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How to use the 123 strategy effectively

  • #501
  • Dec 21, 2010 8:22pm Dec 21, 2010 8:22pm
Last one for the day.
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  • #502
  • Edited 1:45am Dec 22, 2010 1:28am | Edited 1:45am
good morning wake and trading 3 nice setup reversals appear on E/U G/U and E/J waiting now for the 2 on U/J...

E/U opened at 1.3150 TP - 1.3131
G/U opened at 1.5478 TP - 1.5466
E/J opened at 109.95 TP - 109.820


well let's wait now.

cheers Luis.
  • #503
  • Edited 3:26am Dec 22, 2010 2:52am | Edited 3:26am
here you are the short on E/U

by the way G/U filled out waiting fot E/J and E/U.

update E/J filled and out. only E/U to close the 3 first trades in the morning and waiting new reversals looking for long now on G/U and E/J waiting to place the 1

cheers Luis.

last update all 3 filled and closed nicely before the news came out nice now looking for longs setups....
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  • #504
  • Dec 22, 2010 3:29am Dec 22, 2010 3:29am
I exited my position rather than waiting for it to hit my limit order. The reason I exited was news for the GBP was going to be released with in 10 minutes, and I don't want to have an open position at that time. If I have substancial gain, I will move my stop loss and chance it, but at this time I had had a move of 15 PIPs and I exited with a 11 PIP gain. Once the news is released, I will look for another setup. I have posted screen shots.
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  • #505
  • Dec 22, 2010 3:39am Dec 22, 2010 3:39am
I am posting a screen shot of the GBP/USD right after the new. If I had waited, my limit order would had been reached just before the release of the news. After the news the price pulled back. I have no regrets by my action. The additional PIPs were not enough for the risk. I will not wait for another setup. I have posted a screen shot.
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  • #506
  • Dec 22, 2010 3:48am Dec 22, 2010 3:48am
Quoting Paulus
the 1 was in place in the 1st hour as my 1st post todays states 123 in place but no trigger the 2 was easy and the 3 followed at point A..but no trigger and then a higher high then A was made so 3 gets moves

I then got the trigger at the arrow as per the post currently up 20 odd pips

cheers

P
Closed the EU trade for +31 when 1min before US closed

cheers

P
  • #507
  • Dec 22, 2010 3:54am Dec 22, 2010 3:54am
Quoting Iamfx
No criticism here just trying to learn the setup---but because of the 2 candle rule isnt this an invalid trade?
Hi

Using the rules I trade by the 1 ount should never be moved in the case of a short set up unless the price makes a higher high than your current number 1 position.

I dont understand the invalid trade part of the question Im looking at your chart and see more than 1 candle between points 1 2and 3 ??

Sorry

P
  • #508
  • Dec 22, 2010 4:00am Dec 22, 2010 4:00am
Good morning Paulus

I have a question about your tp. I think you use the distance from points 1 and 2 which is then extended from point 2 as your tp. Is the more traditional version to extend this from point 3 rather than point 2?

If so, I wondered how often your tp was successfully hit?

Hope that makes sense!
  • #509
  • Dec 22, 2010 4:01am Dec 22, 2010 4:01am
Morning Paulus, interested to know if you took GU &/or EU signals just after 7am this morning?...
  • #510
  • Dec 22, 2010 4:07am Dec 22, 2010 4:07am
Good Setup for long, my target 0.74650 for 20 pips
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  • #511
  • Dec 22, 2010 4:28am Dec 22, 2010 4:28am
Quoting sidefx
Morning Paulus, interested to know if you took GU &/or EU signals just after 7am this morning?...
Hi Side

yes 2 trade so far -25 on EU and +11 on GU

Because of my MM trade twice as many contracts ( £'s) on GU compared to EU so currently approx flat for the day

The thing about this MM is having

1 loser at 50 and

4 winners at 10 overall in the stats may look good..5 trade 1 loser 80% strike rate....but you lost 10 pips overall

If I have a loser for 100 pips I know my next trade if a winner not matter what the TP will bring me to break even

Cheers

paulus
  • #512
  • Dec 22, 2010 4:41am Dec 22, 2010 4:41am
Quoting Paulus
Closed the EU trade for +31 when 1min before US closed

cheers

P
I thought you never closed trades before they hit TP or SL?
Today's zone = Tomorrow's opportunity!
  • #513
  • Dec 22, 2010 5:24am Dec 22, 2010 5:24am
I primarily trade the GBP/USD because it moves during the time I have to trade. The GBP/USD is developing, but I do not know if it will happen before I have to signoff. Here is the screen shot.
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  • #514
  • Dec 22, 2010 5:31am Dec 22, 2010 5:31am
Quoting pres78
I thought you never closed trades before they hit TP or SL?
No in my rules I close at close of Us market start of Asian market

P
  • #515
  • Dec 22, 2010 6:37am Dec 22, 2010 6:37am
Hello everyone....sorry to hear about the loss this morning on the E/U...so I assume we still looking for a short?

http://i13.photobucket.com/albums/a2...2120100011.jpg

...we had an up direction 1-2-3 form (starting at 1155), however, because the trend still appears to be up (as the next pic shows), I disregarded it:

http://i13.photobucket.com/albums/a2...2120100012.jpg

Regards,

Jeff
  • #516
  • Edited 6:52am Dec 22, 2010 6:45am | Edited 6:52am
We've got a 1-2-3 forming on AUD/USD:

http://i13.photobucket.com/albums/a2...2120100013.jpg

My OANDA chart does NOT show the slight dips below the target line so the trade has not yet fired (following the one pip below the line rule):

http://i13.photobucket.com/albums/a2...2120100014.jpg

Mataf.net tells me the correlation between E/U and A/U is 52.9 over the last 200 five minute periods...hmmm, that is fairly high...hope it is not a fakeout....

Regards,

Jeff

EDIT: A/U trade fired at 1252 UTC....I'm noticing the trend line on E/U has not yet been broken (this trend line can be used for "advanced entries" as Paulus and others have talked about before..I don't use it, but I do like to see where things are going)
  • #517
  • Dec 22, 2010 8:11am Dec 22, 2010 8:11am
Quoting Paulus
No in my rules I close at close of Us market start of Asian market

P
Oh Ok. Thanks for the clarification.
Today's zone = Tomorrow's opportunity!
  • #518
  • Dec 22, 2010 9:36am Dec 22, 2010 9:36am
One thing I am realizing right away with flat-style MM is that we want to have larger trades....on a roughly 16 pip 1-2-3 (like I have right now on the A/U), using the one pip past the SL rule results in an about a one percent difference (roughly a 3% stop loss versus a 2% gain in my overall account) whereas on my ~50 pip trade open on E/U, a SL is about a 2.2% to 2% wager.....I think my maths are correct, and I think not only does the spread contribute, but so does the greater amount of units used in smaller trades to get the desired result (assuming one uses OANDA or another broker who has units available)....hmmm, this MIGHT mean that when volumes and direction dry up, it might be better to switch to a higher time frame with bigger moves?

Jeff
  • #519
  • Dec 22, 2010 10:33am Dec 22, 2010 10:33am
Quoting luipie
Good Setup for long, my target 0.74650 for 20 pipsAttachment

your fib numbers on the retrace are set-up incorrectly, if price moves from 0 to 100 hundred then first retracement is .38% not .62 %

just curious why your buy-in point is 5pips higher than the suggested entry point?
Catching a falling knife, no, I'm just trading the Gartley!
  • #520
  • Dec 22, 2010 10:38am Dec 22, 2010 10:38am
Quoting stljeffbb
One thing I am realizing right away with flat-style MM is that we want to have larger trades....on a roughly 16 pip 1-2-3 (like I have right now on the A/U), using the one pip past the SL rule results in an about a one percent difference (roughly a 3% stop loss versus a 2% gain in my overall account) whereas on my ~50 pip trade open on E/U, a SL is about a 2.2% to 2% wager.....I think my maths are correct, and I think not only does the spread contribute, but so does the greater amount of units used in smaller trades to get the desired result (assuming...
yes, I have mentioned this before...on smaller time frames then spread (ie broker becomes critical) so this strategy can have problems on small time frames, broker spreads (entry & exit) so you need to have more liquid markets with narrow spreads if trying to do successfully on these small time frames...better looking at 30-60 mins on the lesser traded pairs
Catching a falling knife, no, I'm just trading the Gartley!
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