10.4 A Complete System

[SteveHopwood]

allisonmagic, you do realise don't you, that any second now Bob is going to send a post stating that we are both wrong to be short ENzd because of xxxxxxxxxx?

[spotdespot]

well if you want to take offence, that's your problem.. i never meant it that way.. i'm just saying if the rules are wrong, then someone needs to rewrite it.. and yes i got these results from following the same rules i'm using right now. the same rules you are telling me are wrong. the same rules that gave me +17 %

Actually I didn't say you were wrong - I said I'd been doing the same as you but I have an open mind if cmeade has something to add that may help me. What I said is that your posts were pretty disrespectful and I implied they were unnecessarily aggressive when there are generally only people trying to help each other here.

Anyway enough - I quit - as it isn't my "problem" and I am way too old for play ground arguments.

GL

[trueblueTEX]

I also have a pending short at WMS 1, with tp for both at WS. Originally, I had a pending sell at WS as well, but ITM took out all my pendings when a trade from another system rendered them 'unbalanced'. I had to do a bit of fancy footwork to persuade my own bot to leave my own pendings in place. Literal thingies, my bots.

I had put in a Pending sell on the E/NZ. After the sell triggered I put ITM on the screen.
Then twice I tried to add a pending for the next level (granted, price had come back against me at that point) but ITM took it out each time.

It would be "oh so cool" if a message/alert/something was written from ITM to say "why" it removed something.

[Anonymous]

Hehe. My ENzd sell is looking pretty pathetic right now.

Hey how. We shall see. I made 3% yesterday, so a failure here will still leave me nicely in profit.

the only thing that put me negative was the news that was just released.. however the rules still apply that's why i'm gonna hold this one

Your entry fit the rules, SL just above 240 MA. PA is dancing around the WP at the moment. If the down trend persists, then you would very likely see EURNZD ploughing down south during the Asian session.

No system is foolproof. As Bob points out, if you get stopped out, your loss is limited to one level. However, if the down trend continues, you may have a multi-level win. That is the beauty of the strategy. So, in the long run, you should be profitable.

Trading forex is a marathon, not a sprint.

P.S. There is no certainty that the down trend will continue. The move up from WS to WP is quite strong, so it may break above the 240 MA in the next 24 hours. However, PA appeared to be bouncing off the mid WR1 pivot, favouring a continuation of the down trend.

[rebyte2]

Here is my interperation of 10.4 rules.

Pending shorts ONLY.

STO5 topped, under 240ma.

Also PA failed again at this level(my own rules).

You will see my 1st pending is well away from the PA to give the STO5 and AO room to turn down(about 120 pips).

If it keeps moving up, then no harm done.

cheers....

[SteveHopwood]

Here is a more ambiguous one. GU:

chart.gif

Red arrow marks the time I sent the pending. Price is < MA, so we are looking to sell. Rsi flatlined briefly.

Look where Rsi is now, though. Do I leave the pending in place?

This is my real live trading account with real live money. Ok, so only a tiny account so I do not care all that much, but still real live cash I do not actually want to lose.

S, I am leaving the pending in place because:

• the market is well below the ma and so the trend is down.
• 'eyeballing' the H4 shows lower highs and lows, suggesting the market is still falling.
• ditto the D1.
• just because Rsi is oversold does not mean it will come out of oversold immediately. It can remain oversold for a long time - 'bound' control and all that stuff.

Doesn't mean I am correct, either. I am simply explaining why I am keeping this pending GU sell in place.

[cmeade2]

OK everyone (Allison included)

I have gone back and reviewed Bob's manual for 10.4. I'm not going to pull out quotes, but there is a lot of material that talks about getting ready for a trade because things are setting up in the right direction. At the top level, he says only sell below the 240 and buy above it. And then he goes into the issues about the AO and RSI(2).

For example, if you are below the 240 and the RSI(2) is pinned high and the AO is totally green, he makes it clear that you are looking for a short. But the key point is when to enter the trade.

As a matter of background, I am the guy who totally turned Bob onto the RSI(2) and he credits me in the manual.

I have been trading this for a while, and I think that Bob has put it together in a really good way in 10.4.

The key point from my perspective is that you need to trade in the direction of the RSI(2). If you are below the 240, and it is pinned high, it can represent two things. It might say that you have a huge positive trend, and you should respect it. Or it may say that things are over bought and they will reverse.

The key question is which is right.

Given that from the 10.4 perspective all you want to do is sell below the 240, it seems to me that you need to wait for a signal that things are going in that direction. And from my experience, that requires a print of the RSI(2) that is below its very high level.

We can continue this discussion, and I would be happy to post charts that illustrate these views.

But the main point is that I really think we need to get Bob to weigh in on these issues.

All the best

cmeade2
For 10.4

[cmeade2]

In my view, it's not ambiguous at all.

But I am making dinner.

Here is a more ambiguous one. GU:

[padnoter]

well looks like i might have opened a can of worms with the eurnzd...
from what i read in the pdf, i agree with allisonmagic&steve etc that eurnzd is a valid short order (below 240 & rsi flatlined at top) that has been triggered - depending on how close you set the order - somewhere below WP...
hopefully bob will clarify anything that is needed?

just read cmeade2 above... that makes sense on the rsi2.... bob - help - please

[SteveHopwood]

For example, if you are below the 240 and the RSI(2) is pinned high and the AO is totally green, he makes it clear that you are looking for a short.

Nice one. I missed this from the documentation. Ok, so it should have been obvious, but I am an idiot.