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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Hi Edward,
Am I right to say that,the retracement count when the candle does not make lower low than the previous one?
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 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 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
i would be up for a trading room, that sounds like a great idea, we can discuss which setups to avoid and which ones we all feel have high potential.. has one been setup?
yeah... AWESOME strategy..oh wait except I have only taken level 1 setups and lost 16 % of my account at 2% risk per trade over the last 2 nights.. GREAT!
4 out of 5 trades will result in the price coming back to your original entry. Wait for the one that runs and let it run for days and/or weeks....Cut your losses on the 4 out of 5 that lose and let the one winner run for days or weeks... 1% risk management on whatever time frame you can afford for the setup.
Great idea, I think if we post this at FSR Forum we may get more replies.
Please feel free to create an account and open a topic there.
Best regards,
Edward
Would anyone like to create a trading room? if so, please post your interest here and I will look into contacting you...
Hi,
Where did you stop last time when testing the settings?
Were the default suggested TF and indicators working for you?
It'd be good to have a summary before we can work on improvements.
Best regards,
Edward
What is the indicators and tf Do U recommend me to filter entries? To determinate major trend?
Can I use the same template?
Thanks...
Hi, yes I am still using this system and it works well. It is very simple but effective. I don't think an EA would work well for this because part of it is subjective, recognizing a strong setup and passing the weaker ones.
Like most systems it doesn't work in all market conditions. The MAs can go into tight ranging periods where they criss cross tightly back and forth. This is when to stay out and is only learned by experience and using discretion. This isn't really a mechanical system. If you have any specific questions about manually trading it let me know.
Josh
Hi,
don't get me wrong, but using the system and sitting on this forum in not the same.
Sharing an EA also requires a special men.
Thomas
any body still using this trading sys? I interested in an update. Pls help and is there any EA for it
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