Ken's Continuing Successes with EO's system

First look at 4H trend is up. Second we broke earlier daily high and after cross 35/50 price test it. In 1H trend change to neutral price was ranging for couple of hours ( shooting star pattern must be on top ).

Hi Ken,

I have read a great many of your posts on EO's thread and just wanted to give you some encouragement. I completely understand the frustration of trading a strategy you absolutely KNOW will give you great returns and not "yet" being able to master it.

I have been working on exactly that part of a strategy for a while now. I am getting much, much closer, but still have not mastered it.

Having the courage to start a thread is admirable to say the least. Cudos to you my friend!

I would like to also second Endroute's comments. The hardest thing for a trader to "see" is the trade forming in "real time." After the fact we can all see them and how great they were.

If your posters would take screen shots of their trades when they enter them, then keep them handy and post them AFTER the trade is over, with another screen shot of the trade when they closed it. Then add the commentary to their posts as to why they entered and why they closed, two things will happen.

The first is that everyone will get used to looking for GOOD trades not bad trades.

U.S. treasury agents never even see a counterfeit bill until the end of their training. The reasoning is that nothing ever really looks like the "real McCoy" so to speak. After studying lots and lots of GOOD trades, the bad ones become self evident as they are forming, same as the good ones will.

I personally believe that the only "bad" trades anyone should ever see are their own and those need to be analyzed COMPARED to the good entries that were similar.

The second thing that will happen, is that everyone will eventually also get used to what good exits are all about and why.

If this were to become a "rule" in your thread, you would end up with tons of posts with two images each, one the entry and one the exit. All of the images would be of good entries "as they happened" so to speak, but after the fact so no one begins to depend on them as "signals" for trades.

Just my two cents and we all know that that buys in today's world.

Lastly, keep up the great work of analyzing the charts. You will get there my friend, same as EO did, same as James16 did and many other great traders.

By the way, I know one of the traders who has posted here had consistently averages 350 to 500 pips a week for a long time now, using a very similar strategy. I watched him do it through the really volatile markets last year, and through the Holidays, and even now, is still doing much the same.

It can be done. It's not hard, "seeing" it is the hard part, but once that is mastered, it's pretty easy, so I am told.

God bless and keep up the good work Ken.
Clay

--edit p.s.--
One piece of advice I was given was to find one signal that you can "see" instantly and easily and master trading that first. Then move on to another signal. Hope it helps.

As with any shooting star you could have entered on the next open of the 1 HR . Or watching your 15 MIN chart the 5:00 candle went up after a shooting star on that chart as well. It is the second red candle after the shooting star. So you had a 15 Min shooting star, Then a confirmation bearish candle . That candles is when the 1 HR shooting star closed (printed). The next 15 min goes up the wick a little of the 1 HR shooting star then turns back. This is your best entry.It failed to go higher than the open of the previous 15 MIN. candle. Then turned.


But the confirmation of the 15 MIN shooting star with confriming bearish candle . Then the 1 Hr. shooting star is how we use our Higher time frames to take the safest entries.

The chart is showing explode views of the 15 min chart. The seperations are 1 Hr. the green line is the same point on both charts. The Best safest entry was the top of the 15 min or 1 hr candle marked.

We take trades off a single candle using confirmation of ma's and price action . But if you go to the PDF and read the Data sheets on the candle patterns we use almost everyone will say it is a two candle pattern. That the shooting star should print then a confirming following candle.

So waiting for the second 15 MIN to close which also allowed the 1 HR to print as a shooting star was icing on the cake. Then as you can see was the entry of the day sending price much lower.

This is what we are trying to see and how we trade the higher time frames with the lower.

Aslo as you can see allows those entries with little or no drawdown.

Now go back on your real charts and see what this looks like on them not expanded like this is. So you will know what to look for next time..

Aslo that is a pin. P1P.

Yes that is A DBHLC. A pin looks just like it's neame a straight Pin. In PDF under reversal signals, a shooting star bearish, and a Hammer Bullish are pins.

The DBHLC and DBLHC on a lower time frame chart can make a pin on a higher time frame chart. And that can also give confirmation to a trade.
If we can continue to look for and see these things it will become clearer as we go.

Be paintent with me as I also trade for a living and may not be able to anwser detailed questions as quick as I would like.

The 35/50 reversal trade was about as perfect as they get. A nice retracement to the 50% fib level. We don't use the fib tool but this is what the trade is a retracement which is also what the tool does. The Ma's you will find are at areas that most of the tools you have used in the past were showing you things as well.

Dear Valued Trader,
The U.S. Commodity Futures Trading Commission (CFTC) announced on January 13, 2010 that it is seeking public comment on proposed regulations concerning retail forex trading.
As part of the proposed regulations, "leverage in retail forex customer accounts would be subject to a 10-to-1 limitation," which means 10:1 leverage would be the maximum amount allowed for forex traders in the U.S.
An example of how the proposed regulatory restrictions would affect a major currency pair appears below:

Maximum Leverage under
Current RegulationsMaximum Leverage under
Proposed Changes USD/JPY USD/JPY100:1 leverage (one percent)10:1 leverage (10 percent)1 lot (100,000)1 lot (100,000)Margin requirement: $1,000Margin requirement: $10,000

We believe that all traders should have the right to choose the amount of leverage that is appropriate for his/her risk appetite, and that this basic principle of 'choice' is being threatened by the proposed CFTC regulations.
Should you feel strongly about the proposal, there is still time for you to help determine the outcome of these proposed regulations. You can make an impact by sending comments directly to the CFTC at: [email protected].
Please include 'Regulation of Retail Forex' in the subject line of your message and the identification number
RIN 3038-AC61 in the body of the message.

You can also submit your comments by any of the following methods (include above ID number):

1. Fax: (202) 418-5521
2. Mail: David Stawick, Secretary
   Commodity Futures Trading Commission
   1155 21st Street, N.W.,
   Washington, DC 20581
3. Courier: Use the same as mail above.

In the next few days, GFT and the rest of the U.S. forex industry will be releasing a more formal opinion about the proposed changes. If you wish, you can read further details about the regulation on the CFTC website by clicking here.
In the meantime, we encourage you to voice your opinions to the CFTC and your local U.S. representative.
As always, we thank you for your business.
Best Regards,
GFT

The above E-mail just arrived . This is a important matter for small retail traders. It will make it very hard for a person with a small account to grow it to a level that is able to give him anything worthwhile. Trading the gbp/usd. your maxuim risk would be about .5% by the new rules. I regularlly trade 3 % very safelly . it is your system and ability to limit losses that should decide your risk or leverage.

I don't dabble in politics but there always seems to be a underlying issue at hand. You should at the least voice your concernings through a e-mail to the address posted an dmaybe your states officals. This is your choice but it gets harder and harder to trade in this country.

Other option would be a offshore account .

Not telling anyone what to do but this is the e-mail I just sent..

We just had a reduction in leverage . The only thing you are accomplishing is forcing the retail Forex market offshore. Which in the end will cost the U.S. in the way of taxes and growth of this sector of business. People I know that trade REAL money and most of these rule wouldn't affect as much as us little guys have already moved there accounts in fear of this increasing intervention of good will but bad ideas.

The 100 to 1 level we just got reduced to has already hurt some. You can't protect people from themselves at the cost of others. They will find another way to risk their money for that golden egg.

So for One I say leave well enough alone. The people have to be able to try and and succeed on their own abilities from the lower rungs of the ladder. Don't be part of the problem preventing that chance.

Ken Lee

Ok now that we have that at of the way.. Hope your having a great day..

Thank You for the encouragment and comments.

You make a lot of great points. Yes the opening and closing snapshots of the trades will make it easier to analysis our trades. Plus if the entry is great but the mangement was bad. The first post could be saved as a example of what to look for.

and disgard the rest.. if need be..


Yes the primary goal here is to teach and learn to see. I always believe that we can teach and learn at the same time. As we as a group are looking for the same ultimate goal the best entry with the least drawdown and most profitable.

Another point you mentioned was about bad trades. This is something that actually keeps me going. The fact that when I have a bad trade I know normally before the trade is over, sometimes as soon as I hit that button . What I did wrong. The market does nothing right or wrong it is just reacting to the buying and selling of currencies and for us to succeed we need to learn to accept that fact and learn to fit into it's movements.

We have gained the expriences of those before us. Which will shorten the learning curve Think what it would take to develope these ideas and systems on your own. We are here because we believe in this one. So all we can do is continue to strive to use it properly.

Many Green Pips to You. Ken

I slept in this morning and missed those great entries with the higher time frame confirmation..

Do you see the Hammer on the 1 Hr. chart bottom candle (PIN). also closing right on the major ma's. Then the retrace into the wick of that pin then up.

The entry on the 15 wasn't the best. But a clear retest of the 200 sma. If that wasn't for you then the next a engulfing candle. Entering after it closed.

We don't have to get in right at the top or bottom . The goal is stress free consistent gains. You have to be comfortable taking the trades. IF you take a later entry at times that can prevent you from having drawdown others will have to go through.

That Hammer (PIN) also corresponds to a flat close on the 4 hr. more confirmation.

Somebody noticed this nice G/U 1 hr 15 min short pattern?

Hey Ken,

I hope it's allowed to post trade suggestions and screenshots.

Yes another pin Shooting star on the 1 Hr.. Good Eye

Nice Charts ... Thanks For posting them

There was a similar short opportunity on E/J at 4 pm gmt after the doji on the 15 min and the pin on the 1 hr chart.

I actually went long on the red arrow marked candle after the hammer candle ended.

The previous 1hr candle is a spinning top/pin bar,call it what you will,and as far as I'm aware just indicates indecision and does'nt indicate any solid direction to follow.

I took the same trade

Good entry. Yeah 1 Hr two pins back to back pretty indescisive. maybe the start of consolidation . When we can't see anything clear on the higher time frames is when the 15 really comes into it's own.

Are you still in the short trade as well as highlighted on your chart ?

I'm confused as to where your thinking is. Unless you are in and out of the market like a fidllers elbow ,or trade two accounts and hedge ,so to speak

No it was only a scalp. My first tp was hit and I closed the rest some seconds before the pin has closed.

Ah ok gotcha,I don't know how anyone else feels about this,but I think it would help if we stated what we are potentially looking for in our trades,by that I mean a scalp, or hold ,get s/l to b/e and ride it for what it's worth,or longer term trade if taken off a higher t/f like 1/4 hr chart.

Good job btw.