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  • #161
  • Nov 23, 2014 5:34am Nov 23, 2014 5:34am
Quoting mokhlesur
Critical part of the method seems to be entry with 5 pips stop loss. Trader who can manage trade with 5 pips sl can easily make money with scalping.
I'm afraid I disagree - entry with 5 pip stop loss is pretty much irrelevant. The method is about managing positions - not entering them. I believe a trader reaches a new level of ability when he/she stops thinking about entries - they really are not very important. My advice to anyone starting out is learn to manage a trade before you learn how to enter one. Once you start down the road of looking for perfect entries, it's hard to stop. My that is not where the profit is. JMHO.
  • #162
  • Nov 23, 2014 6:39am Nov 23, 2014 6:39am
Guys and gals.

Please, please, please listen to what Fez is saying about the entry. It's not the focus. So many questions about s/l, trading times, move to BE, etc. etc. etc.
You are totally missing the point of what he's trying to discuss here.

There are innumerable threads here on FF that can help you develop a "trading system" that you can hone over time.

It would seem that Fez has some real "Gold" to share here, but my fear is that if we bog him down with myriads of questions about what he "doesn't" want to focus us, then he will become discouraged and the thread may fade away.

So come on...let's get on board and keep our focus. JMHO
  • #163
  • Nov 23, 2014 7:11am Nov 23, 2014 7:11am
In my trading experience ..... i would like to believe you but if you said your SL JUST 5 PIPS and you gain 200 pips and more .... it sounds like a contradiction for me in trading psychology. If you are scalper ok i can understand 5 PIPS SL and gain 20 - 50 pips but to gain hundreds of pips you should be ready to have SL minimum around 50 - 100 pips.

Could you show me your trading statement ..... ??

thanks

regards,

dogol
  • #164
  • Nov 23, 2014 7:21am Nov 23, 2014 7:21am
Quoting dogol
In my trading experience ..... i would like to believe you but if you said your SL JUST 5 PIPS and you gain 200 pips and more .... it sounds like a contradiction for me in trading psychology. If you are scalper ok i can understand 5 PIPS SL and gain 20 - 50 pips but to gain hundreds of pips you should be ready to have SL minimum around 50 - 100 pips. Could you show me your trading statement ..... ?? thanks regards, dogol
Please read the post directly above yours.
  • #165
  • Nov 23, 2014 7:30am Nov 23, 2014 7:30am
Quoting dogol
In my trading experience ..... i would like to believe you but if you said your SL JUST 5 PIPS and you gain 200 pips and more .... it sounds like a contradiction for me in trading psychology. If you are scalper ok i can understand 5 PIPS SL and gain 20 - 50 pips but to gain hundreds of pips you should be ready to have SL minimum around 50 - 100 pips. Could you show me your trading statement ..... ?? thanks regards, dogol
@dogol

I am almost sure you will never see a trading statement or a MyFxBook performance page.

The whole thread - especially the "story line" with the med.school background and the sick boy in the hospital with "avascular femoral necrosis" - sounds like a well-designed collage experiment on social media...
  • #166
  • Nov 23, 2014 7:44am Nov 23, 2014 7:44am
Quoting Paracelsus
{quote} @dogol I am almost sure you will never see a trading statement or a MyFxBook performance page. The whole thread - especially the "story line" with the med.school background and the sick boy in the hospital with "avascular femoral necrosis" - sounds like a well-designed collage experiment on social media...

Hey Paracelsus,

How goes the battle over at MGH. I haven't been there in a while.

I would agree with you that one needs to be careful and perhaps a bit "skeptical" of any information shared on open forums...and time will tell.

However Fez has already shown a familiarity with the concepts, and even the details, of Graeme's millipede thread, so it would appear things are headed in the right direction.
I remain, as always, hopefully optimistic...
  • #167
  • Nov 23, 2014 7:45am Nov 23, 2014 7:45am
Quoting spyderman
Guys and gals. Please, please, please listen to what Fez is saying about the entry. It's not the focus. So many questions about s/l, trading times, move to BE, etc. etc. etc. You are totally missing the point of what he's trying to discuss here. There are innumerable threads here on FF that can help you develop a "trading system" that you can hone over time. It would seem that Fez has some real "Gold" to share here, but my fear is that if we bog him down with myriads of questions about what he "doesn't" want to focus us, then he will become discouraged...
Well said
MT4/MT5 EAs/Indicators/Alerts coder
  • #168
  • Nov 23, 2014 7:47am Nov 23, 2014 7:47am
Quoting dogol
Could you show me your trading statement ..... ??
Are you serious ? He has no obligation to prove anything. You are not buying something here.
MT4/MT5 EAs/Indicators/Alerts coder
  • #169
  • Nov 23, 2014 7:53am Nov 23, 2014 7:53am
Some people are just scared when others think outside the box, if it dosnt conform to " standard trading practices" you just critisize and claim it can never work.
Fez, continue your great thread, without freethinkers we never progress beyond the "norm".

As far as the 5 pip SL is concerned, i and my group of traders in our private trading group who trade the RIFID trading method have proved that having a 5 pip stop loss and large RR is not only possible but extremely profitable. Although our normal RR is 4,a few weeks ago one of our members suggested a way of using our entry system but incorporating into method similar to yours with an RR of 20 which is being tested with very favourable results.

So to all the naysayers who say it can't be done and want to see proof, get of your lazy backside and try it, you might get the shock of your life. And then come back to this thread and thank Fez for opening your eyes to something your were to blind to see for yourself.
patience is bitter, but its fruit is sweet
  • #170
  • Nov 23, 2014 7:54am Nov 23, 2014 7:54am
Quoting srt
{quote} Please read the post directly above yours.

i am just curious .... with just 5 PIPS SL to gain 200 pips and above ... it is all about A REALLY TOP GOLD BEST ENTRY Point .... I never heard about this trading system .....
  • #171
  • Nov 23, 2014 8:03am Nov 23, 2014 8:03am
ok sorry guys, maybe i still have to learn a lot about trading style .... let's continue to hear what Fez wants to write here .... please continue Fez, we are already on page 9 right now .... and still not clear about the tsunami trading system ....

will follow the thread with interest :-)
  • #172
  • Nov 23, 2014 8:07am Nov 23, 2014 8:07am
Quoting dogol
{quote} i am just curious .... with just 5 PIPS SL to gain 200 pips and above ... it is all about A REALLY TOP GOLD BEST ENTRY Point .... I never heard about this trading system .....
That's just 1 win out of 40 to be profitable ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #173
  • Nov 23, 2014 8:09am Nov 23, 2014 8:09am
Quoting dogol
we are already on page 9 right now .... and still not clear about the tsunami trading system ....
The very 1st thing to learn is patience ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #174
  • Nov 23, 2014 8:19am Nov 23, 2014 8:19am
thanks FerruFX, i will follow it with patience ..... :-)
  • #175
  • Nov 23, 2014 8:33am Nov 23, 2014 8:33am
Afternoon friends.

I promised that tonight I will show an example, and I will. I do believe that showing on a screen where I entered really isn't useful - If I showed it on a monthly chart, it's just 3 or 4 trades that remained, at seemingly random places due to the fact I enter on lower timeframes. If I showed them on a lower timeframe chart, they're too far apart to actually be able to view, as only one trade once every 200 or so pips will 'stick' as such.

With regards to my trading statement, I could post that. But what would that prove? I posted a screenshot of my account, something which I could have easily doctored within a couple of minutes. Do you believe that I couldn't edit a simple trading statement? Bottom line is (short of giving you my bank account details for you to log into) you will never truly know whether my claims are accurate. I simply cannot prove it in a way that makes it impossible to have falsified my results.

To the person(s) doubting whether I am in Med school - I could also prove that, but any proof would require me revealing which university/hospitals I attend, something which (hopefully) you can understand why I don't feel comfortable doing.

I'm completely fine with scepticism - in fact I'd be a little baffled if nobody doubted me. After all, we all know the statistics about trading the Foreign Exchange market. But even if you do not believe my claims (understandably so), perhaps you could still find something of value in this thread. If I help just one person to become one step closer to profitability I will be more than satisfied with my efforts.

I just don't see any reason why I would go through this kind of effort (It really does take serious effort to produce multiple long posts that I actually consider to have some small value in them) if I didn't have any success myself. Like I said, I haven't asked traders for anything. I have no interest in any reimbursement, or taking on students for a fee, or starting a trading group or a membership website. So, to me at least, it would seem bizarre to spend several hours of my day anonymously giving advice, free of charge on a forum. Once I have finished saying what I have to say, I'll stay around perhaps a few weeks to see how people -if anyone- develop, and whether any further advice is needed on my behalf. Past this point I will feel like I have accomplished what I set out to do, and will go back to living my private life.

Thankyou for the many kind comments - your generosity is humbling. Rest assured I will not abandon this thread until I feel I have laid everything out in an adequate manner, regardless of whether anybody is interested.

Stay safe, Fez
  • #176
  • Nov 23, 2014 8:59am Nov 23, 2014 8:59am
Keep up the great work you are doing here Fez
MT4/MT5 EAs/Indicators/Alerts coder
  • #177
  • Nov 23, 2014 9:12am Nov 23, 2014 9:12am
Fez

Stay with us, we are here to listen, at least I am, I like the idea of hanging on a trend , find trend and milk it, still ringing in my ears, but that takes time, so be here, no need to go anywhere but stay here with us
I Have Learned to Take Some Losses to Make Profits
  • #178
  • Nov 23, 2014 9:17am Nov 23, 2014 9:17am
Before I begin my work for the day, I want to quickly take a few minutes just to clear something up.

It seems a small number of people believe I need to have an amazing entry to achieve that kind of risk:reward. This is false. I have an extremely low win rate. Let me propose to you an example.

Let us say, for arguments sake, I aim for a 200 pip gain using a 5 pip stop. I enter the market 200 times (each time on a valid setup on the lower timeframe chart). Of the 200 entries, 100 immediately hit my stop, without giving me the opportunity to get my trade to breakeven. Accounting for spread, that is somewhere between a 600-700 pip loss. Now, 100 of the trades I manage to get to breakeven. Of these 100 trades, just 5 of them reach a 200 pip profit. This gives me a 1,000 pip gain, putting me 300-400 pips into profit once the losers are accounted for. In fact, I would be profitable if even only 4 of the trades hit the 200 pip profit. Now in theory even if I enter the market randomly I should be able to get half of my trades or slightly less to breakeven. So you realise now why I say you only need a "decent" entry method. If you can get for example 55% of your trades to breakeven, you will be hugely profitable. Of the trades that reached breakeven, only 4% would need to hit the target. In fact you need to consider that you entered 200 trades. So of your total entries, just 2% would need to reach the full target. Let me reiterate: 2 percent.

Do you now see the potential of this method? Even if I manage to get only half of my trades to breakeven, and hit my target with a success rate of 2%, I will be profitable. In reality once you manage to hone your entry skills you will easily be able to get 60%+ trades to breakeven. And with principles of position management that I will lay down in time you will be able to achieve a much higher win rate than 2%, perhaps from 5-8%.

In reality I go for even larger risk reward ratios than this. I usually aim for above 300 pips. If you can get just half of your trades to breakeven, of the other half you would need a win rate of 3% to be very profitable. Of your total entries, you need a win rate of 1.5%.

I hope you can understand why I find this to be such a powerful method. Run through the numbers yourself and you will find it easy to wrap your mind around.

Fez
  • #179
  • Nov 23, 2014 9:25am Nov 23, 2014 9:25am
Hi Fez. You said earlier that your acoount was once drawn down to $600 while trading 3% equity per trade. Then you made a huge profit and went up to over $6000. This means that while risking just $18 (3% of $600), you were able to make over $5500, i.e x300 of your risk. Am I right? Just trying to get to grips with this out of the box method of trading.
  • #180
  • Nov 23, 2014 9:32am Nov 23, 2014 9:32am
Quoting Wahnone
Hi Fez. You said earlier that your acoount was once drawn down to $600 while trading 3% equity per trade. Then you made a huge profit and went up to over $6000. This means that while risking just $18 (3% of $600), you were able to make over $5500, i.e x300 of your risk. Am I right? Just trying to get to grips with this out of the box method of trading.
No, you see the reason why I made profits this huge was that I was naive. My method was to risk a percentage of the initial balance, and then keep that risk constant. Meaning I started out with a risk of $90, and risked that $90 every trade. This of course meant that my percentage risk per trade went up after each loss, but the actual amount risked stayed constant.

I still do this exact same thing now, and rest assured I will delve into it in appropriate depth in my money management post. Many traders do not agree with this, but that is fine. Like I said, I just do what works for me. These days however I am much wiser and risk only 0.5% a trade. Once I (hopefully) reach 7 digits I will lower my risk to 0.1% a trade.

Fez
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