CHOROS System

WOW! What a day for dancing!! If I ever needed proof that this is a phenomenal system, today was the day. Here are the trades I entered today for a total of +223 points. I honestly can't believe it.

Thank you Clay and thank you Kostas!

There are two things I learnt from all my demo trading over the holidays that helped me a lot, maybe they will help someone else.

1. I wait until there is a big move and then take the first retrace. I used to try and catch a move as soon as it starts because I was afraid I'd miss it, and was always getting it wrong which was killing my balance and my confidence. As you can see in all the trades below with the possible exception of the first EU trade, there is a lot of movement before I enter for the first time on the retrace. This is in the manual (wait for a trend) but sometimes idiots like me don't listen to that...

2. I enter with a 10 pip SL and leave that until the trade has moved on at least a bar. I was always getting stopped out before by price just coming up and touching my SL, or I was freaking out when price went into the negative and closing the trade. Now I leave the SL and -10 and trust that I made the right entry.

Those two things have made a huge difference to me and my results.

Good job my friend, but 223 points? Nice.......

I have only you to thank.

Those points are going a long way to make up for the painful lessons I received trading the Dance before I had actually learnt it. Amazing how something so simple can be so hard to learn. It's exactly as Clay said - I was making it more complicated than it was.

Amazing! Great trading!

Almost everyone in this game have had dark days, nothing quite prepares you for the mental anguish of trading especially when you have no idea what you are doing wrong but still keep seeming to lose.

Your second point here will resonate with many people, me included. During my problem days, I sort of knew what I was doing was wrong but just couldn't help but do it. I was moving stops to BE so early on in winning trades that I was choking the life out of most of them, yet letting crap trades hit my full stop every time. I was taking profit way too early and generally my trade management was simply woeful. It was all borne from panic and that feeling of not being in control - which of course you aren't in trading. Accepting that all you can do as trader is to place the trade and give it time to do it's thing, is a huge part of going from losing to winning.

I started my day with a loss today. The setup was fine but it failed. I had a feeling of almost total indifference to it, a feeling so different from this time last year, where I would probably have been punching the back of my chair! It almost makes losing bearable when you accept it's the cost of business....almost

Good luck and good post

Hey Trotty, good to see you! I was just reading one of your posts in the original Dance thread, crazy coincidence.

Very good words, you are absolutely right. For me it took me realising that this is a percentages game, it's not possible to win every trade, so relax and try not to let the bad ones affect your next one. Many was the time last year when I felt like punching something.

I have the amazing ability to fail every single trade that I enter when it's not a dance trade. If I could somehow harness the opposite of that I'd be rich.

How weird!

I still use the core mas from the Dance but trade in a different way overall, just a way more suited to me. It's a great way to trade though and it helped me learn the business. Kostas is a top man to learn from and i'm sure you'll do well if you stick by him.

Best of luck to everyone still Dancing.

18 Jan 2011 Trade Report

2nd Trade of the day,
Long when Price touched M15 10 EMA again..
entered at 1.6012, 1.6005,1.6004 using half of normal position size..

waited for price to bounce strongly off the M15 10 EMA but it was struggling.
decided to exit at 1.60136 for average 10.8 pips profit on the 3 positions.

In the charts above, I see areas of interest such as Daily R1 and Daily Pivot. This means that you calculate the Pivot and R/S levels from the D1 time frame?

I understand the fact that you calculate the Pivot point from the daily chart but what about the R/S levels?

Wouldn't it be better if I calculate the R/S levels from H1 or H4?

do you really trade off those small charts?
and how many pairs do you have open?

i suppose he use the Autopivot indicator posted here
http://www.forexfactory.com/showpost.php?p=3770453

Here is an example of a bad trade!

Although the set up was nearly perfect, the newbie guy had no patience and entered at the completely wrong time.

Set up:
M15, very steep 10EMA and steep , parallel 35/50 MAs that tend to touch each other.

What confused me was the fact that I didn't know if I am going for a touch trade or a constrainment. Since the set up was showing constrainment, I thought "enter as soon as possible to gain more pips" . You can imagine the result....

I know how to calculate pivot points but I would like to know from which time frame you people calculate pivot and R/S levels.

Thanx in advance!

you managed to enter on the end of the third wave and the pullback took your stop. thats why when the price rallies you better wait for a retrace (a touch at the 10EMA) before re-entering in the direction of the previous trend.

I guess this is something happening to several Dancers.
Same thing in IERO4's previous post.
(Not a critical at all: it happens to many, to me for sure )

When you read words like "no patience, I thought..." it is a mathematical result... :

It is like starting to dance a Rock 'n Roll before the music starts and when it starts it is a Walzer.
Imagine how you look like in front of all others ?

One of the amazing advantage of this Strategy is that IT IS EVEN BETTER if you think you "lost" the first train.
Because that one will show you the direction of the next.
"Just wait" (I know that is not easy for anybody) for the train to stop at your station and jump in when it does.
Try to do it before it stops and you imagine the probable result ?

But the reason of my post is your previous CHF chart:
actually the retraces seem not following "exactly" the 2 Bars Rule, but as it several times happens also a not PERFECT entry turns out in a good trade.
Only be a little bit careful with that, because you are waiting for the train with a feet over the safety yellow line in that case...

You know what it may happen...
MAY, must not, but MAY.

It is ALL a game of probabilities here.

I just noticed that most times at the constrainment trades, the Elliot Waves theory applies!!!

Is that true? What is your opinion guys?

ok, here it goes, simple Elliot Wave theory for the Dancer
http://www.forexfactory.com/attachme...1&d=1295359469
Q. What are them waves thigie?
A. Elliot Waves theory pretty much is about price unfolding and following the extremes in investor psychology. To simplify things lets say that that in a generally uptrending market the move will occur in 5 waves.
1, 3, 5 are up moves, 2 and 4 are down (corrective moves) and these are the ones we can use as "Touch Trades" as Dancers.
The 1st wave is a warning that something is about to happen.
The 2nd wave is a correction (retrace) but it never goes lower than the start of the 1st wave.
The 3rd wave is the one you are looking for it is the largest of all 5. You should enter that at either the end of wave 2 or as soon as the price goes higher the high of wave 1.
The 4th wave is a retrace, again it must not go below the high of wave 1. i usually dont enter those Unless there is a very good reason (ie no resistance above)
The 5th wave is smaller than the 3rd,and sometimes its choppy or it doesnt even happen at all, if you are in it and you see the price hesitate you know its about time to tighten your stops.

IF wave 2 breaks below the start of wave 1 then things are simple, the move has ended before it even started and you cant expect whatever follows to be along the lines above.
IF wave 4 breaks below the high of wave 1 then the move is over and you better pull out asap.

Q. How it relates to the dance?
A. The pullbacks are good points for dance's "touch trades", expecting that they will happen doesnt make you feel like a fool that you missed the start of the move but rather comfort you that there will be more chances.
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After the series of waves have ended you can expect a fall of the price, this time in 3 waves. A,B,C.

Q. When is the best time to enter?
A. After the A wave start going down you bang your head with the mouse because you missed the move, usually its a big one (could come after a constrainment of sorts) and you cant bellliiiieve you didnt see it. Great, so what do you do? you wait for a wave B.
A retrace of the price usually to the 10EMA. I remember "Survivor" (or else Mr Constrainment) here in this thread saying that he doesnt any more feel bad because he missed the move because there will be a pullback so he can enter safely.

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you can expect the opposites of 12345 and ABC when trending Down.
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Keep in mind that the waves will not allways hold true but at least you know what to expect if you see one that is behaving nicely.
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I hope i didnt confuse you and isnt meant to be an addition to the method, but i feel it will help people be more patient and dont feel like they missed the trade. Also it will help those that have a special ability to nail the tops and bottoms of the very end of a move, believe me i was an expert in that too...


now with our experience from the Dance we can expect certain areas to play the role of enpoints of these waves, because say a confluence is there, or a touch of the 10EMA on a retrace or a bounce off the 35/50 , a confluence of a RN and a MA , or pivot points with something of the above.

Will they always hold true?
Of course not, but at least you know what to expect, and if you see they dont behave as you would expect at that point just wait for the next.

and an example of a very typical move below.
http://www.forexfactory.com/attachme...1&d=1295360135

What I need is a (better if first) 2 Bars retrace Touch of a steep EMA10 or a solid bounce off a steep parallel running 35/50.

On top of that Discipline, Patience and a well considered Money and Trade Management.

Nothing more.

Just my opinion and preferred way.

Everybody else may wish to get deeper in Elliot Waves, but my simple suggestion is:

get your doing it easy.

If I may,

I would second that. Having read whole books on Elliott Waves didn't make me "see" things as the Dance has done in an 80-page manual (well, there's also the threads of course which are a 100 web pages but you get my idea).

Especially about the Elliott Waves, I could not stand the fact that every analyst would give a different view on the same chart with different waves and different resultant suggestions. This looks too random to me.

However, to give credits due, the charts of asos above show a very simple truth that I am now beginning to grasp: All good (meaning effective) systems or methods of reading price action, eventually will end up with the same trade setups more or less, give or take a few pips.

The advantage of the Dance in this, as most long-time posters here have repeatedly said, and I have found it to be true, is that it is one of the most simple AND effective methods of doing that. Any additions to the original concepts, for me at least, had better be as consistent and as simple as the original ideas from Clay.

All in all, if Elliott Wave Theory makes someone see things better AND more profitable, by all means use it to your best. But personally, I am afraid that if we try to mix it with the Dance, confusion is waiting to get us.

Thanks asos, for bringing it up anyway.

Christos.

Naah, too many falses for elliot.

IE stop bothering with that BS. You will get traped in extensions and never know if it's a of b or b of a

Yes it works. But it takes too much of exp to make it work - maybe 10-20 years and 100s of blown accounts.

We have a simple system here why not use it.

After the trade it's easy to draw lines/ fibbo / RSI / any other BS and see the trade. But In my limited exp only dance tells you the trade as and when it happens.