Trading Systems Forex - Simpler the better-

[Zenda]

the shorters are having a frustrasting time of it this morning, that's for sure

typical jittery pre-release antics & the 7800 magnet holding it for now I guess......quick profits for the 'fast finger' (well - slow in comparison to some instruments ) players tho off the lower support.

Yes Buk - Got stopped out on that trade for loss at 1.2295 - - Buy Hey thats trading I see no reason to chase it - looking for better opportunities - Dog enjoyed his run! The charts are a bit allover the place today - maybe stay out!

 

[karenh]

Well that's cheered me up.
Out of the blue, at the dead of night-- a post both wise and relevant to the theme of the thread (!)

Just to clarify from your post.
Is it just the discipline of your regime that is being controlled by the stuff 'between your ears'
or is there any additional discretion being employed (shaped by your eight years of trading experience?)

'Small' reliable profits plus canny money management techique = fast track to that Malibu mansion,
as you've clearly worked out behind the modesty..

Hi Torch,

Im glad I cheered you up!

Since you ask -I will be happy to describe the method to develop a regime in your case.

1) Before working on the matter between your ears you must first remove your head from the dark cavern between your legs.

2) When you wipe the stuff from your eyes you may see something of value, then again I can't be sure that you will.

3) You chitter muchly on these boards according to the public record and you may wish to consider studying as an alternative.

4) FX trades 24 hrs and you mention that I wrote at your dead of night. You think I trade from the west- what does this tell you about powers of observation and assumptions made when taking a FX position?

5) You say there is a fast track to a Malibu Mansion by trading FX. Perhaps you think FX means Futures Exchange?

6) Your assumption regarding modesty is interesting. You assume it is a virtue but perhaps it is simply a confession of deficiency. Undervalue yourself and you can be sure of being undervalued by others.

You have cheered me up enormously this morning...and I am even happier that I pulled 58 pips yesterday and have taken my first trade today which looks promising.

As is said in the East ..

UZNY MENE !!

In modesty

Karen xxx

 

[sidinuk]

4) FX trades 24 hrs and you mention that I wrote at your dead of night. You think I trade from the west- what does this tell you about powers of observation and assumptions made when taking a FX position?

erm...

karenh

Join Date: Sep 2004
Location: UK
Posts: 5

So a fair assumption one would have thought! Or are you talking about Essex when you say the East?

 

[TheBramble]

UZNY MENE

Karen, send me a photo of it and I'll let you know.

 

[forexguru99]

This is a very simple MA crossover on CMS - use it as a quick guide wnen trading thought it might show Keep it Simple - Live chart 17.15 today USD/CAD - It just shows the opportunities missed daily! by concentrating on the Euro & Cable

do u not get whipsawes with MAs?
if so what is the best strategy?
also what is the besty time frame u work on?

 

[noises49]

Whipsaw

do u not get whipsawes with MAs?
if so what is the best strategy?
also what is the besty time frame u work on?

Hi Guru,

Yea - lot's of whipsaw.
You almost answered your question on strategy with your question on time frame.

We're faced with a two(2) dimensional challenge - Time as well as Space.

Any chart shows that MA (or any other system) works well at times and not others, so.....

1 - Check TOD (time of day) when he's working well vs not. (Pay particular attention to both the London and NY open). Also, is the X leading or lagging? If price has already moved 50 pts at the time of the signal, it may be wise to fade the mkt.

2- Work shorter time scales (5 or 1 Min) vs longer (1Hr) depending on known mkt volatility - specifically referring to the "Event Horizon." Trading NFP is not the same as trading Sunday nite.
Pay attention to how the market trades during these events - you'll find useful patterns and correlations.

3 - Adjust lot size accordingly - trade larger lots for smaller time frames and vice-versa.

OK? - Stay away from known bombers!

Regards,

Noises

 

[nyapwiltex]

You could try ADX as a trend-strength indicator, or enter based on divergence followed by confirmation of the MA cross.

 

[ANGELO]

simple but effective - I LIKE IT!

Totally agree noises49 - There really is nothing difficut this system is available Free (download it from www.learntrading.co.uk ) - the problem comes when newcomers start to "Think"

thank goodness someone still uses simple ma , ZENDA I like your style , what other systemes / indicators do you use?

 

[noises49]

For All Non-Believers

Here's today's 5/21 Cross off Greenspan @ 1400GMT/1000NY.

Simple but effective. Works well around the "big" events.

 

[zhk]

Hi Karenh:
I am new to FX and have read some of your posts. Could you please explain in detail how to trade the DMI indicator, if you could send a few more charts showing WHEN to take the signals, if DMI does WHAT, when Price is goinf Up or DN, I would greatly appreciate.
My e-mail is [email protected], if you dont want to place it on the boards.

 

[ilford]

This is a very simple MA crossover on CMS - use it as a quick guide wnen trading thought it might show Keep it Simple - Live chart 17.15 today USD/CAD - It just shows the opportunities missed daily! by concentrating on the Euro & Cable

Interesting posts here Zenda
thats all u need in Forex! follow the trend
what better system than MAs

 

[Baruch]

Interesting posts here Zenda
thats all u need in Forex! follow the trend
what better system than MAs

The problem with MA is that you get destroyed in a choppy market/trading range with no clear trend.

 

[SOCRATES]

Quite so.

 

[alanbeale2001]

Just my 10 pips worth!

I have looked at a lot of 'systems' in the past but now spend more time studying the market and the news ticker.

I do place MA's on my chart but only for feel factor. I prefer to try to follow the trend and trade quite well uk open and late afternoon uk on all the main pairs.

I use gts trading platform which has good news and great commentary by traders. JUST trading off the news and advice i make 10-20 pips a day.

Keeping my eye on volume i normally spot the slow downs and watch for those doji or hammer head candles.

I aim for 25 points per day and often get a lot more with short term trades 5 min - 3 hours max.
i am not adverse to taking small 2 or 3 pip trades they all add up.

My stop loss is the boss i never argue with it!

I do have bad days but the better ones makes my 500 pips per month easy to meet.

My strategy may not work for all but it proves to me that simple logic and market feel are the best system available.

I am sure this post will open me up to some criticism which i welcome, this site is after all the very best free college of financial education we all have something to offer and something to learn.

" If your boat is leaking , dont drill a hole to let the water out "

 

[nbo2]

If you are looking for a simple method of trading try this.

1) if the market is trending up Buy the dips. Exit when it fails to make a higher high and instead makes a lower low.

2) If the market is trending Down do the opposite of 1.

3) If the market is trending sideways stay on the sidelines and wait till the market trends either up or down.

to determing the trend, draw 2 lines from left to right. one above the price bars the other below. If they are heading up, then the trend is up. If they are heading down then the trend is down. If they are heading more or less sideways Small slant allowed in this - then the trend is side ways.

If the lines are up and the prices go below the up line, then start drawing new ones. vice versa for down. For sideways - well that's obvious - just make sure you're outside the lines and going somewhere before you take a trade on...

Do this on a bigger chart 4hr-day and on a shorter chart - you chose the time 5 or 15 something like that - it really doesn't matter. Tie the two next to eachother so you know where you are in the market and let the market do the rest for you...

Does this work? you better believe it. Not every trade will win, but more than enough will win more than big enough to make consistent quality returns with few headaches. Strangely - it can take maybe years to discover the simplicity of it and yet whole Banking dynasties were built on nothing more than riding the trend out till it died.

Goes with what I said many weeks ago on another thread - Wait for it to break into a direction - wait for it to pull back then enter in the direction of the break and wait till the trend fails! - same thing different language that's all.

If it ain't going somewhere - leave it alone! Otherwise go with it!

 

[FOREXHUSKY]

yes it may work but its similiar to 4xmadeeasy -follow green arrow lolol

Many times price break and made new high or low and then pull back all the way.
Where are stops then?
Hows money mannag. working.
I know some people with are making money on patterns(breaks),but stops are really wide somtimes and its not fits most of the money. mann. rules for some of small accounts traders.

In my opinion just PIVOT ZONES.

 

[nbo2]

This may sound a little Brutal - not intended.

1 breakouts - Isn't that the point - if it ain't going somewhere - and the retrace comes right back you havn't go a trade have - you - It's there in the rules above.

2 - stops - It doesn't take much to figure out where to put a stop sensibly near enough to protect the account and far enough away to not hurt the trade...

3 - why not try doing a little research re- the rest (like money management etc) and you'll find out just how powerful these simple rules are. It doesn't take much to cobble together something sensible that works for you...

4 - follow green arrow garbage at the beginning of the post - look at previous answers points 1-3

After 20+ yrs in this business at the sharp end institutionally, I'm still astonished how many people will take the simplest of things and over complicate it!

No offense intended....

Oh - btw - it does work. That's what most of the biggest traders around do using daily/weekly/monthly timeframes with outlooks from weeks to years for holding anything from stocks to commodities to currencies to futures etc. Market makers use it to keep their book on the right side day by day (fortunately they get a lot of help from punters going the wrong way continually...) PIt traders use it to keep position the right way while turning spreads and taking on/offsetting the retail/institutional-fund risk. They do it in shorter time horizons aiming for flat at the end of day...

 

[Baruch]

This may sound a little Brutal - not intended.

1 breakouts - Isn't that the point - if it ain't going somewhere - and the retrace comes right back you havn't go a trade have - you - It's there in the rules above.

2 - stops - It doesn't take much to figure out where to put a stop sensibly near enough to protect the account and far enough away to not hurt the trade...

3 - why not try doing a little research re- the rest (like money management etc) and you'll find out just how powerful these simple rules are. It doesn't take much to cobble together something sensible that works for you...

4 - follow green arrow garbage at the beginning of the post - look at previous answers points 1-3

After 20+ yrs in this business at the sharp end institutionally, I'm still astonished how many people will take the simplest of things and over complicate it!

No offense intended....

Oh - btw - it does work. That's what most of the biggest traders around do using daily/weekly/monthly timeframes with outlooks from weeks to years for holding anything from stocks to commodities to currencies to futures etc. Market makers use it to keep their book on the right side day by day (fortunately they get a lot of help from punters going the wrong way continually...) PIt traders use it to keep position the right way while turning spreads and taking on/offsetting the retail/institutional-fund risk. They do it in shorter time horizons aiming for flat at the end of day...

Regarding your point 2: How many pips do you risk? I think it's difficult to place the stop. I don't want to be stopped out too early, and I don't want to risk too many pips. And if we place it based on the chart, the stop-hunters will kill us.

 

[nbo2]

Regarding your point 2: How many pips do you risk? I think it's difficult to place the stop. I don't want to be stopped out too early, and I don't want to risk too many pips. And if we place it based on the chart, the stop-hunters will kill us.

That's the whole point of buying dips on the way up and selling rallies on the way down - you're now working in synch with the stop hunters and buying/selling just as the punters get stopped out!

Kinda makes it a little easier to use a smallish stop and yet keep it safe doesn't it?

 

[FOREXHUSKY]

Thx for nice answer.
It was my point to get it.
As i post i know in person couple people with made money on Pattern breaks.
Still talking about theory and posting real trades are two way diff ways.
Talk is cheap.
Sup res breaks are great for trading and i never say nothng against it.
But i like live screenshoots from open and close positions to teach people not talking about something with is all over net and in gazilion books.