Third Screen Strategy - Dr. Alexander Elder | Page 124 | Forex Factory

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Third Screen Strategy - Dr. Alexander Elder

  • #2,461
  • Jul 17, 2013 8:59am Jul 17, 2013 8:59am
Quoting claudia1
{quote} Pleased it's working pips and khaled put a lot of work in. Now try trading 150 opens on a live account. I have and its scary.
It IS on my live account.
Yes, drawdown is a bit scary...my negative record was -6,000 pips but it turned around to the current +11,000 pips.
  • #2,462
  • Jul 17, 2013 9:03am Jul 17, 2013 9:03am
Quoting Olarion1975
{quote} It IS on my live account. Yes, drawdown is a bit scary...my negative record was -6,000 pips but it turned around to the current +11,000 pips.
Wow well down I just trading five on this now (and normal day trading) the drawdown is scary once it starts going whoosh lol- saw pips down 30% or something one day last week on demo. Good luck.
  • #2,463
  • Edited 10:10am Jul 17, 2013 9:35am | Edited 10:10am
Number of pips (especially floating pips) is absolutely irrelevant. Final question is if on the last (or first) day of every month we can withdraw the sum of money that we need for living. Or we find out that at that moment our account happens to be 30% down and free margin is too small...
Also, let us not forget efficiency. Formula could be: money earned (NOT pips earned!) divided to market exposure. When having 150+ trades open, the market exposure (and margin involved) is terrible. So, we need the system to make very much money to our bank account (not trading account) on permanent and stable basis before we can call it a real success.
Time will show how it works. Let us see.
  • #2,464
  • Jul 17, 2013 1:29pm Jul 17, 2013 1:29pm
Quoting Indrek
Number of pips (especially floating pips) is absolutely irrelevant. Final question is if on the last (or first) day of every month we can withdraw the sum of money that we need for living. Or we find out that at that moment our account happens to be 30% down and free margin is too small... Also, let us not forget efficiency. Formula could be: money earned (NOT pips earned!) divided to market exposure. When having 150+ trades open, the market exposure (and margin involved) is terrible. So, we need the system to make very much money to our bank account...
Quick question for you Indrek, are you even trading this strategy on any type of account (demo or live)?

I've only seen you comment on other people's trades, pips, drawdown, money management, etc... but never about your open trades or accounts.

Just curious...
  • #2,465
  • Jul 17, 2013 1:30pm Jul 17, 2013 1:30pm
Quoting Indrek
Number of pips (especially floating pips) is absolutely irrelevant. Final question is if on the last (or first) day of every month we can withdraw the sum of money that we need for living. Or we find out that at that moment our account happens to be 30% down and free margin is too small... Also, let us not forget efficiency. Formula could be: money earned (NOT pips earned!) divided to market exposure. When having 150+ trades open, the market exposure (and margin involved) is terrible. So, we need the system to make very much money to our bank account...
Again, everything you say here has to do with Money Management! NOT the quality of a strategy or system that a trader uses. Think about it...
  • #2,466
  • Edited 2:01pm Jul 17, 2013 1:45pm | Edited 2:01pm
Quoting 100PipsADay
{quote} Quick question for you Indrek, are you even trading this strategy on any type of account (demo or live)? I've only seen you comment on other people's trades, pips, drawdown, money management, etc... but never about your open trades or accounts. Just curious...
Answer is partly yes. I use it for entries combined with my own approach but my trade management is totally different. Of course, I never paper (demo) trade and I never use EA for trading. Trading is my main job, so no waste of time and no BS allowed.
I have commented on some very important general aspects that people (beginners) should consider. And on some occasions I have given my comment when someone has asked for other people's opinion. That's it, no more ambitions
  • #2,467
  • Jul 17, 2013 2:14pm Jul 17, 2013 2:14pm
Quoting 100PipsADay
{quote} Again, everything you say here has to do with Money Management! NOT the quality of a strategy or system that a trader uses. Think about it...
For me, quality = efficiency. Market exposure should be as small as possible, result (in money, not pips) as big as possible.
Why not using same entries in more efficient way - 1 trade per pair with big lot instead of 8 tiny ones; quickly in and quickly out?
By the way, if everybody is trading the same way and main discussion is about how many floating pips anyone has on demo account then there will be no real development for the system.
  • #2,468
  • Jul 17, 2013 2:34pm Jul 17, 2013 2:34pm
Quoting Indrek
{quote} For me, quality = efficiency. Market exposure should be as small as possible, result (in money, not pips) as big as possible. Why not using same entries in more efficient way - 1 trade per pair with big lot instead of 8 tiny ones; quickly in and quickly out? By the way, if everybody is trading the same way and main discussion is about how many floating pips anyone has on demo account then there will be no real development for the system.
If you do not understand WHY trades are split up between multiple positions then you really do not understand this Trend Trading strategy at all... Assuming you have only 1 entry and price moves against you, now you are not able to open another position due to the fact that you've tied up ALL of your allocated leverage to one position. Is this really more "efficient" as you put it? I think not!

Quickly in and Quickly out: What do you mean by this? Do you mean like take 20 pips profit and exit your trade? Please explain...

It is obviously that not everybody is trading the same way and many here are trading live accounts. Is your "demo account" a shot at me? Please elaborate...

There have been 2 years spent developing this system! What else do you think needs to be done. I don't see you making any real contributions to the "development" of this system so to speak. Just comments here and there in regards to money management. Nothing real beneficial, just a bunch of "generalized" comments.
  • #2,469
  • Jul 17, 2013 2:48pm Jul 17, 2013 2:48pm
Important Point about the Third Screen Strategy:

We open multiple positions for each pair in order to get better entry points if price moves against us for a certain period of time. We are trading off of the Daily charts so entry points do not need to be exact as they would be if somebody was trading off of the M5 or M15 charts.

Also, when price moves in our favor by let's say 150 pips or so and then we see a 50 pip retrace and then H1 is showing "over sold" we get another position (or multiple positions) opened up as price has moved in our favor. Then price moves another 200 pips or so and then we see another retrace showing "over sold" conditions and we open up another couple of positions.

Then price moves another 50-100 pips and our first set of positions reach their Take Profit targets assuring us actual money into our account balance.

**Build positions, take profit, build more positions, take profit, build positions, take profit - This process is repeated over and over and over again until trend reverses on the D1 chart. You will not achieve these same types of results by trading only 1 position per pair any given time.

This system is no longer in "development stage" as some may like to put it. All of the kinks have been worked out and if coupled with proper money management it IS a very profitable strategy.

Trade it or don't trade it, but it really doesn't require any more tweaks or changes.

**If you want to trade another strategy, go somewhere else.
**If you want to make changes to this strategy, go somewhere else.
**If you want to talk about generalized money management, go somewhere else.
**If you want to make comments about "demo" accounts, go somewhere else.

NOBODY here is entitled to post their live brokerage / bank accounts in order to prove anything to anybody. Demo accounts show everything necessary to know if a strategy is profitable or not, especially when trading from the Daily time frame. We are NOT scalping so "tight" spreads do not matter. Also, liquidity issues are not a concern due to the fact that we are trading from the D1 time frame.
  • #2,470
  • Edited Jul 18, 2013 1:26am Jul 17, 2013 3:09pm | Edited Jul 18, 2013 1:26am
Quoting 100PipsADay
Assuming you have only 1 entry and price moves against you, now you are not able to open another position due to the fact that you've tied up ALL of your allocated leverage to one position. Is this really more "efficient" as you put it? I think not! Quickly in and Quickly out: What do you mean by this? Do you mean like take 20 pips profit and exit your trade? Please explain...
I mean trading in "usual" way - with reasonable SL and TP and setting the trade to BE at reasonable point. I usually set BE after three candles have closed and opened under/above my entry.
This way I keep only the best and faster moving trades open longer term and get quickly out of bad ones. So, I do not need a huge account for even making my living. $10,000 is more than enough if using leverage 1:200 or more. (I would never accept less than 1:200.)
Also: if taking entries like you have shown, we would very rarely have a loss before we can set BE.
I have always said that I like the entry strategy. But I cannot accept the idea of keeping good trades through huge drawdowns instead of closing them at optimal profit and waiting for new entry possibilities.

If someone is interested, we could open another thread to discuss alternative trade management methods using the same entries.
  • #2,471
  • Jul 17, 2013 3:13pm Jul 17, 2013 3:13pm
Quoting 100PipsADay
{quote} If you do not understand WHY trades are split up between multiple positions then you really do not understand this Trend Trading strategy at all... Assuming you have only 1 entry and price moves against you, now you are not able to open another position due to the fact that you've tied up ALL of your allocated leverage to one position. Is this really more "efficient" as you put it? I think not! Quickly in and Quickly out: What do you mean by this? Do you mean like take 20 pips profit and exit your trade? Please explain... It is obviously...
First thanks for the reply to the pm I will do just that. Second you letting them get to you again chill out go make some money!!! Thanks.
  • #2,472
  • Jul 17, 2013 7:57pm Jul 17, 2013 7:57pm
Quoting 100PipsADay
Important Point about the Third Screen Strategy: We open multiple positions for each pair in order to get better entry points if price moves against us for a certain period of time. We are trading off of the Daily charts so entry points do not need to be exact as they would be if somebody was trading off of the M5 or M15 charts. Also, when price moves in our favor by let's say 150 pips or so and then we see a 50 pip retrace and then H1 is showing "over sold" we get another position (or multiple positions) opened up as price has moved in our favor....
Well said And clear my friend go ahead man

have a good day
  • #2,473
  • Jul 18, 2013 12:13am Jul 18, 2013 12:13am
100pips,

I have made an observation and would like your thoughts on something.

I know the CADJPY, NZDJPY, EURAUD, GBPAUD, NZDUSD, AUDJPY pairs are your best performing.

Could this perhaps be, not only because they trend well, but also because these pairs aren't as affected by High Impact news announcements as other pairs, such as the higher liquidity majors, and so on?

I mean, this pairs aren't focused on very much by people. Would this give them an advantage by avoiding the crazy news volatility and big-player manipulation, allowing them to calmly continue on their 'natural' path?

Thanks.
  • #2,474
  • Jul 18, 2013 1:13am Jul 18, 2013 1:13am
Hi 100PipsADay,

is there a reason why you closed your open positions in your demo #1 account?
  • #2,475
  • Jul 18, 2013 2:07am Jul 18, 2013 2:07am
Quoting Olarion1975
Hi 100PipsADay, is there a reason why you closed your open positions in your demo #1 account?
I will be trading another live MT4 account starting next week so I'm freeing up some ram on my computer. This will only be temporarily though as I am looking at getting another desktop computer to compliment my current setup later next week.

Will put it back online again sometime next week

**It had nothing to do with current market conditions, I promise!**
  • #2,476
  • Jul 18, 2013 2:09am Jul 18, 2013 2:09am
Quoting Axlz
100pips, I have made an observation and would like your thoughts on something. I know the CADJPY, NZDJPY, EURAUD, GBPAUD, NZDUSD, AUDJPY pairs are your best performing. Could this perhaps be, not only because they trend well, but also because these pairs aren't as affected by High Impact news announcements as other pairs, such as the higher liquidity majors, and so on? I mean, this pairs aren't focused on very much by people. Would this give them an advantage by avoiding the crazy news volatility and big-player manipulation, allowing them to calmly...
Axlz,

This is a very good observation and you may in fact be right. Often times the USD has the biggest impact on other currencies so maybe this is why we see the "natural" direction occur with above mentioned pairs.

However, I really do not know for sure. It's just the way it is...

I do know that USD/JPY and the JPY cross pairs are notorious for their "trending" conditions more than often which is why I enjoy trading them on a consistent basis.
  • #2,477
  • Jul 18, 2013 2:21am Jul 18, 2013 2:21am
Quoting 100PipsADay
{quote} I will be trading another live MT4 account starting next week so I'm freeing up some ram on my computer. This will only be temporarily though as I am looking at getting another desktop computer to compliment my current setup later next week. Will put it back online again sometime next week **It had nothing to do with current market conditions, I promise!**
Ok, thanks for the explanation.
  • #2,478
  • Jul 18, 2013 2:30am Jul 18, 2013 2:30am
100pips,

I apologise for taking up more of your time, but I have another question.

I have been using this method for a while, and it is excellent (thanks to you), and requires minimal attention everyday.

That is fine.


And I also know you are a very profitable and experienced trader, who does it for a living, with lots of $$.


What would be your advice to a young (18 years old) aspiring professional trader such as myself?


My question specifically, is that even though I've proved over 1-2 months that this is making me profit on my live account, I feel as though to be one of the best traders, I should optimize my trading time. Studying hard, and constantly improving is necessary, as I'm sure you would agree.

This method requires, as I said, minimal attention, and I have a lot of free time.


Can you recommend me any other trading methods, that you would PERSONALLY recommend I should trade, whilst using this strategy on the side over the longer term?

I trust your opinion, and I don't care what kind of strategy it is, because I know someone as good as yourself, would only recommend strategies that he truly believes in. And I have come to trust you, so I would appreciate your opinion on what I should do regarding this.

THank you so much.



EDIT: I have already read so many books/literature on price action/SR. I am comfortable in this field. I am more so asking, what strategy specifically, do you recommend I trade along with the 3S Strat?



Thank you
  • #2,479
  • Jul 18, 2013 6:44am Jul 18, 2013 6:44am
Quoting Axlz
100pips, I apologise for taking up more of your time, but I have another question. I have been using this method for a while, and it is excellent (thanks to you), and requires minimal attention everyday. That is fine. And I also know you are a very profitable and experienced trader, who does it for a living, with lots of $$. What would be your advice to a young (18 years old) aspiring professional trader such as myself? My question specifically, is that even though I've proved over 1-2 months that this is making me profit on my live account, I feel...
Axlz , Sorry for interfere , U can try Trading Made Simple , They are very good but i prefer T S S as its the most stable of all , Also Still Basketting but u need big bucks to make it work , I am starting on T S S at end of this month with proper M M . Malcolm .
  • #2,480
  • Jul 18, 2013 7:00am Jul 18, 2013 7:00am
Quoting terminator12
{quote} Axlz , Sorry for interfere , U can try Trading Made Simple , They are very good but i prefer T S S as its the most stable of all , Also Still Basketting but u need big bucks to make it work , I am starting on T S S at end of this month with proper M M . Malcolm .
Thank you for your suggestions, but I am primarily look for 100pips' opinion.

His experience, knowledge, and familiarity with the 3SS, I trust will give me a good idea of what to trade in combination with it. Perhaps he even does it himself.
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