What's your basic strategy?

[Blooey]

When I first tried my hand at forex, I was using basic charting strategies like triangle breakouts, etc., but I'm finding that the whipsaws screwed me up and I was losing on every trade. Now I'm picking up on dips instead and I think I've made 20 successful trades in a row.

What's you guys' basic strategy with forex?

[Blooey]

Another thing I do is pick up on precipitous drops. When a chart drops 20 pips all of a sudden it's often good for a bounce. (Although I look at the day's chart to see how volatile it is compared to recent past.)

[techno791]

I *think* triangle breakouts are terminal. So they don't just cleanly fly forever.

I'm liking the basic stuff, trendlines and dailies. Need to give the systems a try again, every bit helps, but not for a few months.

Depends on what timeframe you work with.

[T-Raid101]

I'm still demoing but I've been profitable just trading trends, and dips like blooey. I tried various "systems" my first month that were talked about on various forums but feel they are inherently flawed in that every system you read about, always runs into a sleuth of exceptions. I just trust what I see happening instead of looking for something to happen.

[wolf825]

Congrats Blooey! Good job.. Forex once you get the hang of it is the best IMO....

FWIW--I use a series of basic Support and Resistance trading methods I have worked on building, and what I call a "past history" method, which I spent over a year developing and backtesting, which really friggen rocks. Sometimes I'll toss in divergence plays if I see one I like. But I only look for "high probability" trades based on a criteria I made for myself.... my trades are for mid to longer term moves--12-72 hours in duration for a trade to be open and happen. I use the daily, 4hr and 1hr charts mostly. Breakouts are fun--but triangle breakouts are difficult to play in Forex sometimes and often they will not follow thru...

Glad to hear you are doin well--keep it up!
-w

[Blooey]

Wolf, do you have an in-depth description of your strategy somewhere? Is it very complicated?

[wolf825]

Originally Posted by Blooey

Wolf, do you have an in-depth description of your strategy somewhere? Is it very complicated?

Blooey--I have never posted my methods 'step by step' (no one has ever asked me to do so)...its not complicated so much as it takes a while to figure out exactly what to look for..and when to look for things. I could explain it exclusively in detail, but it would be several dozen posts and charts. My trading as a whole is not singled out by a sole method with a rigid rule book...it varies as the market varies and conditions change.. IF a trader doesn't change when the market changes, and doesn't take charts AND fundamentals into consideration for plays--they can lose all they gained quickly.

I have already posted a few charts on some plays I have called here in an attempt to help folks figure stuff out and show how I do things and make my calls--and some of those charts and descriptions show rather clearly some of the things I look for, and look at, and how I make an assessment for a play to find levels for entry and exits and so on, and make a forecast and trade plan...

Suggest you check out some of my charts on some of the pair threads in this forum and see if you can see what I'm looking at...or if they bring up some questions (you can search my name for my forex posts, or just scroll thru the pairs I have stickied for some plays--EUR/USD, AUD/USD, EUR/JPY and USD/CAD are some of my main pairs I play...but I think I have posted in most of the threads..)

Additionally--I have posted thread topics here exclusively on trade plans and trade rules and things I use and consider--that should help.. Trade plans--you must use one in my methods--else you are trading blindly... Trade plans help a great deal with discipline and permitting a trade to "run its course". Until I startted using and making trade plans--my trading was haphazardous at best..when I started making plans and found my niche--things took off big.. I average between 50-150 pips per trade..on anywhere from 2-8 trades per week. I don't trade every week--I trade 3 out of the 4 weeks in a month--but sometimes the markets suck and need to be avoided for a week or so--being a good Forex trader means knowing when to trade and when NOT to trade--take advantage of the opportunities presented--don't force a trade that isn't there "just to trade".

After checking out some of my charts--If you have any specific questions or wish to know anything in detail--I have nothing to hide and am glad to share my info and methods and try to explain things.. I will even trade with someone in chat during a market time if time permits me to do so, to help them pick up on some things I have learned, answer questions directly and help them with fine tuning their chart reads... Or folks can post a chart here and ask for help as some have done--and I will tell you what I see and why... I'm not an expert who wins every time..but I win more times than I lose now...

I'm a Mod--helping folks out--thats what I try my best to do...so let me know what you would like to know.

-w

[iverson]

As I posted before, on a different thread, I am up over 60% using an algorithm that a buddy and I wrote. We use it as an expert advisor, but we make the finall decision on what to do. We trade only USDCHF and GBPUSD. Very simple strategy and it is working so far!

[techno791]

Originally Posted by techno791

I *think* triangle breakouts are terminal. So they don't just cleanly fly forever.

I'm liking the basic stuff, trendlines and dailies.

And once again, I'm not hiding anything, but the last few months, this is what I've been watching. Long term trendlines and candles. That simple.

I can't recommend it though, until I have a real trackrecord going that looks good.
Would like to add more candles and elliott. So that's all i can really say for now. But I love it when I see a trendline, wake up, and blamo, a bounce.

I think that's the best way to trade, do you're trade, and log off, pretend you didn't even do anything, wake up, maybe remember to check on it. That way you don't get into the whole casino mentality.
The casino mentality, however, is good fun if you want to have some fun now and then. As a hobby I wouldn't say stay away from those types of things permanently.

I know there's a lot of London Open methods and patterns. I guess that voids my point, except I haven't been able to watch them for a looonnnggg time.

[wolf825]

Originally Posted by techno791

And once again, I'm not hiding anything, but the last few months, this is what I've been watching. Long term trendlines and candles. That simple.

I can't recommend it though, until I have a real trackrecord going that looks good.
Would like to add more candles and elliott. So that's all i can really say for now. But I love it when I see a trendline, wake up, and blamo, a bounce.

I think that's the best way to trade, do you're trade, and log off, pretend you didn't even do anything, wake up, maybe remember to check on it. That way you don't get into the whole casino mentality.
The casino mentality, however, is good fun if you want to have some fun now and then. As a hobby I wouldn't say stay away from those types of things permanently.

I know there's a lot of London Open methods and patterns. I guess that voids my point, except I haven't been able to watch them for a looonnnggg time.

congrats! Simple methods always work the best IMO..I love what I am hearing from many members..this is great you all are finding your niches and methods that work...

When you complicate something--it complicates the end result you hope to achieve. Casino mentality as you put it is exactly what happens to many traders in the beginning--its like playing craps or cards or a slot machine..have to get out of that thought process. What I do is exactly as you said--make a trade and log off and check it again later...if you watch it constantly you will drive yourself insane and give yourself opportunity to over-think or complicate something that should not be complicated...

-w