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.
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It's correct, Peter
EMA would give a more reliable visual reference.
Regarding the candle count, I would not hope the market to follow 5 candle retracement pattern strictly.. I'm very open to 6-7 candle retracement as well. May be more than that would actually rise some concern, which I'd probably have to agree with, but a limit of 5 is a bit tight, in my opinion.
Regards,
Edward
(P.S. Many screen shots to this strategy use 3 min time frame)
Hi all,
Can I ask if you will take any trade, the moment Moving average cross? Like it go for down cycle you wait for retracemnt and trade?
Will this be not follow the main trend or?
From,
Tin
..if it doesn't have any further instructions, then you're supposed to take any trade.
..this is not a very simple strategy to follow, I wish it was revised into a smaller, easier to read version.. but having it the way it is, one needs to read it up to 3-4 times to fully comprehend the rules..
May be.. try reviewing it one more time, but if nothing works, it would probably make sense to save the energy and time for another strategy..?
i wish rahul would come back and tell us more detail as to how he trades, because i am not getting the "impossible not to profit" from this
I agree with Rahul, If you only take Level 1 setups, and ones that fit the retracement criteria as in the diagrams, where the bars are the same size, or get smaller as the retracement progresses. This is very effective. I am trading various currencies on 1 5 and 15 min timeframes. accross these 8 currrencies and 20 charts including differing timeframes.. Sometimes there are no setups or only 1 setup, but if you can be VERY strict and dont take anything but the most beautiful of setups, and trade less often, this can lead to profits. at the moment i am getting the most success with GBPJPY and EURJPY on the 5 and 15 min timeframes, thats for this week.. have had 3-4 trades over the past 3 days on those and made 6 times my risk with one loss so up 5 times my total risk.
be careful, get profitable on demo first learn and finesse the technique and its worth it :)
Also, i'd only take the first pullback after EMA crossover or after they separate again after touching, but i looking at expanding this to second pullbacks if the first one was in an area of congestion or very minor
Superb strategy. Read the system instructions carefully and practice it with live charts over and over again. Over time, you will be able to spot good setups quickly.
I have used it with Great Success on M1,M3 & M5 with slightly different EMA settings, and it work well. Remember be patience and focus is the key when scalping the intra-day sessions.
Good Luck everyone.
Hi Edward,
Hopefully for everyone's convenience, I have paraphrased and collated The Floor Trader System notes from this site AND perused all the comments and added those which I thought relevant.
May I suggest should that those interested should read it and make their own additions etc. I am not recommending this strategy or any other, it is just my way of trying to understand any system. I will also upload Teodosi's strategy in a similar format.
FX_Floor_Trader_Strategy.pdf
Kind regards,
Peter.
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