Ken's Continuing Successes with EO's system

Thanks for the input . Maybe a direction can be had from all the post ,, thanks.

I have only been in one group chat that worked and it was run by a moderator. He talked everyone else typed. The problem is as you can see by the above post that though we think we trade a like or the same ideas we really don't So spend time trying to figure out what everyone is talking about and doubting your ideas.

If I can get to the point that I can hold trades longer . I might consider starting a live room . But as it is now I don't post my trades as I leave more than I take on trades . This is my demon.

It would be nice to chat to others as price action unfolds .. But if you do this make sure your on the same page and your trading doesn't suffer for it.

On EO's original thread the best interactive trading was only the mention of major trading PPA - S/R levels . where they thought price would react.

If you have doubts of the power of those areas . Just go back to that thread and read some of it when everyone was in there. Then remember that EO is running a business while trading and Infinty as well. Then see the gains they were making. It was the getting into trades at the start of sessions then not being able to babysit them that was a asset to them at times.

They protected themselves covering and taking profit at the right levels . Then adding back as it was available. But I have seen more than one trader benefit from not being able to watch the charts as much.

I myself am trying to change from quantity to quality trading. Yesterday was a prime example . GBP's high was a 50% (trading Zone ) level on daily . Nice DBHLC on 15 min entry. Got in up the body of the candle, price never came back near my entry till this morning and still wouldn't have been stopped out.

The big profiteers in trading . look for those levels. A 50% fib on a daily is always a good spot to look for a decent rejection. Some say that the negative news made the move ,maybe .But when London open apparently they didn't think the news was to bad. Plus the main traders we have been watching make those awesome gains . Don't care anything about fundamentals.

the idea of a EA. I unfortunatelly have never run a MT4 platform. I do know some that have tried writing soem ea's for parts of EO's stuff. but even those that write some of them still prfer to enter the trades manually. just more of a atoumated indicator I guess.

Yeah maybe I can look at the score card idea . Maybe a quick way to value the probablitity of a trade. based on historical data.

I know this thread is suppose to be about EO's system . but the part of his or any successful system is Price Action . Even when some don't know they are trading it . their indiactors or what not. is doing it for them . I see it all the time on threads and chats . I don't trade this or that . but you look at their entries and they are but calling it something elese.

Like trading channels on 15 min and 1 hr charts can be and normally is trading patterns. So understanding that most patterns continue the trend . Will give you a edge as you know in a uptrend that longs are safer . So buy at the bottom and tight stop below.

It is those things I want everyone to understand . The MA system was just some guys that figured out MA values that correspond with a bunch of classic trading ideas. Almost all trading systems are the same. the main difference is time frames . A long term higher time frame trader and a 15 min entry guy . can't see the same thing . the higher is seeing the forest the lower the trees.

It is like someone mentioned the Keltner channel . It is a good over bought over sold, Indicator . kinda like Bolinger bands. But not. LOL

If that is what makes it clearer for someone that is great. But try and start to see what is happening with price when you get your best entries and maybe you will start to gain even more confidence and be able to see what is driving that indicator.

Enough rambling . I don't have the time I use to to post like I said I am trying to step back a bit and look at fewer trades for more gains. but will try and see about a few ideas to impart.

Trade Happy Ken

Trendlines and slower trading times. Why some like the in between sessions. It cna make more sense and be a bit calmer than when all the major players are trading. In their caffinated jerks and voliaitlity.

Nice chart as allways It makes sence as well, trendlines are just basic pa at work if im getting you correctly. I guess ideally it shouldnt even be necesarry for us to draw them as we're just connecting our highs and lows, but for now at least for me it makes it easier to spot areas of interests and is just another tool to confirm possible trades.

Hello

Something to think about .Those areas ( weekly pivots ) are my drivers and area of concern . It happens week by week. First breakout then test makes this area important. I always consider PO there. Also look for pa reversal there or pa for continuation move. Got nice long term trade potencial.

Cheers.

Ps. Sorry, I know this thread is about eo`s system, don`t want to mess up with something else.

Kodziro , Our main focus is on trading Price Action. The EO system as i mentioned earlier is all about PA . With some Moving Averages added to help to see. Any input on basic pricve action is good information everyone should post away to further our knowledge of price Action.

I just personally try to explain basic price movement and time honored basic trading strategies.

But thanks for the input and feel free everyone to post. This is a open forum.

I have added some new text and areas on the previous chart.

Do you draw your lines manually or do you have a software to draw it automatically?

I have an indicator for mt4 platform.

Thanks. Going to check it out later

Here`s what Ken was talk about it yesterday.

good trade for about 50 pips with area that i was talking about yesterday

If anyone is having problems understanding Candlesticks , either the patterns or the Phsycology behind them . Checkout Buildcity's thread . He has posted a link to a series of videos explaining the basic Patterns which we also use.

Just a good understanding of a few patterns in conjunction with S/R - PPA areas . Can make a powerfull system base for anyone.


Then throw in some Money management to protect your equity. With a bit of trade management and the possiblities can be beyond imagination.

Hope you are all having a great weekend.

Ken
For Money Management, do you draw off a % of what you made per week/month or do you have a particular formula?

Personally I do as i need it to live on. But the deciding factor on my Money management is emotions . How we feel about money , what amount can we risk without letting emotions enter our trading plan.


Some people can risk a great protion of thier equity and still take trades based solely of analysis. not looking at the $$ ticking one way or the other. It is that ability that can be the difference from one person taking a small amount of funds and making great gains seemingly overnight with it.

But without sound loss controls , Stops ,exit startegies, they can also lose it just as fast or in most cases faster. The best traders I personally have seen trade less than 1% of their accounts and even less when they start making REAL money (thousands a day). To many of us look at our profit and losses during a trade to decide our next course of action. When in fact we should be looking for our next trade.

Trading forex and the knowledge we discuss here we can easily see that one trade flows right into the next and there are trades within trades, Like counter trend trades you can take while still holding a trend position. One reason U.S. people have two accounts to take the counter trend trades.

But for the begginer if you last long enough you will find that your account will grow bigger and faster NORMALLY risking less per pip than a lot. As you will take the trades that you see and be more likely to follow the charts and not your ballance.

I think new traders should never deposit thier full trading amount in to their brokers account use 1/2 or even a 1/3 . And hold the rest in your bank . That way you can refund if you need to. Plus once you make some money withdraw what you started with. If it is a small amount even more important to do so.

The feeling associated with knowing that your entire account is money you made trading is very positive indeed and also the fact that you have funds to backup and regroup if needed. The key is to always remember this is going to become your bussiness and the first thing you would want to do in any type of bussiness is get your investment out.

Then make sure you take a bit out from time to time to pay yourself. What are gains without some type of reward. You may be like lots of us your trading is up and down at times in the beggining. So when it is up take some out, buy yourself a nice meal or a few drinks. Whatever the amount allows.

But you have to get to that place where in your mind you see this as income potential not just a game your playing.

I don't advise people to keep massive amounts with a broker . With leverage there really isn't a need for it. divided it up beteween them and a bank account . adding funds is easy and quick now days. But once you have got your trading system down you find adding is not needed.

I would suggest a 1% or less risk until you have seen positive results over a good period of 2 or 3 months then maybe go to 2 or 3% max. Instead of increasing your trade amount straight away with your gains take the cash back till your free and clear. then start your compounding. I know if your starting with a small amount you want to get up there quick . but in the long run i believe you will be better served to be a bit frugal in the beggining.

There are some good points in the pdf. on this.. Trade Happy ken

So is Forex your primary income Ken?

I have to trade many small trades, I simply can't sleep with larger trades open, even if I know where the SL is and my risk is calculated.
The phsycology is trading is a strange one thats for sure.

One thing I found helps, it was a bit of advice passed to me, is on MT4 to view trades as pips and not pounds, that helps you focus on the trade itself.
Select "profit-as points" from the trade window for thise if you who didn't do that already.

I agree with you about brokers, 2 reasons not to leave large amounts with them, 1 reason is I don't trust them, the other is I don't trust myself.
If a broker goes bust, even if you are covered by the banking regs in the uk, which covers 50k i think, its still the hassle of getting your money back.
Also if you have too much in 1 account you may be tempted to overtrade, and like you say leverage means you don't need so much in.

I do see forex as income potential, but I feel I'm not ready to commit a large amount of cash yet, I thought I was ready once and opened a small account to test the water. God knows I've wanted and tried to grasp the EO method and I find I see less than half of the big picture, I've developed my own way of doing things which I'm comfortable with.

Well said.

Don't focus on how much you earned in each trade, what we needed to focus is how to do the best trade management ~ when to entry & exit.

Cheers
City

Not to answer on Kens behalf, but he has said in an earlier post that he makes a living trading forex. That is also why I belive it shouldnt be necessary for us to study another system, simply because if we just do what he does, copy what he does we will, eventually, get the same results.

I must have missed that, I have to confess I've not read every single post.

If Ken's method works for you, then that is great, I'm saying I struggle with it and don't see the full picture when I look at charts.

yes , I have been trading full time for about 2 years. but have struggled to grow my equity where it needs to be. Taking funds weekly to live off. Recentlly i have had some major cost arise that really killed my account. So i have taken a job to cover my living costs while build my equity backup.

Plus I hope this allows me to take a step back and manage my trades more effectively. (Let them run) My entries are spot on as is my analysis. I just have gooten into the habbit of grabbing quick gains.

Knowing what to do and doing it is a diffferent story. Like today had a great entry on the e/j around 113.20 10:00 eastern . Closed at the next PPA area 112.80 you can see where it is now LOL. I have taken 3 more trades on it but they don't add up to 120 pips.

I wlll address Ben's statement about not seeing the whole picture later. AS I hear a lot of that and the truth is you don't have to see it all. It is best but we can survive on a tighter view. Like scalpers and psotion traders. But there are key basic ideas that make either trader successfull.

Like today the gbp hit a 50% fib level ( Trading Zone) on the dailly. And we can see the 3 steps (retraces) each accuring right at a very recent PPA area on your same 15 min chart .

No big picture required. But just glancing at the daily and you can see the major downtrend and the s/r area at the 50% level, Any questions speak up ..

I didn't mention the two shooting stars at the very top figured everyone could see that entry.

We have to learn to see PA ( price action as well as PPA (Previous Price ACtion) You cna still have a edge just trading of Price Action . Which is what price is doinng right now not in the past. That can provide a edge to trading as well as anything. It is the ability ot get a good entry get positive then manage the trade correctlly that is key.

I know scalpers that use the 1 min and 5 min charts but when their trades break the closest swing they move stops to that area and let them run . taking at times hundreds of pips.

Money and Trade Management is the key to big gains. Then a above average of good entries don't hurt either.

So anyway price action. As you can see just using nformation on your 15 min chart and using a basic candle stick pattern . you can have a edge. Key is if you take trades just off PA DO NOT MOVE YOUR STOP. Thta is your line . If it is breaks to bad. You can always reenter when price crosses past your original entry price.

But if you will only draw a few lines everyday even off ust the 1 hr chart the edge gets even better.