Why is the box I have edited into your picture not an engulfing bar?
I never read anything he is selling. Why not give the man a chance to explain more. You are just closed minded. Yet you never shared yours.
Very good question sir. If you look closely at the green candle within your yellow box, do you see the tail? Well that too must be engulfed. 
As that makes up part of the green candle.
Would you please be more open with your myfxbook ? I cannot fully read it. Thanks.
A bit hard to tell because the grid is not perfect, but i see 3 bull engulfing bars. The 6th bar in the blue box is engulfing the 5th bar in the blue box, the 9th bar in the box is engulfing the 8th bar, and the 18th bar is engulfing the 10th bar. I am assuming the number of pips gained is equal to (profit) the range of the blue box (minus the bullish engulfing bars) and subtracting the losses (the bear engulfing bars). Again, it’s hard to tell the actual number of pips because the exact number of pips per each bar is unclear
Thank you for responding. Now in order to find out the correct answer, you would simply open the same TF which I used in the picture (1M) and look for the same formation of candles. My broker is set to London time, so you would simply have to subtract the difference between your market watch time, and the one which I have used in the picture in order to quickly find the formation which was being discussed.
The following is a picture with the answer to my question. Well without the pip count.
Do we have any questions about the orders which were placed? Remember we should never experience 4 consecutive losses. If we do that means we are now officially in a range (Accumulation) at which point we halt trading.
I dont understand your method. Trade u only engulfs in m1?
Perhapse I should create a youtube video. Maybe that will help. As for only trading 1m, the answer is no. I primary trade on 5m and 15m and I use 1m for my exit. What I will do is upload a youtube video speaking about this engulf method and maybe that way it will be much easier to comprehend. I am very sorry I couldn’t explain myself in a manner in which you could understand. 
Master, show us some live action !!! 
Bro, always keen to learn, look forward to more
I will try to make it easier for others(me including to understand his method).
[B][U]What is Martingale and Binary options
[/U][/B]1) [B]Martingale [/B]- Doubling up of your money/wager for every trade/bet that you lose. The law of probability states that you will eventually win and will never lose indefinitely. Thus if you bet $2 and lose you do the exact same bet again and put in $4 and if you lose again you double that to $8 and then $16 and so on until you win. Your eventual win will cover all your previous losses and make a small amount of money for you. Not hard to see that you need deep pockets and an appetite for risk doing this method.
- [B]Binary options [/B]- It is a “simple” type of options. Options are a favourite tool for hedging used by the big boys and to a certain extent the general investor/trader as well. In simple terms a binary option is a form of trade that gets exercised at the expiry date. Example you are in a normal FX trade shorting the EU. To hedge your position you buy a binary option that will be exercised at the end of the day that says that a trade will end up bullish(normally a certain price will be stated in the contract) at the end of the day or other determined time period. What happens in this case is if your initial EU short went the other way and hit your SL you will incur a loss. But because you took a Binary Option contract that gets exercised at the end of the day for a long position of EU you essentially covered your loss and potentially can make some money as well.
[B]MasterKiwa’s(MK) strategy:[/B]
MK please correct me if I am wrong.
- Go to M1 TF and decide the trend.
- Look for an engulfing candle be they a bullish engulfing or bearish engulfing candle. Enter at the close of the engulfing candle.
- If another engulfing candle that is opposite to the candle you entered appeared. You close that position for a loss and enter in the direction of the engulfing candle.
- If after 4 trades and you are not in the money, you stop trading until another trend appears. You stop because the market is in accumulation mode i.e. ranging.
The 4 steps above identifies entry and stop loss.
[B]Take profit:[/B]
- Ride on the profitable trade until it hits another opposite engulfing candle and close?
Not explained yet exactly how to TP.
[B]Questions:
[/B]1) Does the direction of the trend matters?
2) Is this method only for trending markets meaning you don’t enter in a ranging/accumulation market?
3) Do you blindly take any engulfing candle or are there other confluencing factors to consider before opening a position?
4) How do you determine the R:R?
5) How do you determine the TP? Do you only have 1 TP or a few? Do you use trailing stops?
6) Do you move trade to break even after a certain number of pips?
7) Does this only work for M1?
8) How do you use Binary Options and martingale in this strategy?
9) Do you use any indicators?
10) How much do you risk per trade?
11) Your MyFXBook shows all(there are 5) profitable trades. Why is it that there are no losses? It means you have a certain setup you look for before entering. What is the setup?
Thanks.
Yes. Interesting concept. Good questions.
An engulfing candle traditionally means that that it’s range from high to low after close completely engulfs the range of the previous candle.
Is it possible that when you say engulfing candle you are meaning the first candle to break above or below the previous engulfing candle’s high or low? Doesn’t have to directly be the previous candle? The charts shown seem to indicate this.
If you go to “Custom Analysis” on his Myfxbook you will see that he set a custom start date for the system to make it look more impressive than it really is. Yes, he had a return of 800%… After drawing down his account by 95%. Meaning, he’s still 40% in the red overall.
[B]Martingale does not work over the long term.[/B] If you had an [I]actual edge[/I], you would not need to use Martingale. That much is mathematically obvious. Using Martingale only prolongs the inevitable death of the wannabe trader’s account.
I agree with what you said about Martingale. I’ll never ever do that. FYI I am also an FSO member(and I love his method and it works) and I saw a recent thread about you trying out scalping and interestingly I have also been experimenting with scalping for the last 2 months. Hence the reason I came into this thread.
Results haven’t been great but I’ll push on.
Your pessimistic view of the market doesn’t allow you to see the edge which one actually has. Martingale indeed works over the long haul(well the form of martingale which I use) as one never (using my setup) should never experience more then 4 losses in a row. That is your edge!
Do recall our setup calls for a 1:6 R:R which means once you have gained 6 pips before ever losing 1 pip OVER YOUR SPREAD (actually closing in red), you have actually entered into the sweet spot of the market. By the time you have experienced your 2nd consecutive loss, you have a much higher probability of hitting your 1:6 RR with the 3rd or 4th order.
Many of us have the expectation of never blowing our accounts, or accurately predicting the future. I honestly won’t get into the subjective discussion. What we can bet our money on is the market does TRADE in cycles, even on the lower tf, and you simply have to wait for the correct setup.
To have a winning streak which results in say 800% profit, when about 6 pip loss will margin call your account, should reveal the accuracy of following this method (Although it is simplistic in form), and how when mixed with binary options + multiple accounts to back up various orders (variations of extensions/reversals) you will actually see the edge unfold.
My intent of sharing the information which I’ve gathered over the years, is to prove to the noobs that trading on lower tf (atleast understanding what it is you’re looking at) will increase your overall % return. Yes, you [B][B]may[/B][/B] end up margin calling your account, but if you display proper money management and withdraw your profits before you do so then you’ve accomplished more then what most traders are able to accomplish in their life time as traders.
Questions
- Does the direction of the trend matters?
[B] The trend in nature for the form of trading which we are taking part in is subjective. In away the trend matters, but you can counter trade the trend (orders 2, and 4) and still hit the RR of 1:6… One thing noobs and even “expert” traders fail to understand is the reversal can never be accurately predicted. With this same system I was able to pull of 14 consecutive wins. Has anyone been able to accurately predict the reversal of any currency even 5 times in a row with a PIP-DRAWDOWN of even 10 pips? The reality is no one can predict the reversal of a currency because the two most important factors in currency are ALWAYS unknown… (The amount of liquidity which will hit the market at any give moment, and the orders which sit at any given range). Without knowing those two factors, we are simply (scalpers and swingers) living our position to luck.[/B] - Is this method only for trending markets meaning you don’t enter in a ranging/accumulation market?
[B] You are correct, as I recall you mentioning that I’ve mentioned after 4 straight losses it confirms the market is in an actual range. Although one can actually profit inside a range, you stand to make more playing the breakout of the range. [/B] - Do you blindly take any engulfing candle or are there other confluencing factors to consider before opening a position?
[B] Nothing within this system is taken blindly. The very first thing which is looked for is accumulation. Usually the market is in a range right before 7:00 gmt! So once the market breakout of that range, and we get the very first pull back (back into the accumulation is the point in which begin to calculate our entries looking for the first engulfed pattern.[/B] - How do you determine the TP? Do you only have 1 TP or a few? Do you use trailing stops?
[B]Our take profit is almost always 6 pips, but is activated with a trail stop. Which is why some positions you will notice 11 pips profit was taken, as the price usually resulted in a quick spike in our direction, at which point we trail with 5 secs to go within that open candle.[/B] - Do you move trade to break even after a certain number of pips?
[B] Never do we trade break even, as our stop loss is always on the engulf of the very candle which we’ve entered.[/B] - Does this only work for M1?
[B]Works on all tf.[/B] - How do you use Binary Options and martingale in this strategy?
[B] That will be explained in detail in future. [/B] - Do you use any indicators?
[B]No[/B] - How much do you risk per trade?
[B] It depends on the formation and the account size [/B] - Your MyFXBook shows all(there are 5) profitable trades. Why is it that there are no losses? It means you have a certain setup you look for before entering. What is the setup?
[B]That is correct… Just happens to be that the setup I was looking for happened to be the winners.[/B]
Here is a trade I have just closed. I was shorting E/C based on the formation on the 5m chart. 6 pips loss would of taken the account down the drain, but based on the rules which I have shared with you, it resulted in a double of this tiny commission account. So a R:R of 1:10 on that one trade.
You are correct sir!
Hello Mihk. I am currently mobile, so I haven’t had the chance to watch the video which you have posted. My question to you is would you please be as kind enough to re-cap the video for me please.