Ken's Continuing Successes with EO's system

If you have a paper on your desk with a dollar amount of your goal at the top and then for every positive trade you subtract till you hit zero.

Quitting while ahead is difficult for many. "Hit the goal and quit" usually gets mocked on forums. One trade-off is to go into "sudden death" mode after the daily or weekly goal is met. One loss and game over. This allows the trader to continue while "hot".

If you are looking for 20 pips a day how can you achieve that taking 30 pip losses?

Talk about common sense!

Great stuff Ken

You build it with bricks not sticks........set goals!!! :nerd:

HOLLA

Thanks for the lesson in goal setting, Ken. As long as you keep writin' I'll keep readin'....and printing out your posts to follow.

Ken,

Thank you for hosting this thread. I really enjoyed and greatly appreciate the flash cards. Brilliant. After reading them, the "manual" and several weeks of bad trading I finally hada morning of 4 out of 5 successful trades (though tiny pippage). I look forward to improving my trading and, hopefully, mastering the TWYS techniques. Thanks again!

here is a E/J chart showing the realationship between S/R and retarcement levels our trading zone. Remember s/r is a area so a little shy or over is ok. It is just another thing to help you look a bit harder around that price. The gbp had a similiar chart but a spike long would have made all the difference.

PS these S/R lines have been on this chart for over 6 weeks at least. I never remove any just add more if needed.

Once you start really seeing and understanding retracement levels. using MA's or not . It will greatly enhance your trading for longer term profits. They are the same areas you would scale in and out of trades. I know a lot of people hate using fibs .Like every tool wielded in trading the success is in the hands of those that are using them.

But it is not that hard and even just learning what LOOKS right for a retracement. After yeaars of lokking at charts I know almost without a tool exactlly what % level it is at.

All this comes easier with time but if we don't try to understand and never look at our charts after the fact we will never understand what we are looking at.

Trade Happy ken

A little more things to think about .. That retest candle a Shooting Star is a reversal signal. Normally found at a extreme level. But it is still showing the buyers being rejected after price closed below that area. Any entry like that a tight stop is advised.

EURJPY: Just to put pip amounts on this Sunday move to fill the gap: Trend is up on the 1h and 4h. On the 15m chart, I would enter short to fill the gap, putting a stop loss at Friday's close? And if I want to stay in the trade (if it looks like it's going to continue down after going up for a few pips), instead of closing, I could take some profit, and let a few pips run the retrace back up (direction of the trend)? I'd be "losing" the pips that run up, but when/if it turns down again, I can add pips and ride the next movement down?

If this is wrong and will confuse people, let me know and I'll delete it.

Thanks.

EURJPY: Just to put pip amounts on this Sunday move to fill the gap: Trend is up on the 1h and 4h.

Yes from Friday it is very bullish but as happens a lot on fridays the Volume drops so a proper retracement didn't accure. Why a short on a higher open would be a decent choice.

On the 15m chart, I would enter short to fill the gap, putting a stop loss at Friday's close?

No that would put your stop below your entry. Your stop would be above 125.14 maybe 10 pips or so. Whatever you normally use for your tight stop. If it closed above that 125.14 I would exit and look for a signal to short.

And if I want to stay in the trade (if it looks like it's going to continue down after going up for a few pips), instead of closing, I could take some profit, and let a few pips run the retrace back up (direction of the trend)? I'd be "losing" the pips that run up, but when/if it turns down again, I can add pips and ride the next movement down?

Yes that is correct. Sundays are a bit hard this way as news over the weekend could alter the direction . You have to follow your price action. If you had entered that trade. You would have been up about 50 pip when it first started to retrace. Most people if they think it is a countertrend trade would have covered before that even.

But when it failed to get above that s/r line at 125.00 and a i/b entry formed you could add back what you ahd covered with placing your new stop above that S/R line with a few pips extra.

It is the always looking for those new stop levels and entries which will be the best way to learn trading. As there are many places to adjust a trade and they are also the same that you could use to enter one if your a little late.

If you need more explanation let me know. Ken

Thanks, Ken.

As this thread isn't only about EO's system I would like to add something I believe is going to greatlly improve my trading . I had put these PDF's up before so here they are agian. But after looking through Wormboys Thread and chating a bit about his views. He made the comment that the 15 was abit slow for scalping intraday and the 15 was a slow for positon trading that he liked the 1 or 5 min for intrady scalps and 1 ,4 and daily for long term. So I dug out those PDF's and reviewed and took a few trades last night and this morning. Got 85 pips out of a 55 pip move. here are the charts and the pdf's . This is not for everyone . But it is great fun if you can do it right .. Ken

PS read surfing first then scalping. If you use this in conjunction with what you have learned about EO's system can maybe help you turn the corner. There is always more than one way to climb a pole.

Good post Ken.

Read both those pdf's last year, it's a good read. :nerd:

I have been looking at the 5 minute a little more often, it's pretty cool.

HOLLA

Hey Ken just wanted to say thanks for putting those e-books up for us all to take a look at.

Have been reading the surfing one this morning and just been playing around with the variation 2 method and it has worked like a charm on 2 of the 3 waves down this morning on a 15m chart,marvellous. Only missed by about 5pips or so on the one that failed.

Keep up the good work here,best of luck to you and have a great weekend.

In my PDF of EO's system I placed descriptions of the basic Patterns used in trading. I am wondering if anyone is actually using the basics or are we so focused on other stuff we miss the overall view.

I borrowed these pics from another sight but redid the text clearer.

http://forums.babypips.com/newbie-is...ts-know-4.html

There are some very good traders that continue to just use the time honored basics. Making a very good living off them. The addition of EO's system in cunjunction with this basic info is what would lead to a edge. ( Better Than 50% correct Choices)

I have more to say on this but will be my next post..

Hope everyone is enjoying their weekend. ken

Hello all. Don't get many posts but see a few people stop by to read , Guess I will soldier on...

I want to talk about your expectations today. What did you think was going to happen when you started looking into trading Forex. I know for me it was suppose to be a easy high return investment. I got into it hedging currencies and collecting interest. With the ocasional win thrown in. That fell apart real quick with the economy. We now don't have any interest to speak of except the AUD.

I just know everyone is looking at these threads hoping for that one which will deliver the goods you thought were a quarntee doing this. For you that are regulars on EO's thread you hear his and others fanatstic results. But still your not getting yours. Why not ?

When EO's is on his thread with the information he gives out and others I am sure by now that trade that style well. You should be at least taking enough to be better than 80% of the traders out there. If you took every entry you saw that agrees with all the PDF's and charts posted and managed them half way correct you should be way ahead.

I see this as a multiple issue. One is the newer trader without hardly any education to add to. The information on it's own can be overwhelming. We have many types of trades to choose from that can accure at different levels validating some and invalidating others. We are also listening to people we don't know who could be the worst trader ever or the best. So maybe we have trust issues.

Then we have the exprienced traders been around forever has some good times and some bad. But that level of consitency is always just a finger tip away. They come into this information already full of ideas and strategies some they feel are great and others they may not understand. So they can get into this issue of trying to meld information from one system with the other which can be very good or very bad.

Plus there are many many other issues that come to mind. Most if not all good trading uses historical data to arrive at current possiblities. Some people don't believe in this. If that is the case you have no chance as everything is a gamble then.

But even then with proper Trade and Money mnanagement a person could still come out ahead. I have come to believe this one factor is more important than almost any other. Without the ability to manage good as well as bad trades I think we have little chance of success.

Then we have those that can't get the mixing of trading idealogy short time frames and longer position trades as a single component. This last week I posted some information on scalping ideas. First off it is not intended to supercede any other ideas. It is just another tool that may help some to see possiblities more clearly.

Just like at times we feel lost looking at the lower time charts and a glance at the higher can give us direction. In a very tight ranging market when we may not trade at all but others love to GUMP trade . The scalping ideas can let us see what they see without it. Also the PDF's are just full of very good basic chart movements and flows . That may help some to understand the way price moves across a chart.

That can be a problem. Some can be so intent on watching a MA that they loss the ability to see what is more important. What the price is doing. The price action is the exact same weither you have a million lines on your charts or none. They are suppose to be nothing more than tools to help you to see a possiblity. Once you have located that posiblity your education into price action should take over to help you get into and manage the trade.

If your blindly following others calls or if you don't know why one trade worked out and the other didn't. You don't stand a chance. People get tired of giving signals without feed back and will stop some day. You must learn what you are seeing and why it happens again and again.

So you say what should I do quit ? NEVER . Quiters never win. We all need to find at least one thing that we can understand and trust completely without any doubt. Take that one idea and bulid on it. When I started to really study trading. I knew without a doubt that you could trade this without anything on your charts. That once you learned what to look for that it would become clear as a bell.

A lot in my trading is like that now. But it has it's cost of lots of screen time. So anyway find one thing you love to use. It could be one of EO's entry ideas that you always spot. Or it could be something you used to use and always seemed to work. You have to start somewhere. You need something to build upon.

I have mentioned Fib levels in the past that alone is a tradable idea some people use. If you have and believe in those you will see right away the entry ideas on EO's system that are related to those. Some people use Pivot levels they are again a system some use alone. But you will find areas and ma's that will align with them at times.

It is the above confluence or combined agreement of differnt trading tools which seperates the sucessfull trader form the others. So find anything that works for you. Then look for the next entry that is close to that one. Another idea which could help with the first trade. Would be to look for the next entry signal that follows the one you love.

You should have seen by now that the system being a combination of short and long trading ideas. Goes from one trade right into the next. So if you have entered a trade off one you really underrstand. Then your Profit target should also be near a reversal trade entry.

To be stopped out is just another sign that a trade going the other direction could be possible. The list is unending and thier seems to be those that take and get every trade available. But don't worry about them start taking the ones you see clearly. If you have winning trades and you don't know why it is unsubstainable. You have to know why you win or lose. I hate it when someone says the market is against me. It is a thing . So place the responsebility where it belongs and also the only place your trading can change.

I have a bit more to say but it will go off on another tangent so i will do it later.

Take Care Ken

Ok; Now what ? So we now know that we need a starting point of a real thing that we understand then we can progress forward trying to add to that idea.

But now I want to see what some basic things that can help us to achieve our goal of success. When we were young and our family and friends is what moulded us into the kind of work ethic we now have or possiblly it was your first job. If you worked with a bunch of slackers and it was a game of who could do the least.

Those types of habbits can follow us our whole lifes. This can also effect our ability to become sucessful traders. If we have a hard time following directions or completeing assigned tasks . When we have to be discplined enough to do things on our own without any outside input it can be a real struggle.

We want to be great traders but to shift our inner core thinking from being a follower to a leader isn't always a natural step. I have seen many people that wanted to be in management fail because they lacked the ability to even control themselves.

When I was in the position and had to supervise others in production type work. It inevtablily required mondane repetative action to get most to a satisfactory level. It isn't that people aren't smart enough it is any new action always requires us to ingrain a different skill set and I bet most of us don't come from a trading background. If you do your probablly ahead of the game.

I think if you ever had the chance to have a mentor to teach you would be gold. But unless you know first hand of that persons abilities I would tread very carefully about investing in the type of training. The next best is probablly like we are doing now. Learning off others expriences but that is limited also and can be very misleading.

It seems that those I think are really doing well and I should follow aren't. Then their are some that do I mean so good at times thousands of pips a week. Yet they have those underlying tones that something isn't quite right.

The ones I like the best are those that day after day make the same type trades and even if they aren't the best they stick to their ideas. Their are some that I can never figure out what they are looking for because every entry seems different.

If your going to praticapate in a thread you need to act as if it is a training course. Do your own daily analysis first if possible and compare to the best to see how your doing if your not close post the question why. This is about your freedom and future don't be timid.

When those you trust put forth levels and possible trading areas . Mark those with a different color then when you have time go back and see what they saw to get that level.

Adjust your account or trade demo to lose the fear of trading. if you don't take the trades you will never trade alone. It should be just a matter of hitting a button to trade. The thought of risk and lose should never be part of your plan that should have been figured out ahead of time and forgotten. Unless you trade completely different ideas the stops should be close and not reguire calculating for every trade.

The whole idea behind this system is to lessen the stop placement to the smallest posible. So just figure the biggest you would use normally and adjust your risk to that.

One thing that I believe can lead to a repeat of failures is not abiding by your own rules. Yes this is a system provided by someone else. But you must make it your own at some point. You may not use all the entries and just have a favorite you use. That is fine and a good idea in the begining. You may want to focus on a single pair.

Just know your rules and stick to them. A great deal of failures come from breaking your own rules and profitting from them. It is one of the easyiest things to happen. You do something wrong and it works so next time you may risk a bit more and it works then it goes bad and you lose big. But you have now set a idea and it can be a beast to tame.

The above is my issue and I am working hard to cure it. I have no problem with entries may not hold as long as I like. But profit is profit and with continue gains they get longer and longer. But until you reach a level where a retracement and possible loss of your gains doesn't bother you it maybe hard.

One idea is to close your trades with a stop. When price moves past the point you would normally close at move your stop ther . You may get stopped out a lot but at times it will continue on without looking back giving use the chance tget some of those massive trades. Once we make that our new normal is when it could get interesting.

Try and stay true to a idea until you completely disregard it. In other words don't strategy jump. Just because you haven't got it yet doesn't make it bad. They goes back to do you know why it was a winner or loser if you don't Then you probably don't know if that strategy works or not.

I personally stick to price action using the basic trading tools and ideas. I also understand a lot of what we use was intended for daily charts use.
That is why you will see under candlestick patterns the candles called Days.

Learn how price moves we have all this historical data that most don't ever look at unless they are back testing a new strategy.. Try spending some time just looking at charts and where price turned and the way the candles unfolded. That is the price action you can learn to spot when it is slowing down and then how it turns.

Even if you don't believe that the past can help you see the future. The mechanics or how the price is affected by the orders at areas of interest. Is a self fullfillng prophecy it will happen that way time and agian. With enough watching and history study . You should be able to spot one or two that can be remembered.

Two of the easist and with the least risk. Would be the retest or stop running and the breakout retest. The second is one of EO's favorites.

The first is at every area of consolidation price continue to be undecided. But finally there is usually one final push to change direction that fails sometimes it may go a lot higher than the previous price. This can be caused by stop running. But it fails and then breaks lower usually with a vengance.

I see people many times fall for this and wanting to get that perfect entry on a breakout jump on to see price just turn and stop them out. This happens time and time again. This is where a little study of patterns comes in they do work. Even if you get a failure your stop would be closer. I plan on covering this next post.

The second is a breakout retest. Just like the previous idea. This one actually does breakout put the proper entry is when it pullsback and retest the consolidated area. This happens at the start of most sessions we have previous sesions range , previous days hi and lo. S/R areas. So a few lines on your chart can lead to some good trading.

This has turned into a novel.. I will be posting some of the common price action things that happen over and over again that we can look for..

Hope you are all having a great weekend. Ken

Hi Ken ,
Just been going through some of your posts in your thread.Just a quick email to say thanks for your information,that you are giving us.It is nice to know the world out there, is not fully of people who just think of taking and also think of money.
May have a few questions after going through the thread.Again thanks
Dragonfx

Hello Ken!

Hope your well.. I am sure your kicking it..

Kenneth,

Thank You. Everything you have written so far makes an awful lot of sense.

Pat.