(Each of the last three days the loss has gotten smaller.) I’m perfectly aware that I could easily be wrong, but I think it’s a settled matter. Going forward my chart setup will be a version of the two charts I posted yesterday, except that the final chart does not look as complicated, which is why I’m not posting its image. (Unfortunately, it might be so simple that other traders could easily figure out exactly out what I’m doing, and though it might be a character flaw, I’m not so magnanimous or altruistic as to publicly share such intellectual property for free.) The CHFJPY trade unfolded perfectly, but instead of being satisfied when it was time to go to bed, I reentered the position and then retired for the night, given that the pair was still trending southward. However, the rate failed to hit my target before reversing north all the way to 112.47, which stopped me out and took back some of the gains I enjoyed. Had I been awake later on when price fell back down to 112.23, I would have reentered the position and recouped all of my profits and more, but I was still asleep at that time. This brings me to a point I want to make in answer to a question someone asked me in another thread. The question was… “How was your system during EUR fall today? I am really interested how it works on such moves.” Before I answer the question, let me preface it by saying that I used to try to trade based on what I anticipated the market was going to do. For the most part, that is no longer the case (unless I am going to bed, as happened last night, but even then, I will normally exit all my positions first, but I simply fell victim to overconfidence yesterday because of how well the strategy was working). I mention this because, just by coincidence, I am currently stuck in a position with EURJPY, and if it does not climb back up to 131. 12 in the next 24 to 48 hours, I’m going to end up having to eat a big loss. The upshot is that the system is now perfected (I hope) so let me share how it should have worked. Again, I am basically using only two envelopes and three moving averages now—so, so simple! There is no need for any proprietary indicators whatsoever (though I am using one in combination with the lowest moving average because it enhances my ability to clearly see what price is doing—but it is not necessary—and I also have a proprietary indicator version of the final chart, but again, this is totally supplementary). The point I need to stress is, this approach is 100% hands on! It requires traders to react to price action, in accordance to what the chart is communicating at each moment, because the information conveyed by the charts is timely, accurate, precise and detailed. Let me at least give you a close-up so you can see what I'm talking about… This is the proprietary indicator I coded myself (see above). Note how clearly it communicates when and where the price cycle is reversing direction. Had I been using it when I purchased EURJPY, I would have exited my long position at 131.12 when the cycle began to reverse downward. If I were still interested in buying the pair, I would have done so again @ 130.82 and exited at 130.90. And if I were still convinced that there was no way the pair could continue to resist the structural pull to the north, I would have entered a long position one last time @ 130.60 and exited with my profit at 130.75. Of course, I could have continued “riding the waves” in this same manner if I'd wished, but since the general overall day-to-day trend is bearish, I’d probably have been inclined to wait for price to climb back high enough to begin shorting the pair once more. It’s no surprise that this is all so crystal clear to me in hindsight—but is it going to work in real time??? Given that it was working last night with CHFJPY even BEFORE I was using the above proprietary indicator and its accompanying simple moving average (exiting with profit and then reentering the position to collect some more depending on when price surges and when it pulls back), I think so. I’ve been demo trading based on the same basic principles since November 2015, with some versions of my implementation yielding an 80% to 100% daily success rate, and others resulting in several days of consecutive losses, as I experienced this week. However, if things go as planned, I’m hoping it will all be worth it, and I will now be able to trade with a ridiculous amount of frequency, and yet maintain my 90%+ success rate. If this happens, it will be very nice indeed. But if not, I will simply go back to a proven version that is not quite so ambitious.