The Dance

Endroute's right,,, always at COB,,,, didn't hold,,,,

I really gotta go to bed...
night

I stayed out.

Good night, thanks again for the advice.

Firstly, thanks to eclayf (and endroute) for presenting your way of trading and all the valuable knowledge via manual and replies!

I have learned so much in the last week.

One question regarding previously mentioned "potential trade" on EU. As I see the chart (espec. 1h), isn't there a possibility of "porcupine" forming?

regards,
Tomo

I was too wired from such a good trade to sleep Trotty, so here is the analysis of the area you asked about, then I really am going to bed.

God bless,

Great stuff.

For the morning (well, your morning!)

I also noticed the same thing but only after i'd let pa show me which way it wanted to go. I had tunnel vision initially and was only looking at what was going on south of the candles not north of them. Only later did I notice the descending highs.

Often I find analyzing trades not taken or bad trades can be more educational than the ones that worked out well.

Hello -

This trading system has beeen good to me about 20 pips so far per day using a live account.

I have had success with the 35/50 template and your mentors template as well. I cannot thank both of you enough.

This morning I took the buy signal close to the area talked about by Trotty in the Euro /usd. I bought when the price was about to touch the 62. Once in the price proceeded to continue thru the 62 and the candle terminated with a long wick on it's bottom so I thought the shorts were exhausted I placed my stop below that wick plus the spread. The price proceeeded to piered the 10,21, 35,and 50 and then reverse its way up to the 95 level. I had a nice profit! Based on the 1 hour and how things looked on the 15min timeframe I thought I would stay in the trade.


I probably should have taken my profits but was excited and had tunnel vision. The price slowly proceeded to slip below the 35 and I told mydelf that once it reached the 62 it would in fact reverse but I was wrong. The price proceeded to pass thru the 62. However losing never felt so good because of your thread I had been taught how to preserve my profit by moving up my stop.

In essence I had been faked out but not beaten. Based on the last few days and more practice and feedback I fel like I am learning how to fish.

Thank you for taking the time to discuss a fake out and to me it lets me know that I am learning the system and sometimes I will be tricked.

Sorry for the length of this post but when someone helps you like you and your mentor have.

I have to take the time to thankyou!

Thanks for given me a thread that I connect to.

Hi Clay,

In the early morning today I 've seen a set up and thought to have a go. The price constraint by 50MA and started moving up. so entered in halfway of the candle. bagged a quick 16 pips before I went to my full time job (In fact violated one rule in my first trade..sorry Had no other option).I placed a stop loss of 19 pips but right after it bagged more than 10 pips, moved stop loss to breakeven.After I baged more than 15 pips closed the trade so as to get ready to go to my full time job.Hope I would get the Rythm of this Dance and able to do it full time (by bye to my full time job ..)

Thanks

Suranga

Here is a trade I had today on the GU. We had a two bar pullback (I consider this a pullback on smaller TF charts) to the 50 MA. Just under the 50 MA we have an up trend line and a Pin Bar forms. I typically don't trade the touch of the MA I usually wait to see what the next bar does before jumping in. In this case we get another Pin Bar looking candle. I know were at a round number 1.5300 and rejections can happen but there were just too many things telling me we should go higher. We have double Pin Bar action, a good retrace after a long up move, MA and trend line support.

Got in @ 1.5294 and out @ 1.5314. Exited the position on the retrace candle. Now if you were really paying attention, you could have taken a touch trade at the 10 MA and gone long there with little drawdown.

Again, I'm not looking for big moves on every trade, I will take them if they happen, but I am happy consistently taking 10 - 20 pips from each entry. My goal using this methodology is to consistently take out 20 pips every day I trade.

Hi forexplorer, sorry for the long pause, but I really needed some sleep as yesterday I was up way, way too long. Your answer is "probably" but who cares?

We don't trade "possibilities" of what may come. We only trade the "probabilities" of was IS HAPPENING on the chart in front of us.

See the attached chart.

Awesome post. You took time to analyze your OWN trade the way one MUST learn to do. THAT IS AWESOME guy,,, just awesome and makes me so happy I could just "spit nickels" over it.

The fact that you are "learning to fish" is the best thing one could tell me. THAT IS THE REASON FOR THIS THREAD, the MAIN reason for it. Endroute or I could come close to calling signals, but it would NOT help. It would in fact become a problem and a "stumbling block" for the traders trying to learn. The fact that you and others are learning HOW TO FISH, not how to follow is AWESOME,,, just AWESOME to me.

God bless

Hello Eclayf,

I am slowly working my way through the manuals and instructions of your very interesting strategy. One question, when you talk of a touch trade, do you enter the trade on the touch of the MA by the candle or do you wait until the close of the candle. My assumption is enter at close of candle but just need that confirmed.

Regards,

Anthony

HI Suranga, I'm going to comment by the numbers I inserted in the quote from your post. But first, good effort. Glad it worked out for you, but your timing is a bit off and I am glad to see you recognized that you violated one of the rules on the trade. Let's see if you violated more or not.

(1) OK,, first price has broken the 50 to the down side in your chart. SO "constrainment" technically isn't happening here, though there does appear to be some sort of S/R just below the 50. So your "seeing" is a bit off here. The trade does happen in an area where "Ping Pong" is common and I will explain that concept in the next revision of the manual, but here, the "seeing" and reasoning is a bit off.

(2) Entering at COB is the ONLY way to trade in this strategy "by the rules" except on a "touch trade" which is always a counter intuitive entry as it catches the trade at the exact reverse off an MA. Entering "half way" in a candle is very dangerous, but can be done IF you are "fine tuning" on a lower time frame such as the M5. I have posted a chart below that demonstrates that.

(3) Having a small target on trades that are "iffy" is the ONLY way to trade them and you still must be very, very careful.

(4) This is the BEST thing about your post, you recognized that the trade violated at least one rule. I applaud you on that. A little more practice on the Simulator will remedy the "seeing" issue, and a little more time with the manual will help with knowing the rules a bit better, but congratulations on recognizing a violation of the rules in your trade. This is the KEY to trading well.

(5) Good use of Stop Loss management. Not sure what you were using to determine the levels at which you moved up the SL, but the fact that you did is a good thing. NOW, if you moved it up because of an emotional reason, (fearing a loss of pips, or unsure of the trade) then it's an issue you need to work on because those emotions will kill your account and destroy your trading. You ABSOLUTELY MUST have total confidence to master any strategy and to be able to get rid of the emotions, for the most part, in your trading.

My trade last night is an example of my own work on mastering the emotions of this career field. Once I had actually entered, I allow myself to get "excited" over the fact that the trade was going so well and then I allowed it to retrace a bit too far against me. It was still a great trade, but if I and NOT been excited at the moment it is entirely possible I would NOT have allowed it to take back 29 pips from me. It would have been BETTER to exit keeping some of those pips and to look for another "seat on the bus" as Endroute and EOHater say.

So,,, master the emotions, master yourself, then you will master your trading faster.

(6) The Markets DO have a "Rythm" to them and you can get to the point where you can literally "feel" it "in your bones" and then you will find your self taking trades you haven't even seen the setup for yet, but you will just "KNOW" that it IS going to work out and after the trade is over, you will be able to review the trade and understand what your subconscious was "seeing" that made you take the trade.

My trade last night was a small example of that issue. I had posted earlier in post #131 (http://www.forexfactory.com/showpost.php?p=3556753&postcount=131) that I expected Gbp/Usd to make a "run up" to the D1 35 SMA. Often the Daily "Touch Trades" can give you several hundred pips in a single move or two over a day or two.

Endroute is actually in a trade like that now, and is up a few hundred pips from it, which I have asked him to explain AFTER he closes it, so don't ask for it, he will just post it, his entry and reasoning, how he took it and why, and how he managed it, once he exits the trade.

Last night, I "KNEW" the market was going to run up and run up fast, so when that trade started I was pretty sure this was a beginning of a fast up move. THAT was what excited me and why I felt "comfortable" entering after only five minutes. I actually was trying to enter before that, but had the Eur/Jpy chart active and because of the excitement, entered twice on the Eur/Jpy, intending to enter on Gbp/Usd and had to wait to get out of that before I could enter on the Pound. TOTAL newbie error, but I'm definitely not perfect either.

So,,, in short, get a better handle on the rules, be more careful on "seeing" the entries and the signals, and if you are going to use the M5, just be sure not to get too focused on it's signals over the M15.

Here is the chart I rolled back to your trade to give a better analysis of what was really going on.

Hi Anthony,

Touch Trades are extremely counter intuitive trades. You enter at the TOUCH, NOT at the COB like all other entries in this and most other strategies.

God bless

P.S.
Ok,, have some work to do back on later for trading.

Great attitude Dave, and it you stick to that you will master this strategy a lot faster than most. You will also gain confidence a lot faster and begin to "see" the larger moves and begin to be able to stay in them better a bit faster than most will.

There are lots of days when, to quote my friend Endroute, "the market is only handing out 10's and 20's..." and those are the days that frustrate me the most as I tend to swing for the bleachers on every trade, which ends up costing me a bit.

When I move my SL to +10 or +15 on the good trades, I do better overall than when I don't.

I have given some thought to using a multi-position money management solution where I take off the FIRST position after 10 or 15 pips if price is hesitating too much, then move to BE on the second one and wait it out.
BUT, for the first few more pages here, I would like to NOT talk "Money Management" just yet. Let's focus on "seeing" the really solid entries for a while.

Once a few more are "getting it" then we'll move to Trade Management,,, and that is where my personal failing currently is. Perhaps Endroute will be willing to help us in a week or so when we get to that point in the learning process as his trade management is really awesome.

Then after that, or perhaps in conjunction with it, we will begin talking about the best ways to use Money Management.

The reason I'm not too worried about Money Management at this moment, is because the Scripts handle some of that automatically by using them. They set the "risk" per trade every time if you remember to use the "A_SetLotSize" script at the beginning of each session or each day to set the "risk" to 2% for the trading session/day.

ok, thanks eclayf for detailed explanation!

Tomo

I don't know why the attachments keep ending up out of order, but I don't seem to be able to fix it...SO ,, the FIRST ENTRY is actually the LAST image below. Then the rest are in order.

OK,, here is a trade I just finished, and got +30 from. It shows the "real time" "look" of the charts, AND a bonus. This part this "bonus" is actually something that to me, is pretty exciting.

You see, my entry was fine on this Touch trade, but I moved my SL too close too fast and on a small "jump" it knocked me out for about a 6 pip loss,,,, BUT, having total confidence in the H1 Touch of the H1 35 SMA "equivalent" moving average in this chart (would have been the normal H1 35 on the basic setup), I just re-entered IMMEDIATELY and got back in, re-claiming ALL the pips I lost and ending up at + 30 for a total of +24 pips on the trade.

You can see that clearly on the images below.

NOW,,, for "newbies" I don't recommend this because you don't have the confidence of the experience in "seeing" a trade yet, BUT YOU WILL GET THERE with this strategy. IT WILL HAPPEN!

NOW,, for one more thing. I have talked about a "Ping Pong" area of trading potential between the 35 SMA and the 50 EMA,,, I have posted another image after the exit image that CLEARLY shows what I am talking about. The "Ping Pong" is between the H1 35 and 50 lines.

THIS is something I am researching a bit now, DO NOT trade the "Ping Pong" yet, lets focus on the basics first, then as time goes on we will progress to the Ping Pong.

God bless, here's the charts...

Man, oh man. Look at EJ tonight,,, soooooo many good signals. I was focused on GU,,, but EJ sure has had 'em tonight too.

For the first time since I started trading, I AM HAVING FUN with this strategy.

I can't get the scripts to work on the buy and sell. I have all the settings in the options set right and I have allow expert advisors set to on.
The scripts that close work ok If I open a trade manually. And the scripts that move the stop loss and the tp work ok when the trade is entered manually.

But trying to enter the trade with the Abuy and Asell won't work, anybody have any ideas as to why or maybe I am doing something wrong. I click on the script and drag and drop it on the chart, does it matter where I drop it?

I'm using Forex trading direct LLC. meta trader 4

Thanks for any help you can give me.

Ron

Good morning (or afternoon for you?)

I took the last signal you've ringed but on the break of the lower high red bar. Rode her down for 30 pips, could have got much more but was happy with that.

But....I didn't think it really met the rules, I just liked the look of the PA. Would you have taken this on the touch of the 10ema (even though it ended up breaking through)?

EDIT: Just re-read it. You have dotted MA's from high TF's don't you? These trades were taken on those bounces I think.....

Most likely in the section where it says "allow live trading" you don't have it clicked to allow it.

This is how I have mine set.