Fib Retracement Trading...

[Cowaboi]

Hi Daedalus, when you get time, please could you confirm your current entry rules on the deep retrace setups...not sure if you prefer limit orders at the 61.8/78.6 levels, or whether you enter at market on the next bar/candle of a 'tested' fib level?

Thanks.

[daedalus]

Hey Cowaboi!

Current rules are that you get price to move into that grid and HOLD it on all of its closes, it should not violated the fib level. Then wait for a candle reversing in the opposite direction and then I enter at the open of the next candle.

Heres a good example off the 1HR. Comes down into the 87, holds it perfectly, prints a green up candle, so i enter at the open of the next candle.



Does that help?

Cheers!

[Cowaboi]

Originally Posted by daedalus

Hey Cowaboi!

Current rules are that you get price to move into that grid and HOLD it on all of its closes, it should not violated the fib level. Then wait for a candle reversing in the opposite direction and then I enter at the open of the next candle.

Heres a good example off the 1HR. Comes down into the 87, holds it perfectly, prints a green up candle, so i enter at the open of the next candle.



Does that help?

Cheers!

many thanks, it does....i've been missing some important detail in the forward testing so far.

Cheers and good trading!

[Dahlia]

Daedalus,

I've read elsewhere on the forums that you're with EFX now as your broker (from Tradestation, right?). Funny, I used to be with Tradestation too. But despite the wonderful charts they had too many things ticked me off and I left them for EFX too.

I'm currently trading a scalping strategy on EFX (MBT) on the 5 minute charts, which work out really well. However, I'd like to explore strategies with longer timeframes too, and I've observed yours with interest.

However, it doesn't seem that EFX is the best broker for longer timeframes for two reasons:

1) Their platform shuts down twice a day (once before Sydney opens, and again at midnight), which leaves you vulnerable if you have an open trade while the system is "down".

2) Their roll-over rates aren't the most attractive in the business.

Just wondering if you think you're better off trading your system (on longer timeframes such as 30min-4hrs) on EFX than with your previous broker. (you were with Tradestation as well, right?) Does the platform "down" time put a kink in your system? How about the rollover rates?

Don't mean to hijack your thread, but I wanted to put the question where you'd see it.

Thanks!
Dahlia

[daedalus]

Hey Dahlia!

1. Very True. However, using their TTO orders I have no more risk than normal and thus far it has never been an issue.

2. Their rollover rates do suck. However, holding through them is typically less expensive than flatting the position and re-entering everyday with the commission costs. They have the best execution and commissions for a reason, but after speaking with them over the phone they said they have to sacrifice rollover rates to offer that commission structure. Its not perfect, but i'd rather have their execution than messing around with GAIN or someone else just because they have slightly better rollover rates.

[Dahlia]

Originally Posted by daedalus

using their TTO orders I have no more risk than normal...

Actually, I'm hearing that open orders (TTO or otherwise) don't get executed while the platform is down. So, if you have a stop loss that was hit during the time that the servers are down, it doesn't get executed properly, if at all. That's what I'm told. Is your experience different?

Down times are during slow hours anyways, so chances are you'll be fine most of the time. I'm just paranoid of those black swan events, ya know?

I must add though that between Tradestation, EFX wins hands down. ECNs are the only way to go in my opinion.

I do miss the charts and the historical data though...

[BWise]

Thanks everyone for the information they've contributed thus far. I've been waiting for a thread like this. Your guys made my day!

Happy trading

[forexrules]

I don't know that the Bank of England is going to do about interest rates, but the indications are that we are in for a choppy ride. Wouldn't hurt to see what expert advisors on some of the forex trading education sites have to say. ForexFace is a good one.

[daedalus]

^^^^^^^ Spam - Do Not Click - Spam ^^^^^^^^

[Trade It]

just dropping in daedalus, hows it been going? Well I hope. Are you still on the same timeframes? I've moved down to the 5min and 30min. Have you ordered the ferrari yet?

Trade well!