Mouteki Trading Revisited

[kalesh]

At one time I found the Mouteki system quite good, but then lost track of it. Now I am looking into it again and this time I will be adding rules to the original system in order to increase profits and decrease losses.
I will be backtesting it from January 1999 till 14 November 2009 (current date) and from there forward test will begin.
Base rules of Mouteki system are used.
Rules in Red are no longer followed. And have been replaced by better rules.
The rules with base system and an indicator (both found on this very forum) are attached.
Additional rules:
Only use Daily Timeframe
If breaking candle touches both trendlines the trade is ignored.
Look for next trade only once TP/SL has been hit. I found that this was actualy leaving a lot of trades and pips on the table so it is no longer followed.
StopLoss is placed at the highest high /lowest low of the last two candles or at 1/4 TP level (whichever gives greater SL).



Backtest data will be added to this post/thread as I do the backtests.

Trade #: 1
Pair EUR/USD
Entry date: 1999/01/07
Price: 1.1626
Tp: 430
SL: 214
TP Hit:Yes
SL hit: no
Exit date: 1999/02/16
Date Low 1: 1998/12/31
Date Low 2: 1998/11/27
Pips total:430
Won trades:1
Loss trades:0


Trade #: 2
Pair EUR/USD
Entry date: 1999/02/19
Price: 1.1073
Tp: 1441
SL: 214
TP Hit:Yes
SL hit: no
Exit date: 1999/05/27
Date Low 1: 1999/02/16
Date Low 2: 1998/08/27
Pips total:1871
Won trades:2
Loss trades:0

[TalonD]

interesting, so what would this look like on a current gbp/usd ?

[kalesh]

Im still trying to figure out if I should do all the testing I wanted to or just do a month or two back worth of it.
Here is the last G/U trade and G/U setup
For the last entry signal yellow lines are the calculation lines. red line is the SL, Green Line is the TP, Blue lines (except blue trendline) are entry lines.
The Green trendline and blue trendline are current trendlines. If a daily candle closes above the blue trendline (which it should pretty soon) it will give another buy signal in which case one could either just change the SL and TP of last trade or add a new trade.

[hess]

why are u testing 1999?

[kalesh]

Originally Posted by hess

why are u testing 1999?

I was testing because I wanted to test it for 10 years, and I was doing the daily, and I was ignoring trades until the previous trades tp/sl was hit, so it did not seem like much work. 1 trade would often last monthes.

Now that I am working on H4 and not ignoring trades it has become much larger of a task and thus I will only to last two months backtest. Actually the posting of backtests here was an attempt to put the mouteki method back into use, however its becoming quite of a chore, I have already backtested enough for my own needs a few years back but forex trading had to be put on the back burner because of more urgent tasks, well now I have time again I am going to start live. the live trades will be posted in this thread.

[hellogoodbye4201]

just tonight i picked up roughly 54 pips on one trade (hit a TP level) and have 2 other trades both with a SL of +10 and currently floating at about +90 combined

[kalesh]

backtest of last two months can be downloaded at following link (sroll down for download button)
sendspace.com/file/3eeq3t

Would have been able to bag 112 pips today (one -14, 0ne +50 and one +76) the -14 was from a trade opened last week, the +50 and +76 from single entry point which would have been a 2.9% (that was incorrect calculation, the increase would have been 6.9%) increase of my account balance. Unfortunately the money for my live has yet to arrive

[hellogoodbye4201]

Originally Posted by kalesh

backtest of last two months can be downloaded at following link (sroll down for download button)
sendspace.com/file/3eeq3t

Would have been able to bag 112 pips today (one -14, 0ne +50 and one +76) the -14 was from a trade opened last week, the +50 and +76 from single entry point which would have been a 2.9% increase of my account balance. Unfortunately the money for my live has yet to arrive

an update of the trades from last night
+56 pips
+65
and one still open currently at +91 with a SL of +30

[kalesh]

I have started Live trading with the system now.
These are live trades
Buy E/U @1.5005 S/L 1.4943 T/P 1.5195
Buy E/U @1.5005 S/L 1.4943 T/P 1.5055

The risk was initially at 5% per trade but after adjusting SL it is now at 3.1% per trade.
This trade may be seen as risky but got to follow system.

Update changed the stoploss for both to 1.4971 the risk is now at 1.7% per trade.

[red2002camaross]

Kalesh,

The indicator you have provided on the thread is great! However, I seem to be lost after the price action reaches the TP. What is the back step for and also, how do other numbers in the back step/showing step affect the indicator?

Bill