The use of the 3 candle countback line needs no explanation.
[U]Note that we do not discriminate here.[/U] 
Every candle is used - there are no smaller candle bodies to consider.
doji candles are also used.
We now turn to the biggest difference in the method compared to the DNA method - the Fibonacci tool.
We use the Fibonacci tool to measure retracements.
However, we do not use this tool until our price action is clear of the entry line.
After entry, the price action may retrace for a time, before it regains momentum and goes back in our favour away from the entry line.
We do not use the F tool until the retracements after our entry line are over.
Then one end of the F tool is placed on the stoploss point.
The other end will be placed at the most extreme positive price action we have reached.
This example will explain >>>
In this chart we have already found that a 4x/6x higher timeframe shows upward direction so we want to trade long.
We look for an extreme candle on the lower BB.
Upon finding the right one, we go back 3 candles and set the entry line on the chart as shown in blue.
The red dashed line is the stoploss line.
When the price action starts trending upwards, we place the F tool at the points A and B as shown.
The point A remains constant but point B moves along with the price action.
When the price action starts to retrace, we watch to see if there is a breach of any of the Fibonacci lines.
You can choose whichever you like or even set your own line by modifying the tool in your charting program.
Note that we are looking for retracement trends, not individual candle spikes that may breach the F lines.
When the price action retraces and breaches your chosen F line, it is time to exit.
It may be a good tactic to choose the 50% line at first so that you manage to get past the first retracements without too much fuss.
After that you could choose smaller and smaller Fibonacci lines so that upon exit time, you do not lose too much.
[B]Since we are going LONG in the above chart, we always place Fibonacci point B at the highest price action point.[/B]
DO NOT LOWER IT.
[U]That is, do not put point B on the retracement candles.[/U]
In the example above, the point B would not be shifted again until we reach the high green candle in the squeeze area at the end of the bubble.
In this way, you will consistently measure the size of each retracement, and hence determine whether to exit or stay in the trade.
For the 2 contract strategy, placement of TP1 and TP2 is a subjective matter.
[B]SuggestionsâŚ[/B]
TP1 at the opposite outer BB.
TP2 is the final exit.
TP1 at the end of a BB walk (simple exit method).
TP2 is the final exit.
WHEW!! :o (wipes sweat from forehead)
Tymen, I must say, you are a God or at least the closest thing to one. To provide all this information at the expense of your own time and for free is really a genuine gesture.
I spent the last 4 months looking over all types of forex information (how I overlooked BP is beyond me), even spent some money on some systems that didnât really perform. After some big losses, I decided to turn off my MT4 until I had a new strategy in place and by George, I think Iâve got it.
Iâm glad there isnât a completed PDF posted because you really need to go through the whole thread to soak in all the information (the thread itself is a PDF). I appreciate you starting with a system/method full of indicators (that actually proved to be profitable) to just totally denounce it at a later point. You even provide a bunch of other profitable systems/methods and you just donât stop! 
I will be doing a bunch of demo testing before jumping back in live and will return to the thread to learn the Macro method you are just beginning (want to focus on one method for now). I just wanted to thank you for providing me with a bright outlook on Forex.
Question: To record your LPs to the computer, did you purchase it from Numark? I use to work there and couldâve possibly sold it to you lol
The Macro Method looks quite promising, and its lower Win : Loss ratio, is made up for by its great Risk : Reward ratio! I was wondering though, is it advisable to trade both the DNA Method as well as the Macro Method? Or is it better to choose and stick to only one strategy? The latter would be unfortunate, as it is heart-wrenching to have to choose between two [B]excellent[/B] strategies!
Happy pipping to all!
Great work Tymen! Iâm sure there will be much discussion over this method. Iâll kick off some of the discussion by pointing out, as your diagram shows, that any good long trend will have many small retracements. Only one of those retracements (the last one) will prove to be a true reversal of the higher Time Frame trend. So a one big question in my mind at least is, which retracements should we ride out, and which should we exit out of with our remaining profit? That is a discussion I would like to open if you donât mind Tymen.
From one point of view, the best odds are to consider any retracement temporary and always ride through it as long as the higher TF trend is still in place. That will be the right decision about 4 out of 5 times.
Unfortunately, some retracements are so deep that a trader will wind up giving back 80 or 90% of profit, and some retracements will actually take all profit and the stop loss too! To avoid this, I agree with you that a limit must be imposed somewhere in a retracement to exit and to take profit, and 50% is a good starting point. A simple rule is, if we never take profit, we can never win.
Sometimes we may want to risk less than 50% and sometimes more. Iâll discuss when I choose to risk less than 50% and when I choose to risk more than 50% and Iâd be interested in hearing others opinions on this specific point.
I actually start out risking very little in a trade. If the trade moves against me right away, I exit immediately. I then stop to consider if I am really meeting all my trading criteria. If not I abandon the trade there. If I am meeting all my trade criteria, then my goal is to get a better entry in that same trade. It doesnât matter if the entry point is higher or lower than the previous entry point, as the market doesnât know where my previous entry point was. It only matters that price goes in my direction shortly after my entry. I take some small losses on bad entries, but I never take a large loss anymore. Those days are behind me forever, thank heavens.
If the trade goes in my direction right away, or after a couple tries at getting a good entry, I start to widen the amount I will risk in it. After a couple tries with bad entries, I give up and go to another pair to prevent repeated whipsaw entry losses. Note that as I widen the amount I am risking, most of that additional amount is profit, not my own trading capital.
Near the center of the trade I will be risking the maximum amount, and willing to take a 50% retracement, and sometimes even a maximum of 61.8% of total profit near the center of a trade. I plot trendlines and channels of the trade as it progresses and as long as the trade is inside the trendline Iâm willing to risk more, but if it breaks the trendline, Iâm going to quickly tighten my stop and take my profit. Since I trade longer time frames, I have plenty of time to do this detailed analysis.
But exiting with half or more of my profit isnât necessarily the end of the trade. Remember that most good long trades have many retracements, but only one (the last one) really signals a true reversal of the longer time frame trend. If the retracement ends, and the main trend resumes, as will happen most of the time, I will try to gain another good entry, starting all over from the beginning to try for a good entry and follow the trade some more. Once again, two bad entry attempts and Iâm done with this trade and move to another pair.
Then near the end of the trade, when the price is losing momentum, I start tightening up the stop. I continue tightening up the stop until the trade stops out, or price returns back to following the longer time frame major trend and profit starts increasing well again. If that happens, I consider it the same as a new good entry to a new trade and allow the stop to widen again, repeating the whole process over again. I have on occasion, traded the same pair in the same direction for months like this.
So when looking at this, my risk in pips is shaped like a bell curve. In the beginning I risk very little, near the center I risk more, and at the end I risk very little again.
This process takes some practice since the important part is to identify how fast to increase the stop in the first half of the trade and how fast to tighten up the stop nearer the end of the trade. Note that I will tighten up the stop very fast at the end if news comes out that makes a big change in the fundamentals.
The piece of information we can never know with certainty in advance is how long the trade will run. If we knew that information, it would be easy to adjust our stops optimally, increasing them in the first half of the trade and decreasing them in the second half of the trade according to a bell curve.
I use two methods to approximate a solution to this critical question. First I analyze all my trades and determine how long the average winning trade lasts and how far it moves for a particular pair for a 1H, 4H, daily and weekly home chart trade. While there is a wide variation, my analysis shows that on average trades are moving faster for most pairs over the past few years than they were previously, but the size of the moves has remained fairly constant. I also watch the momentum of the price movement. I do this by observing the size of the candles over many time frames, but some others might use indicators like ATR or ADX to assist with this.
Thatâs all my comments on determining where on the fib line to exit with profit on a retracement. I would be interested in hearing your review of this subject and that of any other experienced traders. I believe the MACRO method has great potential and Iâm looking forward to seeing testing results by Dodge and Iron Heart or any others that can help with this task. Thanks for all your good work on this Tymen
hi tymen,
I glad you back
Can you help me on my dilema please.
When I am trading Denis or Rachel babbles begining from squeeze say on 1H chart and to avoid false breakouts I look at 30min chart for cbl entry in opposite direction. Once there is such cbl entry I exit the trade. Can you look at your chart and please recommend me something how to recognize that the trade will continue to fall or pa would rise
here is the exemple (its your chart). As you can see I have a good cbl entry for the long trade but the pa falls ???
My opinion is this is a fairly strong down trend with the mid band pointing mostly between 4 and 5 oâclock. You have about 10 candles moving below the bottom BB after the squeeze starts to open back up and just before the the first entry marked at E1. I usually wonât take a trade after about 4 candles move below the outer BB as that is often a sign of a BB walk beginning. I canât see the higher TF, but if itâs also going down, thatâs another reason I wouldnât take this trade long. By the time the E2 entry is shown, I would be more likely looking for three good reasons to trade with the prevailing downtrend than to be trying to get in an up trade against the trend. If you just keep in mind that these no trade zone trades are very risky, and implement a few simple rules, you can stay out of the majority of these bad trades.
In no trade zones only:
Donât enter long if the mid band is pointing down more than 4 oâclock, or short if itâs pointing up more than 2 oâclock. If you canât tell, donât enter.
Donât enter if the higher TF is also against the direction of the trade.
Donât enter if more than 3 candles have moved outside the outer BB since the squeeze started to open back up.
Always have three good reasons to enter the trade. A 3 candle CBL is one good reason, a 2 candle is a required minimum, and I wouldnât enter in a no trade zone on a 1 candle at all.
Thatâs just my opinion, others may think differently.
I also know that one of the techniques to the winning trader is to [B]add to winning positions.[/B] I was thinking of developing some techniques which would allow me to enter a new position and the bottom of the retracements, (in an uptrend) which should in theory increase the R:R ratio. Would be interesting to see the views of others on this method.
Happy pipping to all!
Graviton,
I just wanted to say thanks. Your experience and insight are invaluable to everyone.
Hi everyone
I am new to the thread.
Been going through this thread for about 1 month. Not chasing it fast because i was doing some demo trading at the same time and absorbing all the information step by step.
I wanted to give my special thanks to Tymen, DodgeV83, Graviton⌠Your efforts are mostly appricieated.
Sorry for my broken english as it is not my native language. Thatâs the other reason for me to spend so much time to catch up with this thread while others can do it in 2-3 days⌠lol
Hope all of you constantly making pips.
âCan i has some pips, too?â
A thank you to the new people who have posted here.
I invite you people to join us in the chat room set aside for this thread by [B]Merchantprince[/B].
A thank you again for [B]Gravitonâs [/B]very extensive and valuable post.
He is a mine of information and a great source of practical stuff since his information come straight from the trading pits - no theoretical stuff.
I await DodgeV83 to develop and EA for the MACRO method and for [B]Ironheart [/B]and [B]Norwegian Blue[/B] to do the first backtesting.
Yes, we have a very solid team here!!
I have never seen this kind of backup for any other thread I have ever seen on this forum.
Newbies joining us will reap tremendous benefits.
[B]Now I have started my own trading again so, therefore, I have been slack with my posts and lessons.[/B] :o
I have also rested because yesterday I made a journey back to Perth (5 hours driving there and back). With all the dogs barking here, I was surprised to find it is really quieter in the city.
So ultimately, having discovered that I am a city person after all, I am intending to go back again.
I can find nothing in this town where I live to recommend it!! :eek:
No no, donât say that!! :o :o
But I do hope that you learn to trade properly by reading this thread.
Remember we also have a chat room and a whiteboard teaching service (where I teach online - immediate).
The back up service for this Bollinger DNA method is the best!! 
Question: To record your LPs to the computer, did you purchase it from Numark? I use to work there and couldâve possibly sold it to you
I was given a Sony record player (turntable) some time ago.
An average belt driven contraption.
I have looked at Numarks products on the internet.
Unless I go for a top turntable like Linn Sondek, Thorens or Acoustic Signature, I really cannot see myself improving the quality.
These players cost thousands of dollars - is it worth it?
I have everything except the pre-amp and there is the spanner in the works.
I have learnt the CD players and read/writers do their work at 16 bit depth rate and sample rate of 44.1 kHz.
So are expensive turntables and higher bit rate/sample rate pre-amps worth the trouble?
Everything is governed by the limitations of the CD player.
[B]If you know more about this area to help me, please post back!![/B]
Trade with both!!
You will eventually start to have a preference for one of the methods.
I prefer the DNA method.
After its high win/loss ratio, you tend to get spoilt!! 
Sure thing Tymen/Graviton.
I would be happy to carry out extensive testing for this method!
The earliest I can begin testing is Friday, but will not be able to fully dedicate to it until later, since I have been very busy with other stuff lately.
Nevertheless, MACRO method, here I come!
This thread is definitely a step in the right direction and I will continue to move at a âslowly but surelyâ pace.
When youâre talking about rendering down the mp3s, each usb turntable is going to do it nearly the same. There are other independent audio editors that will help increase the quality but not my much. You might want to take a look at Goldwave. Its free and allows you to save it in different formats and allows you to clean up and hums and hisses. But I prefer the authentic sound of vinyl.
NorwegianBlue, would you beable to post this EA which you are referring too.
Thanks,
DodgeV83,
are you able to use your EA with live trading. I am trying to use it with my demo account. I have it setup just fine with the live trading box checked but each time I put a buy or sell line on the chart and the price makes contact with the line it looks like it runs fine by adding the stoploss and the take profit line, but in my orders screen it doesnât show any orders active. My account shows the same amount before I placed the line on the chart. Is there somethig that I might be doing wrong that you can explain to me. It would be much appreciated.
Thanks,
Todayâs trades:
Trade 1:
Risk: -2%
E/J 30m
Profit: -2%
Trade 2:
Risk: -2%
E/J 30m
Profit: -2%