james16外汇交易法

1、TradingSystemTrading PlatformJames uses Tradestation, but as most of the tools trading tools, you can use any charting platformhe uses are common such as Metatrader.MarketsJamess methods can be used to trade most forex markets. On the forums the examples of trades are diverse and include, but are no

2、t limited to, markets such as GBP/USD,USD/CHF,NZD/JPY, EUR/JPY, etc.Time FramesJamesadvisesthatyou shouldtradedaily orweekly charts. However, manyof thereaderson theJames16threadpreferto tradethe 4 houror1 hourchartas it provides them withmore frequenttradingopportunities.Jamescautions againstthisas

3、 theentrypatternsare more reliableon highertime frames.EntriesJames focussesprimarilyon buyingthe dipin trends(James does notdeliberatelytrade againstthe trendas he believes thequalityof entryispoorer).Jamesuses priceaction(PA) around significantpriceson thechart to findhis entrypoints.These entryar

4、e based on a combinationof3 4 bar based reversalpatternsclusterednear pointsof confluence.The bar based patternsused forsetups include:InsidebarsPinbars(PB)Bullishoutsideverticalbars(BUOVB)Bearishoutsideverticalbars(BEOVB)Twobar matching lows withsecond bar making a higherclose(DBHLC)Two barmatching

5、highs withsecond bar making a lowercloseOf these setups the Pin bar or “PinocchioBar” is by far the most commonlyemployed entrymethod.The pinbar iseffectivea swing highor swing low.A good pinbarhas along nose (and a longnose relativetotheopen/close/low);a nose protrudinga longway fromthe pricesaroun

6、d it(it sticksout ) and the open /closeboth nearone end ofthe bar.Once we see this bar setup we look for areas of “confluence ” which is where two or more of the following are at/around the bar setup:Expontentialmoving averages (thereare verypopular)FibonaccilevelsSupport/ResistancepivotsPivotpoint/

7、Swing lows/highsTrend Linesare many but the150 and 365To illustrate how the pieces cometogether have a look at the following chart. The example entry is in the direction of the trend (bearish). pin bar has formed at a point of confluence between 2 different fibonacci retracement levels calculated fr

8、om 2 different highs.AExitsThe initialstopfor a position is generallyplaced 10 pipsabove the highbarintheentrypatternon a bearishentryor 10points below the lowestbaroftheentrypatternon a bullishentry.Forexample,have a look atthediagram below:Whena tradeis on, theJames16traderswillopen up 3 to4 small

9、 positionsand seek toclosethefirsttrade outas soon as a smallprofitislockedin and thenscale out of the remainder of the positionsas thepricemovesfurtherintheirfavor.The ultimatetargetis usuallysomethinglikeafibonacciextensionorsome otherfeatureon a chart.Othertradersonthe threadwilljusttraila stoplo

10、ss behind the entry.PositionSizingWhentrading using theJames16method most traderswill neverriskmorethe2 to3%on any one tradeand if theyever loosemore than30 35%oftheiraccount thentheystop tradingand go back and demotradefora while. PerformanceI have never traded this method myself, so I cannot comme

11、nt on the performance first hand. However, is an equity curve of pure james 16 trades by one ofthe list memberover an 8 month period.How Best toTrade ThisSystemIn describing his system Jamesacknowledges that two people can base their trading on the sametrading methods and one will lose and the other

12、 will win. The variables in trading are endless and therefore the outcomes can be quite different.Jamesadmonishes hisreaderthattotosucceed inthisbusinessnotonlydo you need a sound method you alsoneed commonsense,disciplineand arocksolidunderstandingthatifyou do nottreatthisas a businessyouhave a ZER

13、OCHANCEof long term success.After25 yearsof trading,James haslearnedthatonce youhave thesepieces in place,the differencebetween success and failureis:YOUSIMPLYMUSTLEARNTO BE PICKY ABOUTYOURENTRIES. James ispickytothepointthathe isalmost mentalabout it.The otherthingJames does ishe believesindemo tra

14、dingasitisanessentialtoolto provingtoyourselfyou areabletotradehismethods.The problem withmost demoaccount traders isthey donttakeitseriously.The way he takes thisseriouslyisthathe suggestsmaking a demotradingaccountsuitablylargeso thatyou can easilysee how a majorlosswouldreallyhurtbyhow much youea

15、rninyour currentdayjob.ClosingThoughtsYou mightbe wonderingwhy Iwrotethisarticle.Aftergoingaroundthetrapsa bitIoccasionallyrun intofulltimetraders.Inthelast12 monthsI have met 2 fulltimetraderswho have been tradinglive fora whileandsurvivedmore than a couple ofyearsand bothofthem trademethods basedon James 16s approach.Given this,Iw