wait it out.

Cheers,
Greg