Alien's Extraterrestrial Visual Systems

Looking at the longer time frames it is clear that EJ will go long soon...remember what Alien said though as the 1 minute and 5 minutes lead the longer time frames they will need to bottom out first. Both time frames are busy trying to reach the bottom so I would say when the markets open there will be a fall first to complete the cycles before going long. Wait for ADX expansion first though as they could bounce around on the bottom for a while before going long....Just to frustrate those like myself who can't sit on their hands long enough.

I still think the best way to profit from this system is to go for smaller wins and concentrate on less pairs.

Looking at the Oanda statistics the people who are making money are only taking 6 to 14 pips profit on each trade......Maybe these stats are telling us all something to ponder over!

Nothing at all Alien loll


but if i want to learn i have to calm down, and not forget that patience is a rule to promise and fulfill

What's the currency in this chart Alien?

you mean the longer trend is short?

It does not matter in your screenshot, since there is an identical divergence in the green stochastic. I would like to point out though that Alien has mentioned that he only uses regular divergence for the RSIOMA, as hidden ones are less reliable in his experience. Not going to excavate the thread for this remark, you'll have to trust my notes

Happy pippin'!

A while back I went through fxcm's stats, the results there are similar. What struck me is that the average losing trade is much bigger than the average winning trade, while the average trader DOES manage to have winrates above 50%.
what this tells me is :
-average trader chickens out too fast when he is proven right and takes his small profit instead of letting the trend ride with decent stoploss management
-average trader places his stop too far off OR enters too large positions with a small stop

---> the average fxcm/oanda trader seems to have never heard of riskmanagement and has no real idea how to work with risk/reward ratios. Despite having decent % of winning trades, poor understanding of the risk/reward+winratio combo keep them from being profitable.

By now you guys are thinking "marry your damn riskmanagement and leave us", but I remain convinced that managing risk is at least as important as being right about the direction of the trade.

The threadfollower with the trade explorer (jeffmichaels? gotta check later EDIT : yep, jeffmichaels, thanks for sharing dude...) has a winrate of about 80% for January. Still, if he takes home less than 1 pip for every 4 pips he risked (put his stoplevel at), he will still lose in the long run. This is not the case for him (20ish % profit, nice!), and it's still a bit more complicated than that, but i just want to drive home the point that winning often isnt enough, you have to win enough and do it often enough.

I agree with you totally Yaysayer risk management goes hand in hand with making profits......and anyone who tries to bypass this step will find out to their cost....consistent profits is what we are all after. I just wonder how people can make a profit on 6 pips ... How big would the stop loss be? As if it is 6 pips also wouldn't they be stopped out a lota lot

If the 6 pips is the average win of the profitable traders I'd be baffled. That would indicate enormous winrates of 75% if they put the stop at a mere 20 pips, and that's hardly breaking even.

My guess is the stat is the average winning trade of all traders. A profitable trader would make a lot more pips than 6 on his winners, and have the stopstrategy to go with it. The 'losing' trader is the one with too large stops, and too small profit. Since the gospel goes that 95% of traders lose money, i suspect that the 5% winning traders just aren't with enough to influence this 6 pip average much. It would indicate that the big (losing) majority closes even before 6 pips is reached though.

It's nice going through stats like that, I like how you can spot the pitfalls and have more chance of avoiding them

I am currently testing an optimum level that I am comfortable with... It will be between 14 and 20 pips. The only pitfall with this is when I am at work I can't monitor the trades properly and end up missing the best trades.

I can't wait until I have the freedom to work from home... I would be making a killing everyday with aliens system

What I have noticed with a majority of trades is that they reverse a little before going in the expected direction. We need to use this to our advantage especially if you are going for a small amount of pips each time. My personal strategy is developing nicely ,,,,I will use it full time later this year if I am made redundant

it depends on what TF i'm working and the volatility at that moment, I prefer looking at stops per trade, not a fixed amount of pips but a fixed amount of capital at risk.. Switched recently from swing high/low stop positions to ATR stops : 2 ATR for grade A trades, 3 ATR for the lesser ones (and much smaller lotsize).

It is good that we are trying different ways of using this great method ....later we can compare profitability over an extended period and confirm the best way for us beginners until we can use aliens method to its fullest extent ...as it is going to take a while for us all to master

It's a Tie............

i ll have to say that i ts what works for me so far also.

You're welcome dude. I put up the trade explorer for everyone to see mainly for myself, i have a tendancy to overtrade and the idea that my dumb*&* trades are shared sorta helps cutting down on them. I'm trying to trade this demo account as i would a real 10k account rather than how i traded many minor account into the ground because well .... who has the patience to trade a 100 $ account into 250k in 2 years doing 10% a week for 2 years. Which would be possible at the rate I'm doing, but ... past results yadiyadiyaa and then cost of living, greed, fear, etc. But the if you could achieve these results and take out half profit monthly you'd be making 24-30k first year ending with an account size increased about the same. (i've simplified this 10% a week math to taking out 20% on monthly basis, and keeping 20% in account without even accounting for compound, sry FerruFX )

Still there are horrible entries in there that I should not have taken and exits and even reversals as well. Martingaling my way out of some bad positions and/or even hedging to recoup bad trades. I preset my risk to 0.5% per trade but then take multiple entries on a pair, if they go in profit i always try to quicly just grab a few pips because seeing your daily register ringing is good for the mind (IMO!, I know that looking back i would probably do a lot better holding on to full positions, but if you have put on 3 times 0.5% positions with 30 pip SL and it pops +8 pips and you close out have of them you have made you first 0.35% ish (head math ) buffer. And then Aliens system kicks in which is the biggest winner IMO the ADX expansion, WOW catch it. I still jump into early to it many a time trying to anticipate it but its so good that when you do catch it on the hourly or M15 you can be wrong 3 times and still net on the move with good RR, and then even worst case scenario a stochastic bundle up on the M5 & M1 temp retracement 6-10 pips will let you martingale out never risking more than ~2% on the trade total. Also putting in a 30 pip SL doesnt mean you have to take it you can cut it short. Try taking you first or even second SL as an entry and your last as a tight SL.

When I look at my live trade explorers (no i will not share the imploded rags to riches accounts ) the main improvement is pips per winning trade I was always out to early when I was finnaly on the right side even when cuttign losses short. Now cutting losses short and being able (still trying to even) to stay the trade drastically improves performance.
What also improved me a lot was focussing on 1 or 2 pairs during a day, select them in the morning, and follow the waves, get in the rhythm. Look at full screen charts for a while cycle down from the higher timeframe and see how the waves form over longer time rather than looking at the the 5 TF chart overlay. Looking at full screen charts you will get a much much better grasp of ADX expansion and contraction cycles, because of the y-axis fluidity the ADX current expansion/contraction can look very different on a 30 or a 200 bar chart.

Also thought of experimenting this week with what i call reverse martingaling ---> postition goes +12 = add as if you would average down a position going -12 . So cut losers, add winners, makes so much sense that it sounds stupid? Is it?

I encourage all to put up a trade explorer, let's see each other f* ups and try to learn, it will also restrain you and make it easier to have master review them. To throw the first stone i will put up a chart with all my GBPUSD trades of last week after this post. After reviewing them myself the goal this week is to have less lots (no overtrade), still take partials but grow the cahonas to stay the right trade remainders even longer and cut losers shorter.



** sry for the bad trades Master I will put them up next post

Hi Alien and everyone
looking forward to this week of trading with this great system
notice a DS1Hr on EUR/USD WITH BBS ..

GBPUSD Trades, will be focussing on this pair again this week i think the theme next week is GBP strength / USD Weakness and poss CHF weakness gonna check out GBPCHF in morning before London


this could be the nice to spike down GBPUSD for a nice entry

I can not do that because i don't have time. I have a full time job from 9am until 6.30pm. I'm practicing on a demo account but without success because I want to start with little money but trading at higher timeframes. it is possible but difficult. Once i get the hang of it (slow and steady) I'm ready to go live account.

Just clicked out for + 15 on used.

Sorry should read EUR/USD.