Advanced system #13 (The Floor Trader System)
Submitted by Edward Revy on January 25, 2009 - 12:29.
Yesterday I've got another great feedback from one of our readers - Rahul.
He writes:
Hello Edward,
I think you are a very noble person because you are doing great work here helping newbies and also dispelling the popular myths about trading to show ppl the reality. I think you have a very good heart. Thank you for helping all our brothers and sisters out there in the forex world.
I have found a strategy which is the real thing .... it has been used by a contemporary of Denis Richard and used by many professional traders who have made millions from it.
Read entire post >>>
Hi guys,
I have open a topic on this in the forum. Shall we discuss there?
http://forums.forex-strategies-revealed.com/the-floor-trader-system-t412...
From,
Raymond
Hi guys,
"The best retracements will contain 2-5 bars before the reversal occurs. In volatile price moves, 1 bar retracements are sometimes valid. Generally, rally retracements in a downtrend will be steeper and will contain fewer price bars than decline retracements in an uptrend. A retracement lasting longer than 6 bars may be suspect."
Does anyone know how to use the 2-5 retracement? Where do we start counting the retracement?
From,
Tin
Hi Tin,
We start counting the retracement as soon as we have an absolute price bottom or top (e.g. the Lowest low point or Highest High)
On the image below each points B is the Lowest low in the downtrend.
But in order for point B to materialise on the chart, we have to wait for the next candle to never reach (or match) the same lowest price level of the previous candle.
From that point you start counting 1, 2, 3, 4 etc - that's the candlesticks that form a retracement.
Regards,
Edward
Hi Edward,
Am I right to say that,the retracement count when the candle does not make lower low than the previous one?
Yes, that's where the count begins (for a retracement in a downtrend).
Regards,
Edward
Can I know this strategy is best used on which time frame? And also how do we apply the stop loss to it?
The strategy can be used across all time frames.
Try any TF from 5 min to 1 hour first.
Regarding stops, there are few paragraphs under "Protective stops" in the original strategy rules on the first page.
Kind regards,
Edward
Yes, this 2-5 bar retracement thing sounds alright, because i use the 5 minute bars on a few currencies but there have been few setups.. maybe this would help to find some.. but the problem is, if the retracement reaches 3 bars...and you think oh great thats within the limits, but then it gets you in but then retraces to 4 or 5 bars and takes you out due to the stop being at the top of the reversal top.
i thought this method had real potential and the first day i used it i made alot of money, sadly i have only lost money since that day... if there was some way to refine entries / optimise TF..would be good.
Post new comment