10.4 A Complete System

[Chris]

So where are you all entering at on the EUR/GBP WR1?

[bluedog23]

So where are you all entering at on the EUR/GBP WR1?

eur gbp m15.gif

I'm in with first position; others are noted as is TP. Stop is above first entry but off the chart.

[garyfritz]

So do we assume the JPY party is over for now? It's been flat to down ever since I dipped my toe in yesterday. I was hoping for enough upward movement to get some cushion in the position, with the idea of building a larger position to ride the large-scale JPY move. But that move seems to have stopped dead right where I got in. Just catching its breath before marching up again?

[nanningbob]

One of the topics, I am sure, will be the unintended consequences of central bank policy. I get what Japan, Europe, and the US want to try to achieve. But what uninvited and unwelcome guests will disrupt their efforts? We are in totally uncharted waters, with no historical precedent of QE on such a massive and global scale. And our political leaders, in Europe and elsewhere, pick this moment to screw around with the trust that depositors place in their banks? Is this really any way to run a railroad, barreling full speed down the track when there has been no slow-motion testing done? No stress tests on the bridges?

Just a thought.

[Staedtler]

So do we assume the JPY party is over for now? It's been flat to down ever since I dipped my toe in yesterday. I was hoping for enough upward movement to get some cushion in the position, with the idea of building a larger position to ride the large-scale JPY move. But that move seems to have stopped dead right where I got in. Just catching its breath before marching up again?

all the yen pairs RSI2 are at 0, looks like a classic 10.4

[nanningbob]

So do we assume the JPY party is over for now? It's been flat to down ever since I dipped my toe in yesterday. I was hoping for enough upward movement to get some cushion in the position, with the idea of building a larger position to ride the large-scale JPY move. But that move seems to have stopped dead right where I got in. Just catching its breath before marching up again?

all the yen pairs RSI2 are at 0, looks like a classic 10.4

Indis are now in play and normal movement is expected

[gms]

I like 10.4 very much. Stressfree trading on H4. Perfect if you cannot watch the charts all day.

However, I have a general problem with trade management, which keeps me from being consistently profitable.

When I started with 10.4 I used the BE method described by Bob in his booklet (move SL to BE as soon as 2nd level entered). Didn't work. I was always stopped out at BE.

Then in order to give my trades more space I changed to the "don't worry about your trades" approach that was also described by Bob: I set my pendings with SL at the 240 and walk away. In theory this should work out great: risking one trade, if things go wrong or winning multiple level trades, if things go right.

In reality this risk-reward calculation doesn't seem to work for me. Over the last 6 weeks my account has not seen much growth. I often loose two levels instead of one (see USDCHF example enclosed), and then I need multiple levels to make up the loss.

My entries are ok, but I need to change my trade management. Any advice appreciated ...

Gary

[Gertje]

This JPY move makes trading to be like taking candy from a baby....
Gotta love this!

[cjthomson]

I like 10.4 very much. Stressfree trading on H4. Perfect if you cannot watch the charts all day.

However, I have a general problem with trade management, which keeps me from being consistently profitable.

When I started with 10.4 I used the BE method described by Bob in his booklet (move SL to BE as soon as 2nd level entered). Didn't work. I was always stopped out at BE.

Then in order to give my trades more space I changed to the "don't worry about your trades" approach that was also described by Bob: I set my pendings with SL at the 240 and walk away. In theory this should work out great: risking one trade, if things go wrong or winning multiple level trades, if things go right.

In reality this risk-reward calculation doesn't seem to work for me. Over the last 6 weeks my account has not seen much growth. I often loose two levels instead of one (see USDCHF example enclosed), and then I need multiple levels to make up the loss.

My entries are ok, but I need to change my trade management. Any advice appreciated ...

Gary

Gary, I'm having the exact same issue as you and I've not been able to figure it out yet. What I am going to try out now is to take multiple level trades (+- 5) between levels (eg. Piv to Mid Piv) since price always seems to at least get to triggering the 2nd trade using what I understand to be the traditional approach but then as you say it often turns and gets one out at BE as best case, in many cases I don't get back to the charts quick enough after the 2nd trade has entered by which time price has retraced and then i see loss for trade 1 and 2. Either that or my trade selection is appalling (very possible).

Just trading one entry between Piv and Mid Piv or S/R means I need to win at least 70% of my trades to make up for 1 SL.

On JPY Wed last week when everyone was creaming all those pips I chose to steer clear of the JPY pairs because I'm not up to speed with the fundamental aspects and sticking orders in, for me, would have been akin to trading based on 'tips' from this thread. I'm trying to take trades based on my own application of 10.4. JPY Wed resulted in 3% loss for me - WTF I hear you say. I really don't know!!

I'll let you know how I go with the scaling. As usual, anyone willing to offer some credible advice - it'll be greatly appreciated.

[nanningbob]

I like 10.4 very much. Stressfree trading on H4. Perfect if you cannot watch the charts all day.

However, I have a general problem with trade management, which keeps me from being consistently profitable.

When I started with 10.4 I used the BE method described by Bob in his booklet (move SL to BE as soon as 2nd level entered). Didn't work. I was always stopped out at BE.

Then in order to give my trades more space I changed to the "don't worry about your trades" approach that was also described by Bob: I set my pendings with SL at the 240 and walk away. In theory this should work out great: risking one trade, if things go wrong or winning multiple level trades, if things go right.

In reality this risk-reward calculation doesn't seem to work for me. Over the last 6 weeks my account has not seen much growth. I often loose two levels instead of one (see USDCHF example enclosed), and then I need multiple levels to make up the loss.

My entries are ok, but I need to change my trade management. Any advice appreciated ...

Gary

OK I want to analyze for you what you missed.

2 RULES
1. Never let a winner turn into a loser.
2. TAKE YOUR PROFIT

I set up your trades below
#1 PRICE above 240 line-check, RSI 2 or STO5 Bottomed out-check Set pending to cross WP line-Check Price moves over 40 pips in your favor to the next line. CHECK. What do you do?

2 RULES
1. Never let a winner turn into a loser.
2. TAKE YOUR PROFIT

Price moves back down to and a new signal is given.
We trade possible #2 bounce off of MS1 and the 240 line - check RSI 2 or STO 5 bottomed out-Check We also put pending at the cross of the WP-Check #3
Price moves over 80 pips up. CHECK What do we do?

2 RULES
1. Never let a winner turn into a loser.
2. TAKE YOUR PROFIT

What are your results 2 losing trades. What should you have had? Two winning trades of 35-45 pips and one possible if you were aggressive of 70-80 pips. Total you could have had 70+35+35 or 140 or at the very least 35+35 or 70 pips. You took a loss instead. What should you do?


2 RULES
1. Never let a winner turn into a loser.
2. TAKE YOUR PROFIT

10 more trades like that and you are in the 500-1000 pip a week club. That is the difference. You want to trade like me and get lots of pips and profit. Do this?


2 RULES
1. Never let a winner turn into a loser.
2. TAKE YOUR PROFIT

So far today the euro open for 3 hours of trading. 7 winners no losers and 2.5% increase of my account and 323 pips in the bank. Average profit per trade 46 pips. See figures above. I have about a 2% DD from my aud and euro trades. What do I do?

2 RULES
1. Never let a winner turn into a loser.
2. TAKE YOUR PROFIT

You had profit and didnt bank them.