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CHOROS System

  • #12,601
  • Apr 5, 2016 8:47am Apr 5, 2016 8:47am
Took this one. Closed me once on the small bin that went below 10 ema, then took it again and gained 21 pips. Computer goes off. Gotta go to garden ;-) Living of it would suit me, as I like being at home, except some bicycle/car trips, commuting to work and working with wankers - that's what I hate. But there's long way in front of me to achieve this lifestyle of independence ;-)
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On my way to financial independence - if others can do it - I can do it
  • #12,602
  • Edited 9:08am Apr 5, 2016 8:56am | Edited 9:08am
Thanks guys for the comments. Looks like a matter of SL placement as well, how do you guys define which SL size to use?
  • #12,603
  • Apr 5, 2016 9:09am Apr 5, 2016 9:09am
Quoting Awaken
Thanks guys for the comments. Looks like a matter of SL placement as well, how do you guys define which SL size to use?
I use 10 pips sl. Then adjust sometimes if needed.
On my way to financial independence - if others can do it - I can do it
  • #12,604
  • Apr 5, 2016 9:37am Apr 5, 2016 9:37am
Kostas, first thanks for sharing your knowledge with us, you're truly a person to be admired, and second, before I ask my question let me say that I'm reading the entire thread and doing my homework, however I couldn't find the answer for this question so sorry if it was already answered.

When you say you trade "bounces" from 12/23 you mean as filters to the M15 first and 2nd 10ma touch trades? Or you take those trades as they present themselves?
They require a strong 35/50 angle on the M15 as filters right?

best regards
  • #12,605
  • Apr 5, 2016 9:45am Apr 5, 2016 9:45am
Quoting Awaken
Thanks guys for the comments. Looks like a matter of SL placement as well, how do you guys define which SL size to use?
Ideally, I would always want to have SL no more than 7.5 pips on a trade. Because I set my overall risk per trade 3% per 15 pips. In that case for every 15 pips I would get, it will be 1:2 R/R ratio. For 30 pips 1:4 R/R.

But not always i set 7.5 pips from the start. Sometimes its 10,11,12. If it should be above that, I would probably skip the trade or wait for better entrance.

That is how I do it currently. I dont know if its ideal, but I think it might be, at least for me.
  • #12,606
  • Apr 5, 2016 10:50am Apr 5, 2016 10:50am
Hello,

Just my $0,02 about SL: it is all down to your personal preference. I always take touch trades with 16 SL (see historically how that works on M15...), if the setup is very good or extending by another 2 pips allows to take advantage of some extra S/R - I'll do it. But I never enter a trade of M15 with SL greater that 18 (and I have to see a solid reason to go for 18). With PA - it's way easier, top/bottom of the PA setup plus spread+1 pip max. Sometimes if I get greedy I go with 16 SL on PA trades regardless. But never do more than 18 pips SL on M15.

It is personal thing though, less SL = smaller single loss but more failed trades. More SL = bigger losses but higher success rate. BUT: most important is the psychological adjustment of YOUR SL. Choose the SL so that you won't beat yourself up with too many losing trades AND at the same time you won't go into revenge trading because you couldn't handle such a big loss on one trade - and sometimes they may come in 2, 3 or more in a row even when trading with SL of high success rate - will you be able to handle that? How your SL fits in your daily SL? You need to find what best fits YOU :nerd:
  • #12,607
  • Apr 5, 2016 11:13am Apr 5, 2016 11:13am
Quoting Jkdt
Hello, Just my $0,02 about SL: it is all down to your personal preference. I always take touch trades with 16 SL (see historically how that works on M15...), if the setup is very good or extending by another 2 pips allows to take advantage of some extra S/R - I'll do it. But I never enter a trade of M15 with SL greater that 18 (and I have to see a solid reason to go for 18). With PA - it's way easier, top/bottom of the PA setup plus spread+1 pip max. Sometimes if I get greedy I go with 16 SL on PA trades regardless. But never do more than 18 pips...
Thanks a lot mate, I think you're right about the 15pips SL on 15min, I'm being stopped out with 11pips SL waay to much just to see the trade go my way.
  • #12,608
  • Apr 5, 2016 11:51am Apr 5, 2016 11:51am
Quoting Awaken
{quote} Thanks a lot mate, I think you're right about the 15pips SL on 15min, I'm being stopped out with 11pips SL waay to much just to see the trade go my way.
It seems that I don't.

If I enter the trade with at least 3 confluence points I'm pretty much confident that I will make at least BE. If I don't, than I guess its just one of those trades that would not save you neither 30 pips SL. If you enter at the right level, at the right time 10 pips should be more than enough. Sometimes I even wait for M5 candle to close for more comfirmation, and I'm still fine with my SL. So, if I enter sooner, then the risk could be even smaller and the SL even tighter. I guess it's more important to properly enter the trade at the right level and at the right time.

I think the most of this strategy comes from keeping the stop losses as tight as you can.
  • #12,609
  • Apr 5, 2016 12:23pm Apr 5, 2016 12:23pm
Dnc48, I have to disagree. Many of the very good touch setups tend to continue retracing further than 10 pips from you planned entry. If you tend to wait for M5 confirmation than it serves increasing success rate at the cost of R:R. But again, this is just my observations. Yours may be different but as long it works for you, then that's all you need.

Another interesting concept that I still need to test is to wait for the price to retrace beyond your regular entry, for example wait 5 more pips or so for the price to move against after your planned entry and then enter with better R:R. This would however reduce the trades number as not all of them go 5 pips. Most of them do though... Kostast has recently written an interesting post on the retests.
  • #12,610
  • Apr 5, 2016 1:15pm Apr 5, 2016 1:15pm
Quoting Jkdt
Dnc48, I have to disagree. Many of the very good touch setups tend to continue retracing further than 10 pips from you planned entry. If you tend to wait for M5 confirmation than it serves increasing success rate at the cost of R:R. But again, this is just my observations. Yours may be different but as long it works for you, then that's all you need. Another interesting concept that I still need to test is to wait for the price to retrace beyond your regular entry, for example wait 5 more pips or so for the price to move against after...
Maybe one of the reason It worked for me so far is the fact I never actually look for those touch trades.

I don't use 10 MA at all because it somehow didn't work for me and had more losses. Never got used to it. Same with 35/50 touches.

Pretty much all that I do is waiting for good confluence points and bounce from 35/50 MA's on M15 or H1. Worked very well so far.
Oh, and few constrainments/scoops seems to be good trades.
There is less trades and needs more patience, but are pretty accurate.
  • #12,611
  • Apr 6, 2016 3:51am Apr 6, 2016 3:51am
Took from there today...
S/R zone, RN, 61.8 fib. Taken after M5 pinbar.
Initial SL 12 pips.

TP 30 pips (R/R 1:2) = WIN !!
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  • #12,612
  • Apr 6, 2016 3:59am Apr 6, 2016 3:59am
Well done. I took similar one, just entered on that first pin. (http://www.forexfactory.com/showthre...80#post8856080) Are fibos useful in this strategy? Since many traders use them there probably is something about them. I just try to avoid cluttering my charts with too many levels along with RN, pivots and other ad hoc S/R, but was thinking about giving them a try. Although, in such short retracements it would actually be impossible NOT to find a fib level that would support the trade
  • #12,613
  • Apr 6, 2016 4:22am Apr 6, 2016 4:22am
Quoting Jkdt
Well done. I took similar one, just entered on that first pin. (http://www.forexfactory.com/showthre...80#post8856080) Are fibos useful in this strategy? Since many traders use them there probably is something about them. I just try to avoid cluttering my charts with too many levels along with RN, pivots and other ad hoc S/R, but was thinking about giving them a try. Although, in such short retracements it would actually be impossible NOT to find a fib level that would support the trade

It seems so easy sometimes.

I know fibos are used for extra confluence most of the time. So I use i too. 50 and 61.8 are always strong points. It doesnt really cost me anything to draw it quickly on the last swing. I can also quickly delete it so it doesnt clutter the chart like you said. In fact that is why I dont use pivots because it creates a mess. Also, I somehow never saw a value in these pivots because there are all sorts of them, and on lower TF they arent so precise in my opinion. Also , pivots are just mathematical S/R levels and I can quickly draw myself the nearest S/R zone/level that I find.

Keep it simple.
  • #12,614
  • Edited 2:41pm Apr 6, 2016 2:09pm | Edited 2:41pm
You are right - sometimes it is. Until it isn't I will always spot a good looking setup, even woken up in the middle of the night. However, the toughest part is knowing when NOT to take it. The most difficult thing in fx is spotting a decent setup and let it go after identifying all those tricky things that show you may be wrong
  • #12,615
  • Apr 7, 2016 2:33am Apr 7, 2016 2:33am
Quoting Jkdt
You are right - sometimes it is. Until it isn't I will always spot a good looking setup, even woken up in the middle of the night. However, the toughest part is knowing when NOT to take it. The most difficult thing in fx is spotting a decent setup and let it go after identifying all those tricky things that show you may be wrong

I think, the only thing you can do when you spot a good setup is take it.

You can further analyze it all you want, but in that case wouldn't that be overanalayzing the trade which than leads to analysis paralysis? Clay, the originator of this methodology said many times Keep it simple and you'll be fine. Many others profitable traders said keep it simple. I agree. It is simple.

The one thing that prevents people to keep things simple is that when they lose a trade, afterwards they get angry and start seeing things that they maybe haven't seen before. And they futher analyze, learn, try this, try that, and it becomes neverending story. Learning is fine, but also is a keeping things simple and a common sense.

When I lose a trade, I look at it as business expense. Every business has it expense. Some are unplanned. In trading it calls drawdown and every trader alive has it. Some are bigger, some are smaller. It's inevitable. So, I'd look at it like this.

It's good too search for perfection, but it can become two bladed sword which can cut you into pieces. Been there.
  • #12,616
  • Apr 7, 2016 2:54am Apr 7, 2016 2:54am
Today on the Menu:

EURUSD
Don't underestimate the Power of H1 35/50 MAs
  • #12,617
  • Apr 7, 2016 4:02pm Apr 7, 2016 4:02pm
Dnc48, I see your point, but I did use the term "good looking setup" instead of "good setup" for a reason. There may be something very nice forming that you take but then, for example, it goes wrong and you realize the previous swing failed to create higher/lower recent level and in fact you shouldn't be taking them. There are several other classical cases that you should let a good looking setups go and NOT take it. That's the most difficult part in my opinion. It's got nothing to do with overanalysing.

All the best to you,
JK
  • #12,618
  • Apr 8, 2016 9:53am Apr 8, 2016 9:53am
I think one thing is keeping it simple, and other thing is automatic entering setups... Clay also stated that the success of a trader depends on his discretionary skill, therefore I completely agree with JK. The hardest part is knowing when to skip a good looking setup and realizing the odds are 50/50 at best.

best regards

Dnc: Pivots and Fibos basically work for the same reasons, self fulfilling prophecy.
  • #12,619
  • Apr 8, 2016 12:04pm Apr 8, 2016 12:04pm
Well, I still wouldn't skip a good looking setup

If I waited paitently whole day for price to reach my point of confluence I would feel silly to start ignoring it because something maybe go wrong. Yes, something may go wrong. Every time. But, if I follow trend of the moment, if I checked higher TFs, if I have strong confluence point, if the news arent' close, if the market doesn't running wild, I wouldn't miss it for the world. What else is there? Maybe check my horoscope ? Just kidding. I just don't want it get more complicated because I really believe you don't need much more. Not only believing it but seeing it. I believe it is so simple it really becomes so boring after some time. You just need patience and discipline to follow the plan. No fear, no greed. You have to train your self to become an automaton. Just processing your duty.

For me, most discretion currently comes into focus when I must decide should I open new trade immediately after if I get stopped out and how much profit should I take. Everything else is semi-automatic.

Everything we use in forex works because of self fulfilling prophecy. As I said pivots are S/R levels, I like to draw it myself as a zone. In fact I think I will throw pivots back on my charts if I found some good one which has all features that I can customise the way I like it.

Collected 85 pips this week. Which is somewhere around my goal. If I continue like this I will double the account in a month time.

Good luck to all !
  • #12,620
  • Apr 8, 2016 1:42pm Apr 8, 2016 1:42pm
Quoting Dnc48
Well, I still wouldn't skip a good looking setup If I waited paitently whole day for price to reach my point of confluence I would feel silly to start ignoring it because something maybe go wrong. Yes, something may go wrong. Every time. But, if I follow trend of the moment, if I checked higher TFs, if I have strong confluence point, if the news arent' close, if the market doesn't running wild, I wouldn't miss...
In the end I think you should do whatever works for you, if you're achieving consistency don't change it. I'm still strugling to find my consistency, but definetly geting closer.Btw, congratz on your weekly results mate and have a nice weekend.
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