PARMAR 3P Trading System

Trading Systems Free Forex Trading Systems
1

hello folks,
Short Introduction: I have been trading forex since last 7 years.During first 3 years i had blown my account numbers of time. I was trading with emotion,fear and greed. Trading of any time frame and news trading etc.
Trading without stoploss and risk:reward and ultimately losing the money. In short, Just gambling and not trading professional way.
Later, I started trading using daily chart and stick with it. Trading using Price Action Method. Got some what success but the main thing is consistency.

I was doing research on few method which provides consistent and good result.

[B]PARMAR 3P Method.[/B]

By the way, Parmar is my last time and 3P stands for [B]Profit,Percentage allocation and Persistent.
[/B]
The Method is quite simple and takes 10 min of your daily time.
You don’t have to be pro and experienced.

The Method is based on daily chart. Look for broker which gives 5 candle per week and ignore weekend candle.

Step 1)

Place 3 order above the high and below the low of previous candle with 1 pips offset.

Eg if EUR/USD high is 1.33157 and low 1.32451 then
[B][I]place 3 order of buystop at 1.33167 and sellstop at 1.32441[/I][/B]

step 2)

[B]Target and stop loss.[/B]

Stop loss for all three order is 5 pips.
Target is 5 Pips, 10 Pips and 15 Pips.

Now let us assume that you have place 0.1 lot size

so there are 4 outcomes

Outcome 1st order 2nd order 3rd order Result Result
in $
(5/5) (5/10) (5/15) pips
1 Loss Loss Loss -15 pips -$15
2 Profit Loss Loss - 5 pips -$5
3 Profit Profit Loss +10 pips +$10
4 Profit profit profit +30 pips +$30

Now the probability of achieving 5/5 is more than 5/10 and 5/15
As soon as the high/low break the probability of moving 5 pips is more. some time it moves 30-50 pips as well.

so what we have done is percentage allocation.

Initially we have used 0.1 lot size. so for there order our total lot was 0.30

Now we will distribute these 0.30 into 60%, 20% and 20% which will be 0.18, 0.06 and 0.06

Now see the result difference

Outcome 1st order 2nd order 3rd order Result [B]Result[/B]
(5/5)#0.18 (5/10)#0.04 (5/15)#0.04 pips [B]in $[/B]
1 Loss Loss Loss -15 pips [B] -$15[/B]
2 Profit Loss Loss -10 pips [B] +$3[/B]
3 Profit Profit Loss +10 pips [B]+$12[/B]
4 Profit profit profit +30 pips [B]+$27 [/B]

sounds great, isn’t ?

pips is same but in terms of $ it is great and that is what it matter.

Now pair.
Best outcome will be in EUR/USD and GBP/USD

I have back tested these method over several year and month by month and result is quite impressive.
Not a single losing month.

Currently I am using GBP/USD in these method and trader can check the result at myfxbook

PARMAR 3P Trading System | Myfxbook

At last, thanks for looking these method and will be awaiting for both positive and negative comments.:23:
regards
vijaykumar parmar

2

Hi Vikaykumar… Thanks for sharing your strategy… I find it very logical are similar to my style of trading (trading breakouts)… I would like to know what broker would you suggest for this strategy since most of the brokers have prices upto 4 decimals place? and would i require a ECN acc or a standard acc would suffice?? Also, do u trade news events in this strategy??

3

I wont recommend ECN as i have to pay commission each time. I have tried ECN and standard account both. Result is good in standard account. I am using broker with 5 decimal place in standard account and spread 1 pip for eur/usd.

4

Hi vijaykumar… I have sent you a pm… Would be great if you could reply…

5

[QUOTE=“vijaykumar;605694”]hello folks, Short Introduction: I have been trading forex since last 7 years.During first 3 years i had blown my account numbers of time. I was trading with emotion,fear and greed. Trading of any time frame and news trading etc. Trading without stoploss and risk:reward and ultimately losing the money. In short, Just gambling and not trading professional way. Later, I started trading using daily chart and stick with it. Trading using Price Action Method. Got some what success but the main thing is consistency. I was doing research on few method which provides consistent and good result. PARMAR 3P Method. By the way, Parmar is my last time and 3P stands for Profit,Percentage allocation and Persistent. The Method is quite simple and takes 10 min of your daily time. You don’t have to be pro and experienced. The Method is based on daily chart. Look for broker which gives 5 candle per week and ignore weekend candle. Step 1) Place 3 order above the high and below the low of previous candle with 1 pips offset. Eg if EUR/USD high is 1.33157 and low 1.32451 then place 3 order of buystop at 1.33167 and sellstop at 1.32441 step 2) Target and stop loss. Stop loss for all three order is 5 pips. Target is 5 Pips, 10 Pips and 15 Pips. Now let us assume that you have place 0.1 lot size so there are 4 outcomes Outcome 1st order 2nd order 3rd order Result Result in $ (5/5) (5/10) (5/15) pips 1 Loss Loss Loss -15 pips -$15 2 Profit Loss Loss - 5 pips -$5 3 Profit Profit Loss +10 pips +$10 4 Profit profit profit +30 pips +$30 Now the probability of achieving 5/5 is more than 5/10 and 5/15 As soon as the high/low break the probability of moving 5 pips is more. some time it moves 30-50 pips as well. so what we have done is percentage allocation. Initially we have used 0.1 lot size. so for there order our total lot was 0.30 Now we will distribute these 0.30 into 60%, 20% and 20% which will be 0.18, 0.06 and 0.06 Now see the result difference Outcome 1st order 2nd order 3rd order Result Result (5/5)#0.18 (5/10)#0.04 (5/15)#0.04 pips in $ 1 Loss Loss Loss -15 pips -$15 2 Profit Loss Loss -10 pips +$3 3 Profit Profit Loss +10 pips +$12 4 Profit profit profit +30 pips +$27 sounds great, isn’t ? pips is same but in terms of $ it is great and that is what it matter. Now pair. Best outcome will be in EUR/USD and GBP/USD I have back tested these method over several year and month by month and result is quite impressive. Not a single losing month. At last, thanks for looking these method and will be awaiting for both positive and negative comments.:23: regards vijaykumar parmar[/QUOTE]

Hello
Thank you for your post. It is very interesting.
Do you do this method daily in both pairs suggested?
I followed the first part of your method about placing the 3 orders with the 3 different profit targets above and below the high and low of the daily candle. but I don’t understand this part;

Initially we have used 0.1 lot size. so for there order our total lot was 0.30 Now we will distribute these 0.30 into 60%, 20% and 20% which will be 0.18, 0.06 and 0.06 N

Can you explain the part above?

1 Like
6

Just a small correction… an all profit scenario will lead to a profit of $24 as compared to vijaykumar’s calculation of $27

7

Hi,
It is High/Low breakout method. so we are placing 3 buystop and 3 sellstop order above the high of previous day and low of previous day.
Now there are 3 different target. 5,10 and 15 with lotsize 60%,20%,20%.

Eg if your total lotsize is 0.3 then 0.18 + 0.06 + 0.06
Now the logic is as soon as we hit first target of 5 pips we don’t make loss even though remaining 2 trade make loss.

Hope you have understood.
Else i will explain again with example.
regards
vijaykumar parmar

8

[QUOTE=“vijaykumar;605960”] Hi, It is High/Low breakout method. so we are placing 3 buystop and 3 sellstop order above the high of previous day and low of previous day. Now there are 3 different target. 5,10 and 15 with lotsize 60%,20%,20%. Eg if your total lotsize is 0.3 then 0.18 + 0.06 + 0.06 Now the logic is as soon as we hit first target of 5 pips we don’t make loss even though remaining 2 trade make loss. Hope you have understood. Else i will explain again with example. regards vijaykumar parmar[/QUOTE]

Hello Vijay - ok, i get it.

i understand your concept. Thank you for explaining it. In your trading, are you doing this with both the EUR/USD and the GBP/USD daily? Do you always place the orders or are there conditions where you avoid trading?

I was just playing in my FXCM demo account, in regards to entering the lot size of .18, .06 and .06 - it doesn’t allow me to enter a decimal. It only lets me do it in whole numbers. Do i have an incorrect setting?

9

Sorry for all the questions…

I assume that if the 3 buy orders are triggered, we close the 3 sell orders?
If neither order triggers, (ie, the next bar is an inside bar) - do you cancel the order and place it again based on the new bar?
If the order triggers, how long do you stay in the order? for example, let’s say the first order hits the target, but the market closes while the other two orders are still active, do you stay in the trade until either the profit target is hit or the stop loss is hit?

10

hi,
If 3 buy order triggered than still i keep 3 sell stop and cancel next day. There are some days with outside bar where both high and low break.
If there is inside bar than none of order will trigger. I usually keep expiry and will cancel the order automatically before new candle start.
Also, you need account with micro lot to put 0.18 and 0.06.
If account is with minimum mini lot then you need to put different lot size like 0.30, 0.10 and 0.10 etc and so on

Regards
vijay kumar

11

yes that my mistake in calculation.thanks for pointing out.
vijaykumar parmar

12

Hello Parmar - Thanks for the quick answers…
Can you show the trades that you are placing today with this method? I assume that you are placing breakout orders for the EUR/USD ad GBP/USD?

If I understand correctly, you place orders in both pairs daily? How have you done so far this month?

of trades?

of Pips up?

Thanks!

13

I am placing all order through my Expert advisor. As new candle form at 3:30 AM IST so i dont have to wake up everyday to place the order.

14

I had a try with the averaging strategy on 1hour chart, lost on first 2 trades. Does this only work on daily chart or all timeframe?

15

strictly daily chart only…
regards
vijaykumar parmar

16

How were the trades today? Can you give examples of the entries and targets?

17

Parmar,

can you show us some trade examples? I understand the logic of this strategy, but I can’t execute it right and get stopped out everytime?

18

example of trade placed on 26/2/2014

pending.jpg700Ă—178 27.5 KB

19

Does this work on other pairs?

20

[QUOTE=“vijaykumar;607024”]example of trade placed on 26/2/2014 <img src=“301 Moved Permanently”/>[/QUOTE]

Thanks for the example!