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CHOROS System

  • #3,761
  • Feb 3, 2011 3:40am Feb 3, 2011 3:40am
I just got out of this trade for +43p. Reasons for entry:
Price had bounced from Daily Pivot on H1 and then the H1 was sort of constraining the price. Then a strong upwards move on M15, followed by correction to the M15 EMA 10. I got in the trade too soon (so NOT a good entry by the rules), and it was NOT a 2-bar retrace. The best entry by Dance rules would have been one bar later the confluence of H1 10, and RN 1.6200. I still fight with myself sometimes for rushing in the trade. Anyway, the news favored the price and my TP was hit. I didn't wait for longer time since I don't trust the news so much. When I see that the first two minutes go in my direction I take the profit and I am out!!!
Attached Image (click to enlarge)
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  • #3,762
  • Feb 3, 2011 3:40am Feb 3, 2011 3:40am
So who leaked the GBP news? Took off 2 M early!
  • #3,763
  • Feb 3, 2011 3:44am Feb 3, 2011 3:44am
Quoting bigtent
So who leaked the GBP news? Took off 2 M early!
This time it was not leakage since the announcement was timed at 9:28 GMT. But I have seen leakage many times two-three minutes before the news....
  • #3,764
  • Feb 3, 2011 3:50am Feb 3, 2011 3:50am
Quoting kostas1
I just got out of this trade for +43p. Reasons for entry:
Price had bounced from Daily Pivot on H1 and then the H1 was sort of constraining the price. Then a strong upwards move on M15, followed by correction to the M15 EMA 10. I got in the trade too soon (so NOT a good entry by the rules), and it was NOT a 2-bar retrace. The best entry by Dance rules would have been one bar later the confluence of H1 10, and RN 1.6200. I still fight with myself sometimes for rushing in the trade. Anyway, the news favored the price and my TP was hit. I didn't wait...
Actually missed that entry and thought it'd gone and subsequently wasn't paying attention on the second one.

Incidentally, how do you trail your stop? I see you survived two pullbacks.
  • #3,765
  • Feb 3, 2011 4:25am Feb 3, 2011 4:25am
Quoting bigtent
Incidentally, how do you trail your stop? I see you survived two pullbacks.
As I said before:
1. Usually take quick profit 10-15p per trade (I recommend this for newbies and when using big lots. It will build your confidence and your account quickly). All you need is 3-4 trades like that per day, and CHOROS will give you these opportunities with 1 or 2 currencies (GU, EU for me).
2. When I see a strong move, I will actively monitor the trade using M5, M1 and the visual order editor. In that case I may raise my SL up to 20-25 pips shooting for more than 30p profit.

For the particular trade today, the SL was easy. Flat 17p which was below the RN and the M15 35/50.
  • #3,766
  • Feb 3, 2011 4:41am Feb 3, 2011 4:41am
[quote=kostas1;4367617]I just got out of this trade for +43p.

Congratulations for the trade, Kostas.
Where did you put your SL?
sorry, didn't see the last posts.
  • #3,767
  • Feb 3, 2011 2:25pm Feb 3, 2011 2:25pm
What are you going to do tomorrow? Are you trading at all? half size trading? normal trading?

Personally i think to stay out of the market, but have some spare time, so may take a dance AA trade, but on a demo account The real account i think i have to put aside on a non-farm payroll day...
Better to lose opportunity, rather than capital !
  • #3,768
  • Feb 3, 2011 4:01pm Feb 3, 2011 4:01pm
Quoting kostas1
As I said before:
1. Usually take quick profit 10-15p per trade (I recommend this for newbies and when using big lots. It will build your confidence and your account quickly). All you need is 3-4 trades like that per day, and CHOROS will give you these opportunities with 1 or 2 currencies (GU, EU for me).
2. When I see a strong move, I will actively monitor the trade using M5, M1 and the visual order editor. In that case I may raise my SL up to 20-25 pips shooting for more than 30p profit.

For the particular trade today, the SL was easy....
Very interesting stuff. You entered as though the trade was an M15 10 Touch trade. But in every other way, you treated it as a touch off the H1 10 with confluence of a round number.

As an M15 10 Touch, as you noted, it violates the two bar rule. Also, Clay says never to have a stop more than 9 pips on a 10 Touch trade, but your stop was 17. Here, of course, the 9 pip stop would get taken out. Also, I assume that you had more patience with the drawdowns on the second and fourth bar because you were treating it as an H1 trade.

If it was me, I probably would have stubbornly followed the M15 rules, and gotten taken out at 9 pips, and then watch the trade eventually move in my favor.
  • #3,769
  • Feb 3, 2011 8:50pm Feb 3, 2011 8:50pm
I wrote up my summary of 2/1, but for some reason forgot to post it. If anyone wants, I can certainly do so. Here's my summary for 2/2:


1) 10 Touch. Winner. The MA is steep. The touch doesn’t come quite at 2 bars, so the trade is a bit iffy. Good for 18 pips. (Notice that just after this there is a perfect Ken/EO trade. The S/R line had been acting as resistance, and not turns into support.

2) 10 Touch. Loser. The MA is still steep. I guess this is a bit weaker as a second touch. And the move up hasn’t been all that strong. But it obeys the 2 bar rule (actually gets there in one). I don’t see any compelling reason not to take this trade. It would be better with some confluence, but it’s a good setup that just loses.

3) 35 Bounce. Winner. First touch of the 35. The 35 and 50 are plenty steep, but slightly diverging. Higher time frames are bullish. The only reason not to take this trade is to wait for a touch of the 50. The more I see, the more it looks like you take the first touch on the closest MA, the first time price approaches. After that, you wait for the last MA. Good for 15-20 pips with zero drawdown.

4) 50 Bounce. Winner. First touch of the 50. It’s really a continuation of trade 3. This one is good for 20 pips at the round number. If you held on after that, its a break even trade. The interesting question is two bars later: is the opening of the long green bar a tradable constrainment. I don’t think I would see it that way in real time, but its sure how it looks in hindsight.

5) 10 Touch (near 50 Bounce). Winner. This is the first touch of the 10 on the way down. It comes after the cross of the 35/50, so it’s by the rules. But its also counter the higher time frames, so it needs closer tending. Good for 20-30 pips. If you waited and tried to catch a bounce retracement off the 50, you might miss the trade, or you might get a better entry. It’s hard to say.

6) 10 Touch. Loser. This is actually a bad trade. The move down since the last touch is simply not big enough to excuse a violation of the 2 bar rule. This is especially true since it is counter the higher time frames, and since the bottom bounce off a Round Number, an S/R line, and the Weekly R2. If anything, this is a good spot to be looking for a reversal. So it’s a loser but it should be a no trade.
Attached Image (click to enlarge)
Click to Enlarge Name: 11508143_ MBT MetaTrader 4 - GBPUSD,M15-1.jpg Size: 80 KB
  • #3,770
  • Feb 3, 2011 11:14pm Feb 3, 2011 11:14pm
Quoting duffypratt
If it was me, I probably would have stubbornly followed the M15 rules, and gotten taken out at 9 pips, and then watch the trade eventually move in my favor.
Are you impersonating me, or am I copying you?
  • #3,771
  • Feb 4, 2011 3:25am Feb 4, 2011 3:25am
Please try (no gurantee):

1. Alert message amended
2. EMA or SMA (MA_Mode: SMA=0; EMA=1) option added

Quoting kk007
I have tried to make an alert for the usage of Dance/CHOROS for fun.

This indicator can allow user to set an alert so that if the close price of a bar is getting near (15 pips away for example) the EMA50 line (or other EMA parameter value), the MT4 will give an alert, and the user don't need to keep watching the chart of the pair when the price is hundred pip away from the EMA50.

There is no gurantee the indicator works as expected, try at your own risk.

The attached image shows where the alerts may have given when the indicator is turning on....
Attached File(s)
File Type: mq4 Near MA Alert.mq4   4 KB | 434 downloads
  • #3,772
  • Feb 4, 2011 3:47am Feb 4, 2011 3:47am
GBP / USD - H4 Constrainment downwards ?

EUR / USD - H1 Constrainment downwards ?

I am in on both short...
  • #3,773
  • Feb 4, 2011 4:03am Feb 4, 2011 4:03am
Quoting Whenever
GBP / USD - H4 Constrainment downwards ?

EUR / USD - H1 Constrainment downwards ?

I am in on both short...
Me too on EU, but it looks like it wants to go up. There is the mother of all confluences around 1.37 (Daily pivot, H1 35/50/62/200).
  • #3,774
  • Feb 4, 2011 4:35am Feb 4, 2011 4:35am
Quoting kostas1
Me too on EU, but it looks like it wants to go up. There is the mother of all confluences around 1.37 (Daily pivot, H1 35/50/62/200).

Agree, strong point there, even if I would not expect such moves before NFP today.

But it could be an interesting point for a short if some of the NFP Rockets will touch there.

(anyway out with total +43 from both crosses...and flat)
  • #3,775
  • Feb 4, 2011 5:03am Feb 4, 2011 5:03am
Quoting natnimrey
I've given up on touch trades these past few days(due to sucking horribly)to focus on constrainments, and boy are they beautiful. Here's one I just caught for +20, I bet a lot of you did as well. It's very straightforward and I felt like posting it to compliment on it's brilliance
Attachment
Wow... You are my man. Back to work after long time. Just catching up with things. But everyone will soon see posts from me for whatever they are worth.

For now just a big congratulations natni... What you have expressed were exactly my feelings when i started my journey to master these constrainments.Welcome to the club!

Kostas and others some great trades here. Am still checking how my mates here did but looks pretty sweet to me. Cheers and keep up the good work. Lets find a monster of a constrainment on Monday and milk it for all the lost pips of vacation
Making money is easy- Just dont take losing trades
  • #3,776
  • Edited 5:44am Feb 4, 2011 5:30am | Edited 5:44am
Quoting duffypratt
I have a few questions for Survivor about milking constrainments.

On the average, how many times would you say that you get to go back to the cow?...
As usual some very intelligent questions from duffy. Am still in vacation hangover but have just finished through the thread and it's time to answer. Sorry for delay. Hope you were aware that i was away without internet access.

1. "On the average, how many times would you say that you get to go back to the cow?" It's an infinite loop. Dont try to guess it just keep milking. When breakout happens you will always have one position open for big move so why worry. Sometimes i would milk it for 3 times sometimes 10 times. Doesn't matter to me. All i want is a clear entry point and Sl as long as price keeps coming back to my entry points i will keep milking. But average is tough to guess. Experience helps here. I find Fast movers like EU and GU rarely giving more than 2 milkings before blow. But slow movers like CAd and CHF keep at one constrainment for whole Europe sessions and breakout at only NY sessions. So maybe 6-7 milkings. Again it's experimental observation.

2. "What would you say the typical take profit is for a successful constrainment?" That's tough one as dance doesn't tell when to take profit. What i do is i trail as per original manual (SL moves to low of previous 15M candle after every 15M close). That's because i find constrainments to be monster movers and don't want to miss entire action.
However, if i find a confluence of resistance / support against my trade and am happy with my pip count -say 50 and above- i get out. On an average i would say 70 pips for fast movers and 40 fr slow ones should be good tp levels (for constrainments in 1H)

3. "What percentage of the time do you get a winner on the final move, as opposed to ultimately going for a stop?" It's exceptionally high. I used to get almost 8090% at last count but now i have stopped counting. Good constrainments NEVER fail in my opinion. When they fail i already know they are weak before entry so i milk them real fast to be positive even if sl hits on final lot.

4. "I talked before about pyramiding your positions as opposed to simply taking your profits." There you will have to go alone buddy. Or convince me they are safe . Actually am pretty happy with my constrainment results and dont want to tweak them. Analytically pyramiding makes sense But i find trading is not just analysis and systems- at the close of a sessions it's psychology that determines pip count. I personally find pyramiding too tough to handle for my nerves. Of course you are free to experiment and post when you get good results. Be sure i would jump at your suggestions. Keep up the good work.

Clarification: I am assuming that by pyramiding you mean taking more than twice the normal lot size. I am already taking double of normal lot size. anything more than that will be too much of stress for me.
Making money is easy- Just dont take losing trades
  • #3,777
  • Feb 4, 2011 5:36am Feb 4, 2011 5:36am
AUDUSD looks interesting....

Possible friday profit taking...
Possible short?
  • #3,778
  • Feb 4, 2011 5:54am Feb 4, 2011 5:54am
Hope someone getting this one right. EU 1H.

Am still in holiday and wont be trading. So no clear entry and exits here. But Just zoom to LTF and sell and take take quick daily target. Dont be greedy here, HTF are still bullish but 1H should give at least our daily target.
Attached Image (click to enlarge)
Click to Enlarge Name: eu.jpg Size: 55 KB
Making money is easy- Just dont take losing trades
  • #3,779
  • Edited 7:45am Feb 4, 2011 6:58am | Edited 7:45am
This is my first trade for today. Having in mind that it is friday, I am a bit carefull.

ENTRY

G/U M15 touch of 10ema at 1.6119. The angle of 10 as well as the alignment of 35/50 was a strong signal. Also, the previous 2 bars show a constrainment.

EXIT

I exited at RN 1.6100 but if I had waited more until the PA reach the Daily Pivot Support line 1 I could have gained more but as I said...it is Friday


Attached Image (click to enlarge)
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After closing that trade I decided to "follow the train" and opened a Long at 1.6086 because 1.6080 is the Daily S1 and this area is a good support area at H1. As you can see below, I baged 30 pips in 5 mins.

Attached Image (click to enlarge)
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Any suggestions welcomed!
You are allowed to fall but you are imposed to get up!
  • #3,780
  • Feb 4, 2011 7:51am Feb 4, 2011 7:51am
somebody brave enough to take that 35/50 H1 touch in EU in the news minute ? It would be a great winner with no drawdown ...
Better to lose opportunity, rather than capital !
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