What I like about it is the fact that youāve used common indicators to construct a system that has a chance to be consistent in trading. Also, I noticed charts from November 2012 in your earlier posts. Anyone who traded that month knows what a horrible, killer month that was.
Anyway, I was looking at the performance stats on your blog (20 pips a day, 40 pips SL) and wanted to know if those numbers are a result of the Ashi Strategy described here or something else.
Also, have you considered using Schaff Trend Cycle indicator instead of MACD? I usually find it more accurate and a bit faster when it comes to signalling trend change.
Thanks for your interest. I know last month was not the best.
My main intention when I created this system was to have something with gives good result (profit ratio), easy to understand and the indicators must be common and freely available.
that 20 pips per day system, well it is a cheesy system as I call it. I am still working on it. It will be based on London Breakout strategy. In the beginning I thought of using Ashi strategy. But I realized London Breakout would be more appropriate as I need only one (or at least only one) trade per day to win. If I use SL based on London breakout, it would be lot less than 40 pips. It will be definitely very tight Stop loss. As I said earlier it is a cheesy system I want most of the trades to be winners.
About the indicator, I havenāt tried it! If you donāt mind please upload the indicator and will see if that works well with Ashi Strategy. You can alter the system according to your style :59:
I sometimes use it on the 4 Hr TF as an alternative or confirmation to MACD (Thereās an investopedia article on this that can clear things up about the function of this indicator).
Tried it on GBP/JPY with 1 profit. Another trade did trigger but it didnāt go as planned.
This pair is a little volatile right now so Iād consider it a secondary pair to trade with this strategy only if no other setups appear with the regular pairs. Iāll give it a shot after the Japanese elections are over.
Frankly, the overall appeal of the method would be clear only after the holiday season is over and the new year begins. Till that time, itās demo trading for me on all pairs.
Hey on the H4 chart so far so good, got to agree once the holiday season is over i will go live, but i am demo testing until then, but to be fair with Christmas and New Years around the corner im expecting losses soon, so if i manage to get through the holidays without losses then this could be my favourite one
I did have a profitable trade with AUD/USD as well on Monday. The reason I tried GBP/JPY was because of its inherent volatility which reflects very well on ADX. However that volatility can work for or against you. Itās the same case if youāre trading GBP/CHF.
Overall, the method does have potential and is pretty solid (no doubt about that) as long as the trend is in your favor.
