Simple Fibonacci Trading | Page 22 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

I need an EA for my simple "Mother Candle Fibonacci System" 63 replies

Trading is this Simple? Finally Explained simple and clearly! 46 replies

What is the Differences between Fibonacci Fan and Fibonacci Arcs 15 replies

Gp's simple daily fibonacci-based system 120 replies

Simple Fibonacci with candlesticks... 2 replies

Attachments: Simple Fibonacci Trading
Exit Attachments

Simple Fibonacci Trading

  • #421
  • Apr 10, 2012 11:43am Apr 10, 2012 11:43am
Quoting kor
Hi hugh, from what i understand i may have applied it to a retracement of a move, is that what you are trying to single out ? how can i determine a trending and ranging move, i remember reading that the 100sma could miss trade, sry if i missed out on anything..

thanks in advance hope i am not flooding ur thread with theses question...
No problem for the questions. On the example you gave you were using two sets of fibs to make your analysis and that's overthinking things. You should concentrate on just finding something that's trending well and trade the retracements in that.
  • #422
  • Apr 10, 2012 12:09pm Apr 10, 2012 12:09pm
hi hugh,

I am very grateful that you introduced such a simple and wonderful system. and on top of that you gave the EA as well......m trying to understand how to use the EA but i couldnt understand where to change the 'buy' and 'sell' label as you said in post#1....

Kindly explain me a little about it......i would be grateful to you a lot!!!!!!!!!!!!
  • #423
  • Apr 10, 2012 12:41pm Apr 10, 2012 12:41pm
Quoting k4u
hi hugh,

I am very grateful that you introduced such a simple and wonderful system. and on top of that you gave the EA as well......m trying to understand how to use the EA but i couldnt understand where to change the 'buy' and 'sell' label as you said in post#1....

Kindly explain me a little about it......i would be grateful to you a lot!!!!!!!!!!!!
The credit goes to FerruFX for the ea.

When you draw a fibonacci study you get an input box to confirm after you have drawn it. Look under the "common" tab and there is a field called "name". Change the name to either BUY or SELL.

Glad you like the system, I hope you make it profitable for you.
  • #424
  • Apr 10, 2012 1:00pm Apr 10, 2012 1:00pm
Quoting Hugh Briss
It's a probability thing. If the price retraces to the 50% fib and then trades back above the 38.2% level then you have a good probability of it reaching the swing high point. The risk with these trades is that you are risking two trades with high probability on the first one. The move to the 38.2 extension level is slightly lower probability so when you take a loss you take a loss on two trades but the high probability is only to the swing high. I've been testing it for a while and I see it as profitable because of the strike rate for the first...
Do you trail on either position?
And yes, scaling out is risky, works against you...cause you always reach your best target with half, but when you get stopped, you get two full punches in the nose...Scaling out is good for the fear BUT,in the long run always works against your bottom line...
I trade fibo corrections by hand, including time fibos...trail a stop by hand and feel, BE asap...let it run...TP either 1,272 or 1,618...those trades that reach your goal with a full load make the difference...itīs all about an edge...
  • #425
  • Apr 10, 2012 1:14pm Apr 10, 2012 1:14pm
Quoting cuchuflito
Do you trail on either position?
And yes, scaling out is risky, works against you...cause you always reach your best target with half, but when you get stopped, you get two full punches in the nose...Scaling out is good for the fear BUT,in the long run always works against your bottom line...
I trade fibo corrections by hand, including time fibos...trail a stop by hand and feel, BE asap...let it run...TP either 1,272 or 1,618...those trades that reach your goal with a full load make the difference...itīs all about an edge...
Yes, when the first half of the trade is closed just before 0.0% (the swing high/low for the fib) the second half trails from breakeven.

So what you are saying is that scaling out in the long run is not a good idea? I can see what you mean. I have thought about just taking full profit on both lots at 0.0% because that is much higher probability than the trade reaching the 38.2 extension. What is your opinion on that?
  • #426
  • Apr 10, 2012 1:43pm Apr 10, 2012 1:43pm
Quoting Hugh Briss
Yes, when the first half of the trade is closed just before 0.0% (the swing high/low for the fib) the second half trails from breakeven.

So what you are saying is that scaling out in the long run is not a good idea? I can see what you mean. I have thought about just taking full profit on both lots at 0.0% because that is much higher probability than the trade reaching the 38.2 extension. What is your opinion on that?
but you can close up to 80%even 85-90 and allow the rest to run to final level set remember breakeven as been set just my own thought
  • #427
  • Apr 10, 2012 2:16pm Apr 10, 2012 2:16pm
Quoting Tiwa
but you can close up to 80%even 85-90 and allow the rest to run to final level set remember breakeven as been set just my own thought
Yes, with the ea you can close whatever percentage you like. One problem with that though is that your position size must be divisible by the percent you want to close by.

I'm just putting ideas out there about the best way to take profit on these trades. I'm very comfortable with the entry system but maybe the exits could be improved? It's open to discussion.
  • #428
  • Apr 10, 2012 3:04pm Apr 10, 2012 3:04pm
Quoting Hugh Briss
Yes, with the ea you can close whatever percentage you like. One problem with that though is that your position size must be divisible by the percent you want to close by.

I'm just putting ideas out there about the best way to take profit on these trades. I'm very comfortable with the entry system but maybe the exits could be improved? It's open to discussion.
Typical fib extensions are 1,272 and 1,618...1.382 is not ...you can look at any chart and see how markets react strongly to those...either cause people use it, either cause they are really magicall, or theyre just programmed in most robots...
Closing all a 0% gives you less than 1 /1 (am I wrong here?)..
Itīs a hard question with no answer...but scaling out will definitely impact your bottom line (negatively)...
The Golden Rule in trading: keep your winners big, and loosers small...scaling out makes sure the opposite happens:your loosers are always big and your winners are reduced by whatever you decide...
The biggest impact on performance though is neither entry, exit, or so called MM...the bigest impact is position sizing, meaning your dollar risk to stop loss...that should always be as exact as possible and always the same till you change it because you made more money last month or so (or lost)...thatīs why I donīt trade lots, with OANDA you trade units...(Iīm not a fan of any broker though!!).
And I trade manually cause every trade is different...trailing an auto stop has some advantages too....
These questions are as old as trading itself...probably the best it to find the shoe that best fits your own personality...
apologize for the long answer...
  • #429
  • Apr 10, 2012 4:13pm Apr 10, 2012 4:13pm
Quoting cuchuflito
Typical fib extensions are 1,272 and 1,618...1.382 is not ...you can look at any chart and see how markets react strongly to those...either cause people use it, either cause they are really magicall, or theyre just programmed in most robots...
Closing all a 0% gives you less than 1 /1 (am I wrong here?)..
Itīs a hard question with no answer...but scaling out will definitely impact your bottom line (negatively)...
The Golden Rule in trading: keep your winners big, and loosers small...scaling out makes sure the opposite happens:your loosers are always...
No worries but personally I see 38.2% extension respected more than any other. Closing the full trade at 0.0% would normally give a little over 1:1 r/r. Closing at 38.2% but trailing the stop from the beginning may be a better solution? As you say it's a tough decision but I am starting to see what you mean about scaling out. I'll have to give it some thought.

That said, audusd has hit tp1 so some profit taken and the rest trailing.
  • #430
  • Apr 10, 2012 4:14pm Apr 10, 2012 4:14pm
Gold didn't work out but I reentered as there is a trendline it hit. It only needed another small stop loss for quite a big upside gain so went with it.
  • #431
  • Apr 10, 2012 4:19pm Apr 10, 2012 4:19pm
one thing that i do not understand about this method is: how come "we" draw the fibbo upside-down? or am i just to drunk right now. i always drew them the other way around so that i could visualize the 161.8 level on my chart.

does the EA compensate for this, where i to draw it my way?

and thx for an excellent thread!
  • #432
  • Apr 10, 2012 4:22pm Apr 10, 2012 4:22pm
Quoting evilmeatball
one thing that i do not understand about this method is: how come "we" draw the fibbo upside-down? or am i just to drunk right now. i always drew them the other way around so that i could visualize the 161.8 level on my chart.

does the EA compensate for this, where i to draw it my way?

and thx for an excellent thread!
It seems logical to me that you start the fib at the bottom of the move and end it at the top in an uptrend. That way it will reach the 38.2% fib level before it reaches the 61.8% level. Maybe I'm just not drunk enough?
  • #433
  • Apr 10, 2012 4:28pm Apr 10, 2012 4:28pm
Quoting Hugh Briss
It seems logical to me that you start the fib at the bottom of the move and end it at the top in an uptrend. That way it will reach the 38.2% fib level before it reaches the 61.8% level. Maybe I'm just not drunk enough?
yes i understand you perfectly. however if i draw the fibb like that on my mt4, then i see an extended 161.8 level on the bottom side of the chart. if it was a long trade. but what i am wondering is why it is down there since the goal is on the top side of the chart in a long trade.
  • #434
  • Apr 10, 2012 4:42pm Apr 10, 2012 4:42pm
Quoting evilmeatball
yes i understand you perfectly. however if i draw the fibb like that on my mt4, then i see an extended 161.8 level on the bottom side of the chart. if it was a long trade. but what i am wondering is why it is down there since the goal is on the top side of the chart in a long trade.
That's because it's 1.618 as opposed to 0.618. -0.618 would be the extension.
  • #435
  • Apr 10, 2012 4:43pm Apr 10, 2012 4:43pm
i see. that is very nice.

does the EA compensate though? where i to draw it my way?
  • #436
  • Apr 10, 2012 7:27pm Apr 10, 2012 7:27pm
Quoting Hugh Briss
It doesn't draw them straight away but I have noticed that it will enter the trade once the 38.2% level is breached. This is a point I have wondered about myself. Normally I have the fibs in place right from when the retrace starts but sometimes I don't and have wondered the same. I wonder if FerruFX can clarify this for us?
Yes it will still kick in if its not to close to the 38
  • #437
  • Apr 10, 2012 7:37pm Apr 10, 2012 7:37pm
CAD took tp1 and tp2
AU tp1 and still running rest.

Also to the scaling ? if your hit rate is high scaling out will never have your account in the negative. Lots of trades can take you out at BE at the point where you would have tp1 but never reach a final target. Never hurts to take some off. IMOP
Attached Image (click to enlarge)
Click to Enlarge Name: au.gif Size: 26 KB
  • #438
  • Apr 10, 2012 7:45pm Apr 10, 2012 7:45pm
AU daily closed the other half of my AU I had running should get a bounce here will see what happens. Pending order in place.
Attached Image (click to enlarge)
Click to Enlarge Name: au.gif Size: 27 KB
  • #439
  • Apr 10, 2012 10:05pm Apr 10, 2012 10:05pm
Quoting Hugh Briss
It doesn't draw them straight away but I have noticed that it will enter the trade once the 38.2% level is breached. This is a point I have wondered about myself. Normally I have the fibs in place right from when the retrace starts but sometimes I don't and have wondered the same. I wonder if FerruFX can clarify this for us?
The EA doesn't look back. It must be on with the Fibo at the time of the retrace level touch/cross.
MT4/MT5 EAs/Indicators/Alerts coder
  • #440
  • Apr 11, 2012 12:15am Apr 11, 2012 12:15am
Quoting turboguru
CAD took tp1 and tp2
AU tp1 and still running rest.

Also to the scaling ? if your hit rate is high scaling out will never have your account in the negative. Lots of trades can take you out at BE at the point where you would have tp1 but never reach a final target. Never hurts to take some off. IMOP
You could be right, if you've got high probability of hitting tp1 then you're not taking too many full losses anyway. The times that you hit tp1 and then go on to hit tp2 will easily cover the odd full loss. Tp1 is usually more than 1:1 anyway.
2 traders viewing now