The perfect trading system

Fear of War: USA & Western World Vs Syria & Russia +-(China)

The Market is driven by FEAR and GREED. Here are examples of fear candles. The PA never lies. Knowledge is a critical factor in the survival of the retail trader. Is the fear justified or an opportunity for "Big Boys" to take the small players for a ride? Time will tell!

EURJPY - Fear of War

Sorry what does PA mean?

PA = Price Action i.e the directions of the candles bullish and bearish.

Hi Mr Articulate,
Hope well and everything is ok.I have read all of your posts here. The concept i find out total genius mind set how to look at the forex market.I am very happy you are coming to focus this trading point.Why is not i called it a perfect trading system. Of course it is.However i am facing problem with the stop loss issue.The thing you suggest 200 pips or not.I am now working with 100 pips and here Mr. Chia works with 150 pips. To put on stop loss what matter you consider? Can you share your valuable experience and explanation to us? Do you mind to share it?
Please reply.
Regards.
Happy trading all.

Hi Articulate,

Do u have a thread that summaried your trading procedure in detial?
Since there is 57 pages sofar, i'm very confused .

thx a lot

MONTHLY UPDATES & OUTLOOK - SEPTEMBER 2013

I reproduced hereunder my update for last month posted on August 9, 2013. The situation has not changed. These pairs are still consolidating with the same range. Most of the pairs are trading in the upper levels of the consolidation while some are trading in the lower levels. Following the direction of the weekly candle while using 50PPAA you can pick few hundreds pins within this range. I attach herewith the monthly, weekly and H4 charts for some of these pairs starting with the monthly for GBPJPY.


The following are some of the reasons why I have not been posting here regularly for the last few months:


1. GBPUSD 926 pips - 7 months

2. EURUSD 968 pips - 7 months

3. USDJPY 991 Pips - 4 months

4. GBPJPY 968 Pips - 4 months

5. EURJPY - 891 Pips - 4 months


It is obvious from above information that these pairs have been consolidating within about 1000 pips range for the past 4-7 months. In essence, nothing spectacular has happened in the last 4-7 months for most of these pairs. I will post the monthly and weekly charts for these pairs. Look at the synchronized pattern of the Yen pairs. Price movement is not random and until a trader understand the bigger picture, he or she will always be chasing shadows

Weekly chart - GBPJPY

H4 chart - GBPJPY

EURJPY - Monthly

EURJPY - Weekly

EURJPY - H4

GBPUSD - Monthly

GBPUSD - Weekly

GBPUSD - H4

@Fatunde,

Search for Articulate's Masterchart on ForexFactory. On the thread I concentrate only on Masterchart.

@Ariful Mamun,

This is my post on stop loss which I reproduced here. My view has not changed. Do not risk more than 2% of your account for a trade i.e. if your account size is $100 your stop loss per trade should be $2 and $20 dollars for $1000. etc. You should know how to calculate this.

However let me use this opportunity to throw more light on 200 pips stop loss. 200 pips stop loss is for long term trades (where you are looking at least 400 pips profit) and only applicable if you trade in the direction of the weekly candle in these 2 instances:

1) 1st class trades - after every 1000 pips move
b) 2nd class trades - from the point the weekly candle turns bullish/bearish

Let me illustrate this with these two charts. The first chart is for 1st class trades and there is only two trades in the last 5 month. The blue lines are the stop loss line which have not be touched for the past 5 months.

The second chart is for 2nd class trades with 3 buy/sell opportunities. As you can see from the points the weekly candles turned either bullish/bearish 200 pips is safe distance on the three occasions. If you find 200 pips loss trade management too complex for you, stay with the classic 2% maximum stop loss per trader.

I hope you and other traders will find this post useful.




I have watched with keen interest the debate between you and Mr.chia on stop loss and I thought I should intervene to clear the air. My view on stop loss is that you should not risk more than 2% of your account on a trade. The pips will depend on the lot size you trade. Secondly, I believe if you trade in the direction of the weekly candle a trade can never go against you by as much as 200 pips. Where this happen, you don't have any business staying in such a trade.

Having said above, you should understanding that trading is personal. Therefore, you free to pick what is best for you on this thread and adapt it for your use. Mr.chia is there free to choose between 200-500 pips stop provided, he understanding what he is doing and its work for him.

I hope my intervention clarifies the matter for you and other following this debate.

STOP LOSS 2


The second chart is for 2nd class trades with 3 buy/sell opportunities. As you can see from the points the weekly candles turned either bullish/bearish 200 pips is safe distance on the three occasions. If you find 200 pips loss trade management too complex for you, stay with the classic 2% maximum stop loss per trader.

Thanks Articulate for your clarification

Olu

MONTHLY UPDATES FOR OCTOBER


GBPJPY and GBPUSD made significant moves in September. The pairs moved out of the range they have been trading for last 4-7 months and attacked their next Masterchart levels at 1.63000 and 160 respectively. Some of the other pairs are trading with this same range. As a mentioned last month most of the pairs are trading in the upper levels of the consolidation while some are trading in the lower levels. Following the direction of the weekly candle while using 50PPAA you can pick few hundreds pins within this range. I attach herewith the monthly, weekly and H4 charts for some of these pairs

USDJPY Monthly and Weekly Charts