My own developed benkyalate system

Here is one more example of my contingency plan if a trade changes direction on me just after I get into profit. I use semafores. Yes, the dreaded semafore! And before I get a lot of "hater-ation" mail, let me repeat - "I use semafores". That doesnt mean you have to.

Why do I use semafores? I use them as my caution light. They tell me something is "about" to change. That is all I use them for: not for entries, not for exits. They will mess you up if your strategy depends of them for entries and exits.



This picture shows several entries that were qualifiable by my scalping partner. Not all of these qualify as a reverse trade so keep that in mind as you look at it and say "that is not the rule!"

In this picture, I use the Sacupay-Montana v2 as a bottom indy. (found in this thread) It uses a 0 line as a cross over into bull or bear territory.

As you can see, when it crosses over the 0 line (your confluence with what is happening above which is our third step in the rules) And you get entry signal with the SSL...you got a trade. The first trade to the left went well.

The second trade was a good entry and then 6 pips into the trade the #2 shows up (semafore retracement level). And then, the SSL crosses over. I AM OUT OF THE TRADE. I only had 6 pips profit. I could not withstand a retracement (because you never know what the market is going to do). I get out and wait for the very next qualified entry which so happens also to be marked by the #2. It was a choppy ride up (signified by the spikes to the bottom and top of the HAs). But, I would still come out a winner.

Now look at the last trade all the way to the right of the screen (green circle). About 9 pips into profit, the #2 shows up (red suare) AND it bounced off the inside line of the CoG (signifying to me that some accumulation may be due) and then the SSL cross over. I am out of the trade, no questions asked.

The little pips I would have gathered from those swings in this picture would be worth more than 60 pips!

I wouldnt be worried because I have safeguards in place for a trade gone wrong! In the picture above, with the contingency plan, you would not have lost any of the trades. You would have to sweat a little more...

Because of my contingency plan and my humbleness to take only a few pips if that is what the market gives me freely (or at a cost of 2 to 3 pips) I rarely lose a trade. The only time I lose is if I am not paying attention but my back plan and safety net is always my SL.

In these cases, the 0 line (or 50) line may or may not get crossed because it is only a retracement.....but come on ppl....think about it. You are only 5 or 6 pips into profit, your stoch has reached a top or bottom of a cycle and is about to turn around (just in case you dont use semafores). You are not sure if that cycle is going to take 5 or 10 pips from you but it is going to take....something

You can either safeguard your pips with a contingency plan (which I recommend if you trade a 1 min TF) or you can suck it up and hope the market doesnt hit your SL. It is up to you.

Duces!

Great template, excellent entries and exits. And an awesome contingency plan !!!
This thread is spirited up by you with your smart strategies and is a great way to trade COG complimented with SSL, Semaphores, S/Rs and Oscillators.

Kodus to your contributions! keenly following your posts...
Thanks a lot XStrom !

Best Regards,
Mony

I am honored Mony. Thanks for understanding.

You are a skilled teacher my friend. Thank you :-)

Hey Xstorm, glad to see you back posting. My preference is scalping as I can get in and out relatively quickly, and as you have demonstrated, still pull resonable pips. I really appreciate the ideas that you are discusing here. My greatest problem is getting in too quickly on a spike (i.e. in your method, that would be before the end of a extention outside of the CoG). I played with the CoG during Euro open yesterday and got 50 pips (about 6-7 trades). The confluence mentioned should hopefully be another layer to keep me on the right side of the swing. Please keep up the posts, I'm sure that there are many reading and profitting from them (hope that doesn't get you in trouble).

Cheers Macca.

I will share something with you that I shared with my new friend from Italy: I dont predict the market. I mimic the market. I don't care about the fundamentals of the euro, the aussie, or the dollar. I just do what they do. How can I go wrong?

I have been in forums and chat rooms where there is a lot of discussion on where the market is headed. If you are a swing trader and a position trader that stuff really matters. But for a day trader....do you really think so? Do you have to know where the market is headed for the day to make pips? I assure you, you do not. (Bring on the hate mail, I feel it comin') You just need to know where the market is headed now.

Some ppl jump out of the market when there is going to be news. Why? When trading the news, think of yourself as a warrior (as opposed to a tick). We go into DefCon 5! Code red= Stop Loss. Code orange = contingency plan. Code yellow = retracement. Code blue = all is well. No worries. We know what to do for each code. Right?

So...we stick to the rules, news or not. If you win.....lots of pips. If you loose only a few pips. It is worth the risk for me.

This morning, I was minding my own business, right....doing my usual (chatting and watching the market). I took my cue to enter the AU and the EJ. And minutes later, I am done for the day.



Just following the strategy with the AU produced the same results:



The market did not retreat into code orange or red but I was prepared for that with a contingency plan. Your contingency plan makes you a fearless warrior of pips. If you loose the battle, prepare for the next. That is all. If you take a small loss, you will live to fight another day.

Did I just speak in parables? If I did then, "he that hath ears, let him understand."

I would also you encourage you as a Day Trader (scalper or reverse trader), as you figure out your contingency plans, to build into your strategy a way to mimic the market. It will take stress off of your trading day.....not caring where the market goes is a big relief!

Dueces!

Thank you. That means a lot to me.

50 pips! That is great! I am glad to be of service, if indeed that was the case here. Thank you for the drop by!

Great thread XStorm, learning a lot from your posts. Here is analysis of XStorm's trades & the reason why I would/wouldn't take a trade.

Xstorm - please correct if I missed something or analyzed incorrectly.

EURJPY: 2 qualifying entries shown with red lines.

AUDUSD: Qualifying entry shown with red line.

EURUSD: No trade as TMA not broken.

Today was a great day to prove a point. You dont have to know where the market is headed for the day to trade the 1 min chart. One minute price action "snakes" its way to a daily goal most of the time. If the day ends up bullish, then I can almost guarantee the one minute will go bearish enough times for you to make pips in between.

I look at the 1 hour and 4 hour chart and I see a lot of wasted pips. How many pips could I have made in between those bearish and bullish moves?

Let us examine today's possible entries. And remember, we are using an "untrue" TMA which is a fancy way of saying it corrects itself. So what chart the looks like now, may not have looked that way a few hours ago. I am just pointing out the entries at that time. I took 3 out of 5 possible moves.

Here is the EJ (green line is entry point, red square is exit):


On this first entry, the TMA was pointed up. Price broke the TMA , found support on critical CoG level and we had confluence of the bottom indy. Price was not in any danger zones so it was a good trade worth about 20 pips.

The second trade was pretty good. After 4 pips profit, there was a retracement, I didnt see a semafore so I stayed in. Great thing I did. Pay off was a big 50+ pips.

The third trade I did not take because I was yapping here on FF. But let us look at it. Price broke the TMA, hit support on the CoG (not pictured to prove that its not essential to the trade with the CoG but it does provides great info). Confluence below. Price went over 20 pips before it hit resistance at NY open, 5/8 mml which also happened to be MS1. Then it crossed back over into bear territory temporarily but I did not see a qualified re-entry.

The forth trade was a beauty. Classic TMA continuance. Break of TMA but inside of the central bands of the CoG signifying the continuance of a trend. That ride was worth about 40 pips.

The last trade was a little weaker (its that time of day when the London folks take their marbles out of the sand box). Same rules applied. It rendered about 12 to 13 pips before fizzing out.

So you see....even if you didnt know where the market was headed today, you could still make over 150 pips in about 5 hours.

The one minute time frame is amazing and full of opportunity. No returning to swing trading for me!

Duces!

The instances depicted on the pictures above are absolutely on target! No critique needed here.

Here is the EJ with the CoG that I spoke of earlier




Tried to add it on to my last entry....it didnt work.

Wow...this is a chew you up and spit you out kind of morning on the 1 min TF. My goal for today was hard fought!

I wanted to mention today was how I am where I am so quickly. Some of my chat room buddies are shocked that I have been trading for a little over a year now and how advanced I have become so quickly.

Last year around September, I discovered this thread. I had just cut loose my mentor. He only knew how to swing trade and I found that I did not like swing trading. I read ALL of these pages and the pages to the Kevinator and THV. Yes, it is called sleep deprivation. I didn't know what the heck I was doing but something told me that those three threads were what I needed. (Isn't the subconscious mind amazing!)

While I understood this thread and THV, I still didnt get Kevinator. But I loved how they worked together to achieve their goal of 200 pips per day. I didnt understand the TMA until I read the Extreme TMA thread 3 months ago! But anyway to make a long story short, I devised a plan. I would continue to sit in front of my computer and stare at the market even if I wasnt sure what was happening. I was going to learn how to use my tools effectively. Since I had been a swing trader, i had difficulty trading MAs. I needed support and resistance.

What I learned, I placed in a trade plan until I felt it was at least 90% accurate and would give me at least a 50/50 chance of win loss. Provided that my wins were always greater than my loss, I would be successful.

I discovered there were thousands of ways to be profitable in this business and practically anything goes. You just have to be great at it! So I stopped listening to "experts" telling me what I could and could not do! My Trade Plan is only 2 pages. It is a compilation of all that I know of my tools and how to use them. It even includes any scenario that can happen when I enter a trade and my contingency plan to get myself out of a bad situation.

So the key to my success? I learned (and am still learning) everything about my tools. I made a trade plan around what I knew. And to calm my fear of the market, I found a tool that I could trust but still had a contingency plan.

Take what you know, (or someone else's strategy like i did), figure out the weak spots. Find a tool to compensate. Make your trade plan. Make a scenario (only 3 things can happen once you just get in the market - it can go your way, it can retrace after a few pips or it can reverse) Make sure your contingency plan covers the last two scenarios.



Here is mine. I cannot upload it because of certain agreements but you are free to look at it to come up with your own trade plan. It is my bible of trading. Yes...that sacred because it is at the epitome of my livelihood and future plans.

It is worth the time to create. You will find that as you create it your knowledge grows and solidifies.Once it is created and tested for accuracy and your wins are much larger than your losses - then watch out world! You will become the Master of your strategy because you are prepared for everything! Once you are Master of your strategy you are Master of all that you want.

Isnt that why you became a trader?

Hopes this helps! Duces!

Canforex.....

I know the strategy that you are using since we used to share the same chat room. There are two weak spots: your risk/reward ratio as recommended and your bottom indie which is designed to gain you only 2 pips at a time. With a stop loss of 20 pips it may become a struggle. Find a way to compensate for that bottom indicator (change the settings, add another, or switch it out) and you will be well on your way...without losing the money you paid for that strategy!

I am wishing you the best. You know how to contact me.

XStorm

I appreciate your efforts in reserecting this system. I traded this system a while back ago when it was new (until i got distracted chasing other systems), this system with good MM can be very lucrative.

Someone wanted me to explain what I meant by hard fought...so instead of just posting in my chat room, I will post here for everyone.

Today called for me to pull out all the ways to trade a TMA/Cog. I will show you the KISS template so you can clearly see what was done.



The first two trades where trend continuation and I jumped in off the kiss off the band.

The third trade was a classic reverse trade. But about 20 pips into the trade it gave me #2. I used my contingency plan. I just went on and got out at the cross of my indy back into bull territory.

The forth trade was also a classic reverse trade and did well.

the fifth trade was a counter trend trade as the TMA was still headed down at that time but the candles had come so far out of the band that I figured that I could ride it back up at least to the core of the TMA.

These 5 swings were worth approximately: 23, 16, 17,31, 19 pips

Duces!

Hi FX Pipin,

I agree with you whole heartedly. The system doesnt need any help from me as it was great before I perched here. When you get a chance, it would be great to hear some of your insights.

I have placed my system here and how I make use of the CoG on the 1 minute. Paulus was also great at that. I think I have watched his or Noskool's videos on youtube. Those guys were excellent teachers.

Thanks for dropping by!

XStorm,

We can definitively collaborate but i must say, My trading style and approach is much different than yours when it comes to using the COG. I trade the 4H TF, my preference because repaint is not as severe, and i rather fish for whales with small risk and fewer trades.

To help myself and everyone else viewing this thread i will try to post some of my trades as they come.

I just started retesting this strategy again last month. I was pretty happy to find this thread again after some searching.

Good luck!

MB's COG was designed for H4 and higher anyway. Problem is you don't get too many trades but those you get are good ones. But it sure is boring if you are sitting in front of a computer all day waiting for one of those trades. That's why I take my hat off to XStorm who has found a way to may it work on lower time frames like M1.

XStorm, I'd be interested to know your thoughts about position sizing, scalling in/out and money order management. I don't know if you have wandered over and seen Forexcubes threads but he has a very novel way of managing trades and losses with scalping. Personally, with my account size have seen the strength and weakness of some of these strategies from wins and losses.

Cheers Macca