X-Man's Super Simple System

Migmac:

You are referring to my posted chart on post 3063 on page 205 right? You asked me if I followed the rules for my trade. Well, looking at my chart there wasn't a pullback bar, in fact it was rather late as well if you look at the TDI, (that I completely ignore when trading as it is only "training wheels if you have read the thread far enough to find X-Man's posts on it. Just a reminder if you haven't PM me if you want details on that plese). What this trade does show is this: a possible trend turnaround with enought distance to cover spread and a small profit if it doesn't break through the resistance quickly and to my liking. I might also add that you have to trade the 15 Minute charts a little differently than the 1H and that is also the case, but price action is the king in standard S3 and the 15M version that a few follow (master the 1H method first before trying this one if interested). Price was also not "lollygagging on up" but climbing rapidly suggesting momentum. Lastly, I made sure that I was in a break even deal before resistance was hit thus not losing out if it did bounce. On another note: you can't just sit and wait for the perfect entry candle with the perfect pullback. They don't happen often enough. I think that even if this was on the hourly chart it would prove to be a good trade considering a directionless market that was up and down all night. Thank you for your criticism, it keeps me on my toes and made me re-examine the trade. Everyone should welcome this type of question as it leads to improvement. If anyone has any questions, improvements, or even polite barbs, I welcome them as my teachers. On another note here is a song that I think every trader should see. Hope you like it.

I agree with several of the other responders to your question......I usually will only move the SL after the trade has moved 30 or more pips into the positive. Sometimes, I will just leave it at 50 pips. Only on one or two occasions has PA ever come back from + 30 to take out the SL. If it does, I know I have made a poor decision or missed something in entering the trade in the first place. If I enter a trade and it does not go 25 or 30 pips in my direction and then reverses, I will usually close it out manually at -20 to -30 pips and not let it hit the SL. Trades need "room to breathe". I know two traders who never move their SL. They either hit the TP's or the SL and they are both profitable traders.

Three trades today.
The first one was taken long on a break of the Asian session high, but without a good signal from the TDI (also against the rules of my own trading plan) but I took a shot on news releases moving PA strongly up. Out at BreakEven on that trade.
The second trade was taken short by the rules and a cross of the TDI....good for the +50 TP.
The third trade was taken long, also per the rules and a cross of the TDI. Closed it manually for +40 at the end of the London session with volume slowing down......could have hit the +50 if I had stuck it out.
Patience is the name of the game when monitoring the H1 trades. Still happy with +90 for the day.

HAHA
My favourite song
That what happens to traders when they trade too much.
Im guessing that entire band are traders LOL.
What next?

Good Morning X-Man,
Regarding the band's leading singer named Ed Seykota, he was one of the greatest traders of his time. Check out Market Wizards book... I think you might find it interesting..

Guys here are few tips from the wizard Ed seykota

Ed Seykota: Everybody Gets What They Want
1. EE from MIT>> developed the first large-scale commercial computerized trend-following trading system. I used an exponential averaging method because it was easier to calculate and computational errors tended to disappear over time.
2. My style is basically trend following, with some special pattern recognition and money management algorithms. The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system. In order of importance to me are: a. the long-term trends, b. the current chart pattern, and c. picking a good spot to buy or sell.
Market Wizards Study Notes by Zhipeng Yan
3. Over time, I have become more mechanical, since (1) I have become more trusting of trend trading, and (2) my mechanical programs have factored in more and more “tricks of the trade.”
4. The profitability of trading systems seems to move in cycles.
5. Fundamentals that you read about are typically useless as the market has already discounted the price, and I call them “funny-mentals.” However, if you catch on early, before others believe, then you might have valuable “surprise-a-mentals”
6. If I were buying, my point would be above the market. I try to identify a point at which I expect the market momentum to be strong in the direction of the trade, so as to reduce my probable risk. I don’t try to pick a bottom or top.
7. If I am bullish, I neither buy on a reaction, nor wait for strength; I am already in. I turn bullish at the instant my buy stop is hit, and stay bullish until my sell stop is hit. Being bullish and not being long is illogical.
8. Dramatic trade: pride is a great banana peel, as are hope, fear, and greed. My biggest slip-ups occurred shortly after I got emotionally involved with positions.
9. Elements of good trading: cutting losses, cutting losses and cutting losses. I set protective stops at the same time I enter a trade. I intend to risk below 5% on a trade, allowing for poor executions.
10. On success: my success comes from my love of the markets. I am not a casual trader. It is my life. I have a passion for trading. It is not merely a hobby or even a career choice for me. There is no question that this is what I am supposed to do with my life.
11. Trading rules: a. cut losses; b. ride winners; c. keep bets small; d. follow the rules without question; e. know when to break the rules.
12. Advice for an average trader: he should find a superior trader to do his trading for him, and then go find something he really loves to do.
13. The markets are the same now as they were five to ten years ago because they keep changing – just like they did then. Trading becomes more difficult because it is harder to move large positions without moving the market. It becomes easier because you have more access to competent people to support you.
14. Good traders have a special talent for trading just as good musicians and good athletes have talents for their fields. Great traders are ones who are absorbed the talent. They don’t have the talent – the talent has them.
15. My personal life is integrated with my trading life.
16. – (Jack) I notice there is no quote machine on your desk. – Having a quote machine is like having a slot machine on your desk – you end up feeding it all day long. I get my price data after the close each day.
17. – (Jack) How would you rate the relative importance between psychology and market analysis to successful trading? – Psychology motivates the quality of analysis and puts it to use. Psychology is the driver and analysis is the road map. The winning traders have usually been winning at whatever field they are in for years.
18. On traits to identify the winning trader personality: a. he loves to trade; and b. he loves to win.
19. On success: I don’t judge success. I celebrate it. I think success has to do with finding and following one’s calling regardless of financial gain.

20. EVERYBODY GETS WHAT THEY WANT OUT OF THE MARKET.

Ed seykota was a successful trader because he stuck to his trading rules.
He also traded with the trend. Thats a key to last long in this game.

Well guys im going to be a trading wizard of my time.

Im going to be LEGENDARY.

London about to open....what direction are we taking today?

Hi XMan...nice trade system.

For EU...if blue candle appear at the end of this hour... will you take long entry?

Entered on the EUR. Grateful any rights or wrongs.

You went long on the back of such strong resistance?

I did not take any trade yet.
The Long not looking too good. We will wait and see what happens

Even after the + news of German Business climate, Euro only jumped for a fraction of second and dropped back down.

Thats why i dont pay much attention to the news. The News to me is there just to cause a hype with traders. I trade what i see and not what i hear.
Even Ed seykota has mentioned that he is more of a chartist than fundamental guy to which i agree

Thanks for the feed back. Canu tell me what you meant by the strong resistance. Do you mean the previos high a few hours before ?

Cheers

The highs are there from 23 January till now.

A few times it pinched through but came back each and every time (even after positive Eurozone news), so it's pretty safe to assume there is strong resistance in the 1.3030-1.3050 area.

Edit: More precise, I spot the resistance at 1.3038

Well, we'll see where this goes. 15M chart looks good. But have been whipsawed out twice tryin' to go long, but that's the way I trade. With any luck we'll have a winner here and I can call it a night and wait till USA open...

There was a lovely entry point on the 15m chart with that long upper wick.
Lazylobster did you get in on that trade? i know you trade on the 15m charts

HAHA we posted both at the same time. Speak of the devil

The 4 hour.

I know we have to wait but IF a candle finishes above the prev highs (see arrow on chart) would it be a correct entry ?

Sorry for the continual questions