Macfibo system

[sufiansaid]

@Muneeb

I am stuck on this Buy signal from 3 hours, what should I do? Close or wait?

Hi Muneeb,

I dont have my charts right now but assuming that your entry was after London close, then, as I adviced you to trade according to the rule in terms of trading sessions, you shouldn’t be in the trade in the first place.

Assuming it was during London Open then you shouldve stayed in the trade as there was no signal to exit the trade yet. Be very objective in your current stage of trading. Eliminate guessing in your trade, eliminate discretion in your trade… In your current stage that is.

Finally, I mentioned this before, the moment you feel unsure about your trade or what to do, meaning u shouldnt be in the trade in the first place. Exit immediately, that is part being objective too. I understand you are learning buddy and i admire that… So take my advice : learn to be objective and stick to the rule. This goes to all newbies who reads thisnthread… I totally understand what you are experiencing right now. Just Keep digging brother. Keep asking questions, i am here to help.

[sufiansaid]

I have spent a lot of time reading about and then testing peoples systems here on BabyPips but I think this is the first one that has really worked for me. Perhaps it is because it makes sense. I understand moving averages and had already spent some time using Fibs, so to combine the two work…

Thank you Sufiansaid

I am very happy to hear that you find the system works for you. And very happy that you donthendirty work as well : backtesting. I totally understand how it changes your confidence and stuff. Keepmreading and ask as many questions you wish.

[sufiansaid]

I think you have no option than start a new short/long entry, because that’s what a re-entry is about (of course you should follow the rules for secondary signals stated in v1.1). About choosing level for TP I should say that it depends on additional analysis (S/R, daily pip range, what session you’re trading in etc), but I must admit that choosing 161.8 level is quite safe, although you can aim for more pips if you are sure enough.

PS: sufian, I remember reading your post about you being a little disappointed with the way you expressed information in v1.1, but I want to take the opportunity to thank you for this system update and say that personally for me it was 100% clear and useful, so maybe it is not as bad as you think I must say its great anyway!

I seconded the answer. Though I mght want to re-iterate to keep everything simple for now and just TP according to the rules I stated in the document. My rules on tp on secondary signal are based on statistic results after backtesting and live trade logging so its there as a ruke for a reason. I cant stress this enough how guessing in trading will kill you in the long run… Even discretionary analysis is based on objective rules so just keep it simple.

Confirmado, I am currently doing the Macfibo ver 1.2 (just revision of ver 1.1) cosni do feel it needs improvement. Thank u for the kind words and also thanks to you and cryagony for answering questions when i was not online. Instant response should be the thread’s niche hehehhehe

[sufiansaid]

Gold reverses up to 80 pips very often? It reverses by this much and then still hits the 161?

News spike normally causes the price to jump/fall this big… That is why fixed SL at maximum 1:1 should avoid this to happen.

[vessel18]

Anybody know what the big news was this morning at around 8am London time? I can’t find anything significant on the calendar.

I confidently entered a short trade on GBPUSD at the close of the London 8am candle, a valid signal. The 1.618 fib was a fair way from what I considered to be the significant support level from the last few days so set that as my TP.

I set my RR at 1:2, which I’m glad I did. No sooner had I entered the trade, the price shot up to hit yesterday’s high.

Because of the speed of the price rise, I can only assume there has been some news - any ideas?

[Yaman]

I confidently entered a short trade on GBPUSD at the close of the London 8am candle, a valid signal.

If it is any conciliation I did the same thing, my first loss with this system. I can only assume it is the London traders getting ready for the CPI announcement at 9:30

[alfa2]

Anybody know what the big news was this morning at around 8am London time? I can’t find anything significant on the calendar.

I confidently entered a short trade on GBPUSD at the close of the London 8am candle, a valid signal. The 1.618 fib was a fair way from what I considered to be the significant support level from the last few days so set that as my TP.

I set my RR at 1:2, which I’m glad I did. No sooner had I entered the trade, the price shot up to hit yesterday’s high.

Because of the speed of the price rise, I can only assume there has been some news - any ideas?

For me the cross was [B]in[/B] the candle, therefore I was waiting a closing candle after the cross, thus I have escaped this loss. I understood the manual of Sufiansaid that enter if after the cross there is a closed candle, which confirm the trend

[vessel18]

For me the cross was [B]in[/B] the candle, therefore I was waiting a closing candle after the cross, thus I have escaped this loss. I understood the manual of Sufiansaid that enter if after the cross there is a closed candle, which confirm the trend

On my chart, the cross was at the close of the 8am candle. It was a small cross, but it was a cross! It was also one of the few times I was on hand at the close of a signal candle to get in nice and early! Oh well, look for the next one…

[Muneeb]

Hi Muneeb,

I dont have my charts right now but assuming that your entry was after London close, then, as I adviced you to trade according to the rule in terms of trading sessions, you shouldn’t be in the trade in the first place.

Assuming it was during London Open then you shouldve stayed in the trade as there was no signal to exit the trade yet. Be very objective in your current stage of trading. Eliminate guessing in your trade, eliminate discretion in your trade… In your current stage that is.

Finally, I mentioned this before, the moment you feel unsure about your trade or what to do, meaning u shouldnt be in the trade in the first place. Exit immediately, that is part being objective too. I understand you are learning buddy and i admire that… So take my advice : learn to be objective and stick to the rule. This goes to all newbies who reads thisnthread… I totally understand what you are experiencing right now. Just Keep digging brother. Keep asking questions, i am here to help.

Thanks for the advice bro, I kept forgetting the rules about London close duhhh… I should stick to them. And I will keep that in mind next time

[sufiansaid]

Anybody know what the big news was this morning at around 8am London time? I can’t find anything significant on the calendar.

I confidently entered a short trade on GBPUSD at the close of the London 8am candle, a valid signal. The 1.618 fib was a fair way from what I considered to be the significant support level from the last few days so set that as my TP.

I set my RR at 1:2, which I’m glad I did. No sooner had I entered the trade, the price shot up to hit yesterday’s high.

Because of the speed of the price rise, I can only assume there has been some news - any ideas?

Well done! I know what you are thinking “I lost a trade and he congratulates me?.. what is he on?”… Let me explain. Entering a trade and setting a TP is the easy part. Identifying your risk BEFORE you enter a trade, setting a SL, following your trading rule and actually thinking of the risk BEFORE pulling the trigger and MOVING ON as soon as your SL got hit. So… well done. You are doing OK buddy.

[sufiansaid]

If it is any conciliation I did the same thing, my first loss with this system. I can only assume it is the London traders getting ready for the CPI announcement at 9:30

Spot on buddy!.. there is a thing called ‘alleged leaked report’ rumour that could get market excited. Don’t take my word for it. I’ve read it in two books that mentioned about this.

[alfa2]

On my chart, the cross was at the close of the 8am candle. It was a small cross, but it was a cross! It was also one of the few times I was on hand at the close of a signal candle to get in nice and early! Oh well, look for the next one…

Do you see Vessel? If you enter as I said at London 9.00 am candle opening, you could have now a profit at fibo 168

[vessel18]

Do you see Vessel? If you enter as I said at London 9.00 am candle opening, you could have now a profit at fibo 168

I’m pleased for you that took a good trade, nice one!

But my point is, why would I wait for that candle when I saw a valid signal at the close of an earlier candle?

Hindsight is always perfect, it’s foresight we need!

[cldchc]

I’m a bit confused.
Example:
account equity: 1000$
risk: 2% of account equity = 20$
so i fixed my possible loose to 980$ right?

Now how can i set my Position size?

[richhand]

I’m pleased for you that took a good trade, nice one!

But my point is, why would I wait for that candle when I saw a valid signal at the close of an earlier candle?

Hindsight is always perfect, it’s foresight we need!

Im pretty sure that once the cross over occurs you enter as soon as the candle closes.

[richhand]

I’m a bit confused.
Example:
account equity: 1000$
risk: 2% of account equity = 20$
so i fixed my possible loose to 980$ right?

Now how can i set my Position size?

Im not sure what your meaning. Have you had a look through the relevant section in the babypips school including the r:r and pips calculators?

[sufiansaid]

I’m a bit confused.
Example:
account equity: 1000$
risk: 2% of account equity = 20$
so i fixed my possible loose to 980$ right?

Now how can i set my Position size?

980??? No NO… your fixed loss is 20$ and your potential balance after a loss is 980. So after supposedly 10 consecutive losses, you will lose 20% of your account.

[vessel18]

@richhand

Im pretty sure that once the cross over occurs you enter as soon as the candle closes.

Thanks. So, was I right to enter at the close of the candle during which the cross happened (ie, the cross was there at the close of the 8am candle) or was I supposed to let the cross happen, then wait for the close of the next candle after that?

I’m attaching the chart that shows that, as at the close of the 8am candle, the cross had occurred. Just…

[cldchc]

ok right. basically this could be a guideline table for position size:

account equity: 1000$ Position size: 0.1 Possible loss per trade 2% = 20$
account equity: 2000$ Position size: 0.2 Possible loss per trade 2% = 40$
account equity: 3000$ Position size: 0.3 Possible loss per trade 2% = 60$
…
account equity: 10000$ Position size: 1.0 Possible loss per trade 2% = 200$
account equity: 11000$ Position size: 1.1 Possible loss per trade 2% = 220$
account equity: 12000$ Position size: 1.2 Possible loss per trade 2% = 240$

[richhand]

@vessel18

Thanks. So, was I right to enter at the close of the candle during which the cross happened (ie, the cross was there at the close of the 8am candle) or was I supposed to let the cross happen, then wait for the close of the next candle after that?

I’m attaching the chart that shows that, as at the close of the 8am candle, the cross had occurred. Just…

I entered at 8am as you did (as the last small red candle finished) and lost out of course. I suppose that is the risk of entering as the london open is beginning. Im sure Sufian will confirm whether this was the correct time to enter.