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Simple Money Making Method

  • #2,281
  • Nov 30, 2012 4:08pm Nov 30, 2012 4:08pm
I wondered about a very small TP of 5 for this method? With a higher amount per pip it could be more profitable. Perhaps a 15 SL.

I hate all the sniping on these forums. It is easy to forget that FX- Pro has spent a lot of time and energy to help us all. We should not forget that. There are also others such as burnzmeister spending a lot of time to 'tweak' the system. Trading is all about working hard to create your own comfort zone and risk to reward ratio. There are plenty of people willing to take good money from you to teach a 'system' that probably will not work out for you. All criticism does is stop people like FX- Pro sharing information.

Anyway.... a 5 TP? What do you think guys, worth a try??
  • #2,282
  • Nov 30, 2012 4:49pm Nov 30, 2012 4:49pm
btw trading both EMAs separately might be an even better method than trading on them together. Although there are risks for going against the trend with the 12 EMA. But if you trade with 0 SL risks are lower.
  • #2,283
  • Nov 30, 2012 7:57pm Nov 30, 2012 7:57pm
Enjoy your week FX Pro, many thanks for your help

cheers
Ymmit
  • #2,284
  • Nov 30, 2012 10:40pm Nov 30, 2012 10:40pm
Quoting Philampm
I wondered about a very small TP of 5 for this method? With a higher amount per pip it could be more profitable. Perhaps a 15 SL.

I hate all the sniping on these forums. It is easy to forget that FX- Pro has spent a lot of time and energy to help us all. We should not forget that. There are also others such as burnzmeister spending a lot of time to 'tweak' the system. Trading is all about working hard to create your own comfort zone and risk to reward ratio. There are plenty of people willing to take good money from you to teach a 'system' that...
Philampm, No I don't thing it's worth a try. Go back and read FX-Pro's post #2. 12 to 18 trades a month, 50-150 pips per trade. My personal experience watching others try an inverted (risk 3 to make 1) R/R is it ALWAYS end in tears. As for the 5 pip TP; I don't know what is the smallest practical TP would be on a 1 hour chart, but I'm guessing since the ATR on EUR/USD is around 15, it has to be much larger than 5.
  • #2,285
  • Dec 1, 2012 4:17am Dec 1, 2012 4:17am
Quoting Percival
Philampm, No I don't thing it's worth a try. Go back and read FX-Pro's post #2. 12 to 18 trades a month, 50-150 pips per trade. My personal experience watching others try an inverted (risk 3 to make 1) R/R is it ALWAYS end in tears. As for the 5 pip TP; I don't know what is the smallest practical TP would be on a 1 hour chart, but I'm guessing since the ATR on EUR/USD is around 15, it has to be much larger than 5.
Thanks Percival. I am just studying charts again. I think that this is preferable to back testing as I can understand more about what I would do in the circumstances.

What SL do you think is preferable for this? I know lots depends on the setup, resistance etc. More recently I have tried a 10 TP and a 20 SL. Using this method with about 20 currency pairs to test, last week I made around 39 pips. Certainly on some currency pairs there is much more movements due to market conditions, especially the EUR.
  • #2,286
  • Dec 1, 2012 7:01am Dec 1, 2012 7:01am
Quoting xiaotiao
I was not able to understand well about the concept of "BE" you mentioned? Can you please show me some guidance? Did you mean that the price just 1.7 pips away from the SL that you have shifted to BE? So you are very lucky that your SL was not hit..? Sorry for bothering you.
BE is to move the stop loss position to the entry point, so when price reversed back, ur position gets out and u make 0 losses and 0 win, providing there's no swap.

BE can be used for scalping, for example, i normally use BE by 3 pips for a scalping strategy, when price candle moves ahead of me by 3 pips, my position would be breakeven, stop loss moved to entry point, if price fake out and return to either form a PIN/WICK bar aka shadow before a closing of body, i am cut of the position. The pros -> Free trade, risk free, the cons - > lesser probability of winning or letting winner run.

BE can be used as trailing stops as well, depending on the strategy of short term trading, range trading or swing trading.

A short term trader upon trading in a consolidation may want to move his position to stop loss BE upon like + 10 or + 12 pips in advance before a particular news release/session opening or closing to prevent spikes or plunge in either direction that can knock your entries into against the flow of trend/reversal.

A range trader can shift his BE higher as the trend is moving upwards or lower, for example, a buy on 1.2900 eur/usd, price moved above resistance 1.2910 and maintain at level 1.2930-50, a ranger trader can shift his position into stop loss 1.2929, meaning it's breakeven + 19 pips, at any one point if position can scale back and falls back the consolidation zone of 1.2930 to lower range, which may also shows reversal/fibo retracement, the trader get out in profit as the position is closed, in good days, a range/trend trader and move his stop loss trailing higher and higher as the momentum moves in favor of his direction.

A swing trader, can open a trade at a good point of offer/bids and go away for days or weeks, and shift the stop loss to Breakeven upon 50 pips+ in advance, then 100 pips ahead with BE + 50 pips.

BE can either be called a free trade or a trailing stops, it's effective in risk control and maximizing winners or letting winners run. It's important to know if the position is trading in a range/breakout/consolidation before applying such techniques.
  • #2,287
  • Dec 1, 2012 7:03am Dec 1, 2012 7:03am
Quoting unclesu
USDJPY - Entered on demo yesterday night, closed it early even though SL has not been met. First vertical line is point of entry, the other vertical line is the latest I would have exited. (2nd vertical line was where M15's MACD12,26,9 went from positive to negative). Was good for at least 30 pips.

Of course Yen went down against many pairs today, and nobody could have predicted what BOJ was going to do.

Anyone care to shed some light into this particular trade? Good/bad? Other discretion I should have considered before taking the trade?

Attachment ...
apparently your arrow indicators are not really sharp, removing them from your chart to study naked price action would serves better in decision making. Too many arrow indicators out there are relatively useless sorry to say that.
  • #2,288
  • Dec 1, 2012 7:23am Dec 1, 2012 7:23am
Where i will get this Price Action, Supply Demand & the Trend indicators ?
  • #2,289
  • Dec 1, 2012 8:02am Dec 1, 2012 8:02am
Quoting 5percent
apparently your arrow indicators are not really sharp, removing them from your chart to study naked price action would serves better in decision making. Too many arrow indicators out there are relatively useless sorry to say that.
I think that your entry point was the 02.00 candle, (price 82.46) and your exit was the 14.00 candle, (price 82.55) for a +9. Once it hits the 72 ema then that is the stop and time to exit. I am finding that a 20 pip stop is usually enough to stay in the trade whilst still staying on the right side f the trend and allowing for movement. Having said this I am certainly no expert and probably would not have made this trade due to the 01.00 candle rising by 36 points.......
  • #2,290
  • Dec 2, 2012 11:11pm Dec 2, 2012 11:11pm
Quote
Originally Posted by 5percent
apparently your arrow indicators are not really sharp, removing them from your chart to study naked price action would serves better in decision making. Too many arrow indicators out there are relatively useless sorry to say that.

I think that your entry point was the 02.00 candle, (price 82.46) and your exit was the 14.00 candle, (price 82.55) for a +9. Once it hits the 72 ema then that is the stop and time to exit. I am finding that a 20 pip stop is usually enough to stay in the trade whilst still staying on...


Hey 5percent, big fan of your threads and entries. You're right, ignore all the bells and whistles on my screenshot, too lazy to clear it up before clearing.


Phylampm, Entry was 17:00, exit 17.15 as I showed with my red vertical lines. What do you mean by stop when it hit 72EMA? Can you explain with a screenshot?
  • #2,291
  • Dec 3, 2012 5:04am Dec 3, 2012 5:04am
Quoting 5percent
BE is to move the stop loss position to the entry point, so when price reversed back, ur position gets out and u make 0 losses and 0 win, providing there's no swap...
Nice description of 'Break Even' 5percent. Many traders, myself included, struggle with moving the SL during a trade.

There is an alternative, however. If you go back over time and log all of the trades you would have made in acordance with this method, you can measure the MAE (Maximum Adverse Excursion) and MFE (Maximum Favorable Excursion) of each trade. Google Curtis Faith's 'Way of the Turtle' for the definition of these.

Of course, this will be relative to each trade setup and every trade setup is different, so we have to measure these values with respect to the support/resistance and EMA levels. If, for the vast majority of trades, the PA does not retrace beyond the 12 EMA we could deduce that our SL can be safely placed at the 12 EMA + the spread. This is just an example, and testing over a large dataset is highly recommended.

I think setting a generic fixed SL for each trade could be profitable, but definitely not optimal. Since this method has a discretionary aspect, discretion should be used to determine the SL and TP as well.
Most people have the will to win, few have the will to prepare to win
  • #2,292
  • Dec 3, 2012 6:10am Dec 3, 2012 6:10am
possible system setup
Attached Image (click to enlarge)
Click to Enlarge Name: chfjpyh1 by fx-light.gif Size: 24 KB
i am the lord that giveth thee power to create wealth.
  • #2,293
  • Dec 3, 2012 6:30am Dec 3, 2012 6:30am
How about the Euro/JPY right now?
  • #2,294
  • Dec 3, 2012 6:31am Dec 3, 2012 6:31am
Nice spot fx light.

Also have a look at H4 Aussie (Current bar closes in 1 and a half hours, but worth watching)

Potential TP at strong RN resistance at 1.0460 and SL below the 72 EMA + spread. Would be good for 3:1 Reward/Risk, in an ideal world of course!
Most people have the will to win, few have the will to prepare to win
  • #2,295
  • Dec 3, 2012 11:25am Dec 3, 2012 11:25am
boring day today!
  • #2,296
  • Dec 3, 2012 11:30am Dec 3, 2012 11:30am
Quoting Brixton
boring day today!
Setup on the Aussie ATM? What do you reckon Brixton?
Most people have the will to win, few have the will to prepare to win
  • #2,297
  • Edited 1:49pm Dec 3, 2012 1:35pm | Edited 1:49pm
Hi all! What do you think about my analysis on AUDUSD, we have a slight downtrend on H1 that has started on November 27th (agree?) and the PA just bounced the 200EMA+72EMA, closing below 12EMA. There is also a strong horizontal support line that has turned resistance (blue rectangle on the chart).

Adding to this on the H4 there are two major pin bars pushing the price down, could indicate a down move...although the 200EMA is on the way.

Please don't follow my ideas, I'm new in Forex Trading!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: AUDUSD_H1_20121203.jpg Size: 113 KB
Click to Enlarge Name: AUDUSD_H4_20121203.png Size: 45 KB
  • #2,298
  • Dec 3, 2012 4:04pm Dec 3, 2012 4:04pm
Quoting burnzmeister
Setup on the Aussie ATM? What do you reckon Brixton?
hey! you got a chart for that?
  • #2,299
  • Dec 4, 2012 3:24am Dec 4, 2012 3:24am
Quoting Brixton
hey! you got a chart for that?
Sorry mate, I haven't got the time to post charts at the moment. Have a look at the weekly though. Do you see a wedge?

I think we're quite bullish on the H4 and H1 TFs at present and this fits with the long term trend.
Most people have the will to win, few have the will to prepare to win
  • #2,300
  • Dec 4, 2012 4:06am Dec 4, 2012 4:06am
Yep, that looks good!"


Also check AUD/JPY
Attached Image
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