Searching for Swing Trading System & experiences

Let me introduce myself. Im stock swing trader but who is also interested in the advantages of FX trading (newbie in this field). I sincerely believe Im getting a very value information at Babypips (congratulations to the owners… Your School is Great !!!.. keep doing so amazing work)

I have read with much interest allmost all the babypip forum, but I didnt get much information about Swing Trading Systems… Look like the more people are interested (and luckily have the time) in intraday trading.

What about people who dont like to be glued to the screen all day, people who like to trade something longer because trading time schedule limitations (ie…watch, analize or adjust positions an hour daily).

Many traders talk about advantages of longer frames trading, but except one System (hello 1234 trader that stopped posting), I could not find anyother System…What comparision to Intraday Systems that are plenty full…
why?, … I know everyone like fast money, but What about regularity and consistency with Swing Trading??

Can you share your Systems & experience in Swing Trading?

Greetings

I would be interested to know more about Swing traders too…thanks for starting this thread…

Hello analyzer, I totally agree that swing trading would prove to be a better and less stressing and more profitable experience, however when swing trading your stop loss must be very very wide, I am talking about anything from 100 to 800 pips, so when calculating your stop loss and let’s say you have a $10,000 usd account so you risk 2% which is $200 divided by say 600, you’d have 33 cent pips. And correct me if I’m wrong but most of the people in the forums trade a $5,000-$1,000 (I saw this in a poll) so we’re talking about a 15 cent pip or less. IMHO this contributes to day trading where your stoploss is usually no more than 50 pips. But I do think you make a point. Think of the possibilities, if you had a $1,000,000 account then your risk would be $20,000 and your pip would be worth $33:eek: If your trade went bad you’d lose 20 grand as well, but if it went well then you’d be seeing profits of $50,000 once or twice a month. I am still saving to have a bigger account.
I personally swing trade only the pairs with a high ineterest, with a very low pip value as well, but I can hold on to them for a month or two. But I wish there were more swing traders posting systems.
Hope this helps, just my 2 pips.
Good Luck!:wink:

Hi isideb

Thanks for your comments.
First I would like a 1M account… just imagine…, but, "walking at the floor, I have a start amount between 10k - 15k, so probably I�ll open a miniaccount.
As I can read your comments, youre a Position Trader… thats good, but for me holding a position for months is too much time… also not enough money… but can you share your system??
I want to trade with a system that allow me to hold a trade between some days to a maximun of little weeks, and no more than a month… Thats the way I usually trade options also.
I was reading every the posts, and there is only one Swing System, unfortunatelly the author didnt post anymore… Im now backtesting James “between 40-100 pips per day” but using longer frames… Would be nice is dailycharts functions.
Then I will do the same with other posted Systems until I find someone for Swing…

Bests Regards

The system is very simple actually, I just go long or short on pairs that pay interest, GBPJPY, GBPCHF, USDJPY, EURUSD, EURAUD.

On a daily chart, set up a MACD 12,26,9 Close. And that’s it for indicators, wait for a bar on the MACD to cross 0 but don’t enter until you have a higher high or lower low in the bars not in the candles. Here is an example of a trade I took recently on the GBPJPY and it is still open by the way.

If you see I waited for confirmation on the MACD bar before entering, I always enter at the open of a new bar that is 00:00 GMT. Your stop loss is set at the low of the candle that marked the MACD plus or minus the spread and your target should be at least 300 pips, in order to have a good risk/reward ratio. And you wait, collect interest, and once you have a 200 pip gain you move your SL to lock in 100 and let it ride till it gets to 300 or stop in 100 pips. Of course there are some losers, but when you ride the wave you make up for it.

That’s it, you do not get signals very often, but when you do you should take them and let it ride.

If there is anything else I can help you with, do tell!! :smiley:


Thanks for posting your System… and its really simple.
Do you use another indicator o another time frame for get the trend… or you open trades in any direction no matter the trend of the pair? that means open if you open transactions only if they are with the main trend…
How much time trading with it, and can you say your average results? Are your trading with mini o normal accounts.
I didnt understand well your first post about your example with a 10K account with a risk of ie 2% and then divided by 600 that equals 0.33 pips… Can you explain it better?
Can you recommend the best ammount that work best with your system

Best regards

There is a new thread :

My e-book for trading daily…
by michaeldunbar

posted in the Free Forex Trading System Root… For everyone who like Swing trading and dont like to be hours glued to the screen can be a possibility.

Best Regards

As i wrote before, I was testing James System 2 (he usually use it for 15 m, 1hour charts) but, as Im interested in SWING TRADING, I watched for daily chart for GBP/USD

Here are the backtest Results (from january 1, 2005 to now):

  • 31 possible trades
  • 7 loss trades and 24 winners
  • Total Profit Pips: 4770

I used a larger stop loss: about 50 pips up or down (for short or long trades)the previus IB, and rarely use a trailing stop for exit loss

I would like your opinions about these results (specially from who trade SWING)

Best regards

Pd. If anyone is interested I will put a resume of each trade (dates of IB, open date and price open, close price and date and profit or loss)

This is a copy that I put also at James 2 System thread

Hi everyone
I have just finished backtestin James System for Daily Time frame… For me the results seems good… What do you think about them?.
***I made some corrections to previus reports (involuntary typying errors)

No more words, just look at:
:wink:


I am quite new to forex but I have been using a combination of swing trading and other methods. At times I have made excellent profits but I did experience a loss in February but I wasn’t alone in that.
I am now trading EUR/USD and USD/CHF as a swing trade but am also combining other strategies while I’m waiting for a favourable move. At the moment it has stagnated (for 2 weeks)but I’m happy to wait for my profits and meanwhile collect swap to sweeten the pot. I am thinking of exiting this position at a loss of some profit only so I can reposition myself at the current prices.
Any opinions on that?

I do not mean to attack you. I am new here and your explanation of a swing trading system scared me and so I thought I will clarify my perspective.

Firstly, I am a swing trader too. My trades last anywhere between 3-7 days. My re-entries of the same signal last 1-2 days.

Till date, my stoploss has never been grater than 100 pips. The stoploss doesn’t really have to be 200 or 300 or 600 pips as you stated. It isnt about the numbers. It is about the point where you place your stoploss. I use support and resistance to place my stops and almost always have had them in their proper place. Do not place the stops blindly, but let there be a reason, such as a support level, below or above a round number, etc.

Thanks
PipDawg

HI
i m new to tradying could you please tell where can I read about James System, ?
thanks in advance

Hi, you can follow this thread: Forex Forum > “The Holy Grails” > Free Forex Trading Systems > Between 40-100 pips per Day.

James System: Between 40-100 pips per Day requires you to read all the pages for understand and do not repeat the same answered doubts again.:wink:

Hope this help you.

Hi everyone. I have read this, like an iceberg it contains more than its on. enjoy it…

The shorter your time frame, the greater the ramdomnes of price movements.

Since the market is reasonably efficient the prices wont differ too much, but
that of course is a function of your time frame. The smaller your time frame, the greater this distortion Two or three pips difference in a day wich average a 100 pips movement is far less significant than two or three pips in a ten minute period averagin only, say, a seven pip move. On a risk management level this also amplifies the risk exponentially. Its simply not true that you can apply universal risk management principals of risk reward, stop loss and other parameters on all time frames.

A coin, like a five minute graph, has no memory. Just because it has come up heads eight times in a row, it does not startto “adjust itself” in order to provide the required probability balance of a 50/50 ratio over a given number of flips.
Five minute charts are the same. They are like coin flipping. These 5 minutes periods have no memory. So why watch them for signals? People do, but very few make money from it. Those that do are doing something else besides, they are doing the right things using the wrong methods. They probably have a good grasp of the fundamentals and the bigger picture, trade with discipline, have a sound money management strategy, and so on.

[I]Short time frames give you no information that can turn a random series of price events into a series with higher predictive certainty.[/I]

Bird watching in a Lion country

Best regards.

Need max cons win/loss to really determine whether this will work. Need to see max run up and draw down to determine whether the equity curve will be too volatile to trade for some. Do you have these statistics? (Or did I miss something?) You will also need to post the postion sizes used. If you are trading this on an account funded with less than 10K, don’t even think about trading a minilot or larger if your system experiences a bad run. Trade in microlots! Also, there are too few trades here to really know whether the system will work over time. IMO, you would need more than 200 trades to validate the results posted. Backtesting to 1990, when the market was very different, would be helpful.

Cheers

Yes, try trading non-correllated pairs.

Yes your right in your opinions… By now Im dont plan to continue backtesting the system (any backtest will not predict future results anyway)
Im at the live trading room for grasp ing the IB System, and after aply it for longer time frames (daily or 4h charts min). This is my goal for live trading, find a swing system wich I feel confortable to trade with.

Best regards.

Hi everyone & to Analyzer,

I agree with swing trading will give a good return. But I don’t have to agree that swing trading need that great distance of stop loss over 100 pips or more. I have been trading the forex market for over a year and use both the day & swing trading for certain type/pair of currencies.

I day trade both the EUR/USD and GBP/USD and swing trade the GBP/USD pair. Reason for swing trade with GBP/USD simply because it’s volatile but stable. My swing trade usually last not more than 3 days as it will usually hit my profit objective by then. And for stop loss I only use the minimal 60 pips from my point of entry.

I suggest everyone who wish to take swing trade to simply learn the technique and trading system from the following site, which proves to be effective in my forex trading:

The e-book will explain in great details when & how to make entry for the swing trade. It really helps in my trade and very easy to implement once you understand.

Happy trading guys. :wink:

To Analizer and Isydeb :

Would you people be so kind as to explain the procedure which you use to post and insert those thumbnails.

I am still having some problems inserting charts and am not too happy about the web performance of “imageshack” which I am using.

am also a day trader but i will also like to improve on my performance,i will be glad to have website where simple swing trading system is clearly cut out .thankz guz