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Price Action Trading with Indicators! The Freebie System

  • #3,961
  • Jul 21, 2011 1:24am Jul 21, 2011 1:24am
Quoting Whistlepips
Thanks Udine for your reply. I think that with these larger stops now figured out I just might be able to do that . Im finding that a bit problematic, because im still relatively new at forex. Been around alltogether about 8 months now and learning much every day. This is the second trading system I have used systematically for a longer period of time. I think about 3 to 4 months now.

I use trading journal and like it very much, but my entry rules are still a bit open so I have to deal with them somehow in order to lock them. Im almost there....
Whistlepips,

first of all a day learned nothing is a day lost So yes i keep learning everyday. I see the forex trading as a business and I am the CEO of ME INC. Life as a "businessowner" is not easy. It is like any business, you will not be successful from the day you start. So take your time as the markets will be there tomorrow as well.

I have tweaked my system and this month I am demo-ing this until the end of the month. then I will analyze the results.

My tradelog is made in excel. The information in my tradelog/journal consists of: date-trade nr for the day-time-pair-long or short-lotsize- entryprice-SL price-TP price-exit time- exit price-profit/loss in pips-profit/loss in $- max. drawdown-daily target-difference towards daily target-notes- screenprint entry-screenprint exit.

Good luck.

Udine
Sleep less, live fast, as it aint gonna last
  • #3,962
  • Jul 21, 2011 1:37am Jul 21, 2011 1:37am
Here is a trade i took right before the close of US session yesterday...Looking pretty good right now...Moved my SL to above enter so now even if it reverses ...FREE TRADE! lol

Sorry havent been around much been busy trying to get a few things done.
Attached Image (click to enlarge)
Click to Enlarge Name: euro.gif Size: 39 KB
  • #3,963
  • Jul 21, 2011 1:50am Jul 21, 2011 1:50am
The true eye opener for me came when I read the following two posts with regards to system analysis:

I dont remember who wrote the first one, but the second one comes from the james16 thread.

I. System analysis:

1. is it easy to trade in terms of complex analysis and technical indicators? 2. is the system consistent for an average of 200 pips/month (one pair = 50 pips/week = 10 pips/day)?
3. can I fit it into my risk profile?
4. are there periods of uncomfortable drawdowns?
5. long term, intraday or scalping?

For me all the factors are important but I want a system that is consistent. It is better to be consistantly average, than ocasionally brilliant.
I will rather pick an average 200 pips/month system than one that will produce 800 pips in one month and lose 1000 in the next.
If you have a consitent system you can gradually increase your risk (within limits) because you have a positive expectancy.

The question that you must ask yourself is can I trade +200 pips a month using this system ... or 50 pips a week? not across multiple pairs .. one pair (comes down to 10 pips a day per pair).

Mark your charts and decide for yourself whether it is possible. Then make a decision whether you want at least try it or prove to yourself that it works OR it does not work.

You dont need 54.287.434 pips per month to be successful as a trader. You dont need to be the next Soros. You need to make 200 pips consitently per month.

Here from the James16 Group: 100 pips per month:

Here is an example of why trading smarkt can be the door to success. At the start of the month you decide on one or a set of pairs you want to trade. Your goals is 100 pips for each pair for the month.
The first and all trades you take, whether it happen on the first of the month or the twentieth will be the best set up your system can give within reason. No fudging, no borderline trades for that pair until you reach 100 pips.

Now this is going to help you in several ways:
1. if your system is not viable you are going to know it very quickly
2. if it is viable you are going to build confidence and train yourself not to shotgun trades
3. if your system is any good at all you will have at least 4 or 5 winners form the first set of trades

You trade like this until you have the 100 pips per pair.

For 20 trading days a month, not counting sundays, that is 5 pips per pair. That is not hard if you take only your best set ups regardless of how rare during the month they may be. Once over 100 pips you cannot drop below that 100 you have banked.

Lets look at the numbers:
With a 10.000 account risking 3 percent per trade with a 30 pip stop on your trades will allow you 10 mini lots.
Trading 6 pairs at 100 pips each for the month will grow your account to 16.000.
Now why not try 50 pips or even 25 pips. 25 equates into a 1.500 profit.
The main point is this: you can grow your account quickly and at the same time trade in a conservative manner. The best of both worlds !!

These posts changed my perspective completely for trying to get the most pips possible. Now I just try to get my 10 pips per pair and get the money out of the market. my FIFO system: FAST IN FAST OUT.

regards,

Udine
Sleep less, live fast, as it aint gonna last
  • #3,964
  • Jul 21, 2011 1:56am Jul 21, 2011 1:56am
FYI, in the meantime while I was preparing the previous post, I also got my pips. so daily target (+5 %) reached again and done for the day.

Wish you all green pips!!!

Udine
Sleep less, live fast, as it aint gonna last
  • #3,965
  • Edited 2:27am Jul 21, 2011 2:02am | Edited 2:27am
Quoting Udine
The true eye opener for me came when I read the following two posts with regards to system analysis:

I dont remember who wrote the first one, but the second one comes from the james16 thread.

I. System analysis:

1. is it easy to trade in terms of complex analysis and technical indicators? 2. is the system consistent for an average of 200 pips/month (one pair = 50 pips/week = 10 pips/day)?
3. can I fit it into my risk profile?
4. are there periods of uncomfortable drawdowns?
5. long term, intraday or scalping?

For me all the factors are important...
There are some very wise words in that thread...You should try and let your winners run. Once you have at 1:1 Risk:Reward or whatever you picked as your TP area close out 1/4 or 1/2 of your lots which ever you want then move to stoploss BE or keep it the same...If you were risking 5% on the one trade you will still make 1.2%-2.5% if moved to BE or it would be a free trade if it reversed and hit the orginal SL and you closed half your lots if you closed 1/4 lots you would have cut your risk for a losing trade, but if it keeps going you are just going to bank more profits on a RISK FREE TRADE! Not all like to let there winners run but if you do the profits are even more! Dont get crazy and go for a risk:reward of 1:20 ...keep it simple...1:3 or 1:4 MAX your gains ..Oh yea listen to the WORDS of the song...dang it im falling in love with it cause it is so catchy lmao
http://www.youtube.com/watch?v=LiE1VgWdcQM
  • #3,966
  • Jul 21, 2011 2:04am Jul 21, 2011 2:04am
Quoting Dredding82
Here is a trade i took right before the close of US session yesterday...Looking pretty good right now...Moved my SL to above enter so now even if it reverses ...FREE TRADE! lol

Sorry havent been around much been busy trying to get a few things done.

As always: well done

Udine
Sleep less, live fast, as it aint gonna last
  • #3,967
  • Jul 21, 2011 2:13am Jul 21, 2011 2:13am
Quoting Dredding82
There are some very wise words in that thread...You should try and let your winners run. Once you have at 1:1 Risk:Reward or whatever you picked as your TP area close out 1/4 or 1/2 of your lots which ever you want then move to stoploss BE or keep it the same...If you were risking 5% on the one trade you will still make 1.2%-2.5% if moved to BE or it would be a free trade if it reversed and hit the orginal SL and you closed half your lots, but if it keeps going you are just going to bank more profits on a RISK FREE TRADE! Not all like to let there...

For anyone interested:

here a the lyrics:


The Whipsaw Song
2008 by Ed Seykota

to the tune of "The Crawdad Song,"
a traditional bluegrass tune in the key of A

Chorus:

A
You get a whip and I get a saw, honey

E7
You get a whip and I get a saw, babe

A A7
You get a whip and I get a saw

D7
One good trend pays for ‘em all.

A E7 A
Honey, trader, ba-by mine.


Banjo (Ride Your Winners):
What do we do when we catch a trend, honey ... etc.
We ride that trend right to the end.

Mandolin (Cut Your Losses):
What do we do when we show a loss, honey ... etc.
We give that dag-gone loss a toss.

Fiddle (Manage Your Risk):
How do we know when our risk is right, honey ... etc.
We make a lot of money and we sleep at night.

Guitar (Use Stops):
What do we do when the price breaks through, honey ... etc.
Our stops are in so there’s nothing to do.

Bass (Stick to the System):
What do we do when a draw down comes, honey
What do we do when it gets real big, babe
What do we do when it's even bigger ...
We stick to the plan and pull the trigger.

Banjo (File the News):
What do we do with a hot news flash, honey ... etc.
We stash that flash right in the trash.

The music and the lyrics can be downloaded for free from Ed's website:
http://www.seykota.com/tribe/essentials/downloads.htm

regards
Sleep less, live fast, as it aint gonna last
  • #3,968
  • Jul 21, 2011 2:27am Jul 21, 2011 2:27am
Quoting Udine
Whistlepips,

first of all a day learned nothing is a day lost So yes i keep learning everyday. I see the forex trading as a business and I am the CEO of ME INC. Life as a "businessowner" is not easy. It is like any business, you will not be successful from the day you start. So take your time as the markets will be there tomorrow as well.

I have tweaked my system and this month I am demo-ing this until the end of the month. then I will analyze the results.

My tradelog is made in excel. The information in my tradelog/journal consists of:...
Thanks Udine.
  • #3,969
  • Jul 21, 2011 2:29am Jul 21, 2011 2:29am
Quoting Whistlepips
Thanks Udine.

no problem.

Udine
Sleep less, live fast, as it aint gonna last
  • #3,970
  • Jul 21, 2011 2:33am Jul 21, 2011 2:33am
Gleneagles wrote the first one (http://www.forexfactory.com/showthread.php?p=3021605#post3021605), always had the impression he was one of the best traders out there

Quoting Udine
I dont remember who wrote the first one......
  • #3,971
  • Jul 21, 2011 3:37am Jul 21, 2011 3:37am
Quoting PeterE
Gleneagles wrote the first one (http://www.forexfactory.com/showthread.php?p=3021605#post3021605), always had the impression he was one of the best traders out there

Thanks PeterE !!!

I can tell you that I have read every post of Gleneagles !!!
I might be wrong, but I think he is a hell of a trader, just look at his Dustbin trades.. very very impressive !!!

Udine.
Sleep less, live fast, as it aint gonna last
  • #3,972
  • Jul 21, 2011 3:52am Jul 21, 2011 3:52am
These figures of speech can sometimes be a bit problematic to fully understand the actual meanings behind them. Could some native speaker help with translating these into plain old....

Mandolin (Cut Your Losses):
What do we do when we show a loss, honey ... etc.
We give that dag-gone loss a toss.

Banjo (File the News):
What do we do with a hot news flash, honey ... etc.
We stash that flash right in the trash.
  • #3,973
  • Jul 21, 2011 4:00am Jul 21, 2011 4:00am
Quoting Whistlepips
These figures of speech can sometimes be a bit problematic to fully understand the actual meanings behind them. Could some native speaker help with translating these into plain old....

Mandolin (Cut Your Losses):
What do we do when we show a loss, honey ... etc.
We give that dag-gone loss a toss.

Banjo (File the News):
[font=Courier New]What do we do with a [u]hot...

Whistlepips,

it comes down to these essentials:
Attached Image
Sleep less, live fast, as it aint gonna last
  • #3,974
  • Jul 21, 2011 4:29am Jul 21, 2011 4:29am
Quoting Udine
Whistlepips,

it comes down to these essentials:
Thanks. Those I got from the song also. I just thought if there is some deeper wisdom behind those lyrics (in eg. show a loss and loss & toss). Its sometimes difiicult to tell if youre not a native speeker.
  • #3,975
  • Jul 21, 2011 4:44am Jul 21, 2011 4:44am
Neither am I.

Udine
Sleep less, live fast, as it aint gonna last
  • #3,976
  • Jul 21, 2011 4:56am Jul 21, 2011 4:56am
Quoting Udine
Neither am I.

Udine
  • #3,977
  • Jul 21, 2011 9:10am Jul 21, 2011 9:10am
Here are 3 live H1 trades took on GbpUsd,EurUsd & AudUsd.....EurUsd & AudUsd were taken using the Freebie PRO and the GbpUsd was taken using the Freebie Newbie System.

Today was a KILLER day...banked 100 pips or more on each trade and letting them run since i have already closed some lots once they hit the ADR.
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  • #3,978
  • Jul 21, 2011 9:18am Jul 21, 2011 9:18am
Quoting Dredding82
Here are 3 live H1 trades took on GbpUsd,EurUsd & AudUsd.....EurUsd & AudUsd were taken using the Freebie PRO and the GbpUsd was taken using the Freebie Newbie System.

Today was a KILLER day...banked 100 pips or more on each trade and letting them run since i have already closed some lots once they hit the ADR.
300+ pips! I got to quit sleeping, lol! I was expecting something to happen, just not this big a move, across the board. You snooze you lose!
Awesome trading Dredd!
Damn The Torpedoes, Full Speed Ahead!
  • #3,979
  • Jul 21, 2011 9:23am Jul 21, 2011 9:23am
No man is free who is not a master of himself. -P.M.-
  • #3,980
  • Jul 21, 2011 9:25am Jul 21, 2011 9:25am
Quoting DizzleFX
300+ pips! I got to quit sleeping, lol! I was expecting something to happen, just not this big a move, across the board. You snooze you lose!
Awesome trading Dredd!
Thanks DizzleFX.... Well its more like 400+ and the best part is that is only for those 3 trades so add my other trades and you can guess the $$$ being made.
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