I have been playing with various settings for a while and have come up with something which MAY have potential.
I have followed other forums here for years, and this is the first time I have suggested one. I am not a seasoned trader, so please be kind to me in your criticisms!
I should also say that the idea was sparked by another thread (Parmar I think), so is not totally my own, but I have adapted it.
Firstly, the facts. EURUSD: Based on statistics from the beginning of this year, this pair has a movement of at least 30 pips (up or down) over 87 percent of the time, on the daily chart, and a movement of 50 pips over 70 percent of the time. Therefore my aim is to catch 30 pips at a time.
At the opening of a new daily candle I do the following:
- Place a buy stop 20 pips higher than the opening price
- Place a T/P 50 pips higher that the opening price
- Place a s/l 15 pips lower than the opening price
- Place a second s/l 20 pips lower than the opening price
- Place a third s/l 25 pips lower than the opening price
- Place a fourth s/l 30 pips lower than the opening price
Hence the ‘Quad’ in the system name.
If the trade is hit, the scenarios are:
a. 4 wins = +120 pips
b. first s/l hit, other three win = 75 pips
c. second s/l hit, other two win = +25 pips
d. third s/l hit, other one wins = -30 pips
e. four stop losses hit = -90 pips
The second part of the system is to do exactly the same with a sell stop, with all the appropriate figures reversed. Hence the ‘Double’ in the system name.
I should mention that I do not cancel the second direction trades if one has hit. On many days the EUR/USD goes both ways, and gets all eight. (Although it can also lose all eight!)
I started this at the beginning of trading last sunday evening. So far this week there have been eight trades opened. The first seven gave me: 4 with all 4 hits (480 pips), three with all 4 losses (270 pips) giving 210 pips profit.
However, at this moment, the second direction from last night has been triggered, with the first s/l being hit (-15 pips). The other three are still active but keep moving above and below the opening price (watch this space!)
If the final three fail, I will have finished the week with 120 pips. (If they actually go positive, it would be 280 pips - here’s hoping!)
So there’s my suggested strategy.
I realise there are ways to alter this: when I checked this morning, the first direction had all hit for profit, and although the first s/l on the second direction had gone, the other three were as high as 20 pips each. I could have closed them out then and guaranteed a profit on that direction as well (albeit less than target) but I wanted to see what the system did on it’s own as a ‘set and forget’ idea.
I also realise one week is nothing in trying a system, next week might be a wash-out. But you have to start somewhere…
So, any thoughts / comments (polite please!) / suggestions?