Yes the issue of using support and resistance levels is exhaustively covered in the thread on other technical templates and this is a very smart strategy to develop. Try to get rid of the greed issues and look dispassionately at your results as you go forward. If you can extend a proportion of your trades beyond a 1R return this will give you a better margin of safety. Having said that I successfully trade 1 strategy that has a 1R return with a 60% win loss ratio If your 20 pip daily return is based on a 20 pip average stop then your percent return is equal to your at risk capital. Hence if you are using a 1% or 2% risk model then that is your daily return. This is a phenomenal amount of money over a year. Even if you managed only 20 pips per week you would have a compound annual return of over 130%!
I meant to say that it sounds like you (and codybear) do better with this strategy than I could in backtesting it. I used it as James describes it but used a standard 20 pip stop, 40 pip profit and assumed a 1 pip spread. In my test between Aug 06 and April 07 it had 7 winning and 2 losing months and returned a compound 204% (using a 2% risk model) which isnt shabby. The only trading issues I came across were what to do if you got a counter signal while still in a trade (i elected to ignore it) and the selection of trading hours which for me has to be during the afternoon and evening here in Australia which meant a number of good trades were missed in the NY afternoon
Like your attitude Cody, should keep you safe and winning
Hello Tony,
I have the same dilemma. My shift work usually goes from 6am to 4pm (Im in Perth WA) and I find it hard to get into trades anywhere except the London open, when I get home from work. Fortunately there is usually a good signal to enter a trade at this time, so like Cody, small but positive trades are the objective.
I have a couple of questions, do most traders trade part time outside of a regular job? What is the trading timetable over the christmas, new year’s break?
Best of luck to you Tony and all others on this thread, hope you have lots of successful trades this week.
Thanks
Pipdemix
hope no one already asked this…but can u use this on other pairs…seems like u can but why did he base it on the eurusd?
Dont know about the part time bit but I assume so since very few are going to make a living from this. I tend to shut up shop over Xmas and New Year. Markets are open most days but volumes are light and movements more erratic than usual
Good for you Cody. The daughter thing is something to be real proud of
Newbie here trying to demo this system. I noticed a difference in the SAR between the charts at dailyfx.com chartstation and the chart included w/fxcm demo account. The dailyfx SAR went bearish at 01:00 11/23/07 and then bullish at 11:00 the same day. The fxcm SAR went bearish at 03:00 11/23/2007 and didn’t go bullish until 02:00 at 11/26/2007. Depending on which charting package you were using this would’ve had a significant impact on how many trades you take and pips profit/loss.
Same issue right now with the period ending 07:00 11/26/2007. DailyFx SAR now bearish, FXCM still bullish. Any ideas why the difference and which one to trust?
Thanks for all of your posts, and thanks to James for posting this system.
We have noticed this well over on the PSAR Thread and was discussed without any real conclusion as to why this is the case. I think it depends upon the opening and closing times of different candles at different brokers but am not sure of this. But you’re right, it would be a problem.
hi for all
i am new in forex & new here
i am searching for a good strategy to trade with it
could anyone help me?
Hello saiid
There are strategies available on the “The Holy Grails” thread of this website. They range in complexity so noting that you are new to forex, I would suggest that you …
- Do pipschool to learn the basics.
- Pick a strategy from “Holy Grail” that appeals to you.
- Demo trade for a few months with your “Holy Grail”.
Repeat steps 2 and 3 until you find a consistent and sustainable result, i.e. a strategy which works, fits your lifestyle and helps you on your way to long term financial goals. No get-rich-quick ideas!
Regards and all the best
Pipdemix
P.S. Thanks Tony about the Xmas and New year heads up.
I am using MT4 and MACD only has one line passing through. On the example James gives there are 2 lines crossing. Am i missing something here?
thank you very much Mr.
I had a look at your system and unless i am doing something wrong you would not have gotten a signal on eur/usd at all yesterday. And in the process you would have missed out on 100 pips
Thanks for the one of the best strategies! So far works great!
Pa �e enega Slovenca.
Kako vam gre ta strategija? Kaj uspeha?
Lep pozdrav,
Why would you post a chart that actually illustrates how there would have been a trade and then say how there would not have been a trade? By my math it looks to be three entries and exits. First profiting 100 pips. The second profiting 20 pips. The third breaking even. Perhaps you have a failure to understand how this system works.
This is the second thread you’ve alienated with your foolishness. At any time feel free to admit your error and your blatant ignorance. I’m quite sure some of us would accept your apology.
Well he is a pro, after all he told us so. Strange he hangs on amateur boards wasting time on all of those of us who clearly know so much less than him. We should be grateful to him shouldnt we for showing us the error of our ways?
Hello all,
Hope you all had a good week trading. NFP seemed a bit of a fizz but there were plenty of pips to be sold throughout the week.
Where would I find information regarding taxation liabilities on FX profits in Australia.
Best of luck for the next week.
Thanks,
Pipdemix
First of all, thanks to James for posting your strategy, and to all the others that have helped out.
Has anyone narrowed down the times to trade this? I assume it is best to avoid trading after 12 PM (EST) and stick to the New York open between 8 and 12, and also maybe the Asian session after 7PM? I can’t trade the London session, I need to sleep then. Or maybe it is tradeable all the time as long as one uses the ADX on the 4 hour chart? Any comments appreciated. Thanks!
Hi all,
I once followed this thread, but got lost when i started trading another system and other pairs. Want to start trading Eur/Usd again and this system.
The last post here is weeks ago. Just want to be sure anyone is still trading it. Is it profitable? And please someone update me with the latest indicators and settings.
Hope someone will respond asap.
Thanks
kz
Hey all,
just wanted to say that the first time I used this strategy I made +184 pips, so for me this system works.
peace