Richard Hill Forex Net Trap

[Claviceps]

Just thought I'd clear something up here for some of the newer folks ( not that I've been
here that long ) . You'll no doubt be noticing some variation in results this morning - this can be due to a number of factors - volatility being a key one , there will be a spread of entry points to this mornings trades , my own entry was 14702 and 14700 for MNT , and yes I did cheat a little by entering a minute or two early . In my little world if I'm going to go short on a rising candle then I'll do it from the highest point I can even if that means
bending the rules ,and the same works in reverse for going long on a descending candle.

Hope that helps clear up what could be confusing for a newbie to trading.

p.s. don't follow me I'm lost!

 

[SA Trader]

I got -30 today
what was everyone's entry price, on standard net trap that is?

Entry should have been 14691

 

[SA Trader]

I woke up late & only entered 'at market rate' of 14704, so I got my +50pips, but did any of the true NTrappers get +50 today - its too close on the charts to actually see if you guys made it or not ??

 

[Rugby Trader]

I went in at 14691, got stopped out at 14721.2

 

[alexgroom]

I woke up late & only entered 'at market rate' of 14704, so I got my +50pips, but did any of the true NTrappers get +50 today - its too close on the charts to actually see if you guys made it or not ??

Nope, +50 points for "true net trappers" was not available although from reading this forum it seems that "true net trappers" are already a dying breed.

 

[ak88]

I went in at 14691, got stopped out at 14721.2

Thats the thing today - do you round up or down? Or round in favour of your direction or against? A bit annoying when its such a close call and rather than being -30 you was +50.

My point of view is that I followed the system, if I did nothing wrong and followed it then its part of the game. If I was wrong in rounding - then this was a lesson to be learnt. Oh well......

 

[Rugby Trader]

I've asked Richard about this and you round the number off. You don't round up or down or in the direction, you round the number off.
.1 - .4 = down
0.5 - 0.9 = up

 

[beaumont]

Hello everybody, I also was stopped out at 14721 having entered at 14691. It might be a "swings and round-a-bouts" thing, but had I used Capital spreads this morning I would not have been stopped out as their highest point was 14717 (as opposed to IG's 14718.4).

 

[gav2e]

MNT +10 NT+22 today. The entry according to RH rules was 14691. I don't know why or how some entered at higher levels, it's not NT rules but their own. As for some being stopped out, maybe a combination of IG slippage again plus the wider spread on IG? Not sure, I won't use IG for NT anymore because of the slippage, I use capital spreads for NT and Twowayspreads for MNT and have not had slippage even once.

 

[mark120169]

I went in at 14691, got stopped out at 14721.2

Correct entry. You got stopped out becasue NT only has a "net" stop travel of 27 pips on a sell order due to the spread.

Please go back to my posts on the 7/6/10 when this last happened. They are below here:

http://www.trade2win.com/boards/first-steps/81860-richard-hill-forex-net-trap-163.html#post1147028

Read my post #1302 it explains.

It is now good practice to set a stop limit of 33 on sell orders, hence why I did not get stopped out today.

M

 

[mark120169]

MNT +10 NT+22 today. The entry according to RH rules was 14691. I don't know why or how some entered at higher levels, it's not NT rules but their own. As for some being stopped out, maybe a combination of IG slippage again plus the wider spread on IG? Not sure, I won't use IG for NT anymore because of the slippage, I use capital spreads for NT and Twowayspreads for MNT and have not had slippage even once.

Sell 14691 , stop 33 (to ensure 30 pip of stop travel)

TNT 60/60 +30 =

MNT +10

NT +20 closed manually @ 8.30

 

[BigDunc]

MNT +10 NT+22 today. The entry according to RH rules was 14691. I don't know why or how some entered at higher levels, it's not NT rules but their own. As for some being stopped out, maybe a combination of IG slippage again plus the wider spread on IG? Not sure, I won't use IG for NT anymore because of the slippage, I use capital spreads for NT and Twowayspreads for MNT and have not had slippage even once.

You're right, I've just gone back to the chart and think I based my entry price on the closing price of the 6.15 candle. These early starts aren't helping my concentration.

 

[Rugby Trader]

Nope, +50 points for "true net trappers" was not available although from reading this forum it seems that "true net trappers" are already a dying breed.

not me.

I've been avoiding all these variations although they have proved to be interesting reading.

I'm just sticking with Net Trap, I know it works and it suits my working day.

I am trying to learn and come up with own additional systems though

 

[Rugby Trader]

It is now good practice to set a stop limit of 33 on sell orders, hence why I did not get stopped out today.

M

Why is it good practice?
Has RH updated the system?

 

[mark120169]

Good Morning Gentlemen,

Usually I sit on the background and watch you guys but I thought I'd just chip in with a quick set of thanks. Mainly for MNT but also for concurring on days when I make alternative decisions (early entry, exit, SL etc) and at least some of you have the same thoughts. Not exactly following the rules but I have an over riding desire for +ve pips

Anyway, I have a question.. I have the book, but its not in it as far as I can see..

Why is that particular MA chosen as the trend line?

cheers

Thanks about MNT, just don't shout at me if it has a run of losses sometime in the future :whistling

Asfor the MA.......ask RH by email he may say why. But please please please don't mention the figure as quite a lot of watchers here without the book scratching their heads as to our figures. This is what we paid £247 for!

M

 

[langmeadman]

I went in at 14691, got stopped out at 14721.2

Same here. I've been using this for 3 months now but today was the most frustrating day so far... My problem Is I think I used ETX which obviously is in a slightly different place to IG: This goes down as a day that should have bween +40 and ended up -30...

 

[peterf1966]

Correct entry. You got stopped out becasue NT only has a "net" stop travel of 27 pips on a sell order due to the spread.

Please go back to my posts on the 7/6/10 when this last happened. They are below here:

http://www.trade2win.com/boards/first-steps/81860-richard-hill-forex-net-trap-163.html#post1147028

Read my post #1302 it explains.

It is now good practice to set a stop limit of 33 on sell orders, hence wy I did not get stopped out today.

M

Bloody frustrating for Ig'ers really, stopped out by 0.4 of a pip.

On ETX it gives the mid price, but I make my entry -5 off this on sell orders, just to match IG's entry, and I've been adding the extra 3 to the stop on sell orders ever since you pointed this out, though I keep the limit at 50.

The thing is, where do you stop? Annoying as it is to just get stopped out by the odd 1/2 point, you do have to have a limit, and not be tempted to keep upping the stop when you get near it. It's a matter of long term discpline I suppose, over a year, we could easily have a few losses of 33 pips, though without the backtesting I wouldn't know if those extra 3 pips losses are made up for by the days when it got to between 30-33, then went back in your favour.

Certainly this morning, the potential 3 extra pip loss, was rewarded hansomely for a +45 (for me anyway) profit.

It may all be swings and roundabouts in the end.:?:

 

[mark120169]

Why is it good practice?
Has RH updated the system?

Becuase for such a small additional 3 pip gamble on a sell order you are ensuring you get the "true" 30 pip "Stop travel" you enjoy automatically on a "buy" order.

This is two days now this month alone where a 33 stop limit would have avoided you being stopped out on a sell order if you broker has a 3 pip spread which most do.

There have also been no sell orders in the last 5 weeks that have been stopped out @ a 33 stop, so in recent history you are not losing anything.

All you are doing is adjusting RH easy "30" stop rule to ensure you have a 30 stop travel on a sell rather than a 27 stop travel of vanilla NT.

Your choice i guess, I have made mine.

M

 

[Wagtail]

Correct entry. You got stopped out becasue NT only has a "net" stop travel of 27 pips on a sell order due to the spread.

Please go back to my posts on the 7/6/10 when this last happened. They are below here:

http://www.trade2win.com/boards/first-steps/81860-richard-hill-forex-net-trap-163.html#post1147028

Read my post #1302 it explains.

It is now good practice to set a stop limit of 33 on sell orders, hence why I did not get stopped out today.

M

Hi Mark,

Interested on whether you have any stats on whether this is more profitable long term. Obviously on a day like today it has a massive gain, but on days when price sails though the stop, it will just cost an extra 3 pips each time, which will obviously rack up in the long term. I would be interested to test this over a long period, but if you've got some stats on this, I wont bother.

 

[Claviceps]

Why is it good practice?
Has RH updated the system?

RH does mention this on his weekly mailing , though its mainly targeted at those using the
Limited RisK account at IG.