Since I�m going to be posting trades on my new BabyPips blog I thought I would share the method I am going to be using to give these trades.
Right off the bat, I should say my method is not for the super-active traders. I take 1-2 trades per week with an overall target of 100 pips per week. The rest of my week is spent doing what I love; sport, PC games and pretty much just enjoying life. So, if you love sitting in front of your computer watching charts 16 hours per day (believe it or not some people do) my method is not for you.
If you�re not scared off yet maybe these points will help:
I do not use any indicators
I trade only one pair (GBP/JPY)
My stops are around about the same as my targets
My trading method does not conform to the conventional bullsh**t parameters set by false prophet trading gurus.
Now that�s scary!
For those of you still with me here is something slightly more comforting. My trading method has an 80% success rate, so I win on average 8 out of every 10 trades.
My method is all about low stress trading. All I use are candlestick patterns, support and resistance lines, and price action. I trade the 4hr GBP/JPY chart and remember I target 100 pips per week.
Since my method requires some actual thought (not just an MA cross over method) it�s too much information to post here. So, here is a link to a free e-Book which details my method.
Please direct any questions about my method to this thread. Look out for my BabyPips blog, for the latest trade calls based on my method. The blog should be up sometime this week.
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I started reading through the e-book yesterday and plan to finish (the first of several readings) this evening. It is very well thought out and presented and even though I’m as new as they come, I’ve seen the “worthlessness” of indicators already. I’m averaging around 600 pips/week with the system I’m testing now, but I ran it through the back tester and it’s not consistently profitable so I’m still trying to find or come up with my own system that is more consistent.
Thanks for your work on this…I can’t wait to finish reading and test it myself.
This is VERY close to how I trade, except I move to various pairs, wherever I think I can gain a better edge. I think if everyone was really serious about getting rich from FX trading, they’d start to realize they wouldn’t want to be sitting at the computer trading all day! I think they are trying to be reasonable and modest, but the fact is, there’s profits to be made on all the timeframes.
I hope this thread pans out into something that gets noticed, since I can personally vouch for this type of trading’s profitability!
There is a small but vital point that eluded me earlier. My method as it is explained in the book is tailored to suit my personality. Nobody should read this e-Book and copy me exactly. A true trader is an innovator and an individual.
If you�re interested in trading my method you should take the three basic principles:
Candle stick patterns
S+R lines
Price action
and use them to build a method that suites you.
For example above akeakamai mentioned that his trading style is very similar to mine apart from the fact that he trades multiple pairs. There is nothing to say that you cannot use those three principles and apply them to pairs besides GBP/JPY.
So do not come out of this e-Book trying to copy me. I am successful because I developed a method that suits my personality. You can trade my method but change it to suit you, don�t change yourself to suit it.
I trade straight reversals (rarely breakouts) with no confirmation, using limit orders, based off S/R lines on the 1hr chart, primarily on EUR/USD, and occasionally other majors. But that said, there are things in here which I really like and will look to incorporate.
The biggest thing which came as a surprise was your use of scalp lines as breakouts. To me, these are weak S/R are best for managing your trade but not for entries. How successful are they compared to your bread and butter trades of S/R breakouts?
Hey Nick! Thanks so much for your e-book, which I am working through.
I noticed that you mentioned that the most volume occurs during the European session (starting at 3:00 am EST I believe). Does this mean that you ignore the markets when the European markets are closed?
I also read that you never recommend holding a position over the weekend. Have you ever held a position open for several days though (in the middle of the week)?
Nick great ebook!!! You leave no question unanswered. I like your simple system utilizing the support and resistance levels. I look foward to your blog entries.
Hahahahahaha I wouldnt go so far as to call indicator’s the devil’s work. As I’ve seen some of the bloggers here use it. In fact Pip surfer’s system is heavy on indicators.
I am glad you are trading your system with us all. The best systems will always be indicatorless, but people fear them because if they are not mechanical, they are more vulnerable to emotions, thus they shield themselves with a pile of indicators. In they end, most of them lose because of that! At least, that’s what I think.
I’m trying my best to learn to read price action atm, so any hint and tips you post here will be most welcome!
I’ve posted this question on your blog, but just thought I’d post it here too for those in the forum.
Your blog mentioned that one important trait a trader must have is patience, including knowing when NOT to trade. You said “Sometimes, I look at the market and I think, ‘This is untradeable’. Sometimes this happens every day for a week. The market can be completely untradeable at times, so I won’t trade for that whole week.”
I think one of my biggest struggle right now is knowing when NOT to trade. I’ve already been taught to avoid news time as well as illiquid hours. But there are very few lessons out there on how to look at a chart and say “forget it”. We newbies can’t tell that we’d be rough waters until AFTER we came out all bruised and beat up. Other than news time, holidays and thin-volume hours, can you give us some tips on what you see on the charts that make you just walk away for the day/week?
Price action is a VERY tough subject to write about. The problem with price action is that it’s something you learn with experience rather than something hat can be taught.
However I am currently working on an article in which I explain price action as best I can. I have no idea when i will be done but keep an eye out for it.
I trade at any time of day but I do lower my targets outside of the London session. Generally speaking the Asian session is less volatile so I drop my targets on normal S+R line breaks down to 50 and scalp line breaks down to 30.
This is only a general rule though and the lowering of my targets is always dependant on the volatility of the day. If it is a very fast moving Asian session I will keep my normal targets.
As for holding a position for several days, no I do not. If it doesn’t work out within the first four 4hr candles I cut my losses and bail. Again this is a general rule only, if the 4th candle happens to be a doji suggesting a reversal in my direction I will obviously hold the position. I don’t see any scenario in which I would hold for longer than 1 day though and it has never happened.
The interesting thing is that lately scalp lines seem to be working much better than normal S+R lines. To be honest scalp lines are becoming my ‘bread and butter’ trades.
I�m a german newbie in forex trading. I hope my english is not to bad (my english spelling is not the best :rolleyes: )
I�m read your e-book Nick. You sayed any questions about placing s+r lines can be wrote in this forum.
okay. i�m looking @ the gbp/jpy 4h chart. actually it is not easy for me to find s+r and places the lines. can you tell me: are the long scalp lines (green) right? For example the long scalp line @ 151.13?
The resistance lines are blue. That�s my first contact with s+r lines. After I reading your e-book and blog articels, i�m very interessted in your method. I�m want to improve my trading.
