10.4 A Complete System

[viper77]

Thanks Bob and TFL99, yes in the past i had a micro account in Cowboy IBFX to test an EA and now that you mention it i remember that if you deposit say $1k it will show as a $100k balance, looks like i´ll have to open another one because the broker i´m currently using (NordFX) for this strategy have 1 lot = 100.000 units, that´s the "little" difference that could kill the account badly if several trades go south at the same time...

[nanningbob]

You also have to remember Steve is with Cowboy IBFX in Aussie land and I am here in the USA. In Aussie Cowboy IBFX they still have the hedging and high leverage software. In the USA 50:1 is the leverage here, and we have the USA rules which has toned down some of their antics. Several brokers have been nailed for various reasons here in the USA where abroad they can still do some shenanigans, not that USAIBFX here is perfect I still see a hesitation in the close of my closes once in a while but it is not regular like it used to be. I also live in China so I am sure some of that is internet connection. I had a hard time staying on line last night, seems like China is attacking the VPNs again. If the dips would just let me use Facebook and YouTube I wouldnt need it.

Anyway most of Steve's gripe was issues with Metaquotes and their updates which screwed things up. USAIBFX will download updates later than most brokers. I think they check the update first before sending it out. In other words there were all these complaints about updates and I hadnt received them yet. When they did come down it didnt seem to cause the problems others were having. Some of my older EAs dont work anymore or need adjusting but I dont use them now. I use pendings and close trades myself. I am hoping the new TP SL EAs will work so I can try letting some trades run.

The one big benefit of a penny broker is if I have a ten cent or twenty cent or thirty cent trade running and I think I have the fundamental direction right but dont want the bigger DD I can close half of it and use 5 cent or fifteen cent trades. I can also slowly increase my lot sizes and increment them with my account balance. So I can raise my lot size from 10 to 12 or 20 to 24 cents. I dont have to jump from 10 to 20 cent lots. This really helps in volatile markets when I downsize my lot size to match potential market volatility. For example, I will downsize my lots next week since Obama is insistent on punishing Syria. Well I will make room for the potential volatility by cutting my lot sizes by a 1/3. If I hit the move right I will still make money but if I dont I wont be facing a big DD or lots of large SL. My whole trading philosophy is I have been making money now protect it and dont get myself into a jam. You learn to adjust to market forces and news.

[nanningbob]

I love these guys our elected officials have put into power. If we all could live like this there would be no unemployment and everyone could have health insurance, a house, and a brand new car. I could travel to the UK, Germany, AUSSIE land and even visit NZ. Gee give me my unlimited credit card. Just keep refinancing and never pay it off.

"Operating the government with no borrowing authority, and with only the cash on hand on a given day, would place the U.S. in an unacceptable position," warned Treasury Secretary Jack Lew

[nanningbob]

I love these guys our elected officials have put into power. If we all could live like this there would be no unemployment and everyone could have health insurance, a house, and a brand new car. I could travel to the UK, Germany, AUSSIE land and even visit NZ. Gee give me my unlimited credit card. Just keep refinancing and never pay it off.

"Operating the government with no borrowing authority, and with only the cash on hand on a given day, would place the U.S. in an unacceptable position," warned Treasury Secretary Jack Lew

Adam Smith in his book on Capitalism wrote, (approximate quote) "There is one thing we know about governments in history. They borrow money and dont pay it back."

I dont want to get deeply political but get ready for a raucous this fall in Congress on the debt ceiling. If you think that wont mess with them markets you aint watchin the news very close or experienced past debt ceiling debates. Lets see:

Portugal debt crisis affects the Euro. CHF ties itself to the EURO
JPY trying to sell JPY faster than people can buy it for safety.
USD fight to the death in Congress.
China ECONOMIC slowdown or maybe they keep running the presses too. I went home for 6 weeks this summer and I couldnt believe how much prices had jump since I left. Most people dont believe me when I tell them many things in China are now more expensive than in the USA.

Lets see ........... hmmmmmmmm ............ Interesting News: Mexico Peso just made it into the top 10 on the World's most trade-able currency list. Maybe time to invest in the PESO.

Better yet how about the Loonie. Canadians how in the world did you come up with a name like that??? Maybe you are the only country in the world who are honest about your money.

[nanningbob]

I guess I am in an Adam Smith mood but here is a quote that perfectly defines the FOREX market.

Nobody ever saw a dog make a fair and deliberate exchange of one bone for another with another dog.

[johnf]

I was with the pepper-stone crew who erased their razor account and unbeknown to me their spread increased. Not until I placed an indicator that illustrated the size that I woke up to the change and I approached them over the matter.
This "in between" time cost me money and their lack of courtesy in this department was excused with their so called email to inform us. You would have thought that a disconnection would have been in order than to allow orders to run. Sorry to digress from the main subject.

Back to the subject.
Bob why would you have entered on this trade marked with the blue arrow.

[nanningbob]

I was with the pepper-stone crew who erased their razor account and unbeknown to me their spread increased. Not until I placed an indicator that illustrated the size that I woke up to the change and I approached them over the matter.
This "in between" time cost me money and their lack of courtesy in this department was excused with their so called email to inform us. You would have thought that a disconnection would have been in order than to allow orders to run. Sorry to digress from the main subject.

Back to the subject.
Bob why would you have entered on this trade marked with the blue arrow.

Price is above 240 so you are looking to buy back into the trend. Price had retreated back behind the 60 showing a full retrace. The Sto7 was giving a signal by sitting on the bottom and when it crossed back up over the 20 line it would give a signal. It will do this again at the 40 line as a reminder. You then place your pending buy at the DP for the cross back into the trend. You then set your SL, 240 line would be a could place for this trade. When in profit bring your SL up and take a ride or take your profit at some point you are comfortable with.

10.6 also has a TP SL page. You can use the 4H or 1H time frames. Choose which line you would like your trade to SL or TP at and set up the EA.

Philosophy behind the trade. 240 is your monthly trend and 60 is your weekly trend. Price often dips during the week below its trend before a run. When you see this you have a sound trade of buying the dips in a rally. That is what the whole 10.0 series is about. The guys who have followed this from the beginning understand that I was trying to find a definition for a trend and a definition for a buy the dips in an uptrend and sell the rallies in a DT. These are my definitions. This is how I see them and where and when I can trade them. I know of no one else that actually tries to define these terms in a specific way. The 10.0 series is an attempt to both define them and then trade the definition. I hope I have come as close as I can to doing that.

[viper77]

Is the new SL TP EA for 10.6 really working now? I tried it in demo but it doesn´t look like it´s closing at the desired price, i´ll try it again next week...

10.6 also has a TP SL page. You can use the 4H or 1H time frames. Choose which line you would like your trade to SL or TP at and set up the EA.

[nanningbob]

I was with the pepper-stone crew who erased their razor account and unbeknown to me their spread increased. Not until I placed an indicator that illustrated the size that I woke up to the change and I approached them over the matter.
This "in between" time cost me money and their lack of courtesy in this department was excused with their so called email to inform us. You would have thought that a disconnection would have been in order than to allow orders to run. Sorry to digress from the main subject.

Back to the subject.
Bob why would you have entered on this trade marked with the blue arrow.

Yes that is considered the ideal 10.0 series trade. Even with 10.5 that trade would have been taken. However it would have been done at the WP on the 4H chart as seen below or the 1H chart but the CSS signal would have been too late for a DP cross. With 10.6 we dont need to switch to the 1H chart for an earlier entrance we have the DP on the 4H and the STO 7 gives you an earlier and clearer warning of the coming trade. With 10.5 if you didnt catch the chart read you would miss this trade. With 10.6 you get a warning signal with 4 or more hours to setup the trade. 10.5 no warning given, you have to catch the trade.

In the pics below you can compare the two trades and see which is the better signal. 10.6 gave you two blue lines plus the DP and WP to enter into the trade. 10.4 gave you 1 and 10.5 on the 1H would have given you several. They key to 10.6 is the clearer goals for TP and that is near those blue lines. I should play for bigger TP. 10.6 is much more clear cut than 10.5 or 10.4 was when it comes to entrances and more reliant on a universal TP with every broker in the world.

You still get a similar pinning action with STO7 that we got with RSI 2 but you get warned when an entrance is at hand. Adding the 60 MA (30MA in the first test edition) also gives you a clear signal that price has retraced enough to play that dip back into the trend. The visuals that traders like to see are there. STO pinning, above the 240, below the 60, warning of move up at the 20, 40, bouncing off of a xxx.00 line, crossing a DP, crossing another xxx.00 line, crossing WP. That is a lot of visuals to trade from.

I will post a new test version this weekend so everyone on Monday will be using the same chart. Even me

[nanningbob]

Is the new SL TP EA for 10.6 really working now? I tried it in demo but it doesn´t look like it´s closing at the desired price, i´ll try it again next week...

10.6 also has a TP SL page. You can use the 4H or 1H time frames. Choose which line you would like your trade to SL or TP at and set up the EA.

I hope so. It is why we call it a test version until we can get all the bugs out.