You should take some credit for keeping your discipline through the drawdown. It doesn’t matter how many people know the systems, most can not keep their discipline to follow them. Well done and good luck
topo, I could see a good reason why the system was resulting in losses - every time a trend started a/several central banks would start intervening and kill it off taking out my profits. As a result I reduced my unit sizing, but kept trading.
I have now locked in 7225.6 pips since I started on Smith’s system 6 months ago,l but I also have a few things that I do that are not as his book describes them. I have taken some very speculative trades on retractions, eg GBP/AUD short after its double top. I have used the Trend following system, with a sharp drop in ADX to be the same as a climbing ADX in a ‘normal’ Smith trade entry. If I was to wait for ADX to fall and then start climbing again for the short to be entered it would take several/many more days for this to occur.
I hope any trading you are doing is also working for you.
Late spike in the Euro took out my EUR/CAD stops leaving me me losses of 66 and 122.6 pips
yes i started using the SHI channel strategy which i took from this site and it’s brilliant. have you used any of this strategies posted on this site?
robert221, I havn’t used any of the strategies posted here, but reading the SHI thread it looks good, if a touch more complicated than the entries I use.
Having said that I had my NZD/USD entry tripped and it reversed and hit my stop for a 110pip loss over the last 3 days
2 closed today:
AUD/USD Channel entry for -80.6 pips
EUR/USD Multi-entry closes at; -146.2, 190.6, 418.2, 425.5 and 482. for a total of 1370.2
The 2x ATR re-entry system is picking up lots of extra pips for me, but as you would expect the last one tends to end negatively.
whats the ATR system, where can i find it? by the way cyco, what levearage you tend to use?
I’m using a re-entry system that came from one of the Turtle Traders, and they used a lot of stops placed at 2x ATR, (which Smith’s Conqueror system does too) ad so as the stop is moved at the close of each candle if the trend is going with you (I never move it backwards) then the stop will be dragged past the entry point of the trade. This then means that the trade is profitable and has no risk. At this point you can either sit on risk free profit, or take another 1% risk and re-enter the market (assuming that all the entry signals are still positive).
No idea what leverage I’m using…
ok, what do you think about the turtle system? i’ve seen so many strategies, i’m confused to what to use? have you heard about peit swart , forex income map?
i just found smith’s book on the net and downloaded it. any suggetions of the most important chapters to read and to start trading. i already seen a chapter about the bishop signal…
There are number of different ‘Turtle Strategies’ mainly because there was a number of different turtles! From what I have read after the initial training this highly intelligent group where left on their own to develop trading plans over time - so obviously there will be some differences. The best book on their work that I have found so far is ‘The Way of the Turtle’ by Curtis Faith.
With Smith’s book it really is one you start at the front and work your way through. He gives very good explanations as to why each of his systems is run as it is, and the history of their developments.
I have not heard of, or looked for Peit Swart or Forex Income Map.
Today’s market reversals have really taken to my floating profit, and have tripped many of my stops. I’ll try and list them here:
GBP/JPY: -264, -6.6, 218.5, 604.9. Total 552.8
USD/JPY: -93.3, -27. Total -120.3
EUR/JPY: -232.2, 49.9, 290, 425.2. Total 532.9
CAD/JPY: -95.1, 116.1, 301.7, 336. Total 658.7
AUD/JPY: -156.7, -95.8. Total -252.5
AUD/NZD: -7.4
Sum of closed trades: 1364.2 pips
More exits:
GBP/USD: -96.7, 103.8, 290.7. Total: 297.8
Entries:
GBP/AUD: Short
GBP/NZD: Short
AUD/USD: Long
Recent Entries:
EUR/AUD Short
EUR/GBP Short
EUR/NZD Short
AUD/NZD Short
hi there,
The channel strategy in his book , he makes it complicated, do u have to look 20 days of low and then enter? He doesn’t provide an indicator for this strategy only the bishop, what about money , how much money to start with? What lot size are you using? The conqurorer is a hard one to understand.
The way I set up channel is with the 20 and 55 day channels on the chart, and ADX as a sub graph.
Have you read the whole chapter? He starts by explaining the 20 day channel, then moves to explaining the 2 channel concept, and why it is better.
The way I set up Conqueror is with the 10 SMA, a vertical line at 10 and at 40, and the ADX and ATR as sub graphs.
I don’t bother with the maths side of it, I just do it visually:
Condition 1: 10SMA vs latest close;
Condition 2: 10SMA 10 ago vs 10SMA now;
Condition 3: Close 40 ago vs current close.
Do all 3 point in the same direction?
Note, I have different graphs for both of these, and check the Channel one before the Conqueror one. I select position size based on as close as I can get to 1% of my account after calculation stop position.
how do you get the indicator of a channel like in figure 3.1 in the book? also do you look for the highest and the lowest price every day and then you open a sell and a buy?
Figure 3.1 in the book is not to be used. It is an explanation of the basic 20 day channel system that he points out is flawed, and he uses (as do I) a chart that looks like 3.4/5/6
Due to the time frame I have for trading (before work is just after the NY session closes, or after work is when London opens) I chose to trade in the morning for my convenience - the market is low volatility, and it is close to the close of the candle. The only ‘use’ I have for the open of the candle is to see if it gapped.
but how do you get those lines around the bars? are this indicators? i also don’t understand the rejection rule.
so do you enter a position everyday according to the highest price and the lowest for the last 20days? do you put pending orders or instant orders?
Hello Cyco,
Nice job. I have been following your thread on and off from the start. Your consistency and patience with the system is providing a good trading lesson to me and hope others as well. Couple of quick questions if you don’t mind.
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What is your criteria for re-entry? Are you using the re-entry from the beginning since you started this journal?
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Do you have breakdown of your trades as you have shown previously (post #44) for individual systems?
Appreciate your response.
hnk
Robert, not sure what software you are using, but on mine they are called price channels in the indicator section. I have 2: one at 20 days, and one at 55 days. I tend to place the stop (not market) orders on the chart only if it seems likely they be hit - otherwise its just clutter on the screen. Eg I don’t have a Long USD/JPY channel entry on the screen, and wont till the market and the 55 day channel start to close in again.
hnk, The re-entry criteria I have been using is when my last entry to a trade (I will enter multiple times) is more than 2x ATR (40) in profit I will re-enter the trade at 1% risk. Because most of my stops at this point are Conqueror stops this is quite obvious on the screen. I only started using this in May, so I don’t have a huge amount of data on its success yet.
At the time I started using the re-entries I was just listing them as Conqueror trades on my spreadsheet, I am now extracting them from there to be recorded separately and once I have done that my figures will be more reflective of the true nature of the individual systems I am using and will publish the data again. Don’t hold your breath for this though!