Join the Dots. - page 8
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
For what it is worth, attached is a picture of the results of the buy/sell GBP/USD at 8:00pm eastern time for the 2007 period.
1 lot traded with 100K account. Gained $12,746 but had a 62.89% drawdown. Not sure I could watch a 10K account into that kind of drawdown much less a 100K account.
Just followed the original guidelines, no stop loss, 10 pip take profit.
saintmo
Mp -- Mind Slippage !
Humanity was given a brain (or so we are told) for reasoning, education and survival and it is so very interesting to watch how it can be abused !
fat, dumb and happy, I waited for the midnite reversal because - - - well . . . . there should be one !
sitting wedged into my keyboard, at the F1 thru F4 slot is one of the oldest "realities" of trading that I remember, which reads "DAY 1 -- Buy Dip, Dont Flip !"
translation is --- on DAY ONE of a move, the momentum of the move is such that its trend will remain in force and you shouldnt expect the normal reversal patterns till the following day ! Well, last nite I sleepily looked at what was happening, how the ziggy was moving down, even though its little light bulb had long ago gone off, AND MY MIND, sharply tuned to EVERY nuance of the markets movements (LOL), simply forgot that little rhymn.
Now I did have a few shorts in place, because the downside direction on GU was obvious (as stated by the boss and myself) and so I left some out there for following the Daily chart but placed my tp point at 67, which was hit overnite (thats 1.9467 in my language !")
woke up well covered by the price but without any short positions left and immediately jumped on a few more shorts, whipping myself with the "cat o nine tails" which was my ex wifes gift (guess we got some idea of how long the marriage would last when that was received !)
my little ryhmn from many a year ago shall now occupy a prominant place on my center monitor, just so i can forget something else !
if GU holds to its normal activities, there should be two more down days (although these SHOULD have the normal reversals !)
enjoy and trade well
mp
RED&Blue dots move with the zigzag
I have no idea how you make money with this strategy - the RED and BLUE DOTS continually shift/repaint when the zigzag extends itself.
Of course, looking back in hindsight they look perfect.
Load up a 1 minute chart and just watch them move. On a 4hr the pips movement could kill you.
Is there something you are not revealing in terms of when to trade when the dots appear?
Don't get me wrong, I am keen to understand if I have missed something. Or maybe you martingale/average into positions?
For what it is worth, attached is a picture of the results of the buy/sell GBP/USD at 8:00pm eastern time for the 2007 period.
1 lot traded with 100K account. Gained $12,746 but had a 62.89% drawdown. Not sure I could watch a 10K account into that kind of drawdown much less a 100K account.
Just followed the original guidelines, no stop loss, 10 pip take profit.
saintmoI'm sure my better half have no issues with that [killed so many Standard accounts already]...
Toccata
Taken from Post 1:
Long Trades
When Mega Trend and Trend Histo are both blue, trade any Red dot that appears as soon as the dot appears, do not wait for the end of the candle.
Short Trades
When Mega Trend and Trend Histo are both Red, trade any Blue dot that appears as soon as the dot appears, do not wait for the end of the candle.
SL is usually 21 or 34, but I vary this depending on my perception of trend strength.
If you flip back and forth between charts, timeframes or refresh, they will change...
I'm afraid the DOTS change position without flipping charts. See example of a 1 minute I have just been watching. I just use a 1min to get a feel for the indicators.
For what it is worth, attached is a picture of the results of the buy/sell GBP/USD at 8:00pm eastern time for the 2007 period.
1 lot traded with 100K account. Gained $12,746 but had a 62.89% drawdown. Not sure I could watch a 10K account into that kind of drawdown much less a 100K account.
Just followed the original guidelines, no stop loss, 10 pip take profit.
saintmo=====================================================
hey saintmo
Im not one for backtesting, as Ive seen way too many good tests for bad systems and bad tests for good systems, so i pretty much stay away from it, although your results are interesting !
on this trade, i have repeatedly spoken of the drawdowns which is of course the reason for NO stoploss (or you would definitely be a loser) but being the type of trade it is, AND knowing the cycles of GU, I simply do it and thats pretty much it !
have also repeatedly stated that one can simply allow the drawdowns as part of doing the trade (they dont happen that often, but they do happen of course !) OR take a counter trade on the same currency or a counter moving currency, which will then keep your margin stable and your fears lower !
I personally dont think its any different than working off of the daily chart (or weekly, which is even better), as you will make a very nice profit IN THE END, but ANY longer term hold will produce deeper drawdowns --- its just part of trading. The shorter the trade, the less the drawdowns, and the opposite --- its how it works by golly !
if you have proven it always works, then of what import are the drawdowns in reality ? Its only a third rate trade, bringing decent beer money, and for that beer money you get some drawdowns --- I simply cannot understand any problem --- honest !
for instance, the trade is not doing well today on the long side for obvious reasons, but Im also short long term, intermediate and scalping, so holding a trade i know will come back is of no concern to me because I KNOW it will come back, and in the meantime Im still trading and doing nicely with the trend !
BUT what I do think is I will move my entry point BACK an hour or so (to 7pm, est) just to give the upside move a bit more headroom
enjoy and trade well
what I am waiting for is to see if GU will drop below resist at 60 before the morning reversal at 10:30 am, est
mp
Yes, the zigzag indicator repaints. If it didn't we would all be zillionaires. The system is based on the fact that you are trading retracements within the larger trend. With proper money management, you can make money with this system.
Yes, the zigzag indicator repaints. If it didn't we would all be zillionaires. The system is based on the fact that you are trading retracements within the larger trend. With proper money management, you can make money with this system.
Thanks Hoss, 110% correct.
Toccata
I'm happy for you to watch M1 charts and thank you for the observations, but have a look at the original guidelines and recommendations and try to stay within them please.
Even if all three of those had repainted, they still followed the trend, which means that all three trades made money, even on M1.
I still have no idea why people are so worried about repainting with this strategy?
Point is folks, in the example that Toccata has showed we actually made more money that if we had only made one trade? Just do not be greedy with your first close, keep it relatively tight and let the balance trail.
Obviously this strategy will kill you on M1.
Hence my original recommendation of H4, where repainting is a bonus most of the time.
Can we give the repainting issue a break now please?
Trade the strategy with my rules and watch what it does.If you want to trade it on a time frame shorter than H4, or change my rules, please feel free to do so, but then start a new thread and call the strategy something else!
Suddenly I remember why I moved to private forums and stopped sharing my strategies some three years ago. :-( Oh well, we all learn from our mistakes.
Thanks
Wayne
as I see it, using the one minute, profit would certainly have been made, although on that timeframe, all the computations might not update fast enough --- trading the 5 minute would change that a bunch and trading higher timeframes would certainly change whats happening.
obviously not a "scalpers" strategy, it still produces profit at the lower timeframes, so that aint bad at all ! (kind a nice to know your marathoner can also sprint, when need be !)
also, while you were trading the one minute, WHEN did the new dot appear ? Did it appear before you took profit on the original dot, or did it tell you that resistance had moved, and now take profit UP there ?
curious, as i dont scalp with the system, but use it for longer timeframes !
mp