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How To Trade Gaps (Not What You Think)

Chris Lori Market Ineffeciencies Webinar

Think you know how to trade gaps? Think again. This free video from Chris Lori will change the way you think about market inefficiencies. I just finished watching it and I would recommend it to anyone. [...]

How to Find New Possible Trade Setups

setups

Here is quick video on something I do when I backtest. I will go through historical periods when I don’t even place any trades. I just watch the price movement and see if I can identify any patterns that emerge in relation to the indicators that I am using.

This is example of one [...]

How to Get $7,000 Worth of Trading Courses for $7

donation

This is what the holidays are all about.

I just got an email today from OU Forex Trader that is pretty amazing.  12 traders/educators got together and are going to give you $7,000 worth of trading tools and educational material if you donate $7 to their holiday charity donation fund.

How’s that for [...]

Reconstruction of a Trading System - Part 1 of 3

Backtesting

Doing some late night testing. I swear I can do twice as much testing when listening to music.

With the new changes in the CFTC rules and my lackluster trading thus far, I am back in the lab working on my trading systems.

There were a couple of reader requests to share some of my backtesting, so I decided to do a better job of documenting my testing.

Hopefully it will help me to organize my thoughts and maybe give you a few  ideas too.

Feel free to jump in and leave a comment at the bottom of you have a question, suggestion or if you have the answer to why manhole covers are round.

So here we go…

The system I am working on is Rob Booker’s CounterTrend/Vortex trade.  For simplicity sake, I will just refer to it as the CTT or Counter Trend Trade.

The CTT Explained

If you are not familiar with this trade, here is a quick explanation:

The basic idea is that we are looking for a price move that is overextended and want to trade it back to a mean or central price level.  There are different ways to do this, but in this case we are going to use pivot points to determine what is the mean and what is considered overextended.

Indicators Used / Timeframe

I will only be using the daily pivot point indicator with the central pivot point and S3 and R3 visible.  You can use it on any intraday timeframe, but I am using the 1 hour chart.

Overextended

An overextended price move is defined as a move that hits either the S3 or R3 pivot points.

Pairs Traded

I have traded this system in the past on the USDCAD, GPBCHF and the GBPJPY.  In this round of testing, I will be examining the how to improve this system with the GBPCHF.

Example

Here is a quick video explaining the trade.

Previous Results

The system works.  Check out my trading log (yes, it needs to be updated)…when I was doing really well in early 2010, it was because I was trading some form of the CTT.

Click here to continue reading Reconstruction of a Trading System – Part 1 of 3 >>

Metatrader Tutorial - Adding Price Levels to Fibonacci Retracements

If you use Fibonacci Retracements a lot, this tutorial may just be for you.  In a previous post, I showed you how to do this with a few screen shots and some written instructions.

Since then, I have become significantly more sophisticated (cough, cough) and I thought that I would do a video for [...]

INO TV Premium Review - Premium Trading Seminars

Today I am reviewing INO TV Premium.  They also have a free version of INO TV, but there are only 4 videos there.  You should definitely check it out, but I really wanted to see what the Premium product was all about.

First Impressions

Going in, I didn’t really know what to expect.  The INO TV website doesn’t really do a good job selling itself,  it is hard to tell how many videos are actually in the member website and why it is worth getting at a glance.

I got my login ID and password in my email inbox and proceeded to check it out.  The site is simple and straightforward, but you kind of have to dig to get to all the videos.  Not the most user friendly website in my opinion.

The first thing I noticed was the different channels on the right side sidebar.  There are channel from pretty much every area of trading. Here are the channels available at the time of this review:

As you can see, there is a great variety of videos out there to watch.  But my question was, how many videos are actually in each category?

Click here to continue reading INO TV Premium Review – Premium Trading Seminars >>

Metatrader Tutorial - How to Get Back to the Current Bar Immediately

Here is the quick Metatrader tip of the day.

Sometimes, you go back in the history of a chart to see what has happened in the past few days.  However, if you want to get back to the current bar quickly, it doesn’t always happen.  When you press the Auto Scroll button, it can [...]

How To Trade Trend And Range-Bound Days

Here is a link to an interview with trader Corey Rosenbloom.  He tells us how he trades both ranging and trending markets.  He trades equity index futures and I’m sure that his experiences can teach any trader a thing or two.

Of particular interest is his primary indicator, the 3/10, taught by Linda Raschke [...]

What is the ONE Thing That is Required to Become a Successful Trader?

Kathy Lien and Boris Schlossberg wrote a great book called Millionaire Traders.  It is an interview with several successful at-home traders from around the world and how they are able to make a living trading their respective markets.

I was watching this YouTube video and one thing really stuck out during the course of [...]

Beware of the Green Fairy

Run Away!

Green Fairies are scary.  I have put my trust in a few over the years and although I learned a lot of lessons, it has usually ended in heartache.

In the beginning, they are hard to resist.  The lure of their charms promise gorgeous sunrises and excite your imagination.  Their claims are fantastic and [...]