10.4 A Complete System

[aSushiRoll]

USA ends QE and gold goes back under a 1000, I think. Gold proponents will have to go hide until the next recession and we get to hear all their stuff again. Go paper money. YEAH.

Hmmm could you explain what would make it go lower? I'm always up for learning more

The way I thought it would work is if the FED ends QE, people would pull their money out of stocks and into "safe" assets.. like gold. Since stocks have mostly been going up, and the economy "seems" to be doing good because of QE.

Or would the ending of QE mean we could face deflation and so that's why gold will go lower? Even then I remember FED saying (well they say a lot of things so what do you want to beleive) they never want deflation and would try to get a bit of inflation. Ugh.

[cmeade2]

Bob

I have a hard time imagining you in Florida. Very different than China!

Anyway I will fell slightly bonded because we will be in the same time zone.

Have lots of fun!

cmeade2

Well Steve must be doing something right FF is down again. Servers crashed. Catching a plane in an hour and heading for Orlando. Will be in Orlando for 4 weeks if anyone wants to get together for lunch let me know and we can plan something. We are thinking of spending a couple of days in St. Augustine, Gainesville, and Melbourne to see family and friends. So anyone in those areas be happy to visit. Las Vegas for a couple of hours at the airport today and then on we go. I have the laptop set up for trading. It would handle the CSS for some reason. It seems these multi-core computers have more trouble with CSS than the old single core I have at school. So I developed a simple 10.4 system that doesnt use CSS and will play around with it for a couple of days and see how it does. Anyway Orlando here we come, ready or not.

[tibochina]

Well Steve must be doing something right FF is down again. Servers crashed. Catching a plane in an hour and heading for Orlando. Will be in Orlando for 4 weeks if anyone wants to get together for lunch let me know and we can plan something. We are thinking of spending a couple of days in St. Augustine, Gainesville, and Melbourne to see family and friends. So anyone in those areas be happy to visit. Las Vegas for a couple of hours at the airport today and then on we go. I have the laptop set up for trading. It would handle the CSS for some reason. It seems these multi-core computers have more trouble with CSS than the old single core I have at school. So I developed a simple 10.4 system that doesnt use CSS and will play around with it for a couple of days and see how it does. Anyway Orlando here we come, ready or not.

Hey Bob, I live just outside Tampa and would love to buy you lunch while you are in Florida. I too will be leaving for vacation in the morning in Toronto but would like to make some arrangements with you after July 7th. Your system has been a wonderful breakthrough for me in trading and I would love to thank you. I will post something after returning and see if you are available. regards

[sponn]

I was hit by mu stupidity. To much jpy shorts and...
Trades Total: 74
Trades Won: 12
Trades Lost: 62
Trades Even: 0
Max Profit: 145 pips
Max Loss: -225
Avg Profit: 60
Avg Loss: -90
Pips (-4883.7)


THe worse thing is that if I have closed g/jpy and e/jpy around WS I would make over 10% this week. Lesson learned (I hope).

[TraderDesk]

I was hit by mu stupidity. To much jpy shorts and...

THe worse thing is that if I have closed g/jpy and e/jpy around WS I would make over 10% this week. Lesson learned (I hope).

I like to close trades if I see price movement stalling especially if I have multiple positions open on one currency. GBP/JPY and EUR/JPY have a tendency to snap back over a 100 pips within a few hours so I am always on the watch for this. I like to place BE+ once they are in decent profit just in case the above scenario happens.

Looking at the 10.4 daily CSS and H4 chart of GBP/JPY I can see a potential sell forming according to 10.4 guidelines. It is Friday so I like to watch any profit taking action effects on the currency pair.

A potential trade setup can look like this: Sell now (market order) 150.9 looking for a low of 149.0-30. A second sell limit at 151.60-90 in case trend is bias to the upside for today. If this order is reach wait for price movement to go back below 150.9 before closing out both positions to average out a profit especially if price stalls at this level.

If price movement goes above 152.2 level I would close the original market order and even the sell limit depending on leverage use.

That is how I would trade this if using 10.4...

[kwanann]

Thats the risk you are bearing when you are heavy on one currency. While it might work out well when they go your way. If they decide to reverse, you will be in pretty bad shape.

Used to shotgun and hit all the trades, but now decided to play non-correlated pairs, or at most 2 of the same currencies in the same position, e.g sell EU, sell GU.

Nothing more than that is allowed, and if i were to find myself in such a position, i will close positions to get back to 2

Same like TraderDesk, i like to breakeven (BE) my trades, just because they are going your way doesnt mean they WONT turn against you, BE ensures a free trade. While you wont have much profit, there is no way this trade will end up as a loss

[aSushiRoll]

When do Yoe be your trades? When how many pips + and how far away do you set your SL or really at be?

[TraderDesk]

When do Yoe be your trades? When how many pips + and how far away do you set your SL or really at be?

That depends on so many variables including your risk management policy, currency pair, volatility, time of day, trader's intuition etc... I cannot tell you as my SL's are different for each individual trade.

My advice though is to trade with capital preservation as a strong guideline. SL whether fix or floating should be the line where you say "enough" and not feel too much pain with your capital.

I am sure others here can suggest other ways.

[camelx0]

sponn, I have also been caught in too many of the same currency this week so learned my lesson as well. Just pushed the AUD shorts too far...

As for the SL and break-even discussion, I have been looking at that as well since I'm happy with entries but not with exits. Bob's approach I think is to BE when the trade reaches the next line - that's also where the next pending is waiting.

I like a trailing stop to deal with exits. The ATR indi has always been a favourite but if too tight will stop you out quickly. It works well in a trend. An even more improved version is the Chandelier Exit, which is based on the ATR (http://stockcharts.com/school/doku.php? ... elier_exit) The indi can be found here: http://forex-indicators.net/volatility- ... elier-exit
Here is a look:

[nanningbob]

I have made a big mistake, I got it all wrong. I need to watch the weather reports before I trade.

Chicago PMI Plummets By Most In Over 4 Years; Weather Blamed