Between 40-100 pips per Day

[james]

Hi there James here

Well today was ok we missed 3 good trades with one thing and another but some of us managed to get a few pips also took 36 pips on a news trade

Today markets are cautiously staying in tight range today so far ahead of the key events this week. Though, dollar remains generally soft on reaffirmed expectation of a 50bps cut from Fed on Wed as well as further easing down the road. US durable goods orders and consumer confidence are the main feature today. Markets expect a strong rebound in headline orders by 1.9% in Dec, thanks to a substantial increase in non-defense aircraft orders. But ex-transport orders is expected to be flat only. Conference Board consumer confidence is expected to deteriorate again to 96.0 in Jan after unexpected improvement to 88.6 in Dec.
Spoke in the State of Union address, US Bush acknowledged the US economy is 'undergoing a period of uncertainty and at kitchen tables across our country, there is concern about our economic future.' But Bush also reaffirmed that the americans 'can be confident about our economic growth' in the long run, even though there are concerns about the housing slump, softer labor market and inflation. Markets paid little attention to the speech.

Tommorrow we have some NEWS TRADES coming out 3 in total in live trading


Regards

James

[james]

Originally Posted by luminous

i cant pay through paypal.is there any alternative method of payment?

Hi luminous

Not at the moment unless you use a friends.

Regards

James

[StefanIlarda]

The IB System clearly stipulates that...

Exit when stochastic cross in the opposite direction..

I found this chart example on IB Entry & Exit @ www.trade2win.com/boards/first-steps/26033-40-100-pips-aday-trading-system.html

Can somebody pls. tell me why the SHORT trade was not exited at DOJI candle circled in WHITE & in the opposite direction when STOCH. was below or around the 20 and oversold (white circle) ?

[kerry Haladae]

Can somebody pls. tell me why the SHORT trade was not exited at DOJI candle circled in WHITE & in the opposite direction when STOCH. was below or around the 20 and oversold (white circle) ?

They were probably targeting fib. level and possibly using a second larger time frame like 1 hr.. You don't have to exit when stoch is oversold on 15 min. esp if it is just beginning to head south on the larger time frame. It can cycle repeatedly on the 15 min. chart before it bottoms out on the 1 hr. and then you reach the fib. level targeted. Obviously you can take profit at any exit where you have pips to take but if the market is continuing down why bail out?

[StefanIlarda]

Thanks.

I need further clarification of IB formations:

1. Do IB's have to OPPOSITE in colour i.e should IB (Current candle) be oppositely coloured to the candle on it's immediate left ?

2. Is there a relationship between LONG/SHORT trade with colours of IB's ?
I.e for LONG trade, does IB candle (current candle) have to be BULLISH notation (Green/White) AND candle on left be RED/BLACK (Bearish notation) ?
And vice versa for SHORT trades ?

3. I understand that 'IB' formation comprises of 2'nd candle (current candle) is COMPLETELY engulfed by candle on left (incl. shadows) or EQUAL in SIZE.
Not sure what Outer Bar or OB is ?
Does OB formation comprise of current candle being completely ENGULFED or EQUAL in SIZE by candle on right ?
In short, is it the opposite formation of IB ?

Thanks.

[StefanIlarda]

Hi,

Can somebody pls. tell me on what aspect of candle price is 60 SMA applied on to check trend ?

Is it applied to OPEN, CLOSE, etc...

Thanks - Stef

[StefanIlarda]

Qtn. for James (Author of System).

Hi James,

Great system ! I have some qtns. for you.

I read somewhere that on this post...

Quote:
Bar 1 - bar prior to IB
Bar 2 - IB bar
Bar 3 - present bar

Long Trade
We go long if the Ask of Bar 3(present bar) is greater by 1-2 pips than high of Bar 2 (IB).

Short Trade
We go short if the Bid of Bar 3(present bar) is lower by 1-2 pips than the low of Bar 2(IB).

Qtn. 1 :
If conditions have been met for LONG TRADE, is Bar 3 normally (or always) a BULLISH candle ?
Similarly, if conditions have been met for SHORT TRADE, is Bar 3 normally (or always) a BEARISH candle ?

Qtn. 2:
With the exception of DOJI candles, mostly all other REVERSAL CANDLES comprise of 2 or 3 candles.
For example, a 'Bullish Engulfing' pattern comprises of a strong BEARISH candle followed by a strong BULLISH candle that opens below preceding candle. (Hence combination of 2 candles).
My qtn. is whether there is a relation between REVERSAL CANDLES formation & 'IB System' candle formation i.e Present Candle (bar2) & Bar 3 of IB candle formation ?

From what i've read about REVERSAL candles & IB System candle pattern formation, i think there is a clear correlation between the 2.
To name a few 'reversal pattern's that complement 'IB System pattenr' is 'Bullish Engulfing' pattern & 'Piercing' pattern.
Can you comment on this statement ?

Qtn. 3:
Based on your answer to Qtn.2, & based on IB system rules, say that next candle does'nt form 1-2 (above/below), then we wait for next 3 candles.

Can REVERSAL CANDLE formation occur on a different 'Fibo. Retracement level' from where IB candle was formed?

For e.g : IB candle formed on 38% & REVERSAL CANDLE formed on 50%.

Qtn. 4:
Do you spot for IB candles on Hourly chart & goto 15 min. chart to take the trade. Or do we spot for IB candles on 15min. charts ?

Rgds - Stef.

[StefanIlarda]

Can somebody pls. tell me if this was a valid trade for GBP/USD this morning @ around for 10.00 GMT ?
Entry was made on 2'nd Candle from IB as 1st was not 1-2 pips above IB.
Profit pip of almost 100 pips.

[mustang]

Yep a valid entry with regard to the ib but your stoch setting is not correct, should be 8,3,3 and then it would be correct. I saw this trade but didn't take it as I like more confirmation by way of a 60sma on the 5min chart. You will answer many of the questions you have asked if you read the entire thread a few times.There is quite a bit of subjectivity with this system, as you will find,and it is not just a matter of taking every signal,IMO of course.

[StefanIlarda]

Originally Posted by mustang

Yep a valid entry with regard to the ib but your stoch setting is not correct, should be 8,3,3 and then it would be correct. I saw this trade but didn't take it as I like more confirmation by way of a 60sma on the 5min chart. You will answer many of the questions you have asked if you read the entire thread a few times.There is quite a bit of subjectivity with this system, as you will find,and it is not just a matter of taking every signal,IMO of course.

Thanx Mustang for the correction.
I have read the POST all thro' but using SEARCH does'nt work 'coz it does'nt take to the specific thread.
In any case is Stoch. settings applied to CLOSE, OPEN, etc,etc..?

Stef