10.4 A Complete System

[Nipponho]

Don't worry i'm down about 2000 pips. i was +$640 on my account. now i'm back to $300.. no worries though, i made 300 in a few days .. so i guess you can lose it just as quick lol.
that's nothing compared to what i lost last year

Thanks. I'm OK, it is only 0.01 lot, so the loss is about US$28, it doesnt cripple my account, just that it was my virgin trade and turn out disastrous. Next week i will eat the loss and move on.

Seems like the 2 of us are the only ones ending negative. At one stage i saw u doing pretty well, up 17%.

I was trying to smart alec by selecting only the best setups. But now i thin i should try to spread out.

Let's have a restful weekend. Monday morning we will face the battle for another week.

[Nipponho]

Hey, Allison, by the way, did u have 5 or 6 trades that went bad consecutively during the week? Would u mind to tell us which are the pairs? Mine was so disastrous, but yet it was only 300 over pips. To chalk up 2000 pips, there must be at least 3 or more separate trades that went terribly bad.

I find that the rsi version gives better signal than the stoch which does not have the flattening.

[Gertje]

I am at negative 200 plus pips. I was hoping CadJpy will have a rejection of the 240ma. The more i waited the more it goes the other side....... until 300 over pips in the red . Fortunately it is only 0.01 lot and i have some positive pips from NU to partially cushion my loss. I'll try to find a cheaper exit next week.

One or 2 of us were disciplined enough to cut loss, unfortunately i wasn't

By the way, the scanning dashboard written by TigerCandle is very useful. It shows u in ten seconds where are potential setups so that u can go straight to the chart instead of going through 20 charts.

Don't worry i'm down about 2000 pips. i was +$640 on my account. now i'm back to $300.. no worries though, i made 300 in a few days .. so i guess you can lose it just as quick lol.

that's nothing compared to what i lost last year

Following the 10.4 MM-rules, One needs al least $1.000 per 0.01 lots using à standard broker. 200 pips SL wil be 2% already. Most of the time the 240MA is even further away.

I use à broker offering $10k lots, so $1,- per pip for à full lot. Only this allows me to trade 0,02 - 0,08 lots with my $235,- balance. Spread is huge and orderplacement crap, but I can accept that for now. Once I get confident enough to trade this with bigger amounts I'll take it to à serious broker.

Remember, for à true ECN-broker trading minimum 0,10 lots you need at the very least $10,000,- to start with.

[mjws00]

why does correlation matter ? and what does it have to do with trading multiple pairs ?

Answered this for you in the Advanced thread. Correlations Didn't see it here.

[Nipponho]

Following the 10.4 MM-rules, One needs al least $1.000 per 0.01 lots using à standard broker. 200 pips SL wil be 2% already. Most of the time the 240MA is even further away.

I use à broker offering $10k lots, so $1,- per pip for à full lot. Only this allows me to trade 0,02 - 0,08 lots with my $235,- balance. Spread is huge and orderplacement crap, but I can accept that for now. Once I get confident enough to trade this with bigger amounts I'll take it to à serious broker.

Remember, for à true ECN-broker trading minimum 0,10 lots you need at the very least $10,000,- to start with.

I guess u are referring to cents account, where at 0.01 lots, 1pip=1UScent. Cowboy IBFX australia has cents account. 1:400. Spread is not huge. Order placement crap or not, i am not sure. The cents accounts offers us quite a lot of flexibility to vary our bets.

Bully Pepperstone is ecn, but they didnt insist on US$10000.

By the way, what is max risk we should be taking at any one time? If risk is 1% per trade, if we enter into 5 pairs, and if all hits SL, we will lose 5% for that week. I know this is subject to personal preference, just want to make a survey.

[nanningbob]

Following the 10.4 MM-rules, One needs al least $1.000 per 0.01 lots using à standard broker. 200 pips SL wil be 2% already. Most of the time the 240MA is even further away.

I use à broker offering $10k lots, so $1,- per pip for à full lot. Only this allows me to trade 0,02 - 0,08 lots with my $235,- balance. Spread is huge and orderplacement crap, but I can accept that for now. Once I get confident enough to trade this with bigger amounts I'll take it to à serious broker.

Remember, for à true ECN-broker trading minimum 0,10 lots you need at the very least $10,000,- to start with.

I guess u are referring to cents account, where at 0.01 lots, 1pip=1UScent. Cowboy IBFX australia has cents account. 1:400. Spread is not huge. Order placement crap or not, i am not sure. The cents accounts offers us quite a lot of flexibility to vary our bets.

Bully Bully Pepperstone is ecn, but they didnt insist on US$10000.

By the way, what is max risk we should be taking at any one time? If risk is 1% per trade, if we enter into 5 pairs, and if all hits SL, we will lose 5% for that week. I know this is subject to personal preference, just want to make a survey.

I can have 20 trades going on at once but they are not entered at the same time or same currency group. If I take 2 trades in the morning and 2 in the afternoon and 2 in the evening and 3 the next day and so on. The chances are will every trade go against me and be changing trends all at the same time? The answer is no. I tried explaining this one time and never could quite get the concept across but my chance of people understand this is those who have taken accounting or understand accounting. For every positive you have a negative. The same thing in Forex. If something is going up something has to go down, the accounting has to balance. This up and down balance is spread over 7 base currencies and dozens of currencies pairs but the bottom line is they all have to balance accounting wise. For example if the eur/usd goes up one pip that means the euro goes up one and the usd goes down one. This also correlates if all or most of the euro pairs are going up there is a corresponding groups of pairs going down. You can see this every day on the info page. So as long as you mix and match your pairs and diversify you cant be wrong 100% of the time unless all your trades are with a certain currency group. If I have trades in all pairs some of them have to be going the opposite direction of the other. I have not traded 10.4 enough to know for sure but what I have seen is when I get a DD with some pairs, the successful trades being multi-level, losing trades being single level, get my DD back to BE or close to BE. I then can clean the board, close the profitable and try again, or design a plan to trade each pair. So when GBP pairs I got in too early on because I was sure the GBP credit downgrade would start a negative trend didnt happen I had this DD with GBP. I off set this by trading USD and AUD pairs which went into profit and eventually used those multiple winners to close out GBP losers until GBP finally went back down and I made winners on them again. I am finding out if something is going against me then finding something that will go for me and balance the whole thing out. I am not caught in the DD spiral. So for some of you this will make sense and to others you are going to go. What the heck is that??

[GT3RS]

First off, many thanks to Bob and all other contributors for creating this great strategy.

I have my own take on it, but rather than cluttering up the main thread, I have started a new thread for anyone that's interested: http://www.stevehopwoodforex.com/phpBB3 ... 401#p45401

Cheers,

Rob

[lhDT]

I saw bob talking about Stoch 5,3,3 as a RSI2 replacement. Who is using it instead of RSI2 ?

[trueblueTEX]

I saw bob talking about Stoch 5,3,3 as a RSI2 replacement. Who is using it instead of RSI2 ?

I've only used the Stoch version from the v1.02 template. I have traded this for 2 weeks and paid VERY LITLE attention to it this last week. Even so, I've increased a $500 demo account to $547; nearly a 10% increase.

I've not made anywhere as many trades as most here. I have looked at several of the 10.4 meters (including yours) almost exclusively to decide to enter or not. I look at the chart that the meters have shown to be potentials if it looks good and 240 is not "too far" (this is subjective) then I place a pending.

I kind of like the idea of having both Stoch and RSI on the same meter.

[lhDT]

I kind of like the idea of having both Stoch and RSI on the same meter.

Yep, it looks like this (see attached file). The red line is stochs 5,3,3 with fixed minimum at 30 & 70.