The7 Trading System

hi all, update on previous post no trade b,cuz according The7 rule if the signal candle has wick towards the trade avoid it . going into sniper mode waiting for another signal..

Where is there a rule that says you cant trade in direction of the wick. In most 2013 trading action I find 75% of trades are set up that way. As far as your eur/aud trade, it gapped down the next day and the founder of the system left us no rules for that. Me? Id get in short right away and use the same "high of previous bar " as your stop if you can stand the 180 pip heart. I did it and Im soooooooo happy right now.

As an aside....I think the Euro is in for heavy downside pressure as 85% of my trades are all euro shorts. I think we have some interesting times coming....cypress threatening to leave the euro, AUD prime minister being asked to step down and their dollar goes up!!!!! And the jpy pairs are looking like they want to actually run on each pairs merit so there may not even be a correction......JUST A RESUMPTION!


****BEWARE.......Something is going on ,that Bernanke said he'd like to step down early. Save your bullets guys. I say the next 30 days will be all news driven action. Sometimes technical players HAVE to listen to the news. Ive been short rthe euro since God was a baby and its making up for all my other losers. Prediction: minimum-more downside pressure on the EURO for AT LEAST 3 more weeks, maybe 3 months or more. Also, if the stock market corrects you know that the euro plummets as the american stock market and the euro move inversely. Thats another bullet in the chamber for the Euro. This may be one of the greatest shorting opportunities in a long long time. Be ready. When stopped out on any euro trades, track them and be ready for at least one re-entry, especially if both bands face down!

For the newbies: I no longer take short trades if both bands face up. And reverse for longs! Its like standing in front of a roaring train. Most of your losers will come from that scenario.

For the experienced guys: If I can take only trades where both bands face down, I will usually get in with an extra lot or look to add a lot after 1 day of winning action. Those are the bread and butter of this system. Anyone who loses money only tasking trades with both bands down, even if you get 2 trades per week, email me please!!!!!!! PM me. I need to hear about it. It seems almost impossible according to my stats and logic. I mean look at the money we all lost not being long all jpy pairs when both bands were up!!!!!!

GBP/USD to me is still playable long because after the long entry we had nothing but sideways volume. So its either going to break out or break down, but the bears still have some fight in them. I want to see 2 engulfing green bars any day now.Just put your stop under todays low and you are set!!!!

I have been using this system since my days as a newbie. Due to too much uncertainty in the euro zone, i have tweaked my "7 Trading system" and
added two new elements.
1) A 21 EMA- going short when the market is below the 21 EMA and bouncing off the 5 high
and long when the market is above the 21 EMA and bouncing off the 5EMA low.
2) A default setting MACD to indicate whether the market is bullish or bearish.
These two have helped survive alot of noise that is apparent.

Few things here:

1. Gratz on trying to establish some trading mechanics.
2. Remove MACD - you have MAs already, MACD is basically the same. Too many indicators blur your vision, therefore distracts decision making process.
3. Tighten stop loss.
4. Change your mindset: as you have an ill principle of a so called traders logic - if A follows B, then do C. Just do C.

Firstly, thanks for your comment.
I have very well working stop loss setting rules in my system.
Well the MACD- remains there tight..
I am quite experienced and know that my system doesn't work all the time.

Good advice signoir BUT This is what make me profit so I am afraid that I will not take your advice.

You are most welcome Danny to stick to your trading style and take any advice or not. Good luck in your trading.

POLL-TO SEE WHAT PERCENTAGE OF USERS OF THE 7 SYSTEM ARE NET PROFITABLE:

Guys, Its been a long time since the founder of our system has rejoined us and we all have many questions. As I have told you all before, I am profitable with this and have even posted my live trade balance in my acct somewhere on here by number of pips when I had 12 or 13 plays going on, and all of them big winners. You want the truth? Those days are gone! I am still way ahead by pips with this system but I cannot make a living doing just this system as it had looked when this thread was first started. We need information. I have tried to share with as many people via PM what I am using to filter my trades. We all should have just one or 2 major criteria that if they are passed, the trade is taken. Period. I dont like oscillators and fibs for the reason that there is always an argument to both take the trade and not take it. I want " NO ARGUMENT" indicators or set-ups. So, lets find olut who is showing net profit regardless of whether they take the system with no additional rules(but maybe a couple of filters) or they use the bands as just part of a bigger system. lets find out what % of us are net profitable by now and for how long. And also if it is paper/sim or real money acct. This should be very interesting. I also think to keep it short and simple we should list what our 2 or 3 most important rules are to take the trade. I will demonstrate by example.

I also,without being rude or picking on anyone want to bring out another observation I've made and kept quiet about for months. THE PEOPLE WHO COME HERE DO NOT USE OTHERS TO BETTER THEIR SYSTEM, THEY JUST COME HERE AND TELL US WHAT THEY THEMSELVES ARE DOING. OR IF THEY DO ASK, THEY DONT BOTHER TO REPORT BACK ON WHETHER THEIR BACK TESTING OF SOMEONE ELSES RULES WORK FOR THEM. IN OTHER WORDS WE ARENT MAKING THE MOST USE OF EACH OTHER AND THAT IS THE MAIN REASON WE HAVENT ALL TURNED PROFITABLE BY NOW, IMHO.

OK, here we go. Remember, its the losers we learn the most from. Tell the truth in trading. Always. One B.S. artist whose system or thoughts get into your head or your trading strategy can set you back for years! How about all the guys here on FF that sware to us they are making this and that and now they want to share their system publicly for nothing. Maybe some are telling the truth, but cant we assume that 75% are not.(and only 75%... that's being very generous) Or a guy who writes a book on candle patterns and tells you this pattern has been backtested over centuries since the early rice traders of Japan. How could it not be profitable? Or the guy who tells you that if you jump out every time price hits the 1.618 area...you mean the banks dont know many of us are waitng to get out at that area....and how about the majority of us who bailed and took small profits long before we hit 100.00% of the prior movement, let alone 161%!!!! B.S. KILLS 80% ODF TRADERS IN MY OPINION.IM DOING IT 15 YEARS. I KNOW. I MYSELF HAVE BEEN BULLSHITTED MORE TIMES THAN I HAVE BREATHED AIR! I wasted yrs trying fib systems and other peoples software systems that never could break even,let alone give anyone useful information. Plus, bullshit spreads like a virus, and once its spread for so many years,it becomes accepted as fact. Do any of you have any religions or spiritual practices that come to mind? lol SO LETS BE HONEST HERE ON THIS THREAD.



And those who read every post Ive put up here as well as my selections on the other 7 board, know Im not losing money.What is interesting is that the selections I have publicly given out, if you were to manage the exits a different way, you'd find most of my trades are digging out deeper and deeper profits every week sometimes for 2-3 months,long after we exited on this systems rules.[b](This is something some of you might want to back test and share your results with me privately.)I also am going to be starting a martial arts club for those who live in Florida where I am, as traders who do martial arts synchronize both parts of their brain and so both activity's results get significantly better!!!

POLL: ARE YOU A WINNER OR LOSER IN THIS SYSTEM? : How long? Real or Sim acct? About how many pips? What do you see as the largest "hole" (making bad trades) in your strategy? Best change(if any) youve made?

POLL:

#1-SILAT 50-WINNER-SINCE MY FIRST POST ON THIS BOARD. Real acct.(Im a loser in my sim acct as I've combined too many different systems there. Bad move.) Biggest hole in my play is not keeping records and comments in a log on every trade I take. (90% of professional traders do not make this mistake I was told.) Best change Ive made is I never get into a trade where price on a 60 minute chart has moved away from the 8-SMA.I prefer price and the 8sma to be touching each other. B- I allow myself the judgement call to not get out until the upper band is broken on a "closed" candle instead of the previous days high for longs,opposite for shorts. Look at the way the bands flow.It allows you soooo much more room to let trades develop, and also run its full course. I USE THE BAND LINE MUCH MORE THAN I USE THE PDH/PDL as an exit. This has been gold for me.



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PART 2

*****Look for explanation to this in my next post.

***** But... since I don't play full lots,the money I've won, divided by the 6 months or so,that I'm using this system makes me a net loser when you count my living expenses into it! Most traders never ever talk that part. So based on that, probably 99% of traders lose by the end of the year if they quit their job and just trade! The 2-5% that supposedly win in this business are ahead in their brokerage acct, yet their savings acct. gets lower every year until they are broke. We all know 90% of winning traders have to go flat broke before they will ever stop trading and go back to work when they have a winning system in their hands. This is something all of you should ponder many,many times thruout your trading career!!!! So guys and gals, those of you who have PM'ed or emailed me with praise, I am flattered. But Im just another loser the way I see it. If I cant build up my real account...my bank account! And statistics say most traders who ever become fortunate enough to win every year without fail cannot get out of that category. Think of the great hedge fund trader by the name of "Victor Neiderhoffer." READ HIS BIOGRAPHY. I bet it will make 1/4 of you give up trading right on the spot!

So lets say for example purposes that I have won about 1800 pips since I am on this thread, which is about 6 months. I do not play full lots as I do not have sufficient capital in my acct. I do not believe in risking more than 3% of your capital per trade. LET ME BREAK THIS DOWN FOR YOU FOLKS! YOU ARE GOING TO FREAK OUT!

Lets say on a micro acct at 10 cents per pip, if you started with $1000-to make sure you never went broke, that you never had to dip into your savings again, is there one person here that could really say..."Oh thats way too much money to insure never going broke. Take some back." NO TRADER ON EARTH WOULD EVER SAY THAT,RIGHT? In fact looking at it that way, with that goal, $1000 is kinda low, right? Right! So...we all know,not a trader on earth can pay all his bills and support a family on a micro acct. Its not possible. So a micro is only good for building up your bankroll and/or your experience...nothing else! Agreed? Agree.

So now this means if you want to open a mini acct which is $1 a pip, you need $10,000 to start if you use the same criteria and goals! But, even if you make one dollar per pip, you still cant pay all of your bills. Not unless you have no rent, live with your mother, she pays for all of your food, etc. You getting it now? That means if you "only" make 500 pips per month,thats $500 a month to live on, youll never ever, ever be able to pull money out of your trading account and blow it on fun things...you know....the real reason we area trading, so we can live a nicer lifestyle!!! Otherwise, why trade for money? Just have a sim acct the rest of your life and do it as a hobby. You'll never risk one dollar the rest of your life. Wait...it gets worse.

So, we now come to the inevitable FACT......if you want to trade for a living in the spot Forex market. your going to have to open a regular account. The way it used to be. The nice thing is you now earn $10 per pip(avg.) on every winner. But using the same goals and wanting the same safety as before, you now need $100,000 to trade safely and still if you have 1 or 2 losing weeks you could lose enough to always have permanant doubt! It isnt hard to lose 500 pips in a full week of trading and thats $5000.Do it twice in a row and thats $10,000.Losing that much in 2 weeks would shake any normal persons resolve. Thats 10% of your bankroll.

So if you put yourself at the 1500 pip win level of trading I used for the example, you have just won 15,000 dollars for 6 months of work. Thats 30,000 a year! Better we spend our time doing something else if thats the best we can get. And dont forget, I am assuming you never have a losing month to make that many pips in 6 months. Imagine in real life, real trading if you have a losing month, you will freak out because now you have to make double the pips next month and even thats not enoug to put you back on track as your expenses came out of your bank account to pay last months living expenses and you do want to pay back that "loan", right? Definitely! The first time you dip into your savings and dont put it back as a trader, is the beginning of the ensd of your career and maybe your marriage and present lifestyle as well. All of this was given to me by a professional stock market trader who lived by what I am saying: NEVER TOUCH YOUR SAVINGS TO TRADE OR YOU ARE DEAD.

So lets see, if I made 1500 pips in 6 months on this system, that's 300 pips per month( and I'd wager that would beat the results of 98% of the folks here at FF, and even 90% of people who "claim" to be winners.), how would I be able to consistently make double, triple, quadruple that and more, to live the way I really want to, to make all the struggle worth it?

So, the $64,000 question now appears. It is the only question of any importance at all in a traders life at this point,once you made it up to a regular acct trading for $10 a pip. And that is:



How can I make enough pips every single month?!!!

(you cannot have more than 1 losing month per year or you will crumble under the mental strain of making it up and with 2 or more losing months it would be almost impossible to "hit" your monthly goals every month that year,so it would screw up your trading results for many,many months into the future.(Not fun to think about, I know.)

Here is the good part of all this seemingly depressing news: If you can survive with on less than 800 pips per month($96k per year) just spend 3-4 yrs(at most) becoming a male nurse, get a job in a big city or at least a bustling good size town and with 10 hrs of overtime per week you'd be at about $70,000 per year in earnings. This is what a lady friend of mine who is only in the USA 5 yrs makes every year in LA as a nurse. Almost any job in a hospital that administers tests like MRI's, X-RAY tECHS, and whatever you need 2 yrs min. of college for will pay about the same with overtime. So go help people in need, cut out the stress, and have the best medical benefits in the country and a steady paycheck.

Not for you. Become a police detective with a 2-4 yr degree in most criminology type fields and again, with overtime youll be making like 70k per year with the best benefits in America. No stress. I would choose this route myself if I was 10 or 15 yrs younger if I gave up trading.

So, why am I taking all this time to write this?

1-If I can give one "over-enthusiastic" young person who doesnt realize how many yrs of their life they can waste if they trade and then discover after yrs of study and screen time,that they are stuck on the fence.....they are winners, but not big enough winners to ever quit their job. You know how you will be hurting to be stuck on the fence all of your life? LOL
Seriously ,it is very sad.

2-I am at that point myself. I must go to the next level very shortly(I am giving myself a year) or I must just do this as a hobby and ......Oh Jeez!!!......"sigh"...........................I might actually have to go and get a real job again. See how much fun THAT is after 5 yrs of staying home and trading!

It is what ex-cons must feel like after being released from prison after doing a looooong stretch. You feel like you aren't part of the regular world anymore. (I hope one day OUR govt. can remedy that, or this country is going to get out of control.) I had the sad experience of watching a friends son go thru that this week as he turned 30, had dropped out of college to trade at 25 and now is moving back in with his parents. Hes sick about it, and my buddy is ready to cry, for both reasons. So understand that the decisions you make about trading might very well affect many people around you. Especially those you love most. And besides.....if you DO make iot as a trader and you impress your wife and all the family members who doubted you, how long do you think the cheering will last? 2 or 3 months? And then it becomes...."(Yawn), Yeah, yeah, I told you 4 times already my son/husband/boyfriend trades for a living. No, I dont think its all that much fun. And if you want to know how he does it, go ask him...Im tired of everyone thinking I know. To me its like watching paint dry!!! "

3-I am being considered for a writing position for a trading magazine on the Internet and I am using this piece to let them know my stance about people choosing trading as a vocation.They requested it.


Do I think I can find a way to step it up 2 notches and make it all worthwhile and make the $$$ I need? Yes..........I do! And if I cant do it in another year I will either hang it up, or hire a professional coder for one final shot. Money we can always make somehow. It's time we all run out of.

Just keep in mind, we read about all the glamorous stories in books like Market Wizards, but what we often fail to realize is these guys are called "Wizaeds" for a reason. Not only are they all gifted with genius, but they were very, very lucky. By luck I mean, lucky enough to be born at exactly the right time when their particular style of trading was in sync with the markets. In other words, the greatest trader in the world will go broke if he made one wrong mistake....such as not putting a stop on his longs when the flash crash occurred.Trading is a very unforgiving profession. Do 99% right and 1% wrong and it just might eat you alive as if you were just another sucker on the train to Margaritaville. I also know a day trader of stocks that has won every month for over a year, and to me he has no aptitude for this field. Time will get him,eventually. That's another thing, as written in the book "RANDOM WALK ON WALL STREET" I agree it is very true. A losing trader can actually win for a long, long time before his system falls apart if he jumped in at the right time. Example: Almost every trader of equities on the long side only for the last 3 yrs!

Choose carefully the path you really want. Me? I really want to trade professionally.Bad!!!

"A man has got to know his limitations"- Clint Eastwood- standing over a dead mans body after a duel.

I personally believe trading will kill you if you invest years into it and it doesnt pay off. Then it can just degenerate into nothing more than a compulsion, a bad habit, a need to be right, a need for action, and you take down every one on the ship with you. As the most interesting man in the world says on the Dos Equis commercial "Choose Carefully my friends."

Hmmmm, no one has the patience to read my threads, take my poll to let me know who is profitabel or not and why. I wish O had a guy like muself helping us nail down the holes in our system as Im trying to help you guys do. I think I am just going to answer those who PM me. Most of you it seems cant devote an hour a day to this. I devote my entire waking life to it.

I'm just going into listen and learn mode here. I guess you guys all have 2 jobs and a wife and kids, so sure its hard to find the time to be here every day. I understand. Lets keep this thread alive,folks. Im not going to be showing my live trading results to people here on the board anymore. I have been shocked into learning a very very good lesson......even if you prove you win every month...people dont have the time to follow you and go along for the ride. Well, I will always be close by. I'd like to see someone else posting OVER 50% WINNING TRADES IN THIS BOARD...as I did, easily...and then I can follow him or maybe do a JOINT VENTURE. rEAD MY OTHER POSTS ON OTHER BOARDS IF YOU WANT THE LOW DOWN ON HOW HARD THIS BUSINESS IS TO EVER MAKE A LIVING AT IT. Even I,,,,,who was lucky enough to be ahead from week one of following this and never looked back,never had a losing month, and finding this system is easy to generate pips every week......but NOT enough to quit your my day job, And boys...I need to quit my day job!!!!!!!!! THATS THE ONLY REASON i AM HERE.

Silat 50,
The reason , for me anyway, I stopped following is because your style became very discretionary so that one had to have your mind to trade it correctly and see things the way you saw them.
If we could prove following the basic 7 rules without discretion or subjectivity is profitable or not, then we can move on to looking at other things. So far I have not seen that proven , one way or the other yet. That's the inherent challenge with all systems...the one person who knows what to look for and when and why is the one who profits. Your comments have been helpful though and welcomed!
Why don't you consider setting up a trade copier for us. It's not hard to do, and that way we can all be the same trades at the same time.

Wow..Wee Silat50

What a lesson you teach here....

Yes What you say is the truth....The whole truth and Nothing but the truth....

BUT....We all live in hope.........
....The Holy Grail......

Pprsper, I am the first to admit that the way "I" now trade it, the style did become discretionary. And I certainly understand how people would want exact rules. But I am also the first to admit that I am not willing to bet my entire trading acct on just these rules. The results in the beginning warranted it...the results now, while still good, do not. -)

Dont get me wrong, I loooove this system, I just find that following the route of the bands rather than the previous bars h/l has become for me more profitable. And some weeks it is not. Im not the best trader here by any means. I just know when something feels "off" to me. And this system stopped being as dependable as it once was. Although I pity the guys who trade against it. (smile)

What maybe you could propose to the board, is every one of us make up our own 7 system. It has to be "almost identical to this but with a couple or 3 small changes. And then we can follow that with a trade explorer in a paper acct and see how we all do........AND STILL FOLLOW THIS TOO.

i TRULY THINK THE MARKET MAKERS WERE TOYING WITH US FOR A WHILE AND LET US WIN. THEY KNOW DAMN WELL MOST PEOPLE WHO ARE SWING TRADERS PLACE THEIR STOP ABOVE OR BELOW THE PRIOR DAYS H/L, DONT YOU THINK?

Do you have any other ideas? Id love to hear them. That said, they cant always hit our stops and when the market wasnt volatile there wasnt enough ATR per day to knock out our stops with ease. Now there are.

Want to know a secret: I smelled this coming when we had that one day where wicks were taking out 3,4 and 5 days wirth of stops on one wick and then continue down in its usual direction. Thats when I said...........".they have our number." But Im sure its not us little guys but many what I call...."baby elephants" that are getting crushed beneath the hedge funds feet as well.

I admit too, that if I just take a trade according to the original rules and both the daily bands and the weekly charts arent both going our way,we lose too often to suit my taste. So for me...I must refine it! -)

As well we all are on different schedules so my hope of having a trading or chat room is not feasable now. All said and done...we CAN make this system work!!!

The future for me guys to be honest is to trade both Forex "and stocks with this system. Because stocks each have completely different market makers, usually different players and thus behave with different personalities. The real money is in stocks, from what I have seem this past year. You can have a slow moving Forex market, but for $25 a month, you can get a scanner that will bring up every stock trading over 1m shares per day thats in motion....now! I want to be in both markets at the same time...soon.

I apologize if I came off a bit irritated, but I have no second job, this is my life. If this doesnt work for me......Im dead. Im totally committed to making this work.

Davros, I dont want the holy grail. I do want what I have seen my mentors and instructors before me achieve. To never have a losing month. Losing weeks? Yes. But a full time trader who has kids to feed and wives to make happy cant afford a losing month. Besides, any trader when he has his first losing month after a year if winning...his confidence is forever cracked! Mine was,anyway. And the daytraders who grab their nickels and dimes hope to avoid it...but they get chopped up faster than anyone....using 5 min charts in Forex. They are like this all day long, till they drop dead of heart disease or nerves.

In the spirit of sharing ideas and techniques, I have been using this system for about two months with mixed success...some trades profitiable, others not. Overall my account is up about 10% in two months. That's fine for me, taking things slow and easy. I also scalp several mornings a week. This is better, and candidly, more successful.

However...One thing I have learned from scalping, is hedging. Can't do it in a US account on the same pair, but you can use correlating pairs as a hedge. for example, hedge eur/usd with usd/chf. Their patterns are nealy perfect mirror images of each other. So if you are in a trade and it looks like it is going badly, you can either dump the trade for a loss, or hedge it, and as the hedge becomes profitable, use the proceeds to eliminate pieces of the bad trade. Over time, you can completely wipe out the bad trade. This takes patience and at times it may seem like you are always on the wrong side of the trade, but it does work. Also, you may need to spend a little more time in front of the computer, and check every hour or four hours, to make it work. It's worth practicing in a dummy account.

Hope this helps someone.

Glip, in 15 yrs of trading, every hedging system always wouldnd up making the brokerage firm more money than the trader. It always in the end takes away bottom line profit at the end of the month. You know know many offers I get every week to buy options hedging systems where I can make 10% a month with no risk, and they show the stats to prove it. If it could be done Warren Bufffet and Goldman Sachs would lock it up by now! I say its a fantasy.

The SOES BANDITS of the 70's and 80's were the last free lunch....IMHO.


how is everyone doing with this system playing it just the way it was invented. I never said not to do it, i just said it hasnt been that great these last 3 months. I suspect it may get hot again. All we need are 3 day up, days down kind of patterns to get rich with this. Im sorry I complicated it for so many of you

ENTER GBP/USD@15401-15411


I have just closed out 2 very good trades to get ready for a massive move on this gbp/usd. Heres how Im playing it. IM CONFIDENT ENOUGH,I dont need the whole bar which is up huge, like 130 pips and its only 6:45am!!! I am placing my stops at 1:5394 for one third of my trade and at 15328 for the 2nd 2/3. If I put my stop under the whole bar I could only afford 1 lot. I think if we retrace more than 1/2 of this bar, its a bogus move,anyway or I can re-enter later I will bet anyone here money that if you only took trades with big engulphing bars like this and used 60% of the bar as your stop or even, you can allow for a ..618 retrace and put your stop 6 or 7 pips under that if you like Fib numbers, you will find this system will make you very happy at the end of a year. Problem is we must be very patient to wait for these type bars. I suspect we have a 400pip rally before taking a breather. Wish me luck!

looks like a very strong strategy, I'll test it and post results.

GBP/USD -MOVING 2/3 OF MY POSITION STOPS TO 15462. The OTHER 1/3 to break even.

THIS IS NOT THE WAY THE 7 SYSTEM WOULD DO IT, BUT I HAVE AFFIRMAING ACTION COMING FROM ELSEWHERE THAT MAKES ME WANT TO DO SO.

MY PERSONAL BELIEF IS THAT THIS SYSTEMS STOPS SHOULD BE MODIFIED WHEN PRICE IS OUTSIDE THE BANDS. MORE ON THAT NEXT POST.

THINKING OF STARTING A TIP OF THE DAY THREAD: PM me if interested. I was thinking of opening another thread, maybe on a different site, that would give a 'tip of the day" in how to play this system the way I think is more profitable. I am not a champion trader by any means but I seem to be the only one who consistently wins with it every month. Im not talking 1 or 200 pips either. You all have seen many of my predictions posted. Have I even had 2 losers yet on the board? I lost track.

Anyway one hint I'd like to give all of you is that we cant play the usual way of putting the stop under the last bars high or low when price is outside the bars. Why? Because I bet money this is where 2/3 of you get stopped out, and the other 1/3 of you have already taken profit by now.(way,way to early) So I am saying that when price action is outside of both bands it shows we are either in a parabolic move or momentum is really strong and we need to allow more room for those tails and wicks, especially since I told you that all the smart money knows 1/2 of us put our stops somewhere under the previous days low for medium term traders and under the 60 min low for day traders. This is why most of us lose. Our stop gets hot and the next week we see we would have made 100-200 or more pips if we allowed more room. This obviously is also needed because the bars often get very small for several bars in a row as in the GBP/USD IS RIGHT NOW!!!!! But if we are outside the bar and the last bar is an engulphing or a decent size bar of 80 or more pips, yes, you can leave it alone. But..............what would be wrong is putting your stop under the open of the 3rd bar back or even at its 50% point. Im sure we all agree until that is broken this trend is not in question.

We always want tpo get out WHEN the trend is in question, not when a tiny 30 pip bar gets clipped and we are relieved to get out with our profits. -)

This is just one example. You can usually put your stop at least 80 pips lower or as I told yu I often do now...PUT YOUR STOP UNDER THE BOTTOM BAND. AND EVEN GIVE 10-15 PIPS MORE ROOM TO ALLOW FOR TAILS AND SPIKES.(If lower band isnt that far away.)

Also, I am going to think about starting a private forum here or somewhere or maybe even a trade room if there is enough interest where you guys give me YOUR selections. . Here is how it would work: I would let YOU guys give me 1 trade each from the 7 system each week. Its ok if it is already in play by a couple of bars.I often prefer that. The only rule would be, that you had to give me a play that was below/above a certain moving average on both the daily and the hrly charts. I am using this with great success, and no, don't even ask me what the moving avg is unless I open the room or a very serious new thread opens. Lets just say I got rid of moving averages for years from my trading and this one I backtested has such continuation when broken thru, it made me add just this one to my trade rules!!!

WANTING TO START A NEW THREAD WE CAN EVENTUALLY SELL,TURN INTO A FUND,BECOME A PAID FOR TRADING ROOM OR GROW BEYOND FOREX FACTORY BASED ON THE SEVEN SYSTEM:

So picture this: Lets say we have 5 guys. Each of you give me 1 play a week from the 7 system we already use.. Out of the 5 or 6 plays, I would pick only ONE or TWO for us to get into. If we get stopped out, I may tell you guys to re-enter.(Many of you lose because you dont re-enter, you just go on to the next trade,right?) We always have to try to have money in action. Thats bullshit that the best traders make money sitting on their hands. After a while its called inertia, or the "deer in the headlights" syndrome, and many of us traders come down with this disease after going 7 or 8 losers or even losing weeks in a row, yes? =)

WE COULD THEN EVEN TALK ABOUT STARTING A PUBLIC "FOR SALE" NEWSLETTER AND SELLING THE PICKS. I CLAIM THAT 90% OF THE PROS THAT ARE MAKING BIG MONEY ARE NOT USING THEIR OWN MONEY AS PRIMARY FINANCING. YOU CANT EVEN CONSIDER LIVING A DECENT LIFESTYLE AS A TRADER IF YOU HAVE LESS THAN 50-100K IN YOUR FOREX ACCT. READ MY PAST ARTICLES A COUPLE OF WEEKS BACK TO SEE MY ACTUAL BREAKDOWN. OR WE COULD START OUR OWN HEDGE FUND OR SOMEHOW SELL THESE PICKS. I PERSONALLY DO NOT HAVE 100K TO PUT INTO A FOREX TRADING ACCT. IF YOU DO NOT, YOU ARE WASTING YOUR TIME TRADING UNLESS YOU DO IT FOR LAUGHS OR EXTRA POCKET CHANGE! WE HAVE TO CHANGE OUR THINKING TO "MAKING MONEY FROM FOREX" NOT.."MAKING MONEY AS A TRADER." Hint: Do you think the guys who made Forex Factory could care less what the market is doing? You think Nissan, Bigelow, Prechter and all the guys who got rich from trading actually got rich traing their own money? Maybe a few.............. a "few." EVEN GANN WHO MADE THE SYSTEM UNDER HIS OWN NAME WAS SELLING IT FOR $1500 BACK IN 1932. WHY!!!?


Last year, I won 11 out of 12 months and I am not close to making a living at this game. So why do you think so many competent traders are selling newsletters and memberships to trade rooms and conferences and God knows what else...........MAYBE THE MONEY IS NOT IN USING YOUR OWN CASH!

Anyone interested in starting up a room and/or thread where we do this, let me know. I wont do this unless we get enough people and they have to explain why they should be taken seriously and what they can contribute. iF YOU PM me and I dont get back to you, it means I stopped trading for a while, which I do 3 or 4 times a year. I WANT GUYS WHO CAN COMMIT TO THIS PROJECT FOR AT LEAST A YR. BESIDES, imho....., BEING A "PLAYER" IN FOREX CAN ONLY BE DONE WITH A LIFETIME COMMITMENT." Together we grow,alone we fail." But we start off with a professional blog or thread and keep a strict set of rules on when to show up in the chat room and how to pick our plays. Most of you could keep doing what you are already doing...just add in one more rule.

I also could use guys who can do web design, maybe build a nice blog on v-bulletin, a guy who can keep records of trades on paper as well on screenshots so we can look over every single loser together. (This is the most important thing any aspiring pro trader can do and less than 1% do this. Getting feedback from others who trade your way!) When I was with a famous prop room, they told us "If you cannot explain why you took and why you lost, every single trade you took each day, YOU WILL NOT WIN AT TRADING!

MY GOAL IS NO LONGER TO BE A GREAT FOREX TRADER. I SEE THAT DOESN'T EQUATE INTO MONEY. MY GOAL IS TO GET RICH IN FOREX TRADING. THAT'S NOT NECESSARILY THE SAME THING!!!


Please dont talk about this here and get the thread all bigged down, just send me a private message if interested and what you can offer. We only need 5 or 6 committed guys. That is like a small Army in "this" game. How could we lose if 6 of us were contributing their brainpower to come up with one trade? I dont think we can if we stuck with it long enough!!! Im a net winner alone or with a team.Those of you who have seen my picks and screen shots and PM ed me to get my picks KNOW this for a fact. But I'd much, much rather be on a team than alone.. "hint"