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Genesis Matrix Trading

  • #1,501
  • Aug 1, 2012 5:59am Aug 1, 2012 5:59am
hello rj and all,

Just placed this short trade on AU USD, did any other person take the trade, is there any reason why one would not take that trade.

Placed the trade cos of the following reason

 

  1. PA bouncing of resistance the second time

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  • #1,502
  • Aug 1, 2012 5:59am Aug 1, 2012 5:59am
Quoting IgorD
3 still in uptrend & u take short?
not what olivia and rj say about basic PA!!!
I waited until EU and EJ made lower highs, didn't take AU because it didn't make a lower high before the signal.
  • #1,503
  • Aug 1, 2012 6:13am Aug 1, 2012 6:13am
Genesis is applicable on all instruments (forex, indices, commodities, treasuries...) so here is a quick running commentary on today's Dax: it's an awful chart with many potential bad entries but I'm a great believer that avoiding potential bad trades is as important (if not more) as getting into the good ones.

1) open at 07.00 London time - I never take the first signal - no entry
2) short - only 9 points away from yesterday's DP (the magenta line on the left) that had been good support, that's not enough + M15 stox (yellow) rising - no entry
3) long - M5 closed on the DP, no guarantee that it will go much further - no entry (it ended up showing you +18)
4) short - after some work around the DP we get a signal with a Close below the DP and all other Genesis stuff was ok too (stox, trendline broken...); SL above recent high (-28), TP: the red line (+35) & S1 (+45) area - it only made +35 and i got +26 out of that trade.
5) long - M5 closed 1 point below DP, again, no guarantee that it will break it - no entry
6) short - M15 stox rising now - no entry
7) long - Closed 4 points below DP - no entry (same as 5)
8) short - same setup as 4 but better R/R ratio, SL (-18) TP: again the red line (+31) & S1 area (+41)....

......SL has been moved to B/E, TP still the same.

Please feel free to comment/ask if anything doesn't make sense
Oli


Edit: some days, the pivots positions can be a great help in not entering trades and some days they can be a great help to enter (after a bounce or a rejection) or to use them as TPs
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  • #1,504
  • Aug 1, 2012 6:21am Aug 1, 2012 6:21am
Quoting pipsdoctor
hello rj and all,

Just placed this short trade on AU USD, did any other person take the trade, is there any reason why one would not take that trade.

Placed the trade cos of the following reason

 

  1. PA bouncing of resistance the second time

looks good. just put a trailing stop coz there's news in 55 mins and that's the half of NFP. it can whipsaw before you even meet your pivotal target. remember AU is very bullish.
  • #1,505
  • Aug 1, 2012 6:22am Aug 1, 2012 6:22am
A Hidden Bearish Divergence exists on EU Daily chart. Something to store away in the back of your mind...........
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Doing what you like is Freedom. Liking what you do is Happiness.
  • #1,506
  • Aug 1, 2012 6:29am Aug 1, 2012 6:29am
Quoting realjumper
A Hidden Bearish Divergence exists on EU Daily chart. Something to store away in the back of your mind...........
...and the previous bullish divergence (yellow lines) worked quite well too...
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  • #1,507
  • Aug 1, 2012 6:36am Aug 1, 2012 6:36am
Quoting olivierforex
...and the previous bullish divergence (yellow lines) worked quite well too...

Indeed
Doing what you like is Freedom. Liking what you do is Happiness.
  • #1,508
  • Aug 1, 2012 6:38am Aug 1, 2012 6:38am
So far today i just made +10pips on one trade break the other even for 20pips target if it makes it fine,if it doesnt it will hit BE
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  • #1,509
  • Aug 1, 2012 6:39am Aug 1, 2012 6:39am
Quoting pipsdoctor
hello rj and all,

Just placed this short trade on AU USD, did any other person take the trade, is there any reason why one would not take that trade.

Placed the trade cos of the following reason

 

  1. PA bouncing of resistance the second time

I took that as well, double top and didn't manage to close back above yesterdays high closed back below R1 so it was a good trade. The only one also not surrounded by pivots, but as Yelena says trail it because you won't want to get stuck at news time.
  • #1,510
  • Aug 1, 2012 6:41am Aug 1, 2012 6:41am
Quoting Jack Herer
RJ,

I don't think I ever questioned about this before, as it is not exactly related to the system...

but do you use a fixed lot size regardless of your stop loss size?

I am reaserching adaptive positioning, see videos #1 and #2 when you have some free time:

http://forextradelogs-calculator.s3....autostart=true

http://forextradelogs-calculator.s3....autostart=true

I...
Hi Jack.

I just played both videos. As far as i understand it they are talking about using % of your acc as the risk. They make it sound like it is something new and revolutionary that not many traders know about.
I think this is something almost all traders know. At least most of the experienced traders should know this in and out already. It is what you see many traders refer to as "The Two Percent Rule" when they talk about MM.

Or maybe i was not paying attention when playing the videos and missing something important?

Arctic4x

PS. Sorry i know this is off topic
  • #1,511
  • Aug 1, 2012 6:46am Aug 1, 2012 6:46am
Quoting Arctic4x
Hi Jack.

I just played both videos. As far as i understand it they are talking about using % of your acc as the risk. They make it sound like it is something new and revolutionary that not many traders know about.
I think this is something almost all traders know. At least most of the experienced traders should know this in and out already. It is what you see many traders refer to as "The Two Percent Rule" when they talk about MM.

Or maybe i was not paying attention when playing the videos and missing something important?

Arctic4x

PS....
MM should never be off topic
  • #1,512
  • Aug 1, 2012 6:53am Aug 1, 2012 6:53am
Quoting onojiwizard
So far today i just made +10pips on one trade break the other even for 20pips target if it makes it fine,if it doesnt it will hit BE
Lower highs and higher lows means its ranging, also surrounded by pivots, I would have waited for a higher probability trade.
  • #1,513
  • Aug 1, 2012 7:12am Aug 1, 2012 7:12am
Quoting Arctic4x
Hi Jack.

I just played both videos. As far as i understand it they are talking about using % of your acc as the risk. They make it sound like it is something new and revolutionary that not many traders know about.
I think this is something almost all traders know. At least most of the experienced traders should know this in and out already. It is what you see many traders refer to as "The Two Percent Rule" when they talk about MM.

Or maybe i was not paying attention when playing the videos and missing something important?

Arctic4x

PS....
Hey Arctic4x,

I know this isn't any big news for old traders, I'm just curious to see if any one here indeed follows this adaptative positioning and their results with this approach.

Yes, it utilizes fixed % risk. If you use 2%, 5% or whatever, it's up to you.

Since most times we are using a variable SL (swing high/low), that means we could optimize our profits according to the size of SL needed, since the total risk remais the same.

example:

10k account risk 2% per trade
risk = 200

if, for a certain trade you need 50 pip stoploss, your lot size would be 0.4 standard lots, or 4 mini lots. Pip value $4 on eur/usd

if the SL needed is 20 pips your lot size would now be 1 standard lot, or 10 mini lots. pip value $10 on eur/usd.

it seems clear that using fixed lot size with variable stop loss can hold your profits over time according to monte carlo simulation.

any thoughts?
  • #1,514
  • Aug 1, 2012 7:35am Aug 1, 2012 7:35am
Quoting onojiwizard
So far today i just made +10pips on one trade break the other even for 20pips target if it makes it fine,if it doesnt it will hit BE
Can you explain your reasons for the short trade you posted. I can't see it. Thanks
  • #1,515
  • Aug 1, 2012 7:51am Aug 1, 2012 7:51am
Quoting Jack Herer
10k account risk 2% per trade
risk = 200

if, for a certain trade you need 50 pip stoploss, your lot size would be 0.4 standard lots, or 4 mini lots. Pip value $4 on eur/usd

if the SL needed is 20 pips your lot size would now be 1 standard lot, or 10 mini lots. pip value $10 on eur/usd.
Yes that is the good old "Two Percent Rule".
The good thing about it is that it is very effective when it comes to the power of compounding profits.
But that is also the bad thing about it because if you run in to a longer period of big draw down it is harder to get back to the high of the equity. You get what is called "negative compounding". That is easier if you use fixed lot size for risk. You get back to break even faster and easier.

I will make a short example for one loosing trade and one winning trade. Just remember the more losers you have in a row and the deeper the DD gets, the harder it is to get back. To make a extreme example: If you loose 50% of your acc you have to make 100% profit to get back to break even.

Anyway the example:
For simplicity this is a R/R 1:1 system.
You risk 2% of your $1000 acc. That is $20. You loose so your acc is now $980
You win the next trade and now you make 2% profit.2% of 980. That is $19,6 so now your acc is only $999,6
If you used fixed lot size for both trades (example $20 risk every trade) you would be back at BE.

I am not sure if i explain this very well because English is not my language but anyway there are both advantage and disadvantage using the good old "Two Percent Rule"
I am not saying one thing is better or worst than the other but it is important to study MM so you know the differences.

Arctic4x
  • #1,516
  • Aug 1, 2012 7:51am Aug 1, 2012 7:51am
Quoting Patti
Can you explain your reasons for the short trade you posted. I can't see it. Thanks
He probably took it because the tape indicator he's using, is for the symphonie matrix system which repaints and was probably red at the time, the stsn tape is the one for genesis.
  • #1,517
  • Aug 1, 2012 7:59am Aug 1, 2012 7:59am
Quoting ohammond
He probably took it because the tape indicator he's using, is for the symphonie matrix system which repaints and was probably red at the time, the stsn tape is the one for genesis.
And the Cycle Identifier which is a notorious repainter.....
Doing what you like is Freedom. Liking what you do is Happiness.
  • #1,518
  • Aug 1, 2012 8:06am Aug 1, 2012 8:06am
Quoting realjumper
And the Cycle Identifier which is a notorious repainter.....
Right ! Perhaps the wrong thread to be posting in.
  • #1,519
  • Aug 1, 2012 8:19am Aug 1, 2012 8:19am
Quoting Patti
Can you explain your reasons for the short trade you posted. I can't see it. Thanks
Simply because
1. Stsi tape at the time i took the trade wasnt showing any signal
2. cycler indi which is an osciltor was over bought
3. And if u see from the chart below stsi tape later showed a short signal
4. And i held my trade for as long as cycler major does not botom, when it does i close one of my trade for 20pips and let the other to run or breakeven.
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  • #1,520
  • Aug 1, 2012 8:24am Aug 1, 2012 8:24am
Quoting Arctic4x
Yes that is the good old "Two Percent Rule".
The good thing about it is that it is very effective when it comes to the power of compounding profits.
But that is also the bad thing about it because if you run in to a longer period of big draw down it is harder to get back to the high of the equity. You get what is called "negative compounding". That is easier if you use fixed lot size for risk. You get back to break even faster and easier.

I will make a short example for one loosing trade and one winning trade. Just remember the more losers...
I understand what you are saying, but that's not exactly what I am trying to say.

The point is adjustable lot size in relation to the size of stop loss needed for each trade. The 2% risk (or whatever number you want) remains the same, always. Doesn't matter if the SL is 20 or 50 pips.

If you can enter a trade with a smaller SL, you can up your lot size, but still within your pre-determined risk profile.

example:

$10000 account, risk 2% per trade - fixed 50 pip stop loss
risk = $200
lot size = 0.4 standard lot ($200/50 pip SL=$4/pip)

now, just for sake of argument, imagine this trade yields 50 pips, so its 1:1

but, what if you could safely enter this trade with only a 20 pip SL?

if you kept your lot size the same (0.4 standard lot) your gains would still be $200, or 2%.

on the other hand, if you adjust your lot size in relation to your SL within your risk profile you would have:

SL = 20 pips
risk = still 2% ($200)

lot size = 1 standard lot ($10 pip)

if the trade yields 50 pips you would have now $500 in profits, instead of $200 using fixed lot size.

Both methods had the same total % risk. The variable was the size of SL needed
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