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Ken's Continuing Successes with EO's system

  • #1,601
  • Aug 19, 2010 1:57pm Aug 19, 2010 1:57pm
Quoting leemonk


I wasn't refering to your grammer.... I was refering to my noggin (head).

I think I got a bad case of A) bad trades and B) Hayfever.

Can't concentrate at all.

I added a visual (Chart) to that post..
Good Trading To All ; Ken Lee
  • #1,602
  • Aug 19, 2010 4:59pm Aug 19, 2010 4:59pm
Quoting Kenneth Lee
It is what you FEEL the most comfortable doing. I guess the biggest issue is that most start out with a small account and the quicker trading with a bit more risk is how they feel they can get gains faster when in reality. If they used less % and took more trades with proper Money and Trade management they would be better off in the long run.

This is something I wrote in my personal journal last week

August 10, 8:30pm
These last few days have taught me something interesting about myself.

My position size has been under my 1% limit. The risk I have been running here have been closer to 1/3rd %. My realization is my ability to let positions run their course. For instance last night I went to bed without moving my stop to break even. It had not moved enough in my favor. My targets were all set, stop loss in position, I went to bed. Slept well too I might add. I do not know how much I would have to raise my risk to be able to do that. The point is I am able to trade comfortably and milk a position for all it is worth. When I woke up I moved my stops to their proper places. ( I don’t like the randomness of trailing stops, not being technically set).

Also this gives me the ability to do a little scalping with the 5m scalping system I have without raising my risk past the 1% level. Being it is a scalp, my holding time will be shorter usually. So even if my other position is not moved to BE I can still scalp.

So I will be keeping a small risk with my positions and shoot to hold them longer. My risk reward ratio has been upward of 1:6 at times. So I can’t complain.

I have not been able to trade much this week. I have been far to busy with my other work. But I will be raising my risk to 1/2 %

Rufus
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #1,603
  • Aug 19, 2010 5:19pm Aug 19, 2010 5:19pm
Quoting Storeball
That last one is as spot on as can be! Almost like an echo of my own thoughts lately. Its funny how often you'll find things just pops up at you when your thinking about a certain topic. But it really hits home especially since i'v begun looking at different pairs.

Would you mind sharing what your 3-4 setups are?
I will share. It`s really nothing new. Because of a lack of time (and some problems with my English ) I answer about my setups in time period. ( for the first one I find similar description to my setup on some website- )

Possible turning points/areas (- IN FIBO ZONES -)

1. http://www.nobrainertrades.com/2009/...e-pattern.html
( retest after breakout this pattern is also important )

Can you spot that type of trade setup today at 4h USDCAD ?

to be continued...
  • #1,604
  • Aug 20, 2010 1:35am Aug 20, 2010 1:35am
Quoting kodziro
I will share. It`s really nothing new. Because of a lack of time (and some problems with my English ) I answer about my setups in time period. ( for the first one I find similar description to my setup on some website- )

Possible turning points/areas (- IN FIBO ZONES -)

1. http://www.nobrainertrades.com/2009/...e-pattern.html
( retest after breakout this pattern is also important )

Can you spot that type of trade setup today at 4h USDCAD ?

to be continued...
Good morning to you Kodziro!

And thanks for sharing
Is this what your refering to?
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  • #1,605
  • Aug 20, 2010 2:47am Aug 20, 2010 2:47am
Quoting kodziro
I will share. It`s really nothing new. Because of a lack of time (and some problems with my English ) I answer about my setups in time period. ( for the first one I find similar description to my setup on some website- )

Possible turning points/areas (- IN FIBO ZONES -)

1. http://www.nobrainertrades.com/2009/...e-pattern.html
( retest after breakout this pattern is also important )

Can you spot that type of trade setup today at 4h USDCAD ?

to be continued...

Kodziro - thanks for sharing these......

Storeball - thanks for asking for these....

I have tried not to read SB's comments on what he thinks.

Here is my chart (details in it).

*edit*

I may hve missed 'the move' as it may have been the move off the weekly pivot. (we were 8hrs behind Kodziro's post)
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  • #1,606
  • Aug 20, 2010 3:45am Aug 20, 2010 3:45am
Quoting leemonk
Kodziro - thanks for sharing these......

Storeball - thanks for asking for these....

I have tried not to read SB's comments on what he thinks.

Here is my chart (details in it).

*edit*

I may hve missed 'the move' as it may have been the move off the weekly pivot. (we were 8hrs behind Kodziro's post)

Hey Lee!

I see we've come out pretty different. Although the red area is most certainly an area of interest, im not sure its completely in line with the trade which was explained in the link.

"1. Price spikes out of a consolidated range

2. Price pulls back, making a 'flag' pattern

3. When price revisits the bottom of the flag, its used as support"

On the weekly pivot we do have the spike through and the first consolidation, but we're missing 2 and 3, the move north befor it comes down and hits support area again, wich is where we would enter at the touch, at least if it is toghether with a fib level like kodziro mentioned.

I might be totally wrong though as im still feeling morning drowzy after i'v been trying to fix our toilet which just broke (!) for over an hour Crappy job.
  • #1,607
  • Aug 20, 2010 3:53am Aug 20, 2010 3:53am
Quoting Storeball
Crappy job.

Quite literally........

Detail, detail, detail......... I did not read then entire link.

Thank you for pointing that out........... to much of a rush all the time.
  • #1,608
  • Aug 20, 2010 5:28am Aug 20, 2010 5:28am
Quoting Storeball
Good morning to you Kodziro!

And thanks for sharing
Is this what your refering to?
Morning Storeball.

Yep this was that spike base
But remember our area of interest is placed at lowest wick of the spike base or at psych line. At least mine because i want to set PO there with sl max 10-12.
I should start with basics ( at point 1 got two more setups but I will back to them later ). So here we go:

Def:
Psychological line (level) - level that was tested at least twice ( 4h candle has same low/high)- if one of them is daily l/h level is stronger. Of course more test more important levels.

2. Breakouts trades:

After break we wait for pullback. I trade with 2 scenarios

a) with large momentum ( big candle close ) trade with highest wick

b) medium/small momentum trade with psych line

sometimes I do knot know on what level price react so trade them both with tight sl. Of course waiting for 15m pa is aways good idea.

Here two examples : ( one is combined with some explanations about spike bases)
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  • #1,609
  • Aug 20, 2010 5:53am Aug 20, 2010 5:53am
Quoting kodziro
Morning Storeball.

Yep this was that spike base
But remember our area of interest is placed at lowest wick of the spike base or at psych line. At least mine because i want to set PO there with sl max 10-12.
I should start with basics ( at point 1 got two more setups but I will back to them later ). So here we go:

Def:
Psychological line (level) - level that was tested at least twice ( 4h candle has same low/high)- if one of them is daily l/h level is stronger. Of course more test more important levels.

2. Breakouts trades:

After...
Thanks for the charts and confirmation!

So basically to find our entry we just draw our ppa lines, wait for a breakout and trade the retest, pullback with 15min price, touch or just put up po whatever we're comfortable with?

Nice easy and effective!
  • #1,610
  • Aug 20, 2010 7:15am Aug 20, 2010 7:15am
Quoting Storeball
Thanks for the charts and confirmation!

So basically to find our entry we just draw our ppa lines, wait for a breakout and trade the retest, pullback with 15min price, touch or just put up po whatever we're comfortable with?

Nice easy and effective!

Kodziro,

Do you take every retest you see?

If previous SR has been strong and a candle breaks it, closes and comes back,do you take all of these?

Also.... Do you look for a 4hr candle close or will you take a retest of a 15minute candle that is within the active 4hr candle that broke out?

Thanks
  • #1,611
  • Aug 20, 2010 1:38pm Aug 20, 2010 1:38pm
Hi Ken!

I dont mean to spam this thread with all kinds of different stuff and questions, so if it comes across like that let me now and i'll chill out.

But the asian drift trade is something that has become stuck on my mind for a while now. Not really getting it to work totally the way I want yet.

So I was wondering if you had some other thoughts on it?

I now its a trade which is in effect from like around 17 +1 gmt (i think 11 your time?), and is often a time when price reverse and just drifts in one direction often until asian open. Can very easy be seen by just going back and looking at charts around that time.

What im hoping you could elaborate on is how stricktly you follow the time as often you'll find, (with my limited experience that is) that price doesnt really reverse until like 18 19 (gmt), and what do you base you entry on?

Is it enough to to get a nice candlestick pattern within our time of interest?
And how long is typically our time of interest?
Or do you require confirmation like any other "normal" trade where we at least want some ppa or htf agreement.?

Here is a chart from tonight. The red arrows both point to the open of the 1715 gmt+1 candle open. Should show some of the potential for this trade.

Hope its not to much rambling, but if you could dish out a thought or two it would be absolutely great!

Thanks in advance
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  • #1,612
  • Aug 20, 2010 4:55pm Aug 20, 2010 4:55pm
Quoting Storeball
Thanks for the charts and confirmation!

So basically to find our entry we just draw our ppa lines, wait for a breakout and trade the retest, pullback with 15min price, touch or just put up po whatever we're comfortable with?

Nice easy and effective!
Yes you are right.

Leemonk I wait for 4h close because price may close under s/r. Don`t know what you mean by taking all of these. Check my example, maybe it help.
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  • #1,613
  • Aug 21, 2010 9:06am Aug 21, 2010 9:06am
Quoting Storeball
Hi Ken!

I dont mean to spam this thread with all kinds of different stuff and questions, so if it comes across like that let me now and i'll chill out.

But the asian drift trade is something that has become stuck on my mind for a while now. Not really getting it to work totally the way I want yet.

So I was wondering if you had some other thoughts on it?

I now its a trade which is in effect from like around 17 +1 gmt (i think 11 your time?), and is often a time when price reverse and just drifts in one direction often until asian open....
yes always look at your higher time frame but at that time of day we are entering a time of consolidation normally. So it may not show much . But I do see that the 20 area is a good PPA levle off the hrly chart.

I find it should work out above average for a decent amount of pips that should overcome any losses, The problem is taking them consistentlly.

If you don't take them regualr like the losses could out win the gains.

It is the same with most of our trading. If we watch the 4 hr for the best entry signals then enter off the 15 min. But take a loss or two so then skip the third it will be the one that goes 400 pips. And the first should have only cost us around 40 pips.

Just try to see the best areas for your stop and then enter as close as possible. Wed was easy as the entry was a lower low. The Thursday was right at the high of wed. that second green after 11;00 was equal to the
left shoulder close at 6;00 am. We also need to see the value in the close of the candles.

I think a lot of people put to to much weight or value on the top of the wicks . They are more important on a higher chart as a wick on a 4 hr or daily can be hours worth of 15 min candles. But on the 15 minute it can be 1 min. So just like a freight train it doesn't stop on a dime.

Hope this answers some of your questions. Hope everyone is having a great weekend. Ken
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Good Trading To All ; Ken Lee
  • #1,614
  • Aug 21, 2010 10:18am Aug 21, 2010 10:18am
Quoting Rufus
Hi ken and all

All thuis talk about trendlines and S/R, PPA. I just have to take notice. My charts live and die by these things.

A few weeks ago I was spending some time with a comercial forex trader. Trades a lot for himself as well. He also deals with banks and trading floors.

So anyway he started explaining to me how banks do things in the Forex. I will number out the things I remember. This is a in general type of thing.

1. Traders and analists are in different areas and don't intermingle.
2. There are traders that specialize in methods....

Hi Ken and all

I wanted to add something to this post, especially since the renewed conversation of "Asian Drift".

I spoke to the same trader concerning this phenomena that frequently occurs.

He called it "London Fixing"

We see at times how the US session will try to "Take backl" what London did over the evening. The New York Reversal. Or at times just continues with the London trend.

When London starts to close down the big money adjusts or closes their positions that they carried over the Asian and/or London sessions. The big money players have to leg out there holdings. "Fix" their positions.
Sometimes they need fixing sometimes they don't. This is why we don"t always see it. But when it is there it can be profitable. A pull back to enter a trend.

Rufus
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #1,615
  • Aug 21, 2010 10:50am Aug 21, 2010 10:50am
Quoting Rufus
Hi Ken and all

I wanted to add something to this post, especially since the renewed conversation of "Asian Drift".

I spoke to the same trader concerning this phenomena that frequently occurs.

He called it "London Fixing"

We see at times how the US session will try to "Take backl" what London did over the evening. The New York Reversal. Or at times just continues with the London trend.

When London starts to close down the big money adjusts or closes their positions that they carried over the Asian and/or London sessions. The big...
Thanks for that input , I always assumed that was just the move we got right at London close either way it is all good.

The more we know the more we can start to see how and better yet why Peice Action unfolds. Just trying to see it and not no the why makes it harder to understand and believe.

But when we know why it happens it is easier to believe..


Thanks again ken
Good Trading To All ; Ken Lee
  • #1,616
  • Aug 22, 2010 5:08am Aug 22, 2010 5:08am
Quoting Kenneth Lee
yes always look at your higher time frame but at that time of day we are entering a time of consolidation normally. So it may not show much . But I do see that the 20 area is a good PPA levle off the hrly chart.

I find it should work out above average for a decent amount of pips that should overcome any losses, The problem is taking them consistentlly.

If you don't take them regualr like the losses could out win the gains.

It is the same with most of our trading. If we watch the 4 hr for the best entry signals then enter off the 15 min....
Hi Ken! Thanks for further explaining it to me and rufus for your input as well!

So really the asian drift is more of a dynamic trade then I was under the impression of. I thought that in its purest form it was a reversal trade, but really in some cases what might seem as a reversal at 11 might just be a pullback to continue the trend? Of course nothing is stopping us from trading both though.

So actually for us its basically just like any other normal trade we will take, at least the entry, but the difference being in our expectations of how long the trade will last (drift)? Is this a somewhat correct assesment? And if so what is generally your thoughts on taking profit once we're in?

We've got some heavy crazy rain going on atm but still a good weekend. Hope your having a good one yourself! Thanks again!
  • #1,617
  • Aug 22, 2010 7:58am Aug 22, 2010 7:58am
Hi.

Here`s my next setup, although it was talked about it a lot on this thread ( with many examples ). So will not go on details.

3. Fibb retracement

a) with psych. line

b) with ppa ( look for daily hl )+ major ma ( or without ma with daily line)

c) with 4h PA ( i will write about it in the next section more generaly not ony in fibs zone )

Cheers.
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  • #1,618
  • Aug 22, 2010 7:59am Aug 22, 2010 7:59am
Quoting Storeball
Hi Ken! Thanks for further explaining it to me and rufus for your input as well!

So really the asian drift is more of a dynamic trade then I was under the impression of. I thought that in its purest form it was a reversal trade, but really in some cases what might seem as a reversal at 11 might just be a pullback to continue the trend? Of course nothing is stopping us from trading both though.

So actually for us its basically just like any other normal trade we will take, at least the entry, but the difference being in our expectations of...


I am not sure and maybe if Rufus gets a chance he can give us his thoughs on this. I think the London Fix is the small retrace we get that gives us our entries.

As far as targets they would have to be decided on trade by trade , But we always trade towards the ma's and the trading zone for reversals . So we can slide our stop along at different levels. But we have seen latelly a range has been in place and price after news was returning to where the price had started .

I like to look for the last swing as a possible target . But as always Price action leads the way . watch for CLOSES at each level of concern give it a small amount of time to breech a level maybe if you can afford to or your patience allows. But if it closes the other side of a area look to the next. also the hrly 10 ema is a nice line to watch .

once price stalls draw a horizontal line on your chart and use it for a TP area . TP other side ( A STOP) .. hope this helps maybe a chart later just woke up..

Yeah we have a had some major rain ourselve and as we only own bicycles it makes life interesting. But worth it.. have a great sunday.
Good Trading To All ; Ken Lee
  • #1,619
  • Aug 22, 2010 8:20am Aug 22, 2010 8:20am
Every time I come on this thread, I get new information to make me sit up and pay attention to.

Cracking stuff guys.
  • #1,620
  • Edited 10:09am Aug 22, 2010 9:57am | Edited 10:09am
Quoting kodziro
Hi.

Here`s my next setup, although it was talked about it a lot on this thread ( with many examples ). So will not go on details.

3. Fibb retracement

a) with psych. line

b) with ppa ( look for daily hl )+ major ma ( or without ma with daily line)

c) with 4h PA ( i will write about it in the next section more generaly not ony in fibs zone )

Cheers.
Hey Kodziro!

Another neat trade for sure, and as you said a coupple of good examples in the thread as well (great one from ken coupple of pages back). This is pretty close to what i too look for if im going to take a touch trade. Good fib level with a clear defined support or resistance area for putting tight sl.

Just one thing though, your saying psych level, from your other post i just assumed it was a basic ppa line but here its two different things. Would you mind just clearing up the difference between the two? Round number?

Thanks again for sharing!
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