THE BUY ZONE - TheRumpledOne

TheRumpledOne said:
I have eSignal, TradeStation and MT4 live.

Why?

1) If one feed goes down, I want to know what is going on. I am trading with REAL MONEY

2) Sometimes one feed will lead/lag the others. This may allow me to exploit the situation.

When trading, you are trading against the world's biggest, best, fastest, etc.. traders. You need to have the best tools that you can afford. DO NOT BE CHEAP WITH YOUR TRADING TOOLS!!
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Due to the above mentioned reasons, i have multiple MT4 platforms installed on my my PC, from multiple MT4 brokers. Therefore i can compare price at any time, and if say alpari MT4 goes down, which i have only known happen once, i can open one of the 3 seperate MT4 platforms installed on my PC.
Therefore i still achieve what you seek above - all for free - multiple platforms/applications all displaying seperate datafeeds.
 
I just want to say THANKS to all the traders who stopped by the TWO PERCENT CLUB for the first time last week. I hope you got your questions answered and made a few pips.
 
I spent 3 hours in TRO's TWO PERCENT CLUB paltalk room today.

I made 4 trades, 3 won 1 lost +9 pips net. I also didn't trade various signals. The final split was 8 wins to 6 losses, had i traded all the signals in these 3 hours - with my parameters of +6p PT, 5p SL, AND ENTRY +OR- 4 pips from the H1 open price.

TRO offers insightful & regular commentary. Anyone can also request the mic, though none did today.

The attraction to this style of trading is that with so many trade signals per hour, maybe 2-4 on average, if you do play your cards right, you need not be at it all day. Instead choosing the best times to trade.

The BUYZONE today was pretty fast & furious on USDJPY. If you are familiar with basketball terminology, think of a team that plays a "run and gun" style of offense. You need to be quick & decisive.

With a fairly even split between winning & losing opportunities. My concern with this approach (as with any approach) - is how bad can drawdown get?
I'm not just talking about total consecutive losses, but also when you enter a sequence where say 2/5 trades are losing etc. which gradually sees your account dwindling, as opposed to being in free-fall, when you are using roughly equal profit targets and stop-losses.
So my concern is that although i do not see this approach as being a contender for the loser of the year award, it is easy to see how one could end up at break-even PnL.

But yes, it was certainly interesting to visit the TWO PERCENT CLUB.
 
5 day backtest results

Hi everyone

I have done some more analysis of USDJPY from 0800-1600 UK time over 5 days from this week & last week.

The entry lines are +/- 4 pips from the hourly open price.

Using a +6p PT, and a 7p SL, there were 160 trades = 92 winners, 67 losers = a Net loss of -46p assuming a 1 pip total spread. (+450p -496p). 57.86% winners

Using a +6p PT, and a 5p SL, there were 172 trades = 85 winners, 91 losers = a Net loss of -123p assuming a 1 pip total spread. (+450p -496p). 48.29% winners.

OK, so lets assume you can improve on these results with some good money managment techniques aimed at avoiding a bigger loss, such as a trailing stop loss.

I am genuinely interesting to know how anyone thinks they could turn these net losses into net winnings, through using good money management skills. How would you do this:?: Answers on the back of a postcode please.

Thanks a lot.

PS. I am extremely skeptical about how any strategy that risks more than it rewards, without having a 75%+ winning ratio, can have a credible future. These are serious issues with the BUYZONE that need addressing.
It's OK saying that trading is simple, and all you need to trade is a horizontal line, but with results like the above, trading a plan where you are happy to grab a +5p while risking -8p, would seem like a non-starter to many.
I sincerely doubt that anyone can make consistent net profits trading this plan. If they do - this defies logic, and the statistics!
:|
 
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JTrader said:
Hi everyone

I have done some more analysis of USDJPY from 0800-1600 over 5 daya from this week & last week.

Using a +6p PT, and a 7p SL, there were 160 trades = 92 winners, 67 losers = a Net loss of -46p assuming a 1 pip total spread. (+450p -496p). 57.86% winners

Using a +6p PT, and a 5p SL, there were 172 trades = 85 winners, 91 losers = a Net loss of -123p assuming a 1 pip total spread. (+450p -496p). 48.29% winners.

OK, so lets assume you can improve on these results with some good manoey managment techniques aimed at avoiding a bigger loss, such as a trailing stop loss.

I am genuinely interesting to know how anyone thinks they could turn these net losses into net winnings, through using good money management skills. How would you do this:?: Answers on the back of a postcode please.

Thanks a lot.
Click to expand...


if you look at the er2 for the last 3 weeks, you'll see how i've made money from the buyzone................i don't re-set it though like some do....................but i do fore see the whipsaws soon and drawdowns and your analysis only makes this more of a reality to me..........i really honestly love the buyzone and the way i feel is like i've truly found the grial but deep down inside i know trading in reality is alot tougher than this............also people telling me this sort of trading is classed as 'ganster trading' and basically it will not work in the long run, this has all halted me and im now thinking of putting true dedication into my trading to find that real edge but i will always have a soft spot for the zone and the confidence it has gave me.



jason
 
Crap Buddist said:
Tokyo Session ?
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Asian session, Euro session, US session - I don't think it makes any difference CB, afterall, it only targets small amounts of pips. It certainly doesn't look to make a difference, when you look at each hours trades on a chart. I.E. 0800-1200, does not tend to look any more or less successful than 1200-1600. So i don't think main trading hours for USDJPY is a factor in this.

Remember also, my results assumed a 1 pip total spread. Name me a broker that will enable you to trade USDJPY with a total spread (inclusive of commissions) of 1 pip on every trade :whistling. And the same applies for EURUSD. Average total costs (spreads/commissions) of 1 pip are not possible, are they?
 
JTrader said:
Asian session
Euro session
US session

I'm not sure it makes any difference CB. It certainly doesn't look to make a difference, when you look at each hours trades on a chart. I.E. 0800-1200, does not tend to look any more or less successful than 1200-1600. So i don't think main trading hours for USDJPY is a factor in this.

Remember also, my results assumed a 1 pip total spread. Name me a broker that will enable you to trade USDJPY with a total spread (inclusive of commissions) of 1 pip on every trade :whistling.
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Hi JT, dont know bout the BZ but remember some pie analysis about Pair trading times Kathy Lien , If I recall, had dollar yen, moves/liquidity peaks during tokyo session. hey and ya know when those asians start buyin, they buy everythin.. hai, hai.. haigher..... :)

Good luck.. JT
 
Crap Buddist said:
Hi JT, dont know bout the BZ but remember some pie analysis about Pair trading times Kathy Lien , If I recall, had dollar yen, moves/liquidity peaks during tokyo session. hey and ya know when those asians start buyin, they buy everythin.. hai, hai.. haigher..... :)

Good luck.. JT
Click to expand...

Take 0800-0900 ths morning on USDJPY for example. 3 quick wins = great start. But then this was followed by 3 consecutive losses. Net PnL = -9p, assuming total spread/commision of 1 pip only.

My point is, for any newcomer approaching the BUYZONE thinking that it will be a simple & effective way to trade the markets, once they open their EFX group or CapitalForexPro live or demo ECN forex brokerage account - I think they will be in for a rude awakening, and will struggle to break even.
:|
 
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You have to know when to quit...LOL!

If you are trading 100 minilots, have 3 quick wins and are up 10 pips are more, it's time to quit for the day.

But, as I see it, some people are looking for reasons why this can't possibly work, while others are looking for ONE WAY IT DOES WORK!

If you can't look at a chart and see that this works, then, by all means, DO NOT TRADE THE BUY ZONE. Find some squiggly line system with multiple indicators and charts. They are plenty of those available.

MAY ALL YOUR DEALS BE ACCEPTED.
 
Hi TRO

I just remembered that i developed a pretty effective scalping strategy about a year ago, and developed a slightly more iffy one last month. Both of which use squigglies.
However, decided that scalping & short time frames is not really my thing.
I just like to have an all-round methodology to cover all timeframes etc. maybe guilty of searching for the holy grails :eek:.

Like you say, if the BZ can work for the individual, then great. And a style of trading where you only need to pay 10 minutes attention per hour is commendable.
The 1:1 risk reward ratio is the thing that i am not comfortable with. 2:1 or more is what my other scalping strats work on. Although i can see that it is possible to target more than 1:1 r:r WITH THE bz.

So while the BZ may not be for me, I have enjoyed visiting your TWO PERCENT CLUB paypal chatroom.
All the best :)
 
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LOL hope you dont mind me butting in.. I'm a newbie trader and Trade 2 Hours in the morning and 2 Hours after work per day for the last week and half, I do call me trade on the Two Percent Club and I've been see 8-10pips/day average. I'll keep trading this system until I see it turning against me. Isn't it a trader's best interest to let profit run and keep the loss small? If I'm placing a trade on the BZ, then it would mean my profit is running... so I'll just let it run for now. ;-)
 
You don't have to trade the Buy Zone on the hour.

The Buy Zone was originally developed to be traded when the market "open" each day in London, New York and Sydney. More of a daily swing type strategy.

Trading the Buy Zone every hour is just another way to trade it.
 
Bagged 37 cents with AAPL (long) within the first minute of the open. Ten minutes later price comes back down to bounce off the opening price for another 21 cents. I love when stocks behave!
 
"you are trading 100 minilots, have 3 quick wins and are up 10 pips are more, it's time to quit for the day."

Hello TRO, hello all.

Been following this with interest.

I often wonder a little bit about the mentality of "if you have some winners then stop". To me it's a little like playing roulette (for which there is no winning strategy of course) and saying "I stop when I am ahead" and calling it a winning strategy. The statistics don't stop and reset at midnight - but I wonder if the markets do have an element of that in them, ATR being an example that springs to mind.

Cheers for now,
Dave.
 
"you are trading 100 minilots, have 3 quick wins and are up 10 pips are more, it's time to quit for the day."

For me, thats a sign that the strategy is non-rhobust, and that you have little confidence in it, and you are relieved to call it a day if ahead.
 
JTrader said:
"you are trading 100 minilots, have 3 quick wins and are up 10 pips are more, it's time to quit for the day."

For me, thats a sign that the strategy is non-rhobust, and that you have little confidence in it, and you are relieved to call it a day if ahead.
Click to expand...

Hi there Jtrader.

This is the thing that has me thinking. I tend to have a bit of that mentality in my disretionary trading with regards to the ATR. I don't pretend that I have mechanical system which is fully backtested and works on a "take every trade no matter what". I've found over the years that my better view is that my system is an "approach" - discretionary in nature.

I do tend to look and see where a given pair is against it's ATR before I consider trading - if I wake up and EURUSD (for example) has already moved 100 pips or so then usually it's my permission to have a day off and enjoy my life.

But then again, I'm not a big believer in none-discretionary systems. Most of the major banks kicked their Tech Analysis trading teams out of the door - and a quick glance at the annual % figures in FX managed accounts by major banks shows results I know I wouldn't be happy with.

Interesting to think about for me anyhow!

Cheers,
Dave
 
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