To answer your first question… Yes we ALWAYS take the opposite trade once the first order has stopped out. Reason being is because we never really know where the reversal or extension will take place. What we do know is that on every extension/reversal there is one candle which never gets engulfed. So by taking/closing a position after an engulf you can rest assure that you will be at the start of either an extension or reversal.
So say the move is up… Your first order would be a BUY (WITH the trend), Sell (Against the trend ; first order), Buy (With the trend; second order), Sell (Against the trend; second order)…
The bouncing off the MA line is your first order WITH the trend AFTER you have calculated the fibs, and you have broken the -23.6 or 123.6 This is important for the following reason. Once we are in accumulation, and either of the aforementioned fibs is broken you will notice that the price almost always attempts to head back into the accumulation zone. This is done to fake those who play the extremes (high and low of the accumulation level) into thinking that the push across the -23.6 or 123.6 was a fake. Below is the perfect illustration.
Each box which is highlighted displays a crossing of the two ma lines (ma 10 and 34) which we use. After the third crossing we then calculate the highest price of the LAST MOVE UP, and the last low of the retrace down.
The picture below shows you the rest of the move and how the price attempts to retrace back into the accumulation zone AFTER closing under the -23.6
Now because I trade with high equity and leverage. I always wait for the price to retrace back to the accumulation with it closing inside the two MA lines. So here you see once the candle closed red. I then had 2 mins of selling in which i gainned almost 10 pips, and hit my take profit of 7! On that one trade I would of made my highest % change for the day, as that formation is one my my biggest winners.
Please if anyone has any question about what I have just written please let me know. As this is a super super super important part of this system.
Yes in fact it is. Recall in the earlier post I mentioned I use binary options to back up certain orders. In the up coming videos you will be shown how that is done. As recall that on avg i wager about 4% of my account per pip on each trade. So say I lose 7 pips, my binary wager automatically triggers (depending on the formation) in which I let the account run, as the loss would be covered by the binary wager. Typically those who have high draw downs don’t use safety nets to protect the MT4 account which they are trading in. I on the other use binary options, and even other MT4 accounts. As long as my net profit is green then all is great!
Note: In no way shape or form am I recommending that anyone following this thread use such high equity and leverage. I do it because I am comfortable with my system, and have enough capital spread over different accounts to cover losses immediately. Basically see how we stop loss when a candle is engulfed? Well I do the same with accounts. If this account hits it’s stop loss I don’t open the reverse trade in the same account. I use binary to back me up.
Add fibs to the high/low of that zone and note 123.6 and -23.6
Once price breaks either one, ( this is where i am unsure - is it wait for an engulf? or take the trade in the direction of the break no matter what the candle stick pattern is, i.e buy if its breaking up sell if breaking down?)
Stop loss a just above entry candle, take opposite of the original trade every time you get stopped out.
four stops and recalculate fibs.
If you are running a trade that breaks out in either direction and have netted 7 pips, you can then take trades on bounces back off the MA line?
You got it… Yet the key is to understand when to calculate the high and low. If the trend was up then the red line must closed under the blue line twice; in which you calculate the high and low.
Ok so another question after re-watching your accumulation video;
It seems we will place a trade as soon as a candle closes outside of the accumulation zone, in the video it closed below 0.236, the next candle closed higher heading back into what was the accumulation zone, so at that point we are then placing a long trade, right?
So to clarify we don’t [U]only[/U] short when 0.236 is broken and we don’t [U]only[/U] long when 1.236 is broken, we simply wait for them to break and then enter according to what the very next candle tells us to do.
Right?
Also I want to try this on higher tf’s are the MA periods 10/34 are ok for 15m 1hr?
And during news events, do we keep trading? It seems to me that we should avoid news or atleast only trade Post news events to avoid getting stopped out by noises.
You are 100% correct on what you mentioned! Yet, for the sell it isn’t the .0236… It is -23.6
Yes this system will work great on all TF… What you will have to do is find the correct currency pair. Some work better then others. For example on 15m and 1m I would use A/U… A/U has super clean reversals…
As for news events I use a very different setup… Honestly I wouldn’t recommend trading news because the pips you will earn then won’t be worth the risk of messing up your order. Yet, here is how playing the news will look…
I’m glad to have you aboard. I am currently back testing a new setup for you guys to use. It would of been nice if the chat room here was working, so this way we could trade together in real time. That by far is the best way to learn. Until then we will post all of our questions and answers here.
Chat works for me on chrome, firefox, and IE, although I have heardof people have issues with it loading though
Can you explain why all the fxbook accounts (with the exception of the phoenix capital management which has a private history as well) only show a few days worth of trading before they are deleted or stop updating? For example the link to Pheonix Capital Scalping IV on page 10 has been deleted, and the new link available to that system on your profile only shows 1 days worth of trading. I’m curious because I learn by seeing lots of examples and this makes it hard for me to backtrack and see trade opportunities on the chart. Thanks in advance.
[QUOTE=“LiquidGenius;626940”]Chat works for me on chrome, firefox, and IE, although I have heardof people have issues with it loading though
Can you explain why all the fxbook accounts (with the exception of the phoenix capital management which has a private history as well) only show a few days worth of trading before they are deleted or stop updating? For example the link to Pheonix Capital Scalping IV on page 10 has been deleted, and the new link available to that system on your profile only shows 1 days worth of trading. I’m curious because I learn by seeing lots of examples and this makes it hard for me to backtrack and see trade opportunities on the chart. Thanks in advance.[/QUOTE]
You can click the “custom analysis” tab on his myfxbook to see the full history, some of them have custom start dates and aren’t showing the performance that occurred before the chosen start date.
Hello Liquid Genius, as the other member mentioned you can look at every single transaction by changing the start date. Some of the accounts have been taking over by myself, in which we run the trades up and hedge the profit out by using binary options or other mt4 accounts depending the formation if our candle is engulfed. The account which you have mentioned which was deleted on page 10, is the same one which you see. The first trade from that accounts start date is actually going to be the very next lesson. (How to trade news) Here is the account and the position which was taken.
The start date is changed or the account is no longer updated depending on the request of the owner. Some people withdraw, and decide to trade on their own, which of course will cause trades to be placed which I would never place. For educational purposes I may show 700% profit, but those trades, and 100% of them are using the formation(s) which I have mentioned within. So if your intent is to view each and every trade you can must certainly do so.
As for the account balance being hidden, the account balance is no way influences the ratio or the formation which we decide to trade. The important part of teaching is the formation etc. As for the account which has never been deleted, that account has a pretty decent equity, but isn’t used for scalping. A photo below shows the account balance, but as I said the account balance in no way should be the focus of this thread.
I’ve been lurking on this forum for awhile now and I just want to say THANK YOU for making this thread. One of the better ones on the forum I think. I’m still trying to work through this method myself but this seems like the best method to be using. Keep it up!
Thank you sir. The reality is I use about 9 different methods. (MA, pivots, Fibs, engulf, news, binary,) The reality is some work better then others, but the reality is if done correctly you can run up your account very nicely without over leveraging… For me the most important thing is having a low pip-drawdown. Which is something I really want everyone here to focus on. I believe on the forum most people are taught things which really should never be taught. At least here you don’t have bashers who deter people from learning. I over the last 3 years have earned well over 70k from scalping. So, if I can do it you guys can do it as well.
Once we have established an accumulation zone/range, will that zone remain intact until either the top or bottom is broken? or after a certain amount of MA cross overs should we re-calculate the ‘newer’ accumulation zone, place fibs and then wait for that to break out?
Well if the admin of the site is ok with doing so then we can create one. There is actually a much better chat which we can use. That chat allows me to upload my chart, and each one of you can draw on the chart to highlight specific questions you may have.
Once you have your accumulation zone/range, and the price breaks out of it, then it is no longer valid. It should be removed from your chart right away. [B][I][U]One other thing I failed to mention[/U][/I][/B] The accumulation is only to be used for 1m scalping. If you are trading 5m+ then you never should use the fib calculation. Reason being is you will end up like the swing traders, and getting at the extreme of breakouts. For higher tf you simply follow the engulf patterns which you have been instructed to use.
