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  • #81
  • Nov 21, 2014 11:48am Nov 21, 2014 11:48am
Hi fez,
Real all. Your concept is acceptable and if manage well the final result is exactly win. As you say regarding this method, Patient, confidence and focus is essential. I agree with your concept and it gave me a new vision to build up the method what i am seeking for. Thanks and really appreciate your effort about sharing knowledge among us.
  • #82
  • Nov 21, 2014 11:49am Nov 21, 2014 11:49am
Good evening once more.

I am humbled by so many people wishing to learn from me. I'm in no way a teacher or an expert, like I said before I'm actually very low down in the ranks of the traders I have formed friendships with. I have been fortunate enough to see some of the long term positions of one of my close friends, something which I think requires a great deal of trust and comfort to do. To say the numbers are mind boggling would be an understatement. It's easy to throw big numbers around, I think in the Forex world millions are often spoken about quite lightly, but to see an active position in 7 figures is something that's truly moving. And these are individual traders, not corporations or banks. I struggle to even comprehend what the numbers would look like there.

Anyway, I digress.

I've noticed that many people in the thread have jumped to conclusions, which is normal due to human nature. But patience will reveal to you how I make money even in ranging markets. Of course nowhere near the kind of money made in a good trend, but money nonetheless.

How is this possible? Simple. I enter the markets on low timeframe charts. Meaning hourly and below, down to 5 minute charts. I enter in both directions, irrespective of the monthly/weekly trend. I take setups that will allow me to get my trades to breakeven. Naturally I also have many, many losers but I take setups that allow me to quickly get my stops to breakeven. Now in a large downtrend, my buys will get stopped out and my sells will keep building pips. Then, the monthly move starts to reverse. As it reverses I still keep trading in both directions. I might close out some of my larger sells for some nice profit, a process I read yesterday that Graeme referred to as "diversification". As I'm still trading in both directions, as the move reverses my sells get stopped out and my buys are building pips. Once the move gets back to the top of where the down move began all of my sells have been taken out at breakeven, but I still have all my buys from the way up.

Therefore in a ranging period, I make the amount of money that correlates to the largest move in that range

For example in a monthly range if it went up 300 down 200 up 500 down 400 I would make the equivalent of a 500 pip trend, which would be the largest leg of the range. Hope that makes sense.

Fez
  • #83
  • Nov 21, 2014 12:40pm Nov 21, 2014 12:40pm
Hello Everybody,

I have been following this thread. Though I have never been an active member. My many years of trading reveals to me that anything is possible in the forex world.

This methods he trades is real I have tried it so many years ago but could not continue because after closing the winning trade with hope the losing will retrace but it never or my capital was not enough to wait for the retracement.

For those of you that may consider using this method then make sure you study the strength of the pair you may consider trading.

For instance it works very well for currencies like EUR/USD and GBP/USD. Because no one can go more than 1000pips against each other in straight point.
  • #84
  • Nov 21, 2014 12:49pm Nov 21, 2014 12:49pm
I know this question may sound as if I am in a rush but could you possible state whether your stop loss is a definite amount of pips or a level on the chat. Thank You
10 pips a day keeps poverty away
  • #85
  • Edited 1:52pm Nov 21, 2014 1:21pm | Edited 1:52pm
Quoting fezmar
Good evening once more. I am humbled by so many people wishing to learn from me. I'm in no way a teacher or an expert, like I said before I'm actually very low down in the ranks of the traders I have formed friendships with. I have been fortunate enough to see some of the long term positions of one of my close friends, something which I think requires a great deal of trust and comfort to do. To say the numbers are mind boggling would be an understatement. It's easy to throw big numbers around, I think in the Forex world millions are often spoken...
Thank you for revealing your trading method.
Would you please provide more details regarding:
1. Which pair gives best results?
2. Do you open positions in multiple pairs together or only a single pair?
3. What is stop loss for the entry?
4. When you open the second position?
5. As you open position in both direction, there are chances of being stop out in both direction in a range market.
When you reach breakeven in one position, the other position having floating losses. How you manage in that scenario.

I'm asking a lot of questions. However I believe these will provide more insight on your trading method and benefit all of us.
Thanks.
Enter Signature
  • #86
  • Nov 21, 2014 1:44pm Nov 21, 2014 1:44pm
Quoting izicode
....This methods he trades is real I have tried it so many years ago but could not continue because after closing the winning trade with hope the losing will retrace but it never or my capital was not enough to wait for the retracement. For those of you that may consider using this method then make sure you study the strength of the pair you may consider trading.
Maybe not coz from what I understood so far, positions are closed because they either :

- hit the 0.5% SL
- hit BE SL
- Manually closed in profit to 'Diversify' in a range or at > 1:20-50 RR.
the market is not random but anything can happen.
  • #87
  • Nov 21, 2014 2:04pm Nov 21, 2014 2:04pm
fezmar: Great stuff...Thanks for sharing.
  • #88
  • Nov 21, 2014 3:01pm Nov 21, 2014 3:01pm
Quoting izicode
Hello Everybody, I have been following this thread. Though I have never been an active member. My many years of trading reveals to me that anything is possible in the forex world. This methods he trades is real I have tried it so many years ago but could not continue because after closing the winning trade with hope the losing will retrace but it never or my capital was not enough to wait for the retracement. For those of you that may consider using this method then make sure you study the strength of the pair you may consider trading. For instance...
Hi izicode - can I humbly suggest you were missing one key. And that is getting your stop to BE. It's not holding trades open without a SL while going the other way. This is not hedging as it's classically understood - i've done alot of that in the past and you have to be razor sharp with your signals, or have very big pockets. If your trades are at BE, then you aren't losing anything.
  • #89
  • Nov 21, 2014 4:05pm Nov 21, 2014 4:05pm
Also pls tell us do you enter the market in two directions both ranging markets and trending markets and if u dont enter both directions in trending markets how exactly do you determine the trend and on what time frame. Thank you
10 pips a day keeps poverty away
  • #90
  • Nov 21, 2014 4:51pm Nov 21, 2014 4:51pm
I have to be honest, this is precisely what I was expecting, a huge eagerness for the entries, due to the psychology of probably 95% of traders, a statistic that I just made up. But I really can't blame anybody, the entries are indeed a part of the system and nothing that I am trying to hide because, well there really is nothing to hide!

My entries are based off simple support and resistance.

Now let me see how many traders leave in disappointment.

I mentioned earlier that I trade anything from the 1 hour down to the 5 min charts, but from what I've found the higher the timeframe the more chance there is of getting the trade to breakeven, and it's usually the hourly entries that 'stick' and end up turning into longer term positions.

I use a 5 pip hard stop on all of my entries. That may seem very tight, but it works for me. I can enter with such a small stop because I only enter on pullbacks after a break. Most people trade breakouts by buying/selling as soon as the candle closes above/below the line respectively. They therefore require larger stops. Me on the other hand, I wait patiently until the price pulls back to the line, and around 60% of the time it bounces with less than a pip drawdown.

Alas, this is not something I can teach you here. I can speak about position management, about holding trades, about huge risk rewards, but trading using support and resistance really isn't something I can go into depth with. I really do feel like many traders were waiting for me to give them an incredible entry method, and I almost feel as though I have let you down by failing to deliver.

So, for those that are clinging on for a set of 'rules' to enter on, on any timeframe at hourly or below i'll wait until the market is trending. As you can find on any Forex trading website, this is simply higher highs/higher lows and vice versa. I won't enter on an exhausted trend, anything more than 3 pull backs is too much for me. Once the market pulls back (let us assume a downtrend here) I'll simply draw a support line at the lowest point it reached. When price next touches the line, I'll wait and see whether it breaks it. I like to see a clean break once the bar has closed, this signals the downwards momentum has returned and traders still see this as a downtrend. If if bounces at the line again or forms a wick and closes above, it's invalidated in my eyes. Perhaps that's just my ocd, but I can't enter if I see that. I then calmly wait for a pullback to the line, and sell as soon as it hits, with a hard 5 pip stop.

How often does my stop get hit? Probably around 40% of the time. Now, the astute among you will immediately recognise that I could probably be profitable even if I wasn't using this longer term, larger r:r approach. That may very well be, but I already mentioned in my initial post my hatred for requiring a high win rate and the pressure that comes with it - if I can get my stop to breakeven half the time I'll still be satisfied. I usually move to breakeven at + 5 pips.

How often does my stop get taken out at breakeven? Alot. I really mean a large number of times. Probably out of the positions that I get to breakeven, one in every 20 hits the 1:200 risk reward. That's completely fine by me.

There you have it my dear friends, the awaited entry method. I've already mentioned this isn't for newbies, and that you need to have a valid entry method to atleast get you to breakeven. I've been reading Graeme's thread and was pleasantly supplied when he said the same thing as I was thinking. Entries are at your personal discretion, this is just the way I do it.

Any questions pertaining to what I just laid down feel free to ask, I have about an hour's worth of free time right now where I can clear up any confusion.

As always stay safe, Fez
  • #91
  • Nov 21, 2014 5:12pm Nov 21, 2014 5:12pm
As much as I would be very disappointed if this thread turned into a 'posting a chart of your entries' type thread I do feel that one simple chart to aid the explanation I have given above should be enough to quench the thirst of those wanting to know about my own entries.

Here is a 1 hour chart, I took all the 3 of these entries on my live account. This is an hourly chart. As you can see, I marked out the highest point price reached before pulling back. Price then came back up and broke it cleanly, without bouncing again. As soon as price proceeded to touch it from the other side, I entered long. None of the positions got stopped out at -5, however

All 3 positions were stopped out at breakeven.

A fact that may send a shiver down the spine of a normal daytrader: I could have banked 70 pips off those 3 trades.

And that is a truth that you must come to grips with if you wish to trade like me. If I were a normal daytrader, perhaps I'd have amassed a fortune in the multi millions by now. Or perhaps I would have blown my account trying to consistently time the small moves knowing precisely when to enter and exit with a high degree of success. But that is not who I am. This is my trading style, and as I've repeated what seems like too many times now, I am just relaying what has worked for me. Something else may have worked better. But this is what I use, and so therefore this is what I am demonstrating. There is no single 'right' way to trade, you can take what I have laid down and make a huge success from it, or you could continue taking small pips and gathering them up trade by trade, we are all in this to make money.

Take care, Fez
Attached Image (click to enlarge)
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  • #92
  • Nov 21, 2014 5:22pm Nov 21, 2014 5:22pm
Quoting fezmar
I have to be honest, this is precisely what I was expecting, a huge eagerness for the entries, due to the psychology of probably 95% of traders, a statistic that I just made up. But I really can't blame anybody, the entries are indeed a part of the system and nothing that I am trying to hide because, well there really is nothing to hide! My entries are based off simple support and resistance. Now let me see how many traders leave in disappointment. I mentioned earlier that I trade anything from the 1 hour down to the 5 min charts, but from what...
Sounds like you are hedging and adding to profitable positions, correct?
  • #93
  • Nov 21, 2014 5:23pm Nov 21, 2014 5:23pm
Quoting fezmar
I have to be honest, this is precisely what I was expecting, a huge eagerness for the entries, due to the psychology of probably 95% of traders, a statistic that I just made up. But I really can't blame anybody, the entries are indeed a part of the system and nothing that I am trying to hide because, well there really is nothing to hide! My entries are based off simple support and resistance. Now let me see how many traders leave in disappointment. I mentioned earlier that I trade anything from the 1 hour down to the 5 min charts, but from what...
hello Fezz,

I just want to ask about your Stop loss, Is spread included in your stop loss or it 5 pip+ spread

Thanks for your reply
  • #94
  • Nov 21, 2014 5:29pm Nov 21, 2014 5:29pm
Quoting Jeysun
{quote} Sounds like you are hedging and adding to profitable positions, correct?
I do not hedge in the conventional understanding at all, and I do not add to profitable positions in the sense of deciding to enter a trade in the same direction as another because of the first being profitable.

Rest assured I will delve very deeply into the management of trades; indeed it's my main goal in this thread. All you need on your behalf is a method of getting trades to breakeven. Not all of them, not even a large majority, just managing to get a percentage of say 50% and above to breakeven. I have described my method, and there are thousands of other methods to pick from, perhaps you already have one. I will run through the rest of the trade's life cycle in sufficient depth in the near future.

Fez
  • #95
  • Nov 21, 2014 5:36pm Nov 21, 2014 5:36pm
Quoting masofras
{quote} hello Fezz, I just want to ask about your Stop loss, Is spread included in your stop loss or it 5 pip+ spread Thanks for your reply
It's 5 pips plus spread. My trading platform allows me to choose whether I want the stop to be executed at the bid or the ask. So I set the stop at entry price -5, and always exit at the bid.

I must admit however, your question troubles me slightly. I really do wish that participants understand when I say it isn't about the entries. Use whatever stop allows you to get trades to breakeven (obviously within reason). You can use a moving average crossover if that works for you. You can use ADX, or RSI, Stochastics, MACD, Price action, Elliot Waves, Trendlines, or any of the other weird and wonderful entries out there. It doesn't matter. As long as it works for you, enough to get it a few pips into profit so you can set it to breakeven and forget about it.

Just completely forget it exists, and move on to the next entry. What you fill find over the coming days is that the market will sort them all out for you. In a downtrend your buys will hit breakeven, alot of your sells will hit breakeven aswell due to the natural ebb and flow of the market, and some (just some) sells will start to blossom beautifully. As I said i'll go into position management details in another post, for now focus on finding an entry method that allows you to just get a reasonable number of positions to breakeven. Easier said than done.

I really hope you don't feel insulted, this post was directed more towards the general public.

Fez
  • #96
  • Nov 21, 2014 6:04pm Nov 21, 2014 6:04pm
Fez,

with such a tight stoploss, I'm guessing you only trade EUR/USD. I have to ask if that's the only pair you trade.
  • #97
  • Nov 21, 2014 6:06pm Nov 21, 2014 6:06pm
Hi Fezmar - thanks for sharing and being clear on the things that are important to understand.
I get that you're saying to use any entry method that will get you to breakeven....and your method (uptrend) is to see a bar that closes above a previous high or resistance point, then enter as soon as it touches again.

At what point do you move the stop from -5 to BE? I know this is not the critical piece for your method, nonetheless I would like to make sure there is nothing missed as you build the picture...thanks for patiece
  • #98
  • Nov 21, 2014 6:08pm Nov 21, 2014 6:08pm
Quoting Jeysun
Fez, with such a tight stoploss, I'm guessing you only trade EUR/USD. I have to ask if that's the only pair you trade.
False, I trade all the majors. I trade through ECN, all my majors spreads are below a pip. Volatility wise I don't find 5 pips to be a major setback. I do stay away from exotics though.

Fez
  • #99
  • Nov 21, 2014 6:09pm Nov 21, 2014 6:09pm
Quoting Jeysun
Fez, with such a tight stoploss, I'm guessing you only trade EUR/USD. I have to ask if that's the only pair you trade.
Why only trade EU ?

I noticed he is trading with Dukascopy (like me!) which has very interesting spread on many pairs.
MT4/MT5 EAs/Indicators/Alerts coder
  • #100
  • Nov 21, 2014 6:16pm Nov 21, 2014 6:16pm
Quoting fezmar
{quote} It's 5 pips plus spread. My trading platform allows me to choose whether I want the stop to be executed at the bid or the ask. So I set the stop at entry price -5, and always exit at the bid. I must admit however, your question troubles me slightly. I really do wish that participants understand when I say it isn't about the entries. Use whatever stop allows you to get trades to breakeven (obviously within reason). You can use a moving average crossover if that works for you. You can use ADX, or RSI, Stochastics, MACD, Price action, Elliot...

Thank you for nice explanation, It is more clear for me now
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