Excellent. I look forward to your screen captures…
Start of my first week trading the yen basket is showing promise:)
Last night’s asian session I bagged 160 pips and tonight’s asian session I made 235 pips, so all in all, 395 pips in just two days:D
Thanks to you Reaper, the yen pairs correlate with each other much better than the original basket pairs, despite have such high spreads. As long as all 6 pairs go in the same direction, spread costs are no problem:D
Agreed, I’m starting to focus more attention to the yen pairs, they are expensive but they are also fast movers. I’m just hoping this system will stand the test of time but we’ll have to wait and see.
Anyway, I’m off for tonight, look for a few posts on my trade tonight and some HA candles that I wanted to post up.
Goodnight.
Alright here is my trade from last night, [B]Trade 2:[/B]
Finally there was a reversal and heading in the up direction after spending all day going down yesterday.
Here is the 1h chart and I circled the candle that I entered on:
This is the entry on the 1m chart, notice the crossover, all of them were in the red except for usd/jpy, this was in the green not what I prefer but it was still crossing over so I went in.
Now I let these run until I hit 150 pips, then I set a trailing stop to see if I can get some more.
Here is a post of my entries from last night, so you can refer back to your chart and see my exit, the reason the exits are different are because of the trailing stop
Please ask any questions that you may have and I’ll try to answer them the best I can. Closed at 170.4 pips positive.
Thank you for the previous post with all the charts.
In the morning, between 8.50 & 9.20 AM (EST Time), I took 5 jpy short trades. Currently they are all in negative, led by the giant pair GBPJPY… I am still in the trade since 156.60 acting as a big resistance for GJ. I will post the charts shortly to make sure my entries are really valid…
Here is a trade that didn’t go so well this morning, can’t win them all, only learn from them, [B]Trade 3:[/B]
I entered on what was a strong downtrend, each candle closing lower then the previous candle,
I then switched over to the 1 minute charts and looked for a good cross over and here were my entries.
Now initially the trade seemed to be preforming well, I gained 50 pips almost immediately and then it started to move against me, I thought it was going to be the usual retrace until this happened.
It broke through the mid resistance, it was the same story pretty much across all the pairs, I started getting a little cautious and started look for an entry, in the positive, sadly that wasn’t the case. The price didn’t move back down so an exit which you can look at your charts and see where it was. This was a poor trade, while I thought the downtrend was strong it was reversed pretty quickly.
Here is the times I took the trade:
Closed out at -159pips.
Now please feel free to ask any questions, sorry for the rushed nature of these post I have to pick up my grandmother from the airport but I wanted to knock these posts out before I left because I’m not sure when I was going to return.
I too had a bad trade earlier today, -131 pips, I entered long when london session ended (around 12pm est) since it appeared the uptrend was going to continue, instead it just stopped, went down a bit and started ranging for the next hour. Can’t win them all:o Hopefully we’ll see a clear direction during the asian session tonight.
Yeah it was a little bit of a crazy day but it’s alright, with this system you have to ahve good money management or you can’t be burnt pretty quickly.
Why not only trade one pair and gain 30 pips?
I dont see the point of trading 5 pairs and gaining 150 pips when you can trade one pair and risk the same capital for 30 pips. There is less effort required for the same % profit.
I thought about this as well, but personally when you’re trading in this style you rarely have equal movers, with an average of say 25pips, some drag and some push really hard, it’s still something that’s in the back of my head, like going 3 pairs instead of 6, or even less. I haven’t had a lot of time to play around with this system, less than 3 months so I still have a lot of things to look at.
Actually if you do it well and win often it’s less effort when trading with a corolating chain.
Sure you could trade one pair and risk the same amount of capitol. When that one trade wins or loses thats it.
With that chain you could have 3 going postive and 2 negative. The wins and losses aggregate. If you do it well and are trading a basket that is actually corolating it also gives a better indication of the overall trend. Rather than hanging on blindly to a hard stop because it’s part of a risk/reward ratio, trading in a chain can often tell you that the stupid spike that just happened against you is going to reverse and to hold on for profit.
The main point is NOT trading a basket of multiple pairs, the main point is looking over a basket of currencies that often run in the same direction and using that as confirmation of the best direction to be trading in.
You could very well, trade 1-3 currencies but use a basket of currencies as stronger confirmation of what the best direction is to be in.
P.S. one of the first things I learned on babypips is that you should concentrate on one pair and then move on. I agree with that early on, but I don’t think you should try to become a, “master,” of that pair. I’ve learned a lot more in the past couple of months looking at 5 or more currencies at time, even if I’m not in a trade in all of them at once.
Though Today I lost some pips by going short on JPY pairs, I believe working on corelated pairs is less effort than working on one pair. If you do well, you can get 100 pips or so in a few minutes on the co related pairs… of course you loose also pretty quickly… So you really need to very cautious in this setup to get some quick gains…
Also as Phoenix said, it indicates the trend of the day or the session, at least. The biggest question is how to identify A++ setups ??
I was just comparing the daisy chain to a very good basket strategy and want to know from people who have traded the daisy chain whether it is [U]similar [/U]to the strategy below.
"The entry point of the strategy is when: many currency pairs are moving in a particular direction, but there will be a pair that is holding it back (moving against the others).
Then the pair holding it up gives out and follows the rest, and a nice move happens."
An example (27/7) - The pound is increasing against the yen and usd, it is just waiting on the USD to fall against the yen. When the USDJPY turned around, I entered on the AUDJPY and GBPJPY. Made a few grand and exited too early.
ReaperKK or someone else, please help me here!
No problem, I’ll try to help the best I can but I can’t seem to understand the question.
Yes there will be some laggers and while I don’t trade this type of strategy, but if I did then I would rather go with the usual big movers like GBP/JPY and EUR/JPY, more times than not they are the one that move the greatest direction. There will be cases where AUD/JPY and CHF/JPY don’t move much at except for a few pips positive/negative.
Actually since you’ve posted last time I’ve been doing some research of doing mini trades with only a few pairs, seems to be really worth it if you do GBP/JPY or EUR/JPY
That is not the entrance signal for this strategy, although the concept of trading currencies that are moving in the same direction is the along the same general lines.
Where did you learn of this entrace strategy? I think it might really be useful for the daisy chain, as the daisy chain doesn’t really have a strict, “enter when x happens,” entrance rule. This could very well be a great entrance signal that tells a trader when the move with the most juice is about to happen.
With the daisy chain you look for a bounce that is a start of a move or a continuation of an established move on the 1H (across all the pairs with all the pairs agreing in direction) and pick the actual entrance on the 1M for each individual pair with either the braintrend dots, trix lines or the macd.
The original methods way of looking for an entry was three candles on each pair going in the same direction. Depending on market conditions this could be good or bad.
When the daisy chain first surfaced here, three candles and then in was an excellent entry. The month I tried it after that three candles often ended up being the end of the 1H move and the start of a bounce. So, then it kind of evolved into looking for 2 or even just 1 candle with all pairs agreeing. This is why I think your entrance criteria could possibly be something that helps out this strategy.
Hey Pheonix, how has trading been going for so far with the basket?
I’m actually working on my own thing right now. I’m testing another template I found for more exact entries, that some guy sells. It has a 30 day free trial so I gave it a whirl. I like it so far because it’s more exact as far as giving a clear signal for an entry and works down to the 15M. It also posts suggested stops on the chart that are based on the pairs current trend.
I’m using a combination basket that includes the orignal daisy chain and the yen pairs.
Instead of going for x pips overall and then manually closing, I’m trying to work it out where each pair automatically takes profit at x pips, so that I can work out a very clearly defined risk/reward and or win/loss ratio.
I just found the end result numbers for the way the original daisy chain worked hard to put into a expectancy formula that worked over a large amount of time.
Once I get all the nuts and bolts worked out and have tested it over a good sample size I’m going to post a free e-book about the method and invite people to trade the method and help improve it further.
Glad to hear from you Phoenix and I’ll look forward to reading your ebook.
Nice to know that a new or improved strategy is shaping up here… I look forward to see your e-book.
The strategy is from a 23 year old guy who made $1m from less than 100k in 1 year and a half. He makes on average 5% a week trading only GBP/JPY and AUD/JPY. I am looking to incorporate his entry strategy with the daisy chain system. Or even just use his strategy by itself. However, I can’t figure out what exact entry criteria he uses, so perhaps you can help here.
Would you know how I can 1) incorporate the strategy he uses with the daisy chain or 2) trade the strategy by itself? Please post any thoughts you may have on what entry signals and setup is required in a step by step format (something along the lines of post 77).
Any help would be much appreciated.