Beyond Boris

[trendie]

As an interested follower of Boris Schlossbergs youtubes, I thought I woudl throw this into the mix.

Preamble: Boris seems, generally to trade EURUSD, and has some method whereby he trades the EU when it nears the round-number. I think he goes for about 20 pips. That means, if price rises to x.1180, he will buy anticipating momentum to take it to the round number. Conversely, if price falls to x.xx20, he will short, and ride it down to round number.

With that as a basis, I looked at GU, and marked 30, 70 and round numbers on chart.
My tentative, NON-indicator idea is:

If price escapes the round number UPto 30, buy until it reaches AT LEAST 70, maybe even upto round number.
If prices escapes the round number DOWNto 70, sell until it reaches AT LEAST 30, maybe even DOWNto round number.

I am enthused by this. Actually, I am sure somebody has already posted something about trading round numbers. The thread had the term "mad", "crazy" in the title.

 

[shadowninja]

No info on stop size?

 

[trendie]

No info on stop size?

was just musing. just offered up an observation, for discussion.
stop would have to be 1:1, so maybe 40 pips. but the run could extend to 70 pips.

reason for thread was for a less intensive intra-day idea, ie, 1 or 2 trades a day per pair, rather than the manic scalping.

am looking towards some non-indicator based ideas.

 

[masnachu]

reminds me of an idea proposed in a book called "the quarters theory" (by some Russian geeza)

basically he takes the range between 2 whole numbers and divides them into ermm Quarters & 50%

Taking Cable as in your EG :
Major whole (round) numbers = 1.4,1.5,1.6 (1000 pip range, for higher higher TFs like Daily/weekly etc)

Minor whole (round) numbers = 1.41,1.42,1.43 ....... (100 pip , for smaller TFs <=1H )

His idea is, once the market captures a whole number level , it will set about attempting to acheive the next, by working through the 25%,50% &75% sub ranges between 2 whole numbers. If it fails to get to or hold one of those sub range levels, it will fall back to the prior level and attempt to hold there etc

Don't know how he trades his idea though, haven't had it long and haven't got that far, I only read a few pages now and again when I get a spare 5mins. I haven't done a lot with it , but a casual eyeball suggests that 50% maybe a more important level more of the time that 25 or 75 ??? like I said still a work in progress.

 

[Lord Flasheart]

watching

 

[shadowninja]

Ah, I see. I guess you're looking for pairs that display this behaviour more often than not. Might you even need to risk 20 pips for it as the theory suggests momentum. If there's no oomph then let it take out your 10 pip stop?

 

[Rossini]

Have you looked at oil? Seems to get 'sucked' to round numbers frequently.

 

[Black Swan]

If we accept the fact that it's not *us* who collectively move markets, we simply play with the crumbs of broken bread sticks brushed from the tables of the market makers' long lunches, then round *lazy* targets should come as no surprise. Fibs, S&R and Pivots prove this, particularly how often fibs behave according to how the institutional money *thinks* and behaves...

How often do we witness stops get taken out/or approach round or obvious targets? It's not your sly Spread Betting firm/broker stop hunting you, it's the collective market hunting every position in attempting to find the new S&R by way of true market price discovery..

 

[kimo'sabby]

As an interested follower of Boris Schlossbergs youtubes, I thought I woudl throw this into the mix.

Preamble: Boris seems, generally to trade EURUSD, and has some method whereby he trades the EU when it nears the round-number. I think he goes for about 20 pips. That means, if price rises to x.1180, he will buy anticipating momentum to take it to the round number. Conversely, if price falls to x.xx20, he will short, and ride it down to round number.

With that as a basis, I looked at GU, and marked 30, 70 and round numbers on chart.
My tentative, NON-indicator idea is:

If price escapes the round number UPto 30, buy until it reaches AT LEAST 70, maybe even upto round number.
If prices escapes the round number DOWNto 70, sell until it reaches AT LEAST 30, maybe even DOWNto round number.

I am enthused by this. Actually, I am sure somebody has already posted something about trading round numbers. The thread had the term "mad", "crazy" in the title.

I trade the same market in virtually the same way except i use 50s and 00s, works really well.

 

[kimo'sabby]

If we accept the fact that it's not *us* who collectively move markets, we simply play with the crumbs of broken bread sticks brushed from the tables of the market makers' long lunches, then round *lazy* targets should come as no surprise. Fibs, S&R and Pivots prove this, particularly how often fibs behave according to how the institutional money *thinks* and behaves...

How often do we witness stops get taken out/or approach round or obvious targets? It's not your sly BB firm/broker stop hunting you, it's the collective market hunting every position in attempting to find the new S&R by way of true market price discovery..

One reason why a market like the eurusd is so popular is because of the huge amounts of liquidity pumped into it everyday by the banks, there really is no finesse to thier game and it's quite transparent as to what's going on.


Take a look at the daily candles, look at the daily volatility ranges on say the hourlies, this market is screaming....Please trade me!!

 

[kimo'sabby]

As an interested follower of Boris Schlossbergs youtubes, I thought I woudl throw this into the mix.

Preamble: Boris seems, generally to trade EURUSD, and has some method whereby he trades the EU when it nears the round-number. I think he goes for about 20 pips. That means, if price rises to x.1180, he will buy anticipating momentum to take it to the round number. Conversely, if price falls to x.xx20, he will short, and ride it down to round number.

With that as a basis, I looked at GU, and marked 30, 70 and round numbers on chart.
My tentative, NON-indicator idea is:

If price escapes the round number UPto 30, buy until it reaches AT LEAST 70, maybe even upto round number.
If prices escapes the round number DOWNto 70, sell until it reaches AT LEAST 30, maybe even DOWNto round number.

I am enthused by this. Actually, I am sure somebody has already posted something about trading round numbers. The thread had the term "mad", "crazy" in the title.

If you really want to trade the eurdol in this fashion and use the round numbers, try the rbs marketindex cfd account. You can open an account with 500 quid or you can use the demo which works, looks and feels exactly the same as the live account. If you use the hourly candle as the main trading TF the prices are in increments of 50, all you need are the candles and that's it. You can automatically set your trade parameters and use the one click trading facility without being bothered with order tickets. It's a great little platform and you can size right down to 150th of a penny, you're not going to be a millionaire too soon but this allows for greater flexibility in your trading approach if you only have a small account. Try it.

 

[trendie]

hi KoS,
thanks for replying, especially as you seem to have traded this style.

It was really bedsit that got me thinking. There is a thread by Claudia123 that trades a London opening breakout. Bedsit trades an afternoon US session breakout as well.
Thought it would be interesting to have another pseudo-breakout style, for a 20-30 pip punt or so.
A whole accumulation of no-indicator, range-break trades, that could form the basis of some serious data. If there were about 3-4 trades per day, from various sources, and edge might become apparent.

 

[trendie]

dunno what this shows: no real patterns, except some long bars towards the 1.35 line, and away from the 1.35 round number line.

 

[kimo'sabby]

hi KoS,
thanks for replying, especially as you seem to have traded this style.

It was really bedsit that got me thinking. There is a thread by Claudia123 that trades a London opening breakout. Bedsit trades an afternoon US session breakout as well.
Thought it would be interesting to have another pseudo-breakout style, for a 20-30 pip punt or so.
A whole accumulation of no-indicator, range-break trades, that could form the basis of some serious data. If there were about 3-4 trades per day, from various sources, and edge might become apparent.

Hi Trendie,

When i say i use the round numbers (50s 00s) on the eurusd that's not my entire view. I also look at the candle action, are the candles pinning etc, i look at daily volatility ranges and intradaily ranges. My method revolves around whole numbers on the hourlies, but i have no idea why it works, it just does for me.

Trade parameter wise, i use 1:2 risk:reward, 5 pip stop and 10 pip target, this may seem tight but it fits in with the volatility that suits me, i get stopped out a fair bit. I'm normally in the market for roughly an hour and i can make up to 30 trades.

This is just my way of going about the round numbers, but i would probably say that they can be traded in a variety of ways, whatever suits you really. Hope this helps.

 

[trendie]

Heres another breakout method (minimal indicators) to add to the mix.
Its the world-famous Peter Crown DIBS (Inside Bars)

http://www.forexfactory.com/showthread.php?p=2067677#post2067677

The link is to a summary thread. It is the essence of the idea without the padding.

 

[trendie]

http://www.forexfactory.com/showthread.php?t=231650

another breakout style system.
it is based on the observation that the trend at the NY close tends to continue into the Tokyo open.

the data shown seems its worth exploring further. I havent done any work on it, but another member has posited a similar method, and trades this concept with real money.

 

[biozes]

By the way, here is an interview of Boris Schlossberg when he came recently to London: Full interview with boris schlossberg

It explains his views about the UK Elections that will take place tomorrow.

Here is a cut version, perhaps more fit for traders interested on GBP moves:
Currency expert Boris Schlossberg says hung parliament a "formula for disaster"

Anyway, lets us see tomorrow the result, hopefuly we won't have house sharing in the parliament

Kind regards