123 Trades

[alfiemal]

Hi everyone, i have been looking at simple 123 reversal trades. With the target the distance from point 2 to 3 added on to point 2 where you enter long or short, so giving a risk:reward of 1:1...
I know the 123 trades are mentioned on other threads however if you trade them simply with the 1:1 risk/reward on forex 'hourly charts' across the major pairs then it looks like a profitable system to me. There will be plenty of times when you would have been better letting the trades run, but other times when you best just taking the profits at 1:1...
Its not a complicated fancy system but as far as i can see with backtesting over several pairs you will hit your target more often than you will get your stop hit, giving an edge??

 

[Enzzo]

Hi everyone, i have been looking at simple 123 reversal trades. With the target the distance from point 2 to 3 added on to point 2 where you enter long or short, so giving a risk:reward of 1:1...
I know the 123 trades are mentioned on other threads however if you trade them simply with the 1:1 risk/reward on forex 'hourly charts' across the major pairs then it looks like a profitable system to me. There will be plenty of times when you would have been better letting the trades run, but other times when you best just taking the profits at 1:1...
Its not a complicated fancy system but as far as i can see with backtesting over several pairs you will hit your target more often than you will get your stop hit, giving an edge??

Hello Alfiemal,
In my own experience, direct breakout trading of swing points or patterns, has not a big edge, to be honest... especially if you go for 1:1, as I have experience myself, the win ratio is not above 50% that would be the minimum to get a break even....
That's my experience and understanding of the market behavior, maybe others will have another point of view

 

[alfiemal]

Hi Enzo, i instinctively thought the same there is no way it could be that easy just following the 123 pattern or similar, however i have looked back a long way and it just seems it would have made consistent profit.
For example have a look at the major FX pairs for this last week only, spot all the 123 patterns on the hourly charts with 1% profit for the winners and -1% for the losers and you will see you would have been well up on the week, ive never seen a losing week yet!

 

[NVP]

Hi everyone, i have been looking at simple 123 reversal trades. With the target the distance from point 2 to 3 added on to point 2 where you enter long or short, so giving a risk:reward of 1:1...
I know the 123 trades are mentioned on other threads however if you trade them simply with the 1:1 risk/reward on forex 'hourly charts' across the major pairs then it looks like a profitable system to me. There will be plenty of times when you would have been better letting the trades run, but other times when you best just taking the profits at 1:1...
Its not a complicated fancy system but as far as i can see with backtesting over several pairs you will hit your target more often than you will get your stop hit, giving an edge??

hey A

can you post some examples ?

thanks
N

 

[Enzzo]

Hi Enzo, i instinctively thought the same there is no way it could be that easy just following the 123 pattern or similar, however i have looked back a long way and it just seems it would have made consistent profit.
For example have a look at the major FX pairs for this last week only, spot all the 123 patterns on the hourly charts with 1% profit for the winners and -1% for the losers and you will see you would have been well up on the week, ive never seen a losing week yet!

Well, as I said before, that was only my own experience on the matter, as I've done that for some time when I was starting trading, and saw the results for myself...
anyways If it works well for you.... go for it without any doubt!!!

About trading in general, i totally agree that it doesn't have to be any complicated, rocket science method or system to make it in this game.... also having into account that the system itself is only one piece of the whole puzzle

 

[alfiemal]

hey A

can you post some examples ?

thanks
N

Hi its just plain 123 reversal trades. R:R 1:1. Have a look at all the major pairs 1hr charts for the last week and you should see them easily. Its no great system but it just looks to me like it wins way more than 50% of the time, i was just seeing what everyone else thought...
Some say the system you trade is only 20% of the overall way to be profitable so maybe a simple 123 is good enough??

 

[alfiemal]

Well, as I said before, that was only my own experience on the matter, as I've done that for some time when I was starting trading, and saw the results for myself...
anyways If it works well for you.... go for it without any doubt!!!

About trading in general, i totally agree that it doesn't have to be any complicated, rocket science method or system to make it in this game.... also having into account that the system itself is only one piece of the whole puzzle

Hi Enzo, maybe its one of those things that looks good until you actually start to trade it then it all changes lol!
Cheers!

 

[Enzzo]

Hi Enzo, maybe its one of those things that looks good until you actually start to trade it then it all changes lol!
Cheers!

Hi Alfiemal...
if you are gonna give it a try.... would be nice to see how it works for you, and what are your thoughts on it while you are trading it...
so, come back with some insights if you feel like it, or some questions that may pop up in the way...