I have another question for you regarding the goji system. If the price closes above the 10EMA, you are filled on the order and you also get filled on your take profit in the same bar, do you wait for the price to cross back down through the 10EMA for your next trade or do you attempt another trade on the high side?
Just wondering if the price gets in a major uptrend how we can use this system to take advantage of the uptrend. I know if you were fast enough you could keep moving the TP and SL up but just wondering if it would be safe to get back in with another order if you were stopped out with your TP on the first move of the trend.
you have identified the flaw to the goji system. there is no re-entry for those days when the price just keeps moving. there is also nothing wrong with a +12.5 per day. this system is based on eliminating greed from your trading. this is why i say many would not be staisfied with the goji system. however, check the results back to oct. 5th, this year, or check the monthly results by going to the last tradng day of the month. without a re-entry the system has still produced significant profits. i have indicated that this does not bother me. if someone guaranteed me 12.5 pips every day, i would soon become a millionaire. remember, depending on the size of your bankroll, that 12.5 could be $12.50, $125, $1,250, $12,500, and yes, even, $125,000 per day. if you had total confidence in the system and if your bankroll was large enough, I COULD LIVE OFF OF $125,000 PER DAY!
now, on the other hand, to help build your bankroll, you may want to spend some time on my preceeding post to help build your bankroll and eliminate that flaw.
I must say, I have been doing a lot of backtesting with your goji system and it is very promising. The last time period I looked at produced 7 out of 9 winners. Awesome!
I have another question though. With this sytem, are you concerned about the longer term trend at all or are you only looking for the close above or below the 10EMA to determine the direction of the trade?
no i am not interested in the longer term trend. i am only interested in short term momentum. there are three indicators of such. first, the cross of the 10 ema, second, the close, if in conjunction with the cross, and third, rounding to the nearest XXXX5, or XXXX0. inititally, i used the 10 for TP, but then changed to 12.5 to give me a slightly greater than 1:1 ration and to incorporate spread variances. anyway, with 1-2-3, above going for you, you do have short term momentum on your side. also, since i am constantly reducing the S/L, and i do not mind taking 2-3-4-5 point profits, this works for me and my personality. by the way, have i told you, I HATE LOSING, more than i enjoy winning.
WOW! came on line at 2:50 est, just in time for a cross. i entered the order, it was filled and exited with a TP in two minutes. i am finished for the day, a very productive day i might add.
the trade:
2:55 entered order long, 1.4095
2:56 long, 1.0495
2:57 hit TP, at 1.41075 +12.5, +25 for the day.
two trades this morning, one loser, one winner. unfortunately, the loser was
at maximum S/L. i will be back at 3:00 pm today and again tomorrow morning and then shut down for the week, i think. the battle now is to stay above 300 for the month. we shall see what we shall!
the trades:
8:50 entered order long, 1.4140
8:50 long, 1.4140
8:54 exit, 1.4130, hit S/L -10
9:35 enter order short, 1.4135
9:35 short, 1.4135
9:37 exit, 1.41225, +12.5, +2.5
regular readers should know that if i say i am going to start at 8:00 am or 3:00 pm that normally means at least 15 minutes prior. today was a good example of why one should do this. i have a pet saying that “chance favors the prepared.” i have no idea where that comes from so apologies to the creator, whomever, that may be. anyway, the saying was very appropriate today, as i concluded the 3:00 pm session before 3:00 pm. the trade hit a TP. this is important because it assure me that i will finish the month with +300 pips. that should tell you, if my first trade tomorrow morning is a maximum S/L, i will be finished for the week, maybe, month and year, for sure. remember, we are not gambling and finishing +300 has a psychological balance to it, for me anyway! thus, we shall see what the morrow brings! today’s final trade:
2:50 entered order short, 1.4110, the signal had been given before 2:50
2:53 short, 1.4110
2:54 exit, 1.40975, + 12.5, +15
Good going Bernie as the greatly reduced volume at this time of year makes for whipsaws. You and your strategy are in perfect sync, an enviable situation for any trader regardless of strategy. d
Bernie, I have been following the system/trades on a Oanda demo account. This is my first post to your thread. I thought I new the setup and trade but now I am not sure. I am in the central time zone so your 9:35 trade would be 8:35 for me. What I see are red candles for 8:20, 8:25, 8:30 all closing above 10ema. The 8:35 is a large candle with a high 1.4150, low 1.41216. This is the first candle I see with a cross and a close below 10ema but your entry comes in about the middle of this candle. Where did your setup come from for your trade? What am I missing?
you are quite right and right now i have no answer for you. i went back to my trading log and oanda has me entered at 9:37 am (8:37-your time) at 1.4139-9 and they have me exiting at 9:40 am at 1.4125-3. this matches up with my charts, now. if all of this was not curious enough, they have the order entered at 9:37 am and no indication of placing the order before hand. what makes this strange is that the system signal occurs on the five minute close, thus that is when i would enter an order that may then get filled. there was no preliminary order indicated which means that i placed a market order, WHICH I NEVER DO! the trade closed quickly enough and i had 12.5 registered in the profits (pips) box, not 14.6? the only thing that i can think of is that i had a one minute chart up and went off of that for my signals, but that would not explain what i just described. another explanation may be faulty note taking. in my notes i put down time, EO L or S and then the price, EO stands for entered order, l=long, s=short, then, time, entry whether long or short, and then time, exit, and price. well, my mistake whether due to mechancal glinche, which would totally baffle me and provide concern for future trades, faulty observation or faulty note taking, did have a positive consequence for me, this time? i must have been lucky today, but right now i have no idea. i hope all of your other trades are matching up and i will monitor this more closely going forward to see if something like this should happen again! thank you for speaking up and bringing this to my attention. i am a firm believer in reporting it when you receive a bad steak at the restaurant.
After doing some research I’m going to be using the Buyzonefordummies setup by TRO. I read “trading in the zone” and I’m going to also do the 20 trade “exercise” to review and re-wire the psychological aspects of my trading ability. I figure I might as well start off on the right foot and program myself for success from the begining. I will be watching your thread with interest.
Pro
that sounds like a good idea. i believe there are considerable psychological implications for the individual trader. i believe they should be mastered to enhance your trading ability. for me, i focus on not losing because it fits my personality. that approach is probably not positive for everyone. you may let me know after you finish studying.
today’s trade: it was a TP trade so there is no reason to continue
8:55 entered order long, 1.3905
9:00 canceled long, entered order short, 1.3875
9:05 canceled short, entered order long, 1.3905
9:06 long, 1.3905
9:06 exit, hit TP, 1.3917-5 +12.5
i am finished for the day, week-maybe, month, and year.
Started about 2:30am. 15 trades in I was -27 pips and starting to break all kinds of rules. I then threw all indicators out the window and started trading in no mans land. All I watched was the H1 candle and couldn’t even resist going against it half the time. I tried to “be the leaf” and ride the river stream. lol I was almost back even by 6:am and things started to roll about 6:40am. I shut it down at 8:45am with over 40 trades and ending up with +93 pips.
Whew, that was stressful as I’ve got a long ways to go “upstairs”.
I even took a trade on a currency that I didn’t have a window open for and lost 9pips on it while I watched eur/usd go up 25. I did not use any stops as i couldn’t figure out how to get those things to work.
This could have turned out much better if I had my head together as I took many wrong way trades and left ALOT on the table.
Woah prochargedmopar, I would say +93 pips is amazing considering the way you traded. I did all the things you have done as well, and if your experience is anything like mine, you’ll have a pretty decent drawdown before getting your head right. The week after I read Trading In the Zone, I followed my rules exactly and grabbed over 250 pips. However, the following week I started to lose and also started to relax my trading rules, which caused further losses. Now, I’m not gaining the big pips I was earlier, but I’m finding myself far more relaxed and making consistent, albeit smaller, gains. Yesterday I was up 25 pips after the morning session, then in the afternoon session I lost those 25 pips. A few weeks ago that would have meant desperately trying to regain those pips I lost, and probably digging myself deeper. However, yesterday I took the Bernie approach, and decided a break even day would be much better for my psyche than a losing day, so I stopped. I was able to regain those pips today and stop for the week, realizing that New Year’s Day and the Friday following will probably not be the best times to trade.
I feel I have to balance my super-charged trading tendencies with positive exercises that I can hopefully implement as habit with enough repetition. Things like getting up from the computer for breaks, stopping for the day if it looks too choppy or there is not enough price action, focusing on only one currency pair, and even listening to calming music while sitting back in my chair as opposed to leaning forward and begging the candle to go in my direction.
pro, congratulations on a successful trading day. however, you may be creating a heart attack in waiting. you did an awful lot of work and if you are learning, all well and good. if you continue that many trades i think you may burn your self out. it is not my place to tell anyone what to do, though. if you, lavaman, or anyone else reading need help with oanda TPs and S/Ls, here are the instructions:
trading page
click: tools, user preferences, trading, set default S/L, then set default TP, (i use 12.5 and 10, you may use what ever), click on apply, wait for it to highlight, and then click save. this locks in your S/L and TP when you enter your trade.
well, from not knowing if i was going to trade or not, i am actually early. i couldn’t sleep. so i turned on the computer just in time for a set up, so i took it. i am pleased to announce that i have gotten the new year off in a proper manner. i think i will go back to sleep now.
the trade: (it took awhile!)
5:30 entered order short, 1.3945
5:31 short, 1.3945
5:36 moved S/L to 1.3950, had been to 1.3942-3, i didn’t like how
long it was taking!
5:54 exit, 1.3932-5 +12.5
well, the second trade of the year was not so good. we hit a total S/L and most of you should know, that will end the day for me so that i can quit while ahead!
This is a good system. I dont see any reason why it should not work on other pairs like USD/JPY, and EUR/USD, EUR/JPY etc with smaller spreads. Have you tested these also??
i actually started the system with the u/chf. i use oanda and their spreads change depending on circumstances. i was using larger S/Ls and TPs. when i switched to the e/u, which i use almost exclusively now, i shortened the TP and S/L. i do not doubt the system will work on other pair, though i have not tried it. i have looked at and have done some back testing, but i always come back to the spread issue. at oanda the e/u is almost always the shortest.
now the system is priamarily short term, momentum based and other pair do have momentum swings. when something is working i feel there must be a pretty good reason to switch. larger spreads i feel is a good reason. personally, i like having to focus on just one pair. i am not multi-task challenged but trades do come up often and i would hate to be scouting another pair and miss a good trade. if you choose to experiment on other pair, please let me know how things are going.