Parabolic SAR - that's all!

capt.findus · October 4, 2007, 5:21am

i don’t want to be the last newbie and annoy someone with unsolicited ideas,

but what about “spinoff” this thread on another site/forum?

like www.onlypsar.com or something like that.

Hypechic · October 4, 2007, 5:52am

You mean create a whole new site/forum just for this thread?

johto · October 4, 2007, 6:05am

Yeah, uh, why? :rolleyes:

dpaterso · October 4, 2007, 6:31am

Hey ‘Just Joan’,

Actually - today would be a good test for my beloved Delta wouldn’t you say!!!

MAYBE I’ll give it a bash to see just how ‘hot’ they are on live accounts when trying to trade news i.e. their ‘normal’ orders are not supposed to go through a dealing desk - only L2.

Regards,

Dale.

pip_huntter · October 4, 2007, 6:34am

Oh that is great so u have some pips sitting beside u!!

for me the commodities behave like the regular pairs but u have to watch the Gold and oil to have a better view about their next step.

Regards,

Akram

Hypechic · October 4, 2007, 6:37am

Dale,
Well as long as you risk only a tiny bit of your account, I guess you could give it a go. I mean, you’re going to be experimenting with ‘[B]real’[/B] money which happens to be yours so I’d rather you be careful.

dpaterso · October 4, 2007, 6:43am

Yeh - no question about that - ESPECIALLY with this EUR/RON ‘nightmare’ at the moment.

I’m serious though - I’ve been sitting here looking at EUR/RON on all the different timeframes - have a look at the 1 hour and 30 minutes with ONLY Parabolic SAR!!! ‘Right of wrong Parabolic SAR’ there is MAJOR bucks to be made on this pair as it pays out BIG TIME and - EVEN BETTER - trading on it closes i.e. not 24/5(7) so it would ‘force’ me to ‘get a life’ instead of sitting in front of this lot for about 20 hours every day!!!

Regards,

Dale.

pip_huntter · October 4, 2007, 6:50am

HYPECHIC,

thanks for your post.Yes i know i am trading news now and it is a fact of life GBP is going to be dropped after 15 mints!!!

Well yeah my broker is having a very very very fast excution process that is why i thought about this trade. Anyways your thoughts was really appreciated and i am still postive on this trade so let see how things will go

Regards,

Akram

pip_huntter · October 4, 2007, 6:53am

Dale,

I am so sorry dude about your postion.BUT as u said it might be somthing good in the future to have a look on it and concentrate more on this pair and that is it!!.

Regards,

Akram

dpaterso · October 4, 2007, 7:05am

WELL - that was a ‘whole lot of nothing’!!!

Anyway - for the record - man - you CANNOT beat this broker (Delta) - execution (‘normal’ market order) took about one second both ways - no requotes - no nothing - just ‘poetry in motion’!!!

Regards,

Dale.

Hypechic · October 4, 2007, 7:30am

Very good news for folks like us. 1 more pro for Delta. I mean so far, the only problem with them seems to be the PSAR calculations…

By the way, I don’t have EUR/RON listed. Actually it’s the only pair missing so instead of having 44 pairs, I have 43. Is it because I’m still demoing?

pip_huntter · October 4, 2007, 7:34am

Dale,

are u going short in gold??? if yes when u did that?

Akram

dpaterso · October 4, 2007, 8:00am

‘Just Joan’:

What can I say??? I placed a ‘normal’ market order to sell the instant that I saw the headline on Bloomberg and then immediately placed another order to close the position and this whole process took about three seconds from start to finish (cost me about $9 but worth it for the ‘test’).

Edit:

By the way - I forgot to mention - that I received the ECB and GBP rate news on Delta’s platfrom a ‘split second’ after it was being displayed on Bloomberg - not bad at all (I actually received the news on the platform JUST as I was about to click the ‘place’ button to place the order. Now that ain’t bad at all)!!!

EUR/RON: have you gone into ‘Trading’, ‘Instruments’, ‘Foreign Exchange Spot’ and then made sure that EUR/RON is highlighted (appears in red)? If not then double click on it and it will then be added to your ‘Foreign Exchange Quotes’. If it does not appear here then you need to click on the little arrows to ‘Update all instruments’ and then find it in the ‘Foreign Exhchange Spot’ group and double click on it to add it to your quotes.

Akram:

I went short Gold on Tuesday night at 00h00 Bulgarian time BUT NOT based on Delta’s Gold chart but based on my other two charts i.e. there is definitely something wrong with Delta’s SAR calculation.

As a matter of interest - if you want to ‘manually visualise’ where Parabolic SAR is SUPPOSED to be on any chart: basically the following has to be true:

The price has to have penetrated (the previous) Parabolic SAR AND the candlestick or bar has to have had a higher or lower opening price and a higher or lower closing price than the preceding candlestick or bar - that is when a Parabolic SAR signal will be given (in the case of a reversal signal anyway). That’s (another) one of the reasons I took the Gold position even although there was no signal on Delta’s chart.

I’ll tell you what I’m just a little confused about though: very little changed on EUR or GBP - they actually have moved up again - and I thought they’re supposed to move down if the rate is kept unchanged!!! Maybe - in this case - because ‘nothing’ has changed - they’ll just keep going in the direction they were going in in the first place but then - if that were true - EUR/USD should be dropping - not to mention the fact that this is NOT helping EUR/RON!!!

Regards,

Dale.

Hypechic · October 4, 2007, 8:11am

Thanks Dale. Got that sorted…finally.

pip_huntter · October 4, 2007, 8:12am

dpaterso:

‘Just Joan’:

What can I say??? I placed a ‘normal’ market order to sell the instant that I saw the headline on Bloomberg and then immediately placed another order to close the position and this whole process took about three seconds from start to finish (cost me about $9 but worth it for the ‘test’).

EUR/RON: have you gone into ‘Trading’, ‘Instruments’, ‘Foreign Exchange Spot’ and then made sure that EUR/RON is highlighted (appears in red)? If not then double click on it and it will then be added to your ‘Foreign Exchange Quotes’. If it does not appear here then you need to click on the little arrows to ‘Update all instruments’ and then find it in the ‘Foreign Exhchange Spot’ group and double click on it to add it to your quotes.

Akram:

I went short Gold on Tuesday night at 00h00 Bulgarian time BUT NOT based on Delta’s Gold chart but based on my other two charts i.e. there is definitely something wrong with Delta’s SAR calculation.

As a matter of interest - if you want to ‘manually visualise’ where Parabolic SAR is SUPPOSED to be on any chart: basically the following has to be true:

The price has to have penetrated (the previous) Parabolic SAR AND the candlestick or bar has to have had a higher or lower opening price and a higher or lower closing price than the preceding candlestick or bar - that is when a Parabolic SAR signal will be given (in the case of a reversal signal anyway). That’s (another) one of the reasons I took the Gold position even although there was no signal on Delta’s chart.

I’ll tell you what I’m just a little confused about though: very little changed on EUR or GBP - they actually have moved up again - and I thought they’re supposed to move down if the rate is kept unchanged!!! Maybe - in this case - because ‘nothing’ has changed - they’ll just keep going in the direction they were going in in the first place but then - if that were true - EUR/USD should be dropping - not to mention the fact that this is NOT helping EUR/RON!!!

Regards,

Dale.

I really don’t know it is a bite of confusing now they both went up and now they are going side ways which is very strange but i think it is too late for them to be judged give them couple of hours . i think they will retrace back.

But there is something new here that the range they were going into is like 30 pips for the GBP and 20 for the EUR and this is weird Dale we should see some spike but no spike what se ever

So for your losing postion how come the intrest rate didn’t get u some pip back!!??

Akram

forexology · October 4, 2007, 8:14am

dpaterso:

Good morning everyone,

Still here - just feeling a bit ‘down’ lately - mainly because I’m not making money - and need to - badly.

I have a few positions open at the moment based purely on our system - waited for ALL our criteria to be met before entering - and these positions just seem to be ‘see-sawing’ between a $1K and $2K nett profit - nothing spectacular - and CERTAINLY not enough to pay last months bills!!!

What makes it SO bad is that I have followed EVERY SINGLE RULE that we have come up with so you just expect that now - because you’re actually sticking to the rules - you should be making HUGE profits and NO losses. I REALLY thought that by following all of our rules I’d have NO losing positions BUT - not so - and it sort of ‘takes the wind out of your sails’ as it were. As an example: EUR/RON is currently at a $4K loss for crying out loud and EVERY SINGLE one of our criteria had been met on this one (and to make matters worse the potential loss if stopped out by Parabolic SAR is nearly $12K).

The above I must just tell you REALLY highlights the fact that we HAVE to somehow ‘weight’ the pairs against each other i.e. you CANNOT simply set your lot size to 100 000 for example and then just buy a single lot of 100 000 units of each pair when you get a signal. In other words - your lot sizes HAVE to be varied according to the instrument that you are trading - otherwise - you land up in a situation like I am where the loss made on a very high yielding pair is negating most of the profits on a number of low yielding pairs i.e. the loss that I’m showing on EUR/RON is not ‘proportionate’ to the profits being made on other pairs. If anybody knows a ‘simple’ way of doing this then please post. I did as MY Customer Support at Delta and they told me how to do it BUT it’s not really a simple task I can tell you ESPECIALLY if you have to do this for 44 pairs AND update it or maintain it on a daily basis.

Now - I see a loads of ‘talk’ about the upcoming BOE and ECB rate decisions - so - I’m just going to ‘throw in’ my ‘trillion dollars worth’ here.

Basically - if you don’t already know it - you’re trying to ‘trade the news’. While this is a perfectly valid way of trading (some people ONLY ‘trade the news’ for a living) there are one or two pitfalls that you had BETTER be aware of RIGHT now.

One of them depends on which broker you trade with. Why should this make a difference? Well - at your average ‘bucket shop’ broker - don’t think for one minute that you’re going to go short GBP this morning and then close out the position a couple of seconds after the announcement at a huge profit - it’s not going to happen!!! Yes - you can get in before the announcement BUT a ‘bucket shop’ broker will NOT execute your exit order immediately and will hold that order until the end of the retractment (there is ALWAYS a retractment after the spike) - and - if you’re lucky - you’ll break even - and if you’re unlucky - if the retractment is severe - you’ll lose money - and DON’T make the mistake of thinking that if this does NOT happen on your demo account today then I must be talking nonsense - trust me on this one - this strategy WILL work on a demo account but it WILL NOT work on a live account - again - depending on your broker.

You must also remember that for the most part interest rates are already ‘built in’ to the current price anyway so trying to make a ‘quick buck’ on announcements like those coming out today are just that - a ‘quick buck’ - and that’s why - if you’re trading the daily timeframes or longer - you’re normally able to ‘ride out’ the inevitable ‘spike’ that comes just after the announcement without getting stopped out - and then things keep going in the direction they were going in the first place (although this MAY not be true in the case of GBP given the current situation with the USD).

To answer some specific questions:

forexology:

What do you mean by ‘pivot charts’? If you’re using pivot points you can (should) manually calculate pivot points each day and yes - pivot points are valid for commodites, metals, stocks, indices, etc. etc. in exactly the same way (remember that these instruments AND pivot points were around LONG before people were able to trade forex pairs).

capt.findus:

I can only assume that you were not trading the daily timeframes otherwise there is no way you’d have been stopped out of these two positions - at least not yet. If you look back on the thread you’ll find that the idea was to switch to a shorter timeframe only AFTER Parabolic SAR had locked in profits on the daily timeframe.

Anyway - I sincerely hope that today brings some REAL profits for everyone.

Regards,

Dale.

Hi Dale:

Welcome back to the fray. Missed you. Sorry to hear about the situation with the high yielding pair. Sounds like you need to consider automated trading since you are dealing with so many pairs. Programme the machine and let it run.

Pivot Charts: Really Pivot Point Summary Tables as the following:

Pivot Points Summary - Forex Trading, Currency Forecast, FX Trading Signal, Forex Training Course, Education, Tutorial, FX Book, Forex ebook, Learn to Trade Forex, FX Guide, Pivot Points, Currency Rates, Forex Secret, Forex Brokers, Currency Trading

dpaterso · October 4, 2007, 8:37am

Hey - where do you find all this stuff!!!

Well done - very nice - sure would be time saving.

Anyway - like I said earlier - MAYBE I should give up this ‘44 pair thing’ and just concentrate on a single ‘outrageously’ high yielder - like EUR/RON or USD/RON or EUR/NOK or USD/NOK (you get the picture)!!! It would sure make my life easier and - by the looks of things - I would (could) make FAR more money in a single day than I’m making right now trying to maintain systems on 44 pairs as well as on the Indices, metals, commodities, etc. etc. etc.

As a matter of fact I MIGHT just close all my open positions right now (the nett result at the moment is pretty much break even) and then try THIS strategy. The basic idea really is that you concentrate on one pair buying and selling in ‘HUMUNGOUS’ lot sizes so that only a few PIP’s movement would yield ‘HUMUMGOUS’ profits (losses???). I mean - my goal since starting out - is (was) to MAKE $500 CONSISTENTLY EVERY DAY (on average). That’s not a lot if you think about it and it’s basically what I need to cover EVERYTHING at month end. I mean - right now - my nett result (profit) as I type is about $700 and that’s on positions that I started opening on Monday for crying out loud. Now - if you think about it - that one single EUR/RON position - although it’s currently a loss - that loss on it’s own right now is about $4K - which could just as easily have been $4K profit - if that makes sense. Also - trading it on the shorter timeframes would mean that your stop losses would be set much closer to the price so your potential loss would be cut AND from what I can see - pairs like EUR/RON don’t seem to be ‘bothered’ by ‘ANYTHING’ let alone news data.

Just a thought.

Regards,

Dale.

pip_huntter · October 4, 2007, 8:47am

ok Dale,

i told u last post wait a bite for the EUR AND THR GBP

have a look now the intrest rate stamenet is right now working!!!

Akram

pip_huntter · October 4, 2007, 8:51am

Dale,

don’t tell me u still have a bad postion i think the EUR is in your faviour now!!!

Akram

dpaterso · October 4, 2007, 8:58am

Yes - I see that - let’s (me) hope it KEEPS working!!!

Today though - you guys did not get to see what happens when a REAL news release affects the market!!!

It’s actually quite exciting to watch (I’ve seen it many times - and YOU’D probably have seen it if the ECB or BOE had surprised all and actually RAISED rates today) i.e. the price ‘spikes’ up or down but like in a ‘split second’ and your chart starts scrolling up or down depending on the direction of the ‘spike’ (I like to ‘watch’ on a ‘tick’ chart or 1 minute chart). It sure does get your adrenaline going no matter WHAT side of the trade you’re on (and when it comes to news I’ve ALWAYS been on the wrong side so that’s why I’m not interested in this ‘strategy’ any more)!!!

Regards,

Dale.