Forex Trading based on Masterforex-V Approach - use the advantage of Present

[B]Greetings,[/B]

After a long time of doubting, I decided to create my own thread where I will be sharing my trading views and approach.

[B]A small introduction first. Please read until the end before you start judge me [/B] :slight_smile:

As you can see from the title of thread - it will be [B]about my trading based[/B] on Masterforex-V approach. Please do not think that I’m trying to advertise Masterforex-V, [B]it is more about me and how I use it[/B] in my day by day trading than about Masterforex-V itself.

So it happened that 7 years ago I was “born as a trader inside the walls of Masterforex-V” and I’m really glad that my “traders-journey” happened the way it happened. I’ve been through a lots of trial, read dozens of different books, analyzed many different market trading styles, tried, applied and rejected many of different trading systems. And each time when I was finding something new that worked for me – I realized, that it comes back to same “intersection points” just from a different perspective. There are no “secrets” that can be available “only for immortals”. It is all about finding a way to explain to yourself – what is happening right now, and how can I use this situation.

This short video illustrates it very precisely - [B]Illusion of Control[/B] (start looking from 0.18 sec):

[B]“Present” [/B]

Everything that I know about trading, everything that I use in my trading – is “soaked” with Masterforex-V philosophy. This is the only “easy” language that helps me to describe the present.

In my opinion - Present - is the biggest treasure that we have. Especially when it comes to Forex trading. Understanding what is actually happening right now (on any TF) – is the best knowledge that a trader can have:

[B]So please:[/B]
– professional traders and all other members of babypips community - don’t “mark me” as a Masterforex-V “promoter”, I’m the same trader as you are - trying to make new friends.
– Moderators of babypips, please don’t “ban” me only because of mentioning Masterforex-V name to often. Please try to look in deeper, you will realize that It is just the language I learned in my “traders-childhood”. I just can’t help it :). Same as somebody’s dialog may by completely “soaked” with Price action terminology.

I hope to become your “friend with special views :slight_smile: “

[B]What is it in this thread for me? [/B]

One could ask: Why do I need to “waste” my time by sharing my thoughts with babypips community?

Well – the main reason is: “two brains are better than one”. I’m still trying to do my trading even better. I’m still looking for ways to improve my trading, make it more efficient than it is.
I hope that members of babypips community can help me with that.
On the other hand: I feel a responsibility to share with other traders, that there is a different-kind of trading approach (I mean Masterforex-V approach). It changed my understanding of trading dramatically. If it helped me to become a profitable trader - it might help you as well.

I will be glad for any comments as long as you keep them respectful.

  • If you have an advice or an Idea for me – THANK YOU in Advance, please post it here.
  • If you feel the need to give me a criticism – please do, but keep it an “constructive criticism” (“constructive” means: straight after a criticism you give your own suggestion how to solve the problem)
  • If you have a question – do not hesitate to ask. I will do my best to answer it.
  • If you would like to share some “actual” or “hot” trading ideas in this topic – PLEASE DO!

[B]My “trading style”: [/B]

It would be hard to explain it everything using couple of sentences, I need to write a whole book to describe it :22:, but let’s try.

I consider myself a “day-trader”.

Before any trade I do my market-analysis based on Masterforex-V approach. And “wrap it” in to “three pillars” (more about it here: http://forums.babypips.com/newbie-island/69467-what-should-i-do-next-2.html#post665495 )

I’m working mostly with[B] Eur/Usd and Gbp/Usd pairs[/B] (sometimes I use Eur/Gbp as a “strength indicator”)

So:

  1. Before start of each week – I do the long- and mid-term research (starting from h1 up to MN ). That gives me a “strategical direction” for the week.

  2. Each morning before or shortly after “London opens” - I create a trading plan for the day which includes 2-3 possible tactical market “moves” that I think could happen that day (here I use m5 up to m30 time frames). My main goal here is to “catch” a trend that will happen that day.

  3. Based on strategic and tactical plans I then look for a signal or pattern (usually FZR m1 as a trigger) to open a trade-position in accordance to my MM and RM (or RR) rules.

[B]Couple words about MM and RM:[/B]

  1. I believe, that the [B]main goal[/B] for any trader is: to [B]stay above “the new zero”[/B]
  2. I believe, that for a successful trader – constant profit is nothing more than [B]A SIDE-EFFECT[/B] that comes from “staying above zero”
  3. My rule is to search for trading opportunities with a potential movement of minimum 1:5-6 RR.
  4. Usually I don’t hold the position until next day regardless the RR at that moment
  5. I have created for myself couple of strict “timing” rules for opening a trade (maybe I will get more in to it later)
  6. Sometimes I divide my position to two/three different “pieces”. You can read more about it here: http://forums.babypips.com/newbie-island/69859-am-i-booking-profit-too-early.html#post665460(as [B]eddieb [/B]said - “a nice problem to have :D” ). In this case 2nd or 3rd part of my trade can stay for more than couple of days or even weeks (depends on situation).

It is worth to mention separately about [B]Fundamental Analysis:[/B]

Based on Masterforex-V approach and my experience I believe, that everything is prepared (from “technical” perspective) “long time” before some important news come out and that big price-jump happens. Therefore I use “important news” only as a “trigger”, as a “new energy”, “new impulse” that gives the “sleepy” markets some new energy.

In my practical trading it means: I don’t care what are the news (good or bad) as long as I know when they are released. If I don’t have any open trades that day - then I act more carefully just before news.

[B]Estimated Structure of this thread and “my activity in it”:[/B]

  1. Each weekend (near to Sunday evening “GMT-0” time) I will be posting my views for upcoming week. This will be my “strategic direction”. Usually it does not change during the week. Masterforex-V Technical Analysis helps me to understand exactly in what phase is the market at the moment (trend up, trend down or flat). And where are the “critical points” for that phase to change.

  2. Each morning I will post my tactical plan for the day. Usually it contains 2-3 “possible market steps/moves” that I will try to “hunt”.

  3. If I will manage to open a trade – I will post a picture with info: how, when, what signal … etc

[B]Couple of additional remarks:[/B]

  • I’m not a robot :slight_smile: – So obviously sometimes I will take 1-2 weeks break (not posting here)
  • In my real (non-virtual) live I’m a quite active guy, constantly getting involved in different useful and useless activities. So please don’t judge me if sometimes I will post my results not straight away but couple of hours later or for exmpl. after the trading session ends.
  • I don’t have ability to read others people minds only by looking at their nickname, so please – if you don’t understand something, or you would like to figure out something – PLEASE DO ASK! :slight_smile:
  • I’m not here to prove how cool I am or how profitable I am. I’m not here to “sell” any products. And I don’t want to be blamed for “creating any illusions” or “putting pink glasses on newbies eyes” because I’m a super-duper-mega profitable trader, or that there is some secret ingredient or secret pill that will make you a millionaire by the morning.
  • Therefore I will hide all the information about deposit amounts and lot sizes – in my opinion this information is too personal to show it to everybody. Ability to watch somebody trading in real-time is the only way to figure out – is that trader or is he not a profitable trader. So if you want to figure out am I a profitable trader or not, don’t ask me for statements, proof, etc (statements can be easily manipulated and “made up”, sometimes with help of a broker)… just keep following and taking part in this thread – And you will get an opportunity to witness my trading logic “semi-live”.

So much of an introduction :slight_smile:
We have ~48 hrs until next trading week starts. So if you have any questions – fire them at me now :60:. Hopefully I will manage to answer them until Sunday evening.

“reserved for future use”

“reserving for future use, thanks”

reserved for future use

Good Luck. Sounds like you have your plan, now you have to work it consistency and remember always protect the bankroll
Gp

Thank you GP :slight_smile:

Okay, I will start with how do I see the Eur/Usd pair:

Picture 1: “Long”-term


Picture 2: “Mid”-term


As you can see on 1st and 2nd pictures - as long as MF3 or MF3/3 pivots are not broken. The only available direction for me to work will be - “down” :slight_smile:
Strategy: upcoming week mostly I will be looking for opportunities to open a “sell” position.
Here are some possible s/r zones that might give me a chance to open a trade.

Picture 3


So, I have the strategy now. What will bring me the upcoming week? Let’s wait and see :slight_smile:

p.s.: Gbp/Usd pair is not so straight-forward at the moment. I will try to describe it later on.

Gbp/Usd pair is not so straight-forward at the moment.

As mentioned yesterday, GBP/USD pair is not so straight forward at the moment.
To be more exact… there is a discrepancy between long-term and mid-term directions (compare pic.4 and pic.5)

Long-Term trend at the moment is “up”
Picture 4:


But at the same time mid-term trend is still developing downwards.
Picture 5:


Therefore this week, most probably I will “stay on the fence” with this pair.
If MF-pivot protecting the mid-term trend down will be broken - maybe then I will try to catch some buy-setups.

Ok, here we go.

Strategy: upcoming week mostly I will be looking for opportunities to open a “sell” position.

Tactical plan for today.
Pic 6:


Now, I have my “traps” placed. Job is done - all is left to do is - wait for a suitable signal :slight_smile:

One of the tactical plans is “in action”

Entry based on FZRm5 down (as a signal)
Pic 6.1


So far so good.
Will see what happens next.

Day is getting near the end, so I took some actions to protect the deposit.

p.s.: as GP says - “protecting the bankroll” :cool:

Stop-loss moved to Be +3 (BE = break even)

Pic 6.2:


So. The “risk free seed” is planted - will see what will grow out of it :slight_smile:

I’m glad I took my own advice today. Nice Trade.

Thank you GP,

Here is the the “outcome”:
Pic 6.3


In My opinion - movement down is finished for today. So I’m out.

MF pivot protecting the “intraday” trend down is broken - It means -> to proceed down, a new cycle is needed. Most probably it will happen tomorrow.
Tomorrow new day, new tactical plan, new “traps”.

For today: 53pp profit with 21 pp risk - not too good, but will be alright to start the week.

Strategy: upcoming week mostly I will be looking for opportunities to open a “sell” position.

Nothing changed in strategy so far.

Tactical plan:
A FZR down of wave level m15 is formed. Now I have a new short-term reference point.
My Tactics for today’s Eur/Usd would be as on picture:


Very good analysis and trades. Will check this thread time to time :slight_smile:

Thank you [B]brendad[/B]

Will check this thread time to time

I invite you to take a part in it as well :slight_smile:
If you have any ideas, or thoughts to share - feel free to post them here

A small update on today’s tactics

Pic 8:


As you can see from picture 8 - I have still 2 same Tactical plans in my mind for today.
But the day is coming to an end. And there is very little chance left that I will try to trade any of these tactical plans.

Possible Move nr1: It would be a good time to open a “sell” position now. BUT - I don’t like the RR ratio in this case. 50pp potential profit will not pay off my risk. So I will skip that one.

Possible Move nr2: This is still “ok” for me. But again - there is no more time left for this one today. And as a daytrader I will have to skip this one.

So… probably - I’m done for today. Unless something “wow-ish” happens

Tomorrow a new day - new reference points, new tactics :slight_smile: