4H (Fozzy) Trading Devolopment Journal
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Thread: 4H (Fozzy) Trading Devolopment Journal

  1. #1
    Hey Guys,
    its Marc from Germany!


    I just needed to begin this thread now, as I'm very stuck with my own trading.

    To start with, I am just demoing all of this transactions!
    Second, PLEASE PLEASE, if you post into this thread, than take action favorably (not something like: I'm better, you are wrong!)
    Third, I'm trying to tune up my egy because I wish to filter out wrong signals.
    And lastly, this is an all technical egy. Fundamentals aren't considered (except major news I stay aside)


    Okay, allow me to begin with describing the egy. I derived it from the Fozzy Daily Method (BIG BIG Due to Fozzy!)

    Chart Setup:

    RSI8 with MA8 over it.
    50 SMA (like Trend Indior)

    on a 4h chart
    Pairs: GBP/USD, EUR/USD, GBP/JPY,

    Thats it. Really this is the initial situation.

    Buy Signal: RSI crosses the MA up
    Quotation Signal: RSI corsses MA downward

    aditionally, major supportresistance lines (horizontally) and fibonaccis (derived from MAJOR swings from daily/weekly charts) allow me to identify reversals (to stay out of transactions )


    Alone with this, I dobubled one 5k demo account. Problem: I suppose it was luck (I'm from pessimistical character )


    PROBLEM:
    I use this (4h!) Method only to ch about 40 pips (if I need or not). That is achieved easily and it goes.
    Largely, the following 1-2 bars following the cross are moving in my direction (90%) and flip around after. BUT occasionally it goes in my way )

    As I am rather engaged in obtaining a higher percentage I need one or maximum two more indiors, which help me to determine poor trades.


    I attempted the following:

    Trade in direction of the trend: Nope, did not work out for me. In fact, the trend is not MY buddy

    Sell only when Stochastics are overbought and vice versa: Ran quite well, but also few transactions ( I need about 5-8 trades each week)

    Buy only when candles are above bollinger bands middle (and vice versa): Nope, again it did not work.

    Parabolic SAR (buy when below price and vice versa)I thought that is great... but I wasn't so satisfied wit hsome transactions (maybe adjustable when entering following a RSI/MA cross..we´ll watch )



    Exit: S/L on 5% of account together with 1 lot (using 5k account)
    or/and at fibo/suppresistance levels
    or occasionally when RSI/MA cross in the other direction


    Okay, what has to be corrected?
    1.) Filter for bad trades

    that is where you run into play. Maybe you can help me to obtain a fitting indior which matches my egy (maybe something with volume or cycles)

    2.) EXIT! I guess I have to rely on trendlines, fibos etc





    Current activity:
    Trying as filter: ADX14: DI line above -DI only buy
    and when -DI above DI -Y only sell

    and asking myself: awaiting second candle to open or entering trade immediately after cross
    suppose when situation is uncertain, waiting is much better. However, while volume and strenght is large one can combine a transaction when rsi/ma cross


    I will further post my transactions, and I did it. Additionally, I will post my opinion about sup/res lines and fibos.


    ______
    The film was created fast. Revealing how action appears. The item in the top richt corner is an signal bar indior found in this forum.

  2. #2
    E/U revealed a downward cross

    however, the following kept me out (listed by priority)

    1. .50 fibo
    2. Low volume
    3. price above Parabolic SAR
    4. Flat tendency (can be interpreted as little reversal, also )


    I believe volume is a rather great filter. Additionally, price action comes into play not only when setting S/L and T/P levels.

    I expect I find out some more later on...

    edit:
    today I combined E/U short. Simply because macd (which I added as filter) confirmed.
    I am still unsure because RSI and MA are so close together.

    However, in the money for today...

    edit:

    closed with 8 pips ^^

    volume is out and I believe it kind of connected to this news 45minutes ago...

  3. #3
    GBP/USD short transaction for 30 pips.

    Reason: RSI/MA cross, 1.5 level bounce

    didn't believe: sms50trend and atr(14)


    leave as a result of fibo level



    additional atr14 for momentum. . .wait what it brings

  4. #4
    EUR/USD brief for 40 pips

    see chart


    SL and TP place in the round amounts 1.23000 and 1.24000

    Entry because:

    - RSI/MA cross
    - trendbars are red for shorter timeframes
    - had a few more confidence because of crossing the 50sma and a bounce off by the round number 1.24000 a while past


    was a more agressive way as a result of low volatility (atr is downward ) and horizontal 50sma (for the longer fad )
    no parabolic sar service (this indior means less and less to me) BUT it could have indied to stay in the tendency



    here's the exit problem. I could have remained in the tendency still now, since the e/u remains going south, but I am out because of a fibo resistance (which was actually no resistance since it didn't retraced there...) (*thought: move cease to BE and/or take 50% of this trade out to be in the money)

    I figure I´ll spend the next hours finding good exit parameters. . Somebody may have an idea?

  5. #5
    initial improvement:

    deleting ADX and incorporating volumes.

    Entering a trade ONLY if volume is above 5000 or something (still backtesting)

    further with the example: viewing gbp/usd heading into 1.5 and awaiting a reversal there (for some bars) rebound

    volume appears to help. . I´ll see. .

    Kep in mind, that there aren't S/R and fibos on the chart... so not 100% correct

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