I get it Carnino, thank you for explanation… yes will go through your and VJ discution, thank you very much!
Hi carnino,
The reason is that once the pair move 5 pips than order will be breakeven and incase if market reverse back from there order will be in breakeven.
With 6 pips as soon as it hit 6 pip my order will lock 1 pips in profit and then trail of 5 pips.
I know that to gain 1 pips is not big deal in forex. However here stop is 5 pips so 1 pip is 20% of it.
And later stage when I trade with let us say 5 standard lot than it that case 1 pips value will be $50.
So I prefer to get $50 instead of getting $0
This is the only reason.
Might be some one will think that I am crazy.
But over a period of time it is better to get even Small amount in account instead of getting nothing.
Regards
Vijaykumar PARMAR
Yes, that is what I thought and that is why I asked …
Do you mean that when price reaches (Open + 6 pips), you set it the Stop Loss to (Open + 1 pip) so that you cash in a little profit to make up for what you lost in the spread?
That is a totally reasonable way to do it. I understand, but can you also run the same test with a pure 5 pip trailing stop so as to compare the two - one with no gap and one with the 1 pip gap?
I have a feeling that in the long run, the 1 pip gap might actually do more harm than good! It would be nice if you run the test just to make sure.
Regards,
Carnino
Hey guys… interesting and surprisingly simply system you have made here :b
I can see that you are doing a lot of backtesting, but why dont you try with a different sl, tp?
The 5 pip sl seems to be a little arbitrary…
Maybe it would be better with a bigger stop loss to avoid slippage and to lower the broker’s commisson value
just a few thoughts
regards, René
Actually we are now testing other TP points (not SL yet). That is what trailing and letting profits run, does. I have experimented with other stops (and several other tings) and if you read my posts I came to the conclusion that an ATR based stop-loss (or trailing) would be better.
However, messing around with to many variables at the same time can complicate tests and distract us. So, I feel that we should work with only a few options at a time (such as the trailing stop for now), and once that has matured, then we move on the other options.
I can tell you for now, that the following helps profitability:
[ol]
[li]A small Stop-Loss or one based on the ratio of ATR of a short time frame (M5 or M15) is more profitable.
[/li][li]A medium sized trailing stop or one based on the ratio of ATR of a medium time frame (M15, M30 or H1) is more profitable.
[/li][/ol]
However, that is for future tests. For now, only trailing is being look at and since the original strategy used a 5 pip stop, we are sticking to it until tests have matured and we can then move on to other factors.
On this new test account for the trailing, you are using AUD and 5% Risk. Is there any particular reason why you are using AUD (instead of USD) and a greater risk% and different initial balance in comparison with the other account?
It seems to me that if you using totally different Currency, Initial Deposit and Risk%, it makes all the more difficult to compare the two over time!
I noticed that Vijay posted that he had three losses today. According to my demo account (FXDD) I actually had three wins. Did anyone else post wins today?
Hi!
You have to remember that Broker feeds are slightly different and depending on if it is ECN or Dealing Desk or what liquidity provider is used, discrepancies can occur frequently.
Sometimes it can be just 1 pip difference on the stop loss price for Vijay to have 3 losses and you to have 3 wins.
I decided to run some back-tests of my own with your 1 pip Trailing Gap technique and I was surprised to find that it does in fact improve profit quite a bit. On the EUR/USD the difference was not that high but on the GBP/USD, the change was considerable.
It did however decrease the profit factor and the win rate somewhat and increased the drawdown slightly, but the impact it had on the profit is quite noticeable.
That was a good call on your part, Vijay!
Could i trade the PARMAR 3P TRAIL method manually? or does there need to be an ea to set the trades off?
Vijay’s strategy is geared towards manual trading and he and others have discussed the manual trade techniques on various occasions here on the thread. In fact, there are several users trying out the strategy manually on demo accounts.
Vijay, however does use an EA in order to automatically compensate for slippage but I don’t know how much of an impact that has on the overall results.
I suggest you try it out on a demo account for a few weeks and see for yourself!
have you ever see such big slipagge ??
entry price was 1.69895 and was executed at 1.70013!!! alsmost 12 pips!!! and same moment TP levels has been cancelled…
What a day, lost bouth sides and in one side almost three time winner…
Thanks for letting me know Carnino
Hi VJ,
it is a IronFX … never happened before in such size…
The previous account is also having AUD as currency.
The first account was having lot size 0.48,0.12,0.12 so total was 0.72 and i have change that to 0.48,0.16,0.16
that is 60,20,20 and total is 0.80.
The second account is having 0.80
regards
vijay
broker to broker performance will vary…
This method is not something like positional trading and holding for few days…
The time when trade execute and close is very less here and in these case slippage matters.
I am still wondering that how come your trade execute at 1.70013 price…
With ECN demo ic markets 2 was winner and 1 was loser
with standard live ic markets 1 was winner and 2 was loser.
Around 99% of the time both perform same result …
regards
vijay
Today stat
Total trade # 6
Winner # 2
Loser # 4
Live Winner # 1
Live Loser # 5
regards
vijay
I beg to differ Vijay, but MyFXBook says that your other account is in USD ($) and that the new one is in AUD (A$). Just take a look at the Balance Field and the History Profit column and you will see that the currency is different. Consequently, since the currencies are different, then obviously the initial deposits are different too even if they are both 1000.00.
As for the lot size, yes I see that you have made both the same now.
my mistake…will fix it on asap basis…
regards
vijay