LFX Trading Proverbs

13 pips took exit off 1m chart, yellow blue cross.

5-6 pips here, exit based on I just had a bad feeling about letting it run lol.

Maybe exiting on 1m was not a good idea 30 more pips it rose.

-7 bailed.

Sorry, been away for a bit. Did not know you were responding on my thread. Glad to see you found the MACD candles. I searched around for a mq4 and I think I found one, but the guy wants me to sign up to his crap in order to get it, so I didn't get it, lol.

As far as 0 line crosses with a MACD indicator, there are 2 ways to do that. One is to use the attached MACD indicator. It signals a bit late though. The other is to use the alert arrows and set the signal to 2000. So if you consider the standard MACD settings of 12/26/9, you would set it to 12/26/2000 to line up to the 0 line.

I do not have the mq4 of the crossover indicator, but it is pretty handy from a pictorial perspective.

I like the CCI setting 12 with a 6 crossover. You are getting closer Only this is not the CCI I use I use FX Sniper's Ergodic CCI, though some say it isn't really a CCI. Also, consider changing the bband to 34? In effect, it will make it a forward moving TDI, and in my opinion, much more useful.

As far as the 1M, I have not found a consistent method to trade it. I can reference trades from the 5M using the 1M chart, and there is actually one indicator that "sometimes" show an appropriate exit. The problem with a 1M chart is the range. Often it is not enough to trade for profit. Often it shows entries and exits that have no real impact on higher time frames. And, worst of all, the amount of trades means the broker is getting a lot of money from your frequency.

However, I do find it handy to watch the 1M chart when trading. But I use a special charting tool to do it. It allows me to pull a chart out of MT4 and move it to another monitor. This way I have full screen without stretching. If you are not a serious trader though, I would not do this because it costs $47 and so you have to justify spending money on it. But, if you are profitable, it is a nice tool. You can try it for free for 14 days. It is a little buggy, but extremely convenient, so I don't really care

http://www.floatingcharts.com/

I recently noticed that the newest auto update to MT4 changed the volume of bars. This caused my MT4 to load extremely slow and have a hard time keeping up on fast moving candles. The solution is quite simple actually. If you use a 2000 signal line on your MACD, then the maximum number of bars you need to do calculations should be in the 2100 area.

In MT4, go to Tools / Options / Charts and change the "Max bars in History" and "Max bars in Chart" to 2100 and your MT4 will run super fast.

For Koglkama

Thanks for tips DK!

What is the differnce between an OsMA and LFX EPO ?

Hmm, you are right it does not look like cci. All the P's are different MA's?

Will let it run on the open tonight and watch it.

I don't know. It was a long time ago I know I usually modify my indicators and so change the name. Not only does it show me it is different, but allows me to show pics and no one knows what I am doing

I am not using OsMA right now either, but when I did, the one I attached is the one I used.

Friday was a great day, 120 pips for me.

Cool

I like your posts and logic of your system. I tried to use same indicators to develop system once. thanks

I was Christmas shopping the other day and stumbled on the book Money, Master the Game, by Tony Robbins. I have not read it completely yet, but it appears to be a modern Think and Grow Rich Part II.

I was struck by some comments I read and thought to pass them along to you. It seems Ray Dalio found success by asking himself, "What don't I know?" That statement is intriguing and jumped right out at me. As you know I developed a process, or system, to trade currency. I constantly asked myself the same question all the time. To take it a step further, I will give you my answer to that question.

As you also know I am not a fundamental trader. I simply do not want to waste my time on crystal balls. I can see the aircraft carrier group move off to sea and just follow at a distance I learned that technique from the guys at Investools. When the carrier group does a "Crazy Ivan", or head fake, I am far enough behind that it does not influence me. When they alter course, on the other hand, I am just like a trailing racer, drafting off of them. I go all the way to the point they turned, turn myself, and continue to follow.

As you know I am a range trader because that is where the real money is made. So the answer to my question, "What don't I know?" is what is the overall market direction and when is it going to turn. An integral part of my trading revolves around knowing tops and bottoms AFTER they are confirmed. I also can usually see the areas of consolidation. It took me years to figure out how to do it. That is how I know so much about indicators. I experimented with indicator after indicator looking for the answer to my question. Now you have two of us telling you how we found success.

Another story from the book also jumped out at me. It was about his martial arts teacher Jhoon Rhee. Tony Robbins had told him he wanted to set the world record of obtaining his black belt in Tae Kwon Do faster than anyone in history. Have you ever studied martial arts? I laughed to myself when I read that Anyway, one day he finally got around to complaining about all the repetition and why he was not learning the next move. Jhoon Rhee told him: "Oh, grasshopper, this IS the next move. The fact that you can't tell the difference between the move you made this time and the one you did before shows me you are still a dabbler. Those fine distinctions are the difference between a master and an amateur. And mastery requires this level of repetition. With each repetition you must learn more."

This made me smile too Do you think you can trade daily charts or 4 hour charts and call yourself a trader? You are a dabbler, and I say that with my new wisdom I have no idea how long a daily trade lasts. Is it 2 weeks? 3 weeks? As part of my quest to figure out range trading I used the 1M chart, as well as the strategy tester. I traded and traded and traded and traded and traded and traded and traded and traded and traded and traded and traded and traded and traded and traded and traded for YEARS!! I never mastered the 1M chart, but I did get really close on the 5M. Really, I suppose I did master the 1M chart because I saw how inconsistent it was and its lack of volatility for the best profit. When trading, I prefer to have a decent sample size and the 1M chart could not produce consistently profitable trades. Anyway, now I trade 5M charts. I average 6-8 trades a day per currency. So, even now, if you trade daily charts and make 12-14 trades a year, and I am doing 6-8 trades a day, how do you intend to compete with me on merely raw experience? By the way, it is not a real competition, but I hope you see there is an inherent difference between a position trader and me.

I hope I don't sound boastful, or too highly opinionated. I thought their comments were interesting and could help you determine your level of seriousness to trading. If you are not willing to do the work, then be honest with yourself. But, if you are willing, then understand it is a long process that only you can shut off. When you know what you don't know, and then execute your knowledge with consistent, repetitive actions, and apply continuous process improvement, then you will find your success.

Something that helps me a lot with timing, patience, and emotional control is playing poker. I play online with fake money because of the current US Laws that do not allow banks to deposit or withdraw money from offshore casinos. Yes, big brother wants his tax money to help him spiral the debt, LOL. Okay, stay on topic Playing poker teaches me that I cannot win every hand, and that I can bet the farm when I am right. I pick and choose which hands to play based on probability of success. Even then, it is not a guarantee and I must adjust my position or close it. To use the experience as effective training for trading, I very rarely bluff. I still find myself chasing hands sometimes, but once I realize I am doing it I quickly stop. By not bluffing I force myself to trade more precisely and more importantly, to be patient.

Figure out what you do not know. Practice, practice, practice. Learn to control the need to "gamble". These are all foundations for success Good Luck!!

Got a few PMs from some followers and wanted to address a general observation.

The TDI uses a 34 bollinger band around its RSI's. I think we can all agree the TDI is a good indicator, except for its function of updating at the close of a candle instead of updating real time. So, if it can be mostly trusted, then consider using a 34 bollinger band on your price chart. I use a deviation 2 and a deviation 1. Obviously I do not trade to the touch of the bband, but it does seem to act as a good boundary for ranges, and a good exit sometimes on breakouts when price reenters the dev 2 bband.

But the key point I want to make is you can tell when the market is going flat because the bbands will collapse and run parallel. Often the market starts its new trend when it breaks through a parallel bband. I do not trade their signal, but I definitely use them as a guide to current market behavior. Review some history and you will notice some interesting things that you might find useful

In my early years I was a major proponent of using stochastics. You should have seen some of the wild designs I made Some of them almost worked. But later on when I realized I was just tracking a moving average and there were better ways to do that, I reluctantly stopped using stochastics. They were part of my training though, so I cannot discredit them entirely.

However, in my last post I talked about one way to see when you are in consolidation. Stochastics, on the other hand, show you when you are in a trend or a range. In a range, the stochastics move up and down with price. In a trend however, they bury themselves at the top or bottom of their internal range. I am at the point now where I have other ways to measure trends, but if you are new, or old-fashioned, or want a second indicator opinion...then you might consider stochastics as a way to evaluate the current market behavior. Something to consider

I wish everyone a Merry Christmas!!

Merry Christmas !