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Showing posts from July, 2011

Live Trade Example - Setup 1 and Add ons to Maximise Profits

A Thing of Beauty - Setup 1
The Rewards of Waiting for the Setup to be Just Right


Woke up this AM to see that EU trend just before Franfurt Open, so I thought it was good time to relax and have fun with little Adam and Sarah. My too angels. (Dare I say that LOL)

Patience and Discipline - We Get Paid to Wait


After much wait , which was NOT boring, was fun. I was just watching the price nicely go into a saddle on m5. and keeping an eye on m1. as soon as M5 created a saddle point (setup 1) aims levels nice and tight M1 turned an even "a thing of beauty" Picasso Setup,  Setup 1 (saddle point). I was so excited and so confident I added on on every aims level I could see. Even a balance line trade. The path of least resistance was down and I was in tune with the market. Hence the path of least resistance of the "energy" of "pips" was in my "pip bank".

With 4 entries and a lovely drop got me +100 pips in no time.

But how did I do it? 

It was NOT just 5 mi…

How to Trade the Dots - AIMS Entry Indicator

Here is a beautiful trade for this morning. Using NO LOGIC. Just wait for alert. Put pending. Wait for Alert Exit.
Simple is THIS!

Setup 1.  At the time of putting pending order short, it was Setup 1. That is the alligator was sleeping and price was inside aims and dot was inside aims as well (meaning the candle with the red dot was still inside aims.)

Setup 2. At the time of trigger the alligator had opened up already. So we put our pending around Setup 1. but by the time our order triggered it had converted into Setup 2. Setup 2 usually comes right after Setup 1. But Setup 2 can at times come without Setup 1.

How to trade the Dots

Another fine example. It was not that easy though. It required patience and discipline. One thing that I learned from my friend Bill was this, Patience and Discipline. and no its not Bill Williams, (I wish) its another trader of the ghetto. So patience and discipline go hand and hand. One cannot exist without the other. Some say its the same concept two dimensions. I'd like to show here how you can put two charts side by side, either on one monitor or using 2 separate monitors and asses the situation without looking at any other time frame at all. Point to note AT ALL. I shall talk about the purple line some other time.  Explanation on the chart please click to enlarge to see the full picture.


Ok I know what you're thinking, i did not exit on the blue dot but dont you worry about that. In order to start trading "Stress Free" you must train your self to enter using dot and exit using dot. and with time before you know it you will learn how to take maximum out of a tre…

Nice Trade - Setup 2 Entry

An Example of Setup 2 First Entry.

note that by the time I entered, Alligator was nicely open to the down side. and the first entry was essentially at the break of the first AIMS Level outside the Open Alligator's mouth. We need to start our campaigns closer to the point from where the alligator opens up its mouth. This was we avoid getting in too late into a trend. I must say the second entry was way too late but sometimes there are other factors in the market that I take into consideration and act accordingly.


An Example of  SETUP 2 - Open Alligator

Setup 2 - How to Trade the Dots

Just wait for the Dot Alert then  Check the Setup RulesSetup 2 Example
Now wait for Exit signal. If you took short trade, like below, using a Red Dot alert wait for Blue Dot.  If you took a long trade using a Blue Dot wait for red dot to exit. Could it be simpler than this?


Edit: 25th July 2011
Empty Chart followed by explanation of how to count Elliott Wave in 10s and How make entries and exits on Dots
Empty Chart.

Find happiness and fulfilment in your life!

If you want to find greater happiness and fulfilment in your life, 
You must begin to live in harmony with the natural rhythm of the universe.
You must choose to live in a place of gratitude,  greater peace, and higher conciousness.
You must learn to follow your bliss, do what you love,  and make time to find joy in your life
It is your natural birthright to be happy,  and it is your obligation to express yourself through your natural gifts and talents in a way that brings you joy
By doing so, you are also making an essential contribution to the world we live in.  
(Jack Canefield)

The markets are a natural phenomena.  Chaos is the code of life.  Our setup is based on Chaos.  Trading chaos is trading in sync with the natural law of the universe.  Isn't it amazing to know that when we trade our setup we are in line with the natural order of the universe?

and now time for some
Stress Free Trading Example


"To Choose to Choose or not to choose"

I'd like to quote something very important here.

"The market will always be a reflection of you"....
"if you are not having fun trading, you are doing it all wrong"....
"most important choice in the world is ,'either to choose to choose or not to choose'"
If you choose to follow a mechanical system you have not really chosen to trade the market.
and all mechanical systems will fail. You need to see through your need to be dependent on others.
"Your true nature is all you need. "

Let it show you what you do not need.

Listen quietly for a moment. Everything can change right now. Learning to hear this supreme secret is no more difficult than to "choosing" whether to swimming against the current or to let it carry you safely down stream. Let the secret speak to that secret part inside of you. Listen to it now. It is showing you

THE HOLY GAIL, 

which is

Want What the Market Wants
Trading Chaos 2nd Edition p. 44

Came back from late Gym

I had put a pending on m5 to target 5th wave. that hit its target for 29 pips. but what happened was interesting. market was really volatile. So I targetted 5th of that spike up and this is what I achieved. off to bed now

Count Elliott Wave in 10 Sec

Example of Setup 1 and Setup 2. In the Chart below the blue arrow that point to the Red Dot is the spot which we Call Setup 1. The next AIMS/Fractal Level immediately after it broke down is what we call Setup 2. At the Red Dot alligator was sleeping. While at the second break Alligator mouth was open to the downside. 
Updated 11:00 BST

Setup 1 and Setup 2

A quick 70 pips with 1st Position off Setup 1 and add on with Setup 2.
Price is out of Alligators mouth and out of AIMS on Dailies, H4, H1, M15, M5 and was just setting up (Setup 1). Put pending with minimum risk at 26, and then when the breakout was confirmed, alligator opened its mouth using Setup 2 made second entry. 


ps: The secret Purple Line is something I have not talked about! 

What do you ask at the end of a Trading Session/Day/Week?

Typically traders ask these questions

*          How much money did I lose today?
*          How much of my trading account have I destroyed today?

or the affirmative questions,

*          How much money have I made today?
*          Home much has the account grown today?

Regardless of the questions above and the answers to them, this attitude is going to disappoint you. It is going to frustrate you and promote fear of trading. Its going to invite anxiety and confusion. Its going to put you in to the dreaded downward spiral.

So what should we ask? What is the Correct Question?

Many traders, particularly beginners, look at how many trades they won or lost during the day. End of the week they look at home much have they made or lost.

While it is also important to know how much money you make during a certain period the question to ask at the end of a day is not "How much money have I made".

The question we should be asking First and Foremost, is , in the words of Bill William…

Do you know the system inside out but still not making money?

If you are one of those who know their system but still either consistently lose money or not making money you might want to read this.

You may be suffering from two inter linked things. Fear and Procrastination. They are both the main reason for failure. It is the opposite of decision and Lack of decision making skill is on the top of reasons for failure as agreed by many scholars and writers around the world.

The ability to quickly and effectively arrive at a definite decision is the difference between successful and non successful traders/people. Hence the 10second rule.

Do you think you can take a setup within 10sec? If not procrastination might be the cause.


The fear of trading is what gives birth to procrastination. Its the killer of all opportunities.

How to cure Procrastination:
There are many books on this very important topic. I sometimes suffer from this and all the "coulda, shoulda, woulda" kill me afterwards. Bill Williams was asked what was the worst thing th…

The Girl said, "EURO Dollar Red Dot Five Minute"

This is how the Entry Alert Works! Am loving it!

When the Alert comes, wait for it to setup. Some times its setup already. Today at the time of the alert it did not look like it was going down. But after a few candles it was all clear. Entry at 1.4337. I exited prematurely (the left won today) for 50 pips. Did not add on did not stay through. Perhaps the "fear" of NFP obscured my vision.


EU H1

Entry Indicator Example

Question! Inner or Outer AIMS Levels

The Question is when you have a saddle point should I take the inner fractals or outer fractals. 

In the following picture you'll see that I took a third entry from a saddle point. At first I choose to set pending order at the AIMS level marked by yellow horizontal line showing outer most fractals Level was at  1.4290 for I set PO at 1.4289 that is 1 pip below AIMS Level for shorts as per rules for short trades.
Later I felt like it was ok to move to inner most fractals. The reason was that now I thought price had travelled enough sideways inside even a tighter range. there are advantages and disadvantages of it. its always a subjective decision. outer most fractals are safer , in that you dont get whipsawed but the downside is that you give back more if it turns around on the contrary inner most fractals has more chance of whipsaw but potentially smaller risk and larger gains. So the same universal law of risk applies, the higher the risk the higher the return should be.

A perfect Morning for the Dots on M1

I'd just like to show how to dots alert me to trades when we have setup 1, saddle point and later re entries into a trend.





M5

ps: dont worry about the purple line, I'll explain in time!!!

Just after Question time this happened

As soon as I finished answering Erik's questions, I heard Heather utter these words, "EURO Dollar Red Dot One Minute" (thank you Michael),  I looked and saw a spike and retrace immediately put pending and out for 30.
similar for Swissy (usdchf) on m5 and out for 50 pips in a flash!

These charts they do have a structure! they do eventually complete the fifth wave!
dd

d

Question Time!

Thank you Erik for your questions. I'll try to answer as best as I can!


5 questions please:

When M5 is at saddle point:


Option 1.
If AIMS levels are two shallow
WE bracket the market using outer most fractals of M5

1) You mean you will not wait for an entry on M1 but a break of AIMS levels on M5?

Imran:  Yes, we bracket outside M5 only. and we might add on once the trend is confirmed, using Aims levels on m1, or m5 or both.

Option 2.
If AIMS levels are Deeper then 15-20 pips
and/or the outer most fractals are wider apart,

2) You mean 15-20 pips from a AIMS limit to an other or from AIMS limit to Red line?

Imran:  As a guideline for EURUSD on M1 time frame,  if AIMS Level are farther apart more than 20pips then its too much risk. And yes I mean from one AIMS levels , i.e. from either Upper AIMS Levels to Lower or  vice versa. If you chose to exit on candle close of red line then you need to see how far is your entry from red line. if that is over 20pips chances are you migh…

Update to previous post

AU

Is now in the fourth wave!

EU, possible set for further longs, blue dot with an AIMS level... one could go long

Ucad, at the lows, we need a bit sideways here, but still could be ready for fifth down

EJ, also done alot and needs a sideways so we could have a tight gator even on h4

UJ, now set for long and short. bracketing is the way to go.

Swissy, now confirmed in 4th wave, we wait!

NZDUSD, interestingly has been wonderful pair that I have ignored might start trading it again.





H1 Setups Analysis for Monday

Only Pictures AUSUSD
USDCAD
USDCHF
Cable
EURJPY (Japanese Princess)

USDJPY (The Lazy Samurai)

AIMS Entry Indicator - Cut the thinking and Trade what you see!

Hi

Its morning and its Friday. If you were up for the HD session (ie Frankfurt Open at 6GMT) You'd have enjoyed a saddle point on m1. This is what we do. We want a confirmed trend on m5 and find an entry on m1. How do we do that. We have two setups. Setup 1 is what we call the saddle point. Setup 2 is the Open Alligator setup. Please click here for further details.

For months I was wondering if only I could get something to alert me while I was away from my computer It would save me the headache of checking my charts again and again without any solid reason. Well now I have found the answer. I dont like to clutter my charts with arrows and big symbols but I sure needed something alert me to the charts. After all even if you're trading the busy M1 charts there are periods of inactivity. Hence I thought a sound alert with a dot on the charts would just do that job. I can sit in the sun or perhaps help my better half change the little one's nappy or something!!! The Dots are…