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Flying buddah pattern

  • #1
  • First Post: Edited Nov 15, 2012 9:35am Nov 14, 2012 10:04am | Edited Nov 15, 2012 9:35am
With exception to a few breakout trades/trend line trades, I have not been successful with any system other than the flying buddah system that I read about on a previous thread here. http://www.forexfactory.com/showthread.php?t=2555447
http://www.forexfactory.com/showthread.php?t=255537

While the flying buddah (fb) has about a 40% success rate according to those threads, I have found that with forex.com (or any other broker that closes at the same time), the success rate is far better but only on the Daily chart, and only on Sunday evenings.

In the next 2 charts (gj and eu), you can see that any candles completely below or above the 5ema tend to signal at least a small reversal in the next few hours or the next few days. Sometimes, this reversal is far larger than small, and can be worth 100+ pips. Generally the reversal is very large when the price is oversold/overbought at a historic resistance level.

I traded this system live for 2 months with a $1000 account, and I gained about 25% on the account by trading on a few different currencies. I got out of trading at the end of June because I purchased a new house and needed all of the cash I could get, but now I'm back and working on it again.

Now 25% is not significant, but I also did not let my profits run (too much of a rookie). I took 30-60 pips a trade instead of the 100 plus pips that could occur.

Anyways, I would like to have some feedback on whether or not this trading method is that well known or used that often. Any feedback on this would be great actually. So any thoughts/ideas on this are appreciated. I will post another chart with SL in the next post
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu14nov12.PNG Size: 49 KB
Click to Enlarge Name: gj14nov2012.PNG Size: 49 KB
  • #2
  • Nov 14, 2012 10:12am Nov 14, 2012 10:12am
here is the gbpaud chart demonstrating what I was talking about flying buddahs at major support or resistance. 670 pips and still running.

The stoploss for this would be just 20-50 pips above the top of that flying buddah, so one has a serious risk reward ratio...

Some traders have suggested stacking entries after seeing the initial signal. I don't know how I feel about that. I never did it myself, but then again, I am a rookie.
Attached Image (click to enlarge)
Click to Enlarge Name: ga14nov12.PNG Size: 50 KB
  • #3
  • Nov 14, 2012 10:21am Nov 14, 2012 10:21am
Most of these very simple price action/location strategies work well, but traders don't hold for the big rewards.

Finding 50% win rate with 2/1 R/R or more is fairly simple.
tradewith60
  • #4
  • Nov 14, 2012 10:27am Nov 14, 2012 10:27am
Quoting 60minuteman
Most of these very simple price action/location strategies work well, but traders don't hold for the big rewards.

Finding 50% win rate with 2/1 R/R or more is fairly simple.
So it's the psychology behind it (as in my case obviously). I get impatient and overtrade and then I cut my winners short and sometimes cut my loosers short before the set SL (they then reverse lol and go in my direction). The fact that I post positive returns at all is surprising... but I am learning I suppose...
  • #5
  • Nov 14, 2012 11:37am Nov 14, 2012 11:37am
Quoting dafox1
So it's the psychology behind it (as in my case obviously). I get impatient and overtrade and then I cut my winners short and sometimes cut my loosers short before the set SL (they then reverse lol and go in my direction). The fact that I post positive returns at all is surprising... but I am learning I suppose...
yes, exactly... try and experiment with ways of forcing you to stay in trades, record your results, if you can have the discipline then the rewards are good.

A close back over the ema etc... for example..

one other thing, if you really struggle, then trick your mind by using 2 lots, closing one at 1/1 and leaving the stops in place for the other, your mind will be satisfied with taking profits but you will remain in the trade risk free....

etc etc
tradewith60
  • #6
  • Nov 14, 2012 12:47pm Nov 14, 2012 12:47pm
Quoting 60minuteman
yes, exactly... try and experiment with ways of forcing you to stay in trades, record your results, if you can have the discipline then the rewards are good.

A close back over the ema etc... for example..

one other thing, if you really struggle, then trick your mind by using 2 lots, closing one at 1/1 and leaving the stops in place for the other, your mind will be satisfied with taking profits but you will remain in the trade risk free....

etc etc
Thanks for this advice. I'll use both of those things... the closing 1/2 the trade would help satisfy that feeling like I need to take profits and hopefully ease me into actual good trading practices.
  • #7
  • Nov 14, 2012 2:49pm Nov 14, 2012 2:49pm
I had a look at the flying buddah myself, I love price action signals...

It's an exhaustion pattern and works really well..

If you also know the right place to look for them , then you can print money..

If you just take all entries you can do well but you will really need some big winners to keep you consistent
tradewith60
  • #8
  • Nov 14, 2012 3:04pm Nov 14, 2012 3:04pm
Quoting 60minuteman
I had a look at the flying buddah myself, I love price action signals...

It's an exhaustion pattern and works really well..

If you also know the right place to look for them , then you can print money..

If you just take all entries you can do well but you will really need some big winners to keep you consistent

Any advise on the right places to look for?
  • #9
  • Nov 14, 2012 3:28pm Nov 14, 2012 3:28pm
Quoting 60minuteman
I had a look at the flying buddah myself, I love price action signals...

It's an exhaustion pattern and works really well..

If you also know the right place to look for them , then you can print money..

If you just take all entries you can do well but you will really need some big winners to keep you consistent
I assume that by "the right place" you mean my reference to major support and resistance areas? Like in the GBP/AUD chart?
I guess that every time I see a flying buddah I should see where closest support and resistance are and go from there to ensure that I choose the best ones (reduces losers a little hopefully)

I imagine that it would be good to use a trailing stop (whether manual or machine) to lock in profits. This may also help me with the not letting trades ride thing....
  • #10
  • Nov 14, 2012 5:52pm Nov 14, 2012 5:52pm
Quoting dafox1
I assume that by "the right place" you mean my reference to major support and resistance areas? Like in the GBP/AUD chart?
I guess that every time I see a flying buddah I should see where closest support and resistance are and go from there to ensure that I choose the best ones (reduces losers a little hopefully)

I imagine that it would be good to use a trailing stop (whether manual or machine) to lock in profits. This may also help me with the not letting trades ride thing....
open a chart on the daily TF, go back to the start of the week, place some horizontal lines on the high and low's of the last few days...

switch to H1 tf, what happened with price at these levels this week?...

Try it on a few pairs...
tradewith60
  • #11
  • Nov 14, 2012 9:10pm Nov 14, 2012 9:10pm
Quoting 60minuteman
open a chart on the daily TF, go back to the start of the week, place some horizontal lines on the high and low's of the last few days...

switch to H1 tf, what happened with price at these levels this week?...

Try it on a few pairs...
yeah, it appears that the general areas around those prices serve either as support or resistance on the hourly time frame. I assume this is the observation you wanted me to see? To be more specific, do you mean the close of the candle or even the wicks.

I believe perseverance and experience are the keys to seeing all of this...
  • #12
  • Nov 15, 2012 5:01am Nov 15, 2012 5:01am
the more reliable pattern is on the higher time frames like 4H and daily.

to cut a lot of losers, dont enter immediately after the flying buddah forms, but enter if the low of that candle breaks.

and remember that most profits are not made with the first trade, but from stacking positions aggressively if the counter trend continues.
  • #13
  • Nov 15, 2012 7:40am Nov 15, 2012 7:40am
Quoting yonnie
the more reliable pattern is on the higher time frames like 4H and daily.

to cut a lot of losers, dont enter immediately after the flying buddah forms, but enter if the low of that candle breaks.

and remember that most profits are not made with the first trade, but from stacking positions aggressively if the counter trend continues.
yeah, sounds good. I won't trade anything lower than D1 with this for now... it has more accurate signals than 4H even... Maybe when I get more comfortable with the system I can move to 4H, if my schedule allows for trading during active sessions.
  • #14
  • Nov 15, 2012 6:27pm Nov 15, 2012 6:27pm
Looking at eur/jpy and gbp/jpy for flying buddahs at resistance levels...

may be my first trade coming back, but we'll see I suppose. Hopefully it develops.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ej15nov12.PNG Size: 55 KB
Click to Enlarge Name: gj15nov12.PNG Size: 59 KB
  • #15
  • Nov 15, 2012 9:05pm Nov 15, 2012 9:05pm
Quoting dafox1
Looking at eur/jpy and gbp/jpy for flying buddahs at resistance levels...

may be my first trade coming back, but we'll see I suppose. Hopefully it develops.
4hr FB's already look good
  • #16
  • Edited 1:50pm Nov 16, 2012 4:51am | Edited 1:50pm
Quoting geoffrod
4hr FB's already look good
yes, I see that overnight they already moved now... almost opened trades last night, but I did not.

edit: Looks like I will be waiting for the Sunday evening trade to see if there is a flying buddah then.
  • #17
  • Nov 18, 2012 6:34pm Nov 18, 2012 6:34pm
In on EURJPY and GBP/JPY... about 20 min late and I lost 20 pips on each trade if I had entered right away.... but I forgot that since the time change went into effect, I need to trade an hour earlier... meh. oh well. Getting back in the game always goes a little slow...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 18NOV12 ej.PNG Size: 54 KB
Click to Enlarge Name: 18NOV12 gj.PNG Size: 56 KB
  • #18
  • Nov 19, 2012 2:15am Nov 19, 2012 2:15am
I also had Flying Buddah's on the Aud/Usd and Usd/Jpy.

Looks like there will be one on Aud/Jpy tonight.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: au.jpg Size: 94 KB
Click to Enlarge Name: uj.jpg Size: 91 KB
Click to Enlarge Name: aj.jpg Size: 87 KB
  • #19
  • Nov 19, 2012 7:32am Nov 19, 2012 7:32am
Quoting normtold
I also had Flying Buddah's on the Aud/Usd and Usd/Jpy.

Looks like there will be one on Aud/Jpy tonight.
Ah yes, I didn't see on on my audusd chart, but I did see one on usdjpy. I was late getting into the trades though, so I decided not to load up on that currency too.
btw I got anxious and closed out these trades a few min ago, because I saw that they had reached this low multiple times. Closed for 18 pips on ej and 38 pips on gj. I feel uncomfortable because it looks like the g/u is poised to rise, and I know that the g/j correlates usually.

PS-this thread will be continued in my trading journal here: http://www.forexfactory.com/showthre...60#post6208560
  • #20
  • Nov 28, 2012 5:37pm Nov 28, 2012 5:37pm
Quoting dafox1
Ok. I'm attaching the pdf file that is the basis for my flying buddah system. However, I do not trade ALL of the set ups. Only the Daily Chart!

I will post any trades taken tonight later... in about 30-40 min. I will be trading London session into ny session starting next week (switching to night shift), so I should have more action with the two other trading strategies.
Hi dafox1,

It is good to see you keep your trading journal and updates here!
By the way, the pdf file cannot be opened, as the file is damaged.

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