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craven, once again, THANK YOU for sharing your style of using this indicator. I will study what you have shared and practice this style diligently.

 

You're very welcome, sweetheart! :x

 

Please let us all know how your trading moves along. =)

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My recommendation:

 

I would recommend setting your risk at 2% per trade, Risk:Reward = 1:1, and use the nearest relevant high or low to calculate your SL, TP would be set at equal distance from entry point to SL.

 

You will know before the green signal line is broken where your SL and TP are, so you will know what you are risking before you enter into the trade.

 

*****

 

I use stop orders for the entry setups, it saves me precious time from having to be glued to my screens, win ratio is approximately 70-80% accurate with this plan.

 

I trade it across multiple pairs on M15 + M30 time frames, but I never enter into more than one trade at a time, which means, if I am in a EURUSD trade and a setup comes about on GBPUSD, I will wait for the completion of my active trade before I risk any more money.

 

*****

 

The suggestions for SL and TP from the indicator are fine for the beginning trader, however, the R:R ratio does not work for me. I will not trade anything that has a Risk:Reward ratio of less than 1:1.

 

*****

 

My trading plan:

 

I personally prefer using the Risk:Reward ratio setups @ 1:3, use the nearest relevant high or low to calculate my SL, TP would be set @ 3x distance from entry point to SL.

 

I am used to trading 1:3 setups. I am comfortable with these setups, as the mathematics in play require my winning ratio to be at a mere 25% to break even, WR @ 26%+ and I am in the clear zone.

 

Example of R:R = 1:3, based on a total of 10 trades:

 

25% Winning Ratio

Losers = 7.5 trades x 1R = -7.5R

Winners = 2.5 trades x 3R = +7.5R

BREAK EVEN

 

30% Winning Ratio

Losers = 7 trades x 1R = -7R

Winners = 3 trades x 3R = +9R

+2R IN PROFIT, if 1R = 2%, then 2R = 4% PROFIT

 

40% Winning Ratio

Losers = 6 trades x 1R = -6R

Winners = 4 trades x 3R = +12R

+6R IN PROFIT, if 1R = 2%, then 6R = 12% PROFIT

 

50% Winning Ratio

Losers = 5 trades x 1R = -5R

Winners = 5 trades x 3R = +15R

+10R IN PROFIT, if 1R = 2%, then 10R = 20% PROFIT

 

 

Craven has provided a lesson in risk reward and I think this is lesson number 1 to be learned by all traders who wish to become successful. Great explanation and it deserves much more thanks than it has received thus far.

 

Risking 90 to gain 10 as in these scalper eas and most eas for that matter is absolutely absurd. Id rather try and be right 26% of the time instead of 92%

 

I have been an opponent of this indicator due to its very poor R:R in its calculations. That being said my interest has been renewed now knowing there has been some success using different SL and TP levels than using the ones the indicator is giving out. Craven, are you using the pullback/rally highs and lows as your stop loss? Just above/below them would be my guess. Then you are just multiplying that by the factor you wish to achieve and set your target? It sounds like you are basically using the entry line but ignoring the tp and sl values. Just looking for clarification. thanks

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EURJPY Live Trade Examples

 

Here are two live trading examples.

 

Please note that they are both SELL trades, and I use the numbers on my BID chart. Had it been a BUY TRADE, I would have added my approximate SPREAD in pips to the price shown on the green signal line for entry stop orders.

 

I hope the information helps! =)

 

http://img535.imageshack.us/img535/7297/craventrade.png

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Profit/Loss Projection

 

The first trade netted +6% and change.

If I lose the second trade, I will still be up +4%

 

Winning Ratio @ 50% NETs +4%

 

On the other hand, if my second trade is a winner as well, I will net +12% on the balance of these two trades.

 

Winning Ratio @ 100% NETs +12%

 

Now, if I lost both first and second trades, I would be -4% on account.

 

Winning Ratio @ 0% NETs -4%

 

Does that sounds right to you?

If I win one trade and I lose one trade, I can earn +4%?!

If I win both trades, I earn +12%?!

If I lose both trades, I lose -4%?

 

This is the power of mathematics at play.

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I have been an opponent of this indicator due to its very poor R:R in its calculations. That being said my interest has been renewed now knowing there has been some success using different SL and TP levels than using the ones the indicator is giving out. Craven, are you using the pullback/rally highs and lows as your stop loss? Just above/below them would be my guess. Then you are just multiplying that by the factor you wish to achieve and set your target? It sounds like you are basically using the entry line but ignoring the tp and sl values. Just looking for clarification. thanks

 

You are right on the money, sweetie! :x

 

I couldn't have explained it better myself!! =)

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Update

 

TP hit on second trade @ 110.86 just now, +6% earnings.

 

That's puts me at +12% for these two trades, a total of +24% and change for this week.

 

I think I will take tomorrow off from trading! =)

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RUBICONINDICATOR.COM

 

This past week, I generated a 20%+ return using this indicator, 24%+ return the previous week....

Hey craven, I never knew you were back. I'm very pleased to see you posting again after a long time. Thanks for this quality share which looks very interesting. Going to test it straightaway. All the best :)
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The first trade netted +6% and change.

If I lose the second trade, I will still be up +4%

 

Winning Ratio @ 50% NETs +4%

 

On the other hand, if my second trade is a winner as well, I will net +12% on the balance of these two trades.

 

Winning Ratio @ 100% NETs +12%

 

Now, if I lost both first and second trades, I would be -4% on account.

 

Winning Ratio @ 0% NETs -4%

 

Does that sounds right to you?

If I win one trade and I lose one trade, I can earn +4%?!

If I win both trades, I earn +12%?!

If I lose both trades, I lose -4%?

 

This is the power of mathematics at play.

 

Craven.....what TIMEFRAME are you using in your examples for eur/jpy trades (#53) and do you find yourself using a particular timeframe in other trades? Thanks...great job!

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Craven.....what TIMEFRAME are you using in your examples for eur/jpy trades (#53) and do you find yourself using a particular timeframe in other trades? Thanks...great job!

 

Rick, no offense to you but, your question does not make any sense at all. You mentioned post #53 but you must not have read it. It's right there in her sample chart. 15 minute chart, If you cant see it, copy the image to your computer and use image viewer, that way you can zoom in and see all the small lettering.

If you go back, and read from post #1 you'll see that craven has explained in full detail, how she use this indicator.

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Rick, no offense to you but, your question does not make any sense at all. You mentioned post #53 but you must not have read it. It's right there in her sample chart. 15 minute chart, If you cant see it, copy the image to your computer and use image viewer, that way you can zoom in and see all the small lettering.

If you go back, and read from post #1 you'll see that craven has explained in full detail, how she use this indicator.

 

Couldn't make out the "15 Min" on the chart...however, I would still like to know if that's an isolated incident or if she is using other timeframes....the youtube video discloses that they recommend 30 min...just would like to get Craven's take on it....

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I got mine emailed to me today......Here are the differences between the two..

 

Version 2.0 Upgrades Include:

Enhanced Currency Pair Audio Alerts: Added to the original alerts "Buy Signal Occurred" and "Sell Signal Occurred" are the Currency Pair names for the six major pairs - AUDUSD, EURUSD, GBPUSD, USDCAD, USDCHF, and USDJPY. If you trade a pair outside of these six you will hear the original Audio Alert.

 

Additional Time Audio Alerts: In addition to the Currency Pair alert you will receive an alert if you are trading on a 5 min, 15 min, 30 min, or 1 hour chart.

 

Size Edits: You can change the size of the trade alert arrow, profit target label, and stop loss label.

 

Color Edits: You can change the color of the spine, and both railroad track indicator lines.

 

Enhanced Security: Each indicator download will include a one time activation key to enhance the security of the indicator and not allow free transfers and downloads of the indicator.

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