All You Need To Trade Is A Horizontal Line

[Sweet Pip]

Originally Posted by marciano999

What about risk-reward ratio? you are saying that you exit with 1 pip profit for example or lets say 4 pips, but the next level for the stop loss is 10 pips away. Thats a 2.5-1 ratio.

One could argue that before the trade is made, the potential t/p is the next line of what ever price increment you set...so if stop loss is 10, then take profit is also 10, making the initial risk/reward 1:1.

Therefore, after the trade is opened, no matter where a trader decides to close his/her trade ...due to new information or trading plan rules.... I feel is irrelevant to that initial risk/reward assessment.

[xmess7]

Originally Posted by marciano999

What about risk-reward ratio? you are saying that you exit with 1 pip profit for example or lets say 4 pips, but the next level for the stop loss is 10 pips away. Thats a 2.5-1 ratio.

This is where it gets little "different". This is my personal approach to the risk-reward ratio aspect. True, the numbers show that the ratio is not acceptable when you are trying to just go for 1 pip. But since my initial investment was very low to start with, to me it doesn't matter. For example in one of the accounts I set up I got a group of folks together and we all pitched in $20 dollars to build a $400 account. I and another fellow managed that amount and were able to get it up to 5 digits in 2 months. Now the idea here is that if at any time we were to blow the account the only amount that was at risk for each of was $20 dollars. So therefore the risk is minimal when compared to the gain. With this in mind we can take certain "risks" that are considered unsound. Like for example risk 10% of the account. All of us are aware that if we were to ever blow the account we could easily start over because all we are really risking is a small amount. The thing about TRO's approach is that you develop a consistent method that yields a good probability of success.

I know this logic is not the usual but you have to put things into perspective. The most import element of trading is you and your ability to learn the method and use it effectively to add pips up. The rest is just numbers, addition, multiplication, and etc. Concentrate on your ability to become a great trader and the rest will follow.

Hope this helps. As soon as time permits I will post results.

[escoe]

you are thee man therumpledone...this goes great with my strategy

i go for 20-40pips on daily charts and 5-20 on h1 charts....and ur strategy,and my strategy with a sprinkle of stochastics is a money maker...thanks man, may u prosper and live long

[Yosako Mimoto]

Originally Posted by xmess7

This is where it gets little "different". This is my personal approach to the risk-reward ratio aspect. True, the numbers show that the ratio is not acceptable when you are trying to just go for 1 pip. But since my initial investment was very low to start with, to me it doesn't matter. For example in one of the accounts I set up I got a group of folks together and we all pitched in $20 dollars to build a $400 account. I and another fellow managed that amount and were able to get it up to 5 digits in 2 months. Now the idea here is that if at any time we were to blow the account the only amount that was at risk for each of was $20 dollars. So therefore the risk is minimal when compared to the gain.

Uh...let's say you turn $100 into $1.000.000. Now if you blew your account you'd just act like if you lost $100? Please.

Dude, by going for just one pip the risk reward ratio is just plain ****ed. Sure you may have a lot of winner trades, buy you must also mind the spread which works against you, and if you use a overly tight stop-loss it can be easily be taken by a random move, specially in the JPY pairs which make 25 pip moves very quickly. Be careful

[xmess7]

LOL yea dude I know it is plain S)#$() LOL
But you know, after you have one of those REAL BAD LIFE experiences you SEE what really counts and it ain't money.

But think about it.. when I do get to the $1000000 mark my money management will change considerably. Many things will change LOL.
Right now I average 100pips a day. In that future I will not need 100 points a day. I may just need 6 points a day or maybe even less. I am totaly fine with that, especially when each point is worth $1000 LOL.

I think the hard part is to get out of the low $$$ in your balance. I see many folks that have 1000, 4000, even 30,000 and they are very very carefull with their money management. In my opinion that is when you need to "risk" more. IF you get the hang of TRO's Price action approach you will basically NEVER LOSE AGAIN. So I agree, I need some sort of money management or better yet MONEY BUILDER. OK OK I'll stop I am ranting LOL.

The last time I blew a real account (2 of them even) was back in July 07 (around $10,000).
If I had let that pull me down I would not be here today pulling in +100pip days.

OH plus I started buying real estate back in July 05! LOL. I was shelling out 5- 10K for each home LOL. Fortunately I had a plan, cause I knew that the economy could not stay the way it was. And so far I have not had to use it, everything is kewl. Beside, trading is working out just fine.

Hey have u done any trades??

Here's a couple I did yesterday and Sunday using Horizontal lines:
I got 50pips this morning but didn't take a snap shot

Originally Posted by Yosako Mimoto

Uh...let's say you turn $100 into $1.000.000. Now if you blew your account you'd just act like if you lost $100? Please.

Dude, by going for just one pip the risk reward ratio is just plain ****ed. Sure you may have a lot of winner trades, buy you must also mind the spread which works against you, and if you use a overly tight stop-loss it can be easily be taken by a random move, specially in the JPY pairs which make 25 pip moves very quickly. Be careful

[Yosako Mimoto]

Originally Posted by xmess7

Right now I average 100pips a day.

Hey, that's a friggin' good result! Keep the good work .

Originally Posted by xmess7

In that future I will not need 100 points a day. I may just need 6 points a day or maybe even less. I am totaly fine with that, especially when each point is worth $1000 LOL.

Well...take into account the fact that while the FX is the most liquid market, if you're dumping $10.000.000 or more (leverage taken into account) in just a second you may pressure buyers or sellers and the market may move a few pips against you!

I think the hard part is to get out of the low $$$ in your balance. I see many folks that have 1000, 4000, even 30,000 and they are very very carefull with their money management. In my opinion that is when you need to "risk" more. IF you get the hang of TRO's Price action approach you will basically NEVER LOSE AGAIN. So I agree, I need some sort of money management or better yet MONEY BUILDER. OK OK I'll stop I am ranting LOL.

Well, the risk factor depends on the trader's personality. Some are more risk tolerant and shoot for the stars in order to make a killing, while others prefer to allow their account to stand a meteorite rain without suffering too much .

...
Hey have u done any trades??

Well, I'm demo trading (I'm not entering the Gladiators' arena unprepared!). When I've got a few positive trades and I start to get consistent, I'll consider posting 'em. I'm gonna use the Horizontal Line method.

About the pairs I like, the JPY ones will do for me - they move so much that money can be made with small leverage!

[xmess7]

Originally Posted by Yosako Mimoto

Hey, that's a friggin' good result! Keep the good work .

Thnx dude. See my trades today. I just made 3 and reaches +70 pips I am done for the day. Account (real BTW)grew 20%. Join me DUDE AND LETS DRAIN THE BANKS!!! LOL Naw, but really if you need help using the Horizontal line thing let me know.

Originally Posted by Yosako Mimoto

Well...take into account the fact that while the FX is the most liquid market, if you're dumping $10.000.000 or more (leverage taken into account) in just a second you may pressure buyers or sellers and the market may move a few pips against you!

Good point. I won't allow any of the accounts to go beyond 2,000,000.

Originally Posted by Yosako Mimoto

Well, I'm demo trading (I'm not entering the Gladiators' arena unprepared!). When I've got a few positive trades and I start to get consistent, I'll consider posting 'em. I'm gonna use the Horizontal Line method.

About the pairs I like, the JPY ones will do for me - they move so much that money can be made with small leverage!

Like I said JOIN ME!!! LOL I've already been thru the PAIN and done the STUPID mistakes. I still make mistakes but they are less now.
I pretty much trade the GBPJPY exclusively.
This approach is not hard... it's only considered difficult when you allow GREED to take over you. That's when you stay too long in a trade or even worse you jump the GUN and do the speculating thing.

Anyhow here it is. Ignore the Profitlock EA. It's something I am working on.
I used nothing but the crossing of horizontal lines. Well I did check to see that the average candle range was over 30pips.

[mtandk0614]

Hey Xmess.
I noticed you are in the USA.
Do you mind me asking what Time Zone, When do you Trade, and What broaker do you use ?

I am in Mountain Time, Usually trade late...like 11pm - 1/2 am (but will have more open time starting next week), and use IBFX.

I just started looking into Horizontal Line trades w/ SweetSpots. And would love some live pointers...aka, a crash course

You seem to have this system down, any chance you would give some live pointers over skype or any other IM system ?

[xmess7]

No problem dude. I'ld be happy to help. Send me an email to xmess7@yahoo.com and your number and I'll give you a call. I have 8x8 so it's no sweat to call. Or add me on the Yahoo Messenger IM.

I'll send you a little document I got together. I still use it as reference to remind me of the simplicity of the approach.

The times that I trade.
The best times is when the market is vol ital. Around news events and stuff like that is perfect. What I look at is the average H1 range for the last 200 bars. If that H1 average range is greater than 30 pips and the currency is cheap (spread is low, MBT and FXCM show actual spreads) then I got for it.

Right now I seem to have better luck around 6AM Pacific time.
Other times that I have seen to be good are 9AM - 1PM
3AM -6AM.
It really depends on volatility. Oh I also just concentrate on the GBPJPY. It is usually the pair that moves the most. I think one day it moved like 1200 pips. That is exactly what we need for this approach to work .

See ya later,
Jess

Originally Posted by mtandk0614

Hey Xmess.
I noticed you are in the USA.
Do you mind me asking what Time Zone, When do you Trade, and What broaker do you use ?

I am in Mountain Time, Usually trade late...like 11pm - 1/2 am (but will have more open time starting next week), and use IBFX.

I just started looking into Horizontal Line trades w/ SweetSpots. And would love some live pointers...aka, a crash course

You seem to have this system down, any chance you would give some live pointers over skype or any other IM system ?

[xmess7]

Guys I want to point out something important.

This is something that TRO has been telling us for quite some time.
Spread bandits vs true ECN

I calculated the spread that I payed when I made those trades I showed in my previous post to be around $60.

If I had used a true ECN I would of only payed $6.

I have decided to switch to MBT. That is too much of a difference to give to the brokers .

Now MBT Trader does not have MT4 setup and the interface can be difficult to learn but I think the effort to learn it is necessary. The difference in what you pay is alot!

Any questions let me know.

Thnx
Jess

Originally Posted by mtandk0614

Hey Xmess.
I am in Mountain Time, Usually trade late...like 11pm - 1/2 am (but will have more open time starting next week), and use IBFX.
?