Bijoy's System to ride Yen pairs on slanted risk

Trading Systems Free Forex Trading Systems
1

Hai Friends,

Here I am introducing a mechanical system with simple rules and that can be automated very easily. My another thread Bijoy’s Trading set ups, where my live trades with discretionary set ups and technical analysis are posted is no way connected with this thread. Bijoy’s Trading Set ups is in a live trading environment and the system in this thread will be experimented on a demo account.

This system is not recommendable for micro accounts as it always jogs on a track of heavy risk. To use this system on MT4, then at least $500 should be the minimum required account balance as the least possible lot size allowed in MT4 is 0.01. We can take this system with less account balance with brokers having trading platforms which allows you to trade less than 0.01 standard lots.

This system complies with the newly implemented trading rules. This system is always away from Hedging and Scalping. Also this will execute only one trade per pair at any time. So FIFO (First in First Out) rule also will not be a problem for this system. This system can be tried with any broker.

Rules

A. Platform

  1. Use GMT close daily candle platforms (Platforms having daily candles with close and open at 00.00 GMT) for analysis. (You may place your order on Newyork close or on any other close time platforms. But for analysis, you should use platforms with Daily candles closed at 00.00 GMT.)
  2. Use Platforms that provides 6 daily candles in a week. Sunday candle is must for this system.

B. Pairs

  1. GBPJPY, 2. EURJPY & 3. USDJPY

Those who are interested only in one pair, then the most recommended pair is [B]GBPJPY[/B]. If you are interested in adding one more pair, then [B]EURJPY[/B] will be the second best. Then the third pair which is in line with this system is [B]USDJPY[/B]. In this thread, we will be forward testing all the three pairs.

B. Time Frame

Daily

C. Trading Days

Monday to Thursday. No trades on Sundays and Fridays.

D. Indicators and Tools

Fibonacci only. Nothing else.

E. Time required to be spent

GMT 23.45 PM to GMT 00.15 AM = 30 minutes per day.

F. Entry

Get your computer connected at above mentioned time. Watch the daily candle that is about to close. See the candle is closed and a new daily candle is started. Draw Fibonacci lines from high of the closed daily candle to it’s low. Place a Buy stop order just 1 pip + spread above the candle high, If the candle close is above Fib 50. If the candle is closed below Fib 50, then place a sell stop order just 1 pip below the candle low. Get the computer closed and wait for next day 23.45 PM GMT for coming back to the system.

G. Exit

Here the matter of High risk appears. Neither Stop Loss nor take profit is used. Come near the computer after 24 hours at 23.45 PM. Close all triggered orders during daily candle close without looking into the profit/loss column. Cancel all non-triggered pending orders without having a second look at the same time. Place new pending orders on opening of new candle.

H. Risk Management

It is not possible to fix risk on each trade as no stop loss is used. I recommend to use 0.01 Standard lot size per $500 balance. i.e, find out the lot size by dividing account balance with 50000.

Example
If the account balance is $1000, then lot size is 1000/50000 = 0.02 standard lots.(2000 units)
If the account balance is $5000, then lot size is 5000/50000 = 0.1 standard lots.(10000 units)
If the account balance is $10000, then lot size is 10000/50000 = 0.2standard lots.(20000 units)
If the account balance is $300, then lot size is 300/50000 = 0.006 standard lots. (600 units)
If the account balance is $50000, then lot size is 50000/50000 = 1 standard lot. (1000K units)
Target is to gain 20% return per month.

I. Back Test Results

Back test results are attractive and that may tempt us to jump in to live trading immediately without having an idea on risk involved. Also I am not a fan of back tests as there are chances of manipulation. So no Back test reports and claims here. Let us have a forward test in the coming days. If Robopip is kind enough, then he will do the back test at least on pair GBPJPY for us

J. Disclaimer

This system involves chances of heavy draw downs and high risk due to absence of stop loss. System is expected to give nice returns in the long run. Adjusting lot sizes, Discipline and consistency will be the key factors to get success with this system.

K. Conclusion

I will be demo trading this system for next 30 days with 0.1 lot size on an account where $5000 virtual money is the account Balance.

So Let us move to Today’s set ups.

Stay tuned

[B]BIJOY[/B]

2

GBPJPY’s Sunday candle closed above Fib 50 @ 143.31 . Placed Buy stop order 1 pip + spread above candle high(143.60) and got triggered at 143.68

gbpjpydaily.jpg700×384 26.3 KB

EURJPY’s Sunday candle closed above Fib 50 @ 122.33 . Placed Buy stop order 1 pip + spread above candle high(143.70) and got triggered at 122.74

eurjpydaily.jpg700×384 27.2 KB

USDJPY’s Sunday candle closed above Fib 50 @ 94.89 . Placed Buy stop order 1 pip + spread above candle high(94.99) and got triggered at 95.03

usdjpydaily.jpg700×384 24.7 KB

3

Good Luck with the system Bijoy. I’m in and will watch the developments and the results.

One question: IS Sunday candle considerable as a daily candle. There is no open market on Sunday. I consider it as a weekend candle. I think it’s good to trade from Tuesday to Friday.

4

Normally market closes on Friday and Friday candle is considered as weekend candle. There is a chance for the price to create a gap in the market due to some or other market moving events during weekend days. So brokers with 5 daily candles(Mainly New York close brokers) per week normally opens their Monday candle with a gap from the Fiday close. No continuity can be found between Friday and Monday candles. Continuity of price is very important for this system. But we can see that the Monday candle as a continuation of Sunday candle with brokers having 6 candles and the gap here is between Sunday and Friday candles. That is the reason, I prefer to take trades on Mondays refering Sunday candles.

5

Daily candle of GBPJPY closed @ 143.94 granting a profit of +26 pips
Daily candle of EURJPY closed @ 123.42 granting a profit of +68 pips
Daily candle of USDJPY closed @ 95.35 granting a profit of +32 pips

Net Result: [B]+126 pips[/B]

6

GBPJPY’s Monday candle closed above Fib 50 @ 143.94 . Placed Buy stop order 1 pip + spread above candle high(144.34) and got triggered at 144.41

gbpjpydaily.jpg700×434 27.4 KB

EURJPY’s Monday candle closed above Fib 50 @ 123.42 . Placed Buy stop order 1 pip + spread above candle high(123.95) and got triggered at 123.98

eurjpydaily.jpg700×465 28.2 KB

USDJPY’s Monday candle closed above Fib 50 @ 95.35 . Placed Buy stop order 1 pip + spread above candle high(95.59) and got triggered at 95.63

usdjpydaily.jpg700×429 28.2 KB

7

I’m joining on the longs because of the Daily charts.

8

Daily candle of GBPJPY closed @ 143.49 gaining a profit of -92 pips
Daily candle of EURJPY closed @ 122.28 gaining a profit of -170 pips
Daily candle of USDJPY closed @ 95.06 gaining a profit of -57 pips

Total -319pips

Net Result till date (After 2 days): [B]-193 pips[/B]

9

GBPJPY’s Tueday candle closed below Fib 50 @ 143.16 . Placed Sell stop order 1 pip below candle low(143.15).

EURJPY’s Tueday candle closed below Fib 50 @ 121.85 . Placed Sell stop order 1 pip below candle low(121.84).

USDJPY’s Tueday candle closed below Fib 50 @ 94.72 . Placed Sell stop order 1 pip below candle low(94.71).

10

Daily candle of GBPJPY closed @ 144.80 Without triggering the Sell stop Order. 0 pips
Daily candle of GBPJPY closed @ 124.13 Without triggering the Sell stop Order. 0 pips
Daily candle of GBPJPY closed @ 95.93 Without triggering the Sell stop Order. 0 pips

Total 0 pips

Net Result till date (After 3 days): -193 pips

11

GBPJPY’s Wednesday candle closed above Fib 50 @ 144.80 . Placed Buystop order 1 pip+Spread above candle high(145.26+1+Spread = 145.34).

EURJPY’s Wednesday candle closed above Fib 50 @ 124.13 . Placed Buystop order 1 pip+Spread above candle high(124.49+1+Spread = 124.53).

USDJPY’s Wednesday candle closed above Fib 50 @ 95.94 . Placed Buystop order 1 pip+Spread above candle high(96.13+1+Spread = 96.17).

12

Price never went up to my Buy stop orders and didn’t trigger any of them. So no trades yesterday.

There will be no trades on Friday and Sunday on this strategy. So see you all on Monday.

13

GBPJPY Buy stop order was not triggered.
EURJPY Buy Stop triggered at 123.78 and closed at 120.78 loosing -300 pips
USDJPY Buy Stop was triggered at 94.94 and closed at 93.94 loosing -100 pips.

Net result : -400 pips

Total up to date: [B]-593 pips[/B]

14

GBPJPY: Monday candle closed below Fib 50. Sell Stop @ 141.87
EURJPY: Monday candle closed below Fib 50. Sell Stop @ 120.06
USDJPY: Monday candle closed below Fib 50. Sell Stop @ 93.52

15

No Trades were triggered. Cancelled all pending orders.

Total up to date: [B]-593 pips[/B]

16

GBPJPY: Tuesday candle closed above Fib 50. Buy Stop @ 143.65
EURJPY: Tuesday candle closed above Fib 50. Buy Stop @ 121.85
USDJPY: Tuesday candle closed above Fib 50. Buy Stop @ 94.74

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27th March

All Tuesday candles closed above Fib 50. So looking only for Buy stop orders.

GBPJPY: Buy Stop triggered at 143.65 and closed at 142.66 resulting -99 pips
EURJPY: Buy Stop triggered at 121.85 and closed at 120.48 resulting -137 pips
USDJPY: Buy Stop triggered at 94.74 and closed at 94.31 resulting -43 pips

Total: -279 pips

Total up to date: -872 pips.

28th March

All Wednesday candles closed below Fib 50. So Looking for only Sell stop orders

GBPJPY: Sell Stop at 142.04 not triggered.
EURJPY: Sell Stop triggered at 119.95 and closed at 120.70 resulting -75 pips
USDJPY: Sell Stop triggered at 94.02 and closed at 94.20 resulting -18 pips

Total: -93 pips

Total up to date: [B]-965 pips.[/B]

29th March

No trades on Fridays

18

All Sunday candles closed below Fib 50. So Looked only for Sell Stop Orders.

GBPJPY: Sell Stop order triggered at 143.10 and closed at 141.90 gaining +120 pips.
EURJPY: Sell Stop order triggered at 120.62 and closed at 119.75 gaining +87 pips.
USDJPY: Sell Stop order triggered at 94.22 and closed at 93.20 gaining +102 pips.

Total: +309pips

Total up to date: [B]-656 pips[/B]

19

GBPJPY: Monday candle closed below Fib 50. Sell Stop triggered @ 141.66
EURJPY: Monday candle closed below Fib 50. Sell Stop triggered @ 119.48
USDJPY: Monday candle closed below Fib 50. Sell Stop triggered @ 93.04

20

GBPJPY: Sell Stop triggered at 141.66 and closed at 141.02 resulting +64 pips
EURJPY: Sell Stop triggered at 119.12 and closed at 119.65 resulting -53 pips
USDJPY: Sell Stop triggered at 93.04 and closed at 93.34 resulting -30 pips

Total: -19 pips

Total up to Date: [B]-675 pips[/B]