Parabolic SAR - that's all!

[robstyle1980]

OMFG its like a damn soap opera in here!

I can't keep up! Had to go through 10 pages just since yesterday! I don't even know whats going on anymore! You're toying with my emotions! lol

Dale, you and Akram should use the chat room while you're on together.

Anyway, I just finished applying to open an account to go live! Oh yea! Time to do this for real. Time to pwn some pips! Lets do this! ::c0cking of shotgun:: Sorry... thought I was in an action movie.

What the hell time is it there anyway? 11:30AM here and I see you guys are still up!? Craziness. Couple of crazy traders you are.

So Dale, you're using the 50EMA with the Indices and all that? Going pretty good so far, eh?

edit: LOL they blurted out c-ocking? thats funny.

[dpaterso]

Hey 'Robby', nice to 'see' you again.

I WOULD use the chat room (gladly) but then I'd have install Java on my workstation and I HATE Java.

I don't know - maybe you are right (although see my post just prior to yours). Maybe we should find someplace where we can just have a 'leisurely chat' without 'cluttering up' this thread.

Rob - it's now 20h49 here (but it's only 14h49 in New York so I have another hour or so to go - been at it since 06h30 this morning (my time)).

Yep - things are 'getting back to normal' since I stopped with this forex 'business'. Like I said - not knocking it - but I feel confident on the indices and the like (for the reasons that I'm sure you've already come across during your long read 'catching up').

By the way timbaboy: now the Nasdaq is starting to follow suit so I'm out!!!

[timbaboy]

Thanx Dale,

Useful stuff there, thanx for the help, will try to keep up and do lots of testing with this system, in the mean while I am still using the orig. system and as I said before, I love it.
Will go to check now the Champions League, will be back shortly.

Regards,
-t-

[dpaterso]

Actually timbaboy, when I say 'I'm out' what I normally do in a situation like this is 'hedge' the positions i.e. I don't close the original position but open a position in the opposite direction. The idea is that if it is a true selloff I can make on the way down (in this case) and then close the 'hedges' when the reversal comes - take profit - and then let the loss which is now showing on the original positions 'work itself off'. Sometimes you lose because the 'hedges' never turn to a profit or they turn from a profit to a loss before you've taken profit because you were not sure when to close the 'hedges' or closed them too late. Other times (most times) you make both ways though.

[pip huntter]

hey Rob,

that is a good news my freind finaly u will put some greenbucks!!

yes i have no problem to open a chat room with u guys but that will be like another pc for Dale to look at!!! i think they r 4 aren't they my friend????!!

Akram

[capt.findus]

hi dale - hi all

here i am again - was busy losing money

Anyway here it's late and i had an idea about a crazy/naive/stupid system.

Here it is - i'll call it "if has a shadow it's ok"

- Open a position at midnight or when you bank opens trading.
Put a take profit on the direction of daily psar.

- If the stop is small (25/50) seems like it almost always get reached in the next 23/24 hours.

- repeat it the next day.


ok didn't check if it's true just looked last days on some crosses.

I'm ready to be insulted.

[dpaterso]

No - I think it's interesting - but do you think you could post a chart or something like that?

[capt.findus]

ok i'll try without having a real platform and the help of MSPAINT



-these are the last 50 days of GBP/JPY:

-blue rectangles are the spread in the direction i said.

2 times out of 50 has failed, so maybe we need a stop loss to be secure.


i can't calculate a value to put in takeprofit.

[timbaboy]

Originally Posted by dpaterso

Actually timbaboy, when I say 'I'm out' what I normally do in a situation like this is 'hedge' the positions i.e. I don't close the original position but open a position in the opposite direction. The idea is that if it is a true selloff I can make on the way down (in this case) and then close the 'hedges' when the reversal comes - take profit - and then let the loss which is now showing on the original positions 'work itself off'. Sometimes you lose because the 'hedges' never turn to a profit or they turn from a profit to a loss before you've taken profit because you were not sure when to close the 'hedges' or closed them too late. Other times (most times) you make both ways though.

Dale this makes sence, I will do so from now on, at least if it is reversal you will have new opened position on time and lose a bit of a profit from the previous trade, but if it is no reversal you just lose a bit and continueing riding your profit!!! Ain't that great!!!
Of cores we all know, it is no always happy ending, but all these details help to make a complete system which in the end should bring more profit than loss, much more profit I hope

Regards,
-t-

[dpaterso]

Hello,

Yes - it does work - but be careful with it - because the tendency is to hold on to the hedge as well because it's now in a loss and you're hoping that the price will 'just' retract enough for you to be able to close the hedge at break even i.e. without losing any money but it never does and pretty soon you land up with one position showing a HUGE profit and the other showing a HUGE loss so at the end of the day you end up closing out both of them at a loss (I hope that makes sense). In other words - if you're disciplined enough to be able to take a loss NO MATTER WHAT then this will work but if you just cannot bring yourself to take a loss then this is a dangerous play.

Edit:

Actually this has just happened to me i.e. I 'called it wrong' earlier on. The Dow and the S&P rallied for another two bars so now my choices are this:

Either close the hedges at a loss which reduces capital but does not decrease available margin

or

Hold on to the positions because at some point - be it tomorrow - next week - or next year for that matter - the price will come back to this point (and believe it or not this does in fact happen with stocks).

See the 'dilemma'???

One good thing, by the way, is that on the indices there is no interest - neither earned nor paid - so you can hold on to a position indefinitely.