SlingShot strategy revisited

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1

Hi fellow traders.

Before I start or before anyone here says this strategy is old news, I have been trading the SlingShot strategy using Daily, Weekly & Monthly bars with great success. Recently I have ditched the daily bars as you need to be a full time trader to catch all the moves every day. Unfortunately I have a full time job so I now concentrate on swing/position trades. All the video links & data are posted in the journal section under the same name “Slingshot strategy revisited”. Here I have links to my youtube channel where I upload my live account trades & setups before they are taken. My live account is only small but is what I use to sample a strategy before using my large account. There are also video links to all my back testing data (done on forex tester 2) that I have compiled the last few weeks & is currently on going.

A little about me:
I’ve been trading for nearly 6 years & spent most of that with Online Trading Academy. Cut a long story short, I’ve been back testing many mechanical strategies, mostly trend following, but have not found anything that give’s a real edge in the markets over the long run. Now the long run to me is many years of data. Im not interested in making a quick buck over a few days, weeks or months, but I am interested in trading a strategy that requires no emotion to follow & produces smooth steady profits over the years. Yes years… The problem we all face is finding a strategy that fits our personality. Well this strategy fits mine like a glove.

I wont post the general rules here, but if you click on this link, Forex Trading - SlingShot 30M 100% Mechanical Scalping Forex System Part 1 - YouTube then you will be directed to the original youtube video that caught my attention. This is by a trader called Martin Alexander. Now he made a robot for this to trade 30m time frame’s as a scalping strategy. Im not interested in a robot nor 30min time frames. I wanted to see if this could be traded on daily to monthly time frames. This is where my research has taken me, so far with good results.

Now I have two rules/filters to this strategy that I follow on top of the original.

1/ I only take setup bars that close within the 40% of the top/bottom of the bar/candle. Any close within the 40 to 60% will be a void setup bar.

2/ If price opens & moves to the opposite high/low of setup bar or breaks the opposite high/low of the setup bar before valid entry has initiated, then that bar is invalid. Move on to your next currency pair or wait for a new bar to close.

There are two trade management’s that im currently back testing:

1/ Exit only where the entry candle closes. (Original)

2/ Use trade management which again is explained on one of my video’s. Slingshot Live account 14 FEB 2014 - YouTube

So far there does not seem to be a great deal between either but I have plenty more back testing to complete before coming to a final conclusion.The main thing is both seem to be profitable.
[video=youtube_share;7KbdfVm4ZRY]http://youtu.be/7KbdfVm4ZRY[/video]

All data can be found here 301 Moved Permanently

This is early days but this 100% mechanical strategy seems to be the only strategy to make sense to me. Who knows how this will pan out but im sure its worth a 2nd look for those who have not give this strategy a chance, or who have not done the necessary back testing to really see its strengths.

My channel Welcome - YouTube

All the best fellow traders

2

I have just completed another 3 years of back testing GBPUSD weekly bars. I have a total of 7 years data with video’s.

Overall so far over 7 years using only weekly bars - 235% Profit
Average per year - 33.5% profit

All info is recorded in my Journal 301 Moved Permanently

3

" 2/ Use trade management which again is explained on one of my video’s. "
could you please point out the specific video on which you explained the trade management?
Thanks!

4

Yep sorry I will post a link now - Slingshot Live account 14 FEB 2014 - YouTube

5

I have completed another 2 years back testing on the GBPUSD 2008, 2009.
Details posted in my journal under the same name of this thread.

6

Thursday 27 Feb 2014 - Mid week update
Live account:
Balance $264
Floating profit $313

7

Friday 28 Feb 14 - End of month update
Live account: Slingshot live account end of month 28 feb 14 - YouTube
Balance $303
Floating profit $309

I’ve closed all monthly bar trades with a good profit. So far the live account has made just under 50% profit this month. Still early days as this is the first live test using 11 pairs & weekly/monthly trade setups together.
Next update Sunday 2nd March with video looking at new monthly potential setups & the week ahead setups.
Have a nice weekend.

8

Monday 3 March 2014
Brand new Month & Weekly live account analysis -
Slingshot live account analysis 3 Mar 2014 - YouTube

Live account balance $308

Had a good increase in profit last Month. Lets see what happens this month.

9

Mid week update: Slingshot live account update 4 Mar 2014 - YouTube
Live account:
Balance $308 Floating profit $326

10

What is your percent risk on each trade

11

Hi jpw0100

I use the same lot size of 0.01 on this small live test account. I don’t calculate an exact percentage because this account is too small to trade 11 pairs with only 1% risk, but I do diversify by trading 11 pairs using Weekly & Monthly bars, so it is possible to have 22 trades on at any one time. This has not happened yet in the live account but as you can see from my youtube videos, there is a descent trade count each week. The account is growing every week so far & I will make another update video when the markets open & close at midnight here in the UK. I am expecting some kind of draw down as back testing has proved to have its fair share of draw downs, but over the years based on the size of my live account, it should grow around 30% to 100% per year. So far im up over 50% in one Month which is staggering to say the least. I was not expecting such an incredible growth rate straight off the bat. Like I said, im expecting some draw downs soon, but im also expecting an end of the year profit too. Time will tell.

12

Mon 10 Mar 2014
Live Account:

Balance $335
Floating profit $330
Closed for another profit this week. Plenty of setups this week in all the pairs - Slingshot live account update 10 Mar 2014 - YouTube

13

Seems like a pretty straight forward system with no discretionary elements. Have you tried back testing this with an EA or analytics tool?

14

If i understand this post well, if a 7 year backtest produces -235% loss, then this method will result in a loss overtime. Why still testing it out? Or am i misguided? Please correct me if am wrong.

15

Hi Esosa

No that wasn’t a minus sign. Just a dash… I can see this may be confusing so I will change the layout for future posts. It it 235% profit over 7 years. All the data is in the journal section under Slingshot strategy revisited. Here I will now only post my live account to see how this plays out this year.

Thanks for comment.
Tyrone

16

Hi LiquidGenius

No im not interested in EA’s or any other tool to back test or live trade this strategy.
The reason I do it manually, is after so much back testing, I may spot patterns to improve the strategy. This will be done by adding a rule or filter then re back testing & cross examining the data against the first test. Im already doing this in the journal section under “slingshot strategy revisited”. I need to be doing this myself to build confidence to stick to the rules when there are bad trading years & there certainly will be with any strategy. I think the key is to have 100% belief that you will in the end, be profitable regardless of the drawdowns. This is my aim with manual back testing.
Thanks
Tyrone

17

Ah I see.
I agree, seeing numbers outputted onto the screen telling you P&L and being able to see the structure of the trade is very important. I figured I’d ask since it seems easy to do. I only given this system a glimpse, but I see some elements in it that I’m attracted to. I have some other things I’m working on, but if I were to have a go at back testing this in excel, would you like to see the results?

Thanks,
LG

18

Hi Tyrone
i now get it.
This system looks promising. I’m a Price Action trader and trades naked chart. I’ve been looking for a suplimentary method which is purely mechanical that can secure constant profit and so far this method is interesting.
During your backtest can you state the maximum draw down for a given year?

19

Hi Esosa.

check out my journal here 301 Moved Permanently
This has had draw downs some years but after 13 years back testing the GBPUSD Weekly bars, the account was in profit. This was based on 1 lot size just for scientific research. If you risk around 2% then the average yearly profit would be around 5% per per traded. This may not seem alot but that depends on how many pairs you trade. The study is ongoing & I have many more pairs to back test for a more solid conclusion. The main result is this strategy has survive all market conditions so far, giving me confidence to trade live.
Hope this helps
Tyrone

20

Thanks for the reply and keep up the good work.
I don’t get the part of risking 2% to average a yearly 5% profit. Is it that, should i risk 2% of my account per trade and the yearly profit will be roughly 5% of my total account?

Your 13yrs of backtesting GBPUSD, has any year end up as a losing year?