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Nanningbob 4H trading system

  • #1,861
  • Jun 15, 2010 6:00pm Jun 15, 2010 6:00pm
Quoting nanningbob
Sorry to disappoint you guy but the big traders use S/R lines, that is why every broker lists S/R lines every day not Fib lines. Fibonacci was an Italian mathematician who designed a math formula. The math formula has nothing to do with trading, stocks, Forex or anything else, it is a math formula. If you draw any 4 random lines on the screen an x amount of the lines are going to lines up with an x amount of candles. It is just the odds of it happening....
i agree Bob, I've never really bothered to study them as they seem like a bit of a gimmic and a waste of my time.

In other news, the AUD/USD is right on a historically significant SR line, so keep an eye on it.
  • #1,862
  • Jun 15, 2010 7:54pm Jun 15, 2010 7:54pm
Quoting scottik187
i agree Bob, I've never really bothered to study them as they seem like a bit of a gimmic and a waste of my time.

In other news, the AUD/USD is right on a historically significant SR line, so keep an eye on it.
I COMPLETELY DISAGREE with anyone who doesn't believe in FIB's... I make trades off of them (FUTURES WITH A LOT MORE CASH AT STAKE ON EACH TRADE) daily and they are very accurate. I think most people don't believe in them because they haven't been properly taught. Those who have always love them.

It really doesn't matter, you can use them or not. Big guys, little guys, a butt-load of people use them and create a market dynamic because of them. I believe the reason that some s/r lines exist is because it is 50% of the move, or 61% or whatever...

With this system, it is really based more off of ATR which is good as well. The currency tends to move so much over a timeframe...

---I like the 10 pippers! They are great for MPTM, but can experiment as well. On my 3K account (risking 2k) I made about 100.00 the other day on those guys as well..

ASTRAL mentioned having the difficulty w/ MPTM closing out L2 & L1 trades etc.. What I have done is manage the MPTM by currency and have an instance of each, then I turn off the EA for that pair when it hits 2 levels.

I am actually reading MPTM manual through again as I have had a lot of errors...

Oh, and something I am doing that I think is even more interesting is that I have converted the EA to be a 2-in-1 system. Basically, I have an EA running normally in the right direction, but I have now converted it to run in reverse as well at the same time. So, I have one that bets up and one that bets down. I am betting they are both right! This is more for fun, but interesting to see how it plays out.

This system seems to be more about MM (Money Management) than perfect entries....
We are our own best indicator.
  • #1,863
  • Jun 15, 2010 8:01pm Jun 15, 2010 8:01pm
Quoting nanningbob
I only use the BE. With the jump start and BE functions and EA entrances I thought it was causing too much traffic and was getting the trade context is busy too much. Too many signals being sent to the broker. I have been using @ 20 BE +10 but I am going to test @40 +25. And see if I get better results. I like the idea of limiting my DD but I losing too many pips on the +10 BE. I also am testing a 200 TP instead of +50. I hope these changes will give me more take home pips without affecting the number of trades that go into DD.
Bob,

Have you played with the 'UseTighteningStop' in the MPTM EA?

I figure that might get you closer to where you want to be?
We are our own best indicator.
  • #1,864
  • Jun 15, 2010 8:05pm Jun 15, 2010 8:05pm
The plan for dealing with losing trades is normally a stop loss. And for what seems like a typical profit target of 25 pips (from Bob's results listings), the stop loss should not be more than 10 or 15 pips. That is kind of tight for a 4 hour chart, but the profit target is also kind of small for a 4 hour chart too, more like a profit target of a 15 minute chart, maybe even for a 5 minute chart if you limit the trades to only the best setups.

Why are stop losses not used in this plan? Seems like a personal hang-up about having a losing trade. This is typical for professionals like doctors, dentists and engineers, since in their professions making a mistake has dire consequences. They carry this into their trading and think a losing trade is a mistake that they cannot make. They end up blowing up their accounts and are the worst traders, as a rule. However, the truth is you only need to be right 50% or less to make money in forex.

In Bob's document he shows a trade that went wrong in L1 by 200 pips, then wrong again in L2 by 200 pips, but then with a reverse martingale strategy makes it back to even in L3 with 133 pips (a stated one third retracement of the 400 pips, or maybe the 38.2 fib level, haha).

What would have happened in this scenario with stop losses? Hard to say what the profit targets would have been. The typical profit target of 25 pips he shows in the results seems low, especially since he is expecting to get 133 pips in the last trade to make the recovery work. Anyway, say he was using 60 pips stop loss each time (10 is usually too low for a 4 hour chart, though it may work once in a while). So in the end it would be -60, -60 and +133. Even without using the reverse martingale strategy (a betting or gambling strategy) he would have been farther ahead using stop losses.

You may notice that even with only a winning percentage of 33%, there would still be a profit after 3 trades. It doesn't make sense to be chasing after 25 pips profit targets with 60 pip stop losses though. The alternative of possibly being hundreds of pips in the hole only works with pocket change pips, unless you have very deep pockets.
  • #1,865
  • Jun 15, 2010 8:56pm Jun 15, 2010 8:56pm
Quoting BlackStack
The plan for dealing with losing trades is normally a stop loss. And for what seems like a typical profit target of 25 pips (from Bob's results listings), the stop loss should not be more than 10 or 15 pips. That is kind of tight for a 4 hour chart, but the profit target is also kind of small for a 4 hour chart too, more like a profit target of a 15 minute chart, maybe even for a 5 minute chart if you limit the trades to only the best setups.

Why are stop losses not used in this plan? Seems like a personal hang-up about having a losing trade....
Black,

This is the way I trade this system and the way I look at it.

This is not 'typical' type system and you have to change the mindset to understand it. It is more about money management than about good entries. With my futures trading, I have a 5 tick stop (50.00) and my TP's are usually 20, 30, 40, or even 200 ticks away dependent upon how lucky I am! This is where a tight stop is used and with a distant TP makes lots of sense when you make lots of losses, but 1 winner pays for them in spades. BUT, I am absolutely glued to my charts by the tick for 1 hour per day (NY OPEN) and it takes immense concentration and one can only do that for so long in one day before going f-in crazy.

With this system (NB), you basically have a bunch of little tiny winners (20 pips, etc..) and some losers or DD (-500 pips etc..) which you then use Martingale to get you out of it. This doesn't take you being glued to the screen or trying to have to figure out EXACTLY where the pivot is, or most likely where you are probably wrong.

Very few moves are greater than 2000 pips, so, if you are entering LONG on the bottom of your screen, and it drops, you have a long ways to play with it to get back to 0. If you trade smaller time frames, then not possible and a big move will wipe you out.

I love this concept as the brokers can't stop you from picking up hundreds of 10 to 20 to 30 pip wins while YES, you have drawdown and your L2, L3, etc. will get you out of that.

An example would be:
USDCAD
L1 trades = 13 different trades at +20 pips, before it hits DD and you need an L2 trade at 220 pips down the road. If that L2 comes up and gets you back to 0+, then I rinse and repeat.

You trade very small contract amounts so 500 pips is really like 15 pips on a 15 minute chart etc..

I love it because no screwing around w/ the HOUSE (broker).
We are our own best indicator.
  • #1,866
  • Jun 15, 2010 10:39pm Jun 15, 2010 10:39pm
Quoting bluemele
I COMPLETELY DISAGREE with anyone who doesn't believe in FIB's......
I have had several EAs that trade both directions at the same time. Works great until a long drawn out trend and then they get into trouble. But it was a nice system while they lasted.
  • #1,867
  • Jun 15, 2010 10:49pm Jun 15, 2010 10:49pm
"I love it because no screwing around w/ the HOUSE (broker)."

I dont emhasize this much but it is one of the big reasons of my system. It takes the MT4 in house programming out of the game and the broker cant stop you from making money. His only winning card is a margin call and if you finance yourself and keep your lot sizes undersized he cant get you there either. Great understanding and explanation of the system. I can go out to dinner, take my wife out, see some friends, go shopping, etc. and just leave the EA do its job. You guys must remember I live and work in China so I sleep through most of the USA session every day. I get up and see if I am up or down and then set my trades for the day and go to work. I love it, no blood pressure jumps, no heart attacks, no What the h............ did Bernanke say this time? no cussing or praying about the trade, just set and let it do the work. If price goes against you, get another EA (L2) and try to wipe out the deficit. Love it.
  • #1,868
  • Edited 11:15pm Jun 15, 2010 10:56pm | Edited 11:15pm
I have had several questions about the MPTM and its different functions. I only use the BE function, and nothing else. I like to manually run my trades after entrance. I only use the MPTM to lower my DD but I also get hit for smaller TP. I have tried using MPTM with another brokers demo and if I used the hide TP function but it would not work but if I left it at false it did. Dont know why but I am seeing more and more interference with this EA. I had a GBP/JPY trade take 30 minutes of trying to move the SL up and it finally did but that is too long. Wonder if anyone else is having this problem and do they have any solutions????
  • #1,869
  • Jun 16, 2010 4:45am Jun 16, 2010 4:45am
Quoting BlackStack
The plan for dealing with losing trades is normally a stop loss. And for what seems like a typical profit target of 25 pips (from Bob's results listings), the stop loss should not be more than 10 or 15 pips. That is kind of tight for a 4 hour chart, but the profit target is also kind of small for a 4 hour chart too, more like a profit target of a 15 minute chart, maybe even for a ...but then with a reverse martingale strategy makes it back to even in L3 with 133 pips (a stated one third retracement of the 400 pips, or maybe the 38.2 fib level, haha)....
I am afraid you have misunderstood the system. PT is not 25 pips, mptm is used to ensure winning trade does not become a loser and to harvest pips in fluctuations. I had not read the manual in its entirety and had missed the point regarding L2 and L3 EAs in -ve trades. However, what Bob advocates in his 2-4-2 recovery is not martingale and he emphasizes that fact. You do not need to use the recovery if you wish, it is optional. Mind you this is one of very few systems which offers a strategy to deal with losses. This system is very flexible and does encourage traders own development and evolution.

Another way of dealing with losses is the use of hedge, however, since the silly NFA rules BOB has not talked about this much. What should be remembered is the universal truth that within a large price movement of 800 to 1000 pips there are always retraces of at last 200 pips. But again it is up to the traders feeling. You can close and accept the loss, hedge or use 2-4-2 recovery it is up to you.

Kind regards
  • #1,870
  • Jun 16, 2010 6:11am Jun 16, 2010 6:11am
hey bob, thanks this amazing strategy. been testing it for few days now and it works great! However, I've only been testing out the very basic of it. (the RBW line crossing the 85/25) I notice that your strategy does not states where to put the stop loss(for the very 1st level).

Can to enlighten me?
  • #1,871
  • Jun 16, 2010 8:32am Jun 16, 2010 8:32am
Quoting orionhan
hey bob, thanks this amazing strategy. been testing it for few days now and it works great! However, I've only been testing out the very basic of it. (the RBW line crossing the 85/25) I notice that your strategy does not states where to put the stop loss(for the very 1st level).

Can to enlighten me?
I set my SL at 1000. I really dont use them but accoding to my 2.4.2 rules you would close your 1st level trade before you open the 4th level. So that would put a manual stop somewhere 4-600 for level 1. Then lleves 2-4 are then retraced back to 0 or mininum loss. I usually do only 1-3 L1 losses a month. The rest of my trades are BE or profits.
  • #1,872
  • Jun 16, 2010 5:03pm Jun 16, 2010 5:03pm
decent trade yesterday on the gbp/usd - 68 pips.

Also broke even on a couple of others.

Its been a decent month for me so far, I've been very conservative because of the gittery markets...so just placing high % trades thus far.
  • #1,873
  • Jun 16, 2010 5:05pm Jun 16, 2010 5:05pm
HMMMMMMM rethinking this MPTM thing. It seems with FXSol or current price action as soon as the MPTM moves price up to +25 it goes and hits the TP. Wonder what would happen if I just took the +40 every time?? Either way I still make profit. I am just reluctant to miss out on those occasional runs I get. Plus my DD has been so much smaller lately. Benefits and non benefits of using it. HMMMMMMMMMMMM thinking, thinking, thinking????
RESULTS
aud/chf +25
aud/jpy +25
aud/usd +25
cad/jpy +25
eur/usd +25
gbp/jpy +25
gbp/usd +25
nzd/chf +25
nzd/usd 2ndL +25
usd/cad +25
Sells
aud/usd waiting to reenter
aud/chf waiting to reenter
eur/usd waiting to reenter
Buys

STILL IN OR REENTERD
aud/cad +5
aud/jpy +9
cad/jpy -4
chf/jpy -23
eur/jpy -187 2L -52
gbp/usd +54
nzd/cad -37
nzd/jpy -67
nzd/usd -190 2L -8
usd/chf -13

TOTALS
total for day +225
for the week +664
for the month +1309
Carry over -513

PR=primary, 2nd=secondary[/quote][/quote]
  • #1,874
  • Jun 16, 2010 10:32pm Jun 16, 2010 10:32pm
That's where I was seeing the Profit Target as 25 (see NB's results for those who do not read). Do you know how much of a draw down you get before you get the 25 profit?

I'm more interested in seeing how the draw downs turn into breakevens.
  • #1,875
  • Jun 17, 2010 12:48am Jun 17, 2010 12:48am
Quoting BlackStack
That's where I was seeing the Profit Target as 25 (see NB's results for those who do not read). Do you know how much of a draw down you get before you get the 25 profit?

I'm more interested in seeing how the draw downs turn into breakevens.

Profits of 25pips is calculated using 4 decimal system correct? so in 5 digits it would be equivalent to 250pips?
  • #1,876
  • Jun 17, 2010 1:39am Jun 17, 2010 1:39am
Quoting orionhan
Profits of 25pips is calculated using 4 decimal system correct? so in 5 digits it would be equivalent to 250pips?
no it is still 25 pips, adding decimal places does not increase the size of a pip. It would be 25.0 pips. They are the same just another digit.
  • #1,877
  • Jun 17, 2010 4:02pm Jun 17, 2010 4:02pm
Sheesh. Some Swiss banker goes Blah blah blah and the whole market suddenly reverses. I hate these guys. Well now we have to wait for the market to correct from his noise. I decided just to take the loss on the usd/chf instead of recovery. Dont know if that was a good decision or not but had enough going on at the time. I took the +25 MTPM off and got bounced on several trades that would have taken the +25 but now I am in DD. So the MPTM is back on. Now I know why I use it. Have a good day. Oh Frost Call is back havent heard from him in a while.
RESULTS
aud/jpy +25
cad/jpy +25
gbp/usd +60
usd/chf -200

Sells
gbp/usd
Buys
cad/chf
gbp/chf
gbp/nzd
usd/jpy
usd/chf
STILL IN OR REENTERD
aud/cad -67
aud/jpy - 6
aud/usd -87
chf/jpy -114
eur/jpy -200 2L -64
eur/usd -135
nzd/cad -125
nzd/jpy -25
nzd/usd -260 2L -78

TOTALS
total for day -90
for the week + 664
for the month +1309
Carry over -1161

PR=primary, 2nd=secondary[/quote][/quote][/quote]
  • #1,878
  • Jun 17, 2010 7:41pm Jun 17, 2010 7:41pm
Quoting nanningbob
Here is a 6x6 warning system for your charts. It will warn you at the cross that a potential trade is coming. It will make a sound, post a message and place an arrow on the screen. It will work on any time frame.
Hi Nanning,
How do u use this indicator? In which folder do you put it?
LEARNING HOW TO FISH SO I CAN FISH FOREVER
  • #1,879
  • Jun 18, 2010 3:53am Jun 18, 2010 3:53am
Quoting Mixer
Hi Nanning,
How do u use this indicator? In which folder do you put it?
I dont use the indicator because when I get the cross the EA enters. It is only for those who want to manually trade the system and it gives a warning and they can decide whether to enter or not. I use an EA and it enters when there is a cross. So it is up to you to use it or not.
  • #1,880
  • Jun 18, 2010 4:05am Jun 18, 2010 4:05am
bob...why do I get erroneous 6x6 cross alerts,ie, this am 06:42:55 alerted cross sell on cad/chf, the ma lines are not even close, also RWB are all below 15, have 2 aqua buy signals???
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