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The Dance

  • #341
  • Mar 26, 2010 11:58am Mar 26, 2010 11:58am
Quoting Trotty
Thank you endroute, it's very reassuring when you hear an experienced trader confirm your thoughts.....
Couple of things I would add Trotty. One is that you need to capture the upper part of the chart so we know what currency this is. Your spread on this pair, according to the chart is 16 pips and that is huge, but if you're comfortable, it's up to you. For total newbies, it's probably best to trade the lower spread pairs.

Also, if the spread really is 16 on this pair, you SL with THIS strategy will often be less than the spread by quite a bit, + spread. Most of the time the SL in this strategy is a little more than the spread +spread. Hope that's not too confusing for those trying to follow.

Now for some good stuff.

Quoting Trotty
...Obviously we want them the other way around...
We don't need the 35 to be on top for a long, or on bottom for a short. The rules say when PRICE is above them both go long and below them both go short. This is NOT a moving average cross over system. Remember the 50, because of it's formula slows FIRST and OFTEN will be ABOVE the 35 when a solid signal arrives, so don't let this spook you too much, just be careful as the trades where the 35 IS above ARE stronger, but as seen in your post, you can still have really good trades when it's not.

Quoting Trotty
The gap is also big and pa has only just burst through them. We have a poor angle too. However, there is a good bounce worth a few pips on the first test - I would no way take this though....
If you look just to the left of the chart, there is also a P/A S/R level very recently in the past at almost this exact same area. SO,,, I probably would have taken that first "touch" and probably gotten out at the little spinning top immediately after, OR left my SL where it originally was and waited to see if there was a second test, there often is and used it to pick up another position at the same level. but that sort of trading comes with more experience later with more confidence in the strategy.

Quoting Trotty
It then re-tests and the second test has a red candle with a small wick that closes on the 50 and 10 ma's. This looks like a decent set-up to me, despite the factors against us and it not entirely following the rules. Price races away after that second touch. Should we be looking for these sorts of set-ups eclayf because they scream at me!!!
Like Endroute said, pretty low risk setup and a good trade.

Keep in mind, this strategy is ALL about discretion and the rules are how you "filter" the trades. For newbies, they should be hard and fast immutable objects and you should look for ONLY PERFECT entries, but as you gain more and more experience, you WILL start to see things that TO YOU literally jump off the screen, slap you in the face and shout "TRADE ME, TRADE ME, TRADE ME NOW!" You're starting to "get there" when that begins happening. Then IF one of those fails, you can immediately go back to the rules and "see" where you went wrong, self correct and keep moving excitedly toward great success, EVEN IN THE FACE OF A LOSS, or even several losses. All because of the powerful simplicity of this strategy.

The hardest part is it's simplicity, the best part is it's simplicity. Take advantage of it and have FUN!

Quoting Trotty
You get instant profit here, if you take the touch. No waiting around to see if pa is going to go your way. It shoots off your way straight from the get go . No need to have more than few pips stop here, it's got everything going for it. Even if we just wait out two candles, you're going to net 4% on 2% risk. A thought I had on that sort of rapid bounce would be to wait until a candle closes back through the 10 ema against the trend direction. If you took that approach, you'd still be in this trade at 80 pips as I type! That's a staggering 1:8...
Couldn't have said it better myself. The extremly low risk of these trades is amazing even though they are EXTREMELY "counter intuitive." The RR of 1:8 is NOT uncommon on them either by the way.

Overall good analysis. Thank you for the input, great trade setup.

One last thing, not sure what you're using as for image capture, posting and so on, but even though Imgageshack is OK, using the smaller images makes that unnecessary.

Good work Trotty.
  • #342
  • Mar 26, 2010 12:00pm Mar 26, 2010 12:00pm
Quoting jvfx
Finally a week ending in positive pips. Still experiencing losses but they are now less than the wins. Engenders confidence for the future.
Music to my ears jvfx. Music to my ears and a song in my heart over another's success. Keep it up, you WILL get there my friend.
  • #343
  • Mar 26, 2010 12:56pm Mar 26, 2010 12:56pm
Quoting eclayf
Couple of things I would add Trotty....
Cheers for that eclayf, another very thorough response, greatly and genuinely appreciated.

Don't worry about that spread. It's 1.6, i've no idea why it come up in that format but it always misses the decimal point. GBP/JPYsay it's 50....yikes!! I'd never make any money with those spreads!! Thanks for looking out for me though.

What did you mean by your last point? I just saved the image from MT and then uploaded to imageshack. What's the better way?
  • #344
  • Edited 3:24pm Mar 26, 2010 3:14pm | Edited 3:24pm
Quoting Trotty
What did you mean by your last point? I just saved the image from MT and then uploaded to imageshack. What's the better way?
First, there are image capture software programs listed on Post 1, number 7. Here is that again, with links to the image capture programs and yes, you can use MT4 to save the images, but often they end up way to big, so it's easier actually to use one of these below. I personally prefer FastStone Capture (http://www.faststone.org/FSCaptureDetail.htm) .

Quoting eclayf
ALL images must be in either .jpg, .jpeg, .gif, or .png format AND be sized so they don't mess with the page width making it hard for others to read and use the thread. There are several really good free ones on the 'Net such as FastStone Capture (http://www.faststone.org/FSCaptureDetail.htm) (free version included in the tools Zip file and the one I use), SnapaShot (http://nicekit.com/screen-capture/best-free-snapshot.htm), HyperSnap (http://www.hyperionics.com/),...
Next, hit the "Post Reply" button on the lower left of the thread or the "Quote" to the lower right of the post you want to respond to. Then use the image upload function of FF, as seen in the next two images.

Once you have uploaded your images, and entered your remarks, submit your post and close the pop up for loading images.
Attached Image (click to enlarge)
Click to Enlarge Name: PostingImages.gif Size: 69 KB
Attached Image
  • #345
  • Edited 6:35am Mar 28, 2010 6:32am | Edited 6:35am
This is mostly a test of my first posting of a chart.
Is it still a good entry if one missed entering at the touch, to enter above the touch candle, touch candle indicated by arrow? The touch candle is a pin bar on the H1, at the 50ema(brown) and a RN
Attached Image (click to enlarge)
Click to Enlarge Name: EU 326.png Size: 25 KB
Barry
  • #346
  • Edited 3:01pm Mar 28, 2010 2:59pm | Edited 3:01pm
Quoting Bary
...Is it still a good entry if one missed entering at the touch, to enter above the touch candle, touch candle indicated by arrow?...
Hi Bary, the entry is "OK" but not a great one. The signal came on the third bar on M15 that couldn't break the RN line and the SL would have been 1 pip below the longes immediately previous wick.

Entering on a "pin" on H1 is ok, but the main problem with it is that you need such a huge Sl to play a pin like that. Often a pin is "challenged" and price will run against it several pips. The larger the pin, the larger the challende would be. IT DOES indicate a strong move, just not a really, really safe place to put the SL is all.

The best plact to have put a SL on that entry would have been a few pips below the 35 on M15, but that means a SL of at least the full 19 pips set by the scripts. I guess it's "OK" but taking trades with much smaller SL settings is starting to become the only way I want to trade lately.

Still, it is "by the rules" if you entered at COB as a "clear break" entry, using the H1 as confirmation of the trade, and as we can all see, it was with the "Trend of the moment" it also yielded a fair amount of pips profit, assuming you're exit was somewhere above the next RN for about +25 or so pips.

Not bad, decent trade, but you will get better as time goes on and you gain more confidence in the strategy and more understanding of the rules.

Good post.
  • #347
  • Mar 28, 2010 3:54pm Mar 28, 2010 3:54pm
Hey eclayf. =-]

Reason i haven't posted since that last time is cause i still find myself using other techniques for some entry's basically what i know of the markets and the currency's that i trade. I don't want to post any pic that isn't 100% by the rules of your stratagie. I keep rereading the manuall and just need to force myself to do the rules 100% and not only what i have learned from PA. I know the system is simple and all but still hard for the trader to fully let it go if you know what i mean =-]

But anyways thanks again and lets all have some great pips this week =-]
Time is what keeps everything from happening "right now".
  • #348
  • Mar 28, 2010 4:24pm Mar 28, 2010 4:24pm
Quoting Dv84
i still find myself using other techniques for some entry's basically what i know of the markets and the currency's that i trade.
I understand, and as long as it's working for you, nothing wrong with that. I do appreciate your not posting those types of entries here so we can keep the continuity for everyone.

Quoting Dv84
I know the system is simple and all but still hard for the trader to fully let it go if you know what i mean =-]
Hardest thing about it is it's simplicity. The simplest things always work the best, but are often the most difficult to "trust" because we're taught from birth that things have to be hard.

I still deal with that from time to time and I wrote the rules! It takes great patience and that, coupled with the simplicity make it both a really powerful strategy, as well as difficult to master at times. Not that it's really hard, but we tend to make it hard.
  • #349
  • Mar 29, 2010 12:36am Mar 29, 2010 12:36am
Quoting eclayf
First, there are image capture software programs listed on Post 1, number 7. Here is that again, with links to the image capture programs and yes, you can use MT4 to save the images, but often they end up way to big, so it's easier actually to use one of these below. I personally prefer FastStone Capture (http://www.faststone.org/FSCaptureDetail.htm) .



Next, hit the "Post Reply" button on the lower left of the thread or the "Quote" to the lower right of the post you want to respond to. Then use the image upload function of...
Morning eclayf. Thanks for this, i'll give it a try next time! I'm hoping to throw a few charts up of the trades i've taken this week which maybe you can review but also to help the education on the thread. I'm also eager to demonstrate that there are a few of us who have nailed the strat so we can begin to look at adding the advanced stage at some point in the not too distant future. Not wishing to put the cart before the horse of course but more trade oppportunity=more opportunity for financial gain!
  • #350
  • Edited 1:14am Mar 29, 2010 1:11am | Edited 1:14am
Tonight's good trade,, I did make a bad trade earlier on EJ, but got it all back and much more on this one. I missed the best entry here, but found a good one to get back in the trend on.

Here are the images with comments on each and my reasoning. I do expect price now to head for the D1 35 again. Not sure if it will get there tonight, probably not, but within the next day or so more than likely.
Attached Images
  • #351
  • Mar 29, 2010 2:37am Mar 29, 2010 2:37am
On my last posted trade, some may wonder if it really was "by the rules" and yes, it was. Remember that ALL signals come on M15. H1 was in a very strong up trend, M15 was a one bar retrace to the RN (an acceptable S/R level "by the rules") and that was why I decided to drop manually to M5 and see if the RN held. It did.

On M5, it was NOT "by the rules" of trading off the 10 EMA by itself, but on M15 it was. Also, on M5, it was the second test of the RN that held firm.

Hope that helps if anyone has any questions about it.

I did think about getting out when the last bull bar closed as a "more or less" "double top" but decided to wait it out and see.

I'm off to bed now. Later and good trading to you all.
  • #352
  • Mar 29, 2010 8:01am Mar 29, 2010 8:01am
What an ugly day for trading today was
  • #353
  • Mar 29, 2010 8:52am Mar 29, 2010 8:52am
Yep, nasty days happen. They just happen less with this strategy, as far as still finding good entries goes.

Look at D1 on both currencies and you will see that on both Price is at an area of "nastiness" as far as S/R levels go. There are ton's of "recent' daily wicks and closes in this general area, which creates, obviously, several areas of S/R for price to bounce around in.

I still expect it to move up significantly on both, but like I said last night, maybe not today.

If we see some strong news events, it might break through all this fairly nicely, otherwise we'll have a "range bound" market for a day or two.

I drew two arrows to point this out on D1 in the image below, but I let the price line define what I am talking about.
Attached Image (click to enlarge)
Click to Enlarge Name: D1SRLevel.png Size: 30 KB
  • #354
  • Mar 29, 2010 12:07pm Mar 29, 2010 12:07pm
wow, you wrote a very inspiring pdf! im very curious about your method as i have run a similar course in my trading career with a quest for an outcome that i think my be similar. that 1k to 100k in a week part gave me chills!

im not sure what this means but iv seen it come up afew times. when i try to download the zip files it comes up as an attatchment.php and my computer doesnt seem to know what to do with that. are the files messed up or am i missing something? i have a new version of winzip.

look forward to your reply and to continue the learning!
  • #355
  • Mar 29, 2010 12:14pm Mar 29, 2010 12:14pm
Quoting perfectgrim
wow, you wrote a very inspiring pdf! im very curious about your method as i have run a similar course in my trading career with a quest for an outcome that i think my be similar. that 1k to 100k in a week part gave me chills!

im not sure what this means but iv seen it come up afew times. when i try to download the zip files it comes up as an attatchment.php and my computer doesnt seem to know what to do with that. are the files messed up or am i missing something? i have a new version of winzip.

look forward to your reply and to continue the...
Hi perfectgrim,
This has happened to me in the past, if you go up to the top of the thread (beside the thread page numbers) you will see a paperclip clip on it and all the attachments of the thread appear. From there, find the attachment you are looking for and click on it you will have an option of opening or saving the attachment.

Hope this helps.
God Bless,
Mikali
  • #356
  • Mar 29, 2010 12:48pm Mar 29, 2010 12:48pm
Thanks!!! wonder why that happens? regardless your solution worked so its off to the learnin.
  • #357
  • Mar 29, 2010 2:48pm Mar 29, 2010 2:48pm
Quoting perfectgrim
....that 1k to 100k in a week part gave me chills!
What it "means" is simply this. IT HAS BEEN DONE and if someone else can do it, so can others. It DOES NOT mean, that this strategy, or I, or you will be the next to do it. It DOES NOT mean you should attempt it for now. MysticGenie had been trading a while when he did that.

I know of people, several as a matter of fact that currently take between 5 and 80 thousand a week from the markets as "income" and some of them don't have huge accounts.

I know one that was earning 4,000.00 consistently PER WEEK with an account of around 10,000.00 to 15,000.00. No matter how you run the math, that's a huge return and there are those who do that very, very consistently.

NO reason I know of that you can't do it to, with some practice, lots of patience, skill and enough chart time to be able to see the trades forming in real time.

There's an old saying, "How do you eat an elephant,,,,,, ONE BITE AT A TIME!" and it's the same with trading. How do you make a million, ONE TRADE AT A TIME!

You probably won't start earning huge sums right off the bat, but there are those who have. Tim Morge put himself through college trading Forex using Alan Andrews Pitchfork strategy. George Soros earned a BILLION in a SINGLE day and there are others who have done some pretty neat stuff.

One I know about took a (I think it was 3,000.00) account and turned it into 30,000,000.00 in about three years. AND that was in STOCKS, not hugely leveraged accounts. Mostly it was daytrading, if I remember correctly.

The landscape is littered with lots of success stories, and yes, even more failures. WHICH you become is YOUR choice, no one else's. It all depends on if you are willing to learn how to trade or if you just want to roll the dice for the thrill of it.

One way leads to large amounts of wealth, not just money, really duplicable wealth and a great future. One way leads to hopeless futility.

Find a strategy YOU can understand and stick to it PERIOD! until YOU nail it perfectly every single time. THEN with the skills mastered, do whatever you want to do and take as many risks as you want to, but until that time, as my dear friend Endroute recently said to me, "MEND YOUR KNITTING!" Keep it simple and master what YOU are doing and YOUR emotions.

Hope that helps perfectgrim,

God bless
  • #358
  • Mar 29, 2010 11:10pm Mar 29, 2010 11:10pm
All comments are on the images. Good trade,,, only a "decent' entry but it is "by the rules" as well.

Enjoy.
Attached Images
  • #359
  • Edited 10:40am Mar 30, 2010 12:02am | Edited 10:40am
My first post here at FF, just thought I share a trade for critique. The red circle shows the entry at the touch of the 10EMA and the RN. I was able to move my SL to BE+1 pretty quickly and trailed the stop about 10 pips below price and stopped out near the red line for +32. I feel like I'm starting to get the hang of it. Thanks eclayf for your generosity and hard work!

EDIT: For clarification, I set my initial SL at -11 since the entry felt pretty strong. As for the trade platform, my broker only offers MT4 through their UK office so I use Forex Trader Pro and eSignal for charts.
Attached Image
  • #360
  • Edited 12:35am Mar 30, 2010 12:33am | Edited 12:35am
Quoting NinjaMonkey
The red circle shows the entry at the touch of the 10EMA and the RN. I was able to move my SL to BE+1 pretty quickly and trailed the stop about 10 pips below price and stopped out near the red line for +32. I feel like I'm starting to get the hang of it....
Solid "by the rules" entry. Price had already given a "clear break" of the RN, and moved the required 15 or more pips in the direction of the trade, raced back in ONE bar to "touch" a confluence of RN (which had also been a prior P/A S/R level). You didn't say what your original SL was, whether or not you left it at the -19 the scripts set, or if you moved it to a lower size SL after the entry, but still a good trade.

I assume you used the standard Risk settings or 3%, but seeing it was on Gain, not sure if you used an MT4 platform or Gains' proprietary one. IF you did then you also nailed +6% on that trade. Not bad for a day's work, not bad at all.

Nice clean chart in the screen capture and post as well. THAT, for the lurkers and watchers here is probably more important, so they can "see" it happening.

Good trade, good post. Thank you NinjaMonkey.

P.S., I'm off to bed for the night. Will probably be back on at some point in the a.m. NY/London.
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