Strategies, Systems & Indicators

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Tavnaz

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Taz,

My answers in bold.

few queries for u.

why did u draw a trendline from low of June to high of Oct? (trendlines are supposed to drawn from high to high and from low to low)

Just before the high there were some bar lows in the form of consolidation.
In 1 hourly chart you could see defined lows so i drew TL from low low,not high low.

price hit 1.2168 twice and retraced. is it because the support became a resistance now?

Great question,very simple answer support if broken becomes resistance and resistance to support.
If this flip mentality is there that area is yummy yum great.


between high of early Oct (1.2168) to low of mid Oct (1.8832) price made a channel. so do u suggest going long once price hit the low in mid Oct for a profit target of about 90% of the early Oct resistance (1.2168)?


Well at that time dominant trend was down,so it would be countertrend to take long,but if good confluence i will throw my cash for sure.


how many pips do u consider for a support or resistance breakout?

Say breakout of bar highs and lows above/below round number so buffer would be 18 pips on daily TF ie entry at 18-19 pips above RN.
More volatile pairs should have bigger buffers.
In some cases there is no Roundy so i would just place my order 5 pips above or below nearest Resistance level or Support level,this will ensure that if price can break a good barrier.

Thanks,
Sanjoy

P.S.: I thought I just had one query but ended up asking four ;)
No problem SJ ,your buddy tavnaz is here anytime.
 
Hey guys....Really nice to see all of you. Sorry for leaving the strategy in another thread...Just now finished reading all of the posts.....

Nice to hear that you started seminars in india.....I think i m going to invest some time in this forum........

Nice :)
 

4xpipcounter

Well-Known Member
Successful traders never sell their systems, because they don't need to. Why would they want to? Their trading system makes them all the money they need.

People that do sell systems do not know how to trade, but they are excellent sales people. They package something together that looks like it could be a real winner, they know how to make it palatable, put it on the market, and they make some money off it.

The proof is in the pudding. Would someone please tell me of a system they bought at least a year ago, and is consistently making money with it? That can also be said for any automated or black box system.

i dont know why those people try to sell a profitable system?
why they dont keep it for theme shelf?
 
Agreed...If the System is so powerful and generates consistent profit, the person who made the system will always Trade on it rather than selling it / sharing it on Forums. But the one who makes such system has got some hidden truth / fact about the system that only he knows, because of which he might be afraid to use it. The system might generate good result for a short span but can fail miserably in the long term. Those who use such systems must be careful and use their own prudence too.
 

4xpipcounter

Well-Known Member
A "system" can be defined many ways. If a system is an automated or black box system, it is doomed for failure. These are the type the losers sell to traders. The traders buy them in hopes of getting rich without doing any work.
Another type of "system" would be a personal trading methodology. That is the type I mentioned earlier that no one will want to sell, because it is making the trader lots of money. That is also what is meant by a "personal" trading methodology.
Here's a nice twist. Even if the successful trader was to sell his methodology, no one can really replicate the results. That's because when someone else tries to trade that exact methodology, it is no longer personal.
Another nugget. All methodologies are made up of bits and pieces of something or someone else. There is no origination, yet it is still all highly personal. As an example, I trade using the ichimoku cloud, which is a very personal way in the way I use it. Yet, I was taught by someone else how to use it.
I also have a proprietary set of S&R's that has come from my proprietary formula. Yet, that idea came upon talking and chatting with another trader.
This is why I think it is necessary to keep a network of friends and traders. There is no telling when some idea might hit, and it turns into a goldmine.


Agreed...If the System is so powerful and generates consistent profit, the person who made the system will always Trade on it rather than selling it / sharing it on Forums. But the one who makes such system has got some hidden truth / fact about the system that only he knows, because of which he might be afraid to use it. The system might generate good result for a short span but can fail miserably in the long term. Those who use such systems must be careful and use their own prudence too.
 
Well Nice and pretty mature thought there. But I personally believe that a System is made with a set of predefined and exact rules comprising of Entry / Exit Rules, Position Sizing, Timing to Trades, Stop Loss / Profit Target. If the system doesn't have anyone of these, the Trader is bound to fail. The System discussed here doesn't deal with Exit properly. There are many ways of exit and the system leaves open all possible options to the trader which I feel will make trader very emotional and nervous. Also If he relies on A type of exit and doesn't score well he'll shift to B type of exit and will keep on changing his exit styles which will only ruin his Equity curve. And the worst part is, he still will believe that the system is great and the reason why trader fails is because of his early or late exit. Any System that says Book Profit at will depending on your appetite is not a system in my view. Its a very immature view of market. EXIT is the most Important part of a system but sadly the most neglected.se
 

4xpipcounter

Well-Known Member
I agree with you 99%--lol.
IMO, and this is the 1% I disagree with you, I think exit is just as important as entry, and that is just as important as margining.

Nice points inasmuch that I believe the totality of everything you mentioned really deals with consistency, which is the mental part of trading. I think all good traders may have differing viewpoints to a degree, but it has always been my belief that as long as you are winning over the long haul, that is what counts.

I know yesterday, I took a trade short out that I had on the EUR/GBP. I rode it down from .8634. I was looking at .8350 to be hit from that point, but I took it out at .8410. As it turns out, it made it to .8298.I still have no regrets. Most people would not mind 224 pips on one trade in 3 days. The trade was a case where the entry was excellent, the exit was not the best, but still no regrets for taking out when I did.

There was another case I entered the USD/CAD this past week. I had an imperfect entry, even though I knew it was going to head further south before the week was out. It back against me about 50 pips, then shot down to .9898, which was the exact point I took the trade out. That was an imperfect entry, perfect exit, but still netted nice pip just like the EUR/GBP trade did.

The EUR/GBP example would probably fit your view of an "immature view of the market", but I still booked a nice profit, while freeing up space for a new trade.


Well Nice and pretty mature thought there. But I personally believe that a System is made with a set of predefined and exact rules comprising of Entry / Exit Rules, Position Sizing, Timing to Trades, Stop Loss / Profit Target. If the system doesn't have anyone of these, the Trader is bound to fail. The System discussed here doesn't deal with Exit properly. There are many ways of exit and the system leaves open all possible options to the trader which I feel will make trader very emotional and nervous. Also If he relies on A type of exit and doesn't score well he'll shift to B type of exit and will keep on changing his exit styles which will only ruin his Equity curve. And the worst part is, he still will believe that the system is great and the reason why trader fails is because of his early or late exit. Any System that says Book Profit at will depending on your appetite is not a system in my view. Its a very immature view of market. EXIT is the most Important part of a system but sadly the most neglected.se
 
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