Buy long now…load up we are at the low of the day.
Esignal pierced 207.23 on the bottom on 2, 2 minute bars but we are going to be going up Right now with a fury heading back for the 208.32 mark.
Lots of scaping over night for some pips.
Today is a strange trading day because of the May Day Holidays in Japan and England. I had planned on staying out of the market, but as it dropped about a hundred pips in 3 hours, I stacked seven trades. Being a bit apprehensive about today’s movement, I chose to scalp 3 of the trades for 20 pips and then closed out the rest of my pending orders. My position is now flat, but if the market retraces, I will get back in and scalp some more.
Only 20 pips you say? There have been many a day I would have literally died to gain 20 pips. So I am a happy camper!
Elijah has opened my eyes to the best trading strategy extant. The only real profits I have made in Forex have been the result of straddling strategies.
In a word, this is [U]better[/U]!
THANKS ELIJAH!
Well…I didn’t expect to be breaking down this low…I am pretty heavily into it with long trades starting at 207.89 on down…and she is still going down.
Been scalping a bit here and there, but slept last night so didn’t do much. Wonder where it is headed now…what is support after 206.70?
All the better for the ride up!
Todd
We have to expect the unexpected. Ive spaced the trades at about 30-40 pips and place them at areas of support along with a few scalps here and there ive managed to keep about even so far this time around.
rrram, your no longer a newbie… workin your way up… hehe
Absolutely right. The unexpected is to be expected. I am still believing that part of this paradigm is to scalp small incremental trades along the way to increase equity. I often have wondered why it wouldn’t be possible to place a buy limit every fifty pips with a TP of 65 or so…that way the draw down would be minimal. You could still scalp on the way up for the little 10 pip gains. I think rrram does something like this at a certain point in the strategy, but I am not sure exactly when or how (tightly packed on either end and spread out in the middle?)
I am once again being a cowboy and following my faith with this and just doing what I believe rrram is suggesting. I’m sure there are refinements that he makes along the way…he has mentioned several times “tweaking”…I believe I do this as well…putting in a few scalp trades with higher TPs when I see the pair running up etc. I have done very well with it on the last two cycles so I must be doing something right. 
Looking at the 1 hour chart the trend line seems to be up from bottoms (203.30 or so as the start and lowest). Seems like we may see trendline support at 206.30…does this make sense?
This is where it gets exciting, if you did what you should have, loaded up on some longs. I only have 12 and margin useage is at about 4%. So I am good
and getting ready to go away so my orders can hit thier tp targets and close.
I am scalping lots of orders. And sitting with 12 still. Hoping to have a basket full on wednesday 
But if they foil me and hit my TP targets first, I guess I will have to buy more!
If you let me sit and watch price hang, I will get you for ONE pip
95 cents if I have too, 2 times in a row. Last two I should have held on to.
I had one at 206.65 and 206.62 I think I got bored and sold them for 1 pip each.
I still have 12 others with a few gaps but mostly I am 10 pips down from
higher, around 1000 pips drawdown but for the month I think I am up almost that much. I am ok with price and I know it is more likely to head back up now than it is to head down and test 204.
That positive USD news is killing those dollar bears I bet. As soon as UJ pops over 105 and holds, then we should sail up some more.
Of course bernake is talking tonight at 830PM so who knows what he “could” say. It’s the reaction to his casual meaningless comments that could cause some hellacious whipsawing. But as long as you are long and don’t have those bloody Sl’s you are OK.
Even with a basic understanding of this trading system you should at least be making baby pips.
There are many things you need to learn through trial and error.
But with smart margin management you will win in the long run.
You shouldnt be trading with real money to start with until you have some successful demo trading experience with it, and if you are using real money,
YOU should NOT be trading (gambling) with money that you cannot afford to lose.
I cannot over empasis enough the importance of avoiding getting too many too high (TMTH). This can lead to premature failure in a run down.
This run down to 206.50 is nothing. even on my 209.63 I am less than 300 pips down. That one has paid almost 300 pips in Premiums (interest).
That one is a wash. A loss leader. I’m already square on it if it SQR it NOW.
But why? Keep it open collect interest and who cares if it hits its TP today or next week>? or next month for that matter.
so from 209.63 down to current price (206.70ish) I have 12 not 30.
my margin is 4.26% not 15.9% or something already begging for trouble.
I dont know how far I can run down. But I have the attitude “bring it”.
Because I know I cab scalp it in range day in and day out and collect interest
and in the long run the odds are in my favour and it is like I am the casino,
the house, And eventually I always win, You may draw me down
but you cannot hold price down forever, it shall return to its natural progression up. GJ is a cary trade. Goes up slow and comes down fast and hard. SOmetimes it surprises everyone and even goes up fast.
In the long run the pound is a better currency than the Yen.
I am teaching you how to make a profit rather easily with GJ. The trick is to learn this for yourself. SO you can consistantly make 99% profit on all your trades. And forget that 50/50 stuff or worse always losing. Or never able to even get even. YOu have to try stuff, use trial and error, tweak things, modify this or that, change variables, & adapt in changing market conditions.
I can tell you what I am doing and you can learn from it.
You cannot treat this system as if you just won the lottery,
although it is very much like that. You have to be smart and especially patient. I am not saying I am as patient as I would like to be sometimes, but I am always working on it. And thats why God gave me 3 young boys at this point in my life. Because if 3 sons won’t teach you patience…nothing WILL>.
And they are coming in the door in a minute so I am out.
Elijah,
Your system is really outstanding, I would like to ask few questions:
- how do you identify begin and end of the cycle?
- can you please give some example about the used margin/ position size, where to place orders(I know each 9…), but you mentioned all the time clever MM - please help with this stupid question. Just simple example - account with 10K, so how many positions I can open in a down move and on which levels, what should be the catastrophic scenario? even if GJ will reach 189 again? Should I keep all my loss leaders and collect interest? and doing nothing - no new position even for better price? Or add some money to my account and build new positions? I can imagine that I can very quickly reach my 2% risk level, what to do in this case?
I like very much your excellent examples about mortgage, bank strategies and open mind - which was not discussed yet here. Many thanks for your time and for sharing this system.
Best regards Bruno
We are just waiting for Asia to come in. I think we are in for some nice rangey movement which should make for some great scalping for 11-21 pips.
Or even 1-9 pips if you want to go that low. Thing is my broker makes 9 pips on a RT trade so I try to get a minimum of 11. 09 for him 11 for me.
For the month of May I have so far 94RT GJ trades yielding about 1075 pips.
I am down unrealized 976 pips. SO I am doing good I think
There are two very brilliant aspects of this strategy…interest and scalping. You have to get your head around both of these for the system to make sense…
I have been scalping all day…if I was sitting at the computer continuously I would have been doing very well. If you don’t have the time to scalp as the pair moves back up then I’m not sure if it is worth getting into the cycle…maybe it is, rrram can say so or not. I have found though there is a sowing of seed and a collection of harvest. As the pair goes down (or before it does) set up the buy limit orders, as it goes up, close the TPs but at the same time set up another buy limit to fill the place of the one just closed. I am beginning to get a feel for this after readying Elijah’s posts…I will grab two or three pips (more often 6-9) and just set up another trade…although the spread is a killer I am bagging pips all along…my equity gets higher and higher and I am not as concerned about wiping out my loss leader–it is collecting interest…
Elijah…what spread are you paying for a GJ trade? I am at 9 pips and am wondering if this strategy becomes the main trading system for me it would behoove me to find a broker with a smaller GJ spread. That would sure make a difference…wouldn’t it?
Good trading to all!
Todd 
Thats is exactly what I am doing Todd. It works a treat. I have found that sometimes you can re-enter that same trade 5 or 6 times as it retraces.
Happy trading
Grader
But MB won’t let me trade without adhereing to thier FIFO rule,
which knocks me out of the scalping, and forces me to average down
and sell all at once and this isn’t how it works.
Who cares about 9 pips? yes I split the profits 50/50 with my broker.
I averaged just over 10 pips per trade.
Trouble is brokers are hard to find that dont force you into FIFO,
which derails my trading. As I would prefer not to average down.
Especially at a price point where price has crossed several times.
A pivot point even.
I have in my current account almost 15K It started at 10K.
On my 15K I currently have 11 minilots and am down unrealized 800 pips.
but from 5/1/08 I am up about 1075 pips. My margin is 3.83%.
Catastrophic is when you run out of margin, your margin useage exceeds 100% and your broker sells you out forcing you to realize your unrealized loss.
I am at 400:1 leverage. .25% equity in my trades. Well if GJ reaches 189 again you know it is going to bounce up. As long as it would take to get that low you can be making 3000 pips a week scalping them and banking pips on your longs hiutting thier tp targets. Well the idea is to have one loss leader and if the rest turn into loss leaders who cares, keep collecting interest.
Right now if I closed my position I would be up for the month almost 300 pips.
And I am already up almost 5000 pips on this account YTD. putting more money in is an investment that if spent on GJ lots will yield 30% interest per month on your margin tied up in the trade. YOu always want to have lots in range to dump as it is going up. Sometiumes you take 11 pips sometimes 21 or 31. And even you can get daring and hold one or two. After you start making profits and are working on profits you can hold them longer. But I try to scalp them every change I get.
So if I have higher longs sitting there uphigh waiting for price to retrun.
NOw I keep buying in the dips one or two and then selling them at 6 or 8 or 12 pips and then buying again at the same price. Or of ots going up I scalp up, which isn’t nearly as fun as scalping down. I place orders down low to get long and hope price dips and grabs them. I heavily rely on psychological numbers in GJ like the .00 and .50’s, fibinocci numbers in all ways, sma’s as support and resistance levels with fib numbers for time periods like 21 and 55 not 20 and 50. I am always getting new positions but i am dumping them for small profits when price movemment is rangey.
RIsk level at 2% is ideal but you have to push it sometimes. But this margin useage management is the KEY to success in this. You can go 4% 5% but you get over 10 and suddenly its 25 and at 25% you are in trouble but not really
(but thats what you have to think to get this to work so you can live a run down and get more money in if you made an error in your judgement and too many too high. That why demo trading this FIRST is BEST before riskying your MONEY as I dont use SL’s. But I think you will find this works.
I know it does. And I think some other people here are starting to figure it out and all sorts of little things they never have thought of in that way before.
Yes, I was thinking that myself…if the pair moves it moves…brokers should love this strategy.
There is not enough movement today! How boring.