Magic-Breakout (optimised) with PPA - a new beginning

Hi everyone

Interesting morning and a couple of things happened - I'm glad they did because we can learn from it!!

FIRST if you do follow my thread you will have heard me say that I don't normally trade on a Monday. Monday trading conditions are very often choppy and often trend directions change and this is exactly what we've seen today! TWO reasons:
1/ Friday is very often a big move day (as we did see on EUR/GBP related pairs) and the result is that the next trading day is choppy and/or we tend to see "consolidation" type conditions
2/ The "big boys" are just starting their week and probably still deciding which way to put their money into the market


SECOND I have mentioned the "price_bounce_off_ma" expert advisor further back on the thread, but not yet for this strategy. Well I set it up on GBPJPY and Gold 5 min chart to take trades off the 12 ema. Of course I should not have set it up to trade on GBPJPY because the currency indis were wrong. Also there was no retracement bounce off our ema's above the Asian box! Anyway, it automatically picked up the sell-off downwards (and picked up a few XAUUSD pips too). A very nice ea (let me know if you need the settings).

Hi everyone

Of course the best pair to trade today (if we wanted to trade on a Monday) - which I completely missed I'm afraid - was GBPUSD (see attachments) which went into a lovely uptrend in the afternoon.

This can be a big problem - for me especially! - missing out on a good trade because one can become completely transfixed on the wrong trading pair. How to get around it? Well I was wondering if we should make an effort to concentrate more on our "forex power" indi. What is consistently showing up during our trading day as really weak (a very weak currency turns red on the indi). Well today for instance it was USD so obviously pairs like GBPUSD were the ones to trade!

TRADE PRE-PREPARATION/RESEARCH is vital

Hi everyone

EUR was weak today
AUD was strong
GBP still very strong

Hi everyone

I have again amended the rules to give new followers of our strategy an easy "step-by-step" set-up each day. Just follow the instructions - and a LOT of PIPS will come your way in 2014. Just download the attached file, print it out and keep it next to your computer. If you want, demo trade it for a week or two so that you get into the strict habit of following the rules!

So Guys let's be prosperous this year - no reason now at all why we shouldn't!

P.S. Do remember to ALWAYS use strict MM rules - please do bookmark this webpage: http://www.truemoneymanagement.com/calculator put in your account size and 2% as your risk and 20 pips as your SL = lot size


P.P.S. if you trade the strategy please do post some feedback on this thread. Thank you!

Morning everyone

EJ
AU

bouncing off 28 ema - set up ea if you want

Hi everyone

Well it's "money for jam" don't you think??


Could have added GJ to the our set up as well.

Nice morning for JPY and AUD was weak.

Gold got traded to death last night (I took a few pips!) and today it's going nowhere

Hi everyone

Well as you can see, we're over 300% up - THE SYSTEM WORKS - even the skeptics will have to concur!

Anyway the question arises - what do we do when the trend is so strong that we don't get a bounce, i.e. price action is not anywhere near even the 12 ema on the 5 min chart??


Well, it's not something that I would generally encourage but if you want, GO DOWN TO THE 1 MIN CHART (see attachment) if price action seems to be respecting either the 12 or 28 ema's, we can open a trade - usual SL / TP and exit rules.

Hi everyone

I have changed the range trading indi and also I have a nice ea which closes your trade when price action breaks through your key ema (for instance the 28 ema on 5 min chart). Will post them over the weekend


Not much to recommend this morning as we've had huge trading during the night as well a lot of reversals on the daily chart

Hi everyone

I was out this morning and missed a lovely setup on GZ - remember how I mentioned that our Asian high/low "box" can very often be a great place or area to bounce a winning trade with only a small SL needed!! (see attached chart) JUST SHOWS THE IMPORTANCE OF SETTING UP ALERTS

Well I hope any followers of our thread are enjoying a whole new trading experience!


Just wanted to mention that I if you have a 5 digit broker, you rather need to use the daily trading range indi I've attached below. I'm also using it now because I have 5 digit.


Looking at our GBPNZD example above, as we know from our rules, one can use breakthrough of one of our key ema's to close our trade.I must say that I like this method because it allows the trade to run as far as possible. As I mentioned above, it's possible to set up an ea to do it automatically. I think it's a very good idea to use it because it takes emotions out of the picture and removes the danger of giving in to the urge to close out a trade way too prematurely! Anyway I have attached the ea for you below:

Guys if anyone is using or has attempted to use our new magic breakout daily/15 min chart strategy - even if you had problems with it - please do post your comment here so that we can analyze what might be wrong and ALL can learn from the experience


I think what we can also do over the weekend is have a look at the various trading pairs - try to work out which ones are best for THIS system - makes a difference which pairs you trade - really does!!

Hello jmtini,

Been reading your thread, very interesting. I have downloaded your 15m and Daily templates but they do not match your templates above. Could you kindly upload your latest templates and indicators that you are using. I would like to try this. Thank you.

Cheers,

Downloaded the latest ones, will follow this and see how it goes. Best of luck to you for 2014!

Cheers,

Hi OwenMoney

That's great to hear! - Sorry about the template difference. Yes I have amended the templates again slightly. So everyone needs to download the new templates below. (Remember to ditch the "Batfink daily range" indi and download the "TSR ranges" indi if you have a 5 digit broker)

PLEASE EVERYONE NOTE that I have changed the "TSR ranges" indi to only show the previous day's ranges and got rid of the "suggested trade" readout. The amended one is posted below - you need to download it along with the new templates below.

Also I done a separate daily chart template for XAUUSD (Gold) because the "forex power" currency strength indi does not include XAU so I have changed it to include XAU solely for the XAUUSD trading pair. Of course if you don't want to trade Gold don't worry about downloading it.

Hi everyone

A very good exercise to do (I've done it!) is to compare your OLD trading practice with what you would do NOW with our new system.

For instance, on 12th November last year, I was trading Gold late afternoon (European session) and was BUYING Gold because I really thought (as plenty others did too) that 1275/1270 was an important support level. If I had been trading our new strategy, one can see from our Daily/15 min combo charts on that afternoon it was KAMIKAZI and very easy to see that our sell setup would have worked perfectly.

The other thing which makes our strategy so good is that it often will SAVE ONE FROM TAKING A BAD TRADE. Have a look at the AUDUSD 15 min chart (below) from last Friday - note that the daily range indi told us that the pair had maxed out overnight so the day's trading was bought to be choppy - even dangerous! So it proved. You can be sure that many punters bought AU on Friday which is why it dropped so quickly.

Hi everyone

AMENDED RULES FOR OUR STRATEGY

Please amend Rule No.s 6 & 7 :

6/ Look for a good point to enter a trade on a bounce off the 12 or 28 ema or Asian session box on the 15 min chart. A bounce off the 12 or 28 ema must be above/below Asian session high/low box.


7/ If the trend looks really strong, go down to 5 min chart to look for a good bounce. Again, the bounce off the 12 or 28 ema must be above/below Asian session high/low box.


Guy's - the reason for the above is to quite considerably bring down the risk of being caught out by the occasional FALSE BREAKOUT

Hi everyone

Well it's a typical Monday - not good

EURAUD - up but long way away from a trade

GBPNZD

Possible on 5 min off 12 ema

Setting up ea for a go

Hi everyone

Yesterday was a dud and I should not have traded GBPNZD - I broke the rules of our system and PAID THE PENALTY!!

Messing around today a bit as there has been no signal from our system


However this afternoon looks good for GBP (strong) against AUD (weak)

Possible EURAUD as well a bit later on


Look for a set up on 5 min charts if the trend strength continues

Hi everyone

Well yesterday was a dud - no signals

Today looks much better. Looking to take off:

GBPAUD
XAUUSD
GBPJPY

Hi everyone

Well it was not a good trading week as a whole as the daily trading ranges were way below average except for Friday.

However, if we were trading bounce re-tests (see post 298,301,304,305 as an example) then we might have had a load of pips!