Don`t read this thread..Make Money with it. - page 13
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Trades Closed:+358 Pips
3 previously posted trades have been closed at a cumulative profit of +358 pips...average profit per trade approximately +119,333 pips
Short EURUSD@1.5824 closed @1.5742...+82 pips
Long GBPCHF@197.55 closed @198.78...+123 pips
Long GBPJPY @199.54 closed @201.07...+153 pips
Please see attached detailed statement..no open trades left.
Regards
Simba
I'm a little confused about your entries with the 2B pattern...I will try and re-read that patterns definition because my entries would be different
2b
I'm a little confused about your entries with the 2B pattern...I will try and re-read that patterns definition because my entries would be different
Hi Rick,glad to have you back here..please explain what causes the confusion,and how would your entries be different.
Quote from the book "Trades are entered to sell the low of the bar trying to breakout or buy the high of the bar trying to breakdown"..This is what I try to do...sometimes entry might differ slightly,due to the fact that I am constantly scanning several Forex pairs plus Gold,Crude,SP500,DAX,FTSE,I might get a setup already in the move,so I can have a slightly worse or slightly better late entry...additionally,there might be "noisy factors" like small or inside bars,that might make me change slightly the entry.
I am very conceptual,so,I extract the concept behind the pattern and that is what I want to see...for me,the concept behind the 2B pattern is "REJECTION OF PENETRATION"..If I see this coupled with digital filters support,I take the entry.
EDIT:I checked the later entries,in case of the EURUSD short,yes,technically the entry should have waited for the breakdown of the low of the h4 bar that broke the high,BUT since the next h4 bar had a very similar low(slightly higher)that had already been penetrated,plus there was a small retracement at the moment I was checking this pair,I advanced the entry and got a better reward to risk...conceptually the rejection of penetration was confirmed (for me) when price broke the low of the 12:00 to 16:00 h4 bar(it was broken at 16:05)..but technically,as per the book,I should have waited for prices to break the low of the 08:00 to 12:00 bar,which is the one that broke the previous highs.
Regards
Simba
Simba, are you trading any of these patterns with your live account?
Can you elaborate on your decision to have mental stops and targets? I saw the post where you said that you are no longer going to set the stops and profits and that seems to be making quite a bit of a difference on the results...so I was wondering if you can go over your stop and target rules again.
Thanks.
Live
Simba, are you trading any of these patterns with your live account?
Can you elaborate on your decision to have mental stops and targets? I saw the post where you said that you are no longer going to set the stops and profits and that seems to be making quite a bit of a difference on the results...so I was wondering if you can go over your stop and target rules again.
Thanks.Yes,I am trading mainly the 2B and MSH/MSL patterns in my live accounts...though this shouldn`t make any difference in your evaluation of these or the other patterns.
After the initial posts,I decided to show the patterns not just according to the book but as I really trade them, mainly in combo with digital filters and using my own stop rules,ie, if I enter on h4 bar,the stop is a close on h4 bar above/below resistance/support..if I enter based on h1 bar..same history but on h1 close...and YES,this does make a difference.
That is why I explain the "book rules" and then add my comments to them.
I don`t have mental stops(reread the post where you think I posted that),I exit if there is a close above /below a key level(so,I usually use Suri`s levels but add the "close" condition),yes this adds a degree of volatility,the close can be far away from the level or just very near it...usually taking 50% of the atr10 for the timeframe used for entry(h4,h1) above/below the level wil give you a fairly accurate estimation of your average risk....and in case the move reverses next bar, I can always reenter ,if I choose to do so, by using a 2B pattern .
Targets...when prices stall at a key or pseudokey(aka fibolevel) level(yesterday`s EURUSD for example),I take profits....When prices,after a very fast move lose acceleration,I take profits or hedge the position...if I see the h4 and the h1 stlm2 going in the direction of my trade,more often than not I will keep the position and add to it(GBPJPY short of past Friday)....but I tend to close profitable positions once prices lose momentum,and I don`t have problems reentering,at a worse price,once momentum takes off again.
To summarize: Of the patterns explained...Dragon,MSH/MSL,5BF,Matching Highs/Lows,3 Hills and a Mountain,2B,Descending triangle...I have found that 2B and MSH/MSL are the ones that complement best my style of trading for entries...though all of them help me in avoiding bad entries(against the pattern),which is equally important.
They are tools ,just tools...you can use a knife as a knife or just add it to a stick and improve on both of them....more meat on the table or not is the only valid rule to judge its usefulness.
On the next post I will explain ,with 6 clear examples, how patterns can improve even the most "sophisticated method"...BTW,I will title it PREDICTION
Regards
Simba
Prediction
Plesse allow me to make 6 predictions....on a Friday and with a G7 meeting on the week end....these predictions don`t have any direct relationship to this thread,besides the fact that they will help me in pointing how the chart patterns will help me in trading them....and please,do not try them at home
They are not a joke,all my propietary digital filters are synchronized towards them,I frankly believe that most if not all of them will happen,and will trade most of them....IF THERE IS A PRICE CHART PATTERN GIVING A CLEAR ENTRY WITH LOW RISK...
For this next week:
AT or BEFORE the 18 April 2008 (next Friday) close...
A-These pairs price will have touched at least ( AT or ABOVE) the signalled price(they are potential longs)
GBPJPY 202.00(around 300 pips higher than actual price)
GBPCHF 2.0000(around 285 pips higher than actual)
USDJPY 102.50(around 150 pips higher than actual)
USDCHF 1.0150(around 150 pips higher than actual)
B-These pairs price will have touched at least ( AT or BELOW) the signalled price(they are potential shorts)
EURUSD 1.5650(around 150 pips lower than actual)
EURGBP 0.7930(around 100 pips lower than actual)
C-So,basically,I expect to be long GBP and USD and short EUR,CHF ,JPY...during the next week...And,no,I don`t know which one is stronger,if GBP or USD..and which one of the 3 weake ones is weaker(probably not EUR)...If I knew I would just focus 50% of the 6 potential trades on the strongest against the weakest
These are some bold predictions to make in a public Forum...Want to know why ?
1-If my digital filters fail,the use of chart patterns to trigger entries will help me in avoiding a disaster,there probably won`t be bad entries triggered,or if they are,they will be very low risk,compared to the reward.
2-If my digital filters succeed,as I mostly expect,the chart patterns will trigger the entries,allowing me to take advantage of very high rewards with relatively low risk.
The proof is in the pudding ,and the pudding is still in the oven..but not for long
Have a nice week end.
Regards
Simba
Simba,
Thank you for your previous post. It clears things up.
The STLM2 indicator you posted: Do you have to change the values of the coefficients you are multiplying closes by every once in a while? Are they suppose to be different for different pairs?
You have not explained how you are using digital filters in conjuncture with price patterns. It seems that you are only trading price patterns without really using digital filters...Could you explain how you are using the two?
Do you mind explaining briefly how your digital filters are more useful than a Jurik MA for example?
Thanks.
Seem
Simba,
Thank you for your previous post. It clears things up.
The STLM2 indicator you posted: Do you have to change the values of the coefficients you are multiplying closes by every once in a while? Are they suppose to be different for different pairs?
You have not explained how you are using digital filters in conjuncture with price patterns. It seems that you are only trading price patterns without really using digital filters...Could you explain how you are using the two?
Do you mind explaining briefly how your digital filters are more useful than a Jurik MA for example?
Thanks.I explained at the beginning of the thread what my aim was and what other technical means I used to trade the patterns with,so,it shouldn`t seem anything else.
You can check the digital filters section where there are extensive comments about digital filters(some of them by me) and stlm2 in particular,and you can check the thread SimbaConMan to see the basis of cycle analisys(Hurst methods)...this will be much better for you than just asking me to summarize it
.
You can use the patterns with whatever you want,Stochastics,Rsi,whatever...Usually I just check for a potential new cycle coming,you can do it just with RSI,if you read the threads I mentioned you will know how to do it,then use the pattern to trigger the entry witha good reward to risk ratio.There are people that trade naked,like Suri,I see no need to do so,since this will require me to forget about something I already use with good results,so I just adapt them to my actual way of trading and improve both..
Regards
Simba
Excellent. Thank you.
Hi Simba,
Excellent trading lesson for me. Thank you very much!
Regards
FC