THE BUY ZONE - TheRumpledOne

[JTrader]

Over the last 24 hours, we have had:

* a high H1 range of 51
* a low H1 range of 5
* a average H1 range of 23

This gives you an idea of just how many pips you can expect to take.

P.S. I hope I did the image right this time.

But if price goes in one direction from the open of the hourly range, say +51 pips, you only had the opportunity to make one long trade, with maybe a 6 pip profit. Therefore the 51 pip range alone, doesn't give you any firm idea of how many pips/trades could have been made in that 1H period, unless you hold on for more than +6 pips PT.

 

[JTrader]

Hi TRO

people trading the BUYZONE are scalping using small Stop-losses. So I would think that the plan is to trade relatively big positions, targetting small profits in terms of number of pips.

trading the BUYZONE as you do, on an ECN, where the supply of lots is limited, as your screenshots show, aren't you at all concerned that by having many people trading this same strategy as you, at the same time as you, will have an adverse effect upon your ability to get filed at the right price/YOUR overall trading results?

If not, why not?


Thanks again.

 

[Trader333]

You can use limit orders to do this which cuts out worrying about being filled at a certain price.


Paul

 

[JTrader]

Cable presented some nice opportunites so far today.

 

[jayjay121]

Hi TRO

people trading the BUYZONE are scalping using small Stop-losses. So I would think that the plan is to trade relatively big positions, targetting small profits in terms of number of pips.

trading the BUYZONE as you do, on an ECN, where the supply of lots is limited, as your screenshots show, aren't you at all concerned that by having many people trading this same strategy as you, at the same time as you, will have an adverse effect upon your ability to get filed at the right price/YOUR overall trading results?

If not, why not?



I too was thinking exactly the same thing as so many people are now using the buyzone and tro advertises it freely on kreslik and has his manual to show you how it can be done........... .people on other forums who disliked tro used to say that he is actually a rep for efx group and get comms for the sign ups he makes, some people actually believed he was a broker and not a trader...........me, though, i don't really care because im using it and it works and suits my trading style, infact this has been by far the most prfitable and consistent system i have ever used in trading and ive tested a few..........i traded it live last week for the first time and made $1,310.......yesterday was the first losing day i've had.

By the way, the original method for trading the buyzone was actually eod, so you don't have to scalp like you say.


jason

 

[JTrader]

I too was thinking exactly the same thing as so many people are now using the buyzone and tro advertises it freely on kreslik and has his manual to show you how it can be done........... .people on other forums who disliked tro used to say that he is actually a rep for efx group and get comms for the sign ups he makes, some people actually believed he was a broker and not a trader...........me, though, i don't really care because im using it and it works and suits my trading style, infact this has been by far the most prfitable and consistent system i have ever used in trading and ive tested a few..........i traded it live last week for the first time and made $1,310.......yesterday was the first losing day i've had.

By the way, the original method for trading the buyzone was actually eod, so you don't have to scalp like you say.


jason

TRO -

Look at the times on those 2 pics.

Do you get to see that at a fixed spread broker?

OF COURSE NOT! THEY WANT TO KEEP YOU IGNORANT!!

I pay $.50 to buy and $.50 to sell 1 USD/JPY minilot. So $1.00 roundtrip. If I gross 2 pips, I gross $1.96 at this price level. So $1.96 - $1.00 = $.96. At a fixed spread broker, you are still in the hole at 2 pips. Think about it! Why give your money away?

Tell EFX that The Rumpled One sent you.

Glad to hear it is working for you JJ.

Well it does sound like TRO has some sort of deal in place with EFX.

 

[TheBramble]

It's largely irrelevant whether TRO has a deal or not with EFX. He’s recommended them. It’s up to the individual trader to compare cost, execution speed, platform etc. as with all things.

As far as I can see, the guy has been more than generous with his time and efforts and all for free. If he’s been smart enough to cut a deal with brokers for introduction commissions, good for him. What do you care as long as you get a better deal out of it too?

 

[Trader333]

Well it does sound like TRO has some sort of deal in place with EFX.

Even if he has it is not as if you are being directed to a bucket shop so not a concern in my view.


Paul

 

[JTrader]

It's largely irrelevant whether TRO has a deal or not with EFX. He’s recommended them. It’s up to the individual trader to compare cost, execution speed, platform etc. as with all things.

As far as I can see, the guy has been more than generous with his time and efforts and all for free. If he’s been smart enough to cut a deal with brokers for introduction commissions, good for him. What do you care as long as you get a better deal out of it too?

I don't care, good for him if he has an agreement. I like TRO, as he has been helpful to me and many others . I was objectively stating what seems to be a possibility, not looking to unearth a scandal.

 

[JTrader]

Even if he has it is not as if you are being directed to a bucket shop so not a concern in my view.


Paul

Exactly!

EFX look a good option for scalping.

 

[jayjay121]

just out of interest, and as some of you guys are far more experienced then me, could you tell me if this style of trading is momentum trading?.........i guess it is if your doing it intraday but not if your swinging it, am i right?.............just this would be my only fears of this system and going by what grey1 says about momentum trading, it scares me a little that even though right now im consistent with it, that in time i might not be if you know what i mean. Grey does value trading as we all know and never seems to get drawdowns because he is always well diversified, but with this system are the drawdowns inevitable?............i only ask because i lack that experience?

by the way i reached my goal today, two nice shorts out of the zone.

what do you guys think?


jason

 

[JTrader]

I think the only problems with this system are -
1. the periods when price hangs around the H1 open for the rest of the hour, whipping up and down but not offering much in terms of profit opportunity,
2. Being greedy and not taking a profit while it was there.

But if like has happened today and price is trending nicely on M5 (GBPUSD), 1 neat trade per hour is possible. See my earlier attachment.

 

[Trader333]

Momentum trading, (for US Stocks in particular which is what Grey1 trades) is very different to that of currency trading. It has a lot to do with what is known as "Accumulation" and "Distribution" which is just not possible with currencies. dbphoenix has talked a lot about this on here but in short what happens for US stocks is this:

1) On the quiet a MM will start acquiring stock and as he does the available stock in circulation decreases.
2) They acquire so much that they have an almost controlling interest in it.
3) They then start to ramp the price up slowly at first but as they do others (momentum traders) start to notice
4) Then a frenzy starts where the price moves up very quickly and this is where most momentum traders jump on board.
5) At this point the MM dumps all the stock they are holding which is purchased by momentum traders desperate to get in at any price. This is where you see a price and volume spike on a chart
6) Now the MM have been able to sell all the stock they had at the top of the market but now there is too much supply and the price drops very quickly leaving all those momentum traders holding a whacking great loss.

This is why Grey1 is against momentum trading (as am I) but for currencies doing this is just not possible as the market is too big.

There is a bit more to it than that but in essence this is what happens


Paul

 

[jayjay121]

Momentum trading, (for US Stocks in particular which is what Grey1 trades) is very different to that of currency trading. It has a lot to do with what is known as "Accumulation" and "Distribution" which is just not possible with currencies. dbphoenix has talked a lot about this on here but in short what happens for US stocks is this:

1) On the quiet a MM will start acquiring stock and as he does the available stock in circulation decreases.
2) They acquire so much that they have an almost controlling interest in it.
3) They then start to ramp the price up slowly at first but as they do others (momentum traders) start to notice
4) Then a frenzy starts where the price moves up very quickly and this is where most momentum traders jump on board.
5) At this point the MM dumps all the stock they are holding which is purchased by momentum traders desperate to get in at any price. This is where you see a price and volume spike on a chart
6) Now the MM have been able to sell all the stock they had at the top of the market but now there is too much supply and the price drops very quickly leaving all those momentum traders holding a whacking great loss.

This is why Grey1 is against momentum trading (as am I) but for currencies doing this is just not possible as the market is too big.

There is a bit more to it than that but in essence this is what happens


Paul

I get ya, brilliant explanation, thanks.

what you describe above sounds alot like what happens in fake outs, i have rules in place for my trading and was taught this by viperspeedtrader, that i will only take the second bar out of the range, also looking at the dom L2, you can normally see the size there one second gone the next second, i can honestly tell 8 times out of ten when its a fake or not.

You have made my day because basically what you are saying is that currencies is too big a market to get these fakes and also as i trade er2 which does get the mm's, the way ive been trading i don't need to fear them because i have good rules in place to detect the fakes.


cheers

jason

 

[TheRumpledOne]

Hi TRO

What time is that on the EFX USDJPY level 2 screenshots? CET, GMT, EST, Mountain or Pacific etc.?

Cheers.

To be honest, I don't really know.

I am new to MT4 ( about 7 weeks now).

All I did was download the demo.

I think it is GMT or GMT+1.

 

[TheRumpledOne]

Hi TRO

people trading the BUYZONE are scalping using small Stop-losses. So I would think that the plan is to trade relatively big positions, targetting small profits in terms of number of pips.

trading the BUYZONE as you do, on an ECN, where the supply of lots is limited, as your screenshots show, aren't you at all concerned that by having many people trading this same strategy as you, at the same time as you, will have an adverse effect upon your ability to get filed at the right price/YOUR overall trading results?


Thanks again.

If not, why not?

FOREX is a TRILLION dollar a day market.

A few people trading 100 minilots or less isn't going to impact.

If anything, the more people trading the system the better because it creates supply/demand on your side.

 

[TheRumpledOne]

It's largely irrelevant whether TRO has a deal or not with EFX. He’s recommended them. It’s up to the individual trader to compare cost, execution speed, platform etc. as with all things.

As far as I can see, the guy has been more than generous with his time and efforts and all for free. If he’s been smart enough to cut a deal with brokers for introduction commissions, good for him. What do you care as long as you get a better deal out of it too?

I am an IB for EFX GROUP.

The reason I am an IB is because I was a customer first and brought them so many more customers they asked if I wanted to be an IB. I didn't even know what an IB was/did. EFX offered me this as a THANK YOU for what I was doing for them.

If you do something nice for someone, they sometimes return the favor.

Even if I wasn't an IB for EFX, I would still tell people to trade with EFX instead of a Fixed Spread Bandit, whoops I mean broker.

Whether or not you tell EFX I was the one who referred you, you should still NOT trade with the FIXED SPREAD BROKERS, IMHO.

 

[TheRumpledOne]

It's nice to be on a forum where people are treating each other in a civilized manner even though they may or may not agree with each other.

Thank you.

 

[JTrader]

If not, why not?

FOREX is a TRILLION dollar a day market.

A few people trading 100 minilots or less isn't going to impact.

If anything, the more people trading the system the better because it creates supply/demand on your side.

Thats what i think.

But i can also see that when trading on an ECN with a limited number of lots available (OK its still a shed load most of the time perhaps), with enough people doing the same thing, there comes a point where some people will not get filled at the desired price.

In one of the USDJPY screenshots you posted, i think there was 300 lots on the top row price of the bid or ask. 300 lots isn't much really. Some people on T2W trade 50 lots, so then it would would only take 6 such people doing the same thing at the same time to cause problems for the others.

 

[JTrader]

To be honest, I don't really know.

I am new to MT4 ( about 7 weeks now).

All I did was download the demo.

I think it is GMT or GMT+1.

With which MT4 demo do you get free level 2 data?

Cheers.