"The only way to trade with Fibonaccis" journal

Discussion in 'Journals' started by 1a2b3cppp, Mar 6, 2010.

  1. Is this an honest attempt at trading fibs with real money?
  2. I explained all this in the other thread, but yes.
  3. And you're going to be averaging down at every fib level, like you have been doing in your examples?
  4. I don't know how else to say it but your profit appears to be completely random.

    Would you have shown us this if, after buying @ 1133.75 (your initial fill?), ES collapsed 3 points lower? These levels mean nothing.

    You can draw a dozen fib lines on a chart and eventually you're going to see prices cross those levels. Does that imply that those prices were "pre-ordained" by your levels?
  5. Yes. Well, at 38%, 50% and 62% (or whichever price is closest when there's not an exact match). I average down with this method. I'm sure there will be lots of haters and nay-sayers telling me how bad this is, but with properly defined risk and stop losses there is nothing wrong with averaging down. I know where the hard stop is for every trade before I begin.
  6. Are you asking if I would have posted a losing trade? Of course. I'm sure you'll see some losers as this journal continues.

    Perhaps you missed the point of the other thread (the one I linked to). I never claimed there is anything magical about fibs. I have simply modified a trading method to include fibs because I wanted to post the first (and only) way to trade with fibonaccis that actually works, and has all the entry, exit, and buy/sell levels established ahead of time. The main point is that I don't care if price reverses at a specific fib level or not. As long as it reverses somewhere (past my first entry, of course) I will make money. This is all explained in the other thread.
  7. Today's PnL.
  8. Chart's of today's trades:

    edit - I'm getting an error message when I tried to attach the image.
  9. Ok sorry about this but you're getting the MS Paint version today because my computer isn't cooperating today.

    First trade:

    I drew a green line where the fib lines were drawn. It was the down swing this morning. The red circles are sell shorts, and the green circle is the cover.
    #10     Mar 8, 2010