Baruch's Forex System Journal

Baruch · May 26, 2004

Quote from nycderivtrader:

I second Turlo's thanks for all posters on this thread- we all should thank Baruch for starting and all of us for keeping this thread so helpful.

Unlike what I have seen from the majority of posts on ET, this one (for whatever reason) is the reason why ET was started (no bitch*ing, putting down, etc.)

Thanks again all for your hard work and helpful dedication,

NYCDT
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Hi nycderivtrader,

Nice to hear. Thank you.

Baruch · May 26, 2004

Quote from rax:

long in eurusd looks nice!
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Hi rax,

Where are you? Still long?

Baruch · May 26, 2004

"In my younger days I heard someone, I forget who, remark, "Sell to the sleeping point". That is a gem of wisdom of the purest ray serene. When we are worried it is because our subconscious mind is trying to telegraph us some message of warning. The wisest course is to sell to the point where one stops worrying."

nycderivtrader · May 26, 2004

Quote from Baruch:

"In my younger days I heard someone, I forget who, remark, "Sell to the sleeping point". That is a gem of wisdom of the purest ray serene. When we are worried it is because our subconscious mind is trying to telegraph us some message of warning. The wisest course is to sell to the point where one stops worrying."
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.............................and the VIX was born

NYCDT

Baruch · May 26, 2004

Rainstorm (!) from Australia has made this system:

1. Use a 5 min chart

2. Trade GBP

3. Use 4, 9 and 18 EMA (in different colours)

4. Use parablolics (setting: default) as trailing stop

6. Or a stop 20 pips away

7. Take profit after 50 pips

8. Don't trade flat markets

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You buy or sell the crosses. Very simple (I like that!). What do you think?

Baruch · May 26, 2004

If you want to be in the market nearly always:

3/7 ma's on a 5 min chart.

P.S. Also from rainstorm.

LoosenUp · May 26, 2004

Quote from manz66:

Hi Baruch,

I gave you few links hundred pages back for auto-trading , and you are still searching? I am surprised. Did you try them?

Your system is easy enough to code and automated, so try this link again their expertise is autotrading. Goodluck.

http://dynaorder.com/index.asp
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manz66,

Do you code the execution programmes on your own? How about your system's programme?

Baruch · May 26, 2004

Quote from Baruch:

Rainstorm (!) from Australia has made this system:

1. Use a 5 min chart

2. Trade GBP

3. Use 4, 9 and 18 EMA (in different colours)

4. Use parablolics (setting: default) as trailing stop

6. Or a stop 20 pips away

7. Take profit after 50 pips

8. Don't trade flat markets

------

You buy or sell the crosses. Very simple (I like that!). What do you think?
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I am test-trading the system. But I don't like this parablolisc thing - makes it very difficult to see the chart.

P.S. According to Rainstorm his system only makes 2-3 trades per week. I can't understand that.

LoosenUp · May 26, 2004

Quote from TRADERguy:

I day trade the Eur/USD futures (E6). If it looks like a trend day is forming, I will look to get in on a retracement. Because my costs for trading are so low (about 1/20th of a tick (pip) plus the spread if I chose to pay it), I can trade frequently if I want to. During directional moves I can exit when it gets over extended and enter again at a better price. In this way I can capture more than 100% of the move even if I miss the beginning and end of it.

If the price is moving up and down in a range, I get in when it is at an extreme and exit a little over half way through the range. Then I wait for another extreme and do it again. I can also enter if the price gets a couple of tics out of line with the cash. These trades are for one to three tics. This is tricky because sometimes the futures get out of line with the cash because someone who is about to put on a large cash trade will load up on futures first (or the forex desk at a bank will front run a customerâs cash trade in the futures). Knowing the difference is more of an art than a science and comes with experience from watching the futures order book (depth of market) and the cash.

My trades are discretionary and not from a system. I use chart patterns, support and resistance, moving averages, Bollinger bands, and order flow. I have studied a large variety of quantitative indicators but I have internalized most of it and don't display the indicators on the screen. Remember that most technical indicators are derived from price, so it is really all there on your chart to begin with. I still have the MACD w/histogram at the bottom of my EUR/USD charts, if for know other reason than I feel like my charts are naked if they don't have at least one squiggly indicator at the bottom.

I look at charts of the market I trade in several different timeframes: 5 min, 15 min, 60 min, and daily. I use 7, 10, & 20 period EMAs and put the 200 day average on the daily.

I also look at 15 min charts of JPY and GBP as well as the e-mini and the 10 year US treasuries. Other markets that I follow with a quote board (all futures except gold) are the 30 yr bonds (US), 5 & 2yr notes, Bund & Shatz, Dow, NASDAQ, Dax, Eurostoxxs, oil (WTI), gold, Footsie, EUR/JPY, EUR/GBP, & CHF.

I go into major economic releases flat and trade when the number comes out. During really important releases I trade the 10yr treasuries at the initial release because of lack of liquidity in the EUR/USD futures.

Stops are generally 1 to 10 tics, and are mental (not in the order book).
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Hi,

How many trades you do per day? Using 1-10 pips stops seem to be too tight, no? How many pips do you take your profits?

Thanks

LoosenUp · May 26, 2004

Baruch,

You seem to have conveniently left out those trades which whipsaws around the M.A 50 on your system. Do you actually trade all of them and if not, what is your filter?

Thanks