Best Thread Live Cable Trading

[Marlonb]

Went long @ 1.7490 with the help of a system I have worked on with forexsupport.net.

Trailing stop currently @ 1.7521

 

[jacinto]

YES !

well done! I missed it completely.

 

[JillyB]

is this Darvas box type stuff ?

Yes, I've been trying it for a while on both the Cable and the Euro/$ and it seems to work quite nicely, though a lot of time with not many pips. I look to take a minimum of 5 pips after the spread - I consider this safe and it works the majority of times. If the momentum isn't there I take the 5 pips, but if it is, I lock in at break-even and then trail the stop up after it.

 

[trendie]

Yes, I've been trying it for a while on both the Cable and the Euro/$ and it seems to work quite nicely, though a lot of time with not many pips. I look to take a minimum of 5 pips after the spread - I consider this safe and it works the majority of times. If the momentum isn't there I take the 5 pips, but if it is, I lock in at break-even and then trail the stop up after it.

good to see this thread has attracted a different methodology.
Hope you post a lot of consecutive trades.

My analysis has shown what others knew already - that 6-8am and 12-14pm trades tend to be good points to identify BOs, so those regions may benefit from Darvas type strategies.
( based on the assumption you are looking to ride the momentum at these times )

I also think that the hans123 BO of the afternoon benefits from only using a 2-3hour range, ie; not 8-12, but more 10-12.
also, if the by the afternoon the overlap between 4-8 and 8-12 is considerable, fading the move proves more profitable.

I am trialling a MA type strategy based on 8-EMA, but only taking trades based on 6-8am and 12-14pm, thus reducing numbers of trades, potential whipsaws etc, and riding the momentum at appropriate times.

First short was failure. DAMN and BLAST.

But will not chase trade. will wait till around 12pm to re-evaluate.

what happened to TheBramble ? I miss his perspective.

 

[Priceman]

good to see this thread has attracted a different methodology.
Hope you post a lot of consecutive trades.

My analysis has shown what others knew already - that 6-8am and 12-14pm trades tend to be good points to identify BOs, so those regions may benefit from Darvas type strategies.
( based on the assumption you are looking to ride the momentum at these times )

I also think that the hans123 BO of the afternoon benefits from only using a 2-3hour range, ie; not 8-12, but more 10-12.
also, if the by the afternoon the overlap between 4-8 and 8-12 is considerable, fading the move proves more profitable.

I am trialling a MA type strategy based on 8-EMA, but only taking trades based on 6-8am and 12-14pm, thus reducing numbers of trades, potential whipsaws etc, and riding the momentum at appropriate times.

First short was failure. DAMN and BLAST.

But will not chase trade. will wait till around 12pm to re-evaluate.

what happened to TheBramble ? I miss his perspective.

Being a total novice to all of this... what the hell's a Darvis and Hans123 ?!! Still looking for my holy grail system !

Good input from all here, it's great to see. Cheers guys

 

[JillyB]

Hi Trendie

Thanks for that. I'm very, very new to FX trading. I always trade the Dow, but I wanted to find something to occupy me in the morning, so I started looking at FX.

None of the strategies that I use on the Dow work on the FX - at all ! It is a totally different instrument. So this started me looking for another way. I like simple strategies and when I found that Darvas boxes on a 5 min chart seem to work, I was quite happy.

This morning they caught the break-out at 8.05am - I took 22 pips after the spread.
Then another 5 pips on the Swissy at 9.25am breakout and the Euro/$ at 9.40am with 5 pips.

5 pips may not seem like much, but it's relatively safe and they do add up.

 

[trendie]

JB,

I have started looking at 5-mins, but only for impending IB account.
With spread-betting, and the 3-pip spreads, I find trying to go for anything less than 30-50 pips unworkable due to spread / profit ratio.
Glad someone has found a way to trade 5-mins with SB.

 

[Zinger]

Hi Trendie

Thanks for that. I'm very, very new to FX trading. I always trade the Dow, but I wanted to find something to occupy me in the morning, so I started looking at FX.

None of the strategies that I use on the Dow work on the FX - at all ! It is a totally different instrument. So this started me looking for another way. I like simple strategies and when I found that Darvas boxes on a 5 min chart seem to work, I was quite happy.

This morning they caught the break-out at 8.05am - I took 22 pips after the spread.
Then another 5 pips on the Swissy at 9.25am breakout and the Euro/$ at 9.40am with 5 pips.

5 pips may not seem like much, but it's relatively safe and they do add up.

New one for me JillyB - do you have any good links ?

 

[JillyB]

New one for me JillyB - do you have any good links ?

Hi Zinger

It really started out on the T2W website - I was reading through various posts (as you do) and I kept seeing the name Darvas keep cropping up. It was in relation to the book "How I Made $2,000,000 in the Stock Market". I hadn't heard about it, so I started looking into it and Googled 'Darvas'. It was there I found this link and a really good explanation of how the Darvas boxes work.

http://www.sethi.org/investments/darvas/

At the time I was trying different approaches to the FX markets, trying to find something I was comfortable with i.e. not too complicated and which gave a relatively good percentage win rate. As I said in an earlier post, non of the strategies I used to trade the Dow would work at all on the FX markets and I really couldn't seem to get my head around them.

To start with I paper traded the Darvas boxes on both the Cable and the Euro and was really pleased with the results - as Trendie pointed out there are particular times of the day, such as just before 8.00am when the boxes seem to work really well and the profits are there to be taken.

I suppose I've not quite used the Darvas boxes as they were intended, but I feel quite comfortable with it.

 

[Zinger]

Hi Zinger

It really started out on the T2W website - I was reading through various posts (as you do) and I kept seeing the name Darvas keep cropping up. It was in relation to the book "How I Made $2,000,000 in the Stock Market". I hadn't heard about it, so I started looking into it and Googled 'Darvas'. It was there I found this link and a really good explanation of how the Darvas boxes work.

http://www.sethi.org/investments/darvas/

At the time I was trying different approaches to the FX markets, trying to find something I was comfortable with i.e. not too complicated and which gave a relatively good percentage win rate. As I said in an earlier post, non of the strategies I used to trade the Dow would work at all on the FX markets and I really couldn't seem to get my head around them.

To start with I paper traded the Darvas boxes on both the Cable and the Euro and was really pleased with the results - as Trendie pointed out there are particular times of the day, such as just before 8.00am when the boxes seem to work really well and the profits are there to be taken.

I suppose I've not quite used the Darvas boxes as they were intended, but I feel quite comfortable with it.

Thanks Jill !

 

[JillyB]

Darvas box breakout on 5 min chart just occured.

I trade with CMC so the figures I'm giving are off their trading platform - Sell prices (these are what they chart on)

Darvas box formed at 1.7562 top, 1.7547 base.
Broke base of box on 11.25 candle.
Target 1.7538 (1 pip tolerance on entry, 3 pip spread, 5 pip profit)
5 pips in the bag

 

[Zinger]

Darvas box breakout on 5 min chart just occured.

I trade with CMC so the figures I'm giving are off their trading platform - Sell prices (these are what they chart on)

Darvas box formed at 1.7562 top, 1.7547 base.
Broke base of box on 11.25 candle.
Target 1.7538 (1 pip tolerance on entry, 3 pip spread, 5 pip profit)
5 pips in the bag

Thanks Jill - I can see that quite clearly.

Question for you - why was the top of your box 62 and not 73 (candle at 1035 ) ?

 

[trendie]

Being a total novice to all of this... what the hell's a Darvis and Hans123 ?!! Still looking for my holy grail system !

Good input from all here, it's great to see. Cheers guys

hi Priceman,

JB has described Darvas.

hans123 is a system described on "StrategyBuilderfx" website.
it is a BreakOut at the 4-8am and 8-12 time-frames. ( 5-9 and 9-13 GMT )
( logical, as this accounts for Europe open and US open times )
it trades twice a day, unless a reversal occurs.
system run against GBPUSD and EURUSD.
it was followed here for a while, before people got bored with it.
seems to be equity-positive, but drawdowns perhaps unpalatable.
since it is a BO strat, it gets whipped in rangey days.
hope that helps.

 

[JillyB]

Thanks Jill - I can see that quite clearly.

Question for you - why was the top of your box 62 and not 73 (candle at 1035 ) ?

Because the candle at 10.55 broke the base of the box before it was formed, thus invalidating it.

 

[Priceman]

hi Priceman,

JB has described Darvas.

hans123 is a system described on "StrategyBuilderfx" website.
it is a BreakOut at the 4-8am and 8-12 time-frames. ( 5-9 and 9-13 GMT )
( logical, as this accounts for Europe open and US open times )
it trades twice a day, unless a reversal occurs.
system run against GBPUSD and EURUSD.
it was followed here for a while, before people got bored with it.
seems to be equity-positive, but drawdowns perhaps unpalatable.
since it is a BO strat, it gets whipped in rangey days.
hope that helps.

Thanks for that, I'm just reading about DArvas boxes now. Sorry for not contributing too much at the moment apart from taking all your helpful info guys. In years to come if I'm still around hopefully I can impart this knowledge to some other newbies ! Cheers, here's to plenty of pips later on the USA news... Good luck all !

 

[Zinger]

Because the candle at 10.55 broke the base of the box before it was formed, thus invalidating it.

Doh !

Thanks again Jill.

 

[neil]

scalps and holidays

JB,

I have started looking at 5-mins, but only for impending IB account.
With spread-betting, and the 3-pip spreads, I find trying to go for anything less than 30-50 pips unworkable due to spread / profit ratio.

Glad someone has found a way to trade 5-mins with SB.

You should find chopping out trades of 5 pips profit not too difficult with a Direct Access broker like IB. As someone mentioned above - these 5 pips add up ($50 per 5 pips)

I suspect that others here, like myself, are not trading/posting trades because of the Easter holidays - hence fewer posts.

 

[trendie]

Darvas boxes !! ( revelation )

arent they so similar to Joe Ross 1-2-3 ??
High put in:
then wait for a lower candle ;
then a retrace, where a higher-high and higher-low put in.
then break of low triggers entry.
( a breach of high invalidates signal, and you start all over again )

the time-scales are also fairly similar, in that between 3-5 candles needed to pattern to form.

( I shall go away now and watch my Futurama DVDs ( Bender rules OK ) )

EDIT: difference is, Darvas allows breaks to both upside and downside as valid signal, whereas JR is a reversal pattern, and you only look for a particular direction.

 

[JillyB]

Darvas boxes !! ( revelation )

arent they so similar to Joe Ross 1-2-3 ??
High put in:
then wait for a lower candle ;
then a retrace, where a higher-high and higher-low put in.
then break of low triggers entry.
( a breach of high invalidates signal, and you start all over again )

the time-scales are also fairly similar, in that between 3-5 candles needed to pattern to form.

( I shall go away now and watch my Futurama DVDs ( Bender rules OK ) )

EDIT: difference is, Darvas allows breaks to both upside and downside as valid signal, whereas JR is a reversal pattern, and you only look for a particular direction.

Hmm, similar but not the same.

The 1-2-3 format can be triggered on the 4th candle where as with Darvas the box has to be confirmed with 5 candles as a minimum.

With Darvas the top is found first and as long as this isn't breached then the third candle can set the low of the box. If the low gets breached then it can be reset, as long as the top still holds. Any reset low is still counted as the 3rd candle so it needs another two candles after it before the full Darvas box is valid.

 

[trendie]

another possible Darvas on the 30-mins ?

( amazing how taking a different perspective gives different entry/exit criteria )