Ok, lets see…
It doesnt matter how many pips you lose or win, what matter is the lot size. If you trade daily charts and have a SL of 300 pips, risking only 5% of a 10,000 dollars account, then your lot size is 0.17. Now if you have a 1h trade and the SL is 60 pips the your lot size will be 0.83. So in the end you will lose the same amount of dollars in case your SL is hit. The lot size changes, in order to only risk an amount of your account, and it doesn’t matter the timeframe you trade and how far the SL is. Of course you will lose more pips and also win more pips with daily trades, but it doesnt mean that you will lose or win more money, get it?
Im risking 5% of my account with all the trades together.
The gbp/jpy trade the daily middle band was flat, but I took it because price is heading to last month low, based on my experience 90% of the times price breaks last day, week, month high or low. Same for the Gbp/usd. Notice that the important thing here is: TRADE IN THE DIRECTION OF THE TREND. When you get more experience you will start being more flexible with the entry rules, because you will have other factors. Entry and exit rules can be flexible, but there is one rule I never break: TRADING IN THE DIRECTION OF THE TREND. Ifprice is above daily 50 SMA, then I only take long trades on the 4h charts. If prices is below daily 50 SMA then I only take short trades in the 4h charts.
yeh i see what you are saying… but i have a spread beting account, so the minimum i can trade is 1 per pip in any time frame… so thats why i was asking in terms of lowest draw down in the time frames… so in the 1 hour time frame there would be less breathing room than in the daily time frame in terms of pips, right? if you know what i mean… since i can only do 1 per pip… so thats why i was asking if i should start from the 1 hour time frame and then build my way up…
thanks for the advice and rules…i have taken a note of it. hopefully i will be taking the next 4 hour trade that comes up with you next.
and for the 1 hour trading, …apart from checking the 4 hour chart and taking the trades with the trend ofcourse. would you recomend any indicators or anything? or when to get in and out?
i’ll look out for your december summary too if you are planing on doing it for this month… its realy inspiring to look at it.
I didnt know that you only could take 0.01, in that case yes you would be risking more in daily trades. But if you dont want to miss those trades, I suggest you take them in demo account.
Indicators I dont recommend, I would suggest that you draw support and resitance lines on daily chart and use them as exit signals. Entry rules is the one for my system, with bollinger bands. The only difference is that you reduce the timframes. Your home chart is the 1h chart, and the big chart is the 4h chart. And only use the daily to plot support and resitance lines and use them as targets. In the 1h chart your trades will last 1 or 2 days, no more. On the weekend I will give you my backtest of 1h trades, for each pair and each session, because for day trading some days are not good to trade, for example mondays. But dont worry I will give you all this information.
Yes, I closed my aususd and usdcad trades yesterday too. The daily looks like it’s coiling - making lower highs and higher lows - as we move towards the holiday.
Still, a very promising first two trades using this system. And actually, the first two trades I’ve ever taken off a daily chart. In the past, despite best intentions, I’ve always got sucked into the lower timeframes. My aus trade was triggered overnight and the next day it went against me by 100 pips. It was actually quite liberating to sit on a -100 pip trade but look at the weekly and daily timeframes and still feel confident about it due to the strength of the trend. It then swung and went to about +150 before retracing.
Thanks again for this Gasanvill. I look forward to testing it fully (and going down to the 4hr) in the New Year.
Once I really got to grips with the Daily, Weekly and Monthly charts my whole life changed. There is a lot of money to be made on the lower timeframes, and I dip in and out of that depending on the state of the market, but for regular, steady and fruitful pips I just love the higher timeframes.
Daily trades usually take sometime to develop. MY DAILY TRADES last at least 1 month, so Im not closing aususd and nzsusd, Im keeping them open to give them some room. At the moment aususd +42, nzdusd -17.
Have a Happy New Year Gasanvill! did you have a good Christmas?! Happy New year to everyone else too reading this, lol…
did you have any luck in finding that information for me Gasanvill? I was looking forward to it…
by the way i think there was a 4H trade on the g/u recently…am i correct?
you have probably made alot of pips this year! and i am happy for you. i am hopping to make the next year 2012 a year of forex trading and making pips also for the first time. lets see how it goes…
Just reading up on your system Gasanvill, and I am very excited about it. Love the simplicity of it, and the main idea of following the trend and long term time frames. Thanks! I will try to post my trades using it.
I´ve been very busy trading, and making all the adjustements to improve my system. I have to say last year was a good year trading. I hope this year is good to.
I wanted to share my system with you, after making all the adjustements. It took me a lot of time, and a lot of data required. As you can see the basis of the system are the same:
-TRADING IN THE DIRECTION OF THE TREND
-INDICATOR: BOLLINGER BANDS
-4H TIME FRAME.
The improvement was made on the entry signals, I did a lot of backtest to find the better filter sand entry triggers. Also I put a lot of effort trying to find a method to maximize the profits by trading multiple lots. I hope it is useful to you. Here it is:
A good system doesn´t have a fix profit target, a good system takes what the markets gives you and this you can only know it when you are in the trade, not before the trade. If you use pre fix profit, then sometimes you will lose a good trend, and sometimes the market will reverse before your pre fix target. So what you need is a good trailing method after you enter the trade. This is what new traders don´t understand: The r/r ratio can not be measured before the trade, it can only be measured after the trade. YOU CAN NOT FORCE A TRADE TO MAKE 1:2 OR 1:3 R/R RATIO. SOMETIMES IT WILL MAKE 1:5 AND SOMETIMES IT WILL MAKE 1:1.
The only thing you can do before the trade is trying to find the best setups, so you have better chances to make a good entry and a good r/r. Not all trades are the same.
So my answer to your question is NO, I dont use pre fix targets. I identify the best setups, pull the trigger, and try to maximize my profits. When I say that my system gives a 1 : 1.80 r/r ratio Im not talking about every trade, Im talking about all the trades together. Some trades will close with 1: 0.5 r/r ratio and some trades with 1:4 , but in the long term the average r/r ratio is 1: 1.8 get it? And if you put together with the 67% w/l , you will be profitable in the long term, which is the most important aspect.
Nice system. I will not trade it as I like my systems better but I looked at my charts at random spots on random pairs and you got something here. It works not every time but about 70% like you said 67% (eyeballing your on the money). Good work and happy piping to you. Glad to see you bring it here on babypips. Not that your new but it shows you can gain from this site as a newb at one point and bring something to the table later. Actually I tried Bollinger bands a while back wish this would have come out then. I dont really use indicators now but what I like about this is you show an indicator does work if you know how to work it. Most of your entries for a long position come when price is at the top of the bands. This defies what most learn (including me) about bollinger bands. Yet can show it works. That proves that you have to know what you are looking for in an indicator for it to work. Like it again good job:35:
