The Dragon

HAPPY NEW YEAR
Year of the Tiger

http://t2.gstatic.com/images?q=tbn:k...2010_tiger.jpg

yes. This 50 sma channel is just the thing.
first live trades . Little skittish. kept hopping in and out.
But the technique is very good.
Especially at Frankfurt and London opens.
Since this is traded on the 15 min I can trade at work.
Scalping at work was like asking for a nervous breakdown.
But this only requires checking back every 15 mins or so.
Set the stop and put a limit at a faraway target like s2 or s3 just in case there is rush caused by surprise news.
And away we go.
The pace is different from what I have been trading. 3 min trades..
so I will have to get used to holding a position maybe all day. This technique will find those longer hold trades.

this is a good way to do it...

Jiva34,

Would you mind posting your current template?

Regards, and thanks,

Ron

no problem:
the indis are here
see next post for the template.

template:
(to see Japanese candles, superimpose them over ashi by clicking on candle in the mt4 menu)

more simulator practice

just horsing around
putting fibs on the 50 hi and 50 low to get fib channels
if they may be good tgts or give some guidelines.

Thanks for posting up this template and system. I always like to have more weapons in my arsenal and will be monitoring this sytem in the next few months! Thanks again and look forward to reporting back.

Stace

Welcome

The open forums are great places to learn...

It sure is a Zigzag,

I find it useful for pulling fib targets etc =]

running with it..
entered a little late, but still okay...

getting used to the strategy and developing confidence in it.
Still jittery, when I see some gains I have fear that I will lose the gains (like that has never happened before, right?)
but the technique is very powerful and how many times now I have seen that by following it the gains are there...
So again today I jumped in and out when if I had simply stayed with the rules of the technique the gains were there.
So I got a little maybe 20% of what was available...
The next trade shows why I have the tendency to jump out when some gains are there.
So it is the same old story all traders face, factoring in losses, taking them quickly and letting winners run.

took the loss here
it happens
data release to that point pointed to USD weakness, then other data reversed everything, so the signals were there for short.
But the strategy is good because by placing the stop at the 50 hi, I am out of the trade early on.
So if I follow the rules the losses will be small and the gains will be much greater.
I just have to keep at it to gain the confidence in the system.
Total for the day was 40 pips after a few more good trades and the USDCAD loss. It can be much more.

after the downbeat USD consumer confidence things moved pretty fast.
Then there is the usual log jam with the broker trying to just get the site actually functioning.
After all was said and done this worked out okay.
It really was a fun day...

Looks like you understand the system well =]

It IS fairly crucial to follow the rules to the letter every single time, and I have found that when you do this, and start taking some serious pips it become ALOT easier to do so =]

Good Luck mate, post any news you have with your trading with the system or the Dragon =]

One thing I will add,

when trading my channel system, If you are the trader who wants to capture the majority of the pips within a move then a more refined exit will be necessary - or so I have found.

Rather than taking pips when price closes within channel, we will utilise another method.

Of course, if price breaks 50 channel, and then within a few pips closes, by all means take whatever loss you were given.

But then if it breaks straight away afterwards, take the trade!

However, when riding a trade, I have found Fibonacci targets to be a more effective method for capturing a greater number of pips.

So, what do I do?

Riding a trade, at the 123 Fib or higher, I set my stop two Fibonacci levels down.

So every Fibonacci level that I 'achieve' in the trade (broken above), I move my stop loss in order to maintain a two Fibonacci level distance between price.

This works.

There is nothing wrong with using the channel for all your exits, however I have found that this is far more effective, and nets you a greater deal more pips.

Good Luck =]

Ya... Good!! Many thanks for your share.

Yes, the dragon is a creature of habit.
This technique captures his moves very nicely.
Would you post a screenshot illustrating how you set up stops using the fibs?
We would all like to see.
much thanks
jiva

Right, First thing you need is a handy tool called 'set Fib price'. (Attached)

I take no credit for this, it is just something I have picked up.

This, when installed, will show the price of a Fibonacci level you have pulled.

So, firstly you need to pull your Fibonacci levels for your trade.

Secondly you need to then open up your trade ticket, and modify it. Then type in your stop loss price, hit enter and bam, stop has been changed.

Then when price in a move breaks (opens and closes above) a Fibonacci level, I then move my stop.

Everytime price breaches a Fib level, my stop moves up a level.

This should mean that your stop is always the second Fibonaccci level away from price location.

I am also in debate as to whether or not I should edit the strategy to move my stop just one level away - but only when price is about to break a level.