10.4 A Complete System

[cjthomson]

If i was going to trade this, then i would enter below previous low at .2957 (approx) and ride it down to Weekly Sup1...This would be 75pips.....That way you have got past the low....you have given the market 24 pips as payment for showing you it's intentions, but you have a better chance of 75pips...

Wiggy

Hi Wiggy, thanks for your explanations and logic, I am finding posts like this really useful.

One question (ref quote above re EURUSD), where would you place your stop for a trade like this and how would you manage your SL. Would you aim to get yourself into a b/e trade at any stage during of this trade and when would you do this?

In an attempt to answer my own question: I presume a good place to put a SL would be above the last high (A), as a break up through this level would potentially signal a break in the downward cycle that price has been showing, however, by doing this it would put the R:R for this trade unfavourable with over 100 pips risk vs only the 75 reward. Alternatively one could wait until price makes another cycle on its way down and you place the SL above that new high (B) which may be better in terms of R:R?

Thanks again, Chris

See updated image in next post.

[cjthomson]

If i was going to trade this, then i would enter below previous low at .2957 (approx) and ride it down to Weekly Sup1...This would be 75pips.....That way you have got past the low....you have given the market 24 pips as payment for showing you it's intentions, but you have a better chance of 75pips...

Wiggy

Hi Wiggy, thanks for your explanations and logic, I am finding posts like this really useful.

One question (ref quote above re EURUSD), where would you place your stop for a trade like this and how would you manage your SL. Would you aim to get yourself into a b/e trade at any stage during of this trade and when would you do this?

In an attempt to answer my own question: I presume a good place to put a SL would be above the last high (A), as a break up through this level would potentially signal a break in the downward cycle that price has been showing, however, by doing this it would put the R:R for this trade unfavourable with over 100 pips risk vs only the 75 reward. Alternatively one could wait until price makes another cycle on its way down and you place the SL above that new high (B) which may be better in terms of R:R?

Thanks again, Chris

Sorry, forgot to add comments in the picture.

[Wiggy1965]

If i was going to trade this, then i would enter below previous low at .2957 (approx) and ride it down to Weekly Sup1...This would be 75pips.....That way you have got past the low....you have given the market 24 pips as payment for showing you it's intentions, but you have a better chance of 75pips...

Wiggy

Hi Wiggy, thanks for your explanations and logic, I am finding posts like this really useful.

One question (ref quote above re EURUSD), where would you place your stop for a trade like this and how would you manage your SL. Would you aim to get yourself into a b/e trade at any stage during of this trade and when would you do this?

In an attempt to answer my own question: I presume a good place to put a SL would be above the last high (A), as a break up through this level would potentially signal a break in the downward cycle that price has been showing, however, by doing this it would put the R:R for this trade unfavourable with over 100 pips risk vs only the 75 reward. Alternatively one could wait until price makes another cycle on its way down and you place the SL above that new high (B) which may be better in terms of R:R?

Thanks again, Chris

Sorry, forgot to add comments in the picture.

If we take the 10.4 rules as i understand them, you would enter short at the mid pivot around the .2995 mark, then your stop loss is at the MA 300 pips away.....That is ok, 10.4 is meant to have alot of room....

Your first target is Weekly Sup1 (100pips) at which point, you can do one of a couple of things....take profit...or...add another short position and move you initial trades stop loss to break even or BE plus 10 or 50....or....take a combination or both.....There is a indicator that can work out the BE point between you two trades....

Bob likes (from what i understand) to add to trades....you let the trades run and if are not breaking your risk/equity rules add to them where possible....but the key with 10.4 and 4 hour trading is patience.....if you identify the correct trade and allow the trade time, it will make you a lot of pips....

When you are in a profitable, people have been using the change of color of the AO indicator to exit trades...I have only done this one or twice as most trades either hit TP or SL....

I waffled a bit, but i think i answered your question....

Wiggy

[gms]

This AUDCAD schoolbook trade worked out nicely with three levels after it bounced off the 240

Gary

[Wiggy1965]

when we set our entry.. are we worried about previous highs/lows from the end of last week ? or are we only concerned for this week

From my experience (this maybe a question better answered by more experienced traders, like Bob, Steve or the Captain) the further away they are the less relevant they are, however some no matter how far away are more relevant....e.g. the parity level for the AUDUSD and or significant round numbers...

Wiggy

[mjws00]

This AUDCAD schoolbook trade worked out nicely with three levels after it bounced off the 240

Gary

Pure and unadulterated beauty, Gary. Thanks for showing it.

[Wiggy1965]

This AUDCAD schoolbook trade worked out nicely with three levels after it bounced off the 240

Gary

I have just entered the AUDUSD short, this could be the same as the AUDCAD, but in the opposite direction....

Lets see how it pans out....

Wiggy

[Wiggy1965]

This AUDCAD schoolbook trade worked out nicely with three levels after it bounced off the 240

Gary

I have just entered the AUDUSD short, this could be the same as the AUDCAD, but in the opposite direction....

Lets see how it pans out....

Wiggy

hasn't tagged my entry yet. good luck, see you on the ground floor !

Yeah, this was one where i could not see a reason to wait for the mid pivot.....It was only a couple of pips.....so i set my entry just below previous low....

Wiggy

[Gertje]

hasn't even came close to the WP

it's below the 240, so i didn't go long

I took R1, MR1 and am now running free for WP and TP @ MS1

Where is your stop...?

My stop WAS at 1.537 until the 2nd trade entered. Then I adjusted the BE to BE -100pips for 1.525
If I hadn't done so, I would be stopped out at BE. Now little over 1% floating profit.

[Gertje]

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