Parabolic SAR - that's all!

[dpaterso]

Sh1t!!!

Take a look at EUR/RON 4 hour!!!

Between 12/09/2007 and 26/09/2007 that's nearly 1800 PIP's!!! Man - I could start my OWN record label with that kind of money (you know - close certain Argentinian record labels down)!!!

Regards,

Dale.

[dpaterso]

More!!! More!!! More!!!

Take a look at USD/SEK (four hour)!!!

Dale.

[dpaterso]

Just another thought:

If you're REALLY worried about the pair being range bound on a given timeframe and the 'hovering' around the 50 EMA is going to cost you money I would go so far as to say that you could wait for a candlestick or bar to open AND close above or below the 50 EMA before taking the trade - then - you already have a better than average chance that the trend has begun. Of course - you stand the chance of losing a few PIP's at the beginning - but - what's a couple of PIP's between friends.

Regards,

Dale.

[timbaboy]

Originally Posted by dpaterso

Just another thought:

If you're REALLY worried about the pair being range bound on a given timeframe and the 'hovering' around the 50 EMA is going to cost you money I would go so far as to say that you could wait for a candlestick or bar to open AND close above or below the 50 EMA before taking the trade - then - you already have a better than average chance that the trend has begun. Of course - you stand the chance of losing a few PIP's at the beginning - but - what's a couple of PIP's between friends.

Regards,

Dale.

Hi Dale,
I don't know about the new system (EMA 50), maybe it works maybe... Seems to be good on the ready charts, lets see how it goes after some testing, but one thing is for sure, the old rules work fine for me so far, since I started testing it, I have made around 15 trades and lost only one, is the one with CAD from this crazy news day last week. I think the system is very good and simple, discipline is the key, I guess...
Just my thought,

Thanx to all you guys and especially you Dale for starting this thread - this thread rocks, and it has become a part of my everyday live

Regards,
-t-

[dpaterso]

It's only my pleasure.

I'm glad the 'old' system has worked for you - I really am.

Like I said - I DO actually have faith in Parabolic SAR - but - let's just say - that the 'focus' of my faith has 'shifted' to it's ability to 'mechanically' 'lock in profit' as opposed to me having faith in Parabolic SAR to indicate a trend - if that make sense.

Right now - I have have the following four positions open:

AUD/CAD - Daily - Long - Profit
USD/JPY - Daily - Long - Profit
USD/SEK - 1 Hour - Long - Profit
GBP/CHF - Daily - Long - Loss due to the spread (I missed this one last night somehow i.e. Friday's candlestick or bar had already closed above the 50 EMA and I did not see it last night so I would ALREADY have been in a profit on this one as well right now)

And that's as far as I've got i.e. going through each and every pair on the Daily, 4 Hour, and 1 Hour. If you're going to trade each and every single available pair I don't think you'd be able to go down to 30 minutes i.e. there just simply is not enough time to track each pair in 30 minutes.

Oh - I know - stating the obvious - BUT - you need to keep very good track of what positions you have open - on what pairs - and on what timeframe - so that you can 'maintain' your stops.

GBP/CHF has just turned to profit by the way - as I type.

Regards,

Dale.

[timbaboy]

Originally Posted by dpaterso

It's only my pleasure.

I'm glad the 'old' system has worked for you - I really am.

Like I said - I DO actually have faith in Parabolic SAR - but - let's just say - that the 'focus' of my faith has 'shifted' to it's ability to 'mechanically' 'lock in profit' as opposed to me having faith in Parabolic SAR to indicate a trend - if that make sense.

Right now - I have have the following four positions open:

AUD/CAD - Daily - Long - Profit
USD/JPY - Daily - Long - Profit
USD/SEK - 1 Hour - Long - Profit
GBP/CHF - Daily - Long - Loss due to the spread (I missed this one last night somehow i.e. Friday's candlestick or bar had already closed above the 50 EMA and I did not see it last night so I would ALREADY have been in a profit on this one as well right now)

And that's as far as I've got i.e. going through each and every pair on the Daily, 4 Hour, and 1 Hour. If you're going to trade each and every single available pair I don't think you'd be able to go down to 30 minutes i.e. there just simply is not enough time to track each pair in 30 minutes.

Oh - I know - stating the obvious - BUT - you need to keep very good track of what positions you have open - on what pairs - and on what timeframe - so that you can 'maintain' your stops.

GBP/CHF has just turned to profit by the way - as I type.

Regards,

Dale.

Yes Dale,
I totally agree with you, one thing can't harm another especially if it is effective enough and brings profit.
Well lets see how it goes with that new system, right now I don't have enough time to test it well and frankly I don't really want to mess up my newbie mind with something else since the old rules work well for me, I guess once I gain more experience in this business I will be able to combine some systems and have more fun, but at least for now I will keep it simple, just the old rules.
For now I have 3 open positions according to the old rules and they are all in profit:

EUR/USD
XAU/USD
USD/CHF

Thanx again,
Regards,
-t-

[dpaterso]

Another thought on stop losses (initial).

(Sorry - I'm just going to post as and when things come to mind as I 'mosey' around the charts - we'll put it all together nicely again when were done - and this time WE WILL FINISH)!!!

Both Bill Williams and J. Welles Wilder Jnr. in their trading systems use the values from the previous two or three bars for stop losses.

What I'm saying is this:

(Regardless of timeframe)

Once the price has CLOSED above or below the 50 EMA and you're in the trade - then - your initial stop loss is set to the low (if long) of the previous 3 to 5 candlesticks or bars (Bill Williams 'favours' this setup) or the low (if long) of the previous 2 candlesticks or bars (J. Welles Wilder Jnr. 'favours' this setup). Obviously - if short - you're looking at the high of the previous candesticks or bars. These 'setups' you use UNTIL Parabolic SAR has locked in profits and then you abandon the 'previous bar stop loss theories' and 'hand over' to Parabolic SAR.

Thoughts!!!

Regards,

Dale.

[dpaterso]

Something else (wonderful):

This 'play' also lends itself well to a sort of 'pyramiding' system.

In other words - let's say that you're long on the daily for a pair - then - you get a signal (price has closed above the 50 EMA on the four hour) - you go long - then - you get yet another signal (price has closed above the 50 EMA on the one hour) - go go long.

Look what you have now!!! Three positions - same direction - same pair. It looks like this is about to happen on USD/SEK - I'll follow it through.

Regards,

Dale.

[CharlesLioe]

There is a thread called 25-50 EMA by elang, i have been following it for a while and it works well, the entry is based on a candle closing above or below the 50 EMA. Stops are placed at 1x ATR or 2xATR or soemthing in between. my problem was i never knew when to take profit, i think with psar this problem is solved, as i will just put the stops on the psar

i think the 50 EMA and PSAR will make a very nice combo

[dpaterso]

Yet ANOTHER 'play' (for the 'conservative' members of our 'club'):

Check the daily chart for the direction of the 'trend' i.e. if the price is currently above the 50 EMA on the daily - then - on the 4 hour - only take long trades in the same direction i.e. when the price closes above the 50 EMA on the 4 hour - or - only takes trades in the same direction on the 1 hour when IT'S in the same direction as both the 1 day and 4 hour. You cannot get 'surer' than that!!!

(Hello 'shortie' - just a message to a friend of mine who I'm trying 'entice' into the business - she's supposed to be having a look at the thread about now).

Regards,

Dale.