Dave from Sydney's Journal [Awarded Title: the Box-Trader]

[wiseambitions]

Hi Dave

Leading on from your observations.... As you know I have spotted certain benefits in adopting the Immyism of 34 MA. And specifically I observe something a bit magic about using the simple moving average and the exponential moving average on the same chart. Keeping still with the Aims box which shows support and resistance in the time frame.

Whereas we are taught in the AIMS system to wait for a break of the box (fractal break), I think my system allows us to get in a few pips earlier, and I will attach a diagram to give examples. You'll see the entry is often before a cross of AO/Ewaves. Just to try and reduce clutter I haven't shown the gator, otherwise we would have 4 more lines on the diagram. However I wouldn't say dispense with the alligator, it is a useful tool.

So I'm looking for crossovers of EMA above SMA as signals to look to go long, and crossovers downwards as signals to go short. It would not be mandatory that price also crosses up through the SMA as a signal to go long but I think like Immy that it would be a good confirmation when that is also happening. And maybe therefore a retraction of price across the SMA line could be a stop loss level.

I haven't finished putting the rules together by the which I would set out my strategy, but I've found it possible to make 40 and more pips a day on m1 using this kind of price action, and I would stress I'm not out to depart from what I already knows has worked well for me!

[Dave]

Hi everyone,

I'm in the process of re-writing my trading plan to incorporate 'The Seed' concept, but it's due for an update anyway.

I just wanted to get some feedback/opinions on exit methods. I am still entirely unconvinced as to the best methods of exiting trades, particularly when in profit. I am referring here to trades using the M1/M5 entry system, and these are the options I'm considering and I'd love some opinions:
- 1. Exit on opposite dot regardless of where that dot occurs;
- 2. Trail M1 AIMS levels at 100% of position;
- 3. 50% off at 1:1 and then trail M5 AIMS level.

Any other suggestions? I really want a concrete and objective exit mechanism that I can stick to!

Thanks, Dave

Edit: I probably should have mentioned that I am favouring option 3., and although it may result in some winners ending as BE trades, it gives every entry a chance to run for the length of a wave, and as has been discussed in The Seed, a chance to convert a trade to a HTF. The only thing I dislike about this is when trades show +20ish and come back to the SL.... I really feel like it's a waste of the profit that was there!

[immy]

Hi everyone,

I'm in the process of re-writing my trading plan to incorporate 'The Seed' concept, but it's due for an update anyway.

I just wanted to get some feedback/opinions on exit methods. I am still entirely unconvinced as to the best methods of exiting trades, particularly when in profit. I am referring here to trades using the M1/M5 entry system, and these are the options I'm considering and I'd love some opinions:
- 1. Exit on opposite dot regardless of where that dot occurs;
- 2. Trail M1 AIMS levels at 100% of position;
- 3. 50% off at 1:1 and then trail M5 AIMS level.

Any other suggestions? I really want a concrete and objective exit mechanism that I can stick to!

Thanks, Dave

Edit: I probably should have mentioned that I am favouring option 3., and although it may result in some winners ending as BE trades, it gives every entry a chance to run for the length of a wave, and as has been discussed in The Seed, a chance to convert a trade to a HTF. The only thing I dislike about this is when trades show +20ish and come back to the SL.... I really feel like it's a waste of the profit that was there!

Commenting of the edit note:

All three options are good. in the end it depends on how you feel. After today's GU trade I'm convinced you are up for option 3. But don't over complicate it. Make a decision and stick to it. Any trailing mechanism will work. Dot to dot, or trailing m1 boxes, or option 3, if used consistently it will work.

cheers

[immy]

Your Trade on GU is a home run right? Research suggests that big RR trades in the long run are better than strategies that rely on high win percentage with nominal RR such as less than 1:2.

[Dave]

Absolutely. A great trade.
What I would like to do though is, within the rules of closing 50% and running with a FT, develop some clear rules for how the second half is managed. It's no good for that second half to show +50 and then result in a BE net return. Whether its trailing m5 levels, trailing H1 high/low, trailing two M1 levels behind, whatever it is, I still think there needs to be some rules other than just "hang on!"
Any ideas?
Dave

[immy]

Absolutely. A great trade.
What I would like to do though is, within the rules of closing 50% and running with a FT, develop some clear rules for how the second half is managed. It's no good for that second half to show +50 and then result in a BE net return. Whether its trailing m5 levels, trailing H1 high/low, trailing two M1 levels behind, whatever it is, I still think there needs to be some rules other than just "hang on!"
Any ideas?
Dave

If taken on m1, you have to option to trail M1 AIMS Levels. or M5 AIMS Levels or Use M5 Dot!

Or use my Fib Retracement technique

But best to managed M5 AIMS levels. Easier, clear. sometimes, watch out of PC exit. But if it gets you fine. get back in on another M1 setup and let it run on m5.

[immy]

I hope you milked it properly Dave!

[Dave]

I have to be honest, it was far from managed to it's fullest potential, but it was an important trade for me for a few reasons:

- 1. I started to rewrite my trading plan yesterday and this was 100% in line with my planned entry system. I was patient in waiting for MY CONDITIONS to be met. I know that there will be times when I do not trade and times when I miss counter trend moves because of my rules. But I also know that there will be 10% trades. This reaffirmed that.
- 2. It reassured me that the close 50% FT trade management approach is effective and suitable for M1/M5 trading. For a long time I have been an advocate of adding to positions but it was never stress free and as a result of adding to positions I lost my objectivity and was always fast to close. I will move forward with this trade management approach.
- 3. By evaluating the trade I have settled on my management approach for the second 50%. I will trail M5 AIMS levels. This won't always work but it immediately converts M1 entries into a HTF (and my entry system is based on M5 trend and fractals so it makes sense) and when it does work it will at times reap 100+ pips. While managing the remaining 50% I will be aware of M15/H1 and if the opportunity presents to convert to that then great. (I'm sure the next evolution of the AIMScansomeonecodeclose50%.....EA will have an auto trail SL feature which will be great for me given my time zone, hint hint ).

And that's about it for now.
Dave

P.s. anyone have the world's simplest inside bar indicator? I just want something that when trading outside of my M1/M5 hours I can see whether it's a seed or not in 0.01 of a second.

Edit: Der, just found the IB indi, it's in the seed thread.

[immy]

Great Post Dave!

[Dave]

Time to fire up the old journal again, let's see what this week brings.