Elite Trading Method

Click here and read this before going further


We all who susbcribe to this thread will call ourselves "Elite Traders", the short form is "Elite" and plural of this short-form is "Elites".

I am the very first Elite and invite whoever wants to join Elite Group of Retail Traders. Very soon one of you will be the Grand Elite and that "selection" (not election) will be as a result of performance evaluation based upon how good that Elite followed the Elite rules of forex trading.

All Elites will be given a set of trading rules called "Elite Rules of Forex Trading". An Elite is expected to follow these rules without making any change thereto. No Elite, including the Grand Elite will have the power to amend these rules. These rules are final. However, Grand Elite will have all the authority relating to interpretation and guiding other Elites in application of these rules.

My this post and this thread revokes all my previous posts and threads. Any methods given, opinions and views expressed in my previous posts stand null and void.

Following are the trading rules. After reading these rules, few of you may under-estimate profitability of Elite Trading System. The only thing I can say regarding this is that what would you think of a person who throws away the Holy Grail after finding it only because its too old, discolored, have cracks, broken at few palces and not very hygienic to drink anything from it? ............. Holy Grails don't sell at Walmart and if you find it, great chances are that it is how it would look like but its historical importance will remain intact, it will still be the Holy Grail.

Elite Rules of Forex Trading

The Concept

Definition:

“Equity” constitutes Capital introduced into the forex account plus Realized Gains minus Realized Losses.

Forex Trading is a high-risk venture indicating that risk-management should remain the prime element in forex-Trading. Therefore, risk-management takes precedence in any and everything done following these rules. All and every decision, including, but not limited to, entry, exit, setting stop-losses and take-profits, timing of the trades, length of a trade in number of pips, and the amount of equity risked should be made considering the risk involved and associated benefit expectation. These rules place equal importance to the risk taken on equity and unrealized profits.

Elite Trading Method

Basics

Definitions:

“Key Price Levels” constitute major Round Numbers; Historical Levels like Opens, Closes, Highs and Lows; Support and Resistances that have been repeatedly tested, and 50% Fib. Retracement and Extensions.

“Times of high market activity” means points of time when market makes rapid moves. These times could last from few minutes to several days, depending upon the timeframe one uses to trade.

Elite trading method is not strictly Statistical Arbitrage or Hedging, but seeks to benefit from temporary fluctuations in currency prices.


Entries, Exits and SLs

Abbreviations:

PA = Price Action, SL = Stop-Loss, TP = Take Profit

Let PA make a move and then bounce 50% or more. Enter on this bounce in the direction of the move. TP 100% Fib Extension (point of bounce is 50%).

Example: If euro falls from 1.3900 and gets a 50-pip or bigger bounce from 1.3800, short this bounce anywhere from 1.3850 to 1.3900 with a profit target of 1.3700. Stop Loss (SL) few pips above 1.3900. Typically, for 0.25% risk, the reward would be 0.75% or more.

Suggested TP size is 45 pips as it reduces spread ratio but not mandatory becuase any factor can affect this market at any time.

Risk per Trade

Risk per trade not more than 1/4th of 1 per cent of equity balance just prior to taking a trade.


Risk Management in General

Trade one pair only

No more than one trade running at a time

Consistent application of this method without fail

The Second...

Sounds good!!! Lets roll !!

cheers!

I'm In! Let's see where do we go from here.

this is exactly what this bullshit forum needed ,go chicky go

Yeah Chicky, go on please. I kept waiting what the rules are going to be. The concept is very interesting, thigs like this help you to be disciplined.

Will this be trading rules or moral rules...

would like to learn the trading rules....

thanks

Chicky has years of experience, if I can learn a little bit of what he learn and went through for the past year , Im in

Thanks for visiting this thread.

I am writing the trading rules.

Just to let you know what I am writing, here are first few paragraphs of the draft.

Elite Rules of Forex Trading

The Concept

Definition:

“Equity” constitutes Capital introduced into the forex account plus Realized Gains minus Realized Losses.

Forex Trading is a high-risk venture indicating that risk-management should remain the prime element in forex-Trading. Therefore, risk-management takes precedence in any and everything done following these rules. All and every decision, including, but not limited to, entry, exit, setting stop-losses and take-profits, timing of the trades, length of a trade in number of pips, and the amount of equity risked should be made considering the risk involved and associated possible benefit. These rules place equal importance to the risk taken on equity and unrealized profits.

Elite Trading Method

Definitions:

“Key Price Levels” constitute major Round Numbers; Historical Levels like Opens, Closes, Highs and Lows; Support and Resistances that have been repeatedly tested, and 50% Fib. Retracement and Extensions.

“Times of high market activity” means points of time when market makes rapid moves. These times could last from few minutes to several days, depending upon the timeframe one uses to trade.

Elite trading method is not strictly Statistical Arbitrageor Hedging, but seeks to benefit from temporary fluctuations in currency prices ONLY at 1) key price levels, 2)during the times of high market activity, and 3) times when Price Action seeks to install at a certain level just prior to a Session Start, a Session Close, either in anticipation or as a result of major news/data releases, and on getting close to or hitting a Key Price Level.

For those who think its a scam, I give my full paritculars below

Name: Chicky
Date of Birth: September 2008
Place of Birth: Forex Factory
Spouse: First, Second, Third, Fourth and Fifth ............... so far
Address: www.forexfactory.com

I would put a stop at 1.3845 for Eur/USD and go short for 1.3500 target.

You struggle with your trades, and let me write the rules.

Sounds interesting. I'm open to this idea Chicky.

Elite Rules of Forex Trading

The Concept

Definition:

“Equity” constitutes Capital introduced into the forex account plus Realized Gains minus Realized Losses.

Forex Trading is a high-risk venture indicating that risk-management should remain the prime element in forex-Trading. Therefore, risk-management takes precedence in any and everything done following these rules. All and every decision, including, but not limited to, entry, exit, setting stop-losses and take-profits, timing of the trades, length of a trade in number of pips, and the amount of equity risked should be made considering the risk involved and associated benefit expectation. These rules place equal importance to the risk taken on equity and unrealized profits.

Elite Trading Method

Basics

Definitions:

“Key Price Levels” constitute major Round Numbers; Historical Levels like Opens, Closes, Highs and Lows; Support and Resistances that have been repeatedly tested, and 50% Fib. Retracement and Extensions.

“Times of high market activity” means points of time when market makes rapid moves. These times could last from few minutes to several days, depending upon the timeframe one uses to trade.

Elite trading method is not strictly Statistical Arbitrageor Hedging, but seeks to benefit from temporary fluctuations in currency prices ONLY 1) for moves that occur at or near key price levels, 2)during the times of high market activity, and 3) times when Price Action seeks to install at a certain level just prior to a Session Start, a Session Close, either in anticipation or as a result of major news/data releases, and on getting close to or hitting a Key Price Level.

Entries, Exits and SLs

Abbreviations:

PA = Price Action, SL = Stop-Loss, TP = Take Profit

Elites enter a trade only and only after these conditions are met. 1) PA has established a support or resistance that is used to position initial SL. 2)PA has moved a distance of at least 50% towards an Elite’s profit target and it has bounced back at least 50% of that distance.

Example – A, Situation #1: If PA has established 1.3800 as resistance and an Elite thinks it could now drop 300 pips up to 1.3500. The level 1.3500 is the profit target or TP. Elite will now wait until it reaches at least 1.3650 (150 pips). At or below 1.3650, Elite will look for a bounce. Suppose PA bounces from 1.3620, the Elite won’t go short until pa bounces 50% of the distance traveled, that is at 1.3710.

Calculation: 1.3800-1.3620 = 180 / 2 = 90 pips, 1.3620 + 0.0090 = 1.3710.

The Elite can go short anywhere from 1.3710 to 1.3800 after this bounce. The SL remains at 1.3800.

Example A, Situation #2.

Definition

“Significant Bounce” is a bounce no less than 50% of the move

If PA bounces significantly before 1.3650 profit target of 1.3500 becomes invalid and revised target is calculated by using 50% Fib Extension or simply adding the number of pips it traveled from 1.3800 to the bounce. Suppose, PA drops from 1.3800 and gets a significant bounce at 1.3688 moving up to 1.3780. The revised TP should be 112 pips deducted from 1.3688 or 1.3576. The SL remains at 1.3800

Calculation: 1.3800 – 1.3688 = 112, 1.3688 - 0.0112 = 1.3576

Example A, Situation #3.

If PA does not bounce significantly before 1.3650 profit target of 1.3500 becomes invalid and revised target is calculated by using 50% Fib Extension or simply adding the number of pips it traveled from 1.3800 to the bounce whenever and at whatever level the bounce occurs . Suppose, PA drops from 1.3800 and gets a significant bounce not before 1.3400, moving up to 1.3600. The revised TP should be 400 pips deducted from 1.3400 or 1.3200. The SL remains at 1.3800.

Calculation: 1.3800 – 1.3400 = 400, 1.3400 - 0.0400 = 1.3000

Risk per Trade

1/4th of a percent of account balance just prior to taking a trade.

Risk Management in General

Trade one pair only

No more than one trade running at a time

Minimum initially anticipated size of the move no less than 45 pips

Consistent application of this method without fail

No bullshit on Chicky’s thread (This is a major risk management technique)

Charts are always not what they appear to depict
It looks on Daily Timeframe that this trend has yet to show a significant bounce, but how do we know if PA did or did not significantliy bounce on this particular day? ............................... of course, by looking at a smaller time frame.

I don't know what pa did on that particular day, but the point is, don't let charts deceive you. Do your homework before jumping on a trade.

The FOMC did not announce SepTaper on Sept 18th. Everything rallied against the US Dollar that day.

I don't see any market sentiment triggers in trade entries or exits, only based on historic price action. Are we to just trade the off the charts?

It is OK to abandon a trade half way and go for a better opportunity. But do remember to first check the risks and benefits. The key is better "assurance" (Oooooooooops! there is no such thing in forex), I mean "more confident" trade.

Under this method, profit in $ terms remains the same if you go for a 45 pip move or 45,000 pip move............. smaller the move you go for, better for your broker.

Poll is on page 1, in case you want to reconsider your decision of joining or staying away from being an Elite

Yes, only off the chart, but keeping an eye on news, etc are very important. Please remember that this methods aims to gain from temporary price fluctuations. You may like to check the first part of the rules.

Basics

Definitions:

“Key Price Levels” constitute major Round Numbers; Historical Levels like Opens, Closes, Highs and Lows; Support and Resistances that have been repeatedly tested, and 50% Fib. Retracement and Extensions.

“Times of high market activity” means points of time when market makes rapid moves. These times could last from few minutes to several days, depending upon the timeframe one uses to trade.

Elite trading method is not strictly Statistical Arbitrageor Hedging, but seeks to benefit from temporary fluctuations in currency prices ONLY 1) for moves that occur at or near key price levels, 2)during the times of high market activity, and 3) times when Price Action seeks to install at a certain level just prior to a Session Start, a Session Close, either in anticipation or as a result of major news/data releases, and on getting close to or hitting a Key Price Level.