I think one other thing you need to work on with this method is how are you going to exit? In other words, come up with a solid exiting strategy.
From the people I have spoken to who have taken the EA course, they have all said the same thing. The exits are very discretionary, and if you keep changing your strategy, you will get burned.
This is the problem that I have with the vendor's videos on his blog. If you notice, he ALWAYS exits the trades at the best possible location, and this is unrealistic. He's got about 10 different points of exit, but yet he always manages to pick the right one. This is where the method becomes flawed in my opinion.
Let me explain...
If you watch his videos, these are his exits spots. Sometimes it's the 61% Fib Ext., sometimes it's the 100% Fib Ext, sometimes it's the Outer band, other times it's the TML. Sometimes it's a support or resistance level, sometimes it's when the MACD BB's show him divergence. Have I covered them all yet? There might even be a few I am forgetting. Oh, and sometimes he exits the trade on his full amount of contracts and other times he exits half of them, and let's the other half run.
The point here is, how does he know which one to pick? It is my opinion that he does not trade this strategy, and does NOT know which one to pick either. This is why it's easy to sell the course, and on the videos show the best possible exit point. Then newbies look at the video and think this guy is awesome, when in reality it is not possible to exit this way in real time.
So basically, my suggestion to you would be to come up with a plan and stick to it. That will be the only way you will really figure out if this method is working for you.
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CT is for beginers with fixed 2 pts. profit and I tried to use it but a lot of times it would touch my profit target and revers. That's why I'm trying to exit if I see price reversing.
With BT (base line) you trailing your stop behind TML or MB or any other S/R lines. You can also move your stop after higher low/ lower high when it makes new higher high/ lower low. I've seen him also trail stop loss 2-3 ticks away after it ran over 62% extantion. He call it squeezing the price.
MT as I understand from videos when you add to you position at pull backs and then exit at 100% target.
I saw also he takes half of the position out at pull back with divergence and second half get stopped or runs for bigger profit if divergence gets broken. Some times he takes all off that out at divergence.
The outer band usually 62% (first target) if market moves. That's why he talks about outer band as a fist profit target.
Also I've heard them talking that after 38% retrasement it runs to 100% extantion. I believe 50% work the same way.
That's a lot of management for me and I usually over manage my trades. I know that I should come up with one strategy that works for me but I didn't find anything yet. My problem is that I'm jumping from one strategy to another and cannot stick with just one plan. I'll work on it and hopefully find something soon that works for me well.
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I've been thinking about exit strategy for my method over the weekend and also about reversal entries. EA don't take any reversal trades and they take only continuation trades from the MB. So I didn't really have any rules made for entries and I couldn't use fib extantion for exits. I had to come up with the system that gets all of those trade with the same exit rules.
Another thing I was thinking about was entries. Last week market was really slow and I didn't have a lot of signals with EA strategy. Even this morning I attended a free class with EA and according to their software we had one signal marked at the chart but that didn't have an entry pattern and second one didn't have RvR ratio. So looking at the ES chart you can see that this morning we had 3-4 points movements and we didn't have any valid entry signals. They said that market was just choppy and it didn't respect their areas.
So I had to come up with my own areas and my own rules.
I replaced TML with trigerlines (80;20) and I added swing indicator that shows me highs and lows that gives me a reason to move my stop loss or just close my position.
I tried it today and I made 6.25 points with the "choppy market" like they said. I've made video with my trades and I'll add link when it's done uploading.
Hey guys somebody could help me, how can i use these trigger lines? One is 80 and the other one is 20? I liked that chart, but i dont know how to this set up, and i am not understanding the entry points.... Thanks,
well, these webinars are sales pitches so they are not going to let you spoil/scare a group's potential buyers. Chris is a skillful salesman. My comments are not about the product, though, as I do know it enough to comment. However, as per vovan's comments, there are enough hints on the internet to come up with a similar, if not the same system. Then, you have to trust to trade it and that is the most difficult part.
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I think they are getting a bit desperate. I received an offer to pay half of the price advertised during the webinars, around 2000$. Of course with the usual salesman BS that I'm one of the few selected and the order expires in 32 hours, complete with a ticking clock. Turns out that clock resets daily. I'll just wait a few months if they slash it to 10$ I'm in.
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This is what I'm gonna say. I really thought about buying their software a while ago. Then I started to look around trying to find something similar. When you are new to trading their system seems very attractive. Nice software that shows you entries. Don't have to think a lot, just buy it and start making money.
I didn't know a lot about trading so I was trying to find some rules or magic indicators. Now I can tell you that their system is nothing but taking trades from 55EMA.
They use EMA based Keltner (Mid Band = 55EMA). There is one in download section made by @FatTails. That one even better because you can change MAs. You don't even need outer bands because they never take counter-trend trades. So just 55EMA would be enough.
I'm not sure why they are using MACDBB. Probably to make it look more complicated. I've never heard them saying anything about Bolinger Bands. All they are looking at is location of MACD and divergences. You can download MACDBBlines made by @FatTails (again) or regular MACD can give you the same information.
TML was a biggest secret for me but it's just a LinReg(89). It changes color when it crossed by 52EMA of that LinReg. For that purpose you can use TriggerLines made by the same guy.
So if you wanna see if it work just take trades from 55EMA and get target from Fib Extensions.
How much do you think everything that I just said worth? Would you pay me $2000?
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