Trading is as simple as 1-2-3 | Page 134 | Forex Factory

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Trading is as simple as 1-2-3

  • #2,661
  • Mar 20, 2017 9:12am Mar 20, 2017 9:12am
Quoting Pent56
{quote} Hi Lemercenaire, Would you mind briefly explaining how you managed that trade in regards to stop loss etc. I only ask because the 2nd candle after the trade was entered made a new high. Did this set any alarm bells ringing? If it had continued to go higher would you have hedged the position? If you have answered this type of thing elsewhere in this thread then just say so and I will do some more digging! I am currently reading through both threads. Thanks.
No, I don't mind at all. I had taken the original trade and closed 80% at BE+5 (which I got by the skin of my teeth and the grace of a broker with tiny spreads) and the remainder closed at the sl. I rarely, if ever now, have a sl of more than say -15 / -17.

For the second entry, the H1 stop would have been too tight for me (about -7 I think) I used a marker from the H4 tf, which corresponded to about -17.

I will occasionally - very, very, occasionally - counter-trade (hedge in effect) but not on this trade. I find using the ''take 80%'' approach works just fine for 1-2-3.

Good questions!
  • #2,662
  • Mar 20, 2017 9:19am Mar 20, 2017 9:19am
Quoting lemercenaire
{quote} Might even be in for another go on the next hr... {image}
Well worth the wait...
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  • #2,663
  • Mar 20, 2017 9:24am Mar 20, 2017 9:24am
Still pushing. I didn't get singed as I was over with UC but I think I'll be watching this one now...

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  • #2,664
  • Mar 20, 2017 9:55am Mar 20, 2017 9:55am
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  • #2,665
  • Mar 20, 2017 9:59am Mar 20, 2017 9:59am
Another good option...

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  • #2,666
  • Mar 20, 2017 10:18am Mar 20, 2017 10:18am
Quoting lemercenaire
Another good option... {image}
Off we go...

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  • #2,667
  • Mar 20, 2017 10:22am Mar 20, 2017 10:22am
Quoting lemercenaire
{image}
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  • #2,668
  • Mar 20, 2017 10:23am Mar 20, 2017 10:23am
Quoting lemercenaire
Still pushing. I didn't get singed as I was over with UC but I think I'll be watching this one now... {image}
Like follows like...
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  • #2,669
  • Mar 20, 2017 1:10pm Mar 20, 2017 1:10pm
Quoting lemercenaire
{quote} Off we go... {image}
All good here, today...
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  • #2,670
  • Mar 20, 2017 1:14pm Mar 20, 2017 1:14pm
Quoting lemercenaire
{quote} {image}
The first move was nice enough but if you'd stuck around, the second would have been even better - and is still going, in fact (I didn't trade the second, I was off elsewhere).

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  • #2,671
  • Mar 20, 2017 1:16pm Mar 20, 2017 1:16pm
Last but certainly not least - still truckin'...

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  • #2,672
  • Mar 20, 2017 2:43pm Mar 20, 2017 2:43pm
Great trades there Lemercenaire,
I see that the new 1 hour bar only retraced a small amount towards the new high so I guess you have to sometimes be pretty quick to get in on the action. Is there anything you look out for on the price structure before getting into the trade? Such things as perhaps a long wick on the new high bar or only the small retrace on the new 1 hour bar. Or is it as simple as the stats show that these trades have a decent success ratio so with the right money management you are confident on entering any of these trades?
Again thanks to you (and TooSlow) for answering all these questions (probably more than once!).
Cheers,

Pent
  • #2,673
  • Mar 20, 2017 2:58pm Mar 20, 2017 2:58pm
Quoting Pent56
Great trades there Lemercenaire, I see that the new 1 hour bar only retraced a small amount towards the new high so I guess you have to sometimes be pretty quick to get in on the action. Is there anything you look out for on the price structure before getting into the trade? Such things as perhaps a long wick on the new high bar or only the small retrace on the new 1 hour bar. Or is it as simple as the stats show that these trades have a decent success ratio so with the right money management you are confident...
Those new to HOLO should be taking OBVIOUS TRADES ONLY.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #2,674
  • Mar 20, 2017 4:51pm Mar 20, 2017 4:51pm
Quoting Pent56
Great trades there Lemercenaire, I see that the new 1 hour bar only retraced a small amount towards the new high so I guess you have to sometimes be pretty quick to get in on the action. Is there anything you look out for on the price structure before getting into the trade? Such things as perhaps a long wick on the new high bar or only the small retrace on the new 1 hour bar. Or is it as simple as the stats show that these trades have a decent success ratio so with the right money management you are confident on entering any of these trades? Again...
Cheers - and before I go any further, I will also have to back TS in his comment above. There are more than enough opportunities through the day to find 1-2-3 trades and I would agree 100% that newcomers should look out for the most obvious trades only while they learn the ropes and get a feel for how these trades move. They have a distinct rhythm all of their own and it takes a little while to tune into that.

Having said that, it's a valid question and you are absolutely right, sometimes you do have to be ultra-quick. The great thing about 1-2-3 is that you have had that last new high form and give you (usually) more than enough warning that there is a potential set up coming. It's then a case of getting all your ducks in a row, so all you need do is click that button.

It is something that myself, Pippy and Hal have all looked at at some point, the idea that perhaps one shape of bar is a better bet than another - a drop back from an extreme push etc - but we all came to the same conclusion that the edge (if there was one) was not great enough to act as a worthwhile filter. Instead, use your trader's brain to step back and take a look around...what is happening on the H4 or even Daily time-frames? Is this move one at the very beginning or very end of the day, or in the middle of a session? Has there just been news - about to be news? You get the picture.

After all is said and done, if the move comes really quickly after the new open, then you roll those dice - with all that experience behind you for sure but you're still rolling dice. All you can do is be brutal with your stops and clinical in your execution. It'll do one of two things - work or not work.

Always bear in mind, that in most cases (and yes, most doesn't mean all) if the first move fails and you stick with it, the likelihood is that you will get that trade eventually.

At the heart of it all, trust the method. It will see you through if you execute properly and with discipline and control.
  • #2,675
  • Mar 20, 2017 5:44pm Mar 20, 2017 5:44pm
Thank you both for replying so quickly and I totally agree with sticking with the more obvious trades. With practice these obvious trades will only become more apparent I am sure.

I have been very surprised how many times the opportunities do come up during a trading day and not only that what appears to be a very good win ratio (although I have only been doing this method for a few days but I did spend some time over the weekend going back over the charts and looking at previous days.)

I have been getting in to the routine of writing down on a pad which pairs have created a new high or low in the current hour so then it becomes a lot quicker when the new hour comes to keep track of those pairs. You are absolutely right Lemercenaire that this method gives us plenty of time to get prepared. I also really like the way the two methods TooSlow has highlighted in his threads go so well together - much appreciated TooSlow.

Thanks again Lemercenaire for taking time out to write such a detailed and useful reply. I will keep on practising. Looking forward to it.
  • #2,676
  • Mar 20, 2017 6:00pm Mar 20, 2017 6:00pm
Quoting Pent56
Thank you both for replying so quickly and I totally agree with sticking with the more obvious trades. With practice these obvious trades will only become more apparent I am sure. I have been very surprised how many times the opportunities do come up during a trading day and not only that what appears to be a very good win ratio (although I have only been doing this method for a few days but I did spend some time over the weekend going back over the charts and looking at previous days.) I have been getting in to the routine of writing down on a...
Glad to have helped. Stick with it - both 1-2-3 and HOLO - as both methods will repay your hard work many times over. Good to have you here.
  • #2,677
  • Mar 20, 2017 6:10pm Mar 20, 2017 6:10pm
Hey Groovers,
well that 134 pages took some time to get through. Not that I am complaining. Always a treat to read Lem's posts with his humour makes it an enjoyable ride.
Now all I have to do is apply what I have learnt, and see if I can join the 1-2-3 party.
Certainly sounds like a good place to be. Hal seems to be having a wow of a time, and TS is never too far away.....(you will always find him in the kitchen at parties.....good name for a song!!)
And it has to be a party if Lem is there, so if you don't mind, I might gate crash this gig, and see where all the noise is coming from.
I think I might do a 10 trade challenge first with "toy" money (0.01) on one pair (like in HoLo) and see if I can get the feel.
Being in Aus might make it a little more difficult, but as we know, reversals can occur at any time, so I will just take my time and see what happens.
Thanks to TS as usual for these "naked" trading concepts. I, like all you guys, are not at all excited by flashing lights and squiggly lines, so am happy about that.
Look forward to getting involved, though only in a small way, as my chart posting abilities are slow at best, and I do like to "trade" rather than "post".
Anyway, cheers to all, and fingers crossed I can keep my eyelids open long enough to come across these puppies.
Cheers
Michael
  • #2,678
  • Mar 20, 2017 6:41pm Mar 20, 2017 6:41pm
Quoting MichaelG
Hey Groovers, well that 134 pages took some time to get through. Not that I am complaining. Always a treat to read Lem's posts with his humour makes it an enjoyable ride. Now all I have to do is apply what I have learnt, and see if I can join the 1-2-3 party. Certainly sounds like a good place to be. Hal seems to be having a wow of a time, and TS is never too far away.....(you will always find him in the kitchen at parties.....good name for a song!!) And it has to be a party if Lem is there, so if you don't mind, I might gate crash this gig, and...
Hi Michael. Good to talk to you again! Even better to have you here - it really is a great place to be - one of FF's great unheralded secrets.

I would say that perhaps using more than one pair (three maybe?) would be a better idea. Unlike HOLO, where you can get multiple opportunities on one pair during the day, with 1-2-3, it's more likely one, maybe two and not even every day. This isn't as big a deal on 1-2-3 as it is on HOLO, as you are trading a pattern and less a ''behaviour'' (does that make sense?).

However, If you do want one pair, I'd suggest looking for one that repeats the movements - for instance we have noticed that UC has a tendency to ''top-and-tail'' the day and you should be able to find one pair that runs a movement through the day that syncs with your session.

Don't worry about posting or not posting charts (''live'' or otherwise) - you'll know from reading the thread that that's not something we bang on about. If you do, you do, if you don't...we won't shoot you .

All we need is Pippy back from the war and the band'll be back together for the reunion tour. (Hal can guest on keyboards and backing vocals).
  • #2,679
  • Mar 20, 2017 7:13pm Mar 20, 2017 7:13pm
Quoting lemercenaire
{quote} Hi Michael. Good to talk to you again! Even better to have you here - it really is a great place to be - one of FF's great unheralded secrets. I would say that perhaps using more than one pair (three maybe?) would be a better idea. Unlike HOLO, where you can get multiple opportunities on one pair during the day, with 1-2-3, it's more likely one, maybe two and not even every day. This isn't as big a deal on 1-2-3 as it is on HOLO, as you are trading a pattern and less a ''behaviour'' (does that make sense?). However, If you do want one pair,...
Hey Mate, thanks for the welcome.....and the tips.
Not sure if Hal will be available for the tour. Too busy counting his cash. The man is a human dynamo

Just a question if I may....
In HoLo, I strongly advocated using...
1) In a SELL trade, I would wait for the ASK price to come through the H1 Highest Open before taking the trade.
2) In a BUY trade, I would wait for the BID price to come through the Lowest H1 open before taking the trade.

My logic being that it would give the trade a bit more breathing room between entry and stop.

Do you advocate the same entry "style" with 1-2-3......or do you just use the Bid in a SELL and the ASK in a BUY. I know it is simply the spread we are talking about, but as with HoLo, it doesn't appear that there is a lot of room sometimes between entry and stop, so the spread can play a big part in success or failure I would imagine.

I suppose there is always the option to add the spread onto the stop (say +2 pips for ease), but just a general enquiry.

Thanks again. Talk soon.
Michael
  • #2,680
  • Mar 20, 2017 7:40pm Mar 20, 2017 7:40pm
Quoting MichaelG
{quote} Hey Mate, thanks for the welcome.....and the tips. Not sure if Hal will be available for the tour. Too busy counting his cash. The man is a human dynamo Just a question if I may.... In HoLo, I strongly advocated using... 1) In a SELL trade, I would wait for the ASK price to come through the H1 Highest Open before taking the trade. 2) In a BUY trade, I would wait for the BID price to come through the Lowest H1 open before taking the trade. My logic being that it would give the trade a bit more breathing room between entry and stop....
Hi again. I use the same method of entry on both. Two reasons - first being that as I am constantly moving between methods, I want as little as possible distracting me from making the trade. Keeping the entry method the same just makes more sense to me and tbh I never even considered changing it. Second reason is also a major factor, I guess and that is the fact that my broker has teeny, tiny, spreads.
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