Starting out trading and dont know how to make Profits? - Page 3
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  1. #21
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    Imagine I gave you a great build order in Starcraft2 and it will set you up for a great +1 timing attack but then you get 6 pooled.
    What do you do?

    You say you didn't come up with the build order and therefore have no clue what to do or how to adjust.
    Therefore you lose.
    Last edited by Nyad55; 02-09-2017 at 06:58 AM.

  2. #22
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    Hello Steve,

    thank You for your comment. Ill answare as efficient as possible.

    Quote Originally Posted by SteVeXX View Post
    Hi Nero,

    Seems that you have an interesting system that I will try from next week on my life test account.

    I have a few questions:

    1.
    How did this system perform last year during the Brexit vote and US election day ?
    I haven't had the time to look at all charts in details because I'm working on an indicator that calculates the High and Lows during past 5 or 40 trading days and calculates the position size. Will probably post it here when ready if you allow it.
    It performed very good. It took you out of the wrong direction very quick and never violated the 2% max risk.

    Heres a example:

    At the GBP/USD it performed good. First was a 40-days rule in place since there were no clear trends. Prior brexit it broke out towards the downside. The first trade was a lost of 1%

    It initiated a long trade which was a gain of 1%

    At the night of the brexit it closed the long at 1% loss and initiated a short trade which it closed automatically 12 july at a profit of 9,8%

    So the over all profit in this pair on Brexit was around 9,8% account gain within 20 days.

    This was 1 out of 5 trades. Add another 4 trades in the similar fashion and a account groth of 5-10% you can figure out a account growth of around 40% around the brexit votum.

    There were better performers but this is the closest i saw when i opened my chart so decided to use this one.

    Aswell keep in mind that there were at least 50% people who made losses on brexit. So a 40% gain isnt that bad for a completely automated system that requires no knowledge of you at all from markets economics plitics or even trading.

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    Quote Originally Posted by SteVeXX View Post
    2.
    How does the EURUSD perform with this system ?
    Is this a pair that you are trading at the moment or are there more interesting pair such as gold, usdjpy ? Those are making nice waves over the past year.
    the system performs exactl the same on every security. it really does not matter what you trade.

    When you follow the rules precisely the system will in it self ban you from trading pairs in which it will perform badly. Thats how i created it.

    The system has a build in Risk management calculation which is conected to the average movement area of the underlying security (some statistics and maths i did in the background and didnt explain in here). This means that it really does not matter which security you trade, the system will automaticaly and by itself adjust to the security. Once you start trading it you wil notice that for every security the numbers of calculation differ a lot while the claculation always stays the same. once you calcucated the numbers (entree, stop loss, position size according to risk management) you will notice that it is always the same risk management in place regarding percentages.

    Quote Originally Posted by SteVeXX View Post
    3.
    I'm a little bit confused about the SL of the 40 day system.
    Suppose we had 3 bad performing trades with the 5 day system, then we need to switch to the 40 day system.
    SL in middle of High and Low. I checked a few charts. We can have then a SL of more then 500 pips.
    So we will have a very small position size.
    When our pending order gets triggered a few days later we need to follow the rules again of the 5 day system to change our SL every day.
    Aren't we going then to a very small SL (5 day low), compared to the one of the 40d system ?
    Why start with a big SL to have it changed the next day into a small one ? Or am I reading something wrong ?
    I like to ask you to post the exmaple which you found has a stop loss of 500 pips. Simply use your "Snipping Tool" which every windows has (find it at windows search bar typing "snipping tool") to create a screen shot and post it here please.

    About the stop losses in the 40-days trades. From what i have backtested the stop losses and the calculaton is very efficient, even more efficient than the 5-days high five trading method.

    The issue you might was looking at was that when a pair starts ranging after it made a bigger advance into one direction. Then the "range" of the 40 days in many cases (after 3 consecutive trades closed in loss or RR less than 1:1) if often high leading to a wider stop loss. But the system is created to cover this "divergence" simpl yby the wide spread orders of entre. Why?

    Immagine the dow made a advance from 19000 to 21000 within 2 months. You have been participating in this clear new "up-trend". Now it becomes flat and the system forces you to use the 40 days method.

    The price ranges around 20900 the last few days orweeks. Your entry for a long is 21000 with the 40-days system and you have a wide stop loss.

    Your entry for a short is much further away at 19000.

    Why is that good? simply because the entree for a short in such a clear bullish market is intelligent to be set far away. We discovered that it is a up trend, if we have now weeks or days where the market is ranging that does not mean that the up trend has ended, it is most likely that the uptrend will continue and you will participate in it as soon as it breaks out making new highs.

    For the uptrend to end in such short term cases of 2-3 months the last low must be violated. every move in contratrend is considered a "reaction" only to a heated up bull market. It is only considered a trend change if it completely offsets the priop upmove by 100%.

    On the other hand your new longposition in case of a brakeout will be a less risky position due to the bigger stop loss calculation. And that is very good that way simply because trading at market tops is dangerous. If a market reaches a new top the possibility for a shrp swing back is very high. this will keep your potencial losses small but still let you participate in that market.

    This will flatten out. Once the 40 days moved beyong the big advance mentioned earlier your entrees for long and short will come closer together and your stop loss will not be as wide anymore.

    And after you started the 40-days methode on the security that started ranging you anyways have already another security in which you are trading the 5 days method. this means your risk/profit always stays the same since you have 30 securities to chose of. if one is not behaving good and kicked your 5-days trading out then you will find another one withing minimum time to trade in and skip the one which is in the 40-days method.

    But please add a chart which is in your interest and i will be able to explain it more precise on your example.

    Please aswell take into consideration that a 500-pip stop loss in 'Gold is not a big stop loss at all since gold tends to move 2000 pips/day easily.

    Quote Originally Posted by SteVeXX View Post

    4.
    You wrote that we can have only 5 active trades at one moment.
    Suppose we follow with this system 10 to 15 pairs.
    Since we are with this system 24/7 in a trade how can we keep then only 5 trades open ?
    Do we have to close then a few trades ? Put system on hold ? Or what do you do ?

    Thanks for your comments and putting this system in the forum here.

    Steven
    Once you have 5 trades open and the 40-days system opens a new trade you will be having 6 trades open, yes. This resolves itself by the system since it will sooner or later take you out of one of these 6 open trades. Once you have 6 trades open you restrict from opening a new trade by the 40-days system by deleting the orders. After the system took you out of 1 of the 6 open trades by itself (3 closes in loss or RR less than 1:1) you initiate again the 40-days to every security untill it opens a 6th trade again.

    You can aswell play it a bit more risky and have 10 trades open simultaniously but i would not suggest tht since i didnt test anything in that fashion yet.

    Over all the system is created to give you a account growth of 15-35% each month (depending on moth- high and low season of VOLUME since there are months where its more traded and months where its less traded). Thats already a great account growth. making it more risky is not adviced by me.

    Got a meeting in 8 minutes so i need to hurry. I will answare the other posts in the evening or tomorrow.
    Last edited by TURBONero; 02-09-2017 at 01:10 PM.

  3. #23
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    Quote Originally Posted by Nyad55 View Post
    Imagine I gave you a great build order in Starcraft2 and it will set you up for a great +1 timing attack but then you get 6 pooled.
    What do you do?

    You say you didn't come up with the build order and therefore have no clue what to do or how to adjust.
    Therefore you lose.
    Hello Nyad,

    thank you for your comment but i dont uite understand what you meant with it.

    Sincerely,

  4. #24
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    Essentially if you follow a set plan from someone else, you won't know how to compensate for the odd cases or tweak it if it needs updating.

  5. #25
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    Quote Originally Posted by Nyad55 View Post
    Essentially if you follow a set plan from someone else, you won't know how to compensate for the odd cases or tweak it if it needs updating.
    I don’t think anyone would dispute that its always better to learn forex and develop your own trading system, however TURBONero is responding to the large number of requests on here asking for systems and guidance on how to develop one.
    Even as someone who has his own system, I can read the methodology and reasoning behind this system and maybe take some ideas that I can incorporate into my own.

  6. #26
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    Manxx is offline Superior Master Contributor and Member
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    Hi Turbo,

    you count back the last 5 daily candles. You identify the lowest point of the last 5 days and you identify the highest point of the last 5 days. Those 2 points serve as your entry into trades. On the highest point (price) you set up an automated entry order. You use the lowest point of the last 5 days as your STOP LOSS
    So once you are long, the only thing that matters is the high and low of the last 5 days (including the actual day which is not finished yet) you count exactly 5 candles back, not 4, not 6
    Do we mean the previous 5 days prior to today's current high and low or including the current day as it develops?

    Just to check my understanding, am I right in thinking I am now short on EURUSD?

    5-day high (incl today so far) =6.2. = 1.07911 = Stoploss

    5-day low (incl today so far) = 8.2. = 1.06404 = Entry during today?

    In other words I would now go short as today's low has broken 1.06404 - or do I wait until today's close and only enter if still under the prev low?

    In brief, is it the prev 4 complete days plus today's range, or the previous 5 complete days and then enter today if either of these breakouts are crossed?

    You did say the "5" is important so I just wanted to check I got it right!
    Last edited by Manxx; 02-10-2017 at 04:50 AM.

  7. #27
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    Quote Originally Posted by Manxx View Post
    Hi Turbo,





    Do we mean the previous 5 days prior to today's current high and low or including the current day as it develops?

    Just to check my understanding, am I right in thinking I am now short on EURUSD?

    5-day high (incl today so far) =6.2. = 1.07911 = Stoploss

    5-day low (incl today so far) = 8.2. = 1.06404 = Entry during today?

    In other words I would now go short as today's low has broken 1.06404 - or do I wait until today's close and only enter if still under the prev low?

    In brief, is it the prev 4 complete days plus today's range, or the previous 5 complete days and then enter today if either of these breakouts are crossed?

    You did say the "5" is important so I just wanted to check I got it right!
    Hello Manxx,

    it is including todays price action. so basicly today plus the 4 finished days before. the automatic order execution can be triggered at any time on every day and in the evening (or whenever you got the time) you see the actions of today and adjust the necesarry numbers.

    so this means yes. you can go short immediately on this pair. its possible that the first trade might end not perfect but that is due to the fact that were comming a bit late with a short on it. the perfect short according to this system would have been an entree at 1.07102 with a stop loss at 1.07558. by that we would already be in plus of 91.5 - 100 of cents (0.91 euro-cents) and today we would have moved above the 1:1 risk ratio. the todays stop loss would be at 1.07056.

    only one issue that i did not mention before is this:

    it is possible that -due to the 5 days calculation- the opening price of the next day is already below the newest set stop loss. this doesnt happen often. but when it happens you close the trade manually and open a counterside trade. so basicly if today you change your stop loss number and the price of stop loss has already been violated by the opening of todays day then todays open acts as immediately stop loss (close immediately) and open counter side trade.
    Last edited by TURBONero; 02-10-2017 at 05:21 AM.

  8. #28
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    Quote Originally Posted by TURBONero View Post
    Hello Nyad,

    thank you for your comment but i dont uite understand what you meant with it.

    Sincerely,
    I do. It means someone doesn't have much of a social life if he spends his time playing Starcraft2

  9. #29
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    Manxx is offline Superior Master Contributor and Member
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    Quote Originally Posted by TURBONero View Post
    the perfect short according to this system would have been an entree at 1.07102 with a stop loss at 1.07558. by that we would already be in plus of 91.5 - 100 of cents.
    As we know, different brokers have varying levels for highs and lows on daily charts - could you confirm which dates you are looking at here as none of my daily levels match with these - and actually, I don't have a low on EURUSD as far as 1.06102 to have given up to 100 pips so far?

    I am not questioning the viability or anything, I'm just trying to make sure I'm understanding rules properly. This is an interesting first trade setup for me since it happens to coincide with my own (developing) longer term method..........-

  10. #30
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    Quote Originally Posted by Manxx View Post
    As we know, different brokers have varying levels for highs and lows on daily charts - could you confirm which dates you are looking at here as none of my daily levels match with these - and actually, I don't have a low on EURUSD as far as 1.06102 to have given up to 100 pips so far?

    I am not questioning the viability or anything, I'm just trying to make sure I'm understanding rules properly. This is an interesting first trade setup for me since it happens to coincide with my own (developing) longer term method..........-
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    you are right. its not 91 pips. i made the mistake to calculate profit from the stop loss number (.07558) instead of entree number (.07102).

    thats around 55 points. which is 10 points more than difference between entree and stop loss. so we exceeded the rr of 1:1 by today.

    sorry my bad in doing math and subtracting from the wrong number.

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