SECRET Trading System

Hi guys and welcome to the Secret Trading System.

Are you here because your curiosity was stirred by the title?
Have you tried every system under the sun and still not making $$$
Do you join threads where everyone is supposedly rolling in cash except it eludes you?
Have you been back to threads and found that there is no one around anymore even though at their peak some had hundreds of pages?

Why is that? Do you want to know the SECRET?

Well guess what? There is no SECRET LOL

Most of those threads you have been too have been an illusion of wealth kept going by gamblers who report on their run of wins and remain silent when they lose. Or as you see with many threads...when everyone just goes looking for the next big thing.

to be continued...

Cant wait to hear this...........

Trading is a business! That's the secret. It requires hard work. It requires you have a plan and goals and stick to your plan. When you do that you are half way to being successful.

The next thing you need is a system that you like. That fits your personality. That you enjoy and find easy to trade and to stick to it's rules. You can either use an existing system or make your own.

Once you find a system you need to back test it and work out what is your stop loss, take profit, amount of lots per trade and then work out how many pips you want per day, per week per month.

And finally how much you will need in your account to make those pips the amount of $$$ you want or need.

If there is a secret to trading then that is it.

to be continued..

So why are so many people doing from system to system???

Because in a lot of cases, because they don't do their homework. They don't run their trading like a business. They can't be bothered. Forex is a casino and they want the slot machine that pays the most now and when it doesnt they go find another machine.

Someone yells out "hey this machine is paying out big time and everyone runs over to share in the loot only to find they loose thier money again and go off looking for the next big thing.

Well next big thing is in your head - literally! You need to find a system that wins slightly more than it loses and then go for it.

to be continued...

I use an old method that has been around since the start of time and exists in all markets, on all charts, gold, silver, pork bellies, forex etc

It's called the 123 system and I like it because the stop and limits are roughly the same, apart from spread. BUT if you go to a higher time frame spread becomes less and less compared to the amount of pips you get back. And in my experience it wins slightly more than it loses.

I will show you that in real times posts.

In the mean time lets get started. I will show you my first chart using HA candles. But you can use any old candles if you want. Now let me go get a chart for you

to be continued...

I believe that you should be able to know why you entered a trade and why you exited it. Why you made money or why you lost.

The biggest problem I see when reading other threads is gambling mentality where people pluck reasons out of thin air to enter, exit. To use as an excuse for why they lost or won money.

There are no excuses. Opinions are useless. The only thing that counts are the rules. You either stuck to them or you didn't.

The rules for the 123 pattern are simple and as follows (for a long)...

1 is the lowest recent low in a down trend (see chart)
2 is the most recent high after the number 1
3 is the lowest low that did not exceed the low of number 1
2 is the high that is broken and trigger our trade

Limit is the amount of pips from 1 to 2 projected into the future
Stop is below number 1 or number 3 based on your back test


Notes:

-a conservative limit would be the amount of pips from 2 to 3 projected into the future
- an aggressive stop would be under the number 3 but I would avoid putting it there if the number 3 is much higher than the number 1. The number 1 is the be all and end all of stops. If that is breached - close the trade!

That chart by the way I predicted in real time on a nother forum. Those pips are BANKED baby!

I trade these on hourly charts. That way the spread becomes insignificant. The stress is zero. And you can better plan your trades. I will post my next trade here on this thread and will continue to do so. Feel free to ask questions

This is not my system? This isn't even a system. It's a strategy that I use in my system and you can use in yours. It's not a magic wand that will make you rich it's a tool you can use in your business to become rich over time. But that would depend on you. Not me!

Your system. Not mine. How you trade this. What time frame? How many pips? Per day? Per week? Per month?

It's your business. If you drain your account then it's your fault. Did you back test this? If not then why not? If you did back test then how many trades a day will you do? How many pips do you need/want? What balance will you need/want? How many lots per trade?

These are questions you need to answer. Not me. I have my own system which suits me If you create your own system you may just stop jumping from one system to another and be one of the very few people who make it trading.

That's the secret if there is one!

Without a trading plan? Well you are just one of the gamblers here going from system to system and will continue to do so .

Happy Trading!

Hi

Is there a maximum number of bars between '1' and '2' or '2' and '3' beyond which you would not conside the trade valid? ie if more than 5 bars - no trade.

Cheers

GG

Hi. A 123 can be as little as 3 bars or much more. I prefer to have less bars in my set up. But the best way to find out is go back in time and move forward one bar at a time (if you're using metatrader us the F12 key)

If you look at the chart I posted you can see that you can count 16 bars from the number 1 to see a bigger 123. That to me looks messy and I was actually in that trade but just closed for 30 pips

How many trades per day/week are you taking??

anyone spot this setup on the GBPUSD ? Now we need the number 2 low to be broken

I take one trade a day and demo trade after that if I am bored

What is the secret system? The secret is not to say! I now say what's the use? Not really

Profit target is 80 pips if the number 2 is low is taken out. Which to some folks might be $80 to someone else it might be $20,000 depends on your account size and how many lots you are trading

do you trigger at close of the bar or as soon as it breaks 2?

As soon as it breaks. You can set up a limit order but I find them messy. You can forget about them and come back and find you are in a trade. But as soon as the 2 is breached we are go!

The 123 set-up you are preaching is not the same as Joe Ross's Ross Hook method. You would need to count a 123 then enter on the next hook after a pull-back. By doing so you minimise false trend breakouts.