How many emails do you get from marketeers of trading systems telling you how many pips their fantastic system made? I received three, this week alone. None of them said what the risk to reward values were on their trades - did they risk 100 pips to make 50? Or perhaps 200 to make 10? Who knows. They're just pip-braggers telling a meaningless story, in my very humble opinion.
What we really want to know, is what sort of return will we be getting on the investment of our trade risk. Take a look at the above pic - you'll see R levels that denote the risk/reward values of the trade I took; a late one on the DOW M5 (I don't usually trade so late in the week but didn't have much chance to trade during the day).. My target was the TZ1 level set by eWavesHarmonics; (eWH) and my Trade Levels indicator showed it was a 5:1 trade. We don't really care how many pips or points that is but getting a 5R trade opportunity is not to be sniffed at. For me, that trade opportunity was a 1% risk for a 5% return; for some it might be a 2% risk for a 10% return, etc.
This is the information that matters in trading - we're always looking for the best R:R trading opportunities. The Trade levels indicator that draws the R levels is available free to anyone with a valid Advanced Trade Manager (ATM) licence, on the installation page.
ATM and eWH Updates.
For the last few months I've been working on a new licence management system. This gives me the opportunity to do remote upgrades, so you don't need to keep checking for the latest version (I haven't tested it yet but the theory is great). The PC Code licence management is also much improved, so you don't need to send me the PC Code of your computer (if that's the type of licence that you have) or worry about Windows upgrades changing the code. Existing ATM and eWH licence holders: please download the latest versions when you get the chance. The old ATM should be deleted before installing the new. When everyone has transferred to the new licence system, I can set about adding some new features that I'm certain you will enjoy.
A note about the chart picture above. Don't ask me what the stars are - this is something that I've been working on with Grant, with the intention of generating some trade alerts for when you're not paying attention. It's still very much in development. The reasons for entering the trade are explained in the training course. Some of you might recognise that there was a P5 setup at blue TZ1 W3 supply on the M1 chart - a terrific reason to go short. You can check for yourself, on your charts, how well that trade worked, if you're interested - I'm not going to be a pip bragger :).
I haven't done an example of eWavesHarmonics in action for a while, so here's a fine one from yesterday. Before the London Open, a few trading friends and I discussed how the likely target for DOW was 24,287. The prediction was made where the blue arrow is shown in the picture.
It took the best part of the day to get there but sure enough, the target was hit and even surpassed a little. 350 points profit for about 70 points risk - a 5R return for those lucky enough to have traded it.
How did we get that target? We just looked at the Target Zone 1 that eWavesHarmonics (eWH) plotted on the hourly chart. With some practical understanding of price action, as discussed in the free training course, it was a high-probability prediction as to where price would be heading for the day.
Trading doesn't have to be complicated and charts don't need to be cluttered. Just keep it simple and read what price is telling you, with a little help from eWH of course.
Where next? That red TZ1 looks very tempting ... ;)
I've just created a new web page that some MT4 users might find helpful - the idea came from repeatedly telling people how to do web screenshots or where to copy their indicators to, then expanded to include some other useful tips.
I'll add some more in the future but please let me know if you think I've missed any really good tips in this first release; I'll be happy to include them.
The new page can be found at: https://www.for-exe.com/mt4tips.html
Once in a blue moon, I get an email from a dissatisfied customer. The dissatisfaction always derives from either: ignorance, by not bothering to learn something (things that are often covered by the published manuals or videos, for example); or because the individual is looking for the holy grail of trading tools where no thought is required to turn $1 into a million in a few weeks. OK, perhaps that’s stretching things, but you get my point.
For the sake of complete openness, I share an email from one such dissatisfied customer, if for no other reason than to deter those in search of the holy-grail-don’t-need-think-approach to trading to not bother getting anything from my website.
Here’s what was written, verbatim, from O Tejeda (I will respect some degree of right to privacy by not publishing his first name).
“Hi Steve the software you selling is worthless for me i am a learning day trader i study the classes but there are no clear explanation how the system really work to many back history but nothing to show the program working in real live the bigger problem with the software is that the smile face repaint too much for example i use it in one minute and five minute and daily the smile face repaint more than ten times. In other world we never know when we have to enter or exit the market. if the software is used in one hr It is very hard to see a happy face, another thing that change a lot is the e-wave numbers It is really confusing. now i now why you do not have video in you tube doing some trading alive it is because you know if you really show how the software work no body will by it. So i feel that you are another scammer saling worthless material online to steal our hard working money. so please the only thing i would like from you is my money back. thank you.”
As anyone who has known me for the last 5 years or so, since I started with this website, the last thing that I am is a scammer. Receiving emails like above is not only incredibly offensive to me, it’s terribly sad. This noob trader will most-likely continue a futile quest for the holy grail and undoubtedly will spend much much more “hard working money” on real scammers. It is very unlikely that success will ever be found.
Trading is NOT an easy thing to master. It takes a lot of time, experience, patience and discipline. Any website that tells you differently is most likely a scam.
Thankfully, there are many more satisfied traders using eWavesHarmonics (or just the original eWaves) and their emails reporting success are frequent and gratefully received. At the end of the day though, only YOU can make a success of trading. The greatest trading products in the world are worthless in the hands of the insane.
This is a bit like the chicken-and-the-egg question: which came first? For traders of Forex and other instruments, what is the first thing you look for: a good entry or a good place to take profits?
I’ll make an educated guess that the majority of retail traders, including readers of this blog post, look for good entries before considering anything else. That educated guess is formed from the number of requests I receive, asking for me to code indicators or robots using a combination of squiggly line indicators (like moving averages and oscillators). How many of you have toiled for weeks or months, or even years, trying different combinations and settings of indicators in the fruitless search for perfect trade entries? You think you find the holy-grail of entries only to then see consolidation periods destroy your account … back to the drawing board you go. A recent request for a squiggly-line-combo system inspired the writing of this blog post, I wrote something similar a few years back.
Now for another educated guess: the majority of professional traders carefully consider where price might be going to, as well as where it might find resistance, long before they’re thinking about entries. Professional technical analysts will look at a confluence of factors: supply and demand, support and resistance, Fibonacci expansions and extensions, harmonic projections, etc.; and not forgetting eWaves target zones of course. The pro’ traders will have a pretty good idea of the price magnets and probable sticking points; on current and higher timeframes, before they’re ready to commit their funds to a trade (all this is explained in the Free Forex Trading Course).
You start a journey knowing where you are going to; you don’t just get in your car and drive, without a destination and plan for getting there (unless you’re just out for the fun of driving).
If you really must use your super-duper-magic-combination of squiggly line indicators for entering a trade, use them to get the best risk:reward entry to trade in the predetermined direction to a predetermined price level. Don’t use them if you have no idea where price might be heading to. You should never find yourself doing stop-and-reverse trades this way: the undisciplined trader’s approach to destroying accounts in double-quick time. You don’t change your mind on the direction of the market because one trade goes against you; if you do, then you seriously need to take a long hard look at the charts again, to see why your previous bias was so wrong and to qualify the new bias, before you place another trade.
Your take-profit levels should ideally be the strongest price magnets that offer the path of least resistance. Once you have identified those levels, you can look for entries that offer an acceptable return on your risk: ideally more than 2 to 1, so you don’t have to be right more than 50% of the time, to make a nice profit in a month.
So what should come first (in a trader’s mind): the entry or the exit? eWavesHarmonics provides for both. switch to a higher timeframe of your choice, make your own copies of the plotted levels, relatively near to the current price (add the word ‘KEEP’ to the object names, so the ‘Clean’ button doesn’t delete them), switch back to your preferred timeframe and plan your trades.
Trading doesn’t need to be a stressful random act.
I've added a couple of extra videos to the Trader Training course that show every W5 that hit Target Zone 1 (TZ1) on: -
By carefully reviewing all the slides and noting: -
These videos are only available to traders who have signed up for the course (still free for owners of current eWH and ATM licences). You can get more information on the free forex trading course here, if you haven't signed up already.
That time of year is nearly upon us already - a time for family and celebration, regardless of your faith and beliefs; and a time to take a break from trading, As with every year that passes, this one seems to have passed by quicker than the last but I feel like a lot has been achieved, except for the fully-automated hands-off robot that I intend to complete as part of my New Year's resolutions; perhaps next year ...
As a thank-you for all your support this year, I've created a new indicator that I hope you'll find useful and am sharing for free. It's called the Snorm Indi Panel and is intended to provide an at-a-glance view of any signals that your favourite (compatible) indicator shows - it will only work with indicators that use the MetaTrader buffers; like the Auto trading mode of ATM; it won't work with eWavesHarmonics, for example, but I've got another plan for that.
Choose your reference indicator, tell the Indi Panel what buffers to use, set the symbols and colour options and you should get something like below ... (this shows two panels working together, for pin bars and engulfing bars).
The Indi Panel will check for indicator signals on all open charts - you don't need to load the reference indicator on to all the charts, if you don't want to. You can click on the chart name to open your chosen chart and select a timeframe to change all open charts to the same. Even if you don't want signals from reference indicators, you might find the easy chart and timeframe navigation to be useful.
There is a YouTube video that explains all the options and shows you how to set it up - just go to the free stuff page to view that and download the indicator; I've included a couple of reference indicators and templates, as per the picture, in the download file.
I wish you and yours a very merry Christmas and a most prosperous pip-filled 2018.
A number of people have reported problems with their MetaTrader on high-resolution monitors this week (e.g. on 4k screens), following a Windows 10 upgrade; buttons, in particular, don't display well.
The fix is quite simple (easier than my previous blog post on this subject): -
All should be good again :)
More info on scaling for high-DPI devices can be found on the MS website
Do you find it a bit of a chore to record all your trades in a journal?
Would you like an easy way to do it, or even have it done automatically for you?
Well, now you can with the Snorm Trade Logger - only available to owners of the Advance Trade Manager..
Version 1 is available for download from the ATM download page. I've done some quick testing with it but would welcome feedback and (reasonable) suggestions for improvement.
The Advanced Trade Manager (ATM) has had quite a significant upgrade this week: the ‘swing’ lines can now be moved to your chosen price levels, for entries and stops; you can even use them for limit orders. Just move the swing line and it will change from dashed to solid, telling the program to not auto-adjust when new swings are formed. ATM will automatically calculate your position size on the manual swing levels and perform the required trade action when price hits that level.
eWavesHarmonics (eWH) has benefited from quite a few enhancements, since the last release, including: -
The upgrades for ATM and eWH are available to download now, from their installation pages. More upgrades on both products are planned soon; there are lots of ideas brewing.
The ‘Trader Training’ course is still available for free, to anyone with both eWH and ATM licences. If you have gone through the course material, I hope you got that terrific 100 pip W4 TLB trade on GBPUSD H1 on Wednesday, all the way to TZ1. If you missed the first chance, price gave you a second opportunity the next day when it tested the original entry level with an MTLB (and that’s why we don’t move our stops until the entry has been tested).
Snorm trades only with GKFX and has no hesitation in recommending them, for tight fixed spreads and quick execution (even during NFP, from personal experience).
Open an account here