Trading the Foreign Exchange Market?

[Jeff7181]

Originally posted by: cchen

Originally posted by: Jeff7181

Originally posted by: cchen

Originally posted by: Jeff7181

Originally posted by: Shockwave Well guess what. OANDA will give you an account and 100,00 bucks. I'd HIGHLY suggest you go "try it before you buy it". The account is a game. OANDA offers a game thats runs off their real systems but is play money. You think it works? Go try it out. If it does, fantastic, share the method with us and we'll all race our Ferrari's next year. And if it doesnt, your not out anything but some time. I'm playing the game using a EMA 6, 24 graph and seeing what happens. So far I've bounced to a little below the starting balance, came back to a little above, and now hovering right at the starting balance. Still getting the system worked out......

His system already worked tonight... check it out... the GBP/USD opened at midnight at 1.8065... it's currently at 1.7981... that went down below his 40 pip entry point, then down below his 60 pip limit where his position was closed for a gain of 20% with the 100:1 leverage he gets. If he invested at least $1000, there's more than a day's wages for me... I don't know about you, but I've never made $200+ a day... hell, I've never made $100 a day.

What I'm really trying to say is that you think its a lot easier than it really is. Ok, go and try it. But don't come back crying with all your money lost.

At the end of the week, if I haven't made a profit on paper, you can laugh at me... if I have made a profit on paper, I'll laugh at you... then be kind enough to share all the details with you about how to do it... sound fair? 😀

Er... sure. I don't really care to know your method.... but go ahead. One week is not enough time for a simulation. I would reccomend going for at least a few months before you actually start playing with any real money, because, frankly, a return in one week doesn't mean anything. Show me your return after a year.

If you contact me a year from now I'll be happy to share my results with you... but I won't remember to contact you, so if you want to know, you'll have to get in touch with me 🙂

 

[Jeff7181]

I just opened two demo accounts... one I'm going to use the same method, but not limit myself to using the midnight price as my baseline to see if the timing has anything to do with it. On the 2nd one, I'm going to follow his suggestions to the letter, entering the orders at midnight GMT with everything set up according to the opening price at midnight.

So in my first one, I just entered the orders... (I whipped up a little excel spreadsheet to do the calculations for me, all I have to do is put the price in that it's currently trading at, and it figures out where to put the entry points, stops, limits... if you'd like it, just ask and I'll send it to you, or you can make one yourself, it's not hard at all if you know a little math and how to use Excel)


*EDIT* Here's a direct quote from the guy who told me about this method...

Just let 'er ride! You're strategy will self-pick the direction the
currency chooses to take and your 40 pip entry point is set to assure that the
currency truly has momentum in this direction before placing an order. You
now only hope that it has enough momentum to keep going the 20 pips (or 10 if
you wish) to your goal/limit price. A review of the price data from the last
month or so shows that you would have probably made your goal on each of the
last 30 days. (The GBP/USD routinely travels nearly 100 pips in one direction
or another and sometimes both!).

 

[Shockwave]

I'd take a copy.
Specop_007@yahoo.com

Also, his system appears to only work off the opening price. After that pip fluctuations dont seem to hold enough momentum to use his system. If you wanna try something, run a real time graph of your currecny and a overlay of Ema @ 6 and also Ema @ 24. When the 6 line corsses the 24 line, do your buy/sell. It seems to be fairly consistent that line crossings mark about 3 to 10 point pip trends.
Thats what I'm playing with is the Ema trends.

And for the record, no, I really have no feckin clue what I'm doing. But I'm tryin to learn 😀

 

[Jeff7181]

Originally posted by: Shockwave
I'd take a copy.
Specop_007@yahoo.com

Also, his system appears to only work off the opening price. After that pip fluctuations dont seem to hold enough momentum to use his system. If you wanna try something, run a real time graph of your currecny and a overlay of Ema @ 6 and also Ema @ 24. When the 6 line corsses the 24 line, do your buy/sell. It seems to be fairly consistent that line crossings mark about 3 to 10 point pip trends.
Thats what I'm playing with is the Ema trends.

And for the record, no, I really have no feckin clue what I'm doing. But I'm tryin to learn 😀

Sent.

You're using technicaly analysis. He doesn't like that. He says with each piece of information you ad to analyze a position, you double the amount of work required on your part. His system is designed to produce good results with little or no thinking on your part. He's a former military pilot... he says the disipline he learned is really beneficial here, because a lot of people get caught up in emotions and say "oh wow, it's still going past my 20% gain... I should get back in and milk it for a little more" and then it turns around and they end up losing everything that they've gained at best, or at worst, losing more than they gained so they're negative for the day.

*EDIT* As I was typing this... the GBP/USD just hit my short entry point... and appears to be headed down further... normally if I saw a 5 pip gain I'd close the position and be happy with the few bucks I made, but I'm going to let this go to the limit to test his method.

**EDIT** The 5 pip spread set by the broker is pretty much covered now... so it's actually gained 5 pips for me, but since the brokerage doesn't work for free, you pay a 5 pip spread for each position. The price fluctuates so much you can't really say it's covered now because it bounces around, but, it's hovering about 5 pips lower than I entered, which is good... I'm hoping it continues on it's way down. The main thing to remember is this guy waits a whole day for a position to close... this has only been about 40 minutes, so now is definately too soon to say "it's not going to make me any money, close the position."

***EDIT*** Oh by the way... my other friend who day (or night as the case may be) trades just sent me an e-mail saying he got into a short position on the GBP/USD roughly 20 minutes ago at 1.8006 and it's now down to 1.7952 for a 49 pip gain (after the spread)... so he just got 49% on his $2000 investment... so he's taking his $980 for today and going to bed.

 

[Jeff7181]

For some reason my limit didn't work... but that's ok because it ended up going down 31 pips, at which point I cashed it out and took $31 on my $200 investment 😀

*EDIT* LOL... I accidently clicked a couple times cause it took longer than expected for the order to go through, and ended up buying and then selling it again within milliseconds, so I took a 5 pip loss because of the spread... so now I'm just ahead 26 pips. Oh damn... only 26% in an hour 🙁 lol

**EDIT** Ooops... guess I can't show you without a screen shot...

 

[Jeff7181]

Here's a screen shot of my account summary 😀

 

[Shockwave]

You caught the pip rise. I hit the fall. My test acount lost 50 pips in about 30 seconds.
Nothing like a good bitch slapping for some humility 😀

 

[Jeff7181]

Originally posted by: Shockwave
You caught the pip rise. I hit the fall. My test acount lost 50 pips[/url] in about 30 seconds.
Nothing like a good bitch slapping for some humility 😀

Actually no, I caught the fall as well... but I went short on it 😀

 

[anonmouseuser]

Update?

 

[Jeff7181]

Originally posted by: anonmouseuser
Update?

My demo account for straddling is screwed up now because I forgot to switch accounts before I started day trading... but... in the past 24 hours, I'm up 60 pips (60 %) using this straddling method.

Before you go all screwy and call me a liar and crap like that... 60% is just 60% of each investment I made... not 60% of the account balance or the total investments I made. You NEVER invest the entire balance in your account. So... the demo account gives me a $5000 balance to start with... and I invest $100 at a time... so you could look at it as, I invested a total of $300, made $60... and that's a 20% return on my total investment... in 24 hours.

 

[Hector13]

Originally posted by: Jeff7181

Originally posted by: Shockwave

Well guess what. OANDA will give you an account and 100,00 bucks. I'd HIGHLY suggest you go "try it before you buy it".

The account is a game. OANDA offers a game thats runs off their real systems but is play money. You think it works? Go try it out. If it does, fantastic, share the method with us and we'll all race our Ferrari's next year. And if it doesnt, your not out anything but some time.

I'm playing the game using a EMA 6, 24 graph and seeing what happens. So far I've bounced to a little below the starting balance, came back to a little above, and now hovering right at the starting balance. Still getting the system worked out......

His system already worked tonight... check it out... the GBP/USD opened at midnight at 1.8065... it's currently at 1.7981... that went down below his 40 pip entry point, then down below his 60 pip limit where his position was closed for a gain of 20% with the 100:1 leverage he gets. If he invested at least $1000, there's more than a day's wages for me... I don't know about you, but I've never made $200+ a day... hell, I've never made $100 a day.

good luck to you... but in all honesty, you have to be kidding me if you think it is as easy as you think. Trust me, there are a lot of very, very bright people who do this professionally... if it were this simple, don't you think they would have caught on by now?

It looks like your friend's "strategey" is basically a simplified way to trade volatility. In which case, there are more profitable/easier ways to implement the strategy (ie, go long puts & calls), which (again) many, many people know about and could trade on if it workedd. If it was this easy, it would make a lot of our jobs obsolete.

 

[TubStain]

Interesting info in this thread. I trade stocks daily and am usually happy with my 1-3% gains per day on about $40,000 capital, but love hearing of new ways to trade various commodities.

keep this thread updated, as I'd like to know more as you progress.

 

[Jeff7181]

Originally posted by: TubStain
Interesting info in this thread. I trade stocks daily and am usually happy with my 1-3% gains per day on about $40,000 capital, but love hearing of new ways to trade various commodities.

keep this thread updated, as I'd like to know more as you progress.

Market was stagnant the last half of yesterday... not very friendly to someone like me who would prefer to be in a trade longer than a few minutes. I have a feeling we're going to see a couple days of consolidation since everything in this market has been moving fairly well, and now it seems like everything is starting to turn around or slow down. I don't like that type of market, I'd much rather see things moving in either direction.

 

[Shockwave]

Start of the new week for trading (Well, close to it)
Update? How'd your spread plays work out?