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[HC]

This is a session I did in 2010-02-19's afternoon, I was caught on the wrong side and flipped, get out at slightly above BE.  I post this trade to share how I unhedge locked positions to gain some pips.

Pair: EURUSD, M5 Chart:

Observation:  prevailing trend of EU is down, and EU repeatedly threatening the support 1.3457.  After seeing lower highs and 48 SMA cranking down, I went short.

S 1x1.3470 scout deploy on pull back after testing support at 1.3457
B 3x1.3498 flipped after seeing break of significant high before the congestion zone
S 1x1.3503 price stalled, reduce flip size and lock in part profit.
S 1x1.3513 reduce flip size to fully hedged at -8 pips, this is the amt I would lost if I close them, regardless of where price go.

But after I let the hedged position move with price, an opportunity popped up as price moved back to 12 SMA and did a small reversal up.  I unhedged my position by closing the original short scout (thus +1), leave the long leg now unhedge and position for a long trade.

B 1x1.3500 close short leg of hedge positions
S 1x1.3510 price stall when hitting last significant high, close session to reassess

(Note: If price will to propel above last significant high in one quick trust, I may continue to trade on the long side, and managed from there.  But price did not, so I stopped and get out.  Price later moved up again, but I was not around to trade them)

Session Profit: 2 Pips
Open drawdown: 30+- pips

[FF]

HC,

the flipping makes more sense to me instead of keep deploying more troops for rescue.
Just imagine if you keep your rescue operation and this would means, you're fighting the market all the way (my personal opinion).
Therefore I still can't comprehend a rescue operation in a wrong trend.

If I look at your trade they're mostly within 1 or 2 hours at max.
I see one of the fti posting:

http://www.forexfactory.com/showpost.php?p=1812643&postcount=947

If you look at 1st trade, it takes him 8 hours to close.
If that is taking him so long, he could have gone through many cycles of rescue or attack operations.

[HC]

dax:

You are right, when against trend, don't rescue.  Cut if you must, flip if you can.

BUT what if you are not against the trend, just that scout entry timing is out? Eg: the hypothetical entry marked at chart attached (this is actual chart that continues from my session 2010-02-18) ?  Flipping get caught at both end.

Trend can be vary obvious when it run its course, but when it is still developing, I cannot be sure.

[HC]

dax:

I saw your question about the numbers of hours in each trading session in FF, and thought that maybe fti or someone more experienced there would be able to provide a better answer.  Since no one has, so here are my thought.

1. I don't choose the nos of hours per session.  Market decides.  I just react to want the price moved.  There are many session that are just pure scalping with no attack or rescue if I don't see price will extend after my entries.

2. That said, however, I try no not to do too many attack/rescue.  The reason is that I do mostly Asia and UK trading time, and the price move during these period is usually not as big as that of US session.  So the adding of entries has to take this into consideration.

3. Another reason I did not leave the session too long is because of my lack of trading skill, my risk appetite, my mind set and my inability to babysit positions round the clock.

[HC]

This is the session I did this morning:

Pair: EURUSD, M5 Chart:

S 1x1.3629 scout deploy on break MA & pull back from false breakup
S 2x1.3620 attack
B 2x1.3619 attack removed price action don't look right
S 2x1.3622 attack on resumption of down move
B 2x1.3612 attack removed as momentum stalled at support
B 0.5x1.3603 close 1/2 scout to see how it goes
B 0.5x1.3607 close remaining 1/2 scout as reversal candle seen.

Session Profit: 46 Pips
Open drawdown: 8+- pips

Session Review:
Removal of attact at 1.3612 is too premature, as no reversal sign seen. 

[FF]

Hi HC,

thanks for above explanation.
I was just too busy and have not been monitoring forex lately.
I'm stucked halfway learning this method. Will start reading again

[HC]

These are 2 sessions I just did:

Today there is a major news release tonight: non farm employment change.  Typically market is range bound during the day time before this figure release.  So though the main trend is down, I got to be careful, don't get too aggressive.

Pair: EURUSD, M5 Chart:

Session 1:

S 1x1.3582 short scout deployed for range trade, direction as per prevailing main trend
B 1x1.3576 close at bottom of range

Session Profit: 6 Pips
Open drawdown: 2+- pips


Session 2:

S 1x1.3593 short scout redeploy, thinking it is a false break up
S 1x1.3598 rescue, size did not increase as it is too close to scout
B 1x1.3591 close scout at small profit, leave rescue as scout, use profit as buffer
S 1x1.3589 attack on break of congestion zone
B 1x1.3574 close attack at low of range
S 1x1.3573 attack again, thinking that the sweep of stop will move price further down
S 1x1.3582 rescue/attack when retracement halted
B 1x1.3579 close attack as price don't make a lower low
B 1x1.3575 close 1 more positions to play safe
B 1x1.3577 close last position as price is coiling up into a possible triangle formation

Session Profit: 39 Pips
Open drawdown: 11+- pips

Session Note:
This is an example that the time required in a trading cycle can be much longer than my usual 1-2 hours; it all depends on the price action and as a trader I can only manage from there but cannot pre-determine.

[HC]

Here is an updated chart, immediately follows my previous post.

Notice the constant monitoring of position let me get out with a profit of 45 pips, while price is now above my session 1 short entry price 1.3582.

If I will to do normal entry, and setting fixed take profit and stop loss and leave it there, this is what likely to happen:

Short at 1.3582
TP at 1.3570 (last significant low)
SL at 1.3592 (last significant high) + 10 pip (buffer)=1.3602.
I will get stopped out at a loss of 20 pips (or 10 pips if no buffer is given to SL).

Notice also session 2 the total pips swung is 33 pips only, while I was able to squeeze 39 pips out - considering I still make mistake in the 2nd attack.

[FF]

Hi HC,

you're doing well.
I did try to have "rescue" however the trade went against me and I can't rescue the scout plus the loss keeps balooning.

Probably I'm still poor with the concept.
A little frustrated now 

[HC]

Hi HC,

you're doing well.
I did try to have "rescue" however the trade went against me and I can't rescue the scout plus the loss keeps balooning.

Probably I'm still poor with the concept.
A little frustrated now 

dax:

Please practise more on demo account.  There is no substitution for actual screen time.

Also, try to mis-timed a few entries/rescues against the trend to the extend of blowing a demo account to understand the risk.

[HC]

In trading, stability of mind set is very important.  Especially when we are dealing with real time chart and trading a short time frame: decision has to be made fast.

This is a trade I did 2 days ago, to show the my inability to keep a stable mind had jeopardized my trading plan.

Pair: EURUSD, M5 Chart:

After a long congestion zone trading, I was looking for a breakout trade, since the prevailing trend is up, I prefer to trading the upside breakout. And since price is very close to 1.3800, where I think there must be quite a few round number stops just a above this level and it is likely there will be a stop sweep that carry the price above 1.3800.  If the trend continues above 1.3800, good and I will manage from there, but at least I am looking for a stop sweep.

B 1x1.3786 scout in, thinking that the BO trading is in.
B 1x1.3778 rescue, size reduce as it is too close to scout
B 1.1.3790 attack on BO again

Then, I received a call that need my immediate attention on matter that is not very pleasant.  My mood dived while talking over the phone, and after seeing price stalled a little and did not rally immediately while still on the phone, I aborted my plan and exit all my positions at as I got no mood to trade:

S 1x1.3791
S 2x1.3790

Session Profit: 17 Pips
Open drawdown: 12+- pips

On hindsight, there is no lower low or whatever reversal sign at the point of my exit, and the sweep did carry price above 1.3800.  In fact there is an attack opportunity immediately just above the bar I exited (break above the small black candle high).

But my instability of my mind had made me miss that profit.

PS: I am not complaining, but just to share a real live example that as a trader, we are faced with various kind of disturbance.

[HC]

For those who think that fti's teaching is difficult to understand, try this:

http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/

 

[HC]

Here is an trading journal by someone called dongsky:

http://www.forexfactory.com/showthread.php?t=237739

He is not doing as many levels of attacks as fti, only scout + 2 levels mostly.  But his result is good.

[FF]

Hi HC,

I'm back after reading more of fti's thread.
I try to change my nick to FF nick but there is some problem with activation. Already sent email to you.

I hope we can discuss more about this strategy while I keep continue reading the thread.

[incrediblefx]

Hi..

anyone has idea why leighsww the pioneer of TAF discussion no more found in the forum?
By the way she also had a journal which she never updated. In the journal she created a system based on FTI method of MM. Seems it the result was fantastic.
http://www.forexfactory.com/showthread.php?t=54847&page=6