My sistem: Stochastic and fibonacci

[gasanvill]

Hello everyone, this is my system.
STOCHASTIC AND FIBONACCI.

Pair: EUR/USD
Indicators: Show Stochastic (Default Settings)
Max. Risk: 1% each trade.

I have 3 graphics: 4H, 1H, 1H (Fib).

4H: I draw support, resistance, and trend lines, and Stochastic.
1H: I draw support, resistance, and trend lines, and Stochastic.
1H (Fib): In this graphic I draw mi Fibonacci levels, but first I draw horizontal lines separating each day, at 0:00 GMT. (Take a look at graphic#1).This helps to see the low and the high points of each session. At the end i will show you have to draw the Fibs.

First I establish the direction of the trend. In the 4H chart is easy to see if the market is trending or not. Look for channels and trend lines, if you can´t find any then the market is in a range. In this example, the market is in a DOWNTREND. (Take a look at graphic #2)

Once i know the direction of the trend, in this case down, i only look for entries in the same direction, in this case SHORT ENTRIES. I wait until the Stochastic in the 4H chart is in the Overbought zone and then i switch to the 1H chart. Then i wait until the Stochastic in the 1H is in the overbought zone.

Ok, how i draw my fibs? In this case the market is in a downtrend so I draw my fibs according to that. In the 1H (Fib) graph look for the high of the preview day and draw a fib to the low of the preview day. (Take a look at graphic #3). Sometimes the price keeps going lower, so in this case you draw the Fib from last high until current day low. Take a look at graphic #4

So this is how i pull the trigger: I wait until my 1H chart shows Stochastic Overbought and then i see if that point is in the zone of one of the Mini Fib retracement (could be 23.6%, 38.2%, 50% or even 61.8%). If the zone is the same, then I pull the trigger. If you see a Fib retracement, Stochastic overbought and resistance line at the same level, then the signal is VERY VERY strong.

I use 30 pips Stop loss. There is no specific exit point, I usually trail my stop because it depends of the conditions of the market: I look for support zones, Fibonacci levels, etc. I never enter a trade that is less than 1:1 ratio. One possible target is the last day Low (in case of a downtrend).

You have to be patient with this system. There are days when you don´t get any signal, especially Sundays and Mondays. It took me some time to develop this system, and finally i´m seeing some light. I´ve been making 4-5% a week with (real account). I had terrible weeks, but also great weeks. That means that i´m making 16%-17% a month with this system.
Fell free to ask any questions

:D:D:D

[jaquille]

TOUGH QUESTIONS

What is the expectancy of this system or method?

What is the average number of wins percentage?

What is the average win size?

What is the average number of losses percentage?

What is the average loss size?

What was the biggest win?

What was the biggest loss?

What was the longest win streak?

What was the longest loss streak?

How many trades were used to obtain the answers to the above questions?

Were the trades executed with real money?

When did you personally start trading this system or method?

[gasanvill]

TOUGH QUESTIONS

What is the expectancy of this system or method?

What is the average number of wins percentage?

What is the average win size?

What is the average number of losses percentage?

What is the average loss size?

What was the biggest win?

What was the biggest loss?

What was the longest win streak?

What was the longest loss streak?

How many trades were used to obtain the answers to the above questions?

Were the trades executed with real money?

When did you personally start trading this system or method?

To many questions…and not all of them are important. With the first 10 questions you are assuming that the past will repeat on the future, but the truth is that the market is unpredicatable. I´ve back tested docenz of systems, and none of the them seems to work in the future. I have lost real money. So i will ignore them, and only will answer the two last questions.

This systme i developed myself, after a couple years reading, learning, and losing money.

This is important: I´ve been trading this system for six months in a real account, I started with US$ 1,000 and right now i´m with US$ 2,488, that is 16% a month aproximately. This are my rules that i printed and put it on my desk:

• BE FRIEND WITH THE TREND

• DON’T DO REVENGE TRADING

• IS NOT NECESSARY TO TRADE EVERY DAY

• DON’T BE GREEDY

• STOP TRADING FOR THE DAY AFTER 2 LOSSES IN A ROW

• CONTINUALLY SET HIGHER TRADING GOALS.

• NEVER GET INTO THE MARKET BECAUSE YOU ARE ANXIOUS BECAUSE OF WAITING.

• AVOID GETTING IN OR OUT OF THE MARKET TOO OFTEN.

• SPLIT YOUR PROFITS RIGHT DOWN THE MIDDLE AND NEVER RISK MORE THAN 50% OF THEM AGAIN IN THE MARKET.

• THE KEY TO SUCCESSFUL TRADING IS KNOWING YOURSELF AND YOUR STRESS POINT.

• IF A MARKET DOESN’T DO WHAT YOU THINK IT SHOULD DO, GET OUT.

• EXCEPT IN UNUSUAL CIRCUMSTANCES, GET IN THE HABIT OF TAKING YOUR PROFIT TOO SOON. DON’T TORMENT YOURSELF IF A TRADE CONTINUES WINNING WITHOUT YOU. CHANCES ARE IT WON’T CONTINUE LONG. IF IT DOES, CONSOLE YOURSELF BY THINKING OF ALL THE TIMES WHEN LIQUIDATING EARLY RESERVED GAINS THAT YOU WOULD HAVE OTHERWISE LOST.

• BY MAKING THE EXECUTION OF A LOSING TRADE AN AUTOMATIC FUNCTION OF YOUR TRADING STRATEGY, YOU MAKE YOURSELF PSYCHOLOGICALLY AVAILABLE TO TAKE ADVANTAGE OF THE NEXT OPPORTUNITY, EVEN IF THAT OPPORTUNITY IS IN THE SAME DIRECTION OF THE LOSING TRADE YOU JUST GOT OUT OF.

I´ve been down 25% in my account once, but that was beacause i didnt follow my rules. But there is always a price to pay in order to learn this kind of things. So i saved some money and started 100% again. That was six months ago.

This is a free system, anyone can look at it, i will be posting my trades here. If you like it then fine.
If you don´t, then stop reading…
:D:D

[gasanvill]

Perfect entry.

Sell short at 1.3608 (SL 30 pips)

target1: 1.3575 (half of the position)
target2: 1.3500 (the other half).

The trend is down. You can see that the stochastics are close to the overbought zone, and there is a 61.8% fibonacci retracemente. Nice entry! Take a look at my graphic.

[gasanvill]

Closed half of my position at 1.3575 (+33 pips).

My second target is 1.3500

[Sweet_Pip]

Hello everyone, this is my system.
STOCHASTIC AND FIBONACCI.

Pair: EUR/USD
Indicators: Show Stochastic (Default Settings)
Max. Risk: 1% each trade.

I have 3 graphics: 4H, 1H, 1H (Fib).

4H: I draw support, resistance, and trend lines, and Stochastic.
1H: I draw support, resistance, and trend lines, and Stochastic.
1H (Fib): In this graphic I draw mi Fibonacci levels, but first I draw horizontal lines separating each day, at 0:00 GMT. (Take a look at graphic#1).This helps to see the low and the high points of each session. At the end i will show you have to draw the Fibs.

First I establish the direction of the trend. In the 4H chart is easy to see if the market is trending or not. Look for channels and trend lines, if you can´t find any then the market is in a range. In this example, the market is in a DOWNTREND. (Take a look at graphic #2)

Once i know the direction of the trend, in this case down, i only look for entries in the same direction, in this case SHORT ENTRIES. I wait until the Stochastic in the 4H chart is in the Overbought zone and then i switch to the 1H chart. Then i wait until the Stochastic in the 1H is in the overbought zone.

Ok, how i draw my fibs? In this case the market is in a downtrend so I draw my fibs according to that. In the 1H (Fib) graph look for the high of the preview day and draw a fib to the low of the preview day. (Take a look at graphic #3). Sometimes the price keeps going lower, so in this case you draw the Fib from last high until current day low. Take a look at graphic #4

So this is how i pull the trigger: I wait until my 1H chart shows Stochastic Overbought and then i see if that point is in the zone of one of the Mini Fib retracement (could be 23.6%, 38.2%, 50% or even 61.8%). If the zone is the same, then I pull the trigger. If you see a Fib retracement, Stochastic overbought and resistance line at the same level, then the signal is VERY VERY strong.

I use 30 pips Stop loss. There is no specific exit point, I usually trail my stop because it depends of the conditions of the market: I look for support zones, Fibonacci levels, etc. I never enter a trade that is less than 1:1 ratio. One possible target is the last day Low (in case of a downtrend).

You have to be patient with this system. There are days when you don´t get any signal, especially Sundays and Mondays. It took me some time to develop this system, and finally i´m seeing some light. I´ve been making 4-5% a week with (real account). I had terrible weeks, but also great weeks. That means that i´m making 16%-17% a month with this system.
Fell free to ask any questions

:D:D:D

I like the method…it is very similar to the method I’m using…fibs are your friends too…lol

Just wondered why you weren’t using MT4’s “period separators” to automatically put the vertical lines between the days?

[gasanvill]

Just wondered why you weren’t using MT4’s “period separators” to automatically put the vertical lines between the days?

Cause i didn´t know i could do that lol

You learn new things every day…ahhhh i love forex!

[gasanvill]

I saw the trend was losing strength, and also the stochastic at the 1H chart was going into oversol, so i closed my other half position at 1.3530. That is a good indicator to close your position.

Total win today: +78 pips (remember my Stop loss was 30 pips).

In US dollars that was a gain of US$ 58. So i increase my account in 2%, not bad for a day uh?

The main trend remains down, so tomorrow i´ll look to re-enter short at the retracement.

[FiatFap]

Nice system.

[B]I use 30 pips Stop loss[/B]. There is no specific exit point, I usually trail my stop because it depends of the conditions of the market: I look for support zones, Fibonacci levels, etc. [B]I never enter a trade that is less than 1:1 ratio[/B]. One possible target is the last day Low (in case of a downtrend).

From this chart, you have a 300 pip stop-loss and a lot size of 0.08.

300 pips seems large, or did i misinterpret the intent?

[gasanvill]

Nice system.

From this chart, you have a 300 pip stop-loss and a lot size of 0.08.

300 pips seems large, or did i misinterpret the intent?

What are you talking about???

The entry price was at 1.3608 and my stop loss was 1.3638. That is 30 pips. The lot size was 0.08 because i risk 1% of my account.

is more clear now?

[hellogoodbye4201]

Either he uses a mental stop and the 300 SL is just an “OMG WTF” stop, you know, in case a meteor is heading straight for Europe or something. Or, he simply made a miscalculation. Also note how theres no TP.

[gasanvill]

Perfect entry.

Sell short at 1.3608 (SL 30 pips)

target1: 1.3575 (half of the position)
target2: 1.3500 (the other half).

The trend is down. You can see that the stochastics are close to the overbought zone, and there is a 61.8% fibonacci retracemente. Nice entry! Take a look at my graphic.

What part of what i said here is not clear.

SL 30 and two Targets. what is so confusing about it?

[wrtm_19]

Nice system.

From this chart, you have a 300 pip stop-loss and a lot size of 0.08.

300 pips seems large, or did i misinterpret the intent?

The chart you are referring to, contains quotes with 5 digits. The last digit is not a pip, but a pipette. Ignore that digit, and only count quotes with 4 digits, that’s why you count 3000 and not 30.

[FiatFap]

From the chart, i read it as 1.36087 and the stop-loss was set @ 1.36380, so difference equals 293 pips.

This seems to match the dashed red line on your H1 chart, that’s above your trade point.

[FiatFap]

Ah, thanks for that clarification wrtm_19.

Never heard of a ‘pipette’, except in chemistry

Still, the red line in chart seems large gap, as per my previous post. Am i still misinterpreting?

[mykungfuisgood]

Ah, thanks for that clarification wrtm_19.

Never heard of a ‘pipette’, except in chemistry

Still, the red line in chart seems large gap, as per my previous post. Am i still misinterpreting?

mt4, the platform gasanvill is using, commonly shows an extra digit at the end of currencies. I can see how you got confused if you aren’t familiar with mt4.

I’d also recommend looking into it, even if you don’t plan to trade with it, as it is one of the most used platforms and very expandable, such as cowabunga’s plugin for it.

An easy place to get mt4 and a free demo account is ibfx.

[wrtm_19]

Ah, thanks for that clarification wrtm_19.

Never heard of a ‘pipette’, except in chemistry

Still, the red line in chart seems large gap, as per my previous post. Am i still misinterpreting?

The red dotted line right? It’s 30 pips away from entry point.

[jaquille]

Are you going to post setups [B]BEFORE [/B]they trigger or just after the fact?

[gasanvill]

Are you going to post setups [B]BEFORE [/B]they trigger or just after the fact?

If you take a look at the chart i posted, you can see the part at the bottom of the MT4. There you can find the time and the order i put (sell or short). I´m trading in a REAL account, so i have to be very focuse at the market, i dont have time to attatch the charts before, but i´m an honest person that is why i include the time and the order in my charts, so everybody can see i´m not kidding. So maybe you need to watch my charts closely before opening your mouth. This is the last question i answer to you, if you want to take it personaly go ahead i don´t care. I don´t know you, i ´ve never heard of you before, so for me you are only another frustrated trader. From now on i will ignore every comment you post in here.

Those who want to follow my system and learn the power of fibs, trendlines, and stochastics, you are welcome. Tomorrow i will be at the start of the NY session take care!

[gasanvill]

Goog morning everyone!

We had some news released today, so we have to be really careful before we place an order. Let´s watch how the market reacts.

As you can see in the graphic we had a little retracement to the 23.6% of the Fib. The sochastic in the 1H charts still doesn´t give any good signal, so lets wait if can get a good retracement to enter short, or maybe the prices break the support level of 1.3440