The 3 Duck's Trading System

Hello PipsiCola,

Good question, it’s great to see traders thinking outside of the box!
Will there be a clear advantage? I would’nt think so, but I havent tried it with the 15m chart as my smallest time-frame, maybe you could and see if your results differ. If you follow the “rules” and allow prices to cross the MA on the 5 min chart and also get above the previous high (2 candles to the left with lower value & 2 candles to the right with lower value) I think this will help you filter a lot of the noise. Another point, after you use this system or guide as I like to call it, you get a feel for the currency pair, therefore if you suspect the pair is in a tight choppy range - simple chose another pair to trade the system on or dont trade until things become clearer. Here is a real example for you: yesterday afternoon (19th of September '07 GMT) the eur/usd was in a choppy range, I choose not to trade Eur/Usd yesterday afternoon as I was not getting a clear signal. BTW I would have been looking for buying oppertunities, its has now gone up over 100 pips. What I did instead was look at the Usd/Jpy - all 3 duck’s where lined up in the same direction and I got a break above the last high on the 5min chart for confirmation. The trade was successful. So I think to get the best out of the system you need to get some experience using in in a live market, (demo account) get the feel for it and make it your own.
Sorry for such a long post, but I think a good explanation is required for PipsiCola’s initial question.

Kind Regards,

Captain Currency

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IDEM:

Insert on M5, 60 sma, 720 sma and 2880 sma …

Bye

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Hello Maje,

Yes, you are correct, you can view all sma’s from the 5 min chart. I personally prefer the 3 charts.

Kind Regards,

Captain Currency.

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Earlier today prices for the Usd/Cad where below the 60 period sma on the 4hr & 1 hr time-frames (steps 1&2 of the Duck’s system). So we where looking to short this pair at some point when prices crossed below the 60 period sma on the 5min chart (step 3). We got the green light when prices dropped down to 1.0105, all our ducks where lined up in the same direction. Our target was suggested at parity - 1.0000 from our resident Economist, Eric. Well done Eric, your job is safe for another week!

Here is how the trade looked:

Important:By the way, we are not saying that The 3 Duck’s Trading System is the “Holy Grail” of trading, of course it has it’s losing trades & losing runs. We like to use it with our own market knowledge and view it as a common sense approach to price observation.

Enjoy,

Captain Currency.

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Just read your thread and tried your methodology, works pretty nice… well done. :slight_smile: how do you set your TP or exits?

thanks. dave:)

It’s all in the o/p’s intial post.

Stop-Losses: This is where you can make this system your own. If you are a short term trader you may want to put your stop-loss above the highs on the 5 min or the 1 hr chart. If you are more of a positional trader you may wish to put your stop-loss above a high on the 4 hr chart. You could also use a fixed stop-loss, maybe 25-30 pips or more from entry. It all depends what type of a trader you are, so you decide! Another “trick” that may help you preserve capital, If you do sell and prices get back above the 5 min 60 sma by 10 pips (not a good sign) you may want to cut your losses short before your stop-loss. But if you are a longer term trader this may not be a big deal for you.

Targets: Same again, depends what type of a trader you are but target can be support or resistance levels.

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Very useful to have the trade charts Captain. If you are going to make this a regular feature I very much look forward to following along

Hello Tony,

Sorry, no I cant see it been a regular feature to be posting trades from The 3 Duck’s Trading System here on the forum, as much as I would like to - its very time consuming and I think my other work would suffer greatly! I think I even said similiar on the Captain Currency blog. But there is nothing stopping you or any of the other guys from posting trades, I will be certainly keeping an eye on the posts and “drop in” every now and again.

Kind Regards,

Captain Currency.

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Typical Friday afternoon type of trading - not much happening!
The 3 Duck’s Trading System got a few chances to trade in the last few hours. The EUR/USD got a buy, the USD/CAD got a sell, the USD/AUD got a buy. I bought USD/AUD at .8648 with a stop-loss at .8624ish, the target was open but I’d say I would have looked to take profit around .8695. But the move up is sluggish and the trade has been stopped out at breakeven - it was up +22 pips at one stage.

Have a good weekend,

PS: Its not possible for me to post trades as they happen, but I will try and post some of the trades I do using The 3 Duck’s Trading System. (the good ones and the bad ones!!)


Captain,

Thanks for sharing this system. I like it’s simplicity.

For a bit of fun, I demo-ed this on Thursday and Friday during the European session and using mostly EUR/USD, USD/JPY and GBP/USD pairs, I had about 10 winners in a row and only 2 losing trades in all. I will continue next week and see how it goes.

Thanks again.

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Hello Bocajunior,

WOW, you did 12 trades between Thursday & Friday? I did’nt think it gave that many signals. Are you following the “rules” - steps 1,2&3? Gbp/Usd the 4hr was below the sma on Thur and above the 1hr sma, so the Ducks where not lined up on Thursday for cable. Glad to hear you had success with The 3 Ducks Trading Systems, well done, but just make sure you understand and follow the rules.:slight_smile:
I know from past experiences that a trader might overlook some of the rules and this can cause problems futher down the road as he is bascially trading something different to me and others that follow the system. When I say “make the system your own” I mean enteries, stops, targets, adding to winning positions etc. Dont change the bones of the system., the Ducks dont like that!

Have a great weekend,

Captain Currency.

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Of course thats fair enough.

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Folks,

I dont think I was misreading the signals. I maybe confused with the pairs. I’ll post them here after the weekend.

Just to be clear, I was taking trades when the price on all 3 time frames was on the same side of the line.

If they were, on the 5 min chart, I set an entry order slightly above or below the most recent high/ low, with TP at 10 pips and SL about 7 pips. These trades were only open for minutes rather than hours. Maybe I was lucky Thursday and Friday.

Regards

Hello Traders,

Thanks Tess agreed, Bocajunior - not picking on you:), yes you could have been buying a few times when prices where going higher above the ma on the 5min chart - thats not really how I would trade the system, I like to get in on the first move - so to speak. Hope that helps a bit.

Kind Regards,

Captain Currency.

Hello Traders,

Nice trade on The 3 Duck’s Trading System today. A good place to buy was on the small pullback after it broke the high, stop-loss at the last low and the target at the highs. Straight forward enough!

Kind Regards,


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What pair captain?

Hello Tony,

It was Eur/Usd, sorry for not putting that in my previuos post.

Kind Regards,

Captain Currency.

Thanks, appreciate that so I can follow along on my charts

Yes this was nice Captain. I spent some time looking at charts for this set up over the weekend. As you have said it is simple and neat, thanks. Just for clarification is this a strong set up because the 1H has just crossed up so we are taking the first 5 min trend at that point and is this something you generally look for or if the 4H and 1H stay up would you repeatedly enter on 5 min ma crosses and new highs

Hello Tony,

Yes well spotted, prices have been “hugging” the 1hr sma over the last few hours but with prices above the 4hr sma and prices just above the 1hr sma and with prices crossing the 5min sma and breaking the highs - I would have no problem pulling the trigger at that point. Would I repeately enter when the 5min keeps breaking above highs? Depends whats going on around me, news, sentiment, time etc.

Hope that helps,

Captain Currency.

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