Forex for Dummies

[Stormin_Norman]

then i started using two simple indicators (MA+stochastic) which worked for me and developed a plan with 2 rules for entry and 1 rule for exit.

i look for the trend. in this case it was up. so im looking to buy in the dips. the stochastic indicates when the market is oversold. when its moving out of oversold and clears the 20 mark on a closed candle i enter.

 

[BentRod]

once i thought it would work, i funded my third $1000 account. from that initial account im now up to $350k in working capital in about 18 months.

Great achievement Norm!

Is that Pro Realtime your using???

How do you find it?

 

[Stormin_Norman]

yeah it is.

its ok. a chart's a chart.

 

[lesm]

Ummm, you have a chart of an indicator and an oscillator but no graphic example of a trading system.

He actually does. It is quite simple to translate. Look at the oscillator and where the green and red vertical lines are.

Working out the exits is straightforward You can actually remove the MA from the chart it's just a form of a reference point and provides a visual on the overall trend.

Good systems are usually simple systems, no need for complexity.

 

[Cartman]

Ummm, you have a chart of an indicator and an oscillator but no graphic example of a trading system.

hey Wys Norm has no reason to tell us his exact entry/exit criteria ---- but the chart pretty much tells us anyway ---

Norm, definitely chasing similar patterns to u -- have u tested trading the counter trends on a lower time frame- --
part of the same chart below --- i would have taken a short term short on the failed spike with the dropping momentum before looking for another long --- testing on this so far is proving pretty good ---- RR is obviously not as good but i would just keep the current long position open and trade the short on the counter ---- then close the short ---- just a slightly different attack.

 

[Stormin_Norman]

too complicated for me cartman. although i do follow your logic.

i entered on the hour and got hit by that short you mentioned seeing on the 1 second chart.

just waiting for my SL to get hit now

 

[lesm]

nice! im working with a programmer to put together a auto trader too.

i expect this simple system to work across all markets as well. from currency, to commodities to stocks.

It can be applied aross multiple markets, just need to manage the false or failed signals that may occur, which is straightforward.

 

[Cartman]

too complicated for me cartman. although i do follow your logic.

no ones ever called me logical b4 lol -- is that an insult

u have no need to test any further if u have a working system anyway ---- so well done.

 

[Stormin_Norman]

yeah, i was mentioning my efforts, but i believe yours would too.

false signals are sorted by the stop loss. cant be right all the time.

 

[Cartman]

just waiting for my SL to get hit now

actually that 1st chart was from part of your trade yesterday ---

but the one that hit the AUS just now was very similar (gotta love patterns) -- only more aggressive ---

my logicality might be useful as an exit strategy for yr longs if nothing else

 

[Stormin_Norman]

dont mess with my head (system) cartman. just let me take my loss :

 

[Cartman]

dont mess with my head (system) cartman. just let me take my loss :

haha -- sorry

its bouncing back now-- dont ya hate that --- still reckon it looks a little strained in the short term though

 

[CanOz]

There are heaps of tradable systems around. Theres another called the three ducks system, from this guy called Captain Currency, and its on his blog. I have a link http://captaincurrency.blogspot.com/2007/11/3-ducks-trading-system-ebook.html

Its pretty simple, but that said i haven't tried it yet.

Cheers,


CanOz

 

[Glen48]

For those of you who say news items spike the markets:
From Money Morning:
In their recent paper titled Stock price jumps: news and volume play a minor role, physicists Armand Joulin, Augustin Lefevre, Daniel Grunberg and Jean-Philippe Bouchaud found no correlation between news items and the responses of stocks. They analysed the news feeds from both Dow Jones and Reuters (the major sources of information for financial analysts and journalists) and examined the correlation between hundreds of instruments and some 90,000 news items over a two-year period.

Their conclusion was there was no link between jumps in instrument pricing and news items. Most changes were not directly attributable to any news item at all and the majority of news items caused no change in instrument pricing at all.

comments please?
I thought Gold would go up not down after the Gaza fighting.

 

[Stormin_Norman]

stocks arent currencies.

gold is down for technical and deflationary reasons.

 

[Cartman]

For those of you who say news items spike the markets:
From Money Morning:
In their recent paper titled Stock price jumps: news and volume play a minor role, physicists Armand Joulin, Augustin Lefevre, Daniel Grunberg and Jean-Philippe Bouchaud found no correlation between news items and the responses of stocks. They analysed the news feeds from both Dow Jones and Reuters (the major sources of information for financial analysts and journalists) and examined the correlation between hundreds of instruments and some 90,000 news items over a two-year period.

Their conclusion was there was no link between jumps in instrument pricing and news items. Most changes were not directly attributable to any news item at all and the majority of news items caused no change in instrument pricing at all.

comments please?
I thought Gold would go up not down after the Gaza fighting.

Glen -- u gotta give up smoking ---- it'll stunt yr growth

my humble grain of salt opinion on news ---- whatever you think the news should do to a currency and even index --- trade the opposite ---- but only for about 60 seconds after the news hits -- then get out quick --- that'll work 50% of the time

 

[Stormin_Norman]

Glen -- u gotta give up smoking ---- it'll stunt yr growth

my humble grain of salt opinion on news ---- whatever you think the news should do to a currency and even index --- trade the opposite ---- but only for about 60 seconds after the news hits -- then get out quick --- that'll work 50% of the time

all my money on black please.

 

[BentRod]

Their conclusion was there was no link between jumps in instrument pricing and news items. Most changes were not directly attributable to any news item at all and the majority of news items caused no change in instrument pricing at all.

They should trade the NFP this Friday :

 

[Cartman]

all my money on black please.

lol ----- my tongue was firmly in my cheek Norm

interesting position on the AUS/USD now ---- should theoretically have another crack at the last short term high but could be getting a little top heavy (short term)

 

[Stormin_Norman]

i know you did. hence my comment on having all my money on black its probably a better chance actually then trading the news.

often post and pre news will create a nice trend, but the crazy jumping all over the shop during news isnt for me.

my stop loss is just below 71. had a lucky life on that bounce. be interesting to see where it ends up.