Good point Aegis, but one of the “features” of using PSAR to determine entries and stop losses is that it limits your loss with proper money management. If you read Bocajunior’s comments about using MACD and a 50 EMA to help determine trades, then you’ll see that the idea is to enter trades that trending strongly and gaining lots of pips.
Your mileage may vary - one thing I’ve noticed is that some people are able to make consistent profits with a system, and others can’t.
Hello Dr,
When you say ADR (Average Daily Range?) is that the same as ATR (Average True Range)? I just looked on Oanda platform and I have ATR but no ADR. Regardless, i think there is some merit in using this to set a stop loss if the PSAR dot is far away from the entry price.
I read about another system on Babypips called the 8and8 method and in that, the auther was using ATR as a gauge to set a stop loss.
Best Regards
Scott
Here is the latest on my positions.
2 new positions opened today and 6 positions closed from Friday night onwards with mixed results, but still a slight gain in profit. Current profit since system start is now at 21.2%.
I’m going to start posting the closed positions once a week only to stop the thread getting cluttered up.
Another thing I have been thinking about is the AUD, EUR, CHF and GBP/JPY crosses all have very similar trends and charts so as a result of suffering 3 losses the other day, I am thinking I may just open one of these JPY crosses at a time in future. ANy thoughts on that?
[U]Open Positions[/U]
USD/CHF Short
EUR/CHF Short
GBP/CHF Short
USD/NOK Short
EUR/GBP Long
EUR/AUD Long
All but 2 of the above positions are in profit at present.
[U]Closed Positions[/U]
GBP/USD. Closed manually for a loss after Fed rate cut. -50 pips
USD/CAD Short. Stop Loss on reduced time frame for +350 pips
XAG/USD Long. Stop Loss on reduced time frame for +5000 pips
AUD/JPY Long. Stop Loss on reduced time frame for +180 pips
AUD/NZD Short. Stop Loss on reduced time frame for +100 pips
NZD/USD Long. Stop Loss on reduced time frame for +190 pips
XAG/USD Long. Stop Loss on daily PSAR. -5000 pips
NZD/USD Long. Stop Loss on reduced time frame for +50 pips
GBP/USD Long. Stop Loss on reduced time frame for +100
AUD/JPY Long Stop Loss on reduced timeframe for +650
EUR/AUD Short stop loss on reduced timeframe for +600 pips
EUR/JPY Long Stop loss on reduced timeframe for +700 pips
EUR/CHF Long Stopl loss on reduced timeframe for +150 pips
EUR/GBP Short Stop Loss for +50 pips
GBP/CHF Long Stop loss on reduced timeframe for +50 pips
EUR/USD Short Stop loss on PSAR for -100 pips
GBP/CHF Long. Stop Loss for -75 pips
AUD/USD Short. Stop Loss for -120 pips
EUR/AUD Long. Stop Loss for -270 pips
AUD/JPY Short. Stop Loss for -70 pips
NZD/USD Short. Stop Loss for -160 pips
EUR/CHF Short. Stop Loss for -40 pips
CAD/JPY Short. Stop Loss for -20 pips
EUR/SEK Long. Stop loss on reduced timefarme for +950 pips
USD/CNY Short. Stop Loss on reduced timeframe for +350 pips
CAD/JPY Long. Stop Loss for +90 pips
AUD/JPY Long. Stop Loss for -190 pips
EUR/AUD short. Stop Loss for -210 pips
EUR/USD Long. Stop loss on reduced time frame for +220 pips
NZD/USD Long Stop loss for +55 pips
AUD/USD Long. Stop loss for +60 pips
EUR/JPY Long. Stop loss for -220 pips
GBP/JPY Long. Stop Loss for -360 Pips
CHF/JPY Long. stop loss for -125 pips
Regards
Scott
i seem to read this a lot.
seems like people lose there connection alot /
i read a lot of compliants on oanada formun.
Kauaibobby,
I’ve not had any problems so far using Oanda. Somethimes on the weekend it is down for maintenance but largely they seem ok to me.
Rgds
they seem to shut sown for a minute sometimes it just happened to me a minute ago. I here alot of complaints about that.
happy trading
kauaibobby
Here is the latest on my positions.
No new positions opened today but 2 positions closed:-
USD/NOK Short -1000 pips
USD/CHF Short +260 pips
Current profit since system start ramains at 21.2%. Seems we are just treading water at present.
[U]Open Positions[/U]
EUR/CHF Short
GBP/CHF Short
EUR/GBP Long
EUR/AUD Long
All of the above are in profit at present.
As I can’t see any new trades, I went over and analyzed all my losing trades and I found that most of the losers were ones that I were taking to go long while the price was below the 50 EMA line, or vice versa for short positions.
Some other losers were trades taken when the MACD lines crossed above the zero line on Long positions, and again, vice versa on short positions. Having said that, if I had used this to filter trades, I would have missed some winners as well.
I think some tweaking of the system is required and I’m working on it now, but I am not expecting a system to filter out all losers as they are there and part of the trading game.
Best Regards to all and hope to see some folks back here soon.
I am new to forex and am still trying to develop a working system. after some initial success trading options by fundamentals, i took a real beating the past couple weeks and decided it was time to change my approach…
i have been backtesting a system i came up with based off of the ideas in this thread. i trade on the first Williams AO change and then close the position on the change back. i only take trades in direction of the trend, using 50 day EMA. i do everything off the daily chart.
i am amazed with the results. almost all winners and for very nice gains. i also like that i don’t have to worry about intraday.
still waiting for my deposit to clear in my forex account (they said next monday)… i think if i can maintain discipline this could be a very good system. i will keep you guys posted.
i realized i had been trading off the weekly to get that extreme level of success. when i switched to daily i got a lot more (modest losses). trading weekly seems a little scary, but if i trade small and keep good stops it might be the way to go based on what i have seen thus far.
Hi Nate, welcome to the forum.
I wish Oanda had weekly charts, but the temptation to scalp the M5 candle is almost too great for me to resist. I truly deserve the title noob. Who are you using for your charts? How do you set Stop Losses, and what percent of your equity do you put at risk at a time?
I played with Williams AO, but I was never sure if I was supposed to change the trade when the line changed colors, or when it crossed the zero, or turned down, or what! Tell us more about how you determine trade entries and exits.
Using a weekly timeframe will probably get in the strongest trends so I’m not surprised that you were profitable, but what is your return? Bocajunior has earned over 20% in the past two month using the system described in here.
Take Care,
Dr Zeus
thanks… i have not actually traded live yet. profits were all on a back tester (forex tester). i use XTick for charts. ill put my stops in at the parabolic SAR stop points. decided i will use PSAR as the primary indicator and wiliams as an early exit strategy. also decided to trade with and against the trend and off the daily. that is based on success i have had with back tester. i am also looking to start trading equities again using this strategy.
as far as capital allocation, i will probably limit risk to under 2% per trade. i had been up about 25% in a month trading options, but managed to pare down those gains to about 5%. i had been trading off of fundamentals and “intuition”… the thing that amazes me the most about the PSAR is that it would have enabled me to make the gains i made with options without taking any of the losses (in fact, i could have gained more on the way down)…
is Dale still trading on this system?
just read far enough back into the thread (i had previously just read beginning and end) to see Dale’s massive losses. i was bummed reading how his initial success turned into that but can really relate with what occurred to me with options. overtrading - risking over 10% of my account on 1-trade. couple that with relying on fundamentals and intution and you have a recipe to lose a months gains in about a week’s time.
this is a great thread, and i hope you guys continue to post. i plan to be an active participant as i seek to build a successful daily trading strategy. Dale’s post was a very sobering lesson on the importance of sticking with a timeframe and moderating trade sizes.
though i see no buy signals with PSAR on my equities, i was tempted to jump into the market today and use the signals on intraday. i am glad that i resisted that idea and stayed out. this is a time of patience for me, when i need to wait for the trading opportunities to present themselves and practice discipline.
Dale, if you happen to read, your posts are seriously inspiring. i hope you continue to drop in and discuss your strategies with us.
Here is the latest on my positions.
No new positions opened over the last couple of days. My EUR/CHF short position was stopped out on the reduced timeframe to lock in a nice profit. The most recent closed positions are as below.
USD/NOK Short -1000 pips
USD/CHF Short +260 pips
EUR/CHF Short +200 pips
Current profit since system start is now at 22.4%.
[U]Open Positions[/U]
GBP/CHF Short
EUR/GBP Long
EUR/AUD Long
All of the above are in profit at present. GBP/CHF is doing very nicely so far.
Best Regards
Scott
Hello natejax,
Welcome onboard. Seems like you have been doing ok with your trading. any chance you could post a chart so we can see your platform and your indicators set up. Just curious to see how it works.
Thanks and Regards
Scott
Hello Dr,
Would be great if Oanda had weekly charts or could back date the daily ones further.
I have never tried Williams AO before… How does it work? Excuse my lack of knowledge on that one.
Cheers
i noticed that if you see a range developing, it is better to wait for a breakout and ignore the signals. also, i decided that if indicators are conflicting, it is best to stay out.
have not seen any changes on PSAR for the currencies that i am watching. hope i will get some once my money clears. supposedly will happen on monday, though it was withdrawn from my account this monday. i guess its 5 business days… i opened an account with FXCM, which i am starting to feel may have been a poor choice. i can’t even put in buy/sell stop to open orders. only can use stops to close out existing positions. that in itself is pretty annoying… seems oanda is what you guys use? my concern now is that it would take another couple weeks to get the money over to OANDA. i may open the account with them and gradually shift funds…
Hi folks,
Just a very short quick note to let you know that I WILL be returning next week all things being equal!!!
I’ve managed to ‘scrape’ together a few K and just need to get my ADSL, email, and websites re-instated and I should be good to go.
This little ‘forced’ sabbatical may have been the best thing for me i.e. time to reflect and analyse where and why I went ‘belly up’ and have come up with some ‘startling’ answers.
Unforutanately I have to keep this message short i.e. still using my mobile phone for connection.
Glad to see that the thread has been ‘kept up’ by you good people.
Thanks.
Dale, I am very happy to hear you are returning. I think i might suffer from the same handicap that you seem to (a propensity to take on too much risk). i am hoping that if several of us are following the same strategy that we can encourage accountability and share info on trades.
