OzFx System :) 100-800 Pips Per Trade

[OzFx]

Hi OZFX

Thanks for sharing your system with us

I have to ask about the way you calculate your pip profits

All trades are opened in lots of 5… ok so
If you have a loosing trade you say -100 pips
but you have actually lost 5 lots x 100 pips (-500pips)

If you then have winning trade goes up 50 pips
you cash in one lot x 50 pips (+50 pips)
if the rest then get stopped out at break even

After these two 2 trades you are effectively -450 pips the way I see it
but you are saying you are -50 pips?

I just want to understand how you are representing your pip profits.

It still looks to be a very good system and I will demo it to see how I get along. Thanks for shaing it with us

kind regards
Brendon

Hi Brendon,
I add/subtract the last lot closed on a trade. When a trade close at +300 I only add 300 and not 50+100+150+200+300 (800).

Hope it make sense

Oz

[OzFx]

I have setup the system as you had suggested i.e. Downloaded the template from your first post. Downloaded MT4 from ODL. Opened Demo account. Copy the .tpl file in the MT4. Applied the Williams Oscillator.

Now in your first post you said Apply 200SMA and take action based on if the price below 200 SMA then go short? What is this and how do I do this?

I feel like I am this close to placing first trading order of my life…so need your inputs.

Thanks.

You would need to apply 200 Simple Moving Average manually. It is under indicator -> trend

[OzFx]

On the Oscillators what are the lines 80-20? If either AC and/or Stoch are above/below of either then does it mean that one should not take any position OR can one can still take position based on your guidelines about short entry / long entry?

A little worded query…

Thanks.

You should wait for AC to cross the 0 line to take trade. 80 and 20 means overbought and oversold conditions.

[OzFx]

Should I go with ECN broker or Market Maker? The Oanda or MBT - are they ECN or Market Maker?

Any reputable ECN broker in Australia?

Thanks.

I don’t think they are any ECn broker in Australia. I personally use MBT more than Oanda.

[OzFx]

Performance Update +550 PIPS

Hello Friends,

What a great week we had. We banked a total of +550 pips. Two of our previous trades from week before reached +300 each and two from this week reached +100 and few +50. Here is the summary of the trades:

1. EUR/CAD—Closed ( from week before) — +300
2. EUR/USD—Open ( from week before) -----Locked +200 Currently at +270
3. CAD/JPY— Open --------------------- ----Locked +100 Currently at +42
4. GBP/USD—Closed ------------------------ +100
5. USD/JPY—Open --------------------------Locked +50 Currently at +23
6. EUR/GBP— Open-------------------------Locked +50 Currently at +44
7. EUR/AUD—Closed ----------------------- +50
8. CHF/JPY— Open------------------------- Currently at -38

[B]Total for the month: +1070. So far we have 32/37 successful trades[/B]

Please note that we are trading on daily charts and there are times when we see pullbacks in prices before it goes in our favor. Most of the time 100 pip Stop Loss works fine but in some cases it won’t work and thats why we came up with ASL. Read ASL to learn how to put smarter SL.

I also want to let you know that I’ll away for next three days on business/holiday trip and won’t be able to send email alerts. I would still manage my open positions and would report profit/loss when I come back. Perhaps it is good time for everyone to practice on their own

Have a great weekend
Oz

[tonymand]

Hi Brendon,
I add/subtract the last lot closed on a trade. When a trade close at +300 I only add 300 and not 50+100+150+200+300 (800).

Hope it make sense

Oz

I am not criticising this system at all as I have not used it but the profit reporting is in my view misleading and there have been a number of queries on this. Reporting of pips means nothing as a strategy can be pip positive and dollar negative and vice versa. The important figure is your profit relative to risk ie R. In this strategy the worst case scenario is stop out at 100pips (does this include spread and commission, if not it should be added) and this represents 1R. For the strategy to return 1R on a trade you must get past your 4th take profit point. It is safe to assume therefore that this strategy needs to have well in excess of 50% trades successful. Taking the example here by Oz this actually represents 160 pips not 300pips ie 800/5 and as a function of R is something less than 160/500 (because of spread and commissions). On say EY which commonly trades around 3 pips you would have 160/515 ie 0.3R. If this was an average return then an 80% win rate would give you 8 x 0.3 - 2 as a return ie 0.4R (a 70% win rate would lose you money!). Assuming a 2% risk per trade then you would have a return of (0.4/10) x 2 ie 0.08% effective return per trade entered. Obviously you can substitute your own values into these equations to get your likely return and if you then multiply it by the average number of trades per month that you expect then you can estimate its monthly ROE. Hopefully the strategy is indeed profitable for you guys and continues to be so but strategies with such a high win rate are rare indeed

[Johnsovich]

Does it exist a similar indicator like AC in Oandas platform? I can’t get MT4 to connect on my computer at work, probably because of firewall. :mad:

[avimanya]

I would like to know what is AO as opposed to AC and how do I apply and use it in my trade?

Thanks.

[alkhataat]

Hi OzFx

Firstly I must thank you for sharing this trading method with every one here, very kind of you and most appreciated.

Personally I understood the chart setup and the rules for going long/short and the MM, but one thing still not clear to me, is where exactly to enter.

Looking to the attached EURUSD chart, the signal was to go long on the 14th FEB (Blue Arrow) as the AC was above 0 and the AO was green.

At which price was the entry long? was it at the closing of the candle on the 14th? or at the opening of the next candle on the 15th?

Can you kindly explain this bit in details if possible and appreciate if you also can give us another example.

Thanks again for your kindness and best of luck

Alkhataat

[prettrad]

Alkhataat,

here’s what I would do.

I would enter on the 14th Feb signal i.e. on 13th feb I can see AC is getting close to 0 and also stoch close to 0 indicating the next candle might produce a signal…and when the new candle is formed i.e on 14th feb , you’ll see that AC is green above 0 & also stoch has gone above 0 - at this point, i would enter a long position and keep a close watch on my SLs i.e., in case it reverses back

On the otherhand, you could let the chart develop and see where the price is moving on the 14th feb in order to decide what 15th feb will be like so as to decide if you want to enter a long position on new candle on 15th feb however like in some cases, if you look on the 15th feb the stoch had already hit 80 which can mean it is oversold so i’d be shy to take a position - even though now looking at the chart, even entering a long position on the 15th feb even would have proved profitable…

hope this does makes some sense… im also just learning…thats my 10 cents

Pret

[prettrad]

hey all,

I was just going through my GBP/JPY chart and wondering whether anyone would enter a trade here.

Personally, looking at AO & AC which look pretty undecided and stoch above 0 I’m thinking i’ll wont enter a trade here - i’d rather let the chart develop and look out for a clearer signal

anyone agree?

Pret

[phenix1]

hey all,

I was just going through my GBP/JPY chart and wondering whether anyone would enter a trade here.

Personally, looking at AO & AC which look pretty undecided and stoch above 0 I’m thinking i’ll wont enter a trade here - i’d rather let the chart develop and look out for a clearer signal

anyone agree?

Pret

I would enter and just keep a little watch on it. All the critera looks met (ac above 0 and stochs above 0). you can plot a 200sma as a filter and see what the trend is if you not comfy wit the trade. If its under 200sma then you could be trading against the trend which could be dangerous. I think trading withe the trend is much more safe but I’m a risk taker. But you can prolly steal 50 pips from the trade if not more. Hope that makes since.

[alkhataat]

Alkhataat,

here’s what I would do.

I would enter on the 14th Feb signal i.e. on 13th feb I can see AC is getting close to 0 and also stoch close to 0 indicating the next candle might produce a signal…and when the new candle is formed i.e on 14th feb , you’ll see that AC is green above 0 & also stoch has gone above 0 - at this point, i would enter a long position and keep a close watch on my SLs i.e., in case it reverses back

On the otherhand, you could let the chart develop and see where the price is moving on the 14th feb in order to decide what 15th feb will be like so as to decide if you want to enter a long position on new candle on 15th feb however like in some cases, if you look on the 15th feb the stoch had already hit 80 which can mean it is oversold so i’d be shy to take a position - even though now looking at the chart, even entering a long position on the 15th feb even would have proved profitable…

hope this does makes some sense… im also just learning…thats my 10 cents

Pret

Hi prettrad,

Thanks for your reply, though you are jumping ahead of the original signal but that has good sense.

I also noticed that some brokers do have 5 bars a week on the daily chart and others have 6 bars a week on their charts, both are on MT4 platform, does this different type of charts effect profitability or lets say generates wrong signals?

Has any one experienced this matter?

As you see on the first AUDUSD daily 5 bars/week chart, the AC has gone above 0 on the 28th JAN, but on the 2nd chart the 28th was the second day that the AC has crossed 0.

Any comments on this ?

Thanks again for your assistance prettrad.

Best of luck

[system]

Hello All,

I thought I should tell you what I am finding here, perhaps it will be some encouragement to others. Let me start by saying that I am still pretty new, though I have read a lot of stuff on this site. Of the things I read, was the OzFx which I am now testing and pretty excited! I used to have an EA on my MT4 but with the result I have seen here, I have deleted it! Today, I have made almost $450.00 just looking at the OzFx charts and trying to trade it. I trade 0.10 lots but also based on the profits I was getting, I tried 0.20 lots and still more profitable.

I should tell you I normally get out of all my trades at 50pips I am not expert enough yet…lol! Then, I don’t trade all the 5 lots as recommended as it may become too much to follow everything, plus, I am not sure how much money I will need in real life trading, so I guess it is better to keep it as close as possible to ‘my’ reality.

I was concentrating on GBPUSD with the EA, but with this, I opened almost all the currencies and insppect it from time to time to see if there is an opportunity. I also read what OzFx suggests and I will keep trying to make myself better at doing the trades better!

If this continues for another month, at the most, I will start using real money. In all, thanks to OzFx for having such an idea and sharing it with all!!

[avimanya]

Hi,

I have read several posts on the forum about entering the trade at 7 PM EST (new candle opens). I am using ODL MT4 for charts.

Now I am in WA (Western Australia) and 7PM US EST is 9 AM (next day) here. I work full time and plan to do Forex after office hours i.e. after 6 PM WA time (i.e. 4 AM US EST).

So does that mean I can’t take trade call after MY office hours (that would be silly, wouldn’t it?) and obviously what would be my strategy(signals) to enter the trade - what time? OR what indication on the chart (regardless of the time)?

Thanks.

[OzFx]

Hello Friends,

It is good to be back home. I had a nice short vacation and I am so glad to see that people have kept the forums busy and alive in the meantime. I�d loads of email/PMs to reply back and I hope everyone received the reply. I also tried my best to read every single post on the forums and reply where ever I could. If I�ve missed out on anyone then please send me an email and I�ll reply back to you.

When I left we had 5 trades open, out of which EUR/USD performed just great. I closed it at [B]+445 [/B]pips at 1.5000. If you are still in the trade then you should be looking at +530 pips right now.

EUR/GBP second lot closed at +100, currently at +130.

CAD/JPY closed at BE after making +100.

CHF/JPY got closed out at -150.

And finally USD/JPY closed out at BE after making +50

GBP/CHF trade from today had already made +50 and I�ve moved the Stop Loss to Break Even

[B]Total for the month now is +1265 and so far we have 33/39 successful trades.[/B]

Oz
P.S. Please read here in regards to Managed Accounts

[cbarnett808]

Hello Ozfx. Many thanks for this system. Needless to say, it resonates with many people, myself included.
I do have a question: On 2/25, one of your picks was short EurJpy. I have metatrader w/ both Alpari and ODL, and both show stochs and AC well above 0, although AC is red. It looks like the short entry is contrary to the rules of the system, and this trade ultimately sailed the other direction. I realize you use an alternative entry strategy based on 4-hour charts but without bringing those rules into this thread, it appears there is no setup for entry this way either. In fact, it looks like this should have been a long (stochs had crossed up and both AC and AO were green on the 4-hr). Perhaps this was a typo?
Any guidance is appreciated, and again, many thanks for your contributions and generosity to date. I’m really trying to understand the 4-hr system and how it relates to the 1-day system.

[forexnoob]

Well I know its been awhile since I said I would update. I was moving so I had no access to the internet for a little while.

Anyway though I did enter 3 trades starting yesterday and 1 today for a total profit of 250 pips.

I traded EUR/CHF, GBP/CHF, USD/JPY, USD/CAD

I shorted them all starting with EUR/CHF, GBP/CHF, USD/CAD yesterday around 7pm est U.S

Then shorted USD/JPY this morning all for a total of 250 pips.

So far I haven’t had the “stones” to carry my trades more than over night and into the next afternoon. SO I may be able to get more profits from these trades ,but tend to close them at the end of the NY session the following day for a substantial profit so far.

I have doubled my account since I started trading this system. I have no complaints so far.

[avimanya]

Hi OzFx,

Which duration chart is most suitable to use - 5M, 15M…or 4H?

Thanks.

[OzFx]

I am not criticising this system at all as I have not used it but the profit reporting is in my view misleading and there have been a number of queries on this. Reporting of pips means nothing as a strategy can be pip positive and dollar negative and vice versa. The important figure is your profit relative to risk ie R. In this strategy the worst case scenario is stop out at 100pips (does this include spread and commission, if not it should be added) and this represents 1R. For the strategy to return 1R on a trade you must get past your 4th take profit point. It is safe to assume therefore that this strategy needs to have well in excess of 50% trades successful. Taking the example here by Oz this actually represents 160 pips not 300pips ie 800/5 and as a function of R is something less than 160/500 (because of spread and commissions). On say EY which commonly trades around 3 pips you would have 160/515 ie 0.3R. If this was an average return then an 80% win rate would give you 8 x 0.3 - 2 as a return ie 0.4R (a 70% win rate would lose you money!). Assuming a 2% risk per trade then you would have a return of (0.4/10) x 2 ie 0.08% effective return per trade entered. Obviously you can substitute your own values into these equations to get your likely return and if you then multiply it by the average number of trades per month that you expect then you can estimate its monthly ROE. Hopefully the strategy is indeed profitable for you guys and continues to be so but strategies with such a high win rate are rare indeed

Hi tonymand,
Thanks for your input. We had similar discussion before on my forum and we all decided to keep the existing method for calculating pips. Moving forward I would look into something more pleasing to everyone.

Oz