My Day Trading System

[psb67 10]

Day trading, perhaps the most interesting at the same time highly testing a venture of all trading methods.

 

I wanted to share with you all the trading system I follow, which I found to be highly interesting.

 

I have attached 5m and 15m charts of GBPJPY & USDCHF of today's european session.

 

Healthy And Wealthy Trading

[shopsmart 10]

Hi there..

 

What exactly is the system? Would you be kind enough to elaborate?

 

Thanks..

[psb67 10]

Hi there..

 

What exactly is the system? Would you be kind enough to elaborate?

 

Thanks..

 

Hi Shopsmart,

 

Thanks for your reply.

 

I would be more glad to explain my system to you, if you would be kind enough to share with me what do you perceive from my charts.

 

Once you understand the functioning of it, you can make even if you don't want on an avg. 50 to 100 pips a day.

 

Healthy And Wealthy Trading

[Trader333 10]

It looks to me like you trade around pivot points based on some combination of awesome oscillator, macd and whatever that gooey orange indicator is.

 

 

Paul

[psb67 10]

It looks to me like you trade around pivot points based on some combination of awesome oscillator, macd and whatever that gooey orange indicator is.

 

 

Paul

 

Hi Trader,

 

Perhaps this is the first time, I am hearing a lovely name, "Gooey Orange Indicator" lol

 

Thanks anyway Trader.

 

I will try to be brief and succinct.

 

1. Pivot plays 10%

2. AO,EMA-200 & MACD 40%

3. The Gooey Orange Indicator 50%

 

The whole combination esp. in 1M makes tremendous impact. esp. with GBPJPY & USDCHF. My most fav. pairs. At least in a day, conservatively speaking, 2 times you get a chance to make a min. of 50 pips each confidently and assuredly.

 

Healthy And Wealthy Trading

[Trader333 10]

I remember seeing the orange indicator somewhere else but I cannot remember what it was.

 

 

Paul

[psb67 10]

I remember seeing the orange indicator somewhere else but I cannot remember what it was.

 

 

Paul

 

Paul,

 

It's a Rainbow Indicator for MT4. There is no big secret involved in my system. It's a matter of how we fine tune our system to suit our temperament.

 

In my trading, I don't depend 100% on TA alone, perhaps that's one of the reasons I am being to some extent successful in my trading.

 

I am learning, I don't mind being modest, to exploit this system to the fullest extent for my Equity index as well as forex trading and share it with you all.

 

Healthy And Wealthy Trading

Edited April 19, 2009 by psb67

[psb67 10]

Hi Friends,

 

My today's GBPJPY 1M Chart. Regret could not post earlier since I was busy on a long telecon with my friend from US.

 

Healthy And Wealthy Trading

 

Sureba67

[mfondren 10]

I am very anxious to hear more about this system !!!

Put it up in a window beside my usual system today - did MUCH better than usual -

just basically using the trigger buy/sell when the AO is above/below the 23 day

moving average and the MACD crosses

May have just been an odd day but it almost works out to be a SAR system !

You said you use the rainbow indicator 50% - for exits I presume - I was watching

for the AO to go under the MA and/or MACD crossing for exits - I don't have the rainbow

indicator available and was using a similar one with a series of Hull MA's

Didn't look at the A/D much but am guessing you are using it to get an early heads up/confirmation of market direction

Please post more details on how you trade your system ! Today would be good - yesterday would be even better ! LOL Thanks so much for the information - kinda excited about using it tomorrow !

[psb67 10]

I am very anxious to hear more about this system !!!

Put it up in a window beside my usual system today - did MUCH better than usual -

May have just been an odd day but it almost works out to be a SAR system !

You said you use the rainbow indicator 50% - for exits I presume - I was watching

f

Please post more details on how you trade your system ! Today would be good - yesterday would be even better ! LOL Thanks so much for the information - kinda excited about using it tomorrow !

 

Hi MF,

 

Thanks for your reply.

 

In fact, couple of forex brokers showed keen interest on my system and they wanted to make autotrader out of it. Only I don't believe in autotraders.

 

My aim is to achieve at least on an average 20 to 30 pips per trade with minimum drawdown. In trading, there are no would have been, could have been and everyday is a new day. Frankly, one of the reasons I am not making big noise about my system, although it took lot of efforts to form such a wonderful system to suit my trading temperament and it is working well for me, the system that works for me, may not work for others. This is an universal truth.

 

That's why, I had started a Real time Free Scalping Calls for my friends instead of trying to explain them the whole system. Besides, this is yet another reasons I leave it to my readers to interpret the system so that they can fine tune it to suit their trading temperament.

 

Most of my entries are based on strengths and weakness of the price movements. MACD and AO are excellent in identifying the same. If you had noticed I use higher numbers in MACD in order to avoid whipsaws as GBP/JPY is prone to move erraticaly. Rainbow helps me with S/R and trend direction.

 

Since I am from Stocks background, and have been in stocks since 1992, I exit when my target is achieved, I don't bother about where it goes fr. my exit. I wait for the next turn.

 

Healthy And Wealthy Trading

Edited May 5, 2009 by psb67

[psb67 10]

Winning Strategy - My Personal Experience

 

It's more essential to work on yourself to get 100% positive result with accuracy than just working on your trading system to work for you accurately. In simple words, 80% work on yourself and spare 20% on your trading system.

 

Once you start practicing this, even if you don't want to win your trades, you will win because, it's not your trading system that's making your winning trades, it's YOU.

 

Healthy And Wealthy Trading

Edited May 5, 2009 by psb67

[psb67 10]

I am attaching here my M1 and M5 GBP/JPY charts for your understanding.

 

It's a real fun trading gbp/jpy, esp. scalping. We did so far very well and we are calling it a day.

 

I regret the idea of using web based IM Meebo in my blog didn't strike earlier.

 

Healthy And Wealthy Trading

[brownsfan019 17]

psb - you should join us over here when you are done for the day!

[psb67 10]

psb - you should join us over here when you are done for the day!

 

Thanks Brown. I will join you there. I am sure, I will improve a lot with you all around.

 

Healthy And Wealthy Trading

[psb67 10]

Hello friends,

 

Yet another highly charged session with huge volatility, with good chances for scalpers.

 

We could not do more than 4 trades since I was not keeping well. One was a real bad call but in just 3 jumps my target was reached. I had never seen in one shot 30 pips jump in gbp/jpy as I had seen today. Only later realised it was due to the unexpectedly positive data released at that time.

 

I violated my own rule, "Do not force yourself to trade when you are not mentally, physically fit". It was a chance I took.

 

We called it a day with 55 pips with no losses.

 

Healthy And Wealthy Trading

[mfondren 10]

Hi again psb67 !

I have used your system for several days now - I was trading on a small time frame and was amazed to back off ( 15m chart ) when the day was over to see what lousy days they were ! That being said - they have been the best days I have had in the markets in as long as I can remember !

As I said before - I do not have access to the rainbow indicator and my substitute really didn't tell me anything new - didn't use A/D ( used Williams A/D ) until today - with the addition of your moving average it helped a lot

I also use two CCI's in one window - 14 and 50 - when things are smooth they get me in a little more quickly and also help to enter in the middle of a MACD trend - Also use MACD crossover with a MA4 - when there is the least bit of chop I wait for the MACD to cross its long term MA

This morning I dropped down to the 1M chart and traded most of the day with that - made money trade after trade ( this is all GBP/USD ) - Your MACD with that longer term MA smooths it out and it trades like a 5 or 10 minute chart !

R/R Excellent ! Win/Lose Excellent !

Have to tell you - when I first saw your post I was thinking " Oh Boy ! Heres the 142nd set of MACD magic settings I have seen this week ! " So glad I tried them !

How do you get your profit targets ? Fibs ? I need to look at that - haven't seen a good exit point from the indicators yet - sometimes just the MACD works - wait for it to flatten out - but not sure yet if that would work in the long run - the built in delay that is so deadly for entries is slow to show an exit

Again ....... can't thank you enough ! My trading has staged an absolutely amazing turnaround - thanks to you !

BTW - 54 pips yesterday - 83 today !

[psb67 10]

Hi again psb67 !

I have used your system for several days now -

Again ....... can't thank you enough ! My trading has staged an absolutely amazing turnaround - thanks to you !

BTW - 54 pips yesterday - 83 today !

 

Hi MF,

 

It's always heartening to listen to even a single trader sharing his experience, both positive as well as negative in a public forum so openly; it helps both the concerned trader as well as the person whom he/she addresses. It helps in a such a manner to improvise further.

 

Coming to your point,

 

1. <<How do you get your profit targets ? Fibs ? I need to look at that>>

I set my targets, reasonably - for gbp/jpy - if scalping, 20 to 30 pips per trade, if position trading min. 100 pips. At times when I see the trend is reversing, I won't mind getting out with even 10 pips. Once my expected target is achieved I close my eyes until I get a next chance. I won't bother even if it runs 100 pips fr. where I made my exit, unless I get clear entry. I never chase the trend.

 

2. <<As I said before - I do not have access to the rainbow indicator and my substitute really didn't tell me anything new - didn't use A/D ( used Williams A/D ) until today - with the addition of your moving average it helped a lot>>

Try to Make your life easier and enjoyable while trading but always have high dreams. It's not your system that makes your winning trades, mind you, it's YOU. The system only plays 20% on your entire trading.

 

All you need is couple of bar charts with EMAs, MACD, AO and CCI with SMA (it's too sensitive) or even Stoch with higher nos. is better along with Fib. I have Rainbow, undoubtedly it's an excellent indicator. Don't bother if you don't have it. Don't try to replicate it. Not required.

 

3. <<Have to tell you - when I first saw your post I was thinking " Oh Boy ! Heres the 142nd set of MACD magic settings I have seen this week ! " So glad I tried them !>>

I love this part. This attitude always helps improving one's self. Just imagine in the last 3 years, how many such indicators I would've worked with to reach today's level. It takes time my friend. I respect your conviction, commitment, involvement and interest. The most essential 2Cs and 2Is for any man/woman to become successful besides being a responsible trader with lot of greed. (Read my blog about my understanding of GREED)

 

4. <<I have used your system for several days now - I was trading on a small time frame and was amazed to back off ( 15m chart ) when the day was over to see what lousy days they were ! That being said - they have been the best days I have had in the markets in as long as I can remember !>>

As I had mentioned often times, every system is unique, it's not mandatory the system that works for me should work for you. If you want to make it work for you, you must blend with it, for that you must observe it, fine tune it until it suits your real temperament before placing your first order.

 

To share with you, when I pick up a currency pair or a stock, I observe it, at times even couple of weeks until I am convinced I am comfortable with it. If not, I forget it, however great it is. Now, you know why I love gbp/jpy and usd/chf. I follow a 21 days formula that I devised when I was a marketing consultant to chose my pair or a stock.

 

My advice:

 

Work with one or two pairs. Avoid tracking every pair that moves up and down. If your pairs do not give any trades for the whole day or for few hours, consider that day is a holiday or for few hours, time for relaxation, go out with your gf or to be on the safer side play Freecell. With Freecell, you can preserve your wallet and improve your concentration. lol

 

For scalping, Use 1M chart with MACD, CCI with SMA or Stoch, AO. Use 5M and 15M for trend direction, Fib for S/R. You must have real patience if you want to use MACD or CCI or Stoch with higher numbers. I notice you have already started getting used to it.

 

IMPORTANT: Once you have achieved your day's target, say whether in 1 trade or 5 trades, close your trading application, do something else. Once you start doing that, you will experience the true meaning of life.

 

<<Again ....... can't thank you enough ! My trading has staged an absolutely amazing turnaround - thanks to you ! BTW - 54 pips yesterday - 83 today !>>

 

Thank yourself for allowing yourself to really work seriously for the first time with the sole intention of winning your trades and improving your spirits.

My losses were my investments. We all tend to ignore this fact.

 

Healthy And Wealthy Trading

Edited May 6, 2009 by psb67
Correction

[psb67 10]

Hello friends,

 

Hope everyone is doing well.

 

Attaching with my usual gbpjpy, eurusd charts for your understanding.

 

Healthy And Wealthy Trading

[psb67 10]

Hello Friends,

 

Hope your weekend is going well.

 

Looks as though the present trend of Pound will continue for few more days. Attaching here my gbp/jpy charts for your understanding.

 

Healthy And Wealthy Weekend

Healthy And Wealthy Trading

 

Sureba67

Edited May 10, 2009 by psb67
Correction

[mfondren 10]

"Looks as though the present trend of Pound will continue for few more days."

Yeah Psb67 - just rub it in !!!! LOL Sure wish I had been trading Friday !

 

I am learning more and more of the subtleties of your system every day ! Has worked magnificently for me as is but there is much more to it.

As I said before, I use the CCI 14/50 ZL crossover a lot, however it is just too noisy - it needs a filter. I have tried MA's but they just seem to kill its effectiveness - Enter the Psb67 Super MACD - LOL - Using the Macd as a filter it performs almost flawlessly - I have noticed that that when the CCI is very jittery the Macd keeps me from using it - by the time it settles down, I am " permissioned " to use it and it is accurate.

One other very interesting thing - I am using the AO but am becoming persuaded that the A/D is more accurate - less noisy ! Its a very subtle thing,but I have noticed that when I am " permissioned " by the MACD - and the A/D has ticked up, even very little, the CCI signal is a good one - it seems very consistent - like I said - it is very subtle - but seems to be reliable.

One of the most powerful signals I have seen is when there is a long term bias to the market - the A/D is positive - and there is a " notch " in the A/D - it drops to near zero. perhaps slightly below - If I start getting buy signals at that time they are nearly always powerful moves ! Its a form, I think, of how the COT is used in the Futures market - a peek into what the commercials are doing.

Psb67 - I went to several other sights where you post and was very impressed ! I would love to hear your insight as to what kind of trading hours to keep - I am retired and could trade 12 hours if I wished but ....... not with focus - not effectively - what are your thoughts on this ?

Also - all constraints aside - social obligations, sleep etc. aside - what hours would you prefer to trade the GBP/JPY and the USD/CHF ?

As always - Thanks so much for your insight and help !

Mack

[psb67 10]

"Looks as though the present trend of Pound will continue for few more days."

Yeah Psb67 - just rub it in !!!! LOL Sure wish I had been trading Friday !

Mack

 

Hi MF,

 

Hope you are enjoying your weekend. Your tone however exhibits you are really enjoying your weekend.

 

<<Psb67 - I went to several other sights where you post and was very impressed !>>

Glad to note you spared your time visiting my posts.

 

<<As always - Thanks so much for your insight and help ! >>

I assume my role, either you call it as a facilitator or light house to provide direction and help to you and my fellow traders understand trading and them (YOU). You must also learn to only thank God and yourself at the end of every trade. Thanking me makes no difference.

 

<<Also - all constraints aside - social obligations, sleep etc. aside - what hours would you prefer to trade>>

 

My most preferred trading hours: Beginning and End of Asian, European and American hours. I avoid news hours. In between I work with Indian Stocks, play free cell, listen to my fav. KennyG and sleep for an hour.

 

<<As I said before, I use the CCI 14/50 ZL crossover a lot>>

I stopped using CCI because it does not suit my temperament. May be due to my age factor. lol

I like Stoch with higher numbers.

 

<<I am retired and could trade 12 hours if I wished but ....... not with focus - not effectively - what are your thoughts on this ?>>

Once you and your system have established a kind of synergy, and you have accepted it's you not just the trading system that makes your trades win, that may take some time, you would not be required to sit for whole 12 hours. On the other hand, over stressing yourself will have dire effect on your trading. I would not advice you to sit for 12 hours. Frankly not required.

 

If you are into trading because you are retired, then change that mind set. It will have great impact on you.

 

<<I am using the AO but am becoming persuaded that the A/D is more accurate - less noisy>>

Recall what I said about my purpose of using AO. I use it primarily to measure the strength and weakness of rise and fall. On the other hand, A/D performs a different role. If you take a close look at my today's 15M chart, you will get my point.

 

Have a nice day. Regards to all of you.

 

Healthy And Wealthy Trading.

Edited May 10, 2009 by psb67
correction

[psb67 10]

Hello friends,

 

Glad to see you all after a peaceful weekend.

 

Attaching here today's 15 min. & 30 min. charts for your understanding. Yesterday's correction was quite healthy a one.

 

Healthy And Wealthy Trading

[brownsfan019 17]

Thanks Brown. I will join you there. I am sure, I will improve a lot with you all around.

 

Healthy And Wealthy Trading

 

You going to join us over here psb?

[psb67 10]

You going to join us over here psb?

 

Hi Brown,

 

So kind of you. How are you?

 

I am yet to figure out how I can contribute to your thread. I went thru' the whole thread, and saw lot of our friends sharing their trade details.

 

I will see you there.

 

Healthy And Wealthy Trading.

[psb67 10]

Wish to share my thoughts.

 

I have never before tracked EUR/GBP until recently. I found a thread dedicated for the same in TL as well.

 

I began to follow this pair when one of the US based brokers called me to discuss about making autotrader out of my trading system exclusively for GBP/JPY and he mentioned they already have an autotrader for EUR/GBP. Frankly, I am not a fan of any autotrader or EA, nor have I worked with either.

 

Now, my little experience and opinion with/of this pair is, anyone wishes to improve one's day trading or scalping, one must work with this pair for at least few months before working with any pair. This pair offers a lot to learn. I am working on fine tuning my SOLIMO to suit EUR/GBP in my spare time to include it in my free calls service.

 

I may be craziest man on the earth to ever conceive such an idea and post here but I don't mind being crazy if it has the potential to make the difference.

 

Nice day.

 

Healthy And Wealthy Trading

 

Sureba67