**Steinitz** Method Revealed Here - page 39
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Well this swing in gbpjpy is a killer with method two. I finally got up about 60 pips and now in a matter of secs I am back down around 50 pips. Once again, after this trade I will be looking for new ways to get out and take some profit, otherwise I cant see how this is possible to withstand.
I have read the system made available by **SteinitzSteinitz** Method Revealed Here. My profession is energy psychotherapy and I'm from Singapore . Indeed many patients of mine have not try this kind of treatment because they were told by the "expert" who provide them using conventional way . They come to me after all the bullshit they get from the expert about their health. I don't blame them because that is what they know. As for me I would not condemn before I truly try the system and see whether the system works or I am not able to follow the system. Actually It is us not them, The problem is us not them. So if you have try this strategy after trying and satisfy that this system has worked for you or not , you have all to choice to make. Don't come back to this forum and try your luck finding the holy grail system elsewhere. It is such a very simple the decision. I have gone thru many paid course and learn trading, I have someone who develope such system using metastock (maybe wrong spelling) they are using 33 time frames from 5 min to weekly. But they also added many things to confirm the entry and you have to pay and pay to dig inside infromation. I decided to stop such nonsense and try and keep looking out for better, simple and easy to understand. If I'm good and make profit, I believe I do not have time here to learn from someone who are willing to give their previous time to help others. I find that these system is the most simple strategy that I have come across. And I have made 7 trade yesterday with all the them win. Eventhough it is only demo, This is the first time I have such a big win and best of all you know why you are entering and exiting the position. If you do not know why,I believe you are guessing or hoping.
Thank you Steinitz . I don't care eventhough it is not originated from you but you make an effort to bring this out to those who most needed it. May God bless you. For those people that knows how to comment negatvely. You will be commented back negatively in your life. And the worst thing is you are not making profit and that's is why you hanging here. If you make a profit who should spend doing something a good deed. This is karma . You do good things the good things come back to you or else....
from Singapore.(a dot in map where the Prime Minister earn 5 times the salary of America's President)Wow!
That is impressive indeed. I love the 33 TF statement. Id say that is a little bit over zealous. Again I want to stress that I too believe that "seek and you shall find". "One door closes and another one opens".
I am glad that you see there is some light at the end of the tunnel. It's a long journey but we are all here trying to find the road to riches. Thanks for your kind statements!
My I ask what method you used? The first one or the scalping method?
TIA
Yeah it's a brutal business. I am holding this since we know this pair is volatile and that is an understatement. I have shown charts why this still looks good to me.
It has peak to troughed about a 100 pips. But I have also gained 150 pips on average from this currency in my statements.
Take a look and see if you think it deserves to be exited?
New Ideas
Well this swing in gbpjpy is a killer with method two. I finally got up about 60 pips and now in a matter of secs I am back down around 50 pips. Once again, after this trade I will be looking for new ways to get out and take some profit, otherwise I cant see how this is possible to withstand.
Same here. I came to the conclusion that without additional filters the potential drawdown of the system as it is, is way more than anyone with real money will be able to stand unless they trade very tiny. I think w/o any stops the system is doomed as it inverts the risk/reward ratio. Taking a few hundred pips heat to make 25 pips avg isn't such a good idea. You HAVE to draw the line in the sand somewhere because there will come a day when the price DOES NOT revert and before you know it all your gains for the month are gone on a single bad trade.
You will be well advised to create an additional filter for entry - and I don't mean another indicator. I mean money/trade mgt. For example AFTER you get a signal put your order in away from the market X pips or wait X # of bars to see if the trend has developed as expected. The bad trades usually go bad right away. We could filter out these by putting orders in X pips from the market when the signal is given - that way if the trade is bad it will not hit this mark. If it is good it will pass through it and keep going.
Also exits need to start being discussed - such as taking half the trade off the table after X pips profit while moving the stop for the other half up to breakeven so that a winner does not revert to a loser. The idea is to cut the risk off a trade ASAP.
The idea in trading is to MAKE MONEY, not to be right all the time.
Anyway, I'm not criticizing Steinitz or the system - only trying to move it forward with improvements to reduce drawdown.
Same here. I came to the conclusion that without additional filters the potential drawdown of the system as it is, is way more than anyone with real money will be able to stand unless they trade very tiny. I think w/o any stops the system is doomed as it inverts the risk/reward ratio. Taking a few hundred pips heat to make 25 pips avg isn't such a good idea. You HAVE to draw the line in the sand somewhere because there will come a day when the price DOES NOT revert and before you know it all your gains for the month are gone on a single bad trade.
You will be well advised to create an additional filter for entry - and I don't mean another indicator. I mean money/trade mgt. For example AFTER you get a signal put your order in away from the market X pips or wait X # of bars to see if the trend has developed as expected. The bad trades usually go bad right away. We could filter out these by putting orders in X pips from the market when the signal is given - that way if the trade is bad it will not hit this mark. If it is good it will pass through it and keep going.
Also exits need to start being discussed - such as taking half the trade off the table after X pips profit while moving the stop for the other half up to breakeven so that a winner does not revert to a loser. The idea is to cut the risk off a trade ASAP.
The idea in trading is to MAKE MONEY, not to be right all the time.
Anyway, I'm not criticizing Steinitz or the system - only trying to move it forward with improvements to reduce drawdown.I know that I said it feels better to be right then wrong but I didn't say that to trade blindly. I still believe that if you divide your total risk threshold by 10 currency pairs the one or two that maybe go south for the winter is NOT going to wipe out all your profits to date.
Right now I have some pretty scary positions as nothing recently has come back to profit with the exception of two trades today that were winners. I am going to stay with whatever I am doing until I cry uncle.
It's always a good idea to trade much less then you would like so you can get used to the swings. Then once you are numb you can move up.
I went long about 30 hrs ago. So ive been up and down. Im just trying out this second strategy. So was that a moving average on your chart? How many periods?
I know that I said it feels better to be right then wrong but I didn't say that to trade blindly. I still believe that if you divide your total risk threshold by 10 currency pairs the one or two maybe that go south for the winter is NOT going to wipe out all your profits to date.
Sorry, I was not aiming that comment at you as I did not see you say that - I was just stating that as a general word of advice to everyone. My thinking is it is probably better to stop out early and then reenter instead of riding a trade down that far as this will cut your risk off totally from the trade that never comes back. I learned this the hard way Steinitz last year in a great Martingale scheme I had concocted. It was never wrong until that fateful day I took a $20k hit which took a couple of months hard work out. I took a month off on other business and when I checked the charts on the trades I would have taken I was horified to see I would have been cleaned out if I had continued to trade that way.
The problem with the logic the way I see it is MOST of those 10 pairs are HIGHLY correlated. That means when things go wrong, its not going to go wrong on just one pair. All the sudden you are going to get hit with a major trend reversal almost instantly on say the USD (or whatever) and you wake up to see you are hundreds of pips negative not just on one pair, but several - or even worse - to a margin call itself.
There are HUGE dangers in "trading not to lose" - that goes for martingaling, gridding, and other mean reversion techniques that employ "letting your losses run and cutting your winners short".
Anyway I'm not bashing you or the system at all. Just putting out some constructive criticism and ideas for everyone to brew over. Just trying to save someone. I learned the hard and expensive way.
My exit strategy was basically as previously described for this method. Again, I have been trading short term as well, so its no big deal to take a hit here, but I am trying to refine the exit strategy. Now I plan to use the weekly pivot points as an exit for partial positions. I will also start looking for changes in shorter term trend to use as exit near a pivot. I use pivots for my short term trading. Can you tell me what indicator was on your earlier chart???
Announcement !!!!!!!!!
I will no longer be posting at Forex Factory as Merlinseems to be a major control freak and takes away at will anyone who he feels is a threat to his website. I brought readers to both forums. That is the logic behind placing links on websites even those links that compete to network readership.
He let me become a moderator and then took it away. He gives me a sub-forum and now takes it away.
He is going to shoot himself in the foot by doing this. I will not be posting on his website. In fact I will re-direct everyone I can find to this forum here.
I wonder if someone else got pissed off with him and brought down his website. Anyway, I will be here until they decide to unplug me. Hopefully this administrator has better sense then Merlin. My guess from what I can tell is yes he does.
This website can host files more efficiently. I was directing everyone over there to see the images over here. I guess he didn't like that.
Sorry for the rant.
Ok I am taking heat on my method. That is good we are debating something useful. Let's keep up the dialogue!
I think most of us recognioze we have something good here for entry, but as with all systems, the key is exit, and we need to isolate some better exit rules.