tmalone

Thanks for the confirmation.

 

By the way I recollect most of these authors as having done a lot of work with stocks, indeces and futures. Do these methods perform exactly the same on forex?

 

Yes they do! Any freely traded, liquid market will do the trick.

From a purely intellectual standpoint (and I appreciate this could distract me from my main objective) which author best goes into the detail of addressing the issue of proper scaling.

 

Gann of course is the initial impulse behind much of this geometric price/time trading and he treats the subject of scaling extensively throughtout his writings. But I've never had an easy time digesting or understanding his style of writing. Jenkins is probably my favorite author/trader in terms of treating many Gann-based subjects in a thorough yet understandable way. He has written about proper scaling in many of his books and courses and shows many techniques that can be utilized from it.

 

But I would urge you to trust your instincts and NOT let this subject of scaling become a sticking point for you. The time and effort required for properly scaling a chart simply is NOT needed to achieve the main objective of trading which is profits. Very accurate price/time targets can be had while utilizing unscaled charts so why bother?

While there are many price/time trading methods that do require a properly scaled chart in order to yield accurate results, there are many that do not. Each and every chart, irregardless of its scaling, has its own inherent geometry no matter how skewed the price axis may be from the time axis. Certain price/time projections made on such charts will still yield accurate results because the price/time distortions are uniformly distrubuted throughout the chart. So any angles or lines drawn upon such a chart will also conform to the distortions and work despite the imperfect price/time scaling.

 

The works of Larry Pesavento and Scott Carney are probably the simplest places to start in terms of finding geometrical methods of trading that do not require specific chart scaling while still yielding accurate and workable entry and exit targets. From there one can then move on to the works of guys like Michael Jenkins or Alexander Goulden who teach some more advanced geometrical tools that still do not require specific chart scaling. But if practical and workable exit targets are your main concern, I'd start with Pesavento and Carney. Good Luck!

Have been doing an extensive research on how to trade without stoplosses and still be very profitable. I mean letting your losses run and still come out profitable on the long run.

 

Please enlighten me: Why would one even think of devoting "extensive research" on this subject? The ONLY reason for an individual to speculate in any financial market is PROFIT.

There is no other reason for it. So why would the idea of "letting your losses run" even begin to be contemplated?? Letting losses run is diametrically opposed to the goal of obtaining profits. This is exactly like saying: "I'm devoting extensive research into arriving at a destination by going in the exact opposite direction of that destination". Mind-boggling to say the least.......

I am looking for something that has a statistical edge, is based on a sound money management system, doesn't take weeks to materialize, doesn't require $50,000 to cover the draw down, and isn't an Asian scalper, London Breakout, grid, hedge or martingale.

 

Many thanks in advance.

 

Dave

 

If you know what you are looking for, than finding it is rather easy. Do you know what

edges are available to a trader? If you don't, then you won't know a system that has one if and/or when you come across one. Do you know what truly constitutes sound money management? If you don't, then you will not be able to fully take advantage of any trading edge you may possess. It is easy to "want" lots of things, a profitable trading methodology included, but no one who has it is going to hand it over to you for nothing. The work required to become a consistently profitable trader is as time and effort consuming as any of the higher-level professional occupations out there ( doctor, lawyer, etc..). Put in the time and effort, deal with and learn from the frustrations, and the results will come. They won't come from a 5-minute post to an internet forum, that much I can guarantee you.

Can somebody please provide some install instructions for the Astro Indicator package?? I would greatly appreciate it .

Q: How can you become a millionaire in less than 2 years??

 

A: Start trading with $2 Million ....... :)

Thanks again for the input , tmalone. But then what time frame would I be looking at when trading breakouts above the previous high and where would be my SL then. Wouldn't the risk be too large if it was right at the previous low or where?

 

Trading is fractal in nature, so the timeframe is irrelevent. Whatever one you prefer or choose. I prefer dailys and weeklys. Use unit or lot sizes to adjust the size of your risk not the market. I trade with Oanda and using their unit designations I'm able to risk 2% of my account size whether my stop-loss is 15 pips or 250 pips from my entry. I simply adjust unit sizes to dial in a 2% risk. If you are not with a broker that offers something similiar, then I would shop around for another broker.

However, those in very strong trends hardly retrace at all, sometimes not even 32.8. They just bouce away from 23.6. Therefore waiting can be a boring game and will hardly enter any trades.

 

Now what would happen in these instances if, instead of waiting for retracements which may not appear at all, you instead bought the market as it trades above the previous high that occurred before the bounce and participated in these strong trends? When I began to systematically take such trades, I finally turned the corner and began to make money.

Thanks chris, but then how do we avoid this manipulation?

The forex industry pushes and caters to daytrading/daytraders heavily because it is those traders who are most susceptible to short term manipulation and stop-running. Prices can't be manipulated too far from the underlying cash basis otherwise it would become far to obvious and watchdogs like the NFA and CFTC could be brought into play (which is happening more and more anyway...). One easy way of avoiding the manipulative noise is to trade from a larger timeframe. Larger timeframe perspectives usually result in stop levels far enough from current prices to render the short-term manipulations a moot point.

Thanks tmalone, Do you have a book by Gann explaining this particular technique?

 

It can be found in more than one of Ganns writings, but here is one for you:

http://www.4shared.com/document/EN_jxSMf/w_d_gann_1942_how_to_make_prof.html

Thanks chrisenjy and tmalone. What however I do not understand is what do brokers have to gain by manipulating prices quoted to us? they make money from spreads anyway.

 

tmalone, I have tried Bernie Mitchell, but was just as unsuccessful. Are you able to tell me how you determine strength and weakness? Are there any indicators or fundamentals you look at?

 

I do not use any indicators or fundamentals. My trading is about as simple as one could get. I basically buy new highs and sell new lows when they occur on larger than average price bars that close near the top or bottom of the range on daily charts. I also keep track of the size of corrections in terms of the amount of pips and the amount of bars they consist of. For example, if a market is trending up, it's first two corrections may run 3 to 4 bars long and be 95 to 100 pips deep. The third correction may then run 10 bars long and be about 300 to 400 pips deeps. I then begin to key off of the biggest (3rd) correction and will watch and wait for a correction that is more than 10 bars long and 400 pips deep. I will sell the market as soon as such a correction occurs with a stop above the previous high. This is a technique I got from reading Gann and it's quite accurate at positioning one into developing trends.

If you feel really compelled to keep researching retracements and how to trade them, I would recommend you look into a trader named Bernie Mitchell and his use of what he calls FIb Clusters. I took his webinar a couple of years ago and truly believe his use of Fib Clusters produces the most accurate levels out there. He does'nt disclose the exact algorithims he uses to generate them, but I've compared them to the usual 38% to 78% Fib levels and they are different. All that being said, I still was'nt able to be consistently profitable using them due to the fact that like most Fib level methods, when you are wrong you are really wrong. I finally became a consistently profitable trader when I threw retracement trading out the window and began buying strength and selling weakness (the exact opposite of what retracement trading dictates...). I consider my time chasing retracements as a waste of both time and money.

With 200+ Pips StopLoss?

633 2008.02.26 20:31 buy 313 0.09 1.49500 1.47168 0.00000

 

Be very careful!

 

Stoploss size is completely irrelevant as far as money management is concerned. It is lotsize that is important. The size of the average winner as compared to the average loser is also much more relevant than the stoploss size alone. What if this systems average winning trade is 600 pips? Would a 200 pip stoploss bother you in that case? To look at one statistic from a system and judge it from that one stat is asinine.

Without knowing the details as far as the inner workings of the system or systems you trade, it's hard to give specific pointers. In my evolution as a trader I went thru the same issues. This whole issue boils down to the fact that you are not in alignment with either one or both of tradings cardinal rules. You are either not cutting your losers in a timely fashion, or not letting your profits run, or not doing both of them. One idea that was very detrimental to my own trading was the idea that I would approach the market every day and look to make "X" amount of money per day. While it is comforting for us to think or believe that trading is like other occupations where we can show up for "X" amount of time per week and get paid "X" amount of dollars, the markets just don't work that way. Chasing this dangerous idea can lead to many bad trading habits over time. First off, it can lead to overtrading and big losses on those days when the market just does'nt cooperate with us and give us our "easy" 25 pips a day. So instead of quitting after, let's say two or three losers in a row, we continue trying to chase the 25 pips and end the day with 5 losses which will now take 3 days to make up. Secondly, on the days when the market obliges us with an easy 25 pips, we quickly exit our trade at 25 pips and close up shop for the day while the market continues to run another 100 pips in our direction without us. If you want to survive and prosper as a trader you absolutely MUST be there on those occasions when the markets smile upon us and give us those big winners. Taking a predetermined 25 pips or 5 points per day will not cut it. It's those days when we are handed big profits that allow us to absorb the losing streaks and still come out with profits left over. So my recommendations would be to:

1. Drop profit targets if you are using them. Instead look to ride every winner for all its worth by letting the market not a target tell you when to get out. You NEED those days when the market bestows a big winner that's 2 to 10 times bigger than your initial risk.

2. Use market-based not money-based stops and honor your stops under absolutely any and every circumstance. Always take the very first exit a losing trade allows you.

3. Don't micromanage your trading on a daily basis. This business operates under it's own rules that look nothing like the rules most other jobs conform to. It's unrealistic to expect "X" amount of $ per day. Lengthen your horizons and keep score on a monthly or quarterly basis. If you're trading with a quantifiable edge, you need to turn over enough trades to allow that edge to begin asserting itself. This won't happen on a daily basis.

Good Luck....

I've personally had above average results trading the Brain Trend setups on a daily timeframe (among others). It's a trendfollowing setup that basically mimics the Abletrend system but it much more affordable. I risk 2% of my total account per trade and trade it across the EurUsd, EurJpy, GbpUsd, GbpJpy, UsdJpy, and UsdChf. One must be willing to trade thru drawdowns that generally run in the area of 8% to 10%. You absolutely must not flinch at taking the next signals when in the midst of such a drawdown. However, by doing so I've never yet failed to trade thru the drawdown and reach a new equity high. It is also imperative that you allow the winning trades to keep running as long as possible until the trailing stop is hit. If you are tempted to close out your winners early, you will not be profitable as it is the few very very big winners that put solid profits into your account. I've had 1000+ pip winners using this system. This setup just recently caught the bulk of the bull trend in the EurUsd where I entered at 1.2801 and was finally stopped out at 1.3741. Profits were over 11 times the size of the initial risk. So if you have trouble with letting your profits run, don't trade this system as that is a crucial key to trading it successfully. You can find the system here:

http://indo-investasi.com/showthread.php/704-BrainTrend-Proven-Manual-Trading-System?highlight=brain+trend

First off, give up on the idea that there is such a thing as a "superindicator". None exists. All indicators are derived from manipulating price data in some form or another. That being the case, you are much better off going directly to the source and dealing with price alone with no intermediaries. All profits in trading result from price moving away from your entry price. Up if long, down if short. Therefore, one can only profit if some form of a trend occurs after one enters. The most surefire way of having a clue whether price will continue in your direction AFTER you enter is to see that it is doing so BEFORE you enter. That which is in motion tends to stay in motion. The fact that prices/markets have trending periods remains the single most quantifiable edge available to traders. Most indicator-based traders are not relying on the trend, they are looking to try and profit from reversals in trends. These types of traders are ignoring the edge that trends offer. They are making trading more difficult than it needs to be. Couple some form of trendfollowing with common-sense money management and you will be profitable.

Tmalone is correct in what he says, I am trading those levels with success. I have a indicator called 'Grid indicator' which places all of those levels on the chart. It is excellent, when you see price reach a level and it stalls, you can, in all probability expect a reversal or pullback. If price goes through a level it often stalles at the next one with a bars testing that level before reversal. I have found that when a bar tests a level two or three times or more there is a very good chance of a pullback/reversal.

 

Trying to daytrade without a knowledge of those levels is like trying to drive blind. As soon as I became aware of those levels my profits increased exponentially. I'm not aware of any technical setup that could'nt benefit from using them to confirm or filter entry and exit signals.

I agree Conglo, considering the market is 80% chopping about, I really can't see how these trend following systems work long term.

 

You could'nt possibly be more wrong. But to each his own.

Thank you very much for the share. Does the course comes with a video also?

 

No, there are no videos. Everything in the .rar file is exactly how I got it. Enjoy...

Here you go: http://www.multiupload.com/7KGZMAGSDS

Malone where you stay....?

 

**********************

I'm from the U.S. Wisconsin to be exact.

Hello

I have a question.What is the Best Indicator & System for Entering with Min DD?(Draw Down)

What do you think?

Please share your idea or indicator or also system.

Regards

 

****************

Everyone dreams of straight-line-to-the-north equity curves with little or no drawdowns but its just not a reality of trading. The good news is that it does'nt need to be a reality in order to be a successful trader. I've seen studies from reputable sources that show that most successful traders spend in the neighborhood of 75% of their time in some form of drawdown from an equity peak. So you are only looking at feeling good about your equity curve somewhere around 25% of the time. But do you want to make money or feel good? Making money as a trader involves becoming comfortable with being uncomfortable. Probably not what most of us want to hear, but the sooner we come to grips with this fact, the sooner we can move towards consistent profitablity as traders. To really drive this point home I recommend Michael Covels book "TrendFollowing". It's very enlightening and sobering to see how guys who have been making staggering sums of money for many years now regularly find themselves with drawdowns in the 30% to 40% range. It's the ability to stomach these occurences and still maintain the discipline to execute their systems flawlessly that lead to them inevitably finding their way to new equity highs. It's always best to embrace realities instead of chasing pipe-dreams.

BrainTrend is basically a Metatrader adaptation of the Ablesys indicators. It is a trendfollowing system and if you can follow it with discipline and the basics of smart money management, you will make money. "FollowTrend" is another set of indicators based upon the same principles that are also very effective.

There is not a "one-size-fits-all" answer to this question. "Rich" to me is to be financially free and not have to trade my time and effort in exchange for someone elses money. And financial freedom is defined as having passive sources of income that are greater than ones expenditures. So to define your "Rich" you first need to know how much your present existence costs to maintain. Then you can calculate your current level of savings and passive (or in our case trading profits) income and see exactly where you stand. If your savings and passive sources of income are currently enough to sustain and maintain your current standard of living from now until the end of your life, then you are "Rich". If you want to not only maintain your present standard of living, but INCREASE it then you must be able to INCREASE your saved and passive income.