"The 8and8 Method" free e-book

[michael dunbar]

If I may offer my e-book for consideration....

It's completely free, based on the Daily Fozzy method - a robust simple system I've personally been trading since November. The 17-page book is a guide to using this system and advice on stops/limits, risk management and selecting the best trades and is fully illustrated with charts throughout.

I hope some find it useful. Any questions or comments please post here.

Michael

 

[DE.BRABANTER]

Atr

Sorry Michael but i don't understand very well your atr 70% envellope as a exit point also when alook to the eur/usd chart it seems to me that your system needs a good trend,so maybe you can put on a ADR.In anny case it is avery nice system. THANKSundefined

If I may offer my e-book for consideration....

It's completely free, based on the Daily Fozzy method - a robust simple system I've personally been trading since November. The 17-page book is a guide to using this system and advice on stops/limits, risk management and selecting the best trades and is fully illustrated with charts throughout.

I hope some find it useful. Any questions or comments please post here.

Michael

 

[michael dunbar]

Sorry Michael but i don't understand very well your atr 70% envellope as a exit point also when alook to the eur/usd chart it seems to me that your system needs a good trend,so maybe you can put on a ADR.In anny case it is avery nice system. THANKSundefined

Thanks for your comments.

The 70% ATR channel is used to calculate your trailing stop if you're swing trading.
Yes, of course, a good trend is where you pick up the pips if you are medium-term trading but there are other, short term exit methods mentioned in the book.
As for Eur/Usd, I haven't taken any short signals yet because of the strong up trend. If I get a long signal I'll take it.

 

[michael dunbar]

Here's a trade I'm in the the moment. Aud/Usd, entry at 0.8244 and looking for it to go up to the double top at 0.8390 again. I'm also short usd/jpy from the 8th. Both are not moving much but in the black at least.

Market's been choppy lately so bit of a tough time. Looking for a buy cross to get back in on eur/usd and gbp/usd. Wait and see for now.

Just my own plans.

 

[Madog]

Hi Michael
Thanks for your thread, how do you get the 70% ATR channel onto the Metatrader Graph? I can't seem to find the resource page you quote.

Thanks

Madog

 

[michael dunbar]

Madog,

Click on my user name to visit the resource page. Other stuff will be added this summer.

 

[Madog]

Thanks

Madog

 

[michael dunbar]

Here is an indicator for those who use Metatrader4 charts. Load it into your indicators folder and attach to each chart. When there's a long signal, the green line will point up, down for a short. Easy on the eyes when backtesting this method.

I can't attach .mq4 files here so I made it available on my resource page (click user name)

Anyway, enjoy the indicator and happy trading - post your comments/experiences here.

Michael

 

[vladv]

It's a easy to use forex setup.I'll try it for real account results.

 

[bluetipex]

A little smoother perhaps...

Michael

Good system.

Instead of the RSI (8) and 8 ema, you could have a play with MACD 3,11,17, which is what I use now and will never change! It is awesome. MACD is slower than stochastic but safer. Stochastic is "heads up", MACD is confirmation.

MACD is much smoother than the RSI/ema combination but the signals are identical!!!!

Put Stochastic 7,4,10 on, you'll find it gives the signal perhaps 1 or 2 bars ahead of MACD. So, if, like me, you're a conservative trader, you PAY ATTENTION on stochastic signal, but enter on MACD signal (bar close).

Even MORE powerful............

When MACD line crosses zero line this will often produce a very powerful move, especially if the MACD line crosses zero line at a good angle with RED signal line on the same side of the zero line. When RED signal line ABOVE zero line, stay in the trade LONG. When RED signal line BELOW zero line, stay short. Simple, but very, very effective ONLY in TRENDING markets.

The above system, like most, is utterly useless in chop/sideways markets.

I don't trade forex, but I'm sure it would work. The above system gave a LONG signal on 3rd April 2007 in YM at 12581. The RED signal line is almost about to cross zero line NOW FOR A SHORT. YM price currently 13753. Profit of 1172 points so far...

 

[mathsfreak]

HI Bluetipex, would you be able to elaborate a bit more on your above post? I.e. how to set up and read the signals using those indicators you mentioned? (Im new to trading so Im not that familiar with a lot of techniques and indicators)
Thanks

 

[bluetipex]

HI Bluetipex, would you be able to elaborate a bit more on your above post? I.e. how to set up and read the signals using those indicators you mentioned? (Im new to trading so Im not that familiar with a lot of techniques and indicators)
Thanks

If you're new to trading then I strongly suggest that you ignore my post in its entirety.

Instead, you should spend 3-6 months reading some good trading books which will give you a basic grounding in the world of trading. If after this you think trading is something for you, then try to work out which style of trading would suit your personality best, which instruments and time frame.

Expect a time line of YEARS before you would consider yourself to be successful, and expect to lose money at least initially. Expect the biggest hurdle to climb to be your own emotions, which can be hard to overcome.

Good Luck.

 

[blubadge]

The 8and8 Method

Hi Michael
Are you still trading this setup
Thanks

 

[michael dunbar]

Hi Michael
Are you still trading this setup
Thanks

Certainly am. I trade this and also demoing a gbp/jpy breakout method that's encouraging.
By the way, I would echo bluetipex's remarks above about taking your time and putting the hours in before trading live. Thanks also for the interesting twist.

Take a look at the chart below to see how the 70% ATR channel kept us in a recent GBP/JPY upmove. Long signal got us in at the green circle on the chart. That's the way to stay in a strong move. Doesn't happen a lot but feels good when it does - (actually DOES happen quite a lot on this pair).

For tomorrow, looking at the GBP/USD daily chart to get in short if it can push a little lower and give us a cross. Target either the 50% retrace line of the recent upmove at 1.9820 or the 28EMA a little higher. A 70%ATR stop here would put us above recent highs.

Just how I'm seeing it, make your own trade decisions.

Michael

 

[options]

Mr Dunbar.

Thank you for sharing this.

A very simple and easy method.

I would make it even easier by leaving the atr's off.

 

[blubadge]

Hi Michael
Thanks

GBP/USD never quite formed the cross and up it went
I see what you mean do not enter untill cross is closed
Will demo it for a few months
Thanks again

 

[blubadge]

8and8 method

Hi Options
"I would make it even easier by leaving the atr's off"
Do you set targets and just let it go
Thanks