5-min PASS (Price Action Scalper System)

As that would be classed as a re-entry (because the emas were already down) draw a trendline from 10.25 gmt to 11.50 I went in when it went 2 pips below the candle that closed below it at 13.05.

I will post some a bit later but as I'm trading at the moment I don't like to divert too much.

oops, i dont understand this part. no worries, once you're done with your trading, appreciate if u can show me the diagram. no hurry, take ur time.

I've made notes on your chart, hopefully you can understand it I couldn't seem to find a way to draw the trendline but you will get the idea if you do it on your own chart.

Personally, I wouldn't 'trade' that situation for ANYthing!! lol

Sorry I should also have said if you're going to do that, its preferable that price has made a lower high (fractal) which it does at 12.45 thats not always the case, but safest. All the while price is making higher highs and higher lows thats an uptrend and you need it to get back to being the start of a downtrend again to be safest. You will miss some chances but the ones you do take will be safer.

how to gauge trends from higher time frames?

just by looking for 6EMA > 12EMA > 48 EMA on both 15MIN chat and Hourly chart ?

Yes, that is exactly it.
For Long trades, you need to have EMA6> EMA12> EMA48
For Short trades, you need to have EMA6<EMA12<EMA48

PurePrice

Hope to be with you without PC problems the coming week.

Trying to get everything going again during the weekend.

Read about your "bad" trades; happens to all of us, buddy.
Happens when you take a bit to much hay on your fork,

Have a relaxing weekend.

Hi Freddy,

PC problems again ???? You are having too much sun in Mexico, that is the problem

I certainly hope you can join us next week, as I will be staging a comeback from this disasterous week I just had here ... and thank for the encouraging words ... hope to see you next week here, have a great weekend

Well, I did have a bad week of trading this past week. My 10% gain per week went astray, and I manged to lose money instead of making money this week. ..

The grand total for this week is ....

drum rolls .................

loss of 1.5% I went from $559 to $552

This was not due to the system, but it was due to me (more to come on this in the next post).

if you are looking for updates of this challange

Week 1 = +7.5% ($520 to $559)
Week 2 = -1.5 % ($559 to $551)

Overall monthly (for the month of March) = +6 % ($520 to $551)

As I indicated in my previous post, I can not really blame the system for my losses, as I did not allow the system to really work for me. You know how the saying goes, you can give the same exact system to two traders, one trader will experience profits and one will experience losses using the same system. This can be attributed to many factor of course, but from my exerience I can tell you what I attribute my losses to. I am not considering the 1.5 % to be a huge loss and dwelling on it. If you check my performance (using myfxbook link) below you will note that I was up to 15% tota profit at the start of the week and could have easily hit my 20% for the month, but had a few "bad" trades that really turn the tables on me. That is really what I want to discuss hre as that is the real issue.

The two major issue I had trading this past week was distraction and lack of time. I think that is the root cause for those bad trades. Of course there were subsequent trades that were really bad, but those were caused by the original issue of distraction.

In my case distraction comes in two ways

1- Having other people around while I am trading. As I mentioned previously I work 9 to 5:30 EST. So, I can only trade during work hours.
This translates into having my boss or colleagues distracting me from trading while I am at work, which really sucks. If I have an hour at home where I try to trade, it is normally just before NY open and that proved to be very bad idea for my trades. I am also usually trying to get my daughter to school and try to "force trade" just becuase I can squeeze in a few minutes where my Boss at work can't walk on me trading I really have "myfxbook.com" to thank for that, as their stats are just great, and they quickly opened my eyes to the hours where I win most my trades, and when I lose most trades.

The fix: DO NOT TRADE DURING JUST BEFORE NY OPEN, and do not trade just because I have a few moments free. Will have to hide better from my boss and colleagues, and my family at home so they can't distract me LOL ... I need to have a clear mind, with the right mindset with no distractions whatsoever.

2- If I have a few moments at work when it is quiet, I am distracted (not focused) by the many pairs that I go through deciding on the pair to trade. Looking for the best opportunity to trade obviously takes time and you should watch the screen for a few minutes and be aware of Price Action before taking the trade. This PA watching is very difficult when I only have a few minutes here and there throughout the day.

The fix: I know this is gonna break some hearts here , but I am going to only watch three pairs at most. GBPUSD, EURCHF, and EURUSD. This should help me concentrate and keep track of PA much easier thanwathing 8 to 10 pairs. This is where other traders can be most helpful by posting the pairs they are looking at and what setups are oming up so that others can get ready to trade them including me of course

As a result of the above I have made bad decision taking the trades that I did. This would be OK if it was just a PASS setup that ended up hitting SL, because that is part of the system and always expected, since this is not the holy grail. I DO EXPECT losss with this system every now and then just like with every other system. However, what I ended up doing was not taking care of my money management correctly because of lack of time and concentration I rally wanted to get into a trade and out quickly while i was able to watch the screen. Of course to do that, I needed to increase my lot size so 10 pips would give me 3%, instead of my normal 10 pips = 1 %, This proved to be a bad idea and the trade of course turned against me, and I lost alot more than what I normally would if I had the time and concentration to make three trades instead of 1. Well, that is when emotions took over and I felt bad for the loss (which no one should ever do as a professional trader), it wasnot the loss that really made me feel bad, it was the way I lost I guess. So, to get back at the market, I "revenge traded" and lost yet another big lot trade to easily double the losses and pretty much lose all my gains of the previous week.

If you are following this system, please give us feedback on your trades, whether good or bad. I am especially interested in traders trading the London session as I think this system kicks ass during those active London hours

Hi ohammond, good morning to you from Singapore!
thanks for drawing out on the chart, i cant tell u how much i appreciate.

ok, back to the chart, focusing the area which i drawn the box. do you see the 1st down fractal (leftmost of the red box)? shouldnt the trade setup be, to set the sell stop 2 PIPs below this fractal if price action were to go south? if it went up, we'll have to wait for the 3emas to agree to each other before we can proceed to Long this trade?

Yes thats right, although treating it as a re-entry you would already have been in it as I pointed out.

The only problem I would have with taking the trade there would be its close proximity to the low of earlier, which doesn't give much room at all for collecting pips because a previous low is very often tested before going the opposite way, so personally I would pass on that one even if price had gone below the fractal and would either look at another currency for a better setup or wait to see if it broke the low of earlier properly first. Ideally you would have been in the sell much earlier as soon as possible after the emas crossed, and if not in time for that then wait to see what happens, as it was it turned and there was an extremely good buy instead. Just my take on it, others will probably see it differently.

Hi ohammond, what do you when u say, [close proximity to the low of earlier]?

Usually I wouldn't go into a trade unless I saw there is a clear space for collecting some pips, so if its very close to a previous low/high or strong resistance/support I wait until it has cleared it before going in. Looking at the chart from this morning, if you had set your sell stop 2 pips below the fractal you pointed out, and taking the spread into account, there are only around 4 pips left before it hits the low. Now it might go through it, and it might bounce off it and go back the other way, I like to know there is a reasonable probability before I take a trade. Taken higher where it broke the trendline there is at least enough room (probably) to set your stop to breakeven if need be, with the fractal you pointed out there isn't.

i refer to the red box again. easier to visualise with diagrams.
starting from the left-most fractal (down). please correct me if i'm wrong. this trade did not materialise because it went up instead of going down.

Yes it did, what I was referring to was if it did go 2 pips below that fractal.

It went up instead and you would have put a trade in when the ema's had lined up again the other way and had gone through the fractal.