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  1. #1
    Administrator Martin Kay's Avatar

    The Floor Trader Strategy – Retracement and Continuation. Go with the Trend! !!!

    another great review by Bogdan, this time the floor trader strategy. I think every trader should adopt this strategy, including "experienced beginners".

    Originally posted by Bogdan G on bots.com school. Click here for the full review.

    Why the Floor Trader Strategy doesn’t suck?

    This strategy is based on one of the strongest principles of trading and that is “The trend is your friend”. And what better place to join the trend than after a retracement? From my experience, it gives accurate signals and they occur with a pretty high frequency so even the guys that want to trade a lot are satisfied. Multiple trades can be taken during a trend and this maximizes the profits, giving the trader big gains if all the signals are taken.


    Conclusion
    I might be subjective here, but the fact that I used this strategy and it worked for me, makes it one of my favorites. Some other filters could be needed to avoid the ranging markets and maybe the EMAs should be modified. The best way to know if the Floor Trader Strategy is for you is to test it on a demo account and get used to it. The decision to use it or not on a live account should be made after thorough back testing and forward testing. Don’t let all the rules discourage you from using it; good things come from hard work.

  2. #2
    Senior Member Grae's Avatar
    Candle formations continue to amaze. I see the logic, even for a simple chart. EMAs confirm that a trend prevails. If a candle forms lower that the previous in a bear run or higher in a bull, in the direction of the trend, it is a noteworthy development.

  3. #3
    Master Member Bogdan G's Avatar
    Quote Originally Posted by Grae View Post
    Candle formations continue to amaze. I see the logic, even for a simple chart. EMAs confirm that a trend prevails. If a candle forms lower that the previous in a bear run or higher in a bull, in the direction of the trend, it is a noteworthy development.
    Yes, after all it's a simple retracement then continuation move. Just like you say, the EMAs confirm the trend and then we buy a dip in price during an uptrend and vice-versa for a downtrend.

  4. #4
    Rookie Member

    EMA cross !!!

    During the retracement, is it important that the EMAs do NOT cross?

  5. #5
    Master Member Bogdan G's Avatar
    Quote Originally Posted by shinigami9830 View Post
    During the retracement, is it important that the EMAs do NOT cross?
    Oh, we have a Bleach fan? Nice to have you!
    Yes, it is very important that the EMAs do not cross. A cross in the opposite direction during the retracement would make the setup invalid.

    All the best

  6. #6
    Senior Member Grae's Avatar
    True. All ends covered on that shinigami9830!!!

  7. #7
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    I like conclusion. It is good to advise to practice on demo and to modify it according to ur own style.

    For traders using technical indicators to analyze market, MAs play VITAL part. Sometimes MAs r only used to assist in trend analysis and, rarely, can be used as a system.
    Bogdan explained 2-EMA strategy nicely. I think this much explanation is enough for even starters if they want to test this strategy.

  8. #8
    Master Member Bogdan G's Avatar
    Quote Originally Posted by M.J View Post
    I like conclusion. It is good to advise to practice on demo and to modify it according to ur own style.

    For traders using technical indicators to analyze market, MAs play VITAL part. Sometimes MAs r only used to assist in trend analysis and, rarely, can be used as a system.
    Bogdan explained 2-EMA strategy nicely. I think this much explanation is enough for even starters if they want to test this strategy.
    Thanks M.J! As a matter of fact, I consider that any strategy must go through 3 phases before using it live:
    Phase 1: bactesting with enough amount of data to get relevant results and percentages
    Phase 2: forward testing aka demo trading
    Phase 4: Live trading with very, very small amounts of money to learn to keep your emotions under control when using it in a live market environment
    If it passes these tests, I go on live with it with normal position size
    That's about it

  9. #9
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    Quote Originally Posted by Bogdan G View Post
    Thanks M.J! As a matter of fact, I consider that any strategy must go through 3 phases before using it live:
    Phase 1: bactesting with enough amount of data to get relevant results and percentages
    Phase 2: forward testing aka demo trading
    Phase 4: Live trading with very, very small amounts of money to learn to keep your emotions under control when using it in a live market environment
    If it passes these tests, I go on live with it with normal position size
    That's about it
    No doubt. A successful strategy will pass all these phases.
    Some developers, especially Scammers, usually stop at first step and start advertising backtest results as a proof of success. Simiarly there is a big difference in demo and live account. If a system passes successfully through both with equal or minor difference then it is ready for big money investments.

  10. #10
    Master Member Bogdan G's Avatar
    Quote Originally Posted by M.J View Post
    No doubt. A successful strategy will pass all these phases.
    Some developers, especially Scammers, usually stop at first step and start advertising backtest results as a proof of success. Simiarly there is a big difference in demo and live account. If a system passes successfully through both with equal or minor difference then it is ready for big money investments.
    Yeah, I agree about the scammers. They also boost their backtesting results to make it look even more impressive. Or some idiots just post 2-3 pictures with some trade entries and sell the system to you as the Holy Grail.

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