This is not a Holy Grail (Simple Method)

Nice softwear you useing…care to share what is it called?

yup…same here!:slight_smile:

It’s a Java based application from Oanda FX game (for demo play).
Very recommended.

What do you think about lots, trailing stops, stoplosses, profit level? We still need a lot of development.

I think stoploss can be when an opposite signal reached (for agressive style) but that will take 4 indicators to reverse. and that takes time and takes a big loss.

The problem is that one of two indicators can go opposite for a while and turn back.

Another problem, putting a tight stoploss… we can stop out the trade, and then it moves in our favour.

I will try to find the best combination by demo testing these trades for some time at least.

[/QUOTE][QUOTE=topchess;954]It’s a Java based application from Oanda FX game (for demo play).
Very recommended.

What do you think about lots, trailing stops, stoplosses, profit level? We still need a lot of development.

I think stoploss can be when an opposite signal reached (for agressive style) but that will take 4 indicators to reverse. and that takes time and takes a big loss.

The problem is that one of two indicators can go opposite for a while and turn back.

Another problem, putting a tight stoploss… we can stop out the trade, and then it moves in our favour.

I will try to find the best combination by demo testing these trades for some time at least.

As i explained in my tread(about BP method)Im more of a passive trader, i limit profit along with loss manualy, without even waching the chart, so based on that i put 30-40 stoploss and 10-15 take profit! Im not an agressive trader,

I think stoploss can be when an opposite signal reached (for agressive style) but that will take 4 indicators to reverse. and that takes time and takes a big loss.
And thats exactly why i aint an agressive one!

I closed demo trade at 20.7 pips for the experiment.

This might be wrong decision why? It can go in my favour more. but until we find a strategy to protect max pips and give away minimum loss, we should be happy with 20 pips for a trade. (some trends last until 100 pips)

Let us redraw this all over.

Our goal is to protect profit and do not let losses run.

We will test the following model from now on.

Entries: when the four indicators line up in one direction on the basis of candle close (usually SAR will signal first, then MAs, adx, rsi)

Take profit: 10 pips trailing stop.

Stop loss: when SAR give an opposite signal. This, to limit losses, and allow us to re-enter later if it turned back. (we won’t depend on RSI cause sometimes it bounces a lot around 50 area)

I know this model, we can get many whipsaws in a non trending market, but I have to test it for a week at least on all conditions with same rules, and following every signal to know the net P/L.

The one that was opened yesterday closed +13p.
I`ll try to trade more agressively today!I fhtere will be a trend!:slight_smile:

I wnet against a riseing trend(all 4 indicators showd an uptrend) on the NEw York open, e/u +24 g/u +36

This works good in a trending market, so we can’t fool ourselves, and should keep testing in a non trending mode. to know what losses we get, and if winners cover losses. I think about eliminatnig the RSI because it bounces so many times around the 50 area causing undecision to trade.

The goal also is to make it more simple, as possible.

[QUOTE=topchess;967]This works good in a trending market, so we can’t fool ourselves, and should keep testing in a non trending mode.QUOTE]

What`s your idea of a “trending market” i ask this questions lots of people, evryone hase theyr own ode of a trending market? How do you consider a market that trends?

I use Trending market to refer to strong movement in one direction (uptrending or downtrending) and to know how much market is trending, use your ADX. If the value of ADX line not (DI+, DI-) is lower than 20, this is a non-trending market. If the value is higher than 40, this is a strong trend occuring.

Non-trending market (sideways) also named rangebound. The price tends to move within thin channels for long periods of time without breaking either side.

Just what i wanted to hear!:):smiley:

Like the great Einstein said, “Make everything as [B]simple[/B] as possible, but not simpler.”

You should have a separate system or “plan” to trade ranging versus trending market. One will work like make money hand over fist, while the other will lose money and your face will want to hit your fist.

The easy part is creating a system for a trending market and another system for a ranging market. The hard part or billion dollar question is knowing when to use which at the appropriate time. :smiley:

GO TO:

VTSystems.com

Open a demo account and download:

VTTrader

This trading software allows you to try out example trading systems (with buy/sell indicators), build and trial your own systems and even get into the software to develop your own indicators, or modify the existing ones.

In addition to this, you can demo trade your inventions.

Have fun!

It’s a very hard question indeed. but I can just consider that market is trending much more than ranging and have a money management plan that keeps winners over losers. :slight_smile:

I love trading the GBP/USD but I constantly have this problem. It will move 30 pips in my favor so I use my trailing stop and wham, im out of the trade and miss the next 60 pip movement :frowning: . If I use no trailing stop then it reverses and I break even because I always move the stop up to cover the spread. Let me know if you have any luck using mulitple lots because I might give that a try. Atleast you can lock in profit by closing one lot, but then you cut your pip value in half for the rest of the potential move up. I think money management is one of the hardest things to master in FX.

Money Management is indeed the hardest part.

You do not want to trail your profit then miss out a major move in your favour.
But also, it does not look good to see 20+ reversed into 20- during day.

The challenge, biggest challenge. You can’t be perfect with setting up these.

What we will do?
GBP is a big mover. We have to limit our loss.

I suggest using multiple lots or trailing stop your lot.

example:

open 2 lots, and set tp 20 pips for 1 lot. lock in these pips.

trail the profit on the second one or stop it at no loss if it didn’t go in your favour.

or use 1 lot, but this way, if price went your favour then reversed totally…then moved again in your favour, you gain nothing.

I am trying to do some modifications to make the method so simple, and will share it when it’s done, I will demo trade with lots today and find out.

Here’s what you need to remember about setting stop loss to break even:

Yes you will be stopped out and then see your (former) trade work out beautifully many many times. But, how do you know it just won’t go against you if you didn’t have that stoploss there? Plus, you can never go wrong with having only winning/break even trades.

I wish for myself that every trade I went into was timed right so that I would be in the money a few minutes later and that I could lock in my stoploss at slightly above break even. Worst case scenario: 100% profitable trades, many small profits. Best case scenario: 100% profitable trades, many huge profits with stoplosses following at a distance.

It doesn’t get better than 100% though!! And the better your entries (timing-wise), the fewer times you get stopped out at breakeven.

I agree with you 100% on that :slight_smile: I will work on using multiple lots and try to perfect the timing to increase profits but one thing is for sure I will never not use stops.

It’s a Java based application from Oanda FX game (for demo play).
Very recommended.
One more thing, is there a way to save the chart, not to prepare it newly everytime after every logout out of the system?