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How to use the 123 strategy effectively

  • #701
  • Jan 4, 2011 9:31am Jan 4, 2011 9:31am
Here is a short trade I took on EURUSD... had a false break with another retrace but fortuately it came back down and hit the TP at -100 fib.
Attached Image
Today's zone = Tomorrow's opportunity!
  • #702
  • Jan 4, 2011 9:43am Jan 4, 2011 9:43am
I use an indicator to draw my SR

have a look at today's EU chart - the blue boxes are weekly SR
http://www.forexfactory.com/showthread.php?t=204276

Quoting pres78
I agree completely that simple clean charts are better and easier to read and see possible set ups....
Attached Image (click to enlarge)
Click to Enlarge Name: sr.jpg Size: 111 KB
  • #703
  • Jan 4, 2011 9:51am Jan 4, 2011 9:51am
Hi pres78,

took the same trade :-).

But had a loser (short at 1.3386) earlier with point 1 at 10:05GMT.
May I ask a question why you didn't take the earlier trade?

The second trade looked much cleaner (nicer swing) and was at S/R. But is this all?

Cheers

Thomas

Quoting pres78
Here is a short trade I took on EURUSD... had a false break with another retrace but fortuately it came back down and hit the TP at -100 fib.
  • #704
  • Jan 4, 2011 9:55am Jan 4, 2011 9:55am
Quoting tdeu
Hi pres78,

took the same trade :-).

But had a loser (short at 1.3386) earlier with point 1 at 10:05GMT.

Thomas
Thomas

may I ask that you post a chart of the loser.

I know that it is much more painful to post a losing chart, but it will be helpful for learning purposes.

I am of the opinion that some 123's look better than others.

I am still trying to define why some look more healthy and others look a bit "so so"

I spend a lot of time looking back at old charts and trying to burn the 123 shape into my eyes. (by the way does anyone know how to advance forward bar by bar on MT4, rather than scrolling)

I love this thread!!

PGPB
  • #705
  • Jan 4, 2011 9:56am Jan 4, 2011 9:56am
Quoting tdeu
Hi pres78,

took the same trade :-).

But had a loser (short at 1.3386) earlier with point 1 at 10:05GMT.
May I ask a question why you didn't take the earlier trade?

The second trade looked much cleaner (nicer swing) and was at S/R. But is this all?

Cheers

Thomas
Can you post a chart? I see an earlier set-up with a short at 3376 but it never triggered?
Today's zone = Tomorrow's opportunity!
  • #706
  • Jan 4, 2011 10:10am Jan 4, 2011 10:10am
Quoting golferguy99
Paulus,

I had two longs set up last night Euro for +45 and Pound Dollar for +45. Did you catch the pound trade also?
I shut down any trades when US closes..whats time UK ?

Cheers

P
  • #707
  • Jan 4, 2011 10:17am Jan 4, 2011 10:17am
Quoting Paulus
I shut down any trades when US closes..whats time UK ?

Cheers

P
US close is 10pm UK time
Regards
  • #708
  • Jan 4, 2011 10:18am Jan 4, 2011 10:18am
Quoting pgpb
Thomas

........................by the way does anyone know how to advance forward bar by bar on MT4, rather than scrolling

PGPB
Use the F12 key

Regards
Bak
  • #709
  • Jan 4, 2011 10:25am Jan 4, 2011 10:25am
Quoting tradestar1
Trailing stop loss may or may not be the best option here. just dong some testing at this point.
It is a method used by Feb in his thread.

Any thoughts on this Paulus?
Think ive tried just about every thing on this

i dont even move my stop to break even when im 1 pip from TP...we have to give the trade a chance to breath and breathing means space

My stop is at the best position as far as I can see which last swing hi or last swing low of old trend

trouble is we get a trade that runs for 50 pips we get 20 and there seems an injustice in the world..our eye always see's the nice big rallies or the nice big falls this is human nature it never see's all the times the signal goes sideways for a couple hour BUT still with a bearish bias ... we hold it we get our TP with any other type of SL we get taken out.

Its a tricky one in the day of the market wizards guys before major electronic trading I think trends were far more frequent..now in the electronic age perhaps not

Dont forget we are also on a minut time frame 5 mins is incredibly quick compared to guys that use daily charts to set up trades

the longeer the time frame usually the more stable the trend and bigger the profits but we get less trades and Tp's are alot bigger so MM has to be adjusted may be down to 1%

The only SL thats ive used that I have really liked is trend magic ..

Today iv had

GU +40 and short from 1.5598
EU +26-32+43

using TM as a sliding SL I get


GU +105 and still in the 2nd short at around break even
EU +40 -32 and still short in 3rd trade so that would currently be at +70

cheers

Paulus
  • #710
  • Jan 4, 2011 10:27am Jan 4, 2011 10:27am
Quoting Paulus
Think ive tried just about every thing on this

i dont even move my stop to break even when im 1 pip from TP...we have to give the trade a chance to breath and breathing means space

My stop is at the best position as far as I can see which last swing hi or last swing low of old trend

trouble is we get a trade that runs for 50 pips we get 20 and there seems an injustice in the world..our eye always see's the nice big rallies or the nice big falls this is human nature it never see's all the times the signal goes sideways for a couple hour...
Thank you Paulus, good points.
Not familiare with trend magic, is it something you have tried with this 1 2 3 system?
  • #711
  • Jan 4, 2011 10:41am Jan 4, 2011 10:41am
Ive used it on indicator based system with good success

I just have a reluctance to use it on this as its an indicator..albeit we are not using it to enter a trade and it does not effect the 123 set up

I supposes its nothing different that an EA controlling the trade once you have entered with the PA method

hmmm

P
  • #712
  • Jan 4, 2011 11:12am Jan 4, 2011 11:12am
the one with the count on it

Quoting pres78
Can you post a chart? I see an earlier set-up with a short at 3376 but it never triggered?
Attached Image (click to enlarge)
Click to Enlarge Name: eu123.gif Size: 28 KB
  • #713
  • Jan 4, 2011 11:21am Jan 4, 2011 11:21am
Quoting tdeu
the one with the count on it
I missed that one completely... For two reasons;

1. I was travelling to work when that formed.
2. I don't even know if I would have traded it if I was sitting at my computer as it it a messy looking set-up. The 123 gets kind of lost in all the long up and down candles in this set-up.

Edit... Also I am not crazy about trading 123's with such a deep retrace forming point 3. I prefer nothing deeper than 50% but will trade a retrace to the 61.8 on a short or 38.2 on a long. Like I said a retrace to 38.2 / 50 max on shorts or 61.8 / 50 max on a long are my preferred set-ups.
Today's zone = Tomorrow's opportunity!
  • #714
  • Jan 4, 2011 11:22am Jan 4, 2011 11:22am
Quoting tdeu
the one with the count on it
Thanks!!

yes....I took the exact same trade but moved my stop to break even when I was 20 pips into profit....so I got stopped out with +1 pip

I know that Paulus trades differently and in this case it worked to my favor.....but......it does not mean that moving ones stop to break even is a winning stratagy long term.

It would be great if people continued posting charts (losing trades ***AND*** winning trades...as this thread continues to grow......and new people come along....the charts are where they will learn.
I know it is human nature to only want to post the winning trades....but the losing ones are instructive....thanks for posting

PGPB
  • #715
  • Jan 4, 2011 11:43am Jan 4, 2011 11:43am
You're right.

It looked a bit messy/ranging with all the overlapping PA and the wicks sticking out.

Guess what, there was a doji on H1 before the failed breakout.

price bounced a couple of times off the boundaries of that range formed by that H1 doji and then formed the second short which was successful

Cheers

Thomas

Quoting pres78
I missed that one completely... For two reasons;

1. I was travelling to work when that formed.
2. I don't even know if I would have traded it if I was sitting at my computer as it it a messy looking set-up. The 123 gets kind of lost in all the long up and down candles in this set-up.

Edit... Also I am not crazy about trading 123's with such a deep retrace forming point 3....
  • #716
  • Jan 4, 2011 12:12pm Jan 4, 2011 12:12pm
Quoting pres78
I missed that one completely... For two reasons;

1. I was travelling to work when that formed.
2. I don't even know if I would have traded it if I was sitting at my computer as it it a messy looking set-up. The 123 gets kind of lost in all the long up and down candles in this set-up.

Edit... Also I am not crazy about trading 123's with such a deep retrace forming point 3....

I took that one lost 32 pips but made the 5% back

I try to take every signal..I have to be consistent
  • #717
  • Jan 4, 2011 12:17pm Jan 4, 2011 12:17pm
Quoting Paulus
I took that one lost 32 pips but made the 5% back

I try to take every signal..I have to be consistent
Even if it was a beauty I would have missed it... driving to work and all. Ah the joys of being a part time trader with full time ambitions

I normally take most set-ups but like I said I tend to shy away from deep retracements on leg 3 and those 2 long 5 min candles made for an ugly looking set-up.

That is what I love about forex is that everyone on here trades 123 set-ups but all slightly differently with respect to filtering, TP etc... but everyone can still be successful using the basis of this very simple set-up.
Today's zone = Tomorrow's opportunity!
  • #718
  • Jan 4, 2011 12:26pm Jan 4, 2011 12:26pm
hi PGPB,

better than F12

http://www.fxfisherman.com/forums/fo...g-trading.html

Quoting pgpb

I spend a lot of time looking back at old charts and trying to burn the 123 shape into my eyes. (by the way does anyone know how to advance forward bar by bar on MT4, rather than scrolling)

I love this thread!!

PGPB
  • #719
  • Jan 4, 2011 12:39pm Jan 4, 2011 12:39pm
Quoting pres78
Even if it was a beauty I would have missed it... driving to work and all. Ah the joys of being a part time trader with full time ambitions

I normally take most set-ups but like I said I tend to shy away from deep retracements on leg 3 and those 2 long 5 min candles made for an ugly looking set-up.

That is what I love about forex is that everyone on here trades 123 set-ups but all slightly differently with respect to filtering, TP etc... but everyone can still be successful using the basis of this very simple set-up.

thats true it all breaks down when traders tryt o emulate exactly other traders trades ..I know from experience thats quite difficult esp with the different time zones..the only way is with an ea I guess but then you need a system that can be number crunched

atm im in a not so good position which I dont like

Im short GU as per my previous posts but have a long with EA at 1.3323

1 will win 1 will fail..unless I'm lucky with the distance of the 2 TP and SL..the distance to my EU TP is shorter than the distance of mt GU TP
But at least I'm hedged I guess I'm market neutral..hmmmmm

or I could still lose both ha !

why worry about what I cannot control
I hit my TP I hit my SL thats all I look at..I wont 2nd guess an entity I have no control over

p
  • #720
  • Jan 4, 2011 12:45pm Jan 4, 2011 12:45pm
Quoting Paulus
thats true it all breaks down when traders tryt o emulate exactly other traders trades ..I know from experience thats quite difficult esp with the different time zones..the only way is with an ea I guess but then you need a system that can be number crunched

atm im in a not so good position which I dont like

Im short GU as per my previous posts but have a long with EA at 1.3323

1 will win 1 will fail..unless I'm lucky with the distance of the 2 TP and SL..the distance to my EU TP is shorter than the distance of mt GU TP
But at least I'm hedged...
Yes time zones make sharing trades somewhat difficult... I live in Canada and am in a zone GMT-4 which means for me London opens at 4AM and I work fulltime so getting up to trade LO is tough. I am able to trade the london, US cross over which is also a good time for volotlity. All I can do is log on, look for possible set-ups and trade them if they come to fruition... I rely quite a bit on pending orders which as I am sure you are aware can be both a help and a curse.

Good luck with your two trades. What EA are you using? Is it one from this thread?
Today's zone = Tomorrow's opportunity!
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