As simple as possible: 00 level trading

First trade of the day: EU to TP

Udine

Trade #5
EU TP +5 @ 1.29500 (Long)

EU TP = +5

Hello Dave,

As this is a scalping system going for mere 5 pips IMO the 'traditional' analysis that goes for 20-50-100 pips or more does not fit in here.
On the other hand I agree not more than 5 extra 'rules' are needed to make it successful.

On the contrary I do believe trendlines (I mean trends/swings/waves as PA forms!) are very much to be payed attention when using this system. However these trends sometimes last only couple hours or even just an hour. Many times they are well discernible only on lower TFs eg. M15 (see MM's charts and trades).
Regarding pivots (daily, monthly) I agree (for the moment) they are not that important for this system.

Giving second thought to Monday losses... IMO to be more specific they were due to not paying attention to trends/swings/wave (harmonics) AND improper position management. I mean a more strict PO management than the rule +3.5 pips pull to BE. Price did not rush to SL but I had plenty of time to decide what to do (but did nothing). I still think they were justified trades to take (according to one of my 'extra' rules, namely: there was momentum confirmation in the next period upon entry), however they were higher risk trades in terms of trend harmonics.

Specifically:
AUDCAD -- price had been ranging for 15 hours in a 20 pip range, so the first breakout from that reaching a BRN is not something you should buy at the BRN as it was just a first attempt of price to get out of the range so no established trend exists. Nevertheless at BRN entry PA did have confirmation so I still think it was okay to take but as it was riskier I should have applied strict position management, which is pulling to BE early as price shows lack of bursting momentum to get to TP


CHFJPY -- there was established trend, however a weak one. See the swings marked with green (up) and red (down) lines on the chart. It looks obvious that the good probability entries are the ones where a down swing is broken upwards. It is a question whether an applicable 00 level is at the right place.
I missed the .500 level which was a high probability entry (see yellow arrow). When price got to this level, the previous down swing was broken so there is a higher chance that price will continue up for some pips/time. Not 100% but a higher probability than in any of the previous down swing's 7 M15 bars, which equals 115 minutes, almost 2 hours (this is what I mean by 'couple hour trends').
So I did not take .500 but as price entered the .600 level in a way that confirmed the previous hour's direction that was an entry signal for me as well. However it was a riskier one, as the probability of price advancing upwards another 5 pips decreased because the swing made already 18 pips the way up!


Okay, all this long story is not to explain my losses however to make me think about the trades (losses) I took and learn from them. I just hope it might be useful to some others as well.
Áron

Thank you again
I assume you have a tons of patience answering so many obvious questions....

Another one, according to rules you posted you should stop trading after 4 stop losses, did you ever had that situation?
With this strategy one should be extremely picky as for example I had days with 6 TP and 2 SL and was barely on positive side at the end of the day (after spreads and transaction costs deducted).

nope max was 3..

Udine

Hi Jibala,

welcome back

Udine

I put pending order:
GJ Long 171.70

Why?
Up trend and nice pin bar on H1 chart.
Lets see.

Hi Udine,
It seems that the H4 indicator is not sync. Is there a setting needed ?


I got it. reference from the past 4hr, not the future.

all indies comply and PA seems good too, so any reason not to take GJ long @ .700 ? Opinions welcome... bcz btw i feel unsure..

Trade #1

NZDCAD +5 TP



Masterrmind...........

It was a short journey. SL hit.

Too much volatility on GJ now, last 4 hour bars 30-40 pips range, may quickly kick you out of your 10 pips SL.
Better to wait until H1 range contracts. Or switch to lower TF and wait for a PA contraction/concentration there then enter at breakout with 00 rules if any applicable.

Trade #6
GJ SL -10 @ 171.700 (Long)

reason for being on the sidelines:

market nervous for the upcoming referendum in Scotland and any news or rumors, could mess it all up, result could be a quick win or an even quicker loss

its no low risk entry, with high probability of a winner..

cheers

Udine

GU SL @1.6100..

GU short at 1.60900 -10 SL
I thought price retraced enough to carry on downwards. Ash was red on the 1H chart. Eu was heading South at the time (although above DO, while GU was below)

fully agree.. GBP pairs move like crazy any breath of wind... better to stay away till 18 Sep.

ok going for lunch.. back later..

stay green

Udine

great great system! Today first day, I tried real 5 trades, 4 positive and only one negative.
Thanks Udine