Great match between Argentina and Korea! Here is my next trade which I have put on.
The candle used to draw the CBL is highlighted in the red box. Since it is too large, it was cut in half to effect a better entry. The target is once again the Middle Bollinger Band in this trade.
[B]Now we set and forget this trade, and allow the ebb and flow of the market to take its course.[/B]
Trade 5 has been completed, and was completely ironic.
Entry was made at [B]134.44[/B] and the trade was closed at [B]134.70[/B] This was a [U]disappointing trade.[/U] This is a simple result of the fact that I made a blunder while using the trading interface, resulting in me closing out my position. The ironic thing is that these careless errors are exactly what I have been reading about, and as it violates my Trade Plan, although it my be profitable, I am disappointed in myself. Overall 2 contracts were closed at [B]26 pips each[/B] for a total of [B]52 pips.[/B]
Happy pipping to all!
My next trade set-up is on the [B]USD/CHF[/B]
The candles used to create the CBL entry are shown in the red box. In accordance with my Trade Plan, as this is a Bollinger Band bubble/sausage, the Standard Deviation 1.0 band will be the profit target for this trade.
[B]Now, we set and forget this trade, and allow the ebb and flow of the market to take its course - we have no control over what happens next! :)[/B]
The above trade was never triggered, and as the market continued to consolidate. Due to this, the Middle Bollinger Band came closer and closer to the Price Action, making the trade increasingly unfavorable, and consequently the Pending Order was canceled.
Upon waking up to an unfortunate defeat of Germany by Serbia, I recited by Success Pledge to enter my Trading Frame of mind, and scanned the markets for opportunities.
One trade was spotted and executed on the EUR/JPY, at an entry of [B]112.32,[/B] with the target being the Middle Bollinger Band at [B]112.48.[/B] However, I was unable to take a picture of this trade, as price moved to my profit target before I was able to obtain a screenshot! Overall, 2 contracts were closed for [B]16 pips each[/B] for a total of [B]32 pips[/B].
The next trade is from the GBP/JPY, my favorite pair.
Entry was made using a Count Back Line drawn from the candle highlighted in the red rectangle. This trade has favourable Risk : Reward, and it pleases me for this reason, but as I have vowed to myself - I have no expectations of the market; whatever happens, happens.
[B]Now we set and forget the trade, and allow the ebb and flow of the market to take its course![/B]
On that last chart how did you know to use that candle to draw your CBL. I thought the candle had to touch the outer BB.
For making your entry’s and exits why don’t you use DodgeV83’s EA. Just curious.
Do you have the rules for this system typed up or anything. I’ve been trying to read and learn this from the thread but the thread is so long. Do you have anything that sums up this system. If so I would like to have it if possible. It would be much appreciated.
Thanks,
[B]Hey there, PIPhanger[/B]
The candle which you use to draw your CBL [B]does not have to touch the Outer Bollinger Band.[/B] It simply needs to be an extreme candle, which is sufficiently above (or below) your profit target to make the trade worthwhile.
I prefer to trade manually for three main reasons. [B]Firstly,[/B] it enables me to develop as a trader, by getting the practice of putting myself into a “trader’s frame of mind”, and developing skills and attitudes essential to consistent success. [B]Secondly,[/B] I do not trust an expert adviser to trade for me, where my money is concerned :p. ([U]this in no way is meant to come off in a manner which suggests I am suspicious of Dodge’s EA, because I sincerely believe he has good intentions!)[/U] [B]Thirdly,[/B] my method has its discretionary bits, which I believe cannot be accurately accomplished through automated methods.
My method of trading this system is a bit modified, from the one found in the thread. The two main tweaks are the fact that I do not wait for the trade to go to TP2 at the Outer Bollinger Band, as I instead prefer to take two guaranteed bouts of TP1; and the fact that I trade the “no trade zones” provided they fit my entry criteria.
I have updated my Trade Plan, which is on the first page, which shows my rules for the entries and exits.
I opted to close my trade on the [B]GBP/JPY[/B] trade I had open, since today is Friday and there is an imminent close of the market in a few hours. The trade was closed with a loss of [B]2 pips[/B] per contract, for a total loss of [B]4 pips.[/B]
I have enabled my statistics to be shared via mt4pips! You can find the link beneath my name, or visit:
Happy pipping to all!
This is awesome xXTrizzleXx. I enjoyed reading your journal, the why and how you take a trade and manage a trade. One question, you usually set the pending order and let the market do its stuff, aint you worry about the middle bollinger band moving away from the take profit target? Since it’s a repainting indicator. I have some qualms myself on this set and forgot method.
Thanks for the encouragement, [B]ada ighty![/B] I understand that the Bollinger Band is a repainting indicator, and so before, I have previously been setting my Take Profit Level as at the level of the Middle Bollinger Band [U]at the point when the pending order was set.[/U]
During my weekend analysis, this has presented me with an interesting dilemma. With regard to the manner I set my Take Profit, as highlighted above:
[ul]
[li]If I am going LONG
[/li]The Middle Bollinger Band may move downwards, meaning my Take Profit Level would be higher than the Middle Bollinger Band. If the Price Action only moves to the Middle Bollinger Band, and retraces my Take Profit would not be hit.
[li]If I am going SHORT
[/li]The Middle Bollinger Band may move upwards, meaning my Take Profit Level would be lower than the Middle Bollinger Band. If the Price Action only moves to the Middle Bollinger Band, and retraces, my Take Profit would not be hit.
[/ul]
I have found a slightly better modification to the [U]set-and-forget method![/U]. This involves [U]setting[/U] the trade, [U]forgetting it temporarily[/U] and [U]returning to it frequently[/U] when the Price Action is near the Middle Bollinger Band. Thus I will be able to close the Trade at the Middle Bollinger Band, in the event that one of the two aforementioned scenarios occur. If the Middle Bollinger Band moves in an opposite direction to the scenarios I have highlighted above, then the Take Profit will be hit before the Middle Bollinger Band, which is perfectly acceptable to me. Hope that I am making some sort of sense here! 
Guess that’s the way as well. I usually set a alarm when price action is approaching the mid BB, so as to actively manage it. Not been making any trade the past 2 days?
Unfortunately, my demo account with Alpari has expired :eek:! I did not think the Alpari Demo Accounts had 30 day trials, and thus I have been spending a few days trying new platforms, to see if there is anything better out there than the standard MT4 which Alpari offers. I currently somewhat fancy FXCM’s TradeStation II and believe I will be using that to place my trades from now on. [B]I guess everything happens for a reason. :)[/B]
Happy pipping to all!
Try FXPro if you want, their MT4 demo doesn’t seem to expire.
Hello there [B]o990l6mh![/B] Thanks for the tip off - I will be sure to check them out. I hope you know it was your thread that gave me the [B]inspiration[/B] to start a trading log of my own, and one day hope it can reach the prestige of yours! I will be back in the trading game soon!
Happy pipping to all!
I’ve read your thread and I’m impressed. Like Tymen says: soldier on!
Amazing stuff Trizzle
Such logs can prove of great benefit for us beginners ! (Although I barely understood how you made your choices)
Hello lallous, thanks for stopping by! The decisions I made are based off a system which was introduced to me by [B]Tymen,[/B] in this thread, which I highly recommend taking the time to go through:
If you need additional support, as well as summaries of the trading method, feel free to visit [B]Merchantprince’s Website[/B], which also includes an active chatroom.
With regard to opening up a demo account with FxPro, [B]the website unfortunately seems to crash[/B] both browsers (FireFox and IE) when I attempt to go to it! I know that this is a problem on my end, and could be the result of a very poor maintained computer! 
However I believe I have acquainted myself with TradeStation II, and will now proceed to restart trading.
There is one additional detail though! [B]Tymen,[/B] has introduced us to the Macro Method of Trend Trading, and I must say, although it has a lower Win : Loss ratio, its much greater Risk : Reward ratio is very promising! I believe I will incorporate this method into my trading regime, which will better my trading because I now have a strategy for [U]ranging markets[/U] - the DNA method, and one for [U]trending markets[/U] - the Macro method. I will perhaps spend tonight developing a trading plan for the latter method, and will update the thread with it when I am finished. I would love to hear any improvements or suggestions you may have to it.
Happy pipping to all!
Great stuff, Trizzle! I love the way you are taking what we learned from Tymen and making it work for you. I have a few questions, items I would appreciate cleared up if you dont mind.
Any candle that makes contact with a BB 2 is considered extreme, correct?
Your CBL is one candle unless the outer BB 2 is still expanding, then it is two, correct?
Are your CBL’s based off of the body or wick of the candle?
Do you wait for a close above the CBL or just for the PA to touch it?
You only enter if your CBL is between BB 1 and mid correct?
Thanks for your time.
Hey there Pete Schweaty, thanks for dropping by!
Technically, an extreme candle, as I understand it, is one which is the furthest one from the rest in a particular direction. For example, in a series of candles going down, the extreme candle will be the one with [B]the lowest low.[/B] Conversely, if we have a series of candles going up, the extreme candle will be the one with [B]the highest high.[/B] [U]Usually[/U] when candles make contact with BB2 they tend to be extreme candles, since BB2 represents the extreme of the range, but in the event that several of them are in contact with BB2, the one with the [B]highest high[/B] or [B]lowest low[/B] counts as the extreme candle. I have highlighted it for you in the chart below, with a red arrow.
Whenever we trade bubbles or sausages (ie. the outer BBs expand etc.) then because these areas are risky, we use a 2 candle CBL. I have modified my Trade Plan so that I use a 2 candle CBL - even after the point of contraction of the bubble/sausage, because this will provide a safer entry in these tricky areas. At all other areas, our CBL is one candle, [B]except[/B] if the [U]body of the previous candle is smaller than the extreme one[/U], which we are using to draw the CBL. In this case, we must also include this candle with the smaller body. This can also be seen in the chart below, by the red line.
[I]Sometimes if the extreme candle is very large, ie. it extends close to the Middle BB, then you can cut it in half, and draw a CBL from its midpoint to effect a better entry, after doing some back-testing/demoing, you will get a feel for when you can do this.[/I]
The entire candle is taken into consideration - [B]it includes the body and the wick[/B].
The trade is usually entered as soon as the PA touches it, since I tend to use Pending Orders.
Yes, I only enter if it is [B]at least[/B] midway between BB1 and the Middle BB. The further away from the Middle BB though, the better it is, since you will extract more profit out of this larger move.
Thanks for your time.
Absolutely no problem.
Thanks for your help. Ill start demoing today and see if I am as fortunate as you.
