"Katana Trading Strategy"

All indication is that price will most likely continue lower... hopefully without hitting stop loss first...

As I type this the market reversing..

Not in this case as the next level was the xx00 level and it was too close to my entry, this would not be enough room to make a decent r:r trade.

I'm aiming for a minimum of 1.5 x risk on each setup.

I see.

Just got stopped out on my short, -9.

Hi M, which candle did you enter the break on ? I cant seem to figure it out from that chart you posted.

Cheers
Dan

The first candle that printed a red bar on the histogram.

was it (1) or (2) ?

The bar to the right of the one you marked at 2.

thanks

Hi M,
Took the same trade last night. I actually entered just a few minutes before you posted.
I am trading on IBFX.
As I reviewed the trade last night I see on "MY chart" that the 4rb 20 ema was not under the 60 ema.
But I was going with what appeared at the time the strength of the 8rb chart.
Also, after the fact I noticed I was trading into a solid round number!

But it was a good trade even though I was stopped out for a small loss.
I say good as I planned my trade and traded my plan. Stop and all.

On to the next.

On your chart the ema's appeared stacked, I believe that was the difference between platforms and futures vs spot? Did you post a 4 or 8 rb chart?

Thanks

Hi M
You might be aware I have been a fan of yours for some time, break a leg with this thread.

As much as people will want the template, as you and Dan have said its immaterial exactly what ma's you use, (they are obviously reasonable close given the angle they have on the charts) its probably immaterial what stoch you use (or if you use it at all).

Good common sense trend trading with retracements between psych levels. Love it. I will be lurking despite my current sabbatical.

A lot of people will benefit me thinks from following here.

I keep waiting for someone to say it but no one has yet... "The Emporer has no clothes"

Sorry guys... I have to confess I am not buying into it. I want to be respectful to Mr. Musashi but I have to say that I think he is teasing us and flaunting his profitability. He hints at what is in his charts but won't name the indicators much less the settings that would (maybe) go a long way toward helping some other struggling traders (like me) along. I know... he says he will not reveal the indicators and methodology because someone may develop an EA for it. But that confuses me because there can be only two outcomes from posting the charts but hiding the method. They are...
a) he thinks some folks will finally understand his method or
b) he thinks no one will understand it.

If the answer is a, then why wouldn't those people who finally understand it make an EA of it? Then his fear is realized.

If it is b, then why even post at all (other than just to brag about being profitable). Am I alone in being frustrated seeing something that looks like it might work but I cannot figure out which of the thousands of indicator-and-settings combinations is correct for profitability?

My bottom line is this Mr. Musashi ... why not just post what you are using (and give a hand up to us newbies) and to heck with what the robot-makers are doing since (according to most posters here) most EA's will likely fail anyway? And, if you think that the the EA-makers will siphon off bucket loads of Forex cash, then just make the EA yourself and put the massive profits in your own pocket?

And one more observation please... I think the most appreciated and revered posters in this terrific forum are the ones who post their good ideas along with what tools to use and how to use them.

Respectfully,

Richard in Colorado

[quote=whoisthere48;5234867]I keep waiting for someone to say it but no one has yet... "The Emporer has no clothes"

Sorry guys... I have to confess I am not buying into it. I want to be respectful to Mr. Musashi but I have to say that I think he is teasing us and flaunting his profitability. He hints at what is in his charts but won't name the indicators much less the settings that would (maybe) go a long way toward helping some other struggling traders (like me) along. I know... he says he will not reveal the indicators and methodology because someone may develop an EA for it. But that confuses me because there can be only two outcomes from posting the charts but hiding the method. They are...
a) he thinks some folks will finally understand his method or
b) he thinks no one will understand it...


When you are a bit further down the road you may appreciate that even if he provided the indy's and templates that wouldn't mean you could trade Musashi's system profitably.

There are countless other threads with everything posted and open source - so why are you still struggling? - it is probably because you haven't yet combined all the best bits of what you have found to work and developed a system you believe in and works for you.

This is one of the few systems threads that doesn't provide everything - but rather asks the reader to do some work for themselves. Lets face it - you have read countless threads and are still struggling - so why would these indy's and template suddenly make you profitable - They Won't.

Its all good...work harder...the clothes are in front of your face.

always there are the detracters but they give nothing except critisizm
but what can one expect these days

one sujestion there is a free program called market browser where one can see trend price over any time you want therefore you can see price clearly and the slope of the trend

i find it a big help in my trading but please dont let these useless coments from others distract you from giving us as im certain they are just as i can see the normal non contributer distractions one gets on this forum

thank you for your ideas

You need to find your own way mate, that is the only way.
Most traders fail because they think they can adapt somebody else way.
What works for M does not necessary work for you, you are not M.
M is showing his way. Did he help me? Yes I think so and I am looking into it,
investing many hours looking at possibilities. I was already trading in a similar way and I am adapting some of his ideas into my way.
I hope it help.

You do not need to use his indicators.
The idea is to trade with the Mov Avg's using Range Bars.
How you do it and what indicators you use is up to you.

Here is a Snap shot of my chart and a trade I took earlier today.
I actually entered late, if I had been paying closer attention I should have entered at the little Red arrow.

Before you ask, the little Gray circles with arrows and red lines are not indicators.
They are created when you drag a closed trade from your trade history into the chart. (MT4)
Yes, it was a real trade from my live account.
10 pips on the first 2 units and 20 pips on the last.
Just missed getting stopped out!!!!

Hi there Richard,

No offence taken my friend,

If you know anything about creating EA's, then you'll know one thing, they can be optimised, the inputs for each indicator can be optimised, as such it matters not which setting is used for those that create EA's, they will just optimise them based on the criteria used in the strategy.

I have no financial interest in this thread, or this methodology.

If you have a good read, you'll discover 3 things, trend filter based on moving averages and stochastics.

1. Entries based on pull backs against the trend using stochastics for entry conditions.

2. Exits based on using price levels in the market, previous levels of daily lows or daily highs, previous support resistance levels in the market, trailing the stop in the direction of the trade and average daily range levels (some of which I have not described)

3. Trading can take years to even come close to being profitable, the reason for this is vairied depending on the individual. Controlling emotions is the number one reason, the need to be proven right is the number one contributer towards this and not accepting the fact that you are wrong and not wanting to lose money. Once you identify this trait in you then you'll lose consistently no matter what.

Stochastic Indicators using histogram to represent the levels, I think I have hinted at in previous posts, above or below certain levels price is going up or going down. If you know anything at all about indicators you'll know that mostly they just follow price, and at the end of the day if you look at price you'll eventually be able to determine where price will react without even looking at indicators (note this will happen with time).

Stochastic indicator is one of the best for a couple of reasons, used in a sideways trending market it can be used to trade the top and bottom of the range, and used in a trending market it can be used to trade the pull backs and continuations. Also one thing to note is that congestion periods, or ranging periods is typically bound by round numbers. No it wont be bound by the round numbers to the pip, price will shoot past and stop and reverse and then there's times when it will shoot right past and head to the next round number.

It's really difficult to make money in a ranging market, I know, I have tried. Making money in a trending market is really easy. Trying to stay out of the market when it is ranging, that is the bit that is not so easy.

Pirces bouncing around above and below moving averages is a sign that prices are trending sideways, prices bouncing off of an area close the moving averages when they are all spread out and all pointing in the one direction is a sign that prices are trending up or down.

Using the stochastic indicator helps with identifying probable areas where the retracements back to the moving averages is likely to stop and then continue, using price levels will also help identify those areas where price will likely stop and continue, and in a trending scenario, this is around previous support, resistance level and xx00, xx25x, xx50 and xx75 levels.

If you want to develop an EA based on this method then go right ahead, I'm all for it. If you want to learn how to trade the market then an EA will not teach you this.

If you think an EA will make you rich long term, then I'm afraid you'll most likely be dissapointed. If you think an EA will make you rich by selling one, then you are probably right.

You are the only one who can make you profitable in this or any other market.

If someone finds this thread helpful then great. If not, then you are welcome to look elsewhere. Criticism is expected.

Thanks Mr. Musashi. I did not mean to imply you had any financial interest in starting the thread. I am glad that some have spoken to say you have helped them. That's great. I have no reason to doubt them.

Your recent explanation is welcomed as it has shed some light on your method. Thank you!

And for you guys who have gotten your panties up in a bunch by my comments and questions... I am not a negative person. I was only speaking (and asking) from my current point of view (as a newbie to this stuff). If people can become profitable by ANY means, I am all for it.

Good Day and Trade On!

Richard

Last couple of trading days have been difficult to trade, even for discretionary trading, this time of year it's expected.

Yes I agree, yesterday I made 2 trades with this method risking 15 pip per trade during LO: -9 and -7. (trailing stop used). Not bad for a losing day.

Good trading my friend, can clearly see the 1.2.3 pattern evident on the chart.