PBar Trading method
ALL YOU NEED TO KNOW ABOUT TRADING
* Price either goes up or down.
* No one knows what will happen next.
* Keep losses small and let winners run.
* POSITION SIZE = RISK / STOP LOSS
* The reason you entered has no bearing on the outcome of your trade.
* You can control the size of your loss (skill) but you can't control the size of your win (luck).
* You need to know when to pick up your chips and cash them in.
Expectancy = (Probability of Win * Average Win) - (Probability of Loss * Average Loss)
You can not control the probabilities of wining or losing.
You can not control your average win size.
The only part of the equation of the equation that you can control is your average loss size.
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I do not see how you can call this a "simple system". It is chock full of lagging indicators. If these types of "simple systems" with lagging squiggly line indicators actually worked do you think 95% of traders would lose?
Furthermore, a stop loss of more than 10 pips is akin to getting on the wrong bus and failing to get off at the first stop. You know the bus is going in the opposite direction so what sane reason would you have to stay on it longer than necessary?
DO NOT BE FOOLED OR ELSE THE RAT WILL BEAT YOU!
Here is an example of a SIMPLE SYSTEM:
1) price within 20 pips of the daily low - that is OPPORTUNITY
2) red candle closes
3) green candle closes - note the high price of the green candle.
4) enter long at the green candle's high price
5) STOP LOSS IS 10 PIPS
6) Take whatever profit you can.
This method works because:
- price usually retraces more than 20 pips from the daily low,
- you only trade in one direction (long),
- the stop loss is small ( 10 pips ),
- sooner or later you are in the start of a move that may run hundreds of pips.
NOTE: YOU DO NOT NEED ANY INDICATORS TO TRADE THIS SYSTEM.
"The technique is so simple that just several lessons (or a few pages of explanations) cover it all. Now what? Now the student has to practice, practice and practice again to understand what he had been taught. The teacher DOES know much more than the student, but his understanding can't be "passed", "transferred" or taught in any way -- not even by reading books."
Excellent write up bro TRO , I've been following your thought all this while this thread is the best to hear from you , at least to earase some skeptical from the people who thought you r liar or to gain something.
KEEP IT UP BRO TRO
mrom:
I am glad you liked it.
What would I lie about?
What would I try to be gaining?
The skeptics are bitter losers. They can't trade profitably nor code. Their only claim to fame is when they can successfully trash the work of others.
If one was a profitable trader they would have no reason to flame or insult. Instead they would be enjoying their profits in places like Cabo San Lucas, Mexico on a regularly recurring basis.
1) price within 20 pips of the daily low - that is OPPORTUNITY 2) red candle closes 3) green candle closes - note the high price of the green candle. 4) enter long at the green candle's high price 5) STOP LOSS IS 10 PIPS 6) Take whatever profit you can.
Thank you for sharing this strategy. I am trying to follow your numbering but am not understanding clearly. Would it be possible for you to explain the chart again. There are numbers on your charts. Should I be looking at those numbers or are you counting the last 3 candles. Thank you.
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We continue in our series of presenting short, easy and simple trading strategies to trade the forex market. We are presenting only the strategies which seems to be feasible and can be a potential money maker if fed with the right trader and the right market situation. The system we are presenting today is called the PBar trading system which was developped on some other forum. The method is free and open to improvement. In this method, we are going to use 3 indicators which should be set on the chart as follows:
1. Stochastics (3,2,2) on Close/Close
2. ADX set to 1 - We make only the -DI visible and mask the other lines by choosing same background color for them or by setting their color to none. We also set a limit level of 16 on the ADX.
3. RSI (2) on Weighted Close with a limit level at 50
You can set your charts manually or you can download the template at the bottom and apply it to any of your charts instantly, thus saving you the effort to set the charts manually. After your charts are setup, it will be looking as the screenshot below.
As we can see, there are 3 different indicators in this trading strategy and we are going to use each of them for a specific purpose. The RSI will be used to determine the short mini trends which are developing and should be the first on our observation list. The second one is the ADX indicator and this one will be used to determine our buy and sell entry indicator... And the last one will be used for the exit as you might have already guessed.
When to Buy?
We are going to buy the currency when the following rules has been met.
1. The RSI(2) should be above the 50 line, hence showing a bullish bias of the market
2. ADX(1) should drop below the 16 line, hence showing an oversold region
These are real simple rules and you should follow them closely. Once both of them happens, you just stop thinking and open a long position immediately.
When to Sell?
We are going to sell the currency when the following rules has been met.
1. The RSI(2) should be below the 50 line, hence showing a bearish bias of the market
2. ADX(1) should move above the 16 line, hence showing an overbought region
These are real simple rules and you should follow them closely. Once both of them happens, you just stop thinking and open a short position immediately.
Where to place the stoploss?
We should never be trading without stoplosses... however, if you are in front of the pc and monitoring your trades, you can trade without the stop loss and watch your positions closely. The Stoploss for this method can range from 50pips to 90pips depending on the pair we are working with. The pair with low volatility like the eurchf will use a smaller stoploss versus a high volatility pair such as the gbpjpy. You can use fixed stoploss as above or you can place your stoploss at recent swing highs or swing lows. Or even place stop loss at the lowest for the 3 recent bars before your current one for the buy position and at the highest of the 3 recent bars before your current bar for the sell position.
When to close the positions?
You are going to close your positions when you have a cross of the stochastics indicator. We close the buy when the Stochastics is at the top and crossed with the dotted signal line and start moving down and we are closing the short position when the stochastics is at the bottom and crossed with the signal dotted line and starting to go up. You can come up with different methods as well to close your positions.
This is a very simple and easy system that anyone can learn to apply and master. Make sure you read and have lots of practice on the demo account before you decide to use it in the real markets. Good luck and all the best.