Third Screen Strategy - Dr. Alexander Elder

What does TCO Trader EA have to do with anything in regards to this particular strategy?

Maybe a nice trade on EUR/USD next week. Is it too late?

TCO (and others) have developed an EA they credit your strategy as being the basis for but with their own ideas as well bro.

http://www.forexfactory.com/showthread.php?t=430840

Ahhh... Gotcha!

ok just had a quick skim through first couple of pages of this strat is this strategy fully automated.........

Hi All,

I've been lurking on the thread for ages, reading it through and trailling on Demo. I'm a newbie so I apologise in advance if I say anything stupid or any of my analyses are incorrect - I would appreciate any feedback as I want to make this work.

In particular I want to use the Third Screen strategy that 100Pips has so graciously given us on a plate here!

At this point, I would just like to say that this looks to be a genuine strategy that actually works over the long term, and very well it does too. I would say to all those people here who seem to be looking this gift horse in the mouth is to knuckle down and read through the thread IN DETAIL and practice in demo. If you can't make this strategy work for you, move on. Maybe this strategy is not for you.

To make it work, you need a medium to long term view and the ability to tolerate draw-down.

It won't suit everyone's trading style, so don't force it.

And, Paul72, I hope you have a tin-hat handy, you're going to need it after that post! (If you've no idea what I am talking about, you need to read the last few pages of the thread).

No, it isn't meant to be fully automated - although you can try it if you want. You really need to re-read the thread in detail. It isn't that long and usage of the EA is covered ad-nausiam.

Anyway, enough about that!

I'd just like to make observations on a couple of pairs.... Please feel free to criique these 'cos as a newbie, I need the input......

Re post 1940

I have three short trades open on AJ, all taken by the EA, which were opened on 12th 13th and 14th June when the trend still looked like it was downward. They are all in the money, 267 pips in total, which is great.

Since then the price has consolidated and, looking at the weeky chart, the price is now sitting on a very significant level (show in blue on my charts) which dates back to the year dot.

The daily MACD has just turned up and the EA is now, in my (Newbie) opinion, correctly signalling for longs.

I know this is against the trading plan and I'm a little reluctant to do it, but I'll probably be closing my short AJ trades on Monday as I would feel better taking longs on this pair right now. I should really have done this on Friday as there may be a gap on the open later tonight.

Also, I'm long on the other JPY crosses so bringing AJ in line with them makes sense now. (As well as AJ, I am long on GJ and CJ)

On the EURAUD I see the following:

1. This pair has been on a long run up for the last three months.
2. I see Negative Divergence between the price and MACD on the daily.
3. The price has touched a weekly supply zone that has been observed for the last three years.
4. The Third screen EA is signalling for shorts, and I will be looking to take shorts from here.

I'd welcome any comments.

All the best.

Philbo,

Excellent post and I am in 100% agreement with everything you've said here including your analysis for AUD/JPY and EUR/AUD.

Good morning traders . It will be an exciting week for us.I noticed some Yen pairs have blue bars on MACD,like EUR/JPY and GBP/JPY.Also there's some spinning tops.

(I finally downloaded some easy software for screenshots. )

Thanks to 100 pips discover this system.
I am suffering losses now floating in EURJPY and GBPJPY, important losses.
What is not clear is whether to shut down operations when the 1D chart gives us contrarian signal, now MACD is showing confirmed trend change.

Thanks!

Boy - they never stop do they? You spray one with Raid and two more pop up out of the woodwork.

Hahahahaha

For now I will avoid yen pairs,despite they are my favorite pairs.But it's a bit foggy right now as we point out earlier.AUD/CAD doing great job.

First off I want to say how thankful I am for finding this forum. I have read the thread, and do not question its performance. I am thankfull to 100PipsADay for sharing his method and his Free EA. I have a question, on how this EA is working. I am wondering if there are still bugs or am I reading the indicators wrong? The reason I ask is because when NFP came out AUD got weak. We all know this much. But there was a clear signal for a buy since MACD daily was above 0 and Williams%R was oversold. With this in mind I should have had a buy when I loaded the EA on to the chart, but instead I got a sell. I am thankful it was a sell, because AUD is now getting stronger. I am just curious, if there are still bugs in the EA, and what people are doing if they are trading live? or am I just reading the system wrong? Like I stated before I am very appreciative of this forum, the EA, and the memebers, and have read the thread, but am questioning the logic behind it. This is the only way we can improve. Thanks.

Just wanted to make a few observations coming from a novice trader's point of view in hopes to help out the other newer traders using this method.

I took a hit last week on the AUD/USD. At first I was thinking I did something wrong. The 3SS strategy guidelines all lined up. Well as most of us know, the FOMC took some of us for a ride haha. My SL were hit. For a whole day I kept second guessing myself and the "trading plan"

But knowing I am still no seasoned expert I went back read the first post and the whole "path" on the Strats site again as recommended by 100pips. They use the term train and bus to describe trends on the bigger time frames and how it takes a lot to slow it down or stop it. The AUD/USD is a perfect example in my eyes as to this. It was in a down trend for a while. I had my buys lined up ready to go as I agreed with everyone else that the trend was looking to change and head back up. But the FOMC made the pair make a good "final hoorah" back down even more stopping me out(hence the hard to stop a train). Now the price on my hourly charts is in a fairly tight range. I personally am waiting for the trend to resume a bit more to hop back in but what happened last week was almost text book according to Strats/Dr. Elder/100pips strategies and methods.

So I sat out a few days to get my head straight because I was making serious pips all month so I know this method was working. I made ONE trade last night on the EUR/AUD and am up 100 pips just like that.

I just wanted to reiterate that this method works (so far for me) EXACTLY how it is explained. If you let the trades ride to SL, which I know can be hard, then that is your cue to be looking for either a reversal (PASR) or that the market stalled for a bit but possibly still heading in the same direction.

Once you make a few trades that hit SL and TP and look at the bigger pictures, it really all starts to come together. Thankfully, I was patient enough to use money management and I live to trade another day. Using this strategy for a month now, it really is quite crazy how simple it is. And personally, I have very little time at the moment to trade as I still work a lot and I still get lots of opportunities for entries.

Just stick to the plan.

Thanks for your reply.
I believe that with the high percentage of success and profitability strategy is proving we can enter any change in trend and not wait.
My experience tells me that we'll never know which is the best time or the worst time to wait, so I see a good option close the positions that we currently MACD 1D if we confirm the new trend.
If it is false, and turn again, we can close with little loss and ride the new trend quickly.

I have operations in EURJPY, GBPJPY that should be closed, as if he had cast what I mention now would have recovered much of the loss.

Thank you.

Hello everyone,

I've been following this thread and the other strategy thread posted by 100pipsADay and had a couple of questions regarding risk. If I wanted to limit the amount of risk I had while using the Third Screen Strategy would I want to lower the number of positions that the EA was allowed to open for any given pair? I believe the default amount is set to 8. I was thinking that lowering it to 4 may lower the amount of risk. Along the same lines, would increasing the amount of time between opening those positions help as well? I believe the default time that the EA must wait before opening an additional position for a currency pair is 6 hours. If I increased this to 24 hours would that minimize risk? Also do you think these two changes would change the strategy around too much? Perhaps setting the EA to use small lot sizes would be the best way to control risk?

Thanks!

"Perhaps setting the EA to use small lot sizes would be the best way to control risk?"

That and reducing the Max Trades to 6 would be the best solution. IMO

howdy folks

just to inform all that both usdjpy and gbpjpy have turned buy on the daily. iam already long on usdjpy. waiting for williams 1hr on gbpjpy.

got 70 pips out of daily dow today. entered via my mobile phone at work. took me just 3 minutes. set and forget. no need to be glued to the computer.

within 2 hrs target reached !

100 pips
what is your analysis o jpy pairs. do you think they are heading south ?

Hey there whatfx, you might want to check out this analysts report from UBS, one of the largest banks in the world.