Attachments: Musashi Trading Journal Using Range Bars

Musashi Trading Journal Using Range Bars

#1
First Post: Sep 15, 2010 11:15pm Sep 15, 2010 11:15pm

Musashi
| Joined Feb 2009 | Status: Trader | 1,626 Posts

Hi everyone,

I've been posting in the Higher Low, Lower High thread a fair bit lately.

I have decided to start my own Trading Journal Thread where others can follow my trades and I can help explain my trading style a bit better for those that might be interested.

My style is very much the same as that used in the Higher Low, Lower High thread, that is using Candlesticks and Patterns to help identify possible turning points in the market. Which might be Trend Continuation or Top and Bottom Reversals

I primarily trade around the 00 25 50 75 levels in the market.

That is 1.5000 1.5025 1.5050 1.5075 as an example.

Enjoy

#2
Sep 15, 2010 11:29pm Sep 15, 2010 11:29pm

orientos
| Joined Mar 2005 | Status: Trader | 501 Posts

Congratulations ............ nice to see you have started your own journal. I'll look forward to it and hope I can make some small contributation. Good luck.

#3
Sep 15, 2010 11:37pm Sep 15, 2010 11:37pm

FOURX
| Joined Feb 2007 | Status: Trader | 1,477 Posts

Hey M

like your posts over there with Vantage, i will watch with inteest,

good luck with your journal,not that you need it

#4
Sep 16, 2010 1:00am Sep 16, 2010 1:00am

Musashi
| Joined Feb 2009 | Status: Trader | 1,626 Posts

Ok here goes.... they say a picture paints a thousand words. So here's a picture I hope it helps to explain what things to look for in the market.

Each bar is 7 Pips in size. 7 range bar chart.

Ideally need at least 1:1 Risk vs Reward Ratio between stop and target area.

If it's not then suggest don't take the trade.

Ideally 1.5 : 1 is good amount.

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#5
Sep 16, 2010 1:21am Sep 16, 2010 1:21am

FOURX
| Joined Feb 2007 | Status: Trader | 1,477 Posts

hey M

where can i get range bar indi?

thanks

#6
Sep 16, 2010 2:11am Sep 16, 2010 2:11am

pipfirst
| Joined Dec 2007 | Status: Trader | 133 Posts

Hi Musashi,

can you please advise how you trade M7 ? it is 7 minutes chart.

Thanks

#7
Sep 16, 2010 2:26am Sep 16, 2010 2:26am

Musashi
| Joined Feb 2009 | Status: Trader | 1,626 Posts

Quoting pipfirst

Disliked

Hi Musashi,

can you please advise how you trade M7 ? it is 7 minutes chart.

Thanks

Ignored

The bars are equal size. They are converted using an expert that you attach to the m1 chart which does the work of converting the bars to Range Bars.

The expert I am using is a commercial expert so I cannot post it on this forum.

It is called s-constant range bars

Setting them up explanation begins on this page

http://www.forexfactory.com/showthre...08544&page=149

I have explained in the Higher Low, Lower High thread how you go about setting them up.

Using them has significant advantages over time based bars.

#8
Sep 16, 2010 6:01am Sep 16, 2010 6:01am

pipfirst
| Joined Dec 2007 | Status: Trader | 133 Posts

Hi,

do you mean that your strategy only can work out in 7 minutes chart ?

any advantage using range bar ? since I dont know how that range bar function.

sorry to trouble you with newbie question.

Thanks,

Quoting Musashi

Disliked

The bars are equal size. They are converted using an expert that you attach to the m1 chart which does the work of converting the bars to Range Bars.

The expert I am using is a commercial expert so I cannot post it on this forum.

It is called s-constant range bars

Setting them up explanation begins on this page

http://www.forexfactory.com/showthre...08544&page=149

I have explained in the Higher Low, Lower High thread how you go about setting them up.

Using them has significant advantages over time based bars.

Ignored

#9
Sep 16, 2010 7:25pm Sep 16, 2010 7:25pm

King Singh
| Joined Feb 2010 | Status: Trader | 78 Posts

Hey pipfirst,
Those are constant range bars.. 7 Rb means that each bar is of 7 pips. Time is irrelevant. We can set whatever range suits our purpose; like 10 Rbs will have all the bars of same size i.e. 10 pips each.
The advantage is that RBs help avoid noice and are also very helpful during volatile markets where time bound candlesticks form seemingly huge candles.
Cheers.

#10
Sep 17, 2010 8:53pm Sep 17, 2010 8:53pm

Musashi
| Joined Feb 2009 | Status: Trader | 1,626 Posts

Last Weeks Trading Statement.

0.5% - 1% risk per trade

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#11
Sep 17, 2010 11:20pm Sep 17, 2010 11:20pm

King Singh
| Joined Feb 2010 | Status: Trader | 78 Posts

#12
Sep 18, 2010 12:43am Sep 18, 2010 12:43am

jag1966
Joined Aug 2009 | Status: PA has worked for Centuries | 809 Posts

Quoting Musashi

Disliked

Hi everyone,

I've been posting in the Higher Low, Lower High thread a fair bit lately.

I have decided to start my own Trading Journal Thread where others can follow my trades and I can help explain my trading style a bit better for those that might be interested.

My style is very much the same as that used in the Higher Low, Lower High thread, that is using Candlesticks and Patterns to help identify possible turning points in the market. Which might be Trend Continuation or Top and Bottom Reversals

I primarily trade around the 00 25 50 75...

Ignored

Hi Musashi,

great work with the range bars and glad you started your thread.

I love trading Dave Vantages hl / lh and your stuff fits really nicely. Keep it simple.

Subscribed.

#13
Sep 20, 2010 6:10am Sep 20, 2010 6:10am

lefteye
| Joined Jun 2008 | Status: Trader | 99 Posts

Quoting Musashi

Disliked

Hi everyone,

I've been posting in the Higher Low, Lower High thread a fair bit lately.

I have decided to start my own Trading Journal Thread where others can follow my trades and I can help explain my trading style a bit better for those that might be interested.

My style is very much the same as that used in the Higher Low, Lower High thread, that is using Candlesticks and Patterns to help identify possible turning points in the market. Which might be Trend Continuation or Top and Bottom Reversals

I primarily trade around the 00 25 50 75 levels...

Ignored

Looking forward to hear it.

#14
Sep 20, 2010 9:06am Sep 20, 2010 9:06am

Piet411
| Joined Mar 2010 | Status: Trader | 8 Posts

Hi Musashi,

Good to see a thread dedicated to range bars. I want to try them out too, but have a question about the pip range. I have seen different people using range bars, but almost none of them are using 7-pips. Can you please explain why you choose to use 7-pips and are you using 7-pips on all pairs?

Thanks in advance!

Piet

#15
Sep 20, 2010 5:00pm Sep 20, 2010 5:00pm

orientos
| Joined Mar 2005 | Status: Trader | 501 Posts

FWIW - I have been using 7 pip RB's on E/J and G/U ever since Musashi first posted on V's thread some time ago. I just trade the early London session and they seem to work out just fine. You could of course trade any pip size you want ( I tried 5 and 15), but I'll stick to 7, although I have no idea why M. chose them in the first place. Just my 2 cents........... I am just thankful that Musashi introduced me to them.

#16
Sep 21, 2010 11:41pm Sep 21, 2010 11:41pm

Musashi
| Joined Feb 2009 | Status: Trader | 1,626 Posts

Quoting Piet411

Disliked

Hi Musashi,

Good to see a thread dedicated to range bars. I want to try them out too, but have a question about the pip range. I have seen different people using range bars, but almost none of them are using 7-pips. Can you please explain why you choose to use 7-pips and are you using 7-pips on all pairs?

Thanks in advance!

Piet

Ignored

I have no particular reason for why using 7 and 15 pip bars.

You can use whatever you wish to use.

The same patterns are evident on all, however i feel that anything under 7 is just not worth using.

It's purely up to you.

15 Pip is good for trend direction and 7 Pip is good for entries.

I'm primarily a scalper though and target around 12-35 pips on anyone trade.

Typically the next price level is my target exit, combined with previous support/resistance levels.

The exit strategy is one thing that I cannot fully automate, as price will do what price will do, if I'm long and a reversal pattern sets up then I will exit... otherwise I will target the next price level.

That's about as simple as I can make it.

#17
Sep 21, 2010 11:43pm Sep 21, 2010 11:43pm

Musashi
| Joined Feb 2009 | Status: Trader | 1,626 Posts

Entries and exits are all in the candlestick patterns and where they are found on the chart.

As long as your average win > average loss that's all that matters.

Attached Image (click to enlarge)