Just a quick thought, I think the SL and TP levels are a standard 1:2 ratio of 100:200 pips? Would it not be better to take the average weekly movement in pips over the previous month to set TP levels as these movements will incorporate most fundamentals and then work backwards for a 1:2 RR. Maybe I am complicating things, but like I said - it was just a thought!
[QUOTE=“ILovePizzaMore;540592”] I’ve tried this exact strategy years ago back in my noob years of trading… I manually back tested it on eurusd, gbpusd, and audusd… I can save you a lot of time by telling you it does not work. There is no edge… It is the statistical equivalent of flipping a coin. If you really insist on back testing this yourself… Pick three years to test all the way through… Maybe 2004, 2009, and 2011.[/QUOTE]
Hi,
Did you only test on the 3 USD pairs, namely eurusd, gbpusd, and audusd? One of the main reasons this method works is due to the broad diversification with a standard and constant risk reward.
I agree that it is a statistical coin flip, as you say, but the odds are stacked in your favor due to diversified exposure and price action entry based on the theory that if price moves a third of the previous weeks high/low movement, it will continue in the same direction and likely make a similar pip movement.
The drawback is of course, and not to be underestimated, that this method ignores fundamentals completely.
[QUOTE=“Paulcam;540638”]
Hi,
Did you only test on the 3 USD pairs, namely eurusd, gbpusd, and audusd? One of the main reasons this method works is due to the broad diversification with a standard and constant risk reward.
[/QUOTE]
Yes I tested only on 3 of the most commonly
Hi Peter,
I have looked through the attachment and thank you for the contribution. But what timeframe is used in the correlation table? Since I (and assuming most others too) enter only one or two trades on a certain pair a week, it is important what timeframe was the table based on.
JPY pairs are already known to have a high correlation. Yet numeric values of correlation don’t always produce good analysis. Because not only the correlation of, say, CADJPY and CHFJPY is regarded but also that of AUDUSD and USDCAD shows the weakness of a given pair-macthing.
PS: English being a foreign language to me, sometimes I have difficulty understanding some expressions. Although I am a freelance translator, I can’t have a grasp of all aspects of the language. Would you explain please what you mean when you said you were shocked when I started talking about bearish bars? Do you mean it is an oxymoron that someone having a good analytic approach is now talking about bearish bars?
If you mean studying of the bars lacks consistency in forex analysis, can you rephrase that please?
Thanks in advance.
I also tried to talk about the pip range on the other forum but someone said I should not be greedy questioning the the same TP (200 pips) for USDCAD and GBPJPY. But maybe it’s intentionally designed that way considering the total profits vs. total losses.
[QUOTE=“metin;540795”]
Hi Peter,
I have looked through the attachment and thank you for the contribution. But what timeframe is used in the correlation table? Since I (and assuming most others too) enter only one or two trades on a certain pair a week, it is important what timeframe was the table based on.
JPY pairs are already known to have a high correlation. Yet numeric values of correlation don’t always produce good analysis. Because not only the correlation of, say, CADJPY and CHFJPY is regarded but also that of AUDUSD and USDCAD shows the weakness of a given pair-macthing.
PS: English being a foreign language to me, sometimes I have difficulty understanding some expressions. Although I am a freelance translator, I can’t have a grasp of all aspects of the language. Would you explain please what you mean when you said you were shocked when I started talking about bearish bars? Do you mean it is an oxymoron that someone having a good analytic approach is now talking about bearish bars?
If you mean studying of the bars lacks consistency in forex analysis, can you rephrase that please?
Thanks in advance.[/QUOTE]
Hello Metin, would just like to take this opportunity to thank you for all of your contributions on this thread. A bearish bar means it is selling or going down. A bullish bar means that its going up! I think this is what you was asking? All the best and keep up the great work 
Thank you, Peter. I am glad that we have a decent level of communication with people here. And I feel quite honored to have the chance to contact you and other participants here. As I said before I am but a learner on the way and there are sure a lot of questions I have, especially about fundamentals. I am really really thirsty for knowledge to develop a sense and ability of conducting proper analysis in trading currencies.
One major problem for people like me is sometimes they work hard and finally come to realize that they are only reinventing the wheel. Like my attempt last year to create a currency strength chart which later I found out is already popular to some traders 
The rest of the week is quite busy for me, so I will get back to you and everyone else in the weekend with questions and replies.
Warmest Regards,
Metin
Hello Kimberly,
Actually I am rather creating questions than making a contribution and I am the one who needs to thank people for their contributions. I hope we can learn a lot from each other, that was my sole intention of starting the thread.
And thank you for the explanation. I think Peter was referring to the unnecesity of the considering bullish and bearish bars in market analysis. Seems like we’ll learn many things from him.
Thank you Metin for a detailed explanation!! Very much appreciated!
hi metin,
checkout this thread of toby123
wwwSmellyfeet breakout system @ Forex Factory
(remove the "" from link above, as i cant post link directly)
he is also providing signal like loveislife using stop order stratagy,
i want to ask that how his entry, tp, and sl are diffrent than loveislife?
what mathematical funda he is using?
And yeah check his Journal also which he is created before 1.8 year
here 301 Moved Permanently
my question is that, was he put all trades using the same stratagy?
Hi Peter,
Having a break from the job at hand now, I couldn’t help but log in and reply.
This is one of the most exciting offers I ever received in my life, about learning and improving. I happily take the offer.
Maybe other members here would be interested, so I’d like to say a few things.
I tutor people learning English and the Socratic method which Peter mentioned is the best possible way to train yourself on a matter and I try to apply this method with my pupils every chance I can in their learning processes.
I will perform the tasks given by Peter on this thread and share the results with you. This is a rare opportunity if you are interested in improving yourself to become a trader, so if I were you I would also create my own material and compare the results.
Peter, although this year I have a busy schedule (attending lessons at school, tutoring English, freelance translations and most recently starting my own company), I will make time to exert myself into this and do the tasks. I am already familiar with some tools in MS Excel and I have prior experience to place daily chart data on Excel pages to create graphics of various kinds.
Thank you very much for your great offer and I assure you I will do my best to provide excellent results.
Regards,
Metin
Hi Metin and Peter,
I’m enjoying this thread a lot.
@Peter, If your offer extends to the broader forum, I would be very interested in your input. My only request to others would be to keep it constructive and not wander too far off topic.
Thanks,
Paul
[QUOTE=“peterk;541285”]Sorry guys after recent events on this forum I have decided not to pursue the offer. I found the racist muck that was thrown around on the other thread extremely disturbing and furthermore the claims that the people who presented the material are scammers and then a jerk called Toby123 stealing their idea was all too much for me. I do not want to share any bit of my knowledge with them. Trading is my business and I will not put myself at the hands of two bit players because it is distracting. Apologies to all. I have only been on this site for a couple of weeks and I can assure you that there are some threads well worth reading if you want to be a trader - the one contributor that comes to mind is Mei Hua - analytical, insightful and instructive to all. All the best.[/QUOTE]
Don’t let one person or a few people who are ignorant ruin a good thing for everyone. Just start your own thread and block the ones that get their panties in a wad. Is a post is racist then report it please. Remember that some people don’t have anything better to do than sit in front of a computer. These people like to go around to the different forums and give people a hard time because I have nothing else better to do with their life. If you decide to give those lessons out to people you will receive many good things may times over. So don’t worry about a few people have a very small mind.
[QUOTE=“peterk;541139”]
Toby123 has unsuccesfully tried to copy the material presented by Life. He appears to be a self promoter to the nth degree. For those interested in what Toby is doing please follow the recipe listed below:
Calculate the 21 day moving average of the ATR
- Start with the close of the previous week
- The Buy stop will be approximately 63% of the ATR above the Close
- The Sell stop will be about 85% of the ATR above the Close
- The Buy Target will be 205% of the ATR above the Close
Repeat steps 2 to 4 but subtract from the close.
Here is an example:
AUDJPY ( target 250 pips)
BuyStop @ 94.04 TP 96.54 SL 93.04 … 63% give Buy stop of 94.04, 85% is a SL of 93.04 TP 205% to 93.04
The data points that Loveislife has calculated include some nuances that are not in Toby’s crude estimation. It is beyond belief how people can pinch other’s material and try to take the glory without credit. Plagiarism at its worst.
Don’t need Toby in my hemisphere. I think that it might be time to withdraw from this murky world and go back to trading.[/QUOTE]
I’m pretty sure Toby has been calling his trades longer then loveislife has… Furthermore this is a very well known channel breakout system that has been around for a LONG TIME with many different variations… Loveislife (or his friends) aren’t the first ones to use it… So following your logic they are plagiarizing as well.
Woo take it easy man, did I upset you or something?
interesting hmmm?? … sounds like your a very smart guy!
Hi peterk I must admit after joining last week there has been a lot of strange unneeded comments. I was intrigued by your offer and it sounded very positive if you do change your mind I too would be interested in learning. But other wise any other books, links, recomendations would be appreciated thanks…
Hi Peter,
I’m sorry you decided so. I was really excited to start studying but now that you changed your mind, whatever the reason, I respect your decision. But I must admit I don’t understand why you feel you would be at the hands of those people when you help us on this thread. I am not judging but just wanted to voice my opinion. Nevertheless, thank you for your contributions so far, I did enjoy reading your posts. All the best to you too.
Hi Peter,
I would like to be part of this if possible.
Regards.
Hi peterk
I’m interested in taking part and dedicating time and researching.