Ken's Continuing Successes with EO's system

G/U chart from earlier, 15M..

The red circle was my signal to go short. After the red pinbar I entered half my position, and then entered the other half once the price pulled back up to the wick of the pin. The price had been swinging nicely before this, so normally I would only aim for a scalp. However, the next two candles after my signal candle bounced off the 10EMA and then failed to make a new high following the bounce. That was my signal to let the price run past the area that we would normally assume to be the next higher low (if the candles would have went through the 10EMA I would have closed out near the bottom of the channel figuring it was a a higher low).

Instead I closed out at the circled green hammer/pinbar with the green arrow by it. I didn't actually go back long here, although I realize that would be the correct "EO trade". I figured considering the time of day there were no more pips to be had until a few hours later during the asian session.

Thanks for share your method/strategy i will try it.

I got massively lucky thanks to the central bank of japan.

This is on E/J, 15M. I went short at the hangman circled in red. Then price bounced up off the 10EMA and closed back above the close of the hangman, and also above the 200SMA (not shown on this chart, I watch the 50 on the hourly). I went long on the open of the following candle, which must be central bank intervention at this hour. Closed half and covered at +60, going to let the rest run.

It was great to get into a trade like that but it kind of ruins the rest of the night -- there is nothing predictable to trade anymore, all the charts are pretty much "tainted". Even the pairs that had nothing to do with the yen gave off fairly large pinbars. I guess that's it for me tonight.

Nice bro. http://cdn.forexfactory.com/images/icons/icon14.gif

Also got something with this move, i was holding long at u/j for 2 days ,reentering 3 times but it pays off. Also 50 fibo at 4h A/U played well.

Nice trade well executed ...

Also the long on e/j I had just got in from work, noticed the huge green candle and grabbed 24 off a short scalp, Then wakeup to it all the way back at the bottom.. Oh well such is life.

I had also shorted a/u yesterday before work but never could get it covered, so placed a tight stop and tight TP for some darn reason. the tp got hit but a trailing stop with a tp at or near the bottom of the previous swing was the correct move..


Trade well guys ,, Freaky Friday...

Do you mind me asking what your money management is like on these trades? Do you use tight stops and plan ahead on the unit/lot sizing to reenter 2-3 times per trade?

This is a post that Wormboy posted on his thread. He is a very good long term traderhuge stops as well as scalps the 1 min. Uncommon for both to be cared off by the same trader.. Here is the short cut also..


http://www.forexfactory.com/showpost...postcount=8464

PS his account is now well over 300K.. He posted the account sheet on his thread..


Cheers everyone enjoy the weekend. Ken




okay, when I started out, I funded my live forex account $30k. Prior to that I had only demoed for 2 months. It was a mistake as you know I threw myself way too soon into trading live because I had experience trading other instruments before via proxy so I thought this wouldn't be too difficult. I was wrong on many levels.
I blew almost half of my startup in less than 2 months. And for about a month after that if I remember correctly, I was still trading live but downloading and tweaking and jumping in between different indicators/systems. That didn't work because I got nowhere. So I decided to completely stop trading and I revert back to demo where I developed my own trading system using basic support/resistance & trendlines. I also had bought a few trading books which emphasized more on the psychological side. This is when I realised that I've placed and wasted far too much time on the wrong aspect of trading. So, I concentrated more on managing risk and found my edge. Nothing robust, just that I found that I work better without having to stretch my equity and risk anything more than 2% per trade at any given time. This had helped me accept losses with relative ease. I spent eight months doing this and when I felt ready I then funded a second account which was a mini account with a startup of $5k to test my working system. And before you ask me why not a micro account, let me answer you first. Back in those days fxcm didn't provide the service. So there.
I managed a 70% gain for that account over the next 12 months & I transfered all but $1k into my standard account & started to crawl my way back up & about till where I am today. And oh, the $1k account mini account I left is now $15k. I use that account to test new ideas & setups. I reckon I built the other $14k by accident. But I don't care, the initial risk was $1k anyway http://cdn.forexfactory.com/images/s.../yim/happy.gif And I don't have to tell you about my other working account http://cdn.forexfactory.com/images/s...im/winking.gif
A few things I'd like to remind you is that never ever abuse your leverage. Seriously, don't. Even if you're just trading off $100 account because whatever you practise early in your trading career becomes habitual. So if you're used to abusing leverage and gamble your way up it'll become habitual. You don't need me to tell you what becomes of most gamblers. And also be realistic & set a modest target. Don't listen to the 100% a month gains story, they're all bollocks. Those type of gains cannot be sustained every month. Not even 50% gains. No bloody way. I personally have a set target between 3%-5% per month. They're not spectacular but, know that the target I set most of the time are met & to be frank, are usually surpassed. There are times where I hit 10% - 15% in a stretch. It's all in the head.
$5k is a relatively good startup, if it's on a micro than it's almost overkill, but it's okay because it'll allow you to practise not to be greedy, ie still maintaining risk below 2% even with a large account. But word of advise, be patient. It's not all fine and dandy all the time. I've had losing months & I suspect you will too & it's all normal. Don't worry about it, don't avoid it. If you lose, you lose. I see too many people around talking about avoiding losses at all cost, ie tight stops etc. These people are not ready & till they learn to accept it, they'll never turn a corner. I think that's about it. I won't go into TA, because they're all profitable. You just need to work with one long enough to know how they can be profitable for you. Most people don't stay with one long enough to see it work. Don't waste your time doing that. ALL TA/INDICATORS WORKS MOST OF THE TIME, NOT ALL THE TIME.

Hope this helps. Good luck. I'm outta here, catch you all on Tuesday http://cdn.forexfactory.com/images/s.../yim/happy.gif

p/s: btw, the books I meantioned were Trading for a living by Alexander Elder & High probability trading by Marcel Link

I pretty much sat out today because I didn't see movement that I liked.. but I did get a few scalps off the AUD pairs, which have been swinging nice lately.

Here's one on the AUD/CAD 15M. The blue lines are a channel drawn from the 15M, the yellow line is a trendline from the 4H. At the first circled pinbar I shorted with a half position. Once the price came back up into the pinbar again I entered with the remaining position. I was targetting the yellow trendline, but unfortunately by the time price got on the other side of the 35EMA liquidity had started to dry up and the spreads were widening (end of the day on Friday etc). I closed out at the blue arrow at the bottom.

My SL is usually between 10-12 pips( if I enter directly at s/r line, if not max 15 ).
My TP depends on couple of things like s/r line, news,pa against my position. But in general I NEVER give back 30-50 pip move in my favor. My first profit is about 60%-90% of my position ( sometimes I take all ).
I like to reenter on this lines like that at least for scalp.
You see that was 100+ pips move ( my first and second position ended with +30 partial pos. and BE ) but i took profit with 90% of my position at weekly pivot for 50 pips. I missed some yes, but with sl=10 I got great risk reward ratio.

oh and this is A/U trade that i mentioned yesterday

The key thing I wanted you guys to see is , how your risk % amount can affect your ability to trade effectivelly, Just as in any bussiness if you get spread to thin and your capital is depleted, your choices become less and less,

Also the point he makes about being easier to close a smaller positon rather than a large one is so true. The bigger it is the more we get that mind set that i can't afford to lose this much and we start wishing and hoping, Which is the first and last signal to get out and look for a new trade to start making back a loss.

Anytime emotions start to show, or you feel uncomfortable, is a good sign that your reaching a limit.

Also remember if you enter a trade as a scalp keep that risk as a scalp. Plan the trade trade the plan. If your scalps use tighter stops so you allow yourself a bit larger position size , But you then see that maybe your entry was wrong so it could be a longer term trade. You have two choices One close and look for a better entry closer to your long term stop. OR lower your risk by closing part of your open postion.

To many folks myself included get into this all or nothing mentallity. We can adjust by adding and taking away our positon size . Great traders can take profit to intially lock in gains and insuring a positive outcome, They then will add to it at the apporate places to increase gains.

You could open a position and as long as a long term trend daily or even weekly stayed intact stay in the position just playing it for all it is worth.

The adding on and and removal areas are the same as we have learned. Plus we can hedge counter trend trades also. There are so many different ways to get the pips. The problem is finding the one that feels right to you. It is the reason some can only trade scalps counter trend. Which is what most find the hardest. And others only long term with big stops because that feels safest.

Just focus on what makes you enjoy trading and not a nervous wreck. Then if your not consistent maybe lower your risk as wormiie suggest and you may find the consistency most are finding to be thier biggest issue.

Hope everyone is having a great weekend.


PS Don't forget, when you do things that you know are wrong and you get gains from them , that is the worse thing you can do . It is renforcing bad habbits.. Quit IT !!!!! Take Care Ken

Thanks again guys.

More and more I am realizing how uncomfortable I am with drawdown, and how it is probably effecting my trading for the worse. I am leaning towards using tight stops of 10-15 pips instead of 20-25+. After 10-12 pips or so on a 15M entry clearly it did not go according to plan.. at that point might as well exit and reenter later instead of blowing an additional 12+ pips.

Often I've been entering half or quarter positions initially when a movement is obvious but the exact turning point is sketchy. This way I can take the trade off the 1H/4H and if it moves positive immediately, great. If not, I add to the position once it's made an obvious final high or final low on the 15M. I think it takes some of the stress out of entering.

For me the "holy grail" is probably somewhere in the middle of those two entry strategies.. quarter positions off the 1H/4H and then add to the position after final 15M confirmation, close the 15M position out early and let the quarter position run. Still working on it. But as Ken said my goal is to find something that I'm comfortable with -- trading is hard enough as it is.

Here are a couple of charts , I haven't been using GFT for a long while latelly. The thing I wanted to show is That the red and white lines are levles that have been on these charts for over 7 months.

The red are daily the white 4 hr. Thenyellow are notes I added today. I don't care if you believe me or not but it continues to amaze me that levels continue to come into play over and over. especially those gbp levels as close as rthey are you would think they are to tight. But i was able to use them for a few good scalps today.


Don't take my word for it. take the time to place levels ona few charts maybe some pairs you don't trade then go back weeks and months later and learn to believe and trust them . That trust and a few candlestick patterns and trading zone ideas and you can build a very good system.

Hope your all well and happy ken

Morning all!

Nice charts ken! Thanks!

Perhaps im late to the party here, but I came over this great strategy tester for mt4. It lets you live backtest all past data manually and at the speed you want, you can also buy and sell as you wish. It increases the amount of charts you can go through tremendously, beats regular demoing or dragging the mouse back and fourth for sure!

Here is the thread with instructions http://www.forexfactory.com/showthread.php?t=60849

Hope someone finds it as usefull as i do!

Just got this one.. first chart is the 1H, second is 4H on AUD/CAD. Took it short after the 4H started showing a shooting star in progress with the 1H already showing a completed DBHLC. This happened 10 pips shy of parity, on the top of the upper trendline of a very long channel on the 4H/Daily.

I'm hoping that this is finally the reversal for AUD/CAD as its been trending upward for quite a while. But.. hope is not a strategy, so I'll be covering quickly.

It is an excellent piece of software. It is just too bad that you can not shift during different time frames during testing

You guys might want to also check out "Forex Tester 2". It's another simulator, but has a lot more features than the vhands one. The downside is that it's not a free product (I think it was $100-150). I bought it a while ago and I used to use it daily for practice but since I've been watching a bunch of different pairs now I don't anymore (but should.. still need the extra practice.. especially useful on weekends). If you're looking for a simulator I think it's worth the money.

Hello

About importance of ppa lines. (GU today`s example )


Cheers.

Hi ken!

Whats your thoughts on au atm? Seems to be on a mission to reach the stars. If it passes the the monthly swing its a all time high.

For me, i think it will climb to reach the 9800 area where we might get a nice bounce from resistance and div up there before it does anything else.

This would be nice to see