EUR/USD Scalp 1 min

EMA55 at M5 is reached at 1.2575 just now. Wait for a little downward movement.

see #620

Exit at 1.2570

Profit: + 40 pips

Price is struggling around pivotal mS2 1.2567 & M5 EMA9 and EMA20 a little above the middle line of Bollinger Band. Stay at the sideline and wait till the direction will get clearer. May be a consolidation is coming up now, before stronger movements will coming up afterwards.

Enter short with 10 positions at 1.2574

see #624

Exit at 1.2571

Profit: +30 pips

be crefull babe

Oh yes, of course, ...thank's.

Godday folks


I have read this thread and found large interest in it. From my experience a system that tries to say where the price will go outwards from a indicator, moving average or anything similiar has a lower probability of being correct then a system such as Hosse´s: a system operating on the assumption that price will come back to a moving average, indicator or the like.

I would like to say a word of warning about money management. I burned 75% of my live account (that is my living) with improper money management, i was using unrealistic mental stoplosses. I have learned now (which i really should have known) that the market CAN and WILL move 350 pips the way you didnt want it to move. Personally i would advice against the kind of MM that Hoss has mentioned, if you dont have a lot of money. Remember that although price are in upper part of bollingerbands, it might move 300 pips or more either way without much retrace.

I am operating on Metatrader 4 with Alpari as broker. Sometimes they requote me but i think it is manageable, at least up until now. If i am lucky i get larger profits because of the requote. Usually i get 1.6 or 1.8 spread on EUR/USD but today its 2.6, not sure about last week because i was trading my demoaccount using Hosse´s strategy (with light modification). A word of advice: Alparis demo spread is FAR lower then the ones on the real accounts. Demospread was around 0.5-1.0 pips on EUR/USD instead of 2.6 on the live account. This could, and often will mean the difference between being able to make a living and not.

I am operating this strategy (with light modification) now on my live account. Not much action right now so i thought id give you folks all the wisdom i can.

So to my main point, money management. Because of spying brokers and banks i will not write any fixed numbers here. But my idea for calculating SL is this: When is it very unlikely for price to come back to the position taken when using this strategy, whithin reasonable time? Thats where i put my SL. For calculating TP my idea is: Even if i am wrong, given that i have placed my order where price seemed exhausted, but wherent, i should be able to get out with profit. Thats where i put my TP. I try to use a preset TP that is about twice as high as my usual TP, and use my usual TP if the trade seem less then reliable.

So really, my take on averaging out and trying to double up from a loss is a good strategy if you have deep pockets filled with cash (preferably unlimited), otherwise id advice against it, i am not sure exactly how Hoss manage it, please elaborate on this Hoss, as it is the only thing that is slightly unclear to me concering this strategy.

Oh by the way, SkyzerFX mentioned a (if not his) longterm strategy in post 227 and the following, which i find interesting. So if you missed that one have a little look, cant hurt nobody to learn some more.

Set Enter Short 10 positions at 1.2585


Target: 1.248

see #629

Delete the target and Exit at 1.2530

Profit: + 550 pips

thanks for the post. yes, this is why i wait for extreme moves before i get in. these extreme moves of 300 plus pips don't happen in straight lines. there are always buyers/sellers/orders. i take advantage of this fact. it is very difficult to articulate every little thing that i do, however, all of the rules have been posted. but, nothing replaces screen time and practice when trading this way. all i am ever looking for is 5-10 pips, so even in a long directional move there are plenty of spots to pick up these small retracements. yes, money management is very important when averaging in. i've needed less of it to be honest as i get better at picking spots to get in. MM is a personal choice, however. always stay on the side of conservative if you are new at this.

you are trading this entirely different than me, but looks like you are doing well! continued success!

Enter short with 5 positions at 1.2669

We can all learn from each other giving constructive inputs. Look with interests all your comments.

Hi Hoss and everyone else.

Ive been reading this thread with interest and started trading this method, although I do still get a little stuck with the interpretation, ive attached a screen shot of the EUR/USD 1 min and was hoping that you could point out the waves you were talking about if they are present, just to clarify that im seeing the same things as you are. If you could number the wave patterns THAT would be brilliant! Thanks.

cheers

Goodmorning amadreus and everyone

I would think that the price is never further from the EMA 200 then 20 pips on that chart, which would mean is not a sufficent distance from the EMA 200 to enter a trade according to this strategy. I have mine distance from EMA warner at 22 pips, which i calibrated with having a look at the charts some weeks back.

However, i am trying out a method of trading that utilize the fact that price is a medium distance from the EMA 200, say 6-21 pips. I will keep you posted of my results.

Happy trading to all and everyone.

Market is really choppy, if u see smth like that 15 pips up 15 down dont try to trade ...you need to see clear movement one way with at least 1-2 retraces for entering trades.

Yes i agree indeed. My experience so far using the wisdom from Hoss method as of now on EUR/USD is that it does not give many, if any opportunities, and this has been going on since July 1st.

It seems the pair is moving in steps, going from ranging choppy conditions to large breakout steps, say 75-300 pips, then back to ranging and choppiness. It is affecting the dollar it seems, as the same pattern, if less extreme, can be observed on GBP/USD.

Now i think that the breakout steps can be foreseen, just not in which direction. One could of course try to join the movement, but it advice against it, as there is a good chance it will be a short breakout. I can see that when my EMA 39 och 200 meet on M1, there is a small or large breakout.

Another thing i have noticed is something similiar on M5. Here i have calibrated an EMA of 62 and the good old EMA 200. When they meet, the price gets really choppy and then a breakout occurs. In a little while, say an hour, these two seem to meet again and then there might be another breakout.

Anyway, this seems like bad weather to me when it comes to predictions. Of course there is the fact that price lis probable to come back to EMA 200 and then go off again, especially when us europeans are drowling on our pillows and dreaming of freedom.

Happy trading (although perhaps now is not the time) to all and everyone.

yes, i wouldn't have traded anything on this chart. price is actually waiting on a breakout here, and that is when you do not want to trade. it will wipe you out. wait for a breakout to occur before you start looking for opportunities.

Cool thanks for the responses, every little bit helps

I found this next setup a few hours later, is this more inline with the system?