The goji system, for lack of a better name

Trading Systems
261

hi all,

pro, i’m still not sure what you are doing exactly. i do not look at the 15 m or 1 hr charts. though, i might now, while using the longer TP and S/L. when using the 12.5 TP, and the 10 S/L, i am not really worried about trends or counter trends. even for a counter trend move, a 12.5 move would not be considered much of a move and they happen all of the time. i simply want to take part in many small moves. my simple system identifies many such trades. the analogy i like to use is that i am running thousands of 100 yd dashes, inside of a marathon. many traders would not want to bother with a system that produced only 10 pips, as this system did today. i, on the other hand am totally pleased BECAUSE I DID NOT LOSE TODAY. my entire approach is to eliminate losing as much of, and as soon as, possible. if you follow my system, i think you will see that i do that with system. this is also why i do not have any set amounts that i have, need, to make. MY ENTIRE GOAL IS NOT TO LOSE, with very little regard for how much i’ve made. THIS IS WHAT WORKS FOR ME, THIS ALLOWS ME TO LABEL MYSELF A WINNER!

today’s trades:

there was news at both 8:30 and 10:00 am, thus no trades around those times.

9:05 entered order short, 1.3985
9:18 short, 1.3985
9:33 moved S/L to 1.3980, price had been to 1.3974
9:34 exit, 1.3980 +5

10:20 entered order short, 1.3970
10:35 short, 1.3970
10:36 exit, 1.3965, had been to 1.3958 +5, +10

i’ll be back at 3:00 pm

goji, bernie

262

Hi Bernie, hi everyone!

I’ve been following this thread for quite a time and I’m impressed with the success of the system.

I would appreciate it a lot if you, Bernie could explain me the way you deal with the following situations when trading the system.

  1. Let’s say, a 5min. candlestick crossed the 10EMA and closed. You placed a limit order. The next stick, as it happened numerous times, crossed the 10EMA in the opposite direction, and closed. Do you place a limit order in the opposite direction and cancel the first one? If it crosses back again?

  2. 10 EMA was crossed, you placed an order. The order was filled, but the next stick went in the opposite direction, crossed 10EMA and closed. It did not hit the SL yet. What do you do? Strictly following the rules, you should place an opposite limit order. What about the existing one then?

These two situations confuse me a lot.

Thanks in advance.

263

hi all,

was there any doubt in anybody’s mind what S/L i would be using this afternoon? from the morning session i was +10. unfortunately, our afternoon trade wiped out our profit for the day. you can not trade unless you resign yourself to the fact that there will be loses. regular readers know that i exert every attempt to minimize the amount of those loses. in an earlier trade today had i not followed my system, i would have had a greater profit, ONLY IN THAT ONE TRADE. however, if i would have abandoned my exit rules for that trade, i would become a slave to losing trades. this trade was the exceptional one. i would rather stick to my rules. which brings us back to this afternoons trade. it was a loser. my final trade today was a losing trade. HOWEVER, I DID NOT LOSE ANYTHING TODAY. TO ME AND MY EMOTIONAL MAKE-UP, THAT IS IMPORTANT, IN FACT IT IS THE MOST IMPORTANT ASPECT OF THE TRADING I DO. I DID NOT LOSE MONEY TODAY, PSYCHOLOGICALLY, I AM NOT A LOSER.

chasingpips: first, yes, i only want to be in a trade whereby i have the momentum of the cross, close, and positive (up or down) movement in the direction of that trade. check what i wrote yesterday, # 258, between 9:15 am and 10:00 am. i spent the time entering and canceling orders that were never entered, THUS, NO FOLLOW THROUGH MOMENTUM! secondly, the existing order would be exited with the, hopefully, small loss. i hope these answers help.

this afternoon’s trade:

BY THE WAY, I WILL TRADE TOMORROW MORNING ONLY FOR THE REST OF THIS WEEK. THEREFORE, MERRY CHRISTMAS TO ALL, AND TO ALL A GOODNIGHT!

3:00 entered order short, 1.3960
3:08 short, 1.3960
3:34 exit, 1.3970, -10, 0 for the day

december total +281

later,

goji, bernie

264

Thanks for the tips.

USD/CHF

Sell at 1.0888
Close at 1.0881

+7
3 day career stats -11 (-$12.73)

I’ve got to regroup, check the rules, and enjoy the holidays. See you in a couple days.
Pro

265

i really do know how to spell “losses!”

266

hi all,

i’ve thrown in the towel for the day and the week. see you monday morning, the 29th.

today’s trades:

once again there were several enter orders / cancel orders today but i am not going to list them all.

8:55 entered order long, 1.4005
9:07 exit, 1.3995, hit S/L -10

9:20 entered order long, 14005
9:25 moved S/L to 1.4010, had been to 1.4013-6
9:26 exit, 1.4010, +5, -5 for the day:mad:

december total, +276

later, goji, bernie

267

It would be nice if you all started posting charts when talking about your trades…even if you put them in a zip file! :wink:

268

hi all,

MERRY CHRISTMAS. mighty one, oanda does not give the opportunity for taking pictures. this is why i take the time to write out each trade with time etc. if you would have read all of the posts you would know that i am a retired teacher and very much aware that many individuals are visual learners. howver, this system is not a difficult system and it is proving to be quite rewarding. therefore, this should be motivation enough to spend some time and do a little work with it and i’m sure you have the ability to, and can master it.

goji, bernie

269

Hi gojilover.

I hate to ask this but I am really confused as to how your system works. I have been looking at the times and prices that you have placed your trades at and I cannot get them to line up on my charting software. I think maybe if I can get my charts to line up with yours it may make more sense to me.

I am also confused about the entry rules. I seen some of your posts to say that there was only one to two trades available for that morning. Going by what I have read of the rules, it appears to be a lot more so I guess I am misunderstanding the rules. Can you clarify them for me a little?

When you say close above the 10EMA, is that just the close bar be below or the whole candle?

Sorry to be so lost here but I would really like to start implementing your system as soon as I understand it. :confused:

Thanks,

David

270

hi all, david also,

i do not know whose trading platform you are using. however, even if your trades do not match mine, you should be able to get positive results.

here seems to be the biggest problem people seem to have with this system. either i am not explaining it well enough or the newbies are not taking enough time. your decision!

  1. price must cross 10 ema. WARNING TRADE MAY BE COMING

  2. candle must close. ENTER YOUR ORDER

  3. THAT ORDER MUST BE PLACED AT THE NEXT X.XXX5 OR X.XXX0, WHICH
    EVER COMES FIRST

NOTE: this means you may have to wait for price to move as much as 4.9 pips before entry. sometimes it does NOT move enough to enter. perhaps price reverses and crosses and CLOSES in the oposite direction. this eliminates the first trade, WITHOUT ENTRY, but sets up a trade in the opposite direction. from the first offering: back on oct 5th. “with a close above 10 ema, place a buy stop at the nearest 5 or 10 above the high of the closing candle. if the high was 1-2-3-4, set buy stop at 5; 5-6-7-8-9, set buy stop at 10. use the opposite of the above for a short trade.”

hope this helps!

goji, bernie

271

Hi goji!

Thanks for the reply. That does clear up a couple questions. I have spent about 3 hours today going through all of the posts in this thread and am very encouraged by what I am reading.

As far as my charts go, I am using MT4. Can you tell me what pair and timeframe you are currently posting reports for? I would like to look at the chart after you post and see what the chart looks like. I am very much a visual learner so I need to match the chart with the numbers you are posting so I can connect the two in my thinking.

Maybe you can help me figure out what I am doing. For example, you posted on 12/24 that you entered a long order at 8:55 for 1.4005. Looking in my software on at that timeframe, I am showing the EURUSD at 1.3975, 30 pips away from the entry point. Am I looking at the wrong time, wrong pair, etc. I am assuming that the 8:55 is GMT.

Not trying to be difficult, I just want to understand the system so that I can have confidence with it.

Thanks for all your help.

David

272

Hello Davidholloway77,

                       Charts help us to know were to put our exact trade. And it also explains the trend of the market as well as the pairs. The movements in the pairs are confirmed from charts.
273

hi david et al,

i think i may have identified the problem. presently, i am trading between 8:00 and 11:00 am EST. i live in pennsylvania, thus, this is new york city time. i then come back for the nyse close and trade from 3:00 - 4:00 pm est. i will see if i can match up your trade. i think if you travel back two hours we will be on the same page. the 11:00 quitting time i use matches up with the london close, i think. let me know if this improves the problem. where do you live? also, i am pretty much trading the e/u, sometimes i switch to the u/chf, depending on oanda’s spreads.

goji, bernie

274

gojilover …
I use the 15, 10 and 5 minute moving overage to help me determine an entry or exit on a 1 minute candlestick chart. I often use the H4 to determine the main trend and the 15m to determine the short term trend and take my pips on the 1m chart. I do use MT4.

My question is do you use moving averages at all and to what capacity?

Also RSI must be above 50 and MACD going positive on a buy. When the 15,10 and 5 minute all cross with the other conditions the 5 above the 10 and the 10 above the 15 then I have what I call a good buy.

275

Hey goji!

I think that was the problem. When you said you were trading at 8:55 it is actually 13:55 on my software. The MT4 shows the time in GMT time. After looking at the 13:55 time I can see the signal.

One other quick question, do you set the buy signal at the 5 or 0 above the CLOSE or above the HIGH?

Thanks again!

David

276

hi reapr et al,

i would draw your attention to recent post 270. i use only a five minute chart with a 10 ema. the entrance is exact. i also set a 10 S/L and a 12.5 TP and have that fixed upon trade entrance. from entrance to close i am all about moving the S/L. normally, at +4, i move to break even. this is the part that is harder to define as different people would move the S/L differently. anyway, my intitial focus is to eliminate the loss, or as much of it as i can. profit is secondary. a good day for me is anything above break even. all this said this simple system has been very profitable for about six months now. these trades have been recorded for the almost last three months. this system is all about taking small, but very consistant, profits out of the forex market. some traders may not like the approach. that is ok with me. this works for me. i simply record what i have done. if this helps others then i am pleased. a part of my motivation for maintaining this log is that it really helps me focus on my rules. it is interesting how much my trading improved when i, first, did not have to make any particular amount for a day and secondly, when i started writing, thus really focusing on the system.

later,

goji, bernie

ps, to DAVID, above/below the high/low i want the momentum moving in the direction of the trade. this also keeps you out of more trades that may whipsaw you.

277

So pip wise you don’t take many hostage. Have you or have you considered a trailing stop?
After reading your posts yes money management is important and even bailing on a loosing trade before it gets worse can be considered a win of sorts especially if you walked away from the situation with more knowledge on how to avoid it again. Of course if the majority of trades are learnin’ lessons then I would probably consider that I am not learnin’ quick enough and consider something different. That is where most people fail not just in forex but in other endeavors that involve making money.
Looks like you have a good system. I will look at the 10ema on the 5 min chart.

278

hi all,

reapr, first oanda does not offer a trail stop. second, i prefer the human element of trading. yes, i like my TPs and S/Ls established before hand, but once a trade is entered, i like the control of moving the S/L. oanda makes that very easy. also, it seems, though i could go back and check for sure, that most of my trades are ended within several minutes of entry. also, and i may not have conveyed this, i do not just set the S/L to break even at +4, i am constantly moving the S/L. many of my trades thus end at +4, +5, +6. over time these add up. as such, i believe this is the strenght of this system. thus, eliminate the total S/L as soon as possible. reduce the amount of the S/L, as soon as possible. get to break even, at +4. pinch the S/L loss into the TP. as price approaches TP, i do not want to maintain a S/L of 4. i may move to S/L of one, or two. the entire process is dynamic rather than static. IT IS ALL ABOUT PROFIT, REGARDLESS OF THE SIZE OF THAT PROFIT.

later,

goji, bernie

279

gojilover,
I was just wondering if you used a trailing stop. I have played with them in the past but have noticed many brokers do not offer them. That being known I also noticed that my exits were more precise and usually in my favor (could be my imagination) when I manually adjusted my S/L to and sometime my T/P.

280

hi all,

well, as the new year approaches, it is time to shake things up a bit. as such, i offer you the gochi system for lack of a better term. i would suggest the demo intitially or considerable back tesing. the gochi system is born out of several circumstances. first, many do not have the time to sit and watch a computer screen during the times that i do. secondly, the flaw i have identified in the goji system is that there is no method for re-entry. at this point many may offer, “if it ain’t broken, why fix it?” I DO NOT THINK THAT THE GOJI SYSTEM IS BROKEN, i will announce that right from the beginning. the gochi system may be used in addition to the goji system, or simply by itself. i am going to use the u/chf, initially, for the gochi system. some of you may want to experiment with other pairs.

here are the rules: (5-15 minutes per day is all it should take)

time frame: daily, ok, this may not fit this forum as this approach is probably
more akin to swing trading. as such, i started here and here i
i will stay!

two indicators: 10 ema and 3 ema

additional chart: one hour, only used for accuracy

that’s all, as the gochi system is also a very simple system to impement.

entry: same as the goji system, with one exception. all trades will be
entered 10 points above the high, or 10 points below the low. THIS
IS SOMETIMES DIFFICULT TO DETERMINE OFF OF THE DAILY CHART,
THEREFORE, THE ONE HOUR CHART WILL BE USED FOR
ACCURATE ENTRANCE DETERMINATION. the 10 points should eliminate
considerable whipsaw activity.

exit: cross and close above the 3 ema for shorts
cross and close below the 3 ema for longs

re-entry: may occur with re-cross and close of the 3 ema, ONLY IN THE
DIRECTION OF THE 10 EMA. thus, if below the 10 ema, YOU MAY
ONLY TAKE SHORTS, as per the 3 ema cross and close. opposite for
longs, naturally.

SINCE I CAN NOT OFFER VISUALS, HERE IS A RECENT EXAMPLE: (please note, oanda’s new day starts at midnight, my time, est, or nyc time)

U/CHF

DEC. 8TH CROSSED AND CLOSED BELOW 10 EMA, LOW (FROM HOURLY
CHART) 1.2015. ENTER ORDER SHORT, 1.2005

DEC. 9TH 11:00 AM, SHORT AT 1.2005, initially set a 200 S/L

ONCE YOU ARE ENTERED YOU NOW SWITCH FOCUS TO 3 ema. YOU WILL USE IT FOR BOTH S/L AND EXIT BASED ON CROSS AND CLOSE.

DEC. 18TH I HAVE THE CLOSE AFTER THE 3 EMA CROSS AT 1.1032, FOR A
PROFIT OF 983 PIPS

RE-ENTRY, PRICE IS STILL BELOW 10 EMA AND PRICE RE-CROSSES AND
CLOSES BELOW 3 EMA

DEC. 21ST RE-ENTER, USE ONE HOUR CHART FOR ACCURACY. THE LOW
EQUALS 1.0960, THUS ENTER ORDER SHORT AT 1.0950

DEC. 22ND AFTER 2:00 AM, SHORT, 1.950

TRADE IS STILL ACTIVE, AS OF DEC. 26TH, CLOSE.

if interested, please match your charts to the above trade for comparison. perhaps this maybe something you may want to consider adding to you arsenal of trading strategies.

a final suggestion; you should reduce the amount of units traded in conjunction with the extended S/Ls.

later,

bernie