Tuesday, August 28, 2007

EUR/JPY in early trade

A typical setup for EUR/JPY This pair has been particularly good of late.

I am now posting signals real time via yahoo messenger, send me a request at: mezarashii and I will add you to the list.

Friday, August 24, 2007

Early trade on ES

This is the ideal trade on ES that happens everyday. There are 3 choices for exit. Sell at the touch of the upper keltner, sell at the 4/8ths or try your luck with the reverse stoch crossover. I'm holding now for the final option to see how many points I can squeeze today.


There is only one currency I will trade on the 1 minute timeframe because of its incredible range and speed during normal conditions. The spread is less than 6 pips with a good broker, so a 50 pip move nets you almost 40 pips. A very good margin of error for entry and exit. Here is a quick trade I just took.

Yesterday's GBPUSD trade

This is a good example of a trade that didn't make a huge profit but it demonstrates the flexibility of the system. There were many opportunities to take profits throughout the day. Keltner touching, stochs crossing etc. There are even opportunities to hold for longer periods for more pips. Now currently +50 pips from the original signal.

EURJPY this morning

Very clear setup. This happens at least once a day in the 5 markets I am now following on Forex.

Modified Setup

I am going to start posting a modified setup which I think improves the timing of entry and allows more flexbility on the exit. I only trade 5 minute charts for FOREX markets and when the VIX is above 20, I trade 1 minute charts on index futures. 30 year bonds are also 5 minute charts.

Soon I will offer real-time tutoring of this method via chat. Keep checking back for updates!

Friday, August 10, 2007

System template altered

I have been busy with my new system template, partially inspired by this guy who has been trading a mean reversion for more than 5 years! He's also written a very interesting book about his trading discoveries.

The first big difference is that the system is now more dynamic. More trades and more markets can be traded.

The most fundamental difference however is that I am no longer trading against the trend thanks to a very clever MT4 indicator which tells me the daily absolute strength on any time frame. So theoretically, the only day I will be trading against the trend is on a day when the trend changes. Otherwise it is fairly clear cut. If the indicator is red, I won't take long trades and if it is Blue I won't be shorting. There are some other colors used to give signals for flat markets or when the trend is changing, but these are ideal indications as mean reversion thrives when markets are NOT trending.

I have also subsititued my jsrx bollinger for a highly modified stochastic, I find this is quicker to find reversals and exit at a more robust point of market balance than previous incarnates.

Finally, I am not using ma bands anymore. Now I am using Keltner channels which are much more dynamic and responsive to short term moves.

All of these indicators are easily downloadable here