I only trade the majors and I keep it simple I trade the 4HR and 8HR charts I only trade in direction of current daily trends and I use two things to trade
1Slow Stoch
2. Trend lines
I trade in direction of the trend
I wait for an over bought signal to go back under 80 level to open my short trades
I wait for an over sold signal to go back over 20 level to open my long trades
The 4 hour and 8 hour charts allow me to get a way better Risk/Reward Ratio
I place my stop at the pairs Hi/ or low above or below my entry point , becuase everyone knows your still in a trend until the pair makes a higher hi or lower low.
My trading system is that simple and the thing works so why change it.
What sort of results are you getting,are they consistant.I suppose its got as much chance as some of the rediculously complicated systems we see on here,I suppose this will get poo pooed the same as usual.But I.ll watch and see how you get on and good luck to you and keep us informed.
Isn’t using stoch in trends a no no as overbought/oversold signals are continual?
Do you determine the trend direction with purely trend lines? What if the pair isn’t in a obvious trend, do you pass up the pair?
Simple is good btw, I’ve backtested many complex systems including some of the presumably simple ones like Hucks Crossover systems and a few others. Results were poor across the board with a variety of inputs.
I’ve lost hope in automated technical trading if I’m honest, having written EA’s for many the back testing results are never good.
A objective discretionary approach seems best to me… if that is even possible
Im really glad you wrote this Everton (and Im sorry to the original poster,and I will still watch this with interest)but its what Ive felt for some time all these systems dont seem to work ,well not for me anyway,the one I liked the most was Hucks crossover which you mentioned,but even that dident work out too well ,as you say the discretionary approach may be best but good luck to all who try anyway
I’m still early on into my forex career so no guru by any standard but I’ve learnt regardless of what indicators/edges I trial the long term performance is always flawed by the randomness of the markets (currencies in this case). I have no doubt you can use a “when suits” strategy to capitalise on certain conditions but you have to be just as quick getting out as you were getting in when the market proves your edge/strategy wrong.
Having trailed around 10-15 systems in the last few months and writing EA’s to backtest I’ve not found one consistent winner. Lately I’ve been spending more time learning harmonic patterns which is really interesting material but if I’m honest it all sounds very astrology like to me, the self fulfilling prophecy & crowd psychology part of these type of patterns definitely make sense but as Mark Douglas says (Author of Trading In The Zone - exceptional book btw) it only takes 1 trader anywhere in the world to negate the possible outcome of your trade… just one!!!
I know I’m going off topic here so I apologise to the topic creator!!!
Lately I’ve been trying out a new strategy which is gaining validity and it involves working with the only 2 constants I know about the market…[B][U] price will go up or price will go down[/U][/B]. Effectively what I’m trailing is a strategy which after each new candle determines if the opening price is between the high/low of the previous candle… if it fits that criteria then place a buy stop and sell stop at either end of the previous price of the previous candle. This way I am hoping to trade in whatever direction the market momentum moves in… obviously it’s susceptible to whipsaws which is what I’m trying to accommodate through scaling up positions when a trade goes in a specific direction. Apologies if this is difficult to read clearly I’m in the very early stages with this strategy but now that I’ve accepted I have no idea which direction the market will move in, my efforts are more focused towards using the information I have available to me to potentially cover most outcomes (out of the 2!). My Backtesting continues and if I find anything ground breaking you can be sure I will post it here.
If you come across anything worth sharing I’d be happy to hear, email me at <[email protected]>
Sorry whyme to highjack your tread but this might be another good one for you to try.Everton I might have a crack at this ,you never know,Ive tried this on NFP but it was too volatile and I got busted out both ways,but it could work on non news markets.Yeh the scaling up aproach could work.Thanks for the idea,you to whyme.
Almost no one can win on something thats RANDOM. To show you how random the price change is, go to excel, type zero on cell A1, then on cell A2 type the formula =A1+norminv(rand(),0,1), then copy cell A2 downwards to as many cells you want, say 500 cells down, then make a line graph out of it. Like what you see? now press F9 for the random values to be reevaluated, and keep pressing F9 to your hearts content. You’ll see extremely familiar charts. Hey, many even have the Elliot waves, 2-3 point resistance and support, heand-and-shoulders, and so on… and thats from random numbers! cant really stress enough that almost no system (simple or complex) can consistently win at forex, that because there to mathematical expression to exactly compute the next random number, thats why its called RANDOM…
But as you people may have noticed, I said “almost”. Because the only thing close enough to getting few bucks out of forex is SCALPING. But even scalping is a pain in the a**; namely slow connections and your broker using the VIRTUAL DEALER PLUGIN on you…
Now, if anybody out there can say that I’m out of my mind WRONG and has made consistent decent profits from forex trading alone, then PLEASE enlighten me…
Can anyone recommend a US broker that offers a platform with 8 hour charts? I’m trying to avoid MT4 and 5. I know that FXCM Mini has 8H, but that account has pretty high spreads and is not ECN. Any US ECN brokers, or brokers that accept US clients, with low spreads and 8 hour charts? Yes, I’m looking for the Holy Grail broker.
Oanda has MANY time periods on its proprietary chart system including 8 hour charts (best broker I have used). Oanda also has a conventional MT4 chart system that does not include 8 hour charts.
its not random. Just zoom out until you see what is going on…
example… GBPUSD… People have been selling the pound since brexit… That’s not random.
There are lots of smaller timeframes you can see patterns too. You can see them… You just cant interpret them.
You can see the most volatile part of the day? You can see the quietest? Can you see the same things repeating at the same times? look closer…
If it was random, system from post one here would not work either.
Whilst I agree that forex is not random (maybe unpredictable, but not random) I would be a little careful about assuming that the OP system does actually “work” - It was posted here [U]4 years ago[/U] in Aug 2012 as:
But, already [U]in June 2013[/U], only a few months later, and in his last posts on this site, and in another thread, he wrote:
Seems that at least the slow stoch had got the boot by then…
Maybe if Whyme250 occasionally still passes this way he might give an update on the fate of the OP method…
yeah, mostly totally unpredictable on smaller timescales. Looking at history to predict the future puts you at a disadvantage from the start. Fundamentals are much more reliable.
Yeah, i am sad to say that just about every system on every forex site just does not work. People try to find patterns that dont exist.
There are patterns but you are probably super autistic if you can see them on a live chart!
Dont even get me started on price action…
It seems the best systems are automated. Only because for them to work, they have to be based on real repeatable patterns.
As you noted FXCM offers a Mini account type with dealing desk (DD) execution. We also offer a Standard account type with No Dealing Desk (NDD) forex execution. FXCM offers Mini accounts to traders looking to start with as little as $50, and Standard accounts for traders looking to start with 5k or more.
You mentioned that you consider our Mini account spreads to be pretty high. It’s important to keep in mind that with our Mini account spreads, there is no separate commission charged on your trades. By contrast, accounts trading on Standard spreads are charged a separate commission. That makes the total transaction cost (spread+commission) on our Mini accounts competitive with FXCM Standard accounts as well as alternatives from other brokers.
It’s worth noting the base price used for DD execution on Mini accounts before adding the spread markup is the same base price used for NDD forex execution with the spread+commission pricing model. That’s a key reason you can have confidence trading with FXCM regardless of the account type you choose and why the latest CFTC data show FXCM accounts for more than one-third of all retail forex client funds on deposit in the US.
