More tips on trading kof with the trend and flipping accounts coming soon.
Green Arrows on chart below are key points with accompanying text.
Look how easy this one would have been
Look how easy this one would have been.
If you read my previous posts, you can tell that I’m not a very skilled trader. Still, cost averaging has saved me from myself.
I entered a short position on EUR/GBP at 21:17 UTC yesterday (4/20) when it printed a big green candle on the 1 min chart. If you look at that chart, you can see that was the worst possible time to go counter trend on that pair. I carefully placed recovery trades untill 1:33 UTC. At that time, I couldn’t babysit it anymore, so I place a take profit and stepped away. I had 1/6 of my account committed. I went to bed with the trade open.
How it started:
I woke up at 14:10 UTC, to find that it had gained 51 pips since my initial short entry. It had blown past so many resistance levels that I had to zoom out to a 30 min chart to find the next resistance level. I saw that it was losing momentum as it neared that 30 min resistance level, so I placed a significant amount of recovery orders which pulled my average price up quite a bit. I now had a little less than half of my account committed to the trade. I couldn’t watch it, so I brought my take profit up so I would have a modest profit, and walked away. I came home to find that it had fallen, hit my take profit, and grown my account 1%.
How it ended:
The moral of the story: Cost averaging can save you from your own incompetence.
1 Like
Wow.
You have shown both how important it is to determine trade type (Trend or Counter Trend) and that patience and cost averaging can save you if you choose incorrectly.
Few us us would have survived that trade like you did.
Amazing!
1 Like
Don’t I know it! I got stuck in a tough trend everyday this week, which isn’t efficient, or compatible with my lifestyle, but I still made it work. I need to improve in my market-reading skills.
Despite that, I’ve consistently grown my demo account an average of 1.5% a day, which compounds at a ridiculous rate if you can stay consistent.
On Monday, I’ll start live trading with a small amount and slowly scale in my capital if things go well.
I’ve watched a few KoF videos where he trades with the trend. It seems that he keeps adding positions if all goes well, and even waits out a few pullbacks while he waits for the trend to continue. What I haven’t found, is a video where the trend turned against him. I’m trying not to use stop losses, because I feel that not using them was a turning point for me.
2 Likes
This morning was the first time I was counter trend trading and barely went negative on any of the 4 trades.
Getting better.
As for a video of a trade going against KOF, I have watched many of the recorded live trading sessions as well as his live ones that he used to do on YT. Never have I seen him lose a trade. Never. But he does admit that everyone will have them. But I’ve never seen a trend go against him.
1 Like
One of the members on the Forex factory message board for KOF uses RSI overbought/oversold levels as a confluence for counter trend trading. I may consider using that to improve my entries. I’ll do some testing on that this weekend.
1 Like
Hello everyone,
I’ve been quitely following and reading through this thread for a few days now.
Started with the channel strategy, followed by the PSAR one, and finally decided to give KoF a try.
Absolutely mindblown.
I’ve been trading on and off for almost 8 years now, never consistently profitable, but this might just be the jackpot.
As you can see in the following screenshot, there are many ways to alter this strategy.
What I can see though, is that most, if not all trends, do retrace.
Some 20%, some 100%, and everything in between and above/below.
The idea with KoF strategy is, in my opinion, not to use big lots, as they can add up. Either way, what do you have to lose by using small(er) lots? Consistency is key.
I am using KoF’s emas (9,20,50,200), but also added the Stochastic Oscilator(14,7,7).
The oversold/overbought area on the Stochastic, followed by a cross of its emas, might just point out the end of the ride, and might indicate a pullback.
Also, why not use Market Structure to indicate a possible pullback as well, or at least an entry?
At (1), I entered the first sell, as a large move up was created, away from the 9ema.
At (2), as price broke below last low (market structure shift/break of structure), but also as the stochastic showed a comeback from the overbought(after its emas cross down), I entered another sell.
For TP, it’s obviously personal.
One more thing:
What if we increase our lot size by small bits, when the trend is really strong?
In our example above, what if we entered first with a 0.1 lot and then with a 0.15 lot (0.05 increments), or a 0.2 lot(0.1 increments or double the previous lot aka martingale).
Obviously you would take more risk but by using small lots it’s pretty safe, also your breakeven point would be closer to the most recent entries, therefore you would not need such a big of a retracement.
Feels amazing having discovered this thread and AT’s ideas are just mindblowing.
All the best everyone
2 Likes
Thanks for posting Dragos.
Glad to have you here and sharing your ideas.
I liked what you had to say.
There is definitely room for each of us to modify the basics toward what works best for us! In fact, I have a theory that we start with more indicators at the beginning of our learning path and eventually remove many of them when we have achieved mastery of the strategy. So having more at the beginning helps us with the psychology and the confidence until mastery is accomplished.
That’s why I have more indicators than I really need. There’s nothing wrong with it and its a normal, HELPFUL part of the journey.
I am sure your contribution will help our forum members and friends on their journey toward success.
2 Likes
Yeah I agree with starting out using indicators and then remove them as we build our confidence. I was thinking of using these indicators from the forexfactory thread:https://www.forexfactory.com/thread/post/14318063#post14318063
I was just thinking aloud to myself.
There are a number of people on here who say they can write code, which I gather means they have the ability to create Expert Advisors (EAs). So one or more of them could actually create an EA based on this strategy and currently be making a killing? Or is it that they are not so skilled?
Just wondering.
I’m writing an ea on something that is very smilar to the KoF strategy, but I doubt it will work. His strategy is discretionary and requires knowledge of the markets to determine when to be in or wait. I don’t know how to code that.
If backtesting works, I’ll forward test and log on here.
1 Like
What about long/short grid trading/portofolio management?
We set up 10 pip intervals for example on 1m, enter both buy and sell at each level.
We take profit at the next level for each previous order(buy for a lower level, sell for a higher level) and close the negative trades when they break even eventually, by dollar cost averaging?
That way, even if at the end of the trading period(day), we are in bit of a drawdown from the negative orders that haven’t yet experienced a retracement(dollar cost averaging), we have still made money from level to level…
Obviously, using small lots so that drawdown is manageable. 
For example, 0.05 lots for a $20.000 account
Easy way to help determine subsequent entries and exits on KOF with trend.
Green PSAR. Correct settings are 0.009/0.07.
(disregard white PSAR. That is my 0.0009/0.015 for long trends)
Flip your account.
**Things like this should be easy to automate.
bigger picture with earnings.
I am considering that a SL just below PSAR may be acceptable and may be a key to make apprehensive traders take another look.
Here it is with only the 200 ema to make it clearer.
What are the settings for the green PSAR?
This means 0.01 step and 0.07 max right