Simple as 1-2-3

[RicG]

Hey Captain,

The green down arrow marked the candle at which I entered the trade. When I'm using the CCI method on forex, I place my initital stop above the last swing high for a short and swing low for a long. In this case, it was just above the black candle, two bars back from the entry candle. Therefore the stop is not a fixed number, but is based on structure (i.e. most recent swing high or swing low).

I did seriously consider adding to my position on the retrace for two reasons:
1) I really liked the setup, the way price was acting, etc.
2) The retrace simply a reaction to AUD Retail Sales and Trade Balance numbers that came out last night, and not likely to change the overall trend.

However, I didn't add on the retrace - don't know why, darn it! Wish I would have.

Thanks for your post. Let me know if you have any other questions/comments, etc.

Regards,
Ric

[Captain Pugwash]

Thankee Ric

When you were trading the serious stuff using points I notice you went four points into profit then moved to b/e plus one - here you went by "take a profit or take a loss" - Are you doing that just for forex..

Is your target still three to one?

I am including a smaller tf chart for future reference - just to show that recent swing high you used - and you that you took some heat before the target.

I presume if the swing was a swing too far you would pass on the trade?



I do have a few other questions - but "slowly slowly catchee monkey" and the saying goes

Thanks again shipmate

crazily I need to learn when the current cci close over has "printed" - and not still wiggling so slowly i think its printed


edit changed the work adx to cci

[Captain Pugwash]

looks like another nice opp a bit later



edit- the blue box has nowt to do with Ric - its me playing at making things more complicated

[RicG]

Hey Captain,

When I came up with this strategy I conducted a lenghtly manual backtest on NQ to find the optimal profit target, stop loss, as well as the best type of chart to trade it on. The numbers came out that the most profitable was a 10 range chart, using a 6 point profit target, a 4 point stop loss, but moving the stop loss up to break even plus 1 point once price moved at least 4 points into my favor. On forex, I'm currently freestyling it a bit by using the most recent swing high/swing low (structure) and adding/subtracting 5-6 pips above/below to place my stop loss. For a profit target, I'm using a combination of fib extensions, structure, and the knowledge that so far I'm able to get on average, about a 3 to 1 realized reward to risk ratio. And as you've probably noticed, I've been trading it on a one hour chart.

Having said that, I plan to do a couple of things to setup a better CCI TLB strategy for trading forex:
1) Pick out 1 or 2 pairs, based on recent and long term ATR to focus on utilizing this strategy.
2) Do an extensive manual backtest, like I conducted on NQ, to find the optimal chart timeframe, stop loss and profit target.

In answer to your other questions:
1) Yes I took some heat on the trade you referenced, both shortly after entry and then again when it retraced back up to the EMA. As I mentioned in a previous post, I was willing to do that because I really felt it was a strong setup with a chance for a great profit, and because that retrace came as a result of an over reaction to an economic report. I almost added to the position at that point, but for some reason didn't pull the trigger.

2) Yes, had the swing high been much higher, I probably would not have taken the trade.

Hope this helps,
Ric

Thankee Ric

When you were trading the serious stuff using points I notice you went four points into profit then moved to b/e plus one - here you went by "take a profit or take a loss" - Are you doing that just for forex..

Is your target still three to one?

I am including a smaller tf chart for future reference - just to show that recent swing high you used - and you that you took some heat before the target.

I presume if the swing was a swing too far you would pass on the trade?



I do have a few other questions - but "slowly slowly catchee monkey" and the saying goes

Thanks again shipmate

crazily I need to learn when the current cci close over has "printed" - and not still wiggling so slowly i think its printed


edit changed the work adx to cci

[MightyOne]

...here you went by "take a profit or take a loss"...

That is incorrect.

I NEVER advocate moving a stop let alone to breakeven + anything.

"take a profit" is present tense it means take a profit NOW rather than WAIT for price to retrace.
"or take a loss" means that you should be willing to risk failure to achieve your goals.

[RicG]

Captain's question was for me and about this specific method, not for you and your methods. Also you haven't looked at the statistical data for my strategy, I have. The data shows that for the NQ CCI/TLB method, moving the stop as outlined in the rules given in this thread creates the highest profit.

...here you went by "take a profit or take a loss"...

That is incorrect.

I NEVER advocate moving a stop let alone to breakeven + anything.

"take a profit" is present tense it means take a profit NOW rather than WAIT for price to retrace.
"or take a loss" means that you should be willing to risk failure to achieve your goals.

[MightyOne]

Captain's question was for me and about this specific method, not for you and your methods...

He was quoting me when he said "take a profit or take a loss".

I was simply responding to a quote being improperly used.

I really don't care why and how you move your stops, I don't want to be quoted for something I would not do.

[Captain Pugwash]

Thanks to both of you! Ric for the Response - thanks for putting your time in - its truly appreciated

And MO for taking an active interest in my particular "misquote" - an interpretation of your words that I have been actively "trading" for some time!

This may explain why 75% of my trades are almost immediately profitable

But I have such big tp's that only 30 something % of my trades are winners - MAN I am embarrassed to say what I've been doing

Because I have never moved my stops, the rest have been ...well ... not break even

and yet my account is somehow (and unbelievably) profitable ( slightly).

And another point MO - I take your work VERY seriously - as seriously as if i had paid for your words of wisdom - even tho I may have misinterpreted those words

What a Wally I've been - I shall now crawl under the nearest rock

[aliassmith]

Thanks to both of you! Ric for the Response - thanks for putting your time in - its truly appreciated

And MO for taking an active interest in my particular "misquote" - an interpretation of your words that I have been actively "trading" for some time!

This may explain why 75% of my trades are almost immediately profitable

But I have such big tp's that only 30 something % of my trades are winners - MAN I am embarrassed to say what I've been doing

Because I have never moved my stops, the rest have been ...well ... not break even

and yet my account is somehow (and unbelievably) profitable ( slightly).

And another point MO - I take your work VERY seriously - as seriously as if i had paid for your words of wisdom - even tho I may have misinterpreted those words

What a Wally I've been - I shall now crawl under the nearest rock

i have a possible solution for you. Don't move your
stop but do scale out half at 1:1.

[Captain Pugwash]

Thanks to both of you! Ric for the Response - thanks for putting your time in - its truly appreciated

And MO for taking an active interest in my particular "misquote" - an interpretation of your words that I have been actively "trading" for some time!

This may explain why 75% of my trades are almost immediately profitable

But I have such big tp's that only 30 something % of my trades are winners - MAN I am embarrassed to say what I've been doing

Because I have never moved my stops, the rest have been ...well ... not break even

and yet my account is somehow (and unbelievably) profitable ( slightly).

And another point MO - I take your work VERY seriously - as seriously as if i had paid for your words of wisdom - even tho I may have misinterpreted those words

What a Wally I've been - I shall now crawl under the nearest rock

i have a possible solution for you. Don't move your
stop but do scale out half at 1:1.

Yep Alias. you are right - I may go back to doing http://kreslik.com/forums/viewtopic.php?p=74520#p74520 this technique ( its over three posts) - Its much easier than it looks ( or how I marked it up) and gives me the intention from the beginning of adding back in again - because I KNOW the only way to do what you guys do is to ADD to a position