All you need to trade is a horizontal line - TheRumpledOne

This is a discussion on All you need to trade is a horizontal line - TheRumpledOne within the First Steps forums, part of the Reception category; exhaustion measure - interesting. Are you finding that you have found an effective filter (to remove more losers than winners ...

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Old Feb 7, 2008, 12:40pm   #51
Joined Dec 2002
exhaustion measure - interesting. Are you finding that you have found an effective filter (to remove more losers than winners removed) then?

Cheers.
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Old Feb 7, 2008, 1:18pm   #52
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It is too early to know yet, I need to do a lot more of these types of trade before I will know for definite but the results so far have been good. I will update things once I know.


Paul
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Old Feb 7, 2008, 1:34pm   #53
Joined Jan 2007
Thumbs up Its all wrong but its all right

Quote:
Originally Posted by TheRumpledOne View Post
You it is funny that so many people try to find a way that the Buy Zone won't work. They will spend hours, days, weeks, etc.. trying to prove it doesn't work.

If they would only realize that if they looked for how it could work for them, then they would be on the winning path.

I hear from people on almost a daily basis who are thanking me for showing them the Buy Zone because, for once in their trading careers, they are making money.
Quote:
Originally Posted by Trader333 View Post
It is to do with speed of execution which is critical to success of this approach. It takes me less than 0.5 seconds to decide to take a trade, hit the hotkey to enter and get filled. The same is true to exit the trade and when you are taking small profits then every point or pip counts. The commission I pay is less than 1 point in value and so far my trades have lasted a maximum of about 61 seconds. I will see how it progresses over a longer time frame but so far it looks good just like jayjay121 has been saying. I am almost certain that using SB or other non ECN will result in greater slippage, slower fills and as such less profits which for something like this is very costly over a large number of trades.


Paul
Quote:
Originally Posted by Trader333 View Post
The reason that BZ works at all is purely due to momentum and the small profit targets. Essentially, if you get a momentum move then it is presumed that this momentum will carry on long enough to reach profit target. This is why I am using an exhaustion measure so that I don't enter when a very short term move is fizzling out and by that I am referring to a 1 minute time frame.


Paul
Hi Paul

good posts IMO

Good thread and posts, I was going to go on one at length but..................

IMO it works. I have my buy and sell Zones my targets are as per mentioned and...

I check at the end of each month to see if in hindsight it works out as per proper traders method if not I just check my account and its got larger, so I just give myself a telling off for not trading proper like other people and carry on

1.5 yrs and counting in profit and it is as Split says worth it

why did I go this way

no one on this planet can tell you where the next tick will be NO ONE NO METHOD NO LAW OF PROBABILITY NOTHING, NOT EVEN BACKTESTING NOTHING

There is the right here the right now, so take your best shot based on whats in your own head and manage the downside. Your own head = it can be as simple as a straight line.

Sorry LM, your method is fine, good work and if its working for you great I was worried it was not being put across well enough for newbies to understand, I was not attacking you just the way it was explained on your thread, Stops etc anyway........

Good luck all, gone before I go on, and no I will not elaborate further

Your own head
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Old Feb 7, 2008, 2:41pm   #54
 
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Quote:
Originally Posted by Trader333 View Post
It is to do with speed of execution which is critical to success of this approach. It takes me less than 0.5 seconds to decide to take a trade, hit the hotkey to enter and get filled. The same is true to exit the trade and when you are taking small profits then every point or pip counts. The commission I pay is less than 1 point in value and so far my trades have lasted a maximum of about 61 seconds. I will see how it progresses over a longer time frame but so far it looks good just like jayjay121 has been saying. I am almost certain that using SB or other non ECN will result in greater slippage, slower fills and as such less profits which for something like this is very costly over a large number of trades.


Paul
Hi Paul,
I've been paper trading BZ on eur/usd (5min) using oanda over the last few days and agree with you regarding speed of execution. When I trade at work through a proxy server, I get lots of delay in execution and hence quite a bit of slippage which makes the system almost unworkable.
At home on direct broadband connection it's much easier to hit the zone with instant execution.

For me, I am now keeping to one trade per hour max otherwise I tend to over-trade.

It's too early to tell if it works for me; This week so far, I'm down (-20pips net) but actually up on the account by £628.05 since I've been tinkering with position size. Over the last 2 days I'm up +19 pips.

Bit of a mixed bag at the moment I guess.

Best Regards,
Neil
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Old Feb 7, 2008, 4:15pm   #55
 
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Just a quick note for anyone having ago with the BZ;

If the price breaks out in your favour with decent momentum, you may be tempted to let it ride for a few more pips. In this case, *quickly move your stop up tight *, don't allow a loss the chance to register.

Basic stuff, I know but it might help someone out there.

Cheers,
Neil
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Old Feb 7, 2008, 7:09pm   #56
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Quote:
Originally Posted by bansir View Post
Just a quick note for anyone having ago with the BZ;

If the price breaks out in your favour with decent momentum, you may be tempted to let it ride for a few more pips. In this case, *quickly move your stop up tight *, don't allow a loss the chance to register.

Basic stuff, I know but it might help someone out there.

Cheers,
Neil


its basic stuff but well worth mentioning as i do it myself and it works and feels good



jason
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Old Feb 7, 2008, 7:12pm   #57
Joined Feb 2004
try out the er2 guys its great..................go over to kreslik and look up a trader named edmonia...........he trades buyzone on er2 everyday and been at it alot longer than me and he loves buyzone, he says he averages $100 a day on 2 contracts over the long haul.

so on average he beleives $50 per contract per day is the average



like i said he is very experienced on buyzone and traded it a lot longer then us and like he told me once you are confident just up contract size but he does say keep to the $50 per day per contract rule and you'll be fine................does not sound a lot i know but when your ready to up size you will be laughing

by the way the figures he told are based on both winning and losing trades combined, so net overall average for him


jason

Last edited by jayjay121; Feb 7, 2008 at 7:18pm.
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Old Feb 8, 2008, 9:30am   #58
Joined Dec 2002
Post All You Need To Trade Are Straight Lines.

Quote:
ALL YOU NEED TO TRADE IS A HORIZONTAL LINE
I at least partially agree with this statement.

A horizontal line can be used to mark S/R levels, LH's, LL's, HH's, HL's, (& thus general trend direction) and breakouts above/below them.

However, i prefer
Quote:
ALL YOU NEED TO TRADE ARE STRAIGHT LINES.
A straight line can be used to mark the levels of all the things I've mentioned above, plus more specific (shorter term) trend direction, breakouts from trend, pullbacks and breakouts from pull-backs.

Therefore, with no more than a few straight lines in active use at any one time, i can make sense of a chart, & make trade decisions accordingly.
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Old Feb 8, 2008, 10:06am   #59
 
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TheRumpledOne started this thread It's really funny to see people with little or no experience trading the Buy Zone talking like they are experts.

That is precisely why newbies make money using the Buy Zone and "experienced" traders struggle.

All major moves start in the Buy Zone (especially if you use the Buy Zone every hour) and must exit the Buy Zone... all you have to do is enter the trade.

If you can't see this, then you'll never understand.
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Old Feb 8, 2008, 10:09am   #60
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Quote:
All major moves start in the Buy Zone and must exit it... all you have to do is enter the trade.
What is meant by "Major Moves" ?


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