I don’t trade the 5 minute charts. I look for entries mostly on 15 and 30 minute charts. Though I’ll use the 5 minute charts occasionally to time my entry.
I quickly learned that if you’re going to trade the five minute charts you have been be very aware of what’s going on at higher time frames. I seem to get fewer false signals at 15M and higher.
OK, so I’ve been on the ‘Errissa Experiment’ for the last 8 trading days but due to work, family and sleep I have only traded on 4 of those days. Nonetheless, I’m happy to report that this 3 lot setup is working well for me. I’m +250 pips so far. Having that third lot open to catch the price movements when the opp. BB is pierced has made quite a difference.
However, I do now understand how your system of entering new position when a timeshare forms can be advantageous. Once I’ve hit my first two targets and a timeshare forms I find myself wishing I could take profit along the way on the next chart. I’m still trying to get a feel for when to close out my third lot. I like having a target (helps me be more disciplined) but once I’ve hit my first two targets there’s no real target for the third lot.
Anyway, I will continue to trade and experiment and post my results here.
If only I didn’t have to sleep…
I’m not saying I trade on the 5M it’s that im looking for signals as well and getting faked out quite often. I was trying to find the CCI that Maurizio has but I the only one im seeing on Metatrader is a lined based CCI.
Great news!!!
Have you been staying in to the peack of the CCI?
Thats a possible target for your 3rd lot 
Hey thanks for the great thread and E-Book! I read the first half of the thread and haven’t had time to read the 2nd half yet. Just a quick question. The first posts you were tradin just the daily pretty much without using other time frames. What happend with that? Does it still work? Did you just notice you were missing lots of opportunities on the lower time frame? Are you still trading the same pairs as before? Thanks! :rolleyes:
Hi Maurizio or anyone else,
Can someone please elaborate on the Money Management section highlighted in the ebook?
Let’s say I have $1000 capital.
Should not risk more than 2% = $1000/50 = $20
When your stop loss is 50 = $20/10 = $10
(Does this section means that I am willing to only lose $10 for my stop loss?)
This way, I would trade with $10 per pip. But, I’m doing the 3 Lots way, that will make it $10/3 = $3.3 per pip.
< Can someone please verify that I got it right above? >
Now, my question is on the leverage portion.
The moment I use Leverage, I am no longer risking 2% of my capital. Can someone explain how does this technique works using Leverage?
Thank You.
Hi, i trade the same pairs as i have always done.
As for what TF’s i generally trade on, all depends what i see when i open my Tradestation. Daily, 5M, 15M - all the same to me.
My personal favourites are 30M & 3Hr charts though…if i were to be pushed for an answer.
Careful friend.
You need to get this aspect of trading AIRTIGHT before you even contemplate using a live account.
Seriously - i’m trying to save you money here - let alone show you how to make it.
Leverage makes no difference whatsoever if you have proper money management - as you can only lose what are prepared to lose. If your leverage is 400:1 or 40:1, and you’ve risked £10 stoploss - then that’s all you will lose should you be stopped out.
OK, the math…
Let’s say you have $1000 capital.
Yes you should not risk more than 2% = $1000/50 = $20
This $20 is now to be divided up into your stoploss.
So if you have a 50 pip stoploss, you should be trading 0.40c per pip.
So when you bring up a sell Market order on EUR/USD for example, where it says Units, you would enter 4000. This would then give you 0.40c a pip.
If you have a 10 pip stoploss you’ll be trading with $2 per pip (not reccomended with $1000 capital)
If you’re doing the ‘3 lots way’ then you still don’t want to be over your 2% per trade.
So say you are putting a stoploss of 20 pips.
Ordinarily that would mean $1 per pip.
But as you are going for 3 lots, each lot would be worth 0.33c per lot.
Remember, whatever you do, not to break your rule of 2% per trade.
Hi Maurizio,
Thanks a lot for your explanation. It is much clearer now. I’m on demo and trying to grasp everything before getting started. Another question, how do you time your stop loss for Target 1 ?
Are you still using the 3/4 of previous candle or it is depending on the factor of how many pips I am willing to lose. For example, your previous case is 50 pips lost. Therefore, do I set 50 pips for my stop loss?
Hello Maurizo,
Glad to see you are still around after 3 years of this thread, which was the main proof I needed for your system to work. I have read the whole thread over the last few days and have a grasp for your strategy and entry points on this system, but could you please explain your strategy for butting into the trend.
From what I understand, the setup entry you are looking for is always going to be contra trend trading as you are waiting for moving averages to cross over, albeit a potentially very small trend change. Trying to catch a trend reversal is so much more risky I have discovered. Would you agree ?
Also, how do you tend to judge the trend, i.e. which timeframe, as the 1hour trend could appear to be down or ranging over the last few hours/days, however the 15 minute may show up for the last few hours ?
I also have a question about butting into the trend.
If you see a valid entry on the 1 hour chart (step), then obviously the moves on the lower time frames have already happened, and you then have two options. Either trade off the 1 hr chart on the signal you have seen, requiring a potentially larger SL, or try to butt into the new trend on a lower time frame, which should mean smaller SL, and probably smaller gains, unless you are following a timeshare. Would you ever try to preempt the 1 hour step, by entering on lower timeframe, or are you always waiting for confirmation before entering.
thanks lot.
I trade this slightly differently than is stated in the Ebook, simply because i can do it with my eyes shut.
I would reccommend you start as the Ebook states…personally i put my stop just outside the most recent high or low, but then i have extreme confidence my trade will be successful.
Firstly, thanks for kind words. I agree that longevity is the mark of a successful trader and the fact i’m still here i hope demonstrates that as much as my knowledge.
Anyhoo.
Butting into the trend is trading WITH the trend. Always. I am not looking to catch a trend reversal when butting into the trend, simply because there is already a trend i want to be a part of. I don’t need to look for a reversal because i already know where it’s going.
How do i know it’s a trend?
I look down from the daily chart, to the 3Hr, to the 1Hr. That will tell me my movement.
I will draw trendlines on the daily, the 3hr and the 1hr if i deem it appropriate, this can also help with breakouts.
It sounds like you haven’t read the Ebook. it’s easy to find, just Google EMA Step System and it should be about the 4th item found.
Read that first then come back if you have any questions
Erissa…you still out there?
How you getting on?
I was just logging on to report my results!
I ended up +350 pips last week and, more importantly, I felt very comfortable trading. As you suggested I look for a peak in the CCI and/or for the stochs to start moving sideways or cross as a target for the 3rd lot. Also, once I’ve hit the first two targets I look at the higher timeframes for further guidance especially if a time share has formed.
These past two days, however, have been a tough lesson in trading discipline. I gave back those 350 pips and then some in 6 straight losing trades. All of which I knew at the time I was entering didn’t follow the system (trades against the trend and trying to ‘anticipate’ the cross). Then I did something really stupid – I took positions on the AUD/USD and EUR/USD ahead of the Fed announcement; I knew it was coming, I just wasn’t thinking about it when I entered the trades. Of course, I got stopped out!
I hope I’ve learned my lesson!
I will continue to report. At some point I plan to go back through my trades and compare my allocation strategy with other strategies to see if there’s a better strategy.
One more thing… I’ve been meaning to ask…
Several times I’ve seen a cross form on one time frame (say 15M since that’s where I go most of the time) but the lower time frame (5M) doesn’t agree, so to speak. So for example, on the 15M chart an upward (Long) cross forms with the correct indications, but when you look at the 5M chart it is in overbought territory. What do you do in that situation? Would you trade the 15M chart or wait? I will try to find and post an example if I can.
Erissa friendly advice, if this strategy is working for you stick with it! That’s been my problem over the past few months. I would learn a strategy and start making money and then find another strategy someone else is using and switch strategies because they say they have the holy grail. I think strategies are just there to filter out trades and it’s the experience that actually makes you the money? I hope that makes sense…
Joe
Thanks for the advice. I agree – I don’t plan to change strategy. What i’m interested in studying is the effect of lot sizes on risk and return. Currently I trade 3 equal size lots, the first two have clear targets and the third I let run. But I have noticed in my trades that most valid crosses, even ones that end up being losses, will hit the central BB target. So, is it better to trade 4 lots and close out 2 of them on the first target? I don’t know, but I’m curious.
I’ve been swing trading options and got tired of gaps so I just switched over to forex. I came upon this thread and love the strategy! I just finished reading the E-book and just got finished opening up a demo oanda account. I will start demoing this, but those are good questions!
Are you using oanda? I figured out how to change the colors of everything except bolinger bands… driving me crazY! Any help would be awesome :rolleyes:
joe
I want to open a forex account with as minimum as possible. I think the true players start small and work there way up. What’s the bare minimum you recomend I could start with? I want to start with enough I can use proper money managment and make a little bit while working my way up to making big money. I think by doing this it will help my patience and discipline because I will have to make good trades or I will never build my account up to be satisfactory!
Thanks!!!
Joe
beehivesjoe,
Zoom in on the chart as much as you can, place the pointer on the far right end of the center bolls line and right click. That should give you the options for colors.
Good luck!