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"Ratios & Harmonics: a Different Way to Trade." Summary 37 replies

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Ratios & Harmonics: a Different Way to Trade

  • #14,121
  • Jun 23, 2015 4:57am Jun 23, 2015 4:57am
Quoting vqtrader
{quote} Same here honestknave/Wolves. I have been here since the start, just took a few months off handling man shit. Just got back a a week ago. most of the people have morphed the method into there own i guess. Of course I am one of them. I have simplifed it. I still have a JOB so trading is hard, so I have bot working for me when I am at work. I use Mr. Pip/my rules then turn the baby on until I get home.
Good work getting an EA you can rely on!

I think it is fair to say the original system was already a morph of other established techniques, and indeed from what I have read Mr Pip changed the focus of his system quite substantially over his time on the thread.

It is always a delicate line between evolving a system (or even better, devolving through simplification as you have done) and turning it into something else all together. Arguably, the markets change and so should we. The important thing is to keep true to the underlying principles, but modify the framework to suit our needs.

Green pips
  • #14,122
  • Jun 23, 2015 5:05am Jun 23, 2015 5:05am
Quoting DizzleFX
Wanted to post a potential setup that I passed on. We usually show pics of our trades, so I thought I would switch it up. Reason I passed is because my rules require atleast a touch of the 38.2 fib. This did pull back into an area of structure that is displayed by the blue box but never touched 38.2 fib. In the past this has been a filter for me as well, to pass on trades that are making a small correction to the upside prior to heading down. Another consideration is that a continuation to the downside without touching the 38 fib is really not good...
Great post DizzleFX.

At this time, GBPUSD was almost identical except it did reach the 38 fib. It was also backed up with structure, DS1, MA, a fat bear candle taking out the entire previous bull candle, and some great bearish orderflow since London open.
Was it a classic case of confirmation bias, disregarding the significance of the minor RN and lack of follow through, or would I trade it again? Honestly, all single move pullbacks to the 38 fib carry a substantially higher risk than the deeper retracements. So I probably would do it again, and get burnt again
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  • #14,123
  • Jun 23, 2015 8:30am Jun 23, 2015 8:30am
Hello Traders

Taking this very aggressive double bottom trade on the 5 min Cable.
Tight stops too.
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  • #14,124
  • Jun 23, 2015 8:41am Jun 23, 2015 8:41am
Update

Out with +9
  • #14,125
  • Jun 23, 2015 12:00pm Jun 23, 2015 12:00pm
3 trading opportunities today, 2 would have been winners and one a loser. I took one trade, guess which one it was. Yep, the loser.

ironically, my big psychological weakness is 'fear of missing a trade' so i've been actively trying to tackle that and decided to wait patiently rather than jump in too early. unfortanetly price didn't hang around and took off.

the middle trade was the loser, now losing trades of course are ten a penny so no big deal, but i'm on a 6 trade losing streak, i've also had 6 losers loads of time in the past but it does make me approach the market with more trepidation than normal.

Thank god i'm only trading the equivalent of micro lots

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  • #14,126
  • Jun 23, 2015 12:09pm Jun 23, 2015 12:09pm
Quoting honestknave
{quote} Hello Wolves77, I'm looking forward to seeing some charts when you get the chance! I know what you mean about posting live calls on short TF trades, it is very easy to lose focus. I'm starting to think there is more benefit in posting a detailed chart after the event than posting a live call with minimal (or messy, in my case!) info. I'll probably just pick a couple of trades that were interesting (in a good or a bad way!) and post them up from now on. I didn't watch the seminar live, but I have watched most of it subsequently. You've reminded...
i'm using city index platform at the minute, i also have their MT4 platform purely for trading fx, but you can trade all the fx pairs with the regular account so decided to stick with that as i much prefer it. Just wish i could link the account to my fxbook tho.

I'm still only JUST about reaching break even on a consistent basis (altho this is 100 hundred times better than i was 6 months ago), but even so it would be great to pour over all the stats to give me more insight on places to improve.
  • #14,127
  • Jun 24, 2015 6:41am Jun 24, 2015 6:41am
Hello traders

Cable 5 min

Long Aggressive C trade, stop is just below the 78.6. Against orderflow so I will be watching it carefully for any breakdown.
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  • #14,128
  • Jun 24, 2015 8:04am Jun 24, 2015 8:04am
Took a -6 pip loss, price went up the had a lot of rejection, with ordeflow. I was up about 9-10 pips, should of been a BE trade. As I knew it was risky.


Aj1
  • #14,129
  • Jun 24, 2015 2:34pm Jun 24, 2015 2:34pm
was hoping to post a winning trade this week but still waiting

feel i was a tad unlucky on this one but just got stopped out.

reasons for entry -

market was a bit choppy but overall orderflow was bearish
price entered golden zone of the main swing
1:1 completion
1.618 ext of ab leg

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heres a bar by bar breakdown in the area i was looking to go short.

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  • #14,130
  • Jun 24, 2015 10:42pm Jun 24, 2015 10:42pm
Man, your AB was to short. If you had measured from the absolut bottom you would almost exactly mached the top.
  • #14,131
  • Jun 25, 2015 2:48am Jun 25, 2015 2:48am
Just hit my TP on an AB=CD with the USDJPY. 36 pips in the bank. I was watching this setup for a while, waiting on a confirmation that was convincing enough to take.
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Damn The Torpedoes, Full Speed Ahead!
  • #14,132
  • Jun 25, 2015 12:52pm Jun 25, 2015 12:52pm
Quoting actionB52
Man, your AB was to short. If you had measured from the absolut bottom you would almost exactly mached the top.
fair point, but i tend to only take 1 to 1's from each price leg, so my ab leg was actually the cd leg of the previous move which was also a 1.618 ext, crossing the abcd's across any part of price tends to be to confusing for me and feels too subjective. this is just my own opinion tho.
  • #14,133
  • Jun 25, 2015 1:05pm Jun 25, 2015 1:05pm
well, here's one last example of a losing trade,

reasons for entry -

long term order flow was bearish
golden zone
1:1 completion
previous S/R area
bar by bar analysis

entry short was at the blue arrow.

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Well, i was hoping this chance i had to put in some good trading time this week and start posting a few trades would have turned out better, but 14 trades and 14 losses is not only shockingly bad but a new record for me. my previous was 10 losses in a row. i won't be able to make a trade for the next 12 days, which as it happens is probably a good time to take a break. Then it might be a case of back to the drawing board.
  • #14,134
  • Jun 26, 2015 3:09am Jun 26, 2015 3:09am
2 trades from today, both on AUDUSD for a total of 29 pips. This pair was in a down trend and was looking for shorts. I know that the second trades AB leg could be in questions, but that is how it went down.
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Damn The Torpedoes, Full Speed Ahead!
  • #14,135
  • Jun 26, 2015 4:13pm Jun 26, 2015 4:13pm
Quoting Wolves77
well, here's one last example of a losing trade, reasons for entry - long term order flow was bearish golden zone 1:1 completion previous S/R area bar by bar analysis entry short was at the blue arrow. {image} Well, i was hoping this chance i had to put in some good trading time this week and start posting a few trades would have turned out better, but 14 trades and 14 losses is not only shockingly bad but a new record for me. my previous was 10 losses in a row. i won't be able to make a trade for the next 12 days, which as it happens is probably...


Wolves77, I know how you feel dude. I feel your pain and frustration. Hang in there tho. It takes time to master trading. The time away may be good to reset your emotions but never give up. Even tho your trades were losers, I still think your on to something... Just reviewing your trades

In your last trade, it looks like you got in just before a news event. were you aware of it? I don't trade off fundamentals but I try to be aware of them. getting in before a huge news event increases the risk. what ever edge you had just turned into a flip of a coin. Some people swear they can trade off fundamentals and make money at it, I can't. I'm not that smart. I can usually sense what the overall sentiment maybe but I can't factor in if the sentiment is already baked into the price or not, so it can go either way.

Quoting Wolves77
was hoping to post a winning trade this week but still waiting
Quoting Wolves77
feel i was a tad unlucky on this one but just got stopped out. reasons for entry - market was a bit choppy but overall orderflow was bearish price entered golden zone of the main swing 1:1 completion 1.618 ext of ab leg {image} heres a bar by bar breakdown in the area i was looking to go short. {image}
I actually liked this trade. You should of looked for a re-entry on the pin bar / rejection that initially stopped you out though. I dont play with wide stops either. If my initial trigger is wrong , then its wrong. but don't be afraid to re-enter on a clearer entry signal. On a side note: sometimes I place my stop above the trigger and sometimes over the nearist structure (like swing High/Low or RN) depending on the aggressiveness of my entry, weakness in price and the strength of the structure... I know, a bit subjective. Hard to put definition to for your Trading Plan.

Quoting Wolves77
3 trading opportunities today, 2 would have been winners and one a loser. I took one trade, guess which one it was. Yep, the loser.
Quoting Wolves77
ironically, my big psychological weakness is 'fear of missing a trade' so I've been actively trying to tackle that and decided to wait patiently rather than jump in too early. unfortunately price didn't hang around and took off. the middle trade was the loser, now losing trades of course are ten a penny so no big deal, but i'm on a 6 trade losing streak, I've also had 6 losers...
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I would of been a little hesitant on this one thought. Obviously you entered to early. Price showed some bullish strength in a bearish market but then price started to break down just under the RN. Your entry was on a swing with a health projection (Short/Term) and after a significant pullback from the lont term Bearish Trend. I would of waited for some weakness in the short term order flow. With a stop so close, you should of moved stops to B/E once price tested S/T lows. The one thing that is lacking is structure.
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Trading.... For some people the skill comes naturally, for others, they have to work at it. I fall in the group of the latter so I have to put in a lot of work to become better. One of the things I do is trade review. Here's a nugget
Attached File(s)
File Type: pdf YTC the-greatest-trading-book-ever.pdf   231 KB | 1,483 downloads
.

I've done hundred if not thousands of trade reviews and I start to notice things in price patterns, how it reacts, but most importantly repeating flaws in my trading. Sometimes I go back to the beginning and look at some of my earlier trades and notice the progression. As much as I would love to be, I can not be Mr. Pip so I cant trade exactly like him. But I can use his teachings to find my own path. There is no right or wrong but how do I make money at this....
  • #14,136
  • Jun 26, 2015 8:09pm Jun 26, 2015 8:09pm
Quoting Wolves77
3 trading opportunities today, 2 would have been winners and one a loser. I took one trade, guess which one it was. Yep, the loser. ironically, my big psychological weakness is 'fear of missing a trade' so i've been actively trying to tackle that and decided to wait patiently rather than jump in too early. unfortanetly price didn't hang around and took off. the middle trade was the loser, now losing trades of course are ten a penny so no big deal, but i'm on a 6 trade losing streak, i've also had 6 losers loads of time in the past but it does...
The yellow box showed nice price action exhaustion at the end of an abcd, keep practicing and you'll be all over those soon
Never said I was Batman,all I'm saying is you'll never see us together.
  • #14,137
  • Jun 26, 2015 9:12pm Jun 26, 2015 9:12pm
Quoting Mack2013
{quote} Wolves77, I know how you feel dude. I feel your pain and frustration. Hang in there tho. It takes time to master trading. The time away may be good to reset your emotions but never give up. Even tho your trades were losers, I still think your on to something... Just reviewing your trades In your last trade, it looks like you got in just before a news event. were you aware of it? I don't trade off fundamentals but I try to be aware of them. getting in before a huge news event increases the risk. what ever edge you had just turned into a flip...
Thanks for the book and the words Mack...
I follow only one person and his strategies...
  • #14,138
  • Jun 27, 2015 5:12am Jun 27, 2015 5:12am
Quoting Mack2013
{quote} Wolves77, I know how you feel dude. I feel your pain and frustration. Hang in there tho. It takes time to master trading. The time away may be good to reset your emotions but never give up. Even tho your trades were losers, I still think your on to something... Just reviewing your trades In your last trade, it looks like you got in just before a news event. were you aware of it? I don't trade off fundamentals but I try to be aware of them. getting in before a huge news event increases the risk. what ever edge you had just turned into a flip...
hey mack, thanks for a great post and the words of encouragement, very much appreciated.


totally agree with everything in the post

1. the news trade - yeah, i always mark off on the chart if a major/mid news event is coming up, incase i get too into the charts and forget, i use fx street, but there was nothing about it, i checked this site's calendar and even clicked the eur/usd thread to see if anyone could explain what just happened but no one seemed to know.
there were talks about greece going on all day (when aren't there these days lol), and apparently it was some off hand comment that may or may not have been said by merkel that caused it, altho i never did find out for sure. the same thing happened twice later the same day. in retrospect i prob should have just avoided eur/usd that day alltogether.

2. the decent setup - i def use pretty tight stops, with the view that if price goes against me i want to be out as fast as possible and in the knowledge that i can always re-enter if the trade is still valid, however, i didn't re-enter that trade because to be honest i was just too confused by the price action after the pin bar, i couldn't get a handle on it at all. hopefully i will improve on this with more practice and experience.

3. the hasty trade - yep, have to agree this wasn't a great trade to take at all, i def should have waited for the expectation to play out, altho i like the alternative view you put on the chart, which wouldn't have occured to me at the time at all.

so yeah, all in all thanks again for your time on this one and hope you can start posting some charts again soon
  • #14,139
  • Jun 27, 2015 5:15am Jun 27, 2015 5:15am
Quoting headfake
{quote} The yellow box showed nice price action exhaustion at the end of an abcd, keep practicing and you'll be all over those soon
cheers headfake, fingers crossed
  • #14,140
  • Jun 28, 2015 1:39am Jun 28, 2015 1:39am
Gartley that showed absolutely no rejection. Keep in mind that long term order flow was to the down side, so jumping on an aggressive "C" would have been ideal.
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Damn The Torpedoes, Full Speed Ahead!
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