Buy Sell Zone on FOREX

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doragio
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Postby doragio » Tue Jan 08, 2008 7:29 am

BP,

Could you shed some light as to how you are exiting? I understand the concept of the buyzone and the entry criterias, the stops are also easy, 6-8 pips. but how are u dealing with the exits?

If you're on an hourly chart, the candle can penetrate the buyzone, retrace back only to shoot through later. So scenarios like this give you several different decision points to make exits. It also depends on which timezone's candlesticks you're looking at. I'm finding thsi is the discretionary part as there is no clear cut guides to take exits. Any inputs would be appreciated.

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BP
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Postby BP » Tue Jan 08, 2008 10:39 am

Doragio,

You are right, the exit is maybe the hardest part of the buyzone. When I am in an active trade, I look at the 1 minute chart. I do it more by gut. If it hovers around a certain price for too long, I may just get out. If I think it is going against the trend, and it is not moving, I may get out. But sometimes if I believe I am with the trend, I may stay in a little longer....It is hard to quantify the exits.

So, sorry I cannot help you more. But I figured out that with my broker, a non-fixed spread broker, I still make a profit with just one pip of profit. Of course, with one gross pip, it is costing me, after the trade is done, about 40% of that pip. So, any pips after a half a pip, is pure profit for me. The point is, I know that if I at least hit one pip, I make money. Therefore I am not hesitant at all to only take one pip profit many times. A friend of mine taught me that a bird in the hand is worth two in the bush....so I figure, at least I am ahead.

Good question Doragio....and I don't have a good answer.

BearPaw

BP
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Postby BP » Tue Jan 08, 2008 10:52 am

Since I promised to TRO that I would post a pic every once in a while, here is a pic.

This is of a trade I just did this morning, at 5am EST. I made a quick 5 pips. I use MT4 as my charting software but trade with a non-fixed spread broker. On the pic you see the opening price is 109.59. I get in at + or - 4, so basically at the top or bottom of the blue lines. It hit the top zone, or the buyzone at 109.63. I entered a millisecond too late, or too early...lol, so my entry was actually at 109.64. I watched the price, then when it started to spike up, after it had gone down a little, I wanted to get out with some profit, so I exited at 109.69. So a nice quick 5 pips profit. I did leave pips on the table, but my grab bag was full enough, so I am happy.

Here's the pic.

BearPaw



jayjay121
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Postby jayjay121 » Tue Jan 08, 2008 3:02 pm

hi, how do you guys avoid the fake out trades that occur when ranging inside the buyzone?, what i do is use my dom based on what viperspeedtrader teaches, and i can usually tell the fakes, plus i have a rule that i must only trade the 2nd bar outside of the range. what do u guys do, just trade every buyzone trade?

also am i right in thinking that the buyzone is momentum trading? if not what style is it?

by the way already done trading, took that lovely trend up from the buyzone on the er2, 2.7 ticks in all, could of had alot more, but well happy.............ill keep you posted.


jason

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Randolermo
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Postby Randolermo » Tue Jan 08, 2008 3:53 pm

BP wrote:But I figured out that with my broker, a non-fixed spread broker, I still make a profit with just one pip of profit. Of course, with one gross pip, it is costing me, after the trade is done, about 40% of that pip. So, any pips after a half a pip, is pure profit for me. The point is, I know that if I at least hit one pip, I make money. Therefore I am not hesitant at all to only take one pip profit many times.

BearPaw


Bear, my broker, IBFX, has normal spreads like 2, 3, 4, or more pips. So to get one profit pip, I would have to have a gross profit of 3,4,5, etc, wouldn't I? :oops:

I'm not sure I understand your 'non-fixed spread broker" term. I'm thinking it is like EFX where the trade cost is fixed which is probably the right way to get when dealing with these small profit plays or else the spreads will kill you. :(

Let me you where I'm going wrong for I'm about to fund an account in February and using this BZ method. To be successful, it looks like it makes sense to get rid of IBFX and go to someone like EFX.

Thanks...Rando

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Test - TRO_24Hours image

Postby koolbreeze » Tue Jan 08, 2008 7:00 pm

Test - file attachment
Attachments
TRO_24Hours_USDJPY.jpg
TRO_24Hours_USDJPY.jpg (230.44 KiB) Viewed 1047 times

BP
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Postby BP » Tue Jan 08, 2008 7:56 pm

Randolermo, yes...that is the type of broker I am talking about...an ECN or for names, efxgroup would work well. Make sure to tell them that TRO sent ya. :) But I still use IBFX for the charts...I like them.

Jayjay...I havent figured out a way to filter the fakeout trades. Today we had several of them. But I just eat the losses and let the next trades get me profitable again. Good job on finishing early!! Pips are pips, and money is money!!

Koolbreeze, nice results, the TRO 24hour for the USDJPY...that is good stuff. TRO should be happy you posted it.

Results for today for me....

BuyZone = 7 trades, 2 losses, one not traded cause it happened too quickly. That was the news timing at 10am EST. 10 pips of profit though in total for my 7 trades, so I met my daily goal of 10pips.

Psycho trades(trades at 00s, 25s, 50s, and 75s) grossed me 17 pips...yeah!!

So total for today was 27 pips. Fun stuff.

later.

BearPaw
(BP)

4x=0
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Postby 4x=0 » Tue Jan 08, 2008 9:57 pm

FX wrote:
4x=0 wrote:
jimbil wrote:Hi

what exactly are these rules again?

Thanks.


when your p&l is -7 GET OUT

This is from last night; profit taking is up to you, I say they were both worth at least 30.



Good day 4X=0,

what indicator did you use to generate the zones on this chart?

regards, FX


Good Day FX.

It was a joint effort. It took TRO to discover the BuyZone, Daniil to code it into MT4 for me, and then I simplified it and made it look like what you see there. It is also customized to my own style of trading the buyzone, which is 1 zone per international session, each valid for 24 hours.

As TRO says, Forget about what other people say, think, do, have etc... in trading and in life. Do Not waste your time concerning yourself with them.

awr000
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wooley...did you make money on the 4pm trade?

Postby awr000 » Tue Jan 08, 2008 10:15 pm

I put a vertical line on my chart when I had to leave to get kids from schools. Bad luck for me today with meetings and such. :?

Image

C-Trader
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Postby C-Trader » Tue Jan 08, 2008 10:43 pm

Psycho trades(trades at 00s, 25s, 50s, and 75s) grossed me 17 pips...yeah!!


BP--
Are you just drawing horizontal lines at these whole numbers and going long if it moves above and short if it moves below?

Thanks

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