2009.04.15 DRAIN THE BANKS - REV 006

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TheRumpledOne
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Postby TheRumpledOne » Fri May 15, 2009 7:24 pm

I trade with MB Trading Direct Access Brokerage Firm


They are an ECN. THERE IS NO FIXED SPREAD IN FOREX.

You can google and find out what I really think about "FIXED SPREAD BANDITS".

I'll leave it at that so I don't get banned.

How do I avoid the spread?

I explained this to someone yesterday in an IM.

With MBT you pay a commission rather than having a "FIXED SPREAD".

It's "apples and oranges" so don't try to compare. "THE MATRIX HAS YOU" and you need to "FREE YOUR MIND" to understand what I am about to explain.

Let's say the current bid/ask is 1.5010 x 1.5015

The current spread is 5 pips.

You want to SHORT.

You SHORT at 1.5010.

You set a TP at 1.5005.

Bid/Ask becomes 1.5005 x 1.5009 and the current spread is 4 pips.

At MBT, you will get filled if the bid is 1.5005 and someone TAKES your offer.

Bid/Ask is now 1.5004 x 1.5009 and YOU HAVE YOUR PROFIT.

Note: the ASK never reached 1.5005. THIS IS IMPORTANT!

If you entered this order at a FIXED SPREAD BANDIT, whoops I mean broker, your order is STILL OPEN!!

The bid/ask must become 1.5000 x 1.5005 and your order HITS the Ask.

DO YOU GET IT?

If not, then read this over and over and over again until the LIGHT BULB goes off!!

The day I found out about MBT is the day I opened an account there and stopped trading with FIXED SPREAD BROKERS.

The simplest thing to do is to load up a demo account at MBT Group and see it with your own eyes.

When you place your TP Bid offer at 1.5005, your bid is displayed on Level II.

The point is with MBT your offer gets hit.

With FIXED SPREAD BROKERS you have to wait to hit their offer.

Maybe this might help:

First:

1.5010 x 1.5015

and price drops...

1.5009 x 1.5014

1.5008 x 1.5013

1.5007 x 1.5013

1.5006 x 1.5012

1.5006 x 1.5011

1.5005 x 1.5011 You may get hit

1.5005 x 1.5010 You may get hit

1.5004 x 1.5009 YOU COVERED 5 PIP GROSS PROFIT

AND LET'S CONTINUE

1.5003 x 1.5008

1.5002 x 1.5007

1.5001 x 1.5006

1.5000 x 1.5005 YOUR FIXED SPREAD BROKER FILLS YOUR ORDER.

Does that make it clearer??

What about the commission cost?

The commission varies depending on the pair trading.

It is $.50 per 10k minilot on USDJPY. So if I gross 2 pips, I am making money.

From the MBT site:


Commission Rates

Fixed spreads are a way for FCMs to markup or markdown the best bid or offer. FCMs do this to hide their fee into the price of the currency pair instead of

displaying their best quote. Common sense tells you that no one works for free, so when you see an FCM claim they have "no commission", that should be a red

flag. So how are they getting paid? Its simple: they are making money with the built-in markup/markdown in the spread.

Our FCM, MB Trading Futures, has nothing to hide. They offer tighter spreads with no markups/markdowns and openly display a low commission rate.

Commissions are based on total dollar amount traded: $5 per $100,000 traded.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Re: How?

Postby TheRumpledOne » Fri May 15, 2009 7:26 pm

lisyah wrote:Few questions:

1. I'm using FxPro I noticed that the trigger line is not the same as a 4 digit brokers. Do I need to change anything?

PLEASE POST A CHART SHOWING THE PROBLEM

2. What's a DFSR?

DYNAMIC FIBS SUPPORT RESISTANCE

3. What's the training wheel purpose?

TO ONLY GIVE TRADE SIGNALS WHEN EVERYTHING IS LINED UP PERFECTLY

Many thanks.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby TheRumpledOne » Fri May 15, 2009 7:31 pm

Hello, I have been following DTB system for several days and found that most signals produce profits rather quickly on GBPUSD and EURJPY. However, many times the audible signal seems to come late making it necessary to watch the M15 chart and enter with visual confirmation.

I DON'T USE THE AUDIBLE ALERT. I AM NOT SURE.


For instance today at 9:40 EDT (13:40 GMT ) an alert sounded to short GBPUSD at 1.5283. But the market price was 1.5256, 27 pips below the signal price. So, the question in my mind was does the alert mean that when price returns to 1.5283 to sell, or was the alert just late in sounding?

NOT SURE. I WILL HAVE TO CHECK.

Like the system, glad to be here.

GLAD TO HAVE YOU.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby TheRumpledOne » Sun May 17, 2009 1:16 am

The trigger amount is an INPUT.

You can change it.
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the method is very simplistic in nature but VERY EFFECTIVE!

Postby Shinobi-X » Mon May 18, 2009 3:05 am

Hi, just come by to report after using this pirate method :D
My conclusion is it really work as campaigned here. Maybe I used it slightly different than what it originally intended but it covers the basic of DTB method IMHO. Here's how it went (and the findings thereof):

1. I noticed that the 3 level ZZ is very strong (especially the 3rd/yellow icon)
2. I also noticed that ZZ WILL move until it find a strong base (strong level of S/R). I first used this 3 level ZZ on M1 (one minute) TF and see that the (yellow icon) moved to another spot when the current price drove the price lower. But when it reached its zenith level, it became a strong level.
3. I find that this is also (point no.2 above) true in all TF
4. so I wait until it (the yellow icon) rest at a certain spot and then enter a position.
5. I have found out that H1 to be the best TF for me (also the TF TRO uses and recommend-please correct me if I'm wrong)

This method alone have produced me 500+ pips (yes, I have to let the position ride for sometime).

All in all my apology to TRO for not using the DTB for what it was intended to do (I only use the 3 level ZZ and decided not to use the rest of the zipped files) and I also want to THANK TRO for bringing this method to the surface (I followed you for sometime now and have found that your posts on the main page to be eye-openings).

Happy trading to all...

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Postby TheRumpledOne » Mon May 18, 2009 3:36 am

Shinobi-X:

No need to apologize. Each trader much find their own way.
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Postby Shinobi-X » Mon May 18, 2009 9:10 am

To the GREAT TRO,

Thank you for your kind words, you are truly a man of understanding. Just like you said, everyone must use the tool and make it fit for themselves. Because no matter how good the tool is it is eventually the trader that will have to initiate the trade (unless you are using EA or any robo trader) and I am happy to have read the DTB thread.

I just want to report that I am currently 140+ in the green trading E/J (entered early in the 05:00 GMT for 127.503).

Great trading to ALL...
The gap between reality and dream is called action.

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answers

Postby Shinobi-X » Tue May 19, 2009 6:24 am

@ jgadefelth and Nessa Novembian

I've been trying to define how and when... but I've failed every time i tried (this is even before using the current 3 level method). Because ultimately the price will move as far and as often as it wish. However, there are tools out there that will help give an edge to us. Tools like volume, S/R (a long history of it), MAs, and they contribute huge success to the traders that dwell with them.

What I do now is... I never want to determine when and how. I simply follow the price. I STALK it. maybe you'll miss 25 pips, 30 pips, or even as far as 100 pips but its worth the time. I usually wait after several hours until the price move to the other direction and then I go with it. The main idea is to follow the price, not guess (yes, trying to catch a bottom or top is a meaningless effort because nobody knows where the bottom or the top is-correct me if I'm wrong here). You don't have to stay in front of your monitor all day long but be sure to check it every hour or two. Depending on your MM, you might want to lock your profit when you see them after several hours in the green (for me though, I will wait until the next 3rd signal to exit and enter again-this is how I got huge pips).

You might want to check your E/J chart now to see how it work out.

All credit goes to the coder and especially TRO.


Good trading to ALL.

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Postby Shinobi-X » Tue May 19, 2009 11:40 am

this is why I tested the method using M1 to see what would it be like during such and such market condition. did you check your e/j just after I post the previous comment? the first appearance of 3rd icon was 00:00 GMT 5/19/09 at it had moved several times ever since. the current icon stand at 10:00 GMT 5/19/09. you would incur unrealized loss (or it could be a realized loss if you closed the position) of approx. 130 pips if you jumped in on the first appearance and waited only 3 hours. I mentioned several hours not 2 or 3 hours.

additionally, if I'm green for like 40 pips I will most likely lock-in 20 pips using SL and let the price run gradually. if I'm green for like 70 pips I lock-in 50 pips. however, I don't use TSL because this method of profit locking means you are willing to lag behind for a xx pips (I stalk the price so I don't need TSL, unless I go to bed or leave the position during weekend), that's why I prefer to move the SL manually.

you can always stay in the market if you prefer so, but I sure don't do that. there is a time to recover physically or to get relaxed, enjoy the fresh air...

you seriously want to look at your e/j chart now though... there might be something good happening during the US session.

this far I can help you but I am unable to explain anything other than this because it will be very subjective in terms that you might have any other supporting knowledge that can help you define your own rules to refine the current one. just like TRO said "each trader must find his own way"

Good trading ALL.

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Postby TheRumpledOne » Tue May 19, 2009 12:12 pm

Shinobi-X:

Please post charts showing your trades so we can see what you see.

Thanks.
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