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Craig Harris Stochastics Method

  • #1,281
  • Mar 3, 2010 12:53am Mar 3, 2010 12:53am
Quoting bpips
You are right but I dont use the moving average to determine if i will take a trade or not...for me I am a price action trader mostly and will look for previous areas of support and resistance for both entries and targets..I would agree that using the MA is the safer entry but if a person understands order flow for me the MA just gets in the way...if you look left on your chart you can see that price was moving away from a demand/support zone created during the london session...
I'd like to hear about order flow. How do you use it?
  • #1,282
  • Mar 3, 2010 2:41am Mar 3, 2010 2:41am
Quoting bpips
if you look left on your chart you can see that price was moving away from a demand/support zone created during the london session...
I also would like to know about this flow order.
You wrote that the price "was moving away from a demand/support zone created during the london session", but you took one short one long trade. Could you show a chart with that zone you were talking about and how it reacted on your trades. Thanks.
  • #1,283
  • Mar 3, 2010 2:47am Mar 3, 2010 2:47am
Quoting bythepound
CH suggests doubling up on the lots after a losing trade - I did this after losing 35 pips on my first trade. I made all of my money and then some back on trade #2.
I watched all Craig's webinars and i didn't hear that he doubles up if he has a looser. I heard that he has an advanced recovery plan and he increases his next trade, but he has very specified rules of that, he looks at a bigger time frame, the time of session etc. It is not only doubling up every next trade if we have a looser. I think it would be to simple.
  • #1,284
  • Edited 9:17am Mar 3, 2010 7:57am | Edited 9:17am
Hi Delta,

I learned this technique from post #42 of this forum. It quite possible that Craig does not use this technique, however I got the impression from Big E that this is indeed what Craig does.

As for me, I have used this technique three times in the past 4 trading days, each time successful, and finished possitive each day.

But it is important to note, one must be very confident in their ability to pick entries, as this technique is essentially "gambling", and while useful "MOST OF THE TIME" - it may bite you if your second trade is a loser, too.

I would strongly discourage anyone from doubling up again (1, then 2, then 4, etc.) as then you are really betting the farm.

In the end, use money management.

Thanks

Quoting Delta
I watched all Craig's webinars and i didn't hear that he doubles up if he has a looser. I heard that he has an advanced recovery plan and he increases his next trade, but he has very specified rules of that, he looks at a bigger time frame, the time of session etc. It is not only doubling up every next trade if we have a looser. I think it would be to simple.
Without vision, the people will perish.
  • #1,285
  • Mar 3, 2010 11:01am Mar 3, 2010 11:01am
Hello all someone asked about order flow. I have posted a screen shot of the H4 and I see sell orders comming in at 5129 so this is the area i look for reversals.

So I learned all I know from Sam Seidon if you google his name he has many very good videos on order flow and explains exactly how it works...

I could go into a lengthy post but he has so much stuff it worth watching...
Attached Image (click to enlarge)
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  • #1,286
  • Mar 3, 2010 3:34pm Mar 3, 2010 3:34pm
Quoting agent6488
I'm not sure what you mean.
Write it in steps.

1. Open
2. Price goes 70 pips up/long.
3. Continues to put in range up to 130/whatever.
4. Dives down/short 130+ ???

Sorry for the delayed response.

This is how I interpret what was written in those doc's we have investigated.

The author said that we are looking for a range of at least 60 pips. Simillar to what CH says.
So we have the market open, and price has ranged up and down from the open at least by 60 pips.

Now if price shoots up (as an example) say 70 pips from the low of the range there is an X% of price stopping and reversing to make a lower low than what has already been established.

Does that clear it up for you....if not let me know, and I'll try and help the best I can.


Best Wishes

Harmudge
  • #1,287
  • Mar 4, 2010 12:08am Mar 4, 2010 12:08am
[quote=bpips;3517900]Hello all someone asked about order flow. I have posted a screen shot of the H4 and I see sell orders comming in at 5129 so this is the area i look for reversals.

bpips,
This is very interesting to me. Thanks for the ref to Sam Seiden. May I ask how you determine your target for such a short? as well as Stop Loss? Thanks,
d
  • #1,288
  • Mar 4, 2010 12:55am Mar 4, 2010 12:55am
Quoting harmudge
Sorry for the delayed response.

This is how I interpret what was written in those doc's we have investigated.

The author said that we are looking for a range of at least 60 pips. Simillar to what CH says.
So we have the market open, and price has ranged up and down from the open at least by 60 pips.

Now if price shoots up (as an example) say 70 pips from the low of the range there is an X% of price stopping and reversing to make a lower low than what has already been established.

Does that clear it up for you....if not let me know, and I'll...
Doesn't seem very useful in that sense.
  • #1,289
  • Mar 4, 2010 1:53am Mar 4, 2010 1:53am
Quoting harmudge
Sorry for the delayed response.

This is how I interpret what was written in those doc's we have investigated.

The author said that we are looking for a range of at least 60 pips. Simillar to what CH says.
So we have the market open, and price has ranged up and down from the open at least by 60 pips.

Now if price shoots up (as an example) say 70 pips from the low of the range there is an X% of price stopping and reversing to make a lower low than what has already been established.

Does that clear it up for you....if not let me know, and I'll...
Could you please prepare an example of this? Maybe a chart showing this method?

Thanks
  • #1,290
  • Mar 4, 2010 5:35am Mar 4, 2010 5:35am
Quoting bpips
Hello all someone asked about order flow. I have posted a screen shot of the H4 and I see sell orders comming in at 5129 so this is the area i look for reversals.

So I learned all I know from Sam Seidon if you google his name he has many very good videos on order flow and explains exactly how it works...

I could go into a lengthy post but he has so much stuff it worth watching...
Seidon seems to be looking for consolidation similar to the CH system. I'm not seeing that in your screen shot. Are you just looking for spots where there is a lot of potential for selling?
  • #1,291
  • Mar 4, 2010 6:59am Mar 4, 2010 6:59am
Here is my gift to you guys for all you info. After studying the webinars from 12/17/09. I figured out Craig's 12-3pm est strategy. Here it goes. He talkes about how he gets atleast one perfect trade a day from the pairs he trades (gbpusd, eurusd, usdcad, audusd, and eurjpy). This is a counter trend trade after the close of the London session. He takes a fib of the whole day (from open to 12pm est.) from high to low or low to high. He is looking for price to be at the lower 1/4 or upper 1/4 of the days range at the end of the close of the London session. Then he trades back to the 23.6% fib area for profit (counter-trend). Remember after the London session closes, only the US session is open. You should backtest and see the results yourself. He is correct on getting atleast 1 trade per day from all the pairs that he trades. That is it. Enclosed is a screen shot from his webinar.

1. He watches for any news. If news after 12pm est then no trades. Usually there is no impact news after 12pm, until the start of the new day.

2. Price has to be in the lower 1/4 or upper 1/4 of the days range.

3. Then he trades from the 0 until the 23.6% fib (also watches Big Numbers 00, 20, 50 80 areas for take profit) countert-trend.

4. He uses the same breakout strategy as usual. (Reversal candle pattern with stoch agreement), then takes the trade back to the 23.6% for profit.

5. He usually gets 1 trade per day from all his pairs that he trades.
KYSS - KEEP YOU SCREEN SIMPLE - GO WITH THE HEARD - TREND IS YOUR FRIEND
  • #1,292
  • Mar 4, 2010 7:07am Mar 4, 2010 7:07am
Here is the screen shot.
Attached Image (click to enlarge)
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KYSS - KEEP YOU SCREEN SIMPLE - GO WITH THE HEARD - TREND IS YOUR FRIEND
  • #1,293
  • Edited 9:24am Mar 4, 2010 8:24am | Edited 9:24am
Very cool Carlen. A quick test of yesterday's London close suggests that is a viable technique.
I'm seeing some failures of it here and there as well.
How did you figure that out?
  • #1,294
  • Edited 10:48am Mar 4, 2010 10:20am | Edited 10:48am
bythepound..... CH says to double up if you just lost your last trade. However if the second trade is also a loss... you don't continue doubling up.... you only double up once. I suggest you watch his regular videos over several times. I have always got my pips back by doubling up on the trade after one if I lost the previous one. I understand your new here and still learning this method. Glad you joined us. Big E
  • #1,295
  • Edited 10:51am Mar 4, 2010 10:30am | Edited 10:51am
Big E,

Yes, I am new here. I guess I was not clear in my post regarding the doubling up method in order to make up for a lost trade. If I have a losing trade, I double my next trade only once. So, if I was trading one lot and lost on that trade, I will only go two lots on the next. If I lose on that one, I will NOT double up again. I will wait for another opportunity and simply trade one lot again and essentially start over.

Thanks
Quoting eelfranz
bythepound..... CH says to double up if you just lost your last trade. However if the second trade is also a loses... you don't continue doubling up. I suggest you watch his regular videos over several times. I have always got my pips back by doubling up on the trade after one if I lost the previous one. I understand your new here and still learning this method. Glad you joined us. Big E
Without vision, the people will perish.
  • #1,296
  • Mar 4, 2010 11:01am Mar 4, 2010 11:01am
bythepound... You got it buddy.

Delta.... It is that simple...
  • #1,297
  • Mar 4, 2010 12:46pm Mar 4, 2010 12:46pm
Great explanation on this setup...appreciate how this can be useful as I do not trade London...Thanks much.
Cliff

Quoting carlen68
Here is my gift to you guys for all you info. After studying the webinars from 12/17/09. I figured out Craig's 12-3pm est strategy. Here it goes. He talkes about how he gets atleast one perfect trade a day from the pairs he trades (gbpusd, eurusd, usdcad, audusd, and eurjpy). This is a counter trend trade after the close of the London session. He takes a fib of the whole day (from open to 12pm est.) from high to low or low to high. He is looking for price to be at the lower 1/4 or upper 1/4 of the days range at the end of the close of the London...
I get exercise just pushing my luck
  • #1,298
  • Mar 4, 2010 2:03pm Mar 4, 2010 2:03pm
Quoting eelfranz
bythepound... You got it buddy.

Delta.... It is that simple...
So you think you wan't have two loosing trades in a row? And this second trade will be doubled.
I don't know who heard that Craig is doubling second trade after a looser.
I heard from his webinars that when he has a looser he has a recovery plan which is more advanced than just doubling up second trade. He watch time of day, if this is london session he has other rules that afer london close, he watch for larger timeframe in which direction to open another trade and some other rules.
I don't know his recovery plan so i'm not using this doubling up.
  • #1,299
  • Mar 4, 2010 2:42pm Mar 4, 2010 2:42pm
Hi Delta,

As I have stated before, the double-up method to negate a losing trade is risky and I agree with you. You have to be confident of your entry decisions since MOST of the time you will be right if you follow the CH way of trading. That’s why I (as in me personally) like the strategy. However, I won’t always use the strategy though.

Another thing to keep in mind is that one should NOT always let their trade go to a predetermined stop loss level. My default stop loss level for the G/U & E/J is 35 pips, and it's 30 for the E/D.

Yesterday (3/3/10) I made 49 pips with 5 winners and one loser. That loser was only -8.6 pips on the G/U. I looked at price action and saw a pending reversal after I had gone short. I was right, it moved against so I killed the trade. I did not double up on my next entry on this though. My loss was small, so I did not feel the need to double on the next trade – which I made 21 pips on (gee – should have doubled up…).

To answer your question of whether or not we will have two or more losing trades in a row --- YES it is very possible that you will.

Case in point, today I had two losers in a row. On my first entry, I lost 10.3 pips on the E/D – went long at 8:12 am PST. I saw a reversal coming after I went long. I killed the trade to preserve capital. I took another entry long at 9:01 am PST, I went to two lots. Once again, I saw a reversal coming and the potential for a loser. I was right again and killed the trade before it went too far against me - I lost only 1.2 pips.

I have to admit that I am fairly new to trading this way and that it is too soon to tell if this trading strategy (CH method) and the recovery method I HAVE ADOPTED (regardless of whether CH does it or not), will work.

I am up $122 this week on my test mini account despite a few losers because I used the doubling up idea. At this stage, I don't care if CH uses it or not - I am testing it to see if it works FOR ME.

The point is this, it seems that if one simply trades the basic rules of the Craig Harris method and can read price action, use good money management, not let your stop loss orders actually get triggered if there is ample reason to exit early (like a pending reversal pattern or Stoch reversal, news.... etc., you should be able to make money doing this perhaps.

It has completely changed my trading. I have been from one side of this forum to the other - this basic price action method works better than ANYTHING I have ever seen.

I hope this helps.

See my losers today. Perhaps I was trying to go against too big of a downtrend?

Best

Quoting Delta
So you think you wan't have two loosing trades in a row? And this second trade will be doubled.
I don't know who heard that Craig is doubling second trade after a looser.
I heard from his webinars that when he has a looser he has a recovery plan which is more advanced than just doubling up second trade. He watch time of day, if this is london session he has other rules that afer london close, he watch for larger timeframe in which direction to open another trade and some other rules.
I don't know his recovery plan so i'm not using this doubling...
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Without vision, the people will perish.
  • #1,300
  • Edited 2:49pm Mar 4, 2010 2:43pm | Edited 2:49pm
Hi all,

couple of trades taken today in my short time of availability to be by the charts, the sell orders are where I added on, on the euro I have a pending order for another order to add on if support is broken, might cancel that one not sure as of this writing-all totaled over 320pips, even with a couple partials, not too bad considering I was early on ej and had 13 drawdown and late a bit on euro although for some weird reason my boly doesnt show but im a bit late on the trade, no big deal
any questions just ask
hlass
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