10.4 A Complete System

[mjws00]

Mine missed the stop by a pip. Entered 0.78114, SL 0.77631. Low on that bar 0.77643. I mentioned this was a peeker trade when it started. I don't love the chfjpy either.

Neither have given me a probable exit. A stop is ONE TRADE. Never think twice about it. Let it ride, follow the rules and live to fight tomorrow. When they run, they pay. Ask Gertje.

I am pretty sure most of these entries, even the crazy ones, will have an opportunity to win with them. Occasionally they will spike us in and run it away from us.... but not all the time. I will hit everything that moves. But I won't do it on a live account, 2-3 weeks live is meaningless statistically. At 500 trades it can have my money... and even then I will frequently skip trades for safety's sake.

Mike

[jmdias]

What u think about GBPXXX pairs..??i see it like a "perfect storm " tomorrow
any opinion?

[f451]

I've compiled a selection of useful notes and comments about applying NB10.4 for myself, and thought I'd share. None of this replaces reading Bob's booklet or reading the thread or demoing on your practice account, but might help some nevertheless.

NB 10.4 USEFUL NOTES

Simple version of the rules

TRADE DIRECTION
1. BUYS only when price is above 240, SELLS only price is below 240

PENDING ENTRY ORDER PLACEMENT
2A. RSI(2) hits 100 while looking for a sell
- set pending sell orders at the next and subsequent pivot level(s)
2B. RSI(2) hits 0 while looking for a buy
- set pending buy orders at the next and subsequent pivot level(s)

OR use LWMA(5) shift 1, when price closes above (below), enter

STOP LOSS
3. Conservative STOP LOSS - set initial SL just above/below the 240 LWMA
3a. Aggressive Stop Loss - set above/below nearest swing high or low or

TRADE MANAGEMENT
4. If trade triggered, we are looking at AO to change colour to confirm our position i.e on a sell
(green to red) but this is not required

5. If in a trade, AO signals exit when it reverses its colour i.e. red to green - signals end of a
sell, green to red - signals end of a buy - time to assess the trade for exit

6. Trade management - if position moves to profit, or subsequent pendings are entered, set a
breakeven stop on the entire position - some people add a few pips to the BE to cover swap, spread and commission and create a small profit.

- Max 200 pip S/L or above/below most recent swing point (instead of distance to 240LWMA) makes
more sense than blindly using distance to LWMA 240 (although I note the further away from the MA price is, the move likely it will be to revert to the mean - NB10.4 should keep you out of those situations though).

AGGRESSIVE ENTRIES

Trade direction determined by which side price is with respect to 240 LWMA (above = BUYs, below =
SELLS)

enter every pair that fullfills one of the 4 rules:
- WP cross
- AO colour change
- RSI flat
- AO other side of '0'


TRADE MANAGEMENT OF TRADES IN DRAWDOWN

NB says

If I make a mistake and enter too early the problem resolves itself usually within a couple of
days to at least BE. If not, I know to bail at the 240 line. I am starting to get my trade average
back up to 75-80% overall again but now I have little to no DD.

CANCELING PENDING ORDERS

NB says

1. I cancel all my pending orders near the close on Friday or when ever I am done trading for the
week. I dont want to get caught with a bad entrance from weekend gaps.

2. I cancel the trade when it crosses the 240 line and I am not longer trading in the right
direction of the trend. Obviously there is some discretion there if you are looking for a bounce
off of the 240 line.

3. I am taking profit and no longer want to enter a trade until I get a new signal.

4. I already have enough trades going and dont want to enter anymore. In other words I want to
limit my risk. It is not unusual for me to have 20 pending trades set on 10-15 currency pairs but
when several are taken I cancel the others so I dont have too many trades going at once. For
example I had pending trades going on all the GBP pairs during the week but once I had 3 pairs
trading I canceled the others so as not to be too exposed with GBP trades.

QUALIFYING TRADE ENTRIES

Strongly trending PAIRS are currently respecting a TRENDLINE or TREND CHANNEL
- if you can't draw a clear trend, or the TL is broken, do not take the PAIR - retracements on this
pair are more likely to the begining of a range or trend reversal than a trend continuation

- Avoid trading pairs that aren't making HH and HL or LL and LHs - they are either ranging or in
the process of reversing, so swings in momentum and pullbacks (i.e. RSI pinned at 100 or 0) are likely start of a trend reversal not a continuation - in these circumstances NB10.4 rules are more likely to get you in on the wrong side of the move

- So pairs that aren't making HH/HL or LL/LH are good candidates for mjsw00's advanced counter trend trading, but worth avoiding for NB10.4 standard trades

- if markets are ranging instead of trending, TP at the next pivot level, rather than setting a
range of pendings at each next pivot level.

- you can wait for RSI(2) to come off the highs (lows) before setting the pending (although this
shouldn't matter)

- check the USD, EUR, GBP, JPY, CHF indexes (or majors) for signs of reversal or exhaustion - if
they change are seem to be changing, then 10.4 standard trades are much risker - maybe opportunity to trade counter trend instead as trend on cross will probably begin to reverse

- use price action confirmation on a lower timeframe (e.g 1HR or 30M), daily hi/lo or last week high/low to time a better entry once NB 10.4 conditions for entry are met

- Switch down to 1HR to time entries in direction of current trend (you can use
daily 200 sma, or 960 sma to see which side of the market you should be on)

- trendlines still matter - examine them and use them - avoid NB 10.4 trades when just breaking a
TL - this is an early heads up for a reversal of the trend, or transition to range

TAKE PROFITS AND TIMING

The markets move in rhythms and waves, and you'll often find your profitable trades hit a highwater mark around certain ties, before falling back.

NB says

I will take my profits 3-4 hours into the USA session.

For some of you guys that have not read my TP times. The best time to TP is 2-3 hours into the JPY
session 3-4 hours into the Euro and USD sessions. That is usually when price will peak before a
retrace. If you are sitting at a S/R point during those times that is when I take em.

[chye]

I remember the information about Bob from forexfactory,15 March is Bob's birthday.
I just want to say
HAPPY BIRTHDAY NANNINGBOB
Thank you for all your contribution
and also thanks for your teaching in CHINA

[nanningbob]

Nice review, Did I really say all that ?????????

[Wiggy1965]

I've compiled a selection of useful notes and comments about applying NB10.4 for myself, and thought I'd share. None of this replaces reading Bob's booklet or reading the thread or demoing on your practice account, but might help some nevertheless.

NB 10.4 USEFUL NOTES

Simple version of the rules

TRADE DIRECTION
1. BUYS only when price is above 240, SELLS only price is below 240

PENDING ENTRY ORDER PLACEMENT
2A. RSI(2) hits 100 while looking for a sell
- set pending sell orders at the next and subsequent pivot level(s)
2B. RSI(2) hits 0 while looking for a buy
- set pending buy orders at the next and subsequent pivot level(s)

OR use LWMA(5) shift 1, when price closes above (below), enter

STOP LOSS
3. Conservative STOP LOSS - set initial SL just above/below the 240 LWMA
3a. Aggressive Stop Loss - set above/below nearest swing high or low or

TRADE MANAGEMENT
4. If trade triggered, we are looking at AO to change colour to confirm our position i.e on a sell
(green to red) but this is not required

5. If in a trade, AO signals exit when it reverses its colour i.e. red to green - signals end of a
sell, green to red - signals end of a buy - time to assess the trade for exit

6. Trade management - if position moves to profit, or subsequent pendings are entered, set a
breakeven stop on the entire position - some people add a few pips to the BE to cover swap, spread and commission and create a small profit.

- Max 200 pip S/L or above/below most recent swing point (instead of distance to 240LWMA) makes
more sense than blindly using distance to LWMA 240 (although I note the further away from the MA price is, the move likely it will be to revert to the mean - NB10.4 should keep you out of those situations though).

AGGRESSIVE ENTRIES

Trade direction determined by which side price is with respect to 240 LWMA (above = BUYs, below =
SELLS)

enter every pair that fullfills one of the 4 rules:
- WP cross
- AO colour change
- RSI flat
- AO other side of '0'


TRADE MANAGEMENT OF TRADES IN DRAWDOWN

NB says

If I make a mistake and enter too early the problem resolves itself usually within a couple of
days to at least BE. If not, I know to bail at the 240 line. I am starting to get my trade average
back up to 75-80% overall again but now I have little to no DD.

CANCELING PENDING ORDERS

NB says

1. I cancel all my pending orders near the close on Friday or when ever I am done trading for the
week. I dont want to get caught with a bad entrance from weekend gaps.

2. I cancel the trade when it crosses the 240 line and I am not longer trading in the right
direction of the trend. Obviously there is some discretion there if you are looking for a bounce
off of the 240 line.

3. I am taking profit and no longer want to enter a trade until I get a new signal.

4. I already have enough trades going and dont want to enter anymore. In other words I want to
limit my risk. It is not unusual for me to have 20 pending trades set on 10-15 currency pairs but
when several are taken I cancel the others so I dont have too many trades going at once. For
example I had pending trades going on all the GBP pairs during the week but once I had 3 pairs
trading I canceled the others so as not to be too exposed with GBP trades.

QUALIFYING TRADE ENTRIES

Strongly trending PAIRS are currently respecting a TRENDLINE or TREND CHANNEL
- if you can't draw a clear trend, or the TL is broken, do not take the PAIR - retracements on this
pair are more likely to the begining of a range or trend reversal than a trend continuation

- Avoid trading pairs that aren't making HH and HL or LL and LHs - they are either ranging or in
the process of reversing, so swings in momentum and pullbacks (i.e. RSI pinned at 100 or 0) are likely start of a trend reversal not a continuation - in these circumstances NB10.4 rules are more likely to get you in on the wrong side of the move

- So pairs that aren't making HH/HL or LL/LH are good candidates for mjsw00's advanced counter trend trading, but worth avoiding for NB10.4 standard trades

- if markets are ranging instead of trending, TP at the next pivot level, rather than setting a
range of pendings at each next pivot level.

- you can wait for RSI(2) to come off the highs (lows) before setting the pending (although this
shouldn't matter)

- check the USD, EUR, GBP, JPY, CHF indexes (or majors) for signs of reversal or exhaustion - if
they change are seem to be changing, then 10.4 standard trades are much risker - maybe opportunity to trade counter trend instead as trend on cross will probably begin to reverse

- use price action confirmation on a lower timeframe (e.g 1HR or 30M), daily hi/lo or last week high/low to time a better entry once NB 10.4 conditions for entry are met

- Switch down to 1HR to time entries in direction of current trend (you can use
daily 200 sma, or 960 sma to see which side of the market you should be on)

- trendlines still matter - examine them and use them - avoid NB 10.4 trades when just breaking a
TL - this is an early heads up for a reversal of the trend, or transition to range

TAKE PROFITS AND TIMING

The markets move in rhythms and waves, and you'll often find your profitable trades hit a highwater mark around certain ties, before falling back.

NB says

I will take my profits 3-4 hours into the USA session.

For some of you guys that have not read my TP times. The best time to TP is 2-3 hours into the JPY
session 3-4 hours into the Euro and USD sessions. That is usually when price will peak before a
retrace. If you are sitting at a S/R point during those times that is when I take em.

Very Good...

[xrismak]

Nice review, Did I really say all that ?????????

HAPPY BIRTHDAY and MANY PROSPEROUS PIPS FILLED LIFE to YOU NANNINGBOB

YOU ARE A GIGANTILUS.


Warm Regards,

xrismak

[huhpapa]

Happy Birthday Bob

Nice review, Did I really say all that ?????????

HAPPY BIRTHDAY and MANY PROSPEROUS PIPS FILLED LIFE to YOU NANNINGBOB

YOU ARE A GIGANTILUS.


Warm Regards,

xrismak

[chye]

Nice review, Did I really say all that ?????????

Do you teach English in Nanning?
I think you must be a good teacher ,because you are a wonderful teacher in forex!

[Chris]

Happy birthday bob!