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Showing posts from May, 2011

The Strategy in a Nutshell

The most important POINT for Entries:
Know exactly where your exit should be in case it turns around. Note: This is initial point of entry. This exit would usually be with a negative balance. This is what we call rent.
Moreover this exit point must be less than what you are willing to risk. e.g if you do money management on 15 or 20 pips. That initial exit point must be less than 10pips. This is a guide for our pair EUR/USD other pairs might behave a bit differently.

The most important POINT for Exits:
We better Call it Profit Taking Techniques. Do not confuse this with exit discussed above.
Exiting (with profit) is  always an executive decision.

But dont worry, if you dont want to burden yourself with making decision with every candle choose just 1 exit strategy. let it be either of the 3 as below.

How to Avoid 4th Wave Trading
Revisited: Sat, 28.5.11
Always Trade from a saddle point. In attempt to trade the 5th wave always be careful with the AIMS level on the left. e.g. if peak of t…

EUR/USD Strategy

EU is still range bound on the H4/H1 chart. However it did provide a nice short during Asian session. I woke up to what many call choppy period. Hence I started waiting for that right moment. When the setup is just right. Finally the AO was close to ZL and Allgiator lines inter twined. It was a setup on M1 as well. But following my rules of not trading m1 if M5 is at a saddle point I put pending on M5 level. Later added on at the peak of 3rd wave on m1 chart and exited on what I thought was a completed 1-5. (time will tell.) Note that 5th wave could not be confirmed on AO since its peak is higher than previous but I believe that is because we dont have sufficient number of bars on AO. we need atleast 100 bars whereas at this point we have only 65 or so.

Setup 1 : Picture of M5 to the left in the picture below is an Example of Setup 1. Alligator mouth was closed.  Setup 2 : M1 shows two entries both from Open Alligator. The first entry is higher probability where the second entry is on…

EUR/USD another story

Click to view animation




EUR/USD Strategy M1 Pre News

Sold break of M5 AIMS Level with trailing on M1 aims level.
thoughts: For News in case it goes in the direction of short trade would be good, but if it reverses since the short term trend was up, put a stop and reverse order.


looked like this on m5


EUR/JPY Animations

Setup 1 and Add ons Animation. 

Setup 2. Short Reversal Open Alligator Trade Animation


The Blog is Back

I had no idea that quite a few people wanted access to the blog. I received quite a few requests so I've decided to make the blog available to everyone again. Thanks for making me feel special. And please accept my apologies for taking it off without prior notice. cheers

H1 GBP/CHF and GBP/JPY

yesterday triggered a short on GBP/CHF. though I was aware of the drop before my entry. Hence I stayed in the trade despite the fact it closed on Red Line. However that was not the only reason I stayed in the trade. I would have closed it had it gone a bit furhter after the 8am candle close but it dropped at London Open which indicated it should give it another hour or so. I'm trailing candles due to consecutive red candles and bars. Not only that forex is highly volatile this pair is one of the top in volatility and sudden moves. My point is we must protect our realised profits. AS I write its still nicely dropping.




Similar  with GBPJPY entered prior to news. News brought the price back right back to entry price but candle closed with new low and never closed even closer to red line.

EUR/USD Strategy

Same stuff over and over again. never boring always exhilarating



EUR/USD Strategy

Some of you might say its getting boring same stuff over and over again. But really its not boring. Doing a simple thing over and over and making pips is the secret. I wont be here for long but these pictures might help some of you. I really do hope that it does.

Today I traded many a times but the following EU trade an EJ from Earlier were my favourites.

EU Late Trade. It does not really matter what the time is as long as the ticks are coming in. Ticks is "Chaos".

you'd be able to see that both had target points set based on TZ 62 and TZ100. I closed EU trade just now only because I am drained. There is divergence, but no yet a clear exit signal.  I hope it helps in our understanding of the way it is to trade. Wish you all many pips.


EU how it looked on M5


It looked like this when I was trying to enter the 2nd position.



EJ
I dont trade EJ on this TF but I was just checking and saw the setup so I just put the pending and the EA do its thing. But I also set a TP.

EUR/USD Strategy

An Excellent morning session. Later another prettier campaign was on offer but fortunately and unfortunately I was not available to trade it since I had taken what I wished for.





After closing multiple trade it setup again for what I thought was a fifth wave. That trade closed for BE and I left. I can now see that even a better 1-5 sequence was on offer for those who were still around.

This could also have been a very profitable trade using M5 on its own.



Questions

Answers
"Hello, erik here and thanks for your chart!
I have few questions regarding setup to enter new trade.
I am struggling making profit so I wonder:

ME: Firstly, profit and loss is a bi-product of trading chaos. You have to trade at least a month to 3 months and then conclude whether you're making money or not. However, I can assure you following this strategy you wont lose your account provided you follow the "Exit" signals correctly. Note that I stressed on Exit not Entry. You can make entry where ever you want but exit appropriately and you will create profits. Before putting a pending we should know exactly where we would exit otherwise once in a trade taking that decision could mean the difference between a consistently successful trader or otherwise.

1) When the alligator is sleeping and you break a fractal, would not be this fractal, often, inside the alligator so not a valid one?

ME: When the alligator is sleeping and AO is close to Zero line and AIMS …

EUR/USD Strategy

I have just a picture to share!

بس ایک تصویر۔ کیا آپ بتا سکتے ہیں کہ یہ کیا ہے؟ 



If you want to succeed, you must be happy!

The Secret to success is to be happy. While many believe "I'll be happy when I'm successful" the reality is quite different. You cannot be successful unless and until you are happy now. So the question arises

How to be Happy Now?

There are many ways to do this. I'd like to talk about it in more details later.

M5/M1 Trade on EU - Setup 1 and Setup 2 Examples

The following is a pictorial account of how we trade EUR/USD using our EUR/USD Strategy.
We Display M5 and M1 Charts side by side and compare both charts for entries.
Making sure we trade in the direction of Alligator on M5 (Trend Trading) and while
alligator on M5 is open we wait for Alligator to sleep on M1 to make new trades/entries. Simple.
We also do reversals like this. Which is also simple. if you see price gone too far too fast away from
Alligator on M5, any setup on M1 in opposite direction would be our reversal setup. I'll discuss this some other day in more detail, for now enjoy this story. thanks for watching!

and yes, at 17.25 (chart time) before this trade we took a saddle point entry off M5. For some reason I later exited for 66 pips without an M5 exit signal. I was perhaps in a different sort of mood yesterday. 

Setup 1 - Initial Entry


The Above picture to the right side of the chart or M1, Setup 2 is developing. The two green candles should create an AIMS Level. 
T…

Post NFP

NFP Brings alot of "chaos", that is new incoming information. We want this. We like volatility/volume. We want Chaos to be around us. All we have to do is look/wait for a setup. We need to have an attitude of Gratitude. We need to have a clear mind. We need to have mindset of being in the "Now". Which means stay on a chosen Time Frame and Ask, Is this a setup?.

Have a look please at this example.


Erik Asks a series of Questions!!! I reply with thanks...

Erik: "hello and thx for this great exemple..."
Me: thank you,  my Pleasure Erik!
I have few questions regarding Entry Set up:
1)Would you not use Wiseman1 and WM2 as its a contretrend technique and it means that entry point is far away from red line and ZL? Am I correct?
Me: We dont use counter trend techniques. My understanding is that the first step is to understand that the market is structured. It has a structure. that structure is the EW, then EW has a structure that is AIMS. So our job first of all is to trade "With the Trend" following the structure of the market. In doing so we would be able to "change" our under-lying structure and hopefully be "in-tune" with the market. This effectively will help us achieve the Holy Grail, that is "Want what the market wants". 

Once we have mastered this, we could look into trading reversals. So No we dont use WM techniques for now. 

2) Do you use any technique for new entries while you are…

AIMS Trading System | Forex | Stocks | Futures: A Perfect Example of Wave Counting

A Perfect Example of Wave Counting

This EJ trade started off a saddle point on M5. It dropped 100 pips. Then performed a bautiful 4th wave and then dropped for a perfect 5th wave. It does not get any better than this. Trust me.


~EU M5 played well

Just a quick update on an M5 EU trade which I thought was not good. Of course the ones that I "think" are good or bad are the ones that do the opposite. Being right in trading is a rarity. Anyway here is the picture.

A Twin Peak sell signal was created indicating some sort of short momentum. at 11.20 Alpari UK on m1 starting 1.4880 was an m1, First bar of AO setup. I chose not to take it due it price being insides AIMS on M5. But I thought I must give it a shot using m5 rules. It worked well.



Trading is 90% Mental

Hi perhaps a quick Sunday Service! LOL

Just a simple question how much do you agree with this statement

Trading is 90% Mental?

If you are like me, and you believe in the above statement, how much effort and energy do you think you should invest in Entry, Exit and Money Management side of trading? should it be 50% , 100% or less than 10%? 
Think about it! 

Then tell me, have you ever asked yourself, 
Hmmm, so How do I work on my "Mind"? Did it ever cross you? 
Have you ever come across a Blog, a Website a "Guru" who talk about 
what I have just created

"Mental Setup"? 

Here we are with 
1. Entry Setup
2. Exit Setup
3. Money Setup
and now
4. Mind Setup. or (Mental Setup)

Did it ever occur to you, what mental setup should we have?
How many "Indicators" do we have, if any, in order for us to identify whether we have the correct "mental Setup" when we trade? 

think....... (this post is straight out of the box no editing)