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  • #3,421
  • Mar 21, 2011 1:46pm Mar 21, 2011 1:46pm
makes sense thank you!
  • #3,422
  • Mar 22, 2011 12:25am Mar 22, 2011 12:25am
i found this for a trailing stop and think it might fit well with this system, just have to figure out what the "magicnumber" means and keep the numbers tight

http://www.forexfactory.com/showthread.php?t=236002
  • #3,423
  • Mar 23, 2011 3:31am Mar 23, 2011 3:31am
Quoting strada
Hi Aj1, your entry has to be part of your own trading strategy and what you're comfortable with.
My own strategy is based on a lot of data I collected in the early days and further complemented with experience.
I would say on any timeframe it's worth waiting for that improvement in price after the signal and it will vary depending on the TF being used. For 10 min somewhere between 2-4 pips would seem reasonable.
The signals can happen either way round, don't worry if the RSI and 5/12 don't both happen at the same time.
I've been on 1min for some...
Good Morning
Strada at the moment I am only taking on trades which make the RSI and 5/12 cross within three bars or less of the signal bar, is this something you recommend on the 10 min charts.
  • #3,424
  • Mar 23, 2011 3:43am Mar 23, 2011 3:43am
Hi again guys. The reason I abandoned this years ago is because the RSI would bounce around the middle line making it confusing when to take a trade. Has any one come up with any ideas how to deal with that?
  • #3,425
  • Mar 23, 2011 5:13am Mar 23, 2011 5:13am
Morning AJ, this is something I've found difficult to adopt a hard and fast rule for. At present if there is a gap of 4/5+ bars between the crossovers then I tend to be a bit more wary.
If during this period price levels have created a recent floor or ceiling or have created a channel (ie congestion) then I may look more at the breakout of the Hi/Lo of those levels rather than the closing price of a signal bar. Good example of this earlier today on EU just before 9am (UK). There were 4 signal bars in quite quick succession with RSI jumping around the 50 line, I entered after the 4th which was 11 or 12 bars after the original 5/12 cross and just below some of the previous lows.
rgds, strada.

Quoting Aj1
Good Morning
Strada at the moment I am only taking on trades which make the RSI and 5/12 cross within three bars or less of the signal bar, is this something you recommend on the 10 min charts.
  • #3,426
  • Mar 23, 2011 7:37am Mar 23, 2011 7:37am
And you entered on the close of the breakout bar?
Another problem that I am having is taking a full loss on my stops. I know from your prevous posts you say that you can avoid them, at the full amount, how? I think I am doing as you used to, 25-30 on cable and EUR. These are the only two pairs I am trading at the moment.]Morning AJ, this is something I've found difficult to adopt a hard and fast rule for. At present if there is a gap of 4/5+ bars between the crossovers then I tend to be a bit more wary.
If during this period price levels have created a recent floor or ceiling or have created a channel (ie congestion) then I may look more at the breakout of the Hi/Lo of those levels rather than the closing price of a signal bar. Good example of this earlier today on EU just before 9am (UK). There were 4 signal bars in quite quick succession with RSI jumping around the 50 line, I entered after the 4th which was 11 or 12 bars after the original 5/12 cross and just below some of the previous lows.
rgds, strada.[/quote]
  • #3,427
  • Mar 23, 2011 8:28am Mar 23, 2011 8:28am
I had some great success this morning with the basic 5/12 m15 and the MA cross over indicator posted a page back, just taking 10 pips at a time (something about "pigs get fat and hogs getting slaughtered")
  • #3,428
  • Mar 23, 2011 9:26am Mar 23, 2011 9:26am
Quoting Cmoss
I had some great success this morning with the basic 5/12 m15 and the MA cross over indicator posted a page back, just taking 10 pips at a time (something about "pigs get fat and hogs getting slaughtered")
Good stuff Cmoss!

The way these markets are jumping around the last few weeks I feel it's much safer trading these shorter TF's for quick profits rather than hanging on to maybe get whip-sawed out of the trade....
  • #3,429
  • Mar 23, 2011 10:06am Mar 23, 2011 10:06am
Quoting aarangio
Good stuff Cmoss!

The way these markets are jumping around the last few weeks I feel it's much safer trading these shorter TF's for quick profits rather than hanging on to maybe get whip-sawed out of the trade....
no worries i found out trailing stops arent aloud in the USA so ill just have to watch myself
  • #3,430
  • Mar 23, 2011 10:29am Mar 23, 2011 10:29am
Hi AJ, have made a comment in your post below in RED.
Losses at the full SL are to be expected unfortunately and as you say there are some things you can try to mitigate them.
If you enter a trade and say it goes 15 pips in your direction (on 10 min your tp1 would likely be 20-30 so you wouldn't have taken any profit) then you could consider reducing your original SL by this gain in pips of the trade; OR you could reduce your position by closing some of it at BE; OR you could close all of it at BE. As previously mentioned if I get a 5/12 REcross and price worsens by 2 pips then I close it.
Obviously any action you take like this comes with consequences, you may reduce/close your position prematurely only to watch it then take off and show great profits while you're sitting on your hands. However if you close a trade on a 5/12 recross and the trade then moves back in the direction of the original signal you will then get another 5/12 recross which you can consider using as long as RSI is on the right side.
One interesting point I discovered when I was collating data for the 1min was that if a trade went to +5/6 pips (bearing in mind tp1 is 7-10 then SL gets reset to BE) and I closed it at BE or for the spread ie -2/3pips then over a period I was considerably better off. So sometimes I use this especially in a ranging market.
I spent some time on 10 min when I first started with bago but sometimes my day wasn't long enough for the longer moves and so quite often had to cut profitable trades prematurely.
Bago like most good methods/systems has to be used with some consistency and decent periods for it to produce its full potential. No matter what the timeframe if you can only monitor a few price bars/candles at a time you will almost certainly lose. It never ceases to amaze me the number of people who trade the hourly or 4H but only have a couple of hours a day to trade. It stands to reason that most of the best opportunities will happen when they are asleep or at work etc. They must spend most of their chart time looking at what might have been, if only..........!
A lot of the time I was on 10 min I was also watching 5 min charts and soon realised that in a typical 10 hour period 5 mins would be better than 10m. Now I'm on 1 min and most days only trade for 2/3 hours. It's all relative!!!
hope this helps, strada.


Quoting Aj1
And you entered on the close of the breakout bar?
Not exactly, I entered on the break of the previous lows, some of which were bago signals.
Another problem that I am having is taking a full loss on my stops. I know from your prevous posts you say that you can avoid them, at the full amount, how? I think I am doing as you used to, 25-30 on cable and EUR. These are the only two pairs I am trading at the moment.]
  • #3,431
  • Mar 23, 2011 1:00pm Mar 23, 2011 1:00pm
I will certainly put this into practice straight away, I really do appreciate all this knowledge strada, I can not thank you enough.
One more thing when you start trading in the morning, once you have fired up your charts what do you look at. The long term trend, the overnight trend, the hourly. Do you still use the hourly S/R lines.
Many thanks Aj1
  • #3,432
  • Mar 23, 2011 1:04pm Mar 23, 2011 1:04pm
Hi ya..

Just wanted to point out a pair that works pretty good with this system you could say..
I'll let the charts explain themselves!

Cheers,
Adrian
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  • #3,433
  • Mar 23, 2011 1:18pm Mar 23, 2011 1:18pm
Hi aarangio
I have been looking at this pair recently, the spreads are nice and tight. I have been trading for the last three months or so, and have decided to go with how strada has set out, trading cable and EU. When I get a bit better I will be looking to trade this too.
regards Aj1
  • #3,434
  • Mar 23, 2011 1:43pm Mar 23, 2011 1:43pm
Quoting Aj1
Hi aarangio
I have been looking at this pair recently, the spreads are nice and tight. I have been trading for the last three months or so, and have decided to go with how strada has set out, trading cable and EU. When I get a bit better I will be looking to trade this too.
regards Aj1
Hi ya Aj1..

Yes, that's the beauty of this pair having the nice tight spreads also..

As you get use to this system you will realize you can use this system on just about any instrument around; for example I've used it on the Dow, FTSE, Gold, Oil and loads of other pairs.. not to mention you could use this with shares as well if you wanted....
But as always check out the charts and be wary of the pairs that whip-saw around alot and just avoid and go for something simpler and smoother.... also take into account if the spreads are tight on the shorter TF's due to short holds of positions as you seem to be already aware of

Cheers,
Adrian
  • #3,435
  • Mar 23, 2011 3:12pm Mar 23, 2011 3:12pm
Quoting Aj1
I will certainly put this into practice straight away, I really do appreciate all this knowledge strada, I can not thank you enough.
One more thing when you start trading in the morning, once you have fired up your charts what do you look at. The long term trend, the overnight trend, the hourly. Do you still use the hourly S/R lines.
Many thanks Aj1
I do have a look back to see what happened since the previous day and overnight and particularly if there has been any decent moves between 6 & 7am. Any big moves here might cause some congestion after 7am.
Trading 1 minute I'm not too interested in trends from higher tf's and at that time in the morning it's a new day when the Europeans and UK start trading, they will decide what course the markets take and mostly regardless of what has happened overnight.
I check to see how GU & EU have performed and decide which to trade for that morning.
And yes I keep S&R from hourly/daily on some of my charts.
rgds, strada.
  • #3,436
  • Mar 24, 2011 2:37am Mar 24, 2011 2:37am
Morning aarangio
I hope to add a few more instruments into my trading at some stage, but I am concentrating on GU and EU at the moment. I was having some good sucess at first, then kept taking hits on my stop loss at the max amount, which really hurts, especially when you are just starting out. I was going one step forward, and two back.
I am going to do as strada has suggests, hopefully this will help my trading.
How is your trading going, and what timeframes do you trade?
regards Aj1
  • #3,437
  • Mar 24, 2011 4:30am Mar 24, 2011 4:30am
Hi ya Aj1..

Quote
I hope to add a few more instruments into my trading at some stage, but I am concentrating on GU and EU at the moment.
Good pairs to start off with and best to stay focused on a couple till you get use to the system..
Quote
I was having some good sucess at first, then kept taking hits on my stop loss at the max amount, which really hurts, especially when you are just starting out. I was going one step forward, and two back.
Yes, we all go there and yes still happens to me at times..and it doesn't help at all when you start using shorter TF's as it does play havoc with your phsycology, it's something we have to get used to
Quote
I am going to do as strada has suggests, hopefully this will help my trading.
Listen to every thing Strada teaches you, you wont get a better mentor at this system than him!!.. I have learnt most everything from him on this system..also re-read all of his posts as near every thing he says has some gold nugget of info in there..
Quote
How is your trading going, and what timeframes do you trade?
It's going good, I wouldn't say fantastic but I am happy with where I'm at at the moment and improving daily..I trade the 1-5m TF's when I have time to watch the screen and also 1hr when I want to have a nice trade and not stress about it as I have other things to do..Don't know why but I never seemed to get used to using the TF's in between of 15m and 30m

Cheers,
Adrian
  • #3,438
  • Edited 6:25am Mar 24, 2011 5:06am | Edited 6:25am
Thanks for your input aarangio, and your right about strada he is a very good mentor, and I am putting everything he says into action.
good trading Aj1
  • #3,439
  • Mar 24, 2011 6:27am Mar 24, 2011 6:27am
aarangio can I ask are what stops are you using, and TP's are they same as Strada or have you yor own?
  • #3,440
  • Mar 24, 2011 6:32am Mar 24, 2011 6:32am
A nice 1hr TF trade
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