10.4 A Complete System

[grimweasel]

I guess everyone has a fave MA combination Bob - I don't think any are wrong on the daily 9-100 zone - I think that people try and fine tune their systems too much for optimum results when the markets are dynamic and always changing. I use the 20/50 as I know that's what a lot of the Bank traders use - so I figure I may as well look at the same stuff as they are looking at.

The key is to use an MA band and stick with it - get to know how price reacts around it etc.

I've been using the 20/63 for ages but it wasn't until I read the logic of your H4 240 that it finally 'clicked' for me. Always trade on the right side of the trend and take the optimum high probability entries. Learn to control 'Hyde' the alter ego, and activate the Internal Observer, as Dr Steenbarger called it. We often make money and trade better by FADING our first instincts and what our conscious tells us to do.

The beauty of the system is that being on the right side of the MA and then waiting for a pullback, whilst also being cognisant of basic candle patterns and reversal bars allows one to stack the casino odds in their favour. So, once again thanks for your great work Bob. I think many rookie traders should resist their EGOS and just learn this system; don't try and figure out WHY a pair is trending as more often than not, what you THINK should happen doesn't and you sit on the sidelines watching a trade escape you. I have learnt from bitter experience to DITCH what I think I know about economics and just trade the signals on the chart. Doing the MBA was the worst thing I ever did for trading as it feeds the need to know and second guess the market part of the brain; it's much simpler to just trade with the underlying monthly trend and forget about funnymentals!

[Nipponho]

Set pending longs on NZDChf

Aud Cad can be triggered anytime soon
EURNZD & EURGBP are also potential setups. EURNZD flattened but EG not yet flatten
GBPNZD is further from 240ma compared to nzdchf & EN
GBPCHF rsi signals look unreliable base on past 2 weeks, pair appears not easy to trade

[Wiggy1965]

Bob

Right, I saw it on Monday and got in for a while. But then nothing happened. The pair went pretty much flat and RSI(2) fell off. So I got out.

How can you miss it??? Here is your chart. It gave the entrance signal for the entire last half of the week. I showed two spots you could have entered off of that signal. I dont understand how you miss this????

Well that was a good read then. I got out when it went about 35 pips in the hole, so I bailed on that one too. Just because you enter a trade doesnt mean you have to wait until it hits its SL to exit. I exit many trades long before the SL. Most of them I find out later I didnt need to but I still do.

Bob, what made you bail from the trade...?

Wiggy

I had two trades going chf/jpy and cad/jpy. My thought was I had basically two identical trades going and both were going negative. So why have two SL hits. So I kept the chf/jpy and dumped the cad/jpy. The chf/jpy hit the SL and was the smaller hit of the two. In other words the chf/jpy hitting the SL was 50 pips less than the cad/jpy SL, so I took the lesser of two evils. The reward would have been about the same so the chf/jpy had the better R:R ratio.

OK...

[nanningbob]

I guess everyone has a fave MA combination Bob - I don't think any are wrong on the daily 9-100 zone - I think that people try and fine tune their systems too much for optimum results when the markets are dynamic and always changing. I use the 20/50 as I know that's what a lot of the Bank traders use - so I figure I may as well look at the same stuff as they are looking at.

The key is to use an MA band and stick with it - get to know how price reacts around it etc.

I've been using the 20/63 for ages but it wasn't until I read the logic of your H4 240 that it finally 'clicked' for me. Always trade on the right side of the trend and take the optimum high probability entries. Learn to control 'Hyde' the alter ego, and activate the Internal Observer, as Dr Steenbarger called it. We often make money and trade better by FADING our first instincts and what our conscious tells us to do.

The beauty of the system is that being on the right side of the MA and then waiting for a pullback, whilst also being cognisant of basic candle patterns and reversal bars allows one to stack the casino odds in their favour. So, once again thanks for your great work Bob. I think many rookie traders should resist their EGOS and just learn this system; don't try and figure out WHY a pair is trending as more often than not, what you THINK should happen doesn't and you sit on the sidelines watching a trade escape you. I have learnt from bitter experience to DITCH what I think I know about economics and just trade the signals on the chart. Doing the MBA was the worst thing I ever did for trading as it feeds the need to know and second guess the market part of the brain; it's much simpler to just trade with the underlying monthly trend and forget about funnymentals!

Yes like I did on my eur/jpy trade last week. I hung onto that pair and used two levels because I was so sure the negative news would prevail back into the DT. I hate fundamentals, I hate fundamentals, I hate fundamentals but try to stop me from reading the news. LOL

[nanningbob]

Set pending longs on NZDChf

Aud Cad can be triggered anytime soon
EURNZD & EURGBP are also potential setups. EURNZD flattened but EG not yet flatten
GBPNZD is further from 240ma compared to nzdchf & EN
GBPCHF rsi signals look unreliable base on past 2 weeks, pair appears not easy to trade

CHF pairs are public enemy #1 as far as I am concerned. I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank,

[mjws00]

Heh. We were admiring their handiwork over at the captains thread. They are particularly adept at chewing up and spitting out traders.

C'mon London. I got trading to do, and you got moves to make.

Green pips 10.4 crew. Looking forward to seeing how the volume traders do.

Mike

[nanningbob]

Here is a trade that is low risk and doesnt quite fit the 10.4 scenario but it could be rewarding 5:1 R:R. The gbp/jpy broke just above the 240 line but could very easily break back down. The pivot and 240 MA are very close and playing a break off of both maybe a nice trade. Playing the gbp/jpy will reenter its DT but if it fails the SL is put on the other side of the 240 and Pivot making it a low risk but potential great gain trade. Looking for 100 pips but SL around 20 pips.

[nanningbob]

Heh. We were admiring their handiwork over at the captains thread. They are particularly adept at chewing up and spitting out traders.

C'mon London. I got trading to do, and you got moves to make.

Green pips 10.4 crew. Looking forward to seeing how the volume traders do.

Mike

I am up to page 18 on his thread, was busy the last couple of days. Love his Fox scenario nice story line. Everyone should follow his thread. When an experienced trader comes out of the darkness and shares everyone should take notice even if it isnt your trading style. You will still learn a lot. I will be interested in seeing how he adapts when price goes into a long trend. Range trading fits what he is teaching very well. I am very curious to see how it fits a trend when they come back. It is when you switch from one style to the other when the market changes is what makes or breaks every trading system. Either way he has my ear.

[Wiggy1965]

set pending longs on AUDCAD

I have that also, however we may have further movement to the downside...

Wiggy

[Wiggy1965]

Set pending longs on NZDChf

Aud Cad can be triggered anytime soon
EURNZD & EURGBP are also potential setups. EURNZD flattened but EG not yet flatten
GBPNZD is further from 240ma compared to nzdchf & EN
GBPCHF rsi signals look unreliable base on past 2 weeks, pair appears not easy to trade

CHF pairs are public enemy #1 as far as I am concerned. I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank, I hate Swiss National Bank,

We get it, ya hate Swiss National Bank...!