Ken's Continuing Successes with EO's system | Page 186 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The System Behind the System, by Merlin Jeffries 16 replies

FX Trading Journal & Continuing Education (warrensapp) 2 replies

Continuing Direction following new Daily Low or High at Close 5 replies

Just basic question on trading successes 10 replies

Would you trade this system? New system #2. 10 replies

Attachments: Ken's Continuing Successes with EO's system
Exit Attachments

Ken's Continuing Successes with EO's system

  • #3,701
  • Jan 17, 2011 10:44pm Jan 17, 2011 10:44pm
Quoting Survivor
As i said, you are a great teacher. Please keep it up.

I absolutely agree with you.
Keep going, Master Ken.
  • #3,702
  • Jan 18, 2011 12:46am Jan 18, 2011 12:46am
Quoting Kenneth Lee
http://www.nakedalarmclock.com/
That is a web alarm clock with quick set 15, 30,45,and 1 hr buttons. can run in background
Tks Ken

I really trust every thnig we try at the moment was your past experience.

Cheers
Eric
  • #3,703
  • Jan 18, 2011 9:24am Jan 18, 2011 9:24am
Quoting Trotty
I hope this helps a little, if you stick around I will try and do more.

This is a Ken style trade more than an EO trade....
Thanks everyone for being so understanding here.

Trotty you are the man. This is what might help new comers- trading what manual says. Thanks a ton. And yes i am sticking around for long.

Thanks again.
Making money is easy- Just dont take losing trades
  • #3,704
  • Jan 19, 2011 5:14am Jan 19, 2011 5:14am
Seeing the entries better for Asia , but need to see that those early moves can care through out the night. I had intended to hold this if it broke the 1.000 level, but that pin then it stalling spooked me into closing to soon.

Just keep getting back on that horse hehe..

I did think if it broke through I would get a chance to re-enter we did get a 1:00 O'Clock entry around 1.0010 , But was looking for more a retest off the 00.
Attached Image (click to enlarge)
Click to Enlarge Name: Wed a.JPG Size: 174 KB
Good Trading To All ; Ken Lee
  • #3,705
  • Jan 19, 2011 7:32am Jan 19, 2011 7:32am
Here is a text book trade that i spotted. Unfortunately i could not catch it because price never actually touched the EMA and my PO missed buy entry few pips.
However i did spot it - that's important.

Any comments from experienced traders are welcome.
Attached Image (click to enlarge)
Click to Enlarge Name: gu.jpg Size: 65 KB
Making money is easy- Just dont take losing trades
  • #3,706
  • Jan 19, 2011 8:02am Jan 19, 2011 8:02am
Quoting Kenneth Lee
Seeing the entries better for Asia , but need to see that those early moves can care through out the night. I had intended to hold this if it broke the 1.000 level, but that pin then it stalling spooked me into closing to soon.

Just keep getting back on that horse hehe..

I did think if it broke through I would get a chance to re-enter we did get a 1:00 O'Clock entry around 1.0010 , But was looking for more a retest off the 00.

Sorry about newbie question but that looks like a 35/50 cross and reverse to me. In flat markets price crosses 50 down and closes with a small wick. Then that next small candle. Exit is obvious. Let me know if i got this one wrong.
Making money is easy- Just dont take losing trades
  • #3,707
  • Jan 19, 2011 8:34am Jan 19, 2011 8:34am
Quoting Survivor
Here is a text book trade that i spotted. Unfortunately i could not catch it because price never actually touched the EMA and my PO missed buy entry few pips.
However i did spot it - that's important.

Any comments from experienced traders are welcome.

I asked EO once about how far away he would consider a 62 ema touch trade, first as we learn about price action using that along with our trades helps , That is what the focus of this thread is to add additional basic PA understanding to the mix.

Anyway he said he would consider 10 pips before touch as ok.

I would use the last swing as a stop a close below I would get out ansd wait for a better signal.

The touch formed a nice hammer and the close is bang on the 61 fib. So when you miss a entry don't give up, look for a second entry . You will find there is almost always one.

But your right the , Learning goes , Study start to see, start to act. Finally see and act and repeat. Good going
Attached Image (click to enlarge)
Click to Enlarge Name: Wed b.JPG Size: 89 KB
Good Trading To All ; Ken Lee
  • #3,708
  • Jan 19, 2011 8:46am Jan 19, 2011 8:46am
Quoting Kenneth Lee
I asked EO once about how far away he would consider a 62 ema touch trade, first as we learn about price action using that along with our trades helps , That is what the focus of this thread is to add additional basic PA understanding to the mix.

Anyway he said he would consider 10 pips before touch as ok.

I would use the last swing as a stop a close below I would get out ansd wait for a better signal.

The touch formed a nice hammer and the close is bang on the 61 fib. So when you miss a entry don't give up, look for a second entry . You...
Thanks Ken.

Sorry about additional question but this is important for me- i think this is killing my profits! Yeah i saw the hammer and i knew it was running UP. But every time i face this problem- after missing best entry where to enter and where to keep SL.

I had identified the SL are as you suggest below PPA. But after the hammer SL looked just too large for me to enter. Psychology? or something else?
Making money is easy- Just dont take losing trades
  • #3,709
  • Jan 19, 2011 9:02am Jan 19, 2011 9:02am
Quoting Survivor
Sorry about newbie question but that looks like a 35/50 cross and reverse to me. In flat markets price crosses 50 down and closes with a small wick. Then that next small candle. Exit is obvious. Let me know if i got this one wrong.

In the pdf there is a trade refrence sheet , the 35/50 and 62 1 hr trades are listed as Retracement trades. It is why they work so well. Yes price did cross below both MAs and it worked out fine. But the failure rate for taking them in this type of area is greater. A break and then a retest of the 35/50 then short is more likelly then.

This is the hard part of learning any system. The ferriting out of the small differences that change the same entry from good to not so good to downright bad.

Just as there are many pins and turning signals . In the wrong spot within price action they can change their signal very quicklly. It is why we learn Price action along with PPA.

Just as few people start out feeling comfortable taking touch trades off S/R - PPA levels , But once they learn to see other items of confluence at those same areas and the best placement of a stop. It all of a sudden becomes easier to do, As their risk may be less than waiting for a candle pattern signal.

Just like the 62 ema touch trade or the 1 and 5 O'Clock trades they hold very little risk as we are entering as close to our stop as we can.

Of course you should adjust your stop amount accordinglly. It still amazes me that even good traders use a preset stop . Giving little regard to the reason they took the trade in the first place.

We take trades because we have analysised a area and believe it is going to hold and turn our price . Even a continuation entry is taken on a retrace no matter how small. If we are giving power of this level to hold why do so many give a extra 10 or 20 pips past that area.

If you feel your early, and you are eyeing more than one stop area. Then if you don't adjust your risk (Trade Size) you can find yourself in very bad company. If the second stop area is twice as far or more than your spread then to get stopped and re-enter at the next possible level will COST you Less.

That is the only overhead we have in this bussiness. the cost of entering a trade and what we are willing to lose on each Job ( Trade). Any bussiness owner in the world would love to know his risk before entering into a descision to take a job or do a deal.

It amazes me how many of us don't use that ideaolgy within our bussiness plan. To allow stop sliding is the number one failure of trading . Along with over extendig ourselves by using to much equity on one trade. Will take you out faster than anything.

Plan your trades. Demo if need be to learn some of the entries and there best location within the daily trading cycle. Keep in mind basic information . Previous days high and lows. The ATR ( average Daily Trading Range) Mark the closest PPA -S/R to your trading areas.

Then watch for entries.

Not all of this was is in response to your query. Just ranting along. Mostlly talking to myself . hehe,

Just keep looking and asking. the more you ask the more we all learn and remember. It takes 21 times of doing the right thing to develop a habbit . BUt it takes about halve that to develop a bad habbit.

Trade happy and well. , A failed trade builds character and is in no way a measure of a trader's ability. To not take a risk and trade at all is far worse. Just over analysis your failed trades to see what you might have missed. If you can't find anything , then maybe you didn't do wrong at all. It was just the market. Ken
Good Trading To All ; Ken Lee
  • #3,710
  • Jan 19, 2011 9:09am Jan 19, 2011 9:09am
Quoting Kenneth Lee
In the pdf there is a trade refrence sheet , the 35/50 and 62 1 hr trades are listed as Retracement trades. It is why they work so well. Yes price did cross below both MAs and it worked out fine. But the failure rate for taking them in this type of area is greater. A break and then a retest of the 35/50 then short is more likelly then.

This is the hard part of learning any system. The ferriting out of the small differences that change the same entry from good to not so good to downright bad.

Just as there are many pins and turning signals ....
Thats so kind of you ken.

Will take some time to digest all that. But i love that part "Any bussiness owner in the world would love to know his risk before entering into a descision to take a job or do a deal. "- Then whats the reason for me to hesitate to pull the trigger NEXT trade please.

I know i have a lot of catching up to do before i have any right to ask questions here. But thats indeed great help. Hope you dont mind experienced traders here getting diverted due to my posts.

Thanks.
Making money is easy- Just dont take losing trades
  • #3,711
  • Jan 19, 2011 9:10am Jan 19, 2011 9:10am
Quoting Survivor
Thanks Ken.

Sorry about additional question but this is important for me- i think this is killing my profits! Yeah i saw the hammer and i knew it was running UP. But every time i face this problem- after missing best entry where to enter and where to keep SL.

I had identified the SL are as you suggest below PPA. But after the hammer SL looked just too large for me to enter. Psychology? or something else?

If your trading off 1 hr charts your stops will always be bigger and you will have to adjust your Money Mangemnt accordinglly. But most of us and all the candlestick entries on EO's thread are based on a 15 minute chart.

If you waited for the 1 hr pin to close then switched to your 15 to look for a entry 30 minutes later you will seea spinning top. This alone is not a great entry siganl , BUT price has retraced down into the wick of your hrly pin.

So a entry with your stop now below the hammer on the 15 and hrly less than 10 pips . I use 15 Minuim. But a close below the pin and I would get out and wait for another signal. Stop is below 1.5970 ,

Even if I took a trade of the hrly my stop is alwasy below my entry signal.

The stop below the previous low at 1.5950 would be the MAX for a 62 ema touch entry. AS you will see EO' used 35 pips as a fairly normal stop amount.

If any of this isn't clear let me know.
Good Trading To All ; Ken Lee
  • #3,712
  • Jan 19, 2011 9:14am Jan 19, 2011 9:14am
Quoting Survivor
Thats so kind of you ken.

Will take some time to digest all that. But i love that part "Any bussiness owner in the world would love to know his risk before entering into a descision to take a job or do a deal. "- Then whats the reason for me to hesitate to pull the trigger NEXT trade please.

I know i have a lot of catching up to do before i have any right to ask questions here. But thats indeed great help. Hope you dont mind experienced traders here getting diverted due to my posts.

Thanks.

Not at all. That is why I started this thread, If you know how to trade you probablly don't see much use in this thread anyway.

Most like sharing information as I do. Plus it just helps to keep us all focused on what we should be focused on.

To much crap out there to divert our attention and we all know that it just takes a second to miss the best entry some days.

So never give a second thought to asking anything.
Good Trading To All ; Ken Lee
  • #3,713
  • Jan 19, 2011 9:25am Jan 19, 2011 9:25am
You will find that as you break away from threads, and start to interact at chat rooms that everyone tends to see the same thing differentlly. If it works for you fine but you can and will find yourself doubting because of some of these outside influence. So be carefull as your groups evlove and try and stay focused on what works for you, I glance at a chat from time to time of about 4 of the first traders on EO's thread and None of them trade alike. They also have diferent levels of success . But all of them are at least making a living at it if they wanted too. one is, the others still have a JOB ( Just Over Broke)

This why it is important to keep a journal or some type of trading program, So that if you get off track you will know where to revert back to when you were winning.

Just something from my own expriences. Trade Positive
Good Trading To All ; Ken Lee
  • #3,714
  • Jan 19, 2011 10:56am Jan 19, 2011 10:56am
Quoting Survivor
Another problem i find when trying to catch up with the thread is that nobody is anymore posting trades as per manual?
One thing that you have to keep in mind is that the PDFs are just some cliff's notes, with a few potential entry ideas. For example the 1/5 o'clock trades don't help you unless you have an eye for the correct time/area to take them in, same thing with the 35/50. But when you know where to look for them, they are really helpful! The most important part of the method is to look at your HTFs to find key areas, even if its just some simple S/R or PPA lines.. without that aspect you give up a huge advantage.

Here's a really simple trade I took earlier on USD/CAD. It's the kind of two-part entry that you'll see all over EO's thread: (1) Find the area, and (2) Find the signal (However, if you've got enough confluence at the area, the additional confluence counts as the signal). My daily chart is attached, you can see the trendline in red which has held for quite a while, and held again today. Since its just a TL and there's no other confluence (big MA, fib level, etc) I need a signal to enter. Conveniently I get a flattop close right at the 1H turn -- so that means my 15M closed as a flattop, so did my 1H, and so did some people's 4H.

If you do a few minutes of digging each day you'll find a few areas like this, and you can just mark them and wait for PA. Sometimes you'll get stopped out, sometimes you'll cover and get BE, but over the long haul they'll give you some good pips.
Attached Image (click to enlarge)
Click to Enlarge Name: USD_CAD Spot.png Size: 23 KB
  • #3,715
  • Jan 19, 2011 1:38pm Jan 19, 2011 1:38pm
Quoting dr mongolia
One thing that you have to keep in mind is that the PDFs are just some cliff's notes, with a few potential entry ideas. For example the 1/5 o'clock trades don't help you unless you have an eye for the correct time/area to take them in, same thing with the 35/50. But when you know where to look for them, they are really helpful! The most important part of the method is to look at your HTFs to find key areas, even if its just some simple S/R or PPA lines.. without that aspect you give up a huge advantage.

Here's a really simple trade I took earlier...
Please, forgive me my "newbiesness" but what's the importance of flattops(bottoms)? Could someone elaborate on that?
  • #3,716
  • Jan 19, 2011 8:29pm Jan 19, 2011 8:29pm
Hi! Ken, as your "trade refference sheet" shows 1/5 o'clock entries. 5 o'clock entry means to enter at retracement in uptrend and 1 o'clock at retracement in down trend is right? Pls. correct if i'm wrong. I not insight just this rule the other all clear. Your method is my main trading system, just add pivot and supply/demand level is enough. I'd like to master this method because it's logical system, however still learning to gain my experience.

Thxs.
  • #3,717
  • Jan 19, 2011 9:32pm Jan 19, 2011 9:32pm
Quoting orionfx
Hi! Ken, as your "trade refference sheet" shows 1/5 o'clock entries. 5 o'clock entry means to enter at retracement in uptrend and 1 o'clock at retracement in down trend is right? Pls. correct if i'm wrong. I not insight just this rule the other all clear. Your method is my main trading system, just add pivot and supply/demand level is enough. I'd like to master this method because it's logical system, however still learning to gain my experience.

Thxs.
Actually it just the oppisite. the refrence sheet is wrong
the labeling of the 1:00 and 5;00 , is that it is where the Fast ma's are pointing. a uptrend would be pointing towards 1 on a clock face and in a downtrend towards the 5 on a clocks face.

they are soem of the best entries to take. Good Trading ken
Good Trading To All ; Ken Lee
  • #3,718
  • Jan 19, 2011 11:19pm Jan 19, 2011 11:19pm
Quoting Kenneth Lee
Actually it just the oppisite. the refrence sheet is wrong
the labeling of the 1:00 and 5;00 , is that it is where the Fast ma's are pointing. a uptrend would be pointing towards 1 on a clock face and in a downtrend towards the 5 on a clocks face.

they are soem of the best entries to take. Good Trading ken
All now clear. Thanks a lot.
  • #3,719
  • Jan 20, 2011 7:35am Jan 20, 2011 7:35am
This is all after the fact analysis by me for learning purpose. If someone caught it great! I saw this trade real time but am still not very confident here. Plus i had achieved my target from another system. So passed.

What's important is AM i getting it right consistently enough to Use Ken's system!

Main chart is GU 1H and other one is GU D1 which shows PPA.
Attached Image (click to enlarge)
Click to Enlarge Name: gu.jpg Size: 129 KB
Making money is easy- Just dont take losing trades
  • #3,720
  • Jan 20, 2011 8:10am Jan 20, 2011 8:10am
Quoting Survivor
This is all after the fact analysis by me for learning purpose. If someone caught it great! I saw this trade real time but am still not very confident here. Plus i had achieved my target from another system. So passed.

What's important is AM i getting it right consistently enough to Use Ken's system!

Main chart is GU 1H and other one is GU D1 which shows PPA.
Honestly I wouldn't call a bar of indecision good PA.

I saw the trade but I also saw some resistance on the 1 hr chart. After she passed the resistance I took a late entry when the candle on the 15m chart which has retested the 15m 50 and 1hr 62 closed. What I have learned is to be more picky and don't try to imitate EO's high frequency trades. Better slow and steady than fast and broken.
1 trader viewing now