45 Pips Per Day System Eur/usd

fxsterling · July 25, 2008, 8:54pm

huispan:

Anyone still using this system?

I have been using the 3hour and 1hour variation and I’m having good results. I have increased my account by 13% in the last month. Nothing extravagant, but a steady percentage none the less. I’m more than happy with this, because I know these are obtainable results which didn’t expose my account to any huge potential losses like or colleagues who make 100% per month but expose their account to huge potential losses.

Just to recap the system if someone would like to give it a try. It was originally a 4hour and 1 hour system, but unfortunately OANDA doesn’t have 4 hour charts so I had to make do with 3 hours, still good results though!

On the EUR/USD chart, create a standard PSAR indicator on the 3 hour timeframe. Wait for the dot to “change direction”, i.e. go from below the candle to above and vice versa, then change to the 1 hour chart and go short or long depending on whether the dot is above or below the candle. I set my S/L to 50 pips and my 1st take profit on 50 pips. I then move my stop loss up to 1 pip above my entry price so that all profits are locked in. Stay in your trade until the dot on the 1 hour “changes direction” and then close your trade. Then go back to your 3 hour chart and wait for the “direction to change”. The direction is just merely the trend, where the 3 hour trend indicates the longer term trend and the 1 hour the shorter term. That is pretty much it in a nutshell.

Any questions or comments, shout.

Does this changing from 4 hr to 1 hr parabolic work well only on EURO or does it also work on all pairs? What if the 4 hr and 1 hr begin by going in opposite directions? You can’t trade it then? Please let me know. thanks

brian_burgess · July 27, 2008, 10:14am

Hi,
I downloaded the parabolic alert file but not sure how to use it. Can somebody help please? I’m still very new to all this.

felix.khafx · July 28, 2008, 10:15am

hi james this is Felix
james one year ago you gave send the group this file can you explain it to us in the room this week , the part of the diffrent strategies in the minor and the major trends

i attached the file
thanks james
Felix

kaybee123 · September 30, 2008, 5:58pm

Hello All,

I have just stumbled upon this on the weekend (real credit crisis time) bad timing I know, but demo ran it today, with nice results 515 pips, maybe lots of beginners luck on the strength of the USD during the EST morning, but the signals indicated it. However this is trading news candles, which i see is not recommended, in the babypisp schooling and on this thread.

So my question - Are people still actively using this system - from the original post from James ?

Cheers

kaybee123 · October 1, 2008, 3:55pm

Thanks Codybear, so it seems you moved onto another system. I read this thread in detail and noticed you were quite active. Have you moved onto another system (perhaps also documented on this forum) that you could recommend.

Cheers

dvirga · October 5, 2008, 5:28pm

codybear, would you mind sharing your scalping method? I’ve come to the conclusion that I feel more comfortable scalping also. I’m looking for a method that I could trade around my work schedule(1100 - 1200 GMT, 2100 - 0300 GMT).

Thanks for your assistance

zipster31 · October 6, 2008, 8:02am

Hello James, I have emailed you ref joining your group but had no reply. Junk box issue maybe. Look foward to hearing from you soon.

zipster31

jokubka · November 12, 2008, 5:54am

Hello everyone, does anyone have an alert for this system to work on metatrader. Great system trading 2 moths with it, thinking on going live soon.

The_Snowman · November 12, 2008, 7:22am

please feel free to post the charts of a demo trade… thanks,

dobro · November 12, 2008, 10:13am

I am thinking of going with this strat. also. I will be doing the 4H, 1H Psar only per TennPips post. I love the action of the shorter TFs but I lose my you-know-what every time. I think I tried this very early on when James 1st posted it but the 30M TF and not seeing if there was a decided trend faked me out. “If at first you don’t succeed, blah, blah blah etc.” Thanks all and if I can manually do well with this then I will try TennPips alert as I don’t mind hanging around the house until the NY mkt slows down in mid-afternoon. d.

I assume both TennPips and Huispan use no other indicators unlike the original that used MACD - correct?

dobro · November 13, 2008, 12:11pm

Using the 4H & 1H strat. today on the EUR/Chf I grabbed 126 pips. I started scaling in @ 1.4915 and 3 trades later got stopped out @ 1.5008. One loser for -23, SL too tight at that time. As soon as I learn how to load the alert indicator I look forward to some good trading yet being desk free. The only worrisome thing about the alert is that by waiting for a PSAR reversal one might give back too many pips. We shall see. Thanks again to you both, d.

crap - I bailed out too early as the pr went to 1.5200 and I missed another 192 pips. Not that I’m unhappy with +123 but +315 would have been a lot nicer. Oh well, other trades await I’m sure. d.

bnbb2004 · November 20, 2008, 12:17am

TennPips,

Could you please tell us what S/L you are using for your approach? Which of the 11 pairs have you found success with? Also, what are are PSAR settings and do you only use the PSAR indicator alone when placing your trades with the 4H/1H method? tIA!

yiwanyii · November 26, 2008, 11:48pm

thanks for the indicator.

bnbb2004 · December 2, 2008, 8:20pm

Good Pipin Dobro!

Could you (TennPips or Huispan) please tell us the Psar settings that you are using? TIA!

dobro · December 3, 2008, 12:23pm

I use default. But my personality needs more action so I’m looking at other strategies too. d.

funyoo · December 4, 2008, 8:07pm

TennPips:

Hi fellow traders

I use the psar indicator only when I trade. On the 4H chart, I take the trade when the dot reverses. I immediately change my chart to the 1H and stay in the trade until I get a reverse psar. This system works nicely.

Attached is my psar colored alert. Set it for 4H only when looking at 4H chart. When 4H alert goes off, trade in direction of psar 4H. Go to 1H chart, change settings on indicator from 4H to 1H. Stay with trade until 1H alert goes off and you exit trade. Return back to 4H chart and change indicator settings back to 4H only. This works on all currency pairs.

Example Chart #1 is a 4H chart with psar change shown. I then enter trade in direction of change.

Example Chart #1 is the same currency pair but now shown in the 1H chart. I change the psar colored alert indicator from 4H to 1H. This will allow me to be alerted when the direction changes by the alert which is audible and a popup window. I then exit trade. But in this chart, the direction is still strong and I am at 100 pips in 14 hours of trading. I will stay in trade until the psar changes direction which I will then exit the trade. I then change back to the 4H chart, change the indicator to 4H only and wait for the next psar direction change.

I can do this with 11 currency pairs and average 170-250 pips a day. I average 5-6 currency pair psar trades a day. I trade fulltime which allows me to turn my speakers up loud and be anywhere in the house waiting for the next trade.

I trade big lots… and this system is very profitable.

Good Luck

(Charts and indicator were added. I have no idea why they are not showing up here).

Hello,

Thanks for sharing this.

fastlanebroker · December 6, 2008, 10:05am

I decided to go with this system also and I just want to say that you should be very careful with the Parabolic SAR indicator as it’s not the same on all platforms. I use IBFX and Oanda for live trading and I tested the system on both platforms.

Few days ago when I started with this system I had both platforms opened to see how the Parabolic SAR behaves.

I like to call the long dots (below) the uptrend and the short dots (above) the downtrend just to make it all more trader-friendly. The downtrend was about to end and the MT4 was still showing the upper dots while on Oanda an uptrend dot appeared and I went long immediately. Looked like Oanda was a bit faster in spotting the “trend” and that made me +pips. Just after the third dot appeared on Oanda, the first one appeared on MT4. So I was like, yes man!

Yesterday the MT4 was showing a downtrend and then the opposite dot appeared on Oanda so I thought I’ll go long. I was wrong because Oanda draw an uptrend in the middle of the downtrend so I was like surprised and not so excited anymore. Good thing is I don’t use SL/TP and the Parabolic SAR on the MT4 just started with the uptrend so a bit of falling went back up and I still made profit. If I was to watch only MT4, I would’ve been good and if I was to watch only Oanda, I would’ve been bad because I would get scared and end the trade with a loss but looking at the MT4 at the same time I knew it was just a little retracement so I left the trade and I made pips.

I took a screenshot of the situation and rounded it in a Paint, please take a look at it.

Notice how the price went down dramatically and according to Oanda the uptrend started so if you went long that very moment the dot appeared and closed the position at the OPEN PRICE of the candle before it, you would’ve been profiting BUT it’s very difficult to know WHEN to get out of the trade. You would’ve thought the uptrend was about to continue so if you stayed in the trade (just like me) it would mean a loss. But luckily I was also watching the MT4 so I knew there was something fishy about the Oanda chart and I stayed in the trade and went out positive.

So there’s the proof about Parabolic SAR not being accurate on all platforms or even accurate at all BUT is it really inaccurate?

If you look at the history of a Parabolic SAR on a MT4 you can see that if you go in a trade on the first dot and out on the last dot (the first dot of the opposite direction) you would always go out with a profit but in the mean time there would be some swinging up and down and if that doesn’t scare you, with a big equity you’re safe in my opinion.

And is the Oanda really inaccurate? Can both Parabolic SAR settings be accurate at the same time while showing different results? I think YES and I don’t know what settings are used on both platforms but it looks like the MT4 is showing a bigger picture while the Oanda shows smaller bits in between. So by looking at both platforms at the same time, you can make even more money by taking advantage of the retraces which Oanda is showing.

That’s just my opinion.

fbxnet · December 6, 2008, 1:12pm

fastlanebroker:

Yesterday the MT4 was showing a downtrend and then the opposite dot appeared on Oanda so I thought I’ll go long. I was wrong because Oanda draw an uptrend in the middle of the downtrend so I was like surprised and not so excited anymore. Good thing is I don’t use SL/TP and the Parabolic SAR on the MT4 just started with the uptrend so a bit of falling went back up and I still made profit. If I was to watch only MT4, I would’ve been good and if I was to watch only Oanda, I would’ve been bad because I would get scared and end the trade with a loss but looking at the MT4 at the same time I knew it was just a little retracement so I left the trade and I made pips.

I took a screenshot of the situation and rounded it in a Paint, please take a look at it.

Notice how the price went down dramatically and according to Oanda the uptrend started so if you went long that very moment the dot appeared and closed the position at the OPEN PRICE of the candle before it, you would’ve been profiting BUT it’s very difficult to know WHEN to get out of the trade. You would’ve thought the uptrend was about to continue so if you stayed in the trade (just like me) it would mean a loss. But luckily I was also watching the MT4 so I knew there was something fishy about the Oanda chart and I stayed in the trade and went out positive.

So there’s the proof about Parabolic SAR not being accurate on all platforms or even accurate at all BUT is it really inaccurate?

If you look at the history of a Parabolic SAR on a MT4 you can see that if you go in a trade on the first dot and out on the last dot (the first dot of the opposite direction) you would always go out with a profit but in the mean time there would be some swinging up and down and if that doesn’t scare you, with a big equity you’re safe in my opinion.

And is the Oanda really inaccurate? Can both Parabolic SAR settings be accurate at the same time while showing different results? I think YES and I don’t know what settings are used on both platforms but it looks like the MT4 is showing a bigger picture while the Oanda shows smaller bits in between. So by looking at both platforms at the same time, you can make even more money by taking advantage of the retraces which Oanda is showing.

That’s just my opinion.

two things… 1) no system works 100% and 2) that was no retracement… it was non-farm employment change, unemployment rate that caused that.
Remember not to trade any systems when important news come out.

fastlanebroker · December 6, 2008, 1:16pm

If that was a result of a NFP shouldn’t the candles go up?

jim0120 · December 8, 2008, 3:47pm

News releases , especially NFP, can make price movement very chaotic. I watched the GBP/USD on this last NFP release and it went directly opposite of what would be expected, in other words the USD got very strong in the minutes following. That is one of the reasons trading the news is not recommended. Later that afternoon, the USD finally got weaker and the GBP/USD went in the expected direction. Results of news are not always instantaneous. Good luck in your trading.
Jim