My efforts at using Peter Bain's System

[albion]

Got closed out at 1.2218

Result: -21 pips

(so far this week -47 pips)

These last few days have been pretty awfull trendless days, and when a trend does come along I miss it.

Can anyone comment on how they would have traded today?

All ideas appreciated

[4XIS4U]

albion, what do you use for charting?

tkx

[albion]

I am using a demo account from forex-day-trading.com

[united46]

Albion

On the demo account, are your trading in mini's or full size lots?

Also, are you trading off of 15 min charts?

Thanks

DUFC

[albion]

Full size lots, I have a good understanding of money management but right now I just want to have a clear pip by pip view of what is going on. Id rather not confuse it with money management i could be trading 1 mini lot or 10 full size lots, what concerns me is how many pips I make a week/month

[united46]

Sorry Albion

I don't understand your last statement " what concerns me is how many pips I make a week/month"

Surely, that's all down to money management? Could you elaborate a little on what you mean by above statement?

Thanks

DUFC

[albion]

Deciding when to buy and when to sell has very little to do with money management.

Once you have a clear picture of what sort of average trade you make your drawdown etc then you can apply money management to tweak your trading.

Money management is deciding how many lots to trade, how much leverage, how much money to risk etc

[united46]

I'd have to disagree to a certain degree. Money management is all those things and more. It's what makes you the pips every week.

For example, over the last few days, you've made you're calls according to your system. Just looking at how many pips you've made/lost implies so far that things are not going well.

In reality, nothing could be further from the truth. Most of your calls have started well and been close to achieving your targets i.e the system works in predicting short term direction. At this point, if your money management plan had been to trade multiple lots, you may have peeled some off at half target etc.

By doing this, your results would be positive, not negative. I'm sure there are many systems that "work" in that they predict short term direction but don't make money for those that trade them. As Flyswatter said over on your other thread, don't let winners turn into losers. That's what you've done.

In your quest to trade PB's system to see if it works, you've proved it does, yet you've not made any money. Is that not the name of the game?

As I said when you started this thread, I don't want to criticise, but it can be helpful to hear other points of view. I've nothing but admiration for the fact that you are making live calls and sticking to your system. This, in and of itself should mean you will be a winner longer term.

I also have some other ideas but won't post unless you request as I may be P**sing you off by now.

Kind regards

DUFC

[albion]

Not at all DUFC, you've made a good point, and I have thought about using the method you've described. The reason I havent is a desire to keep it simple.

If I trade for a month and lose, then go over my trades I should be able to spot the kind of losses you were talking about and change my strategy to cope. With a money management system in place it could confuse things and I wouldnt neccessarily be able to see that. What I am really trying to do is distill trading to its purest form and try and master that. Hopefully when I do I can apply moneymanagement principles to my strategy.

Your post does highlight a point Michael made when he said "you should only go for 20 pips a day" If I had I would probably be up now.

I think this system needs profit targets based on the strength of the indicators involved in the entry. In retrospect I have been overestimating their strength, but it is something of an art form.

If you have any other ideas DUFC please share them

Thanks Michael and DUFC for your input

[fxsurfer]

I'd just like to add a couple more points to united's good post. I also trade PB's system. I find the pivot points are good but confuse me sometimes so that I usually just go with MACD and bar reading and just 3 main pivot points.

1. Try and aim for 10 pips profit and get out. (this helped me a lot and I saw my profits go up enormously because I was actually taking profits and not letting them turn into losses or break evens, you can always enter a trade again if it goes for the 80 pips he mentions. Don't expect to get all 80 it isn't necessary)

2. When you have >10 succesful trades in a row go for 20 pips BUT take half profits at 10 pips and set your stop for the other half at break even, then ride until you really get a feel for how the FX markets work.

I also have many more rules I have made for myself but will keep this post short. Hope this helps.

[albion]

I would be very interested to hear the rules you have made for yourself.

I think that is what this system needs, some rules!

[albion]

Pivots

1.2231 R1
1.2207
1.2182 P
1.2141
1.2100 S1

Significant levels:

1.2266 200 day MA (interestingly down on last session)
1.2263 Yesterdays High
1.2132 Yesterdays Low

9:15
RR tracks off pivot 1.2161 ,sell at next bar, 1.2154.

I have listened to Michael and DUFC and will start aiming for lower profit targets. My target will now be 15 pips a day, 75 pips a week. For this reason I have set the stop loss and take profit on this trade to 15 pips.

[united46]

Morning albion

Just catching up with your trades today. Question - you say the pivot is 1.2182 and we had RR off the pivot at 1.2161? Have you sold as PEter would say " in no man's land"?

Why did you sell at 1.2154?

Bit directionless at the moment isn't it.

Regards

DUFC

10.25GMT At last, it's moving in your direction!!!!!!!!!

[fxsurfer]

Hi Albion,

Eur/Usd is consolidating at the moment and bars in consolidation, can form many deceiving patterns so I would stay out until a trend develops.

Look for a hint of what the effect of CPI data will have on eur/usd from 08:00 to 08:25 NY time. If by 08:25 no trend has developed stay out until after the data release and then play it by reading bars. You should be able to pick up 15 pips during NY trading.

Note: I NEVER trade between 06:00 and 08:00 NY time, too much whipsawing-funnies go on during that time.

Cheers

[united46]

Albion

I take it your out at the moment earning a living!!

Looking at the charts, you should have made your 15 pips today.

Interesting to note that if you had set your target at s1, profit would not have been made and you'd be back to breakeven now. For a newer trader ( and even more experienced), I think taking small profits is a lot better than trying to get home runs.

Well done and keep it up. I enjoy the posts.