How to use the 123 strategy effectively | Page 59 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

How to use the 9/20 EMA setup effectively 162 replies

Why not 123 strategy? What are Advantages and Disadvantages! 5 replies

How To Effectively Trade In Both Range And Trending Market By A Single Method 39 replies

Scalping the EUR/GBP effectively - Forturama 158 replies

Attachments: How to use the 123 strategy effectively
Exit Attachments

How to use the 123 strategy effectively

  • #1,161
  • Feb 3, 2011 10:36am Feb 3, 2011 10:36am
Pres - if you are looking in, do you find that using the M15 chart rather than the M5 charts has reduced the fake signals this week?

Sean - thanks for your answer the other day, look forward to hearing about your 200 tick theory!
  • #1,162
  • Feb 3, 2011 10:36am Feb 3, 2011 10:36am
Quoting Delite
Yes, this week has been tough, but as has been mentioned, it is NFP week and choppiness ensues. The problem when you have a few tricky sessions is maintaining confidence in the strategy.

The strategy, in my opinion is excellent, its just this week has thrown a few curve balls - for instance on Monday, the trend in Asia was strong and continued so through London. There was no appetite for reversal.

On choppier days I have just lowered my tp to ensure I get in and out - simply to preserve sanity!

Bit annoyed because I missed the moves today,...
I know that you addressed Paulus but I will offer my response as well... I do not typically pattern trade after Monday of NFP week... I have but I find PA to unpredicatable during the best times to trade as it is full of high impact news releases that can quickly turn a nice looking set-up or trade into a loser.

And yes higher TF's will usually filter out some of the choppiness but NFP week is terribly unpredictable... I have not traded this method since Monday...
Today's zone = Tomorrow's opportunity!
  • #1,163
  • Feb 3, 2011 10:40am Feb 3, 2011 10:40am
Quoting pres78
I know that you addressed Paulus but I will offer my response as well... I do not typically pattern trade after Monday of NFP week... I have but I find PA to unpredicatable during the best times to trade as it is full of high impact news releases that can quickly turn a nice looking set-up or trade into a loser.

And yes higher TF's will usually filter out some of the choppiness but NFP week is terribly unpredictable... I have not traded this method since Monday...

Thank you, Pres, that makes me feel much better!

Do you trade at all for the rest of the week, or do you use other methods?
  • #1,164
  • Feb 3, 2011 11:57am Feb 3, 2011 11:57am
Quoting Delite
Thank you, Pres, that makes me feel much better!

Do you trade at all for the rest of the week, or do you use other methods?
I trade all week using another method and only take the lowest risk set-ups and trade smaller lots.
Today's zone = Tomorrow's opportunity!
  • #1,165
  • Feb 3, 2011 1:19pm Feb 3, 2011 1:19pm
Hi

Yes its been a tough week although Im up 10% on the week thats well short of my target

Today on EU Ive had a win 5% gain and looking for longs with a 1 in place
On GU Ive had Loss and a win 0% gain and long from 1.6151 but dont hold your breath !!

P
  • #1,166
  • Feb 4, 2011 4:53am Feb 4, 2011 4:53am
3 trades so far. 2 winners, 1 loser.

the winners, gbp/usd range 7: both were closed manually before TP, at first sign of hesitation, as i expect a rangy and bumpy NFP day.

the loser, eur/usd range 7: the entry candle was against my own rules of waiting for a flat bottom HA candle.

on live account my risk is 3%.
Attached Image (click to enlarge)
Click to Enlarge Name: g_u.png Size: 18 KB
Attached Image
  • #1,167
  • Feb 4, 2011 5:18am Feb 4, 2011 5:18am
I don't normally wait for break of 2 point but chatting with Mrs V to see if we'll make change where our entry and 2 point are close.

Stop above last swing high originally 6164, moved a little lower when price was around days open 6134.

Target 6125 hit and exited.
Attached Image (click to enlarge)
Click to Enlarge Name: 3.gif Size: 15 KB
  • #1,168
  • Feb 5, 2011 5:18am Feb 5, 2011 5:18am
Quoting dzero
Hi there!

Following this thread for a while, got some more skills to my trading.

So here wanted to post one nice setting with quick SL. As it was just before UK data was announced. As here is mostly nice TP examples wanted to ad some losing trade.

Thanks to all, who is shearing there experience!
It was not suppose to be a losing trade cus you should already be in 123 buy setup before it came back to test point 2 and rise back...if u trading 5min chart u should not demand for more pips cus every reversal u take will surely come back to ur entry point cus every tf must form 123 before trend continuation occur.
when i decide to scalp i use 15tf and dont take more than 10-15 pips on 2 pairs so that give me 20-30 pips daily i just need to wait for the setup.
MY OPINION NOT FINANCIAL ADVISE
  • #1,169
  • Feb 5, 2011 10:51am Feb 5, 2011 10:51am
Quoting donfriday
It was not suppose to be a losing trade cus you should already be in 123 buy setup before it came back to test point 2 and rise back...if u trading 5min chart u should not demand for more pips cus every reversal u take will surely come back to ur entry point cus every tf must form 123 before trend continuation occur.
when i decide to scalp i use 15tf and dont take more than 10-15 pips on 2 pairs so that give me 20-30 pips daily i just need to wait for the setup.
Very interesting! Do you swing trade or just scalp? If you swing trade how do you do that?
  • #1,170
  • Feb 7, 2011 4:13am Feb 7, 2011 4:13am
quick and easy trade, with a clean 123 formation. i'm using a very tight sl of 8-10 pips, because with my aggressive entries that's the max exposure i need. risk is 3% of equity, trade is closed as soon as i reach +3%.
Attached Image
  • #1,171
  • Edited 11:51am Feb 7, 2011 11:32am | Edited 11:51am
Been too busy at work to pull any charts so sorry for the late post...
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 13 KB
Today's zone = Tomorrow's opportunity!
  • #1,172
  • Feb 7, 2011 11:51am Feb 7, 2011 11:51am
Quoting pres78
Been too busy at work to pull any charts so so for the late post...

Pres - great trade. It was a lovely set up this morning.
  • #1,173
  • Feb 7, 2011 1:28pm Feb 7, 2011 1:28pm
Now in this one long... 50% retrace so I am only targeting 150% fib for TP.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 16 KB
Today's zone = Tomorrow's opportunity!
  • #1,174
  • Feb 7, 2011 1:30pm Feb 7, 2011 1:30pm
Quoting pres78
Now in this one long... 50% retrace so I am only targeting 150% fib for TP.

Pres, sorry to be dim, but could you explain the correlation of fib retrace to projected tp?

Thanks!
  • #1,175
  • Feb 7, 2011 1:39pm Feb 7, 2011 1:39pm
Quoting Delite
Pres, sorry to be dim, but could you explain the correlation of fib retrace to projected tp?

Thanks!
It's how I mainly trade the 123's. If I am trading on say a 15min time frame and point 1-2 is 60 pips... this means that if price has retraced to just shy of the 50% fib then it has moved 30 pips. If I am risking say 5% of my account on this trade then I would rather than price only has to travel 30 pips rather than 60 pips. It's a way that I reduce total travel required for the trade to hit my TP. Now if the entire point 1-2 is only 25-30 pips I will automatically use the full fib for my TP and SL. It's a way of sorts of scalling the trade to make the required travel as minimal as possible... The downside is that since my SL is also only at 50% then I would get stopped out sooner than those who always use point 1-2.

Take a look back at my posts and charts and you will see examples of how I trade 123's. This way works for me but I do not recommend that anyone else uses this set-up unless they have tested it and are comfortable with it... the same way that 5% per trade risked works well for Paulus but could be an account killer for someone who is not 100% comfortable with the system and this aggressive MM method.
Today's zone = Tomorrow's opportunity!
  • #1,176
  • Feb 7, 2011 2:12pm Feb 7, 2011 2:12pm
Quoting pres78
Now in this one long... 50% retrace so I am only targeting 150% fib for TP.
TP close to being hit so SL has been moved to BE since we are close to end of day.
Today's zone = Tomorrow's opportunity!
  • #1,177
  • Feb 8, 2011 3:25am Feb 8, 2011 3:25am
Pres - thank you for your reply.

Nice set up on GU this morning.
Attached Image (click to enlarge)
Click to Enlarge Name: 8febGU.JPG Size: 70 KB
  • #1,178
  • Feb 8, 2011 4:12am Feb 8, 2011 4:12am
Pending sell order in place...
Attached Image (click to enlarge)
Click to Enlarge Name: eu_m5.gif Size: 16 KB
  • #1,179
  • Feb 8, 2011 4:13am Feb 8, 2011 4:13am
Quoting Olarion1975
Pending sell order in place...
Me too!

ETA - now cancelled.
  • #1,180
  • Feb 8, 2011 4:32am Feb 8, 2011 4:32am
Quoting Delite
Me too!

ETA - now cancelled.
Mine is still valid...
Attached Image (click to enlarge)
Click to Enlarge Name: eu_m5_2.gif Size: 17 KB
5 traders viewing now