Euro Chat with Joe Ross

Chat log from: Thursday, April 5, 2007
Giuseppe joined.
joeross joined.
crosten joined.
Giuseppe hi joe
joeross Hi
joeross It's time to start.
crosten Joe can u comment on what happen today on the EUR-USD and the currency market?
joeross How is the trading, Giuseppe?
Giuseppe It's ok Joe!
Giuseppe Joe, I tried to send you an email but I did not have answers
joeross crosten: I haven't looked at the currency markets today. We are doing a major FTP upload and I cannot use up the bandwidth.
joeross Giuseppe: Where did you send it? Resend to support@tradingeducators.com
Giuseppe ah...
Giuseppe Ok. I will send you an email. I'd share with you my new method on the DAX
joeross I will be glad to get it.
joeross How are you doing with the bonds
Giuseppe I'd like to receive some comments from you.
Giuseppe As your bond method, there is up and down month.
joeross Giuseppe, I heard that you have made some good modifications.
Giuseppe Yes and I made more profits :-)
joeross Giuseppe: You never told me what changes you made.
Giuseppe But it is based on your principles so these months it is not so good.
Giuseppe :-)
crosten Joe did you trade today and will you be trading tomorrow?
Giuseppe Joe, I found a little modification that multiply the profit, it is really simple.
joeross crosten I am in a trade in the Easy Bonds. It will probably complete tomorrow.
joeross Giuseppe: Please tell me in an email. I will not reveal it to anyone.
Giuseppe ok.
crosten Joe you have an open position going into the no farm? Aren't you scared?
Giuseppe Anyway. as I said before...when easy bond method not work my method not work.
joeross crosten: I am not scared. If you don't trade ahead of reports you will never trade.
joeross Giuseppe: The easy bonds have been red hot lately. I have made a lot with them.
Giuseppe Yes I know.
Giuseppe But from June 2006, it is not the same.
crosten Brave one, why are confident having an open position going into the non farm?
joeross Giuseppe: All methods have their dry times.
Giuseppe Yes yes I know it.
Giuseppe It is normal.

joeross

 

 crosten: Because I have my management in place and I have faith in what I am doing. When you have a method that works 79.5% of the time all you have to do is believe in it, and do what the method calls for.
joeross I have never been hurt by the easy bond method, but there have been times when it is not working and so I don't trade it.
joeross crosten: when one method is not working, I trade a different method.
Giuseppe Yes. Anyway easy bond method is the greatest invention after the wheel.
crosten Joe why does the easy requires you to hold overnight?
crosten I mean easy bond?
joeross crosten: That is not a very good question. It requires you to hold overnight because that is what the method is all about.
crosten Is it because of profit objective Joe?
joeross crosten: You get an idea for a method and you test it. If it works best by holding overnight, then that's what you do.
crosten Joe, why does central bank sell gold?

joeross

 

 crosten: when are you going to realize what I have said in these chats: A method works entirely upon statistical probability. It has no logic or rationale behind it. It has nothing to do with "because of the profit objective."
joeross crosten: Central banks sell gold to protect their counterfeit paper money.
crosten Joe, of all your methods which one is very stable and consistent on a monthly basis including the method that you teach at your seminar?
joeross crosten: every month it is different. There is no answer to your question.
crosten I mean why does the central bank accumulate gold and later sell them? Is it a requirement for them to buy and sell gold?
joeross crosten: They sell gold to depress the price of gold. It is not a requirement.
crosten But there is only so much they can sell.
crosten Gold just broke up to the 670 level.
joeross crosten: That is correct, and when they have no more to sell, gold will go very high.
crosten Joe regarding your method does the profit objective changes or is it fix?
joeross crosten: the profit objective is fixed.

Giuseppe

 

 Joe, I just made a test on TradeNavigator. on 2 years data my modified method make 3 time profit. Tonight I sent you an email with new method and easy bond method modified.
crosten Joe which is your favorite method?
joeross Giuseppe: Thanks Giuseppe.
joeross crosten: Easy Bond method is my favorite.
Giuseppe I never thank you for easy bond method
joeross Giuseppe: I'm glad you have made lots of money with it.
joeross Giuseppe: I have too.
crosten Joe how did you come out with the idea of using statistical probability to trade? Can you give some suggestion on how to build one from scratch?
joeross crosten: Andy will be giving a seminar in Europe later this year that will teach people how to find and develop a method.
joeross It will be given in Germany.
Giuseppe I am sure that you have seen this solution, it is really simply, but I don't know why you don't apply it.

joeross

 

 crosten: All methods and all mechanical trading systems use statistical probability. I did not come up with the idea. That's simply the way methods work.
joeross Giuseppe: Maybe I have applied it and don't realize it.
joeross All I know is that I win with the easy bond method.
crosten Joe, do you have any recommended book that i can read on statistical probability ?
joeross I put in my trade and I don't have to sit and watch it all day.
joeross Once all my orders are structured and in the market, I just let it do its thing.
joeross crosten: I don't have any book like that.
crosten Joe how many contracts do you normally day trade ?
joeross crosten: There must be thousands of books on statistical probability for sale.
joeross crosten: How many contracts I trade is not any of your business.
Giuseppe Yes. when I will send the emails you can comment my modification and said me why you don't apply it. Or if you applied it and did not work. ok?
crosten How do you figure out how much contract to day trade?
joeross Giuseppe: ok I will tell you for sure.
crosten Joe can you recommend a mechanical trading system?
Giuseppe Joe. What is the maximum lots number tradable on TBond (to not alter the market). 500, 1000?

joeross

 

 crosten: knowing how many contracts to trade has a lot of variables. Those are covered in our seminars. I cannot possibly go into that on the chat or in an email.
joeross crosten: I cannot and do not recommend any mechanical trading systems. I am completely against them.
crosten But your method is a form of mechanical trading system?
joeross Giuseppe: That is a tough question, and I really don't know the answer. I'm sure you could do 1,000 and not move the market. But I am only guessing.
Giuseppe Ok thanks.
joeross Giuseppe: It would also depend on the time of day and whether or not there is a report coming out.
joeross crosten: You just showed that you know nothing about methods vs mechanical systems. You need to educate yourself. There is a vast difference.
Giuseppe crosten. Joe give you a method, an idea, you can (have) develop it. Joe don't sell trading system.
crosten Joe what traders magazine do you read?
joeross Giuseppe: Thanks for telling him that.
joeross crosten: Only one and I get it for free: It is called "Your Trading Edge."
joeross I would not pay 2 cents for any trading magazine.
crosten Joe, do you still trade Ross hooks, ledges etc.?
joeross crosten: I have always traded and still do trade the Ross hooks, ledges, etc.
Giuseppe Joe. Do you know there is a web site/newsletter named Trader's Notebook ?
joeross Giuseppe: Yes, it is published by Trading Educators, maybe you have heard of them? :) Andy Jordan writes it every day.
crosten yes i do
joeross The website is www.spread-trading.com. It has spread trades and position trades. Excellent money-making newsletter.
Giuseppe there is another one with the same name.
crosten Joe do you keep an equity curve of your spread trades that is in the Traders Notebook?
joeross Giuseppe: There used to be one written a long time ago, called "Trader's Notebook" but I don't know if it is still around. Notice the " ' " in the name TRADER ' S
joeross I am trying to think of the name of the guy who wrote it, but it does not come back to my mind.
Giuseppe Yes Trader's
joeross He gave trades for day traders, and long and short term position traders.
joeross I will try to think of who it was and if I remember I will let you know.
joeross He was a guy who lived in Montana, but then moved to a better climate in California
crosten Joe do you analyze the COT?
crosten And how important is it to you
joeross crosten: I don't analyze the COT, and it is not important to me.
Giuseppe Michael James wrote on the web site
crosten Joe regarding the trades in the traders notebook, do you keep an equity curve of it?
joeross crosten: COT is not at all important to me, but it is to Andy for position trades.
joeross Giuseppe: Michael James is not the guy I'm thinking of
joeross crosten: I don't keep any statistics about the trades in traders notebook. Whatever statistics, if any that are kept, are up to Andy.
crosten Joe why do like your trading edge and not other magazine?
joeross Because it is free, crosten
Giuseppe I think it too.
crosten Joe, how many points do you risk for the easy bond?
joeross Giuseppe: I will let Andy know.
Giuseppe ok
Giuseppe ok I have to go now. I will send an email to you later.
crosten Joe how many ticks do you risk per contract for the easy bond?
Giuseppe Good Night Joe.
joeross crosten: Buy the method and you'll find out.
Giuseppe Good Night Crosten
crosten Thanks Joe, enjoy the holidays
crosten Is it some sort of secret?
joeross crosten: you have to pay for the method. That's the secret :-)
joeross good night to both of you.
joeross It's time to end
joeross Bye

END OF CHAT

Next Chat with Joe Ross:
Thursday, April 12 , 2007
Time: 8:00 - 9:00 P.M., European Central Time (Berlin, Paris, Rome)

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