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Sonic R. System

  • #12,561
  • May 19, 2010 10:57pm May 19, 2010 10:57pm
Quoting david4u
TAH
You may want to take a look at my post regarding Fibonacci terminology ... (#9661)
http://www.forexfactory.com/showpost...postcount=9661
I mean extension which is used on MT4 with "Fibonacci Retracement" tool ...so I will use here on the thread the term FR not to create any kind of confusion.
You are very right regarding zooming out to look at a bigger swing . A combination of both options it's even better .
Can I get your comment regarding "waiting for the ascending channel to break down" ?
What's your choise...
"Can I get your comment regarding waiting for the ascending channel to break down?" -

David, my comments are:

1. You may have drawn the lower TL in the wrong place.
2. In any case, waiting cost you over 30 pips. And waiting for such a TL break is not in the SonicR method criteria. If there is very close major S&R, yes, you might wait for that.
Attached Image(s) (click to enlarge)
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  • #12,562
  • May 19, 2010 11:04pm May 19, 2010 11:04pm
Quoting traderathome
"I adjust lot size according to my capital. As my capital grows, my lot size grows." -

Ok, let's work with that. What ratio trade size to capital do you use? For example, someone might use "1/3", meaning if they have $1,000 capital they will only trade about 3 mini-lots, or about 1/3 of a lot per $1,000. And if they have $3,000 then they might trade up to 1 whole lot. So, what ratio are you using?

"However, my capital is always strongly reduced by big and continuous SL." -

Please expand on what you mean here. Are you saying both that...

It seems my trade size is too big.
For example, if I have $200, I may trade 1 mini-lot, that is 1 dollar per pip.

When my capital goes to $400, I double my trade size to 2 mini-lot.
A stop loss of 60 pips kicks me back to $280.

I know the basic money management rules, but alway can't stick to it.

maybe it's a psychological problem, I want to get my money back quickly when I begin to set a trade.


Could you share your ratio of trade size of capital?


I'm playing with forex for only one month, maybe my problem is a common one among newbies.

Thanks!
  • #12,563
  • May 19, 2010 11:27pm May 19, 2010 11:27pm
Quoting SharnHoiste
It seems my trade size is too big.
For example, if I have $200, I may trade 1 mini-lot, that is 1 dollar per pip.

When my capital goes to $400, I double my trade size to 2 mini-lot.
A stop loss of 60 pips kicks me back to $280.

I know the basic money management rules, but alway can't stick to it.

maybe it's a psychological problem, I want to get my money back quickly when I begin to set a trade.


Could you share your ratio of trade size of capital?


I'm playing with forex for only one month, maybe my problem is a common one among newbies....
At this point, other experienced traders may jump in here to help. And they are welcome to do so. For now, may I suggest that you start with a 1/3 rule, or even better 1/4. With 1/4 you need $400 to trade 1 mini lot. And don't go above 1 mini lot trading until you double your account first. You can trade micro mini lots ($0.10 per micro mini lot). So, if you had a $200 account you could trade using the 1/4, one-half mini lot, which is 5 micro mini lots. And don't increase your trade size until first doubling your account to $400.

The other issue is the SL. If your SLs are large then maybe the trades are not really good setups. If your trades are too frequently being stopped out, then that too may indicate you are trading far less than cream of the crop setups. Eagerness may be the problem. Being too eager causes one to accept a trade on crap setups.....sorry for the bluntness. Profitability is inversely proportional to eagerness....the more eagerness there is, the less profitability there is.

I hope this helps.
  • #12,564
  • May 19, 2010 11:36pm May 19, 2010 11:36pm
Thanks! Please post your setup pic before you get in.

I will learn from you guys from now on.
  • #12,565
  • May 19, 2010 11:59pm May 19, 2010 11:59pm
EU Possible Long Trade Setup:

Yesterday the price launch from the lows was with great fanfare and activity, so in all likelyhood the Speculators are looking for greater profits than from just one day of flight.

The attached chart shows what possibly might happen today. We need a WAVE, which could be created if the pre-London Speculators manage a pullback down, timed with the London open to be at, or near, the pullback lows. This would give us the middle leg of the WAVE. The London Speculators might or might not continue the pullback down before firing up the second stage thrusters.

WARNING: Speculation. And all is preliminary.
Attached Image (click to enlarge)
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  • #12,566
  • May 20, 2010 2:49am May 20, 2010 2:49am
Quoting Domas4
TAH, I posted my setups because of Danpa and what I saw in his chart:
http://www.forexfactory.com/showpost...ostcount=12500

Danpa was adding to his loosing position, while market was telling otherwise.
Market was showing LowerHighs and LowerLows, Price below the dragon and
so on. Please note that the S&R re-entry was not really S&R either.

So my best guess is that Danpa was long bias'ed, because he already had
long position.

Remember: "Losers Average Losers" - Paul T. Jones
(Do not add to loosing positions)
Dont know why i was long biased, but maybe if you will add your entry's on thread before that is happened i will learn from you!

And what i was doing is scaling! from what i know...
  • #12,567
  • May 20, 2010 4:14am May 20, 2010 4:14am
Quoting DanPa
...entry's on thread before that is happened...
I did post them:
http://www.forexfactory.com/showpost...ostcount=12503
cut losses short, let profits run.
  • #12,568
  • May 20, 2010 4:36am May 20, 2010 4:36am
Quoting Domas4
I did post them:
http://www.forexfactory.com/showpost...ostcount=12503
oh yeah, right...is that snp 500?
  • #12,569
  • May 20, 2010 4:53am May 20, 2010 4:53am
No man It's G/U and E/U
cut losses short, let profits run.
  • #12,570
  • May 20, 2010 5:43am May 20, 2010 5:43am
Quoting SharnHoiste
It seems my trade size is too big.
For example, if I have $200, I may trade 1 mini-lot, that is 1 dollar per pip.

When my capital goes to $400, I double my trade size to 2 mini-lot.
A stop loss of 60 pips kicks me back to $280.

I know the basic money management rules, but alway can't stick to it.

maybe it's a psychological problem, I want to get my money back quickly when I begin to set a trade.


Could you share your ratio of trade size of capital?


I'm playing with forex for only one month, maybe my problem is a common one among newbies....
Hi Sharn,

Welcome aboard

The usual money management told you to risk less than 3% (even 1% if you're new to this business) of your account. That means if you have a 400$ account, you shouldn't risk more than 12$ on a single trade.

I have a guess about why you can't stick to your MM rules. Because you came here to earn money. any with money management, the phrase that had been told to our brain is going away and we don't like it. That phrase is "getting rich quick with this business".

Try this one ...

You have 2 tasks :

1) try to stay in this business (because you need the experience)

2) try to be a better trader.

As you see, none of them are "making money". Money comes as a result. Do go for it. Go for trading write. Any even unmatured people could make money from forex, the thing is very few percentage of traders could do this consistantly.

So forget about "profits" and try to learn this thing right. Otherwise you'll loose more money than you can imagine ...

Hope it helps

Regards,
Basber
Trading methods are designed to put the odds in our favor, not predicting.
  • #12,571
  • May 20, 2010 5:46am May 20, 2010 5:46am
Thanks! I will grow up with you guys together!
  • #12,572
  • May 20, 2010 6:50am May 20, 2010 6:50am
Quoting SharnHoiste
It seems my trade size is too big.
For example, if I have $200, I may trade 1 mini-lot, that is 1 dollar per pip.

When my capital goes to $400, I double my trade size to 2 mini-lot.
A stop loss of 60 pips kicks me back to $280.

I know the basic money management rules, but alway can't stick to it.

maybe it's a psychological problem, I want to get my money back quickly when I begin to set a trade.

Could you share your ratio of trade size of capital?

I'm playing with forex for only one month, maybe my problem is a common one among newbies.
Thanks!...
I want to give you more practical answer.

To get things straight at first, I am going to say that SonicR is a perfectly good system as it is.
----------------------------------------------------------------------
----------------------------------------------------------------------
Now,
In my country, when people trade SonicR, they often mention that SL usually
is too big to have a good Risk Reward ratio (RR). Which means, the SL is bigger
for a probable TP. I hear you on this subject, but if you want to trade pure SonicR,
there is no other way than just to increase your capital in the account and trade
according to 1-3% risk rule.
----------------------------------------------------------------------
However,
I often use one trick to overcome this. Not that I have small account, but
I use it as a re-entry if I miss a move.

After Classic SonicR setup has been triggered, Price usually retraces back to
re-test the selling pressure. So what I do is I draw Fibs on the last swing
with 50%, 38%, 62% and 88% retracements. I enter the trade as soon
as the price retraces back to 50% or 62% and selling (or buying) begins.
I put my SL at 88% retracement, which is usually much smaller than SonicR
initial setup.

Oftentimes, the price will strike through without retracing; in that case
I do nothing.

This has helped for people who have small accounts and/or want to have smaller
risk exposure.

I attach two charts of today's G/U trade. First picture is Classic SonicR,
the other picture is an example of retracement entry.
Attached Image(s) (click to enlarge)
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cut losses short, let profits run.
  • #12,573
  • May 20, 2010 9:18am May 20, 2010 9:18am
Thanks for your method. I will try in the next trades.



  • #12,574
  • May 20, 2010 10:27am May 20, 2010 10:27am
Domas,thanks for sharing setup information about gbp/usd re-entry,small stoploss is great
  • #12,575
  • May 20, 2010 10:55am May 20, 2010 10:55am
Sorry Domas, was a joke earlier, hope you didn't mind...

I attached a small part of my job! SONICR RULZ!!!
Attached Image (click to enlarge)
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  • #12,576
  • Edited 12:05pm May 20, 2010 11:02am | Edited 12:05pm
EU Long Trade:

I have been waiting thru the session for a SonicR long setup that activated in a way I liked. The first spurt up by Frankfurt traders was too early, though it could have yielded a good 50 pips had I taken it. But PA only made it back to the previous highss, and since then it has seemed more to be just ranging.

In the couple of hours or so, activity has picked up at the lows again. Price moved up out of Dragon, receded briefly and up out again for a bit more. But currently the price is "hanging" in the EP zone with activity still holding good.

So, I have made entry. It is just after end of approved hours, but sometimes the later part of the US session holds surprises. I have a tight SL, which I will manage manually while at computer, because if this is to take off there could first be another spike down.

Edit: This wave-in-process might be the one (second chart)
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  • #12,577
  • May 20, 2010 12:29pm May 20, 2010 12:29pm
EU Long Trade:

TP reached. Trade closed for 121 pips profit.
Attached Image (click to enlarge)
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  • #12,578
  • May 20, 2010 12:30pm May 20, 2010 12:30pm
Quoting traderathome
EU Long Trade:
[...]
TAH, great. I guess E/U your TP is hit. I took G/U.
Only SonicR allows us to have such great runs

P.S. check ya e-mail
cut losses short, let profits run.
  • #12,579
  • May 20, 2010 12:48pm May 20, 2010 12:48pm
Quoting Domas4
TAH, great. I guess E/U your TP is hit. I took G/U.
Only SonicR allows us to have such great runs

P.S. check ya e-mail
Domas4, your creativity may have produced a wonderful modification to SonicR. By applying FR to the run out of the Dragon that creates EP, and waiting for a measured retrace to the 50-62 level area for entry, four good things can happen:

1. Opportunity for more profitatble entry
2. SL will be smaller
3. Forces traders to take a better look at that middle leg of the WAVE, and if there is a proper sequence of H/Ls.
4. Provides target(s)

We need more illustrations using this method, Domas4!
Attached Image(s) (click to enlarge)
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  • #12,580
  • May 20, 2010 12:59pm May 20, 2010 12:59pm
TAH, you posted a picture just as I was explaining it to my fellow Lithuanian
trader. Sorry the picture is in Lithuanian, but you will get the Idea.

G/U: I had 2 limit orders 1 at 50% and another one at 62%. SL @ 88.6
retracement and TPs set according to extension. All I looked for is
price closing above the dragon and HH. The less Price retraces, the bigger
the move will be. So as in this case, I am expecting it to reach 162% fib
extension.

Using this, I made two G/U trades today, both were +130 pip runs.
Attached Image (click to enlarge)
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cut losses short, let profits run.
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