10.6 EDSEL

[nanningbob]

Well, my trading for last two weeks has been up 14% of my account. This week not very nice compared to previous, how was yours?

The next big trick to trading is not only winning but keeping those winnings. That is the hardest thing to do. The biggest problem I had in trading was not having winning trades. It was keeping the money in the bank. I had a tendency to get on a roll and then increase my lot sizes to win more and giving it all back quicker. This may sound crazy but this year when I had some really good weeks or days. I would then downsize my lot size so I wouldnt lose them so fast. Found out I hung onto them better. Just a thought.

[trucomallica]

Hey Bob. Little question. In some signals I got price was already above (or below) the trigger levels, so I just went with market orders. Do you recommend this or do you prefer to go with the pending orders?
I'm surprised by this system. I got 5% from thursday to friday on demo, and I read the rules once or twice. You're making me to forget about stocks and go back to FX LOL.

[nanningbob]

Hey Bob. Little question. In some signals I got price was already above (or below) the trigger levels, so I just went with market orders. Do you recommend this or do you prefer to go with the pending orders?
I'm surprised by this system. I got 5% from thursday to friday on demo, and I read the rules once or twice. You're making me to forget about stocks and go back to FX LOL.

Basically the system is a signal system. It is letting you know a possible trade setup is coming or has arrived. Now how you enter the trade is really up to you. I give some suggestions like the DP and the xxx.00 and xxx.050 lines but there are occasions they may not be the best entrance points. You may feel a news story or fundamental has come into play and you want to enter immediately. So you may use a market order.

I have said this many many times but strong fundamentals (not neccessarily news stories) are superior to any indicator. Indicators can tell you a fundamental is in play and it records that the fundamental is moving price action but in no way do they predict a fundamental is about to happen.

For example the JPY bond sales. That is a strong fundamental that has been in play for a year now and is scheduled to run for another year. All the big boys know about it and they are playing it. When a trader posted the COT report on the last page you could see the big boys were going big into JPY sells this month. You could also see the little boys were about to get creamed. The action started Friday and I got some of it, not because of 10.xxx but because of the fundamental move was about to happen. Now 10.6 Edsel will begin showing this move for the month and many of us will profit but I am already in on it.

I also know another fundamental coming into play. NZD central bank announced a couple weeks ago they would consider raising interest rates early next year. Well you can believe the big boys are entering their buy NZD trades pieces at a time and the NZD will start to strengthen. I also am going to play the NZD to start to strengthen and will start entering buys at what I hope to be good spots. Eventually 10.6 Edsel will also show this to be happening.

You put these two fundamentals together and watch the nzd/jpy fly up. 10.6 has already shown that the UT is now in play so look to enter buys at the right spots. I closed all my nzd/jpy sells at the beginning of the month because I knew they were in big trouble. Now I am on the profitable side of the run again and the swap costs are also on my side. This also could show up on the gbp/nzd since it is ready to break the 240 into a DT but I started selling it when it broke the 60 line.

So I like to mix fundamentals with my trading and 10.6 helps me if I am wrong and rewards me greatly when I am right. It helps me with the timing of entering a trade. So the bottom line and answer to your question is: YES. If you have a reason to enter right away and it is a solid trading reason: YES. I do it all the time but I cant complicate this thread too much. Also sometimes I am wrong and enter into a fundamental too early.

My future prediction but you have to wait until the news plays out is the EURO is due for a dive again. This time it will be France making the news. However, that may take a while since bad loans and when they affect banks can be covered up for quiet some time. China is also grappling with this issue but they arent as open to scrutiny like Western banks and institutions are.

[art]

hi bob just a quick one, on trade re entering a trade, if the trade reverses on you do you go back in off the 4 hour chart or the 1 hour, assuming of course the trade is on the right side of the 240, and you just use the stochastic?

[Pipstubborn]

Hi Bob, at the end of page 65 of the Pre-Post Edsel comments edited by JFonseca you mention that there is an specific sign to look for to know when a run is over but haven't find it yet. Did I miss it or you haven't comment about? Thanks in advance.

Here's the quote.

The aud/usd now shows a standard a possible 10.4 trade and I will look to see if it makes a double bottom or goes into a 1,2,3 swing trade reversal. I will enter another sell at the STO7 signal. It also could continue into the trend since the move has not made the end of trend run mark yet. I will be posting on my 10.6 thread how you can know a run is over. There is a specific sign to look for.

[nanningbob]

Hi Bob, at the end of page 65 of the Pre-Post Edsel comments edited by JFonseca you mention that there is an specific sign to look for to know when a run is over but haven't find it yet. Did I miss it or you haven't comment about? Thanks in advance.

Here's the quote.

The aud/usd now shows a standard a possible 10.4 trade and I will look to see if it makes a double bottom or goes into a 1,2,3 swing trade reversal. I will enter another sell at the STO7 signal. It also could continue into the trend since the move has not made the end of trend run mark yet. I will be posting on my 10.6 thread how you can know a run is over. There is a specific sign to look for.

You know a run is done when price hits the 60MA again. It will range or reverse at this point. If it ranges it could go back into its trend or reverse. At this point you will see these different reversal or price continuation forms.

[nanningbob]

hi bob just a quick one, on trade re entering a trade, if the trade reverses on you do you go back in off the 4 hour chart or the 1 hour, assuming of course the trade is on the right side of the 240, and you just use the stochastic?

That depends. You can take various signals and reenter off of it. Whether its crossing the next days or next weejs DP, WP or some other marker like crossing a MA. You are looking for another signal that tells you to get in.

[art]

thanks for that bob couldnt you just use the stoch?

[SteveHopwood]

My results last week - not as good as the previous but still pretty good.

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My results still average 40+ pips a day (I did not trade on NFP Friday). They would also have looked a lot better but for an AUDCHF trade that was closed because of a bloop in the EA I was using to manage the trade and that I described in my helper ea thread. This trade would eventually have recovered to hit tp and made the week even brighter still.

Not to worry. So far in 9 live trading days using 10.6 trend trading only on a handful of charts, I am +575 pips and just over 3% if starting balance up - live, actual money trading guys.

One more week trading as I have done so far then I knock off for the break. I will start to expand my charts in the New Year, perhaps. For now, I am happy with the number of charts I am running - I can keep track of where I am in my head. Expanding the number of charts I am watching might not be a good idea - KISS might be best for me. We shall see.

[trucomallica]

Thanks for your answer Bob. I did not take notice of the fundamental news you mentioned, and NZDJPY gapped up and keeps going. I'm not sure if somewhere in the forum there are threads for the fundamentals of each currency.