10.4 A Complete System

[Pedigree]

In the last 3 months, since the beginning of March. I have had 401 losing trades. Of those 401 trades 28 were losers of 1% of my account or more, only 8 were 2% or more and 2 were 3%. Why I let those 2 run that big is a dumb decision. In other words I close out trades long before they get to that 1% mark. In fact 5 of those 8 were gbp/chf. I HATE THE SNB/CHF.

I tried teaching these things in the original book. Not letting trades go past that 1 or 2% losing mark. Hitting 10% DD and dealing with some of your losers is a very good policy. In fact dealing with some at 5% is what I have been doing and that has kept my DD in check.

I just checked, since March I have had -22,857 pips in losses. Egads what a horrible number. I have had 35,872 in winners for a grand total of 13,015 over 12 weeks for an average of 1084 pips a week. Believe me I have never had a run like that before. My account has increased 167% from my original amount that I used in March. What I am hoping is the CSS info will decrease the losing trades to give me greater increases in my account and less DD. So far the last 2 weeks that has proven to be true.

Some stats there Bob! How do you put them together...and for the past 3 months too? Cowboy IBFX analyzer doesn't give percentages. Do you hard-crunch the numbers manually or do you have some processor that does it all for you?

Also, when a trade of yours is losing, do you just let it run singly or (when chart CSS indicates) do you add on new pending trades that get tripped and so add to the loss?

[nanningbob]

Here is my simplest template for 10.4. Shows how to use the 4H with the 1H and get multiple trades and to trade from line to line like I do. I have to run but I wanted to give you a chance to look at it. Template, indies, profiles, and indies inside along with some pics of explanation.

[Zennor]

Once again I'd like to thank Bob and all those members who have contributed to this excellent system.

This week I took a total of just 8 trades, all 8 closed in profit. I am being very selective about my trades and have missed or rather chose not to trade many setups that I noticed. This is purely whilst I get to grips with the system and as my confidence grows with my trading experience I am sure that my volume of trades will increase accordingly.

I took two 240 MA bounce trades on the CAD/CHF despite the INFO page information. With good reason, small risk due to the proximity of the 240 MA and I felt that the price stood a good chance of retracing to a strong S/R line just above the WS1 which it did and was where I set my TP's.

The other trades were taken after careful consideration to the INFO page. This indicator has many nuisances and I firmly believe is an invaluable source of information prior to taking any trade. I have and am spending hours looking at the information in the INFO page and then cross referencing what I am seeing on the 4H and Daily charts. I am constantly getting Ah-Ha moments and seeing many possibilities, for example when a currency has been the top on the INFO page and heads towards the zero line it crosses it's first currency which is going up and then hits the second currency pair which is rising. When the angle of the drop remains the same as it crosses the two currencies I have noticed an excellent trade opportunity and not only that it can as it did this week aid you in your decision making when trading 10.4.

Let me explain. CAD.. Was the highest and then dropped, went through the USA and then hit EUR at the same angle a day or two later. Now look at the EUR/CAD chart 20 May, 20:00 Hours. Just had a nice pin/top off the 240 MA, couple of red candles. Notice the position of the 240 MA. So you are asking yourself is this an excellent selling opportunity as it bounces beneath the 240 MA and the CSS lines begin to contract, the RSI is through the roof and looking ripe for a tasty sell trade. Hopefully if nothing else the INFO page would have steered you well away from any thoughts of shorting this pair. I will be closely monitoring the CAD/CHF and CAD/JPY this week for similar crossovers.

Whilst this is not strictly 10.4 trading it is something that could aid in 10.4 trading and something I am finding extremely useful.

[Gertje]

Just went through my last weeks trades and loaded the CSS on the charts to have a look. Found out that I could have saved me a lot of DD by using this CSS to decide wether to enter or not.

Because the 'official' template causes my Empty4 to freeze, I now changed the CSS to only display 10 bars. Removed the stochastic on the H1. Hopefully this will keep the Empty4 running so I can make use of the CSS on the charts as well as on the info-page.

It's awesome to look at the CSS on the info-page and 'know' price will go your way soon.
.

[Haggadah]

Once you are no longer afraid to close out a loser or you will ride a losing trade because you know it will be a winner then you can just trade away. Even though my cad/jpy trades are running 2-300 in the negative today. I know I just got to get them safely to the beginning of the month and I will get those back to profit or close them with some winners.

Thank you NB. I have been following your threads for a couple of years now, starting at forex factory. I am now seing the light after the tunnel. If I compare myself to a driver, I can safely say that I now can successfully drive on a highway without crashing.

Borrowing your approach and other contributors in this forum, I came up with a kind of trading that fits my own personality. I hit giving up losses, and there were times that I let my dd run for several months until it reverses even adding trades on the process. With 20+ positions at a given time, with .01 lot (sometimes increasing to .03 ), often I am able to recover my dd with some profits. I don't worry anymore about dd as long as my overall dd will not exceed 10% of my capital, otherwise I am happy chopping my daily projected profit of .0055% of my capital. If it did exceeded, it is time to close some losing positions to protect my capital, and let it run until I am safe again for my daily profit. A demo I opened back in January, I can say that I can double my account in five months. Here is my myfxbook link:

https://www.myfxbook.com/portfolio/104/499128

My only worry though is about the cost of maintaining long time positions including swap charges that may eat most of my gains. Opening an account with leverage of 1:20 or even lower for long time positions will lower cost of trading. Any advice?

Cheers,

Haggadah

The 10% is a good rule, in fact a great rule. The one thing you can do is learn to use some of your profits to just take out those losing trades especially the long term ones. If some trade has been negative for a couple of weeks it needs to go. For example when I hit June if I still have any negative trades left from May I will either decide I am back into the right direction or they have to go. Last week I averaged 600 pips a day. Well to take 2-300 a day and clean out some bad trades is not that hard to do. For me that 240 line is final line. Once price goes below that I look to start clearing stuff out. Yes I will play the bounce off of the 240 line, which sometimes means price will dip below, but I am not going to let price run on the other side of that line and stay in there.

Another key is percent of account of a trade. Once a trade reaches near that 1% of account lose range I make a clear decision of do I have a good reason to stay in this trade. For example CSS is flat and looking to turn up or has crossed up. Is it still angling down. The most important question is what fundamental is driving this move. We know with aud nzd, Chinese economy has slowed down so no need to be hanging onto any buys.

In the last 3 months, since the beginning of March. I have had 401 losing trades. Of those 401 trades 28 were losers of 1% of my account or more, only 8 were 2% or more and 2 were 3%. Why I let those 2 run that big is a dumb decision. In other words I close out trades long before they get to that 1% mark. In fact 5 of those 8 were gbp/chf. I HATE THE SNB/CHF.

I tried teaching these things in the original book. Not letting trades go past that 1 or 2% losing mark. Hitting 10% DD and dealing with some of your losers is a very good policy. In fact dealing with some at 5% is what I have been doing and that has kept my DD in check.

I just checked, since March I have had -22,857 pips in losses. Egads what a horrible number. I have had 35,872 in winners for a grand total of 13,015 over 12 weeks for an average of 1084 pips a week. Believe me I have never had a run like that before. My account has increased 167% from my original amount that I used in March. What I am hoping is the CSS info will decrease the losing trades to give me greater increases in my account and less DD. So far the last 2 weeks that has proven to be true.

NB,

Thanks again, those numbers are very encouraging. I like the way you use the CSS - very informative. Additionally, though I refrain opening account with high leverage, borrowing broker's money which command innermost fees/interest that hurt profits.

God Bless you.

Haggadah

[cjthomson]

BUMMER, BUMMER and more BUMMER. I got one for ya, Went to work thinking my G/J trades would be safe. Set my stop at 151.80. Come back home and find out the price went to 151.793. Got back in long but really missed out. BUMMER. Thats Trading.


Jim

I also got cleaned out by GBPJPY although I think you got snarled by that fox!! Bad luck.

[Pedigree]

It's awesome to look at the CSS on the info-page and 'know' price will go your way soon.
.

So true! Perhaps even more so is how it tells you the trades that are a definite no no for the moment. It's like a crystal ball you look into to see the future of forex! Awesome indeed!

[zentauro67]

Here is my simplest template for 10.4. Shows how to use the 4H with the 1H and get multiple trades and to trade from line to line like I do. I have to run but I wanted to give you a chance to look at it. Template, indies, profiles, and indies inside along with some pics of explanation.

Very clean template!

Are you using 240 visible in 1H or is a bug and should show only 960?

Who knows, we could try both 960 and 240 LWMAs in 1H!

I´m not a big fan of moving averages, but in some pairs (EURUSD, GBPUSD) I add a 62 EMA in 1H. charts. When price has a harmonic swinging behaviour, 62 EMA (1H) is awsome. ("Trade what you see" thread in FF)

btw,

240 x 4 = 960

240 : 4 = 60

Just for love to symmetry, I´ll try this week a 60 LWMA in my 1H 10.5 trades.

[nanningbob]

Here is my simplest template for 10.4. Shows how to use the 4H with the 1H and get multiple trades and to trade from line to line like I do. I have to run but I wanted to give you a chance to look at it. Template, indies, profiles, and indies inside along with some pics of explanation.

Very clean template!

Are you using 240 visible in 1H or is a bug and should show only 960?

Who knows, we could try both 960 and 240 LWMAs in 1H!

I´m not a big fan of moving averages, but in some pairs (EURUSD, GBPUSD) I add a 62 EMA in 1H. charts. When price has a harmonic swinging behaviour, 62 EMA (1H) is awsome. ("Trade what you see" thread in FF)

btw,

240 x 4 = 960

240 : 4 = 60

Just for love to symmetry, I´ll try this week a 60 LWMA in my 1H 10.5 trades.

240 on the 1H I want to look at it for a while. Maybe close out trades earlier that are losers with it. I just want to watch it and see what happens.

I just want to simplify the system. If can use the 4H just for trade signals and not trade there and get others to wait for the signal on the 4H and then go trade the 1H, maybe they will understand the system better. 240 line WP and S1 and R1. Keep it simple. Only do your trades in that range and you can be successful. If price goes out side that range you better have a good reason to trade out there.

Then some guys are having trouble with multiple level trades. Well the 1H makes it much clearer and easier to see. You arent trying to do two things on one chart. So 4H gets you your signal to buy or sell. 1H gives you entrances and exits. You can see those two lines narrowing and price action stalling so get out of the trade that isnt going anywhere and take that really small loss.

There is a lot of info on those screens and if I can simplify it to its bare basics more guys can become successful. Anyway once I it seems to be going smoothly it will go on page 1. This is my first use of CSS as a clear cut exit strategy.

[nanningbob]

Once again I'd like to thank Bob and all those members who have contributed to this excellent system.

This week I took a total of just 8 trades, all 8 closed in profit. I am being very selective about my trades and have missed or rather chose not to trade many setups that I noticed. This is purely whilst I get to grips with the system and as my confidence grows with my trading experience I am sure that my volume of trades will increase accordingly.

I took two 240 MA bounce trades on the CAD/CHF despite the INFO page information. With good reason, small risk due to the proximity of the 240 MA and I felt that the price stood a good chance of retracing to a strong S/R line just above the WS1 which it did and was where I set my TP's.

The other trades were taken after careful consideration to the INFO page. This indicator has many nuisances and I firmly believe is an invaluable source of information prior to taking any trade. I have and am spending hours looking at the information in the INFO page and then cross referencing what I am seeing on the 4H and Daily charts. I am constantly getting Ah-Ha moments and seeing many possibilities, for example when a currency has been the top on the INFO page and heads towards the zero line it crosses it's first currency which is going up and then hits the second currency pair which is rising. When the angle of the drop remains the same as it crosses the two currencies I have noticed an excellent trade opportunity and not only that it can as it did this week aid you in your decision making when trading 10.4.

Let me explain. CAD.. Was the highest and then dropped, went through the USA and then hit EUR at the same angle a day or two later. Now look at the EUR/CAD chart 20 May, 20:00 Hours. Just had a nice pin/top off the 240 MA, couple of red candles. Notice the position of the 240 MA. So you are asking yourself is this an excellent selling opportunity as it bounces beneath the 240 MA and the CSS lines begin to contract, the RSI is through the roof and looking ripe for a tasty sell trade. Hopefully if nothing else the INFO page would have steered you well away from any thoughts of shorting this pair. I will be closely monitoring the CAD/CHF and CAD/JPY this week for similar crossovers.

Whilst this is not strictly 10.4 trading it is something that could aid in 10.4 trading and something I am finding extremely useful.

Excellent thanks for the insights. I like hearing how people adapt 10.4 into their existing knowledge. It helps a great deal for others to see how adaptation can work.