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Ken's Continuing Successes with EO's system

  • #3,721
  • Jan 20, 2011 10:19am Jan 20, 2011 10:19am
Quoting MCFly
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.

Thanks MCFly.

Yes it's better slow than broken. I am happy with a modified system of ken and in no need to rush things here but at the same time i am motivated by by this thread and determined to nail this one. And my understanding is only way for newbies to learn is to harass experienced users by posting crazy charts Seriously, i believe that unless experienced traders like you can see what i saw they really cant help me.

Thanks a lot.

EDIT: Mongolia you too a big thanks for this post- http://www.forexfactory.com/search.p...duser&u=152035. You can be sure i am reading and re-reading things but I don't like thank you posts unless i have a point to make. They just clutter thread. Thats why passed your post.
Making money is easy- Just dont take losing trades
  • #3,722
  • Jan 20, 2011 2:31pm Jan 20, 2011 2:31pm
Hi ken and all great traders, thanks for that awesome trading stuff.
is it possible to trade all this pairs with only 15M charts?
if you zoom out the chart then you can get a view from 2weeks or so,
and I dont like to much chart stuff, so what do you think from you experience is it possible???

Thanks again, keep it up!!

Aligater
born to speculate
  • #3,723
  • Jan 21, 2011 9:38am Jan 21, 2011 9:38am
I am confused a bit. I 'do not know where to enter for 1 o'clock trade (see the picture). Confusing is that the down candle closes below the top of the range and that could be false break. what to do in such case?
Attached Image
  • #3,724
  • Jan 21, 2011 9:43am Jan 21, 2011 9:43am
Hi all,

I would like to introduce myself. I am really new to forex world(5 months). So I have been going through my learning phase. At first like all beginners I went through mass indicators phase with no success. Slowly I realised there is a better way. I found this thread 3 days ago, and already I have noticed a change. I would like to thank Ken for the awesome PDF file at the begining and others for their patience and help. I would be following this thread closely and may be post some of my trade as I take it so you guys can comment on it and hopefully I will get better slowly. I am still Demo trading but hoping to go live with small account end of this month.

Thank you agin.
  • #3,725
  • Jan 21, 2011 10:02am Jan 21, 2011 10:02am
Quoting aljosas
I am confused a bit. I 'do not know where to enter for 1 o'clock trade (see the picture). Confusing is that the down candle closes below the top of the range and that could be false break. what to do in such case?
It is a slight concern that the bearish candle closed back in the range but not a show stopper for me and not a big close in the range. Trading is a game of "there or thereabouts", never an exact science.

Playing the 5/1 o'clock trades is usually a touch trade so you are in on the working candle and will not have given it chance to close in the range.

For me, that trade is ideal. You have the 38 fib level, a breakout retest trade and the 1 o'clock entry in an uptrend. 3 reasons to enter, pull the rigger. More times than not, this trade will bring you pips.
  • #3,726
  • Jan 22, 2011 3:23am Jan 22, 2011 3:23am
Hi Ken,

Thanks for the all the information that you are giving in this thread. Can any one share how they go about the profit taking(like is there a fixed number of pips that u are looking for when u take profit.... or do u look for support or resistance and adding of lots when u are in trade. Can anyone give few examples...thanks a lot for ur help
  • #3,727
  • Jan 22, 2011 9:02am Jan 22, 2011 9:02am
Quoting gladiator123
Hi Ken,

Thanks for the all the information that you are giving in this thread. Can any one share how they go about the profit taking(like is there a fixed number of pips that u are looking for when u take profit.... or do u look for support or resistance and adding of lots when u are in trade. Can anyone give few examples...thanks a lot for ur help
I've long thought that big success in trading is all to do with trade management and much less about entries. If you could extract every pip from your entry, you could enter randomly in the market and make money.

There certainly isn't a set TP in this way of trading and everyone will manage their trades differently. Understanding where you are in the market is key to having an idea whether you are scalping or should be holding. That view comes from experience and cannot be taught easily or quickly.

Doc Mongolia uses the 5 ema to manage his trades, waiting for a close through it before he even considers taking profit. My personal approach is a mixture of looking for entries in the opposite direction (i.e if I am long but there is a good setup for a short, I should be closing my long and reversing), major S+R areas but more than anything else is trailing my stop with candles. I wait until a candle closes a new high or low and place my stop 3 pips under the candle until I eventually get taken out.

If you find the holy grail of trade management, be sure to drop me a PM mate
  • #3,728
  • Jan 22, 2011 9:34am Jan 22, 2011 9:34am
Quoting Trotty
I've long thought that big success in trading is all to do with trade management and much less about entries....
thanks trotty.... whatever u said is absolutely correct... i completely agree.... i know entries weigh less in trading compared to trade management...recently i am having good entries by ending up giving pips back after it goes in my direction for a good amount of pips.....I have read EO,infinity and pippinole in the other thread.. entering trade.. taking partial profits....adding again.... so i was just wondering if ken or anyone here has some examples (chart) as how he do it.....i know it depends on individual traders and our trading style..... all theory knowledge perfect... in practise end up either giving up all earned pips or not managing it properly....so just wanted to see few examples... thanks for sharing ur approach really appreciate...

as far as holy grail is concerned.... u are really selfish... arent u? y do u want a PM? I will share it here in this thread.... very soon.....haha..
  • #3,729
  • Jan 22, 2011 9:49am Jan 22, 2011 9:49am
maybe slow in replying for a while had to recover my computer so have to reinstall some stuff
Good Trading To All ; Ken Lee
  • #3,730
  • Jan 22, 2011 11:59am Jan 22, 2011 11:59am
Quoting gladiator123
..profit taking..
As you said, this is one of those things that everyone does differently. I think what you really want from everyone is a two part answer: 1) How do they personally manage their trades, and 2) What do they think is the best way for a trader to go about organizing a trade management system of their own:

1) How I'm managing my trades-- For most of my setups I like to leave a full position on for at least 50 pips, usually 100+. I use the 5ema on the 15min and 1H plus PA on the 1H and 4H to keep me in the trade (I've made posts about this). That way, trading 1% = 10 pips, I'll get a +10% or more when I hit a winner. The downside is that it requires a lot of patience-- I get stopped out BE a lot, and even covering quickly I still get losses on very reliable setups. It also ends up yielding 20 pips a lot of times when the trade was up 40. But overall, it fits me well. I knew it was working for me because it improved my performance a lot during the very first week (I was closing trades way too early, and taking partial profit way too early). To someone else it might get too frustrating and annoying, and it might decrease their performance (maybe they take more scalp-style entries and they should be taking profit quicker, not slower).

2) What I think the best way is to find your own trade management-- Look at your trade setups individually and try to figure out which ones would produce more gains by letting them run longer, and which ones constantly yield 20-40 pips and turn. You'll want to factor in the previous trend, time of day/session, etc. Then you'll get a better of idea of what would work optimally for you. It's not a "one size fits all" approach because some people don't trade during the slower times of the day, some people don't trade during the faster times of the day, some people only enter retracements and not reversals, some people only enter the "V" of the reversal and not the ensuing lower high or higher low, etc. When I first addressed trade management I started using the same method for all trades but I've learned that's not optimal at all. For example, during Asia, unless I see a specific setup I'll take all my profit off relatively quickly.
  • #3,731
  • Jan 23, 2011 8:11am Jan 23, 2011 8:11am
Quoting aligater
Hi ken and all great traders, thanks for that awesome trading stuff.
is it possible to trade all this pairs with only 15M charts?
if you zoom out the chart then you can get a view from 2weeks or so,
and I dont like to much chart stuff, so what do you think from you experience is it possible???

Thanks again, keep it up!!

Aligater
You can trade EO's entries just using a 15 min chart for , As the entries are mainly focused on that chat, and with 2 weeks of history could do well. Oanda gives you nowhere 2 weeks on the 15 though . Gft gives you much more.

But I think you will find your doing yourself a disservice by not using your higher time frame charts, The information of just where we are in a trend off a 4 hr or daily chart is worth a ton. You can clearly see the peaks and trading zone areas and expect a change in price action accordingly.

The best traders trade between S/R-PPA off the higher charts , ei.. they will look for a entry at one s/r area and look to tp at the next. off say a 4 or daily chart. Just watching Price Action at each are to judge the value of closing adding on or reversing.

The problem comes from focusing on ONE thing to strongly , as when you see that maybe your not doing as well as you can it is hard to change and incorporate new strategies.

Hope this helps Ken
Good Trading To All ; Ken Lee
  • #3,732
  • Jan 23, 2011 8:36am Jan 23, 2011 8:36am
Quoting aljosas
I am confused a bit. I 'do not know where to enter for 1 o'clock trade (see the picture). Confusing is that the down candle closes below the top of the range and that could be false break. what to do in such case?
The test of a ZONE is common and if your worried wait for price to start back up. But this will make your stop bigger. The main focus of these types of trades is in the Price Action . WE are taught to focus so much on set candlesticks and certain patterns that will or will not appear. When we should focus on what the overall chart is saying the Price Action.

The closing of that candle is very minor, and is it closing below or did the longs earlier just close to high, see it is very subjective. I tend to lean towards the others just went to high. This is why my LINES tend to be a bit different than others but they are solid information for me. Plus I know everything is a area and that what price does AROUND those lines is what is the most important thing.

I also tend to use the extended line our charting package draws to really see what is going on. I find that some may put to much value on their drawn lines they are NOT solid walls or floors just a heads up to possibilities
some may do better without lines as I have seen time and again a good trade not get entered because a line didn't get hit by a pip or two.

So in summary look to learn Price Action not just entry signals. See Previous Price Action as well when considering your options . Is that which is off not your current PA .

Hope this helps fine tune your question .. Trade well Ken .

PS I hate computers. LOL
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Good Trading To All ; Ken Lee
  • #3,733
  • Jan 23, 2011 8:41am Jan 23, 2011 8:41am
Here is some old postings I made regarding 1 and 5 O'clock trades.

Some Confirmation To enter at MA's

Some of the trades most available during almost anytime of the day are the trades off the MA'S . Which we call the 1:00 and 5:00 o'clock trades because the 5,10,or 21 ma point in the direction of that number on the clock face depending on the trend (up = 1:00 and down = 5:00 ). The problem I am having is entering straight away against the current price action, So I have been looking for some type of confirmation to get in at the right place. I have been entering after it starts to move and can lose the majority of the pips available. This is the E/J because the cable is going sideways right now..
I will confirm the same is happening with it and post it later...

Here are the items I noticed to help us jump on the bus at the right time allowing us to take all the pips available... Plus using these your stops can be tight as your entering closer to the top.

Line A This is probably the Best and should have been the easiest to enter..As we can see in the circled area. This area was major support and now is resistance. Entry is at the red arrow. I would enter once the price starts back down.

Lines B,C,D and F are pretty much the same. Almost all had a Green bullish candle prior to entry candle . This is what makes the entries so hard to take.
But they all stopped at a previous area that was minor support before. The price doesn't break above and we have our MA's as a signal . So once the next candle opens retest that support (now resistance ) and starts down is our entry signal. ( red arrows)

Depending on our risk our stops could be very tight 10 or less above the S/R area.

All the 5 trade were worth over 40 pips each. Some a lot more.

Now the rules..
1. Price approaches the MA areas.
2. look left for previous S/R area minor 15 min, or major 1hr ,
3. Look for the candle to stall at that area.
4. Enter on same candle when it turns back or if it heads in the right direction straight off.
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Good Trading To All ; Ken Lee
  • #3,734
  • Jan 23, 2011 9:43am Jan 23, 2011 9:43am
thanks for ur reply doc.... this is what i wanted to know...thanks a lot...

Quoting dr mongolia
As you said, this is one of those things that everyone does differently. I think what you really want from everyone is a two part answer: 1) How do they personally manage their trades, and 2) What do they think is the best way for a trader to go about organizing a trade management system of their own:

1) How I'm managing my trades-- For most of my setups I like to leave a full position on for at least 50 pips, usually 100+. I use the 5ema on the 15min and 1H plus PA on the 1H and 4H to keep me in the trade (I've made posts about this). That way,...
  • #3,735
  • Jan 23, 2011 12:11pm Jan 23, 2011 12:11pm
Hi i have had a gbp/usd chart set up with EO's ma's for a little while and i really like how the ma's can be used as floating s/r and they also help with direction. i think im going to really try and give this method a go, and start to read this thread slowly. so thanks to everyone that has contibuted here and in eo's thread.

also i noticed that sometimes here people discuss other pairs, apart from gbp/usd. is there any other pair that people trade using ma's in the same way as gbp/usd? i would like to trade one pair with it and was thinking gbp/jpy, is there any set ma's for this pair?

or would you recommend something else instead?

i think 2 pairs would be good, anymore would get confusing, what do you guys think?
  • #3,736
  • Jan 23, 2011 12:50pm Jan 23, 2011 12:50pm
Quoting red2010
Hi i have had a gbp/usd chart set up with EO's ma's for a little while and i really like how the ma's can be used as floating s/r and they also help with direction. i think im going to really try and give this method a go, and start to read this thread slowly. so thanks to everyone that has contibuted here and in eo's thread.

also i noticed that sometimes here people discuss other pairs, apart from gbp/usd....

They can be used on any pair, In the original thread there was basically
three pairs trade , G/U. E/J and E/U.

Just try and apply basic Price Action to the thought and pairs your trading and you will see the best entries on a few pairs most of the time.

Good Luck ,, Ken
Good Trading To All ; Ken Lee
  • #3,737
  • Jan 23, 2011 3:27pm Jan 23, 2011 3:27pm
Quoting Kenneth Lee
The main focus of these types of trades is in the Price Action . WE are taught to focus so much on set candlesticks and certain patterns that will or will not appear. When we should focus on what the overall chart is saying the Price Action.
................
So in summary look to learn Price Action not just entry signals. See Previous Price Action as well when considering your options . Is that which is off not your current PA .
Thanks.
You are suggesting that I should look for Price Action primary and entry signals secondary. Correct me if I am wrong, please, because I'm not sure if I've got it right.
The Price Action in this case is:
a) higher low
b) six green candles making a new high (higher high) and then retrace after
c) the price has broken through previous resistance (PPA)

...and then I should start to look for an entry signal and in this case I find that 1'oclock entry would be suitable...

Am I right?
  • #3,738
  • Jan 23, 2011 11:18pm Jan 23, 2011 11:18pm
Quoting aljosas
Thanks.
You are suggesting that I should look for Price Action primary and entry signals secondary. Correct me if I am wrong, please, because I'm not sure if I've got it right.
The Price Action in this case is:
a) higher low
b) six green candles making a new high (higher high) and then retrace after
c) the price has broken through previous resistance (PPA)

...and then I should start to look for an entry signal and in this case I find that 1'oclock entry would be suitable...

Am I right?
Yes , while we sit here and stare at our charts , we should start to see what the next possibilities are , which way it may go, how far it could go. if it goes the other way how far , is it changing direction, Also looking at higher time frame charts is a level of interest off one of those chart as well.

Then once we start SEEING price action we have a better chance than most that rely on just a trading signal alone. You will start to understand why one entry works well at different areas of the trading cycle.

Just don't give up keep watching and looking , Then place small marks on your chart for where if price goes up or down where you think your next entry would be. After trading go back and see where you were right also if you were wrong.

It is a skill like any other skill but it really isn't hard , the hard part is believing in your own decisions. But you will if you keep at it.

Everyone have a great week trading. Ken
Good Trading To All ; Ken Lee
  • #3,739
  • Jan 24, 2011 8:20am Jan 24, 2011 8:20am
Hey All,
This will be my first post in FF, just like to say hi to everybody and thanks for all the hard work Ken and others have done for this thread. ive read through most of Eo's thread and yours and the info is fantastic. Im new to trading and ill be posting up some charts to test my analysis skills, i look forward to trading with everyone here
Cheers
Pete
  • #3,740
  • Jan 24, 2011 8:04pm Jan 24, 2011 8:04pm
hi guys,
heres a trade i took last night. missed the first entry point but got onto the second and covered.
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