Limitation and Weaknesses of 10.2

[andrewczeiz]

Ok, so firstly a big THANKYOU to all involved!
It is not only a brilliant piece of trading script but a shout out to the group of extremely generous individuals who made this possible.
These people give me hope that humans will always have the ability to group together as a single
powerful unit.

Now, we all love the nanningbob but i was wondering if we could make it bulletproof.
Hence I open up the floor for the experts to discuss weaknesses and cures.
Many thanks and best,
Andrew

[youcrazykids]

Hi all

10.2 identifies entry conditions brilliantly (and is a tremendous system - something to be incredibly proud of, NB!), but there's not so much discussion about exiting trades or abandoning trades when the market moves the wrong way. There was some generic advice, such as "Cut your losers short", but nothing very specific.

Concerning trades which end up going into DD, I'm no longer an advocate of "recovery", as I've previously fallen prey to market moves which far outweigh my ability to stay solvent. For this reason, I prefer to use either a SL, or a set of solid conditions for abandonment of rotten trades. Some hard and fast rules about this would be a real boon.

Thanks

youcrazykids

[Jemook]

There is nothing wrong with the system. If you are a good trader you will make this system work for you using good money management and techniques. Learn how to trade properly by getting your mental state right and money management right and you will get this system making you shitloads of money, I promise you that.

You can use recovery if it works for you. You can use tight stops. You can trade baskets. You can aim for 1:2 risk to reward. You can try it out in an EA. You can package the system and change the name and sell it to the hare krishna and you'll make you money.

If you are struggling with this system it's because you haven't learnt enough about forex to make it work for you yet. But that's ok!! Because keep watching and learning and you'll get it.

There's heaps of examples out there of people trying different things. If you'd like have a look at my basket thread. I'm using 10.2 to get in on retracements on 10 pairs at the same time in the direction of a higher trend and aiming for 400 pips. Crazy? Yep. Does it work? We'll see.

Here's tonights trades:

2012-06-27 11.43.08 pm.png

I'm not live yet as I'm just practising because I'm still learning too But I'm using all I've learnt in forex to make it work for me and hopefully others too if they are interested.

[Alpenkorps]

I am totally agree with Jemook, No strategy will ever make money if you just follow it blindly. You must know the basic, perhaps a little more than basics.

I am new to 10.2, I am surprised to see that is matches many of my manual trades .. so this is how I am planning to use it, an extra confirmation to my manual trading decisions.

Give a bad trader a good system, he will still lose, Give a good trader a bad system, he will somehow manage to make profit. 10.2 is more than what you could ask for.

One more thing I would like to add here, if you are used to shorter time frames, if you are itchy, impatient, 10.2 is not for you. Not everyone can trade swing at higher timeframes, some traders are mentally more suitable for scalping, and thats not a bad thing at all. You make money, thats all matters in the end.

[garyfritz]

My only kvetch is semantics. I consider a "system" to be a complete strategy, with entries, exits, etc. 10.2 is a collection of indicators with a few general guidelines. Not that there's anything wrong with that, and it's a very good collection and very good guidelines. But as Jem said, you have to take that collection and turn it into a complete trading strategy for YOU. Jem, Shelley, and others have been doing a fabulous job of that. And those of us who are less talented at taking the 10.2 building blocks and creating a working strategy appreciate their sharing!!

[magma]

I was about to ask the same question, I thinks Andrews question is not related at to about trader skills and how is he using the system effectively.

Everybody here tried so many systems and for each system there are some pros and cons.

For example: some systems works only with some pairs, some of them will work with every pair but the SL is too big.

Some systems for long term trades and some of them for very short term.

Some people can trade on Asian session only, and the system can't be used at this session

Such things is really what I need to know

[retireme]

My only kvetch is semantics. I consider a "system" to be a complete strategy, with entries, exits, etc. 10.2 is a collection of indicators with a few general guidelines. Not that there's anything wrong with that, and it's a very good collection and very good guidelines. But as Jem said, you have to take that collection and turn it into a complete trading strategy for YOU. Jem, Shelley, and others have been doing a fabulous job of that. And those of us who are less talented at taking the 10.2 building blocks and creating a working strategy appreciate their sharing!!

Are you watching over my shoulder Gary? I have to admit that I am struggling, I understand what NB says with regard to identifying the trade but with so many ways to trade it, I get lost with each thread and method. Yes I am dumb! Will probably not work again due to medical reasons, not in trouble financially yet but I need to find a way to put food on the table with as little risk as possible.

Btw... what is "kvetch"? How do you trade it?

[Jemook]

retireme – Have you seen the TV Series Breaking Bad? You could always get into the drug dealing game. It's pretty lucrative and first offense you usually just get a warning

In all seriousness though, I hope everything is ok with your medical reasons. Have you read and do you understand 10.2 and 10.2a yet? If you get the ins and outs then it all comes down to risk management and making the ideas work for you. Please see this thread for now:

http://www.stevehopwoodforex.com/phpBB3 ... f=37&t=662

Also, in Yiddish to complain is to 'kvetch'

[kelisa]

I am also looking for weakness in 10.2, but unable to find one yet.

What I gathered is, if you fall into large DD, that could mean u enter a trade too early, ignoring the retracement, or not all your indis are aligned. To try out this system, wait for a higher probable setup, with MWD pivot in line, CSSDiff >0.4, completed a retracemnt/bounce off DPP, close above 5.1 for a LONG entry. I guess it very rare for such a setup to go south suddenly. The above is based on H4 or my style is H1 for entry sexy up!

One point about weakness is, when price start to range, there is no trade from 10.2. You have to go down to LTF to trade high low ranges or off TMA bands.

[Armen]

I must admit that even following blindly all of rules and setups (NB 10.2, NB 102.A and NB 10.2A Jem) can make you money. Of course you should not guess and jump beforehand. I think this is crucial. IMHO. The system and indi set allows to look at the market differently, identifying trend and congestion. The rest is understanding of Forex in general. Also, I think this system designed so it indirectly incorporates the big traders way of thinking.
@ magma
NBob emphasized that this system can be suitable for long term traders and short term traders as well. He even mentions scalping possibility. I vote for this system.