10.4 A Complete System

[cmeade2]

Bob

There is no doubt about it that you have definitely found your groove here with the STO, RN, and CSS. And I would totally agree that there is a lot to mine with these indi's.

My only comment is that things are a lot less straightforward than your previous versions which tended to have some very straightforward rules (e.g., RSI(2) for TMA pinned high or low).

That's not a criticism. It just gets back to my previous comment that I am working hard to get up to your level on this framework.

Thanks again

cmeade2

Bob

I must admit that I am having a hard time "getting it" on 10.6. Clearly, though, it is working for you.

Is there any way you could write down a simple set of rules that describes how you approach your trades?

Thanks

cmeade2

Just past 2% for the week. Going to bed now night.

1. Check your CSS info page. GBP is on top. So I go look.

gbp/aud........... not much there
gbp/cad ............... not much there
gbp/chf ....... big move last week ranging this week so far.
gbp/jpy ........... small stuff so far this week but picked up a trade there.
gbp/nzd ............ nice 100 pip move after crossing the DP and signal from STO7 crossing 20 and 40 lines
gbp/usd ........... small move didnt take it

So gbp/nzd and gbp/jpy picked up some pips.

Bottom NZD and CAD looked for NZD trades.

AUD/NZD big move but didnt trade it 100+ The rest were duds.

USD strength moving up on CSS.
I did well on usd/jpy and one trade crossing the WP on the CAD.
the rest was not in. eur/usd was a good move though.

2. It is JPY fundamental time again. First two weeks of every month. Been preaching this all year. About 40% if my earnings this year have been playing this big fundamental MACRO move. It is a 2 year program and I play it every month. Been quiet for the summer but it is back again.

aud/jpy buy
usd/jpy buy
eur/jpy buy
chf/jpy buy
cad/jpy buy

made something on all of those.

So that is where I looked and when STO 7 crossed up or down and gave a signal I set my pending trade at WP DP or a blue line.
3. Sometimes just make a play
I also have done very well on the aud/chf see pic below a very good 10.6 trade. I played the aud/chf to break the 240 line and it did big time. When JPY is weakening AUD and later NZD will strengthen. The majority of a move is when it is above 80 or less than 20 so I tried it and it went. I picked up the trade when it crossed the xxx.00 blue line. This was after the DP WP and 240 line.

So now I am up 540 pips for the week so far. All the JPY crosses I am up 60-100 pips except chf/jpy.
Throw in that gbp/nzd and aud/chf trades and I get my 500+ pips.

[echoman]

thanks for all your insight bob, much appreciated, i'm off to spain for a few days on thursday, back next tuesday, and i want to start some seriouss trading, 10.6 is looking good, cpu usgage is well down, now we have the new stoch ,hopefully the market has come out of its summer doldrums by then

One of my favorite songs of all time:

"Never Been To Spain"
by '3 Dog Night'

Well, I've never been to Spain
But I kinda like the music
Say the ladies are insane there
And they sure know how to use it

They don't abuse it


They still tour every year. I saw them a few years ago.
Never gonna lose it
I can't refuse it

Well, I've never been to England
But I kinda like the Beatles
Well, I headed for Las Vegas
Only made it out to Needles

They don't abuse it
Never gonna lose it
I can't refuse it

Wonder what ever happened to those guys??

http://www.youtube.com/watch?v=dm6qw_yeo6o

Hey Aussies, this is how they got their name:

Danny Hutton's then-girlfriend June Fairchild suggested the name after reading a magazine article about indigenous Australians, in which it was explained that on cold nights they would customarily sleep in a hole in the ground whilst embracing a dingo, a native species of wild dog. On colder nights they would sleep with two dogs and if the night were freezing, it was a "three dog night"

They still tour every year. I saw them a few years ago.

[nanningbob]

Hi there, i´m new as you can tell, just read everything i could about allmighty NB, following version 1.6 for a few days in demo and would appreciate that as well...

Something i was wondering is how you tell now when is a good time to get off a trade besides price action and S/R levels or new x.000 lines?
When Stoch 7 is on 60-80 for buys and 20-40 for sells?

Great job BTW, i´m learning a lot with your trading approach and insights, thanks!
Sebastian

Bob

I must admit that I am having a hard time "getting it" on 10.6. Clearly, though, it is working for you.

Is there any way you could write down a simple set of rules that describes how you approach your trades?

Thanks

cmeade2

Just past 2% for the week. Going to bed now night.

You want to trade back into the trend so buy when price crosses up the 20 40 lines and is above the 240 line. Sell as price crosses down 80 60 lines and is below the 240 line. You then look for your best entrance which is DP daily pivot WP weekly pivot or one of the blue line xxx.00. That is the system in a nutshell. You can use the EA for SL TP, if we ever get them working right. Remember this is a test version.

I have been trading for 7 years now and I still learn. It was just last week we noticed the correlation between JPY, AUD, NZD. AUD NZD go one way and the JPY goes the other. This gives me another clue to trade. That is why I took the chance on the AUD/CHF. JPY was weakening and I saw AUD strengthening on trades so what the heck place a buy above all the lines and see what happens. BOOM it worked. I probably would not have ever taken that trade without that knowledge. Now I am looking for stuff like that.

You just never stop learning and then it all starts to click. I was gone for the summer and traded very little and when I got back I just couldnt hit a trade for nothing. After a couple of days you get the feel of the market and off we go again. If you have the apptitude just keep plugging away at it and then all of a sudden you look at a chart and you see a trade just jump at you from off the screen. Then someone asks you why did you take that trade? you look at the chart and you tell them the indies were doing this or that but in reality you begin just seeing them. Dont know how to teach that but by now you know I just study chart after chart after chart until it sinks in.

[viper77]

Impressive stats i must say, i´d be more than happy with just 1/5 of that...
What do you do when CSS infopage in daily chart shows USD stronger than AUD and in H4 AUD much stronger than USD? Guess H4 takes over D1 in this case?

Greetings!

Bob
So now I am up 540 pips for the week so far. All the JPY crosses I am up 60-100 pips except chf/jpy.
Throw in that gbp/nzd and aud/chf trades and I get my 500+ pips.

[viper77]

Thanks Dave, i just did some manual "backtest" drawing vertical lines on entry and exit candles as per your recommendation to see where Stoch stands at that moment and makes more sense now... thanks!

Just look at a few charts and walk through valid trades you might have taken and see what happens when price stalls, where you ideally would have liked to get out (be realistic) - note the price action, where that occurs and what the stoch is doing (maybe even drop down to H1 to see what it looks like there too as the stoch will turn there first and could be used to confirm your other "reads").

Cheers,
Dave.

[nanningbob]

Impressive stats i must say, i´d be more than happy with just 1/5 of that...
What do you do when CSS infopage in daily chart shows USD stronger than AUD and in H4 AUD much stronger than USD? Guess H4 takes over D1 in this case?

Greetings!

Bob
So now I am up 540 pips for the week so far. All the JPY crosses I am up 60-100 pips except chf/jpy.
Throw in that gbp/nzd and aud/chf trades and I get my 500+ pips.

Well the STO is not giving any signals to sell and price is not crossing the WP or DP for any pending sells to take place. So for 10.6 you are not taking any trades. A news trader however would have jumped on the unexpected good news for the AUD and done a buy but I am not a daily news trader.

I divide fundamental traders into two groups. News traders and long term fundamental traders. I dont bother news trading but I will look for certain long term fundamental news. One that I have been playing all year is the JPY bond sales at the beginning of every month. The other I will be looking for is a big refinance of Portugal debt which could happen this fall or early next year. Depending on how that plays out will greatly impact all Euro currencies.

[nanningbob]

I did over 1% today with the big winners being aud/chf, aud/jpy, and cad/jpy. Wish I had hung in on some of those AUD trades today. There were some monster moves but I wasnt watching the news so didnt expect that to happen. eur/aud 350 pips after crossing the 240 line. Just didnt see that coming today. Oh well. Still cant complain though. I did take a gbp/aud sell trade but I cut out early. NIGHT.

In case you need to know I need to bag around 250 pips to get my 1%.

[viper77]

The 3 pairs you mentioned broke the 240 line heavily... so how did you see that coming to countertrend them??

I did over 1% today with the big winners being aud/chf, aud/jpy, and cad/jpy. Wish I had hung in on some of those AUD trades today. There were some monster moves but I wasnt watching the news so didnt expect that to happen. eur/aud 350 pips after crossing the 240 line. Just didnt see that coming today. Oh well. Still cant complain though. I did take a gbp/aud sell trade but I cut out early. NIGHT.

In case you need to know I need to bag around 250 pips to get my 1%.

[nanningbob]

The 3 pairs you mentioned broke the 240 line heavily... so how did you see that coming to countertrend them??

I did over 1% today with the big winners being aud/chf, aud/jpy, and cad/jpy. Wish I had hung in on some of those AUD trades today. There were some monster moves but I wasnt watching the news so didnt expect that to happen. eur/aud 350 pips after crossing the 240 line. Just didnt see that coming today. Oh well. Still cant complain though. I did take a gbp/aud sell trade but I cut out early. NIGHT.

In case you need to know I need to bag around 250 pips to get my 1%.

Again it is taking information and using it. We studied that the AUD and JPY go in opposite directions. That study told us when the JPY is weakening then the AUD is strengthening. We know it is JPY bond selling time so the JPY will be weakened. That means the AUD will strengthen. You take the trade as it crosses the 240 line. The charts confirm both the study and the basic economic news story. So you take the trade with the cross of the 240 line. The only part I did not see was the strength of the move. That was caused by an unexpected positive economic news story.

It doesnt do you any good to study charts and give out info if you dont use it. We discussed this idea last week and I used the information to make some money.

[viper77]

Thanks for the explanation, i missed that pairs study last week...
Hopefully i´ll be able to get on the train at the proper moment next time.

Greetings!

Again it is taking information and using it. We studied that the AUD and JPY go in opposite directions. That study told us when the JPY is weakening then the AUD is strengthening. We know it is JPY bond selling time so the JPY will be weakened. That means the AUD will strengthen. You take the trade as it crosses the 240 line. The charts confirm both the study and the basic economic news story. So you take the trade with the cross of the 240 line. The only part I did not see was the strength of the move. That was caused by an unexpected positive economic news story.

It doesnt do you any good to study charts and give out info if you dont use it. We discussed this idea last week and I used the information to make some money.