My K.I.S.S

[jester2630]

Hi Everyone!

First off, I really apprecaite everyone sharing their systems with me and now I feel I can give back to the community. I want you to bear in mind that this isn’t an original system, I’ve picked up bits and pieces from what I consider the best approaches to technical trading forex. I then assembled the different pieces and filled in all the questions I have ever had while trading. I would love any input by you guys because I’m still new to this but feel I have a solid understanding now. Let me know your initial thoughts and any way I can make this sytem even better!

I’d like to let you know my results:

Over the past three weeks that I’ve been using this method I’ve had 4 losing trades resulting in a total loss of 25 pips and I’ve had about 22 winning trades for a total of about 132 pips. I’m up over 100 pips for my first system I’ve ever developed. Not a great win to loss ration per trade, I usually risk 10 pips to gain about 6 pips, but my trades are very successful.

The reason I developed this system:

It seemed that every system I used had a bit of gray area about either the stop loss or the take profits, not everything was outlined. I got tired of the uncertainty and never knew when the “right” time was to execute a trade. This could be due to my limited experience or maybe some misunderstanding but I’ve finnaly found a way to trade forex and not be concerned about the unknown.

Okay Lets get to the point already!

My System:

Indicators:
Bollinger Bands - 10 period
(Smoothed) Moving Average - 14 period
Stochastic - 6, 3, 3
MCAD - 5, 9, 4

Time Frame:
15 minute

Pairs:
USD/JPY, EUR/JPY, AUD/USD, USD/CHF

Time:
8:30pm EST til Midnight
Most of my trades take anywhere from 15mins to 2hrs to complete, I’m usually done by 10pm EST.

Days of the week:
Monday-Thurs

How it works:

I watch to see the candles touch either the top or bottom Bollinger Band (BB). This touch can be the wick or the candle, doesn’t matter. Once I have a touch, I then begin to watch the Stoch indicator. I look for a cross in the lines. Once the crossover occurs, I wait for the candle to close. As soon as the next candle opens, I enter a trade in the current direction of the bouce (if it touched the bottom band and is moving up, I buy and vice versa.) When the order is made, place a stop at the wick of the candle where the bounce had occured. Your take profit will be right where the moving average line is located. I never have my stop more than 15 pips and my take profit is either at the MA or 10 pips, which ever occurs first. Sometimes I’ll leave the trade if the price stalls for about 5 mins near 2 or so pips before my take profit. Most of the time though, the MA take profit is usually hit.

If you look at the attached photo (My System Setup) you will see that (A) is my moving average, (B) shows the kind of bounce I’m refering too, © shows the signal in the Stoch, (D) shows the histogram of the MCAD declining which is an addtional confirmation of a short term trend change, (E) is the opening of the candle in which I would buy after the candle close where the Stoch triggers a trade, (The light blue line) represents my stop, and (F) shows where the price crossed my MA and I would have taken a profit of about 8 pips.

Things to remember:

While trading this system is that you need the market to be moving, not flat. View my other photo (Pointers) to get a better understanding of what I’m refering to.

Do NOT trade any time frame under 15 mins. I have bombed 3 demo accounts trying to successfully trade the 5 min time frame. 15 minute and above seem to work the best but I can only speak for the 15 minute time frame and the pairs i’ve listed above. The USD/JPY and the EUR/JPY typically trade the same but a greater pip movement occurs int he EUR/JPY so you can just choose to use that one alone if you like. I Like the USD/JPY for the US time frame whenever I get a chance to practice during a normal trading day in the US.

DO NOT force a trade, wait for the right circumstance. Like I said, stay out of flat markets, the conditions will present themselves and you will be profitable, just be patient.

and DO NOT trade around news! search google for forex economic news caldendars and such and avoid making the huge mistake of trading at news announcements. I allow 30 mins before an announcement and 30 mins after an announcement before I trade a pair that’s area just released some major news.

Finally, don’t get trigger happy and jump on a trade before the candle has closed with the Stoch trigger. More times than not, I’ve seen the Stoch lines bounce off each other and the trend continue in its current direction. Be patient and let consistent small pips be your friend. They compound very quickly.

Also,

I’ve included an excel sheet (Lot Calculator) to help you determine how many lots to use.

Just insert the values for the inputs ( for the “margin control” box, input the % margin you want to keep in your account to prevent a margin call. As you change this number it will raise and lower your risk %). Play around with it, I didn’t lock the calculations so you can give me some positive feedback on it if you like. Addtionally, once you add the inputs and adjust your margin control to a tolerable risk, go over to the “Orange” area and input the % of your account balance you want back in profits, that will let you know how many pips you need to achieve that goal. I shoot for 2.5%/Day personnally but the choices is yours.

Please let me know yours thoughts, I’m eager to hear them.

Lot Calculator.zip (10.8 KB)

[littlejohn]

Dis is way over my head. I just be a simple country boy.

[finally]

Hi Everyone!

First off, I really apprecaite everyone sharing their systems with me and now I feel I can give back to the community. I want you to bear in mind that this isn’t an original system, I’ve picked up bits and pieces from what I consider the best approaches to technical trading forex. I then assembled the different pieces and filled in all the questions I have ever had while trading. I would love any input by you guys because I’m still new to this but feel I have a solid understanding now. Let me know your initial thoughts and any way I can make this sytem even better!

I’d like to let you know my results:

Over the past three weeks that I’ve been using this method I’ve had 4 losing trades resulting in a total loss of 25 pips and I’ve had about 22 winning trades for a total of about 132 pips. I’m up over 100 pips for my first system I’ve ever developed. Not a great win to loss ration per trade, I usually risk 10 pips to gain about 6 pips, but my trades are very successful.

The reason I developed this system:

It seemed that every system I used had a bit of gray area about either the stop loss or the take profits, not everything was outlined. I got tired of the uncertainty and never knew when the “right” time was to execute a trade. This could be due to my limited experience or maybe some misunderstanding but I’ve finnaly found a way to trade forex and not be concerned about the unknown.

Okay Lets get to the point already!

My System:

Indicators:
Bollinger Bands - 10 period
(Smoothed) Moving Average - 14 period
Stochastic - 6, 3, 3
MCAD - 5, 9, 4

Time Frame:
15 minute

Pairs:
USD/JPY, EUR/JPY, AUD/USD, USD/CHF

Time:
8:30pm EST til Midnight
Most of my trades take anywhere from 15mins to 2hrs to complete, I’m usually done by 10pm EST.

Days of the week:
Monday-Thurs

How it works:

I watch to see the candles touch either the top or bottom Bollinger Band (BB). This touch can be the wick or the candle, doesn’t matter. Once I have a touch, I then begin to watch the Stoch indicator. I look for a cross in the lines. Once the crossover occurs, I wait for the candle to close. As soon as the next candle opens, I enter a trade in the current direction of the bouce (if it touched the bottom band and is moving up, I buy and vice versa.) When the order is made, place a stop at the wick of the candle where the bounce had occured. Your take profit will be right where the moving average line is located. I never have my stop more than 15 pips and my take profit is either at the MA or 10 pips, which ever occurs first. Sometimes I’ll leave the trade if the price stalls for about 5 mins near 2 or so pips before my take profit. Most of the time though, the MA take profit is usually hit.

If you look at the attached photo (My System Setup) you will see that (A) is my moving average, (B) shows the kind of bounce I’m refering too, © shows the signal in the Stoch, (D) shows the histogram of the MCAD declining which is an addtional confirmation of a short term trend change, (E) is the opening of the candle in which I would buy after the candle close where the Stoch triggers a trade, (The light blue line) represents my stop, and (F) shows where the price crossed my MA and I would have taken a profit of about 8 pips.

Things to remember:

While trading this system is that you need the market to be moving, not flat. View my other photo (Pointers) to get a better understanding of what I’m refering to.

Do NOT trade any time frame under 15 mins. I have bombed 3 demo accounts trying to successfully trade the 5 min time frame. 15 minute and above seem to work the best but I can only speak for the 15 minute time frame and the pairs i’ve listed above. The USD/JPY and the EUR/JPY typically trade the same but a greater pip movement occurs int he EUR/JPY so you can just choose to use that one alone if you like. I Like the USD/JPY for the US time frame whenever I get a chance to practice during a normal trading day in the US.

DO NOT force a trade, wait for the right circumstance. Like I said, stay out of flat markets, the conditions will present themselves and you will be profitable, just be patient.

and DO NOT trade around news! search google for forex economic news caldendars and such and avoid making the huge mistake of trading at news announcements. I allow 30 mins before an announcement and 30 mins after an announcement before I trade a pair that’s area just released some major news.

Finally, don’t get trigger happy and jump on a trade before the candle has closed with the Stoch trigger. More times than not, I’ve seen the Stoch lines bounce off each other and the trend continue in its current direction. Be patient and let consistent small pips be your friend. They compound very quickly.

Also,

I’ve included an excel sheet (Lot Calculator) to help you determine how many lots to use.

Just insert the values for the inputs ( for the “margin control” box, input the % margin you want to keep in your account to prevent a margin call. As you change this number it will raise and lower your risk %). Play around with it, I didn’t lock the calculations so you can give me some positive feedback on it if you like. Addtionally, once you add the inputs and adjust your margin control to a tolerable risk, go over to the “Orange” area and input the % of your account balance you want back in profits, that will let you know how many pips you need to achieve that goal. I shoot for 2.5%/Day personnally but the choices is yours.

Please let me know yours thoughts, I’m eager to hear them.

Looks interesting.
I’m going to take a small trade shortly.
I’ll let you know how I do.

[Shr1k]

I like it
85% win rate if you maintain that your upside down RR should not be a problem.
If the stoch keeps you from entering a trade the wrong way in a trend that will help. watch out trying this during a busier session. This sounds like it would work the best at the time you are using it.

I might look at trying to make a few more pips on a trade. If the Bollinger is relatively flat a bounce will often make it past the center, or your MA all the way to the other band. If you are watching your trades you could try moving your stop to your MA as soon as its crossed and putting your TP just inside the opposite band. I don’t think that would mess up your win rate and may increase the profit some.

[finally]

I like it
85% win rate if you maintain that your upside down RR should not be a problem.
If the stoch keeps you from entering a trade the wrong way in a trend that will help. watch out trying this during a busier session. This sounds like it would work the best at the time you are using it.

I might look at trying to make a few more pips on a trade. If the Bollinger is relatively flat a bounce will often make it past the center, or your MA all the way to the other band. If you are watching your trades you could try moving your stop to your MA as soon as its crossed and putting your TP just inside the opposite band. I don’t think that would mess up your win rate and may increase the profit some.

I just shorted cable.
I am using a 12 TP and a 12 SL.
I had 6 pip profit but didn’t take it.
I will play this as an OCO order.

[finally]

I just shorted cable.
I am using a 12 TP and a 12 SL.
I had 6 pip profit but didn’t take it.
I will play this as an OCO order.

I took a 4 pip profit and canceled the OCO.

The bands were very flat- should have grabbed the 6 pips.
I guess with that kind of volatility you can’t expect more than a few pips.

I don’t like the upside down r/r though.

I’ll experiment with the r/r’s and keep you posted.

[finally]

I took a 4 pip profit and canceled the OCO.

The bands were very flat- should have grabbed the 6 pips.
I guess with that kind of volatility you can’t expect more than a few pips.

I don’t like the upside down r/r though.

I’ll experiment with the r/r’s and keep you posted.

I’m using 20/2 BB.
The bands are a little wider and seems to filter out some false signals.

[Shr1k]

I took a 4 pip profit and canceled the OCO.

The bands were very flat- should have grabbed the 6 pips.
I guess with that kind of volatility you can’t expect more than a few pips.

I don’t like the upside down r/r though.

I’ll experiment with the r/r’s and keep you posted.

I would keep what you have. Your stops and TP seem fine as long as you keep that win rate up but [B]building a plan that depends on a high win rate is risky for many reasons[/B].
I would try to take advantage of larger bounces. If you just make the TP bigger win rate will likely go down. I don’t have a problem starting a trade with the stops and win rate you have. I do think on some trades you could double your pips without affecting you win rate, if you set a stop at your ma as soon as it was crossed and let some of them run more. If you had a few larger trades to add to your results you actual R:R would be much better.

You can see where your MA is before you even enter just set up moving the stop as soon as you enter then just confirm it as soon as price crosses that line. You will have to let price run by a little or move the stop back a little so its not instantly triggered. work out how much that is and thats the only risk you have added.

[markoc]

jester2630, thanks for the system, it looks very nice.
i have few questions.
for stoch: price field is low/high or close/close, and ma method is simple or smoothed?
for ma and bb: apply is on close or some other setting?

thanks very much for this simple system

@finally
i’ve looked at bb setting on 20, but it seems that i get lot more wicks crossing that way. what’s your setting? apply on close or something else?

thanks guys

[soul786]

Simple is always good. Bolli-bounce with confirmation; I like it! I used to play the bolli-bounce too but with wider profit targets on larger TFs.

Tip for those trading this system with short TFs, the lower the spread the better. After a while trading something like this I learned I could earn almost double the profit when scaling a pair with 2 pips spread vs. something with 4 or 5 pips spread

[MattJones]

Simple is always good. Bolli-bounce with confirmation; I like it! I used to play the bolli-bounce too but with wider profit targets on larger TFs.

Tip for those trading this system with short TFs, the lower the spread the better. After a while trading something like this I learned I could earn almost double the profit when scaling a pair with 2 pips spread vs. something with 4 or 5 pips spread

Thanks for the tip soul786.

Best Regards,
Matt Jones .