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CHOROS System

  • #441
  • Jun 1, 2010 2:20am Jun 1, 2010 2:20am
Lee, thanks for the information, I need to look for more confluence. I keep reading the thread and pdfs to make it all sink in.

btw, I took the same trade on GU that you posted but got in one bar earlier, managed to get out at B/E - look how far its dropped now!
  • #442
  • Jun 1, 2010 2:23am Jun 1, 2010 2:23am
Looking at the trade now, it wasn't a good call as as you said, there is rejection in the form of large wicks of the price above.

Also, the 15m chart is in a downtrend making lower low and lower highs.
  • #443
  • Jun 1, 2010 2:27am Jun 1, 2010 2:27am
Quoting leemonk
Hi,



Two losses across the two pairs on very similar trades.

See chart below.

I think in hindsight (wonderful thing isnt it!) I should have either been in and out before the London open or have waited for it to open and settle a little.

...... still, thats a lesson for next time!
Hi Lee

I also took a long here, just a little earlier double bottom on the retrace to 45000. Grabbed 15pips
The other buy you can see was an attempt to catch a retrace, but fell short by a couple of pips.
Attached Image
  • #444
  • Jun 1, 2010 2:34am Jun 1, 2010 2:34am
I missed the earlier one writting that long post I put up.

Shame as there was a ton of confluence there.

To quote another thread..... trade what you see, not what you expect!

Price was in MASSIVE rejection from above. Should either have done nothing or looked for a short.
  • #445
  • Jun 1, 2010 2:35am Jun 1, 2010 2:35am
A question for Simmo and Ultimatus.......

Where are your charts when you entered the trades?
  • #446
  • Jun 1, 2010 2:42am Jun 1, 2010 2:42am
Quoting leemonk
A question for Simmo and Ultimatus.......

Where are your charts when you entered the trades?
Sorry forgot to do screen shot at the time. Must try harder
  • #447
  • Jun 1, 2010 2:47am Jun 1, 2010 2:47am
Sorry missed the last screenshot but here is another (losing) trade I just took.

I thought I had this one in the bag, I entered on the round number/10EMA touch, the trade was looking good but came back and spiked above the round number to take me out, again I moved my stop too early!
Attached Image (click to enlarge)
Click to Enlarge Name: screen1.jpg Size: 298 KB
  • #448
  • Jun 1, 2010 2:49am Jun 1, 2010 2:49am
This is a classic. Strong down move then retrace to the M5 EMA10. I could have grabbed more if I could get in a little later (3-4 min) since it almost touched M15 10. Target=round number. Used rather large SL to account for the strong moves (16 pips).

Kostas
Attached Image (click to enlarge)
Click to Enlarge Name: gu2.JPG Size: 258 KB
  • #449
  • Jun 1, 2010 2:51am Jun 1, 2010 2:51am
That's how my trade should have gone ha.
  • #450
  • Jun 1, 2010 2:58am Jun 1, 2010 2:58am
Leemonk, it's hard to tell at what price you entered the trade, I'm not familiar with your broker's charts.

But it appears you "broke the rules". Doesn't matter whether or not this system is called dance, choros, or "mean reversion"... you must get into the trend as soon as you see price confirmation.

The "touch" is simply your entry, you always want the first entry in a trend before it's exhausted...
  • #451
  • Jun 1, 2010 2:59am Jun 1, 2010 2:59am
Quoting Ultimatus
That's how my trade should have gone ha.
Ultimatus,
Exactly. Are you using M5 and M1 to fine-tune your entry?

Kostas
  • #452
  • Jun 1, 2010 2:59am Jun 1, 2010 2:59am
Quoting Ultimatus
Sorry missed the last screenshot but here is another (losing) trade I just took.

I thought I had this one in the bag, I entered on the round number/10EMA touch, the trade was looking good but came back and spiked above the round number to take me out, again I moved my stop too early!
Ultimatus,

WHich 10ema are aiming for here? I do not see one. If it's the 15minute one then on my charts that was way off the RN.

Lee
  • #453
  • Jun 1, 2010 3:02am Jun 1, 2010 3:02am
Quoting kostas1
This is a classic. Strong down move then retrace to the M5 EMA10. I could have grabbed more if I could get in a little later (3-4 min) since it almost touched M15 10. Target=round number. Used rather large SL to account for the strong moves (16 pips).

Kostas
I saw this, but was not confident enough after two losses to take the 15min 10 touch, despite price getting to where it was when the candle first opened.

The rejection from below was to strong for me........ my head is playing games!!

I am also not fully confident of the 5minute still.... .this is going to take some getting used to.

Lee
  • #454
  • Jun 1, 2010 3:03am Jun 1, 2010 3:03am
Quoting leemonk
Ultimatus,

WHich 10ema are aiming for here? I do not see one. If it's the 15minute one then on my charts that was way off the RN.

Lee
I agree. Ultimatus, I think you are using 25 pips spacing for your round numbers. I would stay with 50 pips spacing (so RN is 1.4400, 1.4450 but not 1.4475)

Kostas
  • #455
  • Jun 1, 2010 3:05am Jun 1, 2010 3:05am
Quoting jm8985
Leemonk, it's hard to tell at what price you entered the trade, I'm not familiar with your broker's charts.

But it appears you "broke the rules". Doesn't matter whether or not this system is called dance, choros, or "mean reversion"... you must get into the trend as soon as you see price confirmation.

The "touch" is simply your entry, you always want the first entry in a trend before it's exhausted...

JM,

Can I please ask you to exapand on this as it's not to clear to me what you are saying.

My entry is indicated by the green horizontal lines and the word 'buy' on them. There are also some little green arrows showing my exact entry point.

They are a little hard to see, but they are there. the arrows are easiest seen on the 15min and the words are seen on the 1/5m

Cheers

Lee
  • #456
  • Jun 1, 2010 3:11am Jun 1, 2010 3:11am
Question now is whether we can see more bounces south after such strong 1hr rejection

I knew I should have stayed in bed today!
  • #457
  • Jun 1, 2010 3:12am Jun 1, 2010 3:12am
I had set the round numbers interval to 12.5 pips, but have changed to 25 now.

When taking a 'touch' trade of a moving average, do you wait to see it actually touch the line before taking the trade? The reason I am asking is sometimes it might not touch the MA in real time, but later on you can see the touch.
  • #458
  • Jun 1, 2010 3:17am Jun 1, 2010 3:17am
Quoting Ultimatus
I had set the round numbers interval to 12.5 pips, but have changed to 25 now.

When taking a 'touch' trade of a moving average, do you wait to see it actually touch the line before taking the trade? The reason I am asking is sometimes it might not touch the MA in real time, but later on you can see the touch.
I find the best practice is to know where the MA was. So, if you are looking at price and you think it's going to move and touch an MA, be aware of where that MA is at the time you start to think the move might be on.

Price will drag MA's with it, so if you see a BIG move, and it looks like there was a touch just before it, the chances are that it was a fair way off, so do NOT beat yourself over that. The best way to see this on particular moves is to go back and use the Simulator...... it's worth mentioning here that the similulator is great for going back over a day, not just 4 years ago!

Kostas looks for PA around the touches and uses the 1 and 5 minute to do this. But he will need to expand on this as it's something I am trying to switch to.

Trading PA on a touch is far safer than simply taking a touch, BUT you will miss some trades because of it. It's a balance that you need to decide on, Risk vs Reward.
  • #459
  • Jun 1, 2010 3:25am Jun 1, 2010 3:25am
Leemonk, you bought the top of wave, when trend was down. It looks like you bought near 1.4500, even after a couple of touches to the 10 EMA?

My point is, this system is a way to find the trend, and buy in with minimal risk. In and out, take profit.
GBPUSD was heading south, thus you must be very quick to get in, as you were essentially counter trend trading. But you missed the first few touch trades... bought in too late... (yes I've done that a 1000 times)

Dance is just a mean reversion strategy. What's not mentioned in the manual, is that it could (or should?) be used as a low risk trend finding strategy. If Clay had talked about MM, letting profits run etc, the dance would be a swing trading strategy...

cheers
  • #460
  • Jun 1, 2010 3:43am Jun 1, 2010 3:43am
To add a bit, for everybody here, as soon as the smaller MA reverses direction, be on your toes!! It's the first thing you should be looking for, we're trend hunting here. Then, wait for a little confirmation, is it with or against a bigger trend etc etc.
The sooner you get in, the better. This idea is the simplest summary of choros/dance or any mean reversion.
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