i have a pepperstone account with spreads of 0.1 - 1.0 the commission i pay is $7.53 round trip for every trade in a standard lot which is $10 per pip,
lets say i enter a trade on the gbpusd my spread is 0.6 the trade went to 5.9 pips before turning and taking out SL
now with my spread i hit my TP with 0.3 pips to spear
5pips @ $10 per pip = $50 right now i minus my commission of $7.53.
$50.00 - $7.53 = $42.47
profit for trade is $42.00 is that great
lets say that you entered the same trade but your spread is 1.6 no commission same 5 pip TP but the trade went 5.9pips in profit before it turned and head for SL of -6pips
your trade never hit TP because of spread you would have need 0.7pips to hit TP you instead hit SL resulting in loss
just think -6pips @ $10.00 per pip = -$60.00 ouch!
imagine you account is now $60.00 in loss and my account grew by $42.00 which is more profitable in the end.
although i pay a commission for my trades, and the end of the session because of my very tight spreads this strategy works to keep me always profitable even when losses arise
Nice system here bliz. I’m trading it now the same way as harrilalchadd is trading it, however when there is a new SAR forming after a ZZ zwing point outside the outer BB, I don’t wait for that candle to close, but immediatly open a market order. I’m also at Pepperstone and it seems to work pretty well.
I’m currently thinking about a way to adjust the SL more dynamicly, not really fixed like we do it now on the last ZZ swing because sometimes you got like a 1:3. I.E 5TP and 15SL. Maybe also an idea to don’t take a long when the price is almost reaching at the outer upside BB, vice versa for shorts.
I was wondering if its possible to make an indicator that sounds an alarm when a first SAR is created after a ZZ-swing (outside the BB (not really neccesary but it would be nice ))?
If that is possible it would make life a lot easier then constantly staring at my screen, switching between 5 different charts.
Nidolap,
Yes, that’s exactly why I made it, per your request. Did you try it?
Just put the indicator on the BackTest chart, you will see.
Ok, wait, I just modified that one because although it draws repaints from candle to candle, it only draws one arrow per candle. However, repainting occurs on the candle as well as from candle to candle. So this one DOES draw those little arrows that are hard to see, but it will draw many on each candle if/when the Swing_ZZ repaints.
First, thanks a lot for making that indicator. But I must be doing something wrong because I don’t see any difference on the chart between yours and the old ZZ I had…
harrilalchadd, Your posts have been a boost in my confidence on this system, thanks for sharing them.
Just a couple of questions :
Do you wait for the ZZ dot to be outside the BB? From your posts you seem to enter anywhere if the SAR changes position.
You said that you have an eye on news, does that mean that you don’t trade before big announcements or do you go as normal but being aware that something could happen?
I’ve been playing around with some tools to adjust the SL to a more appropriate level for each trade. I’m thinking about something like this:
Short
Grab your fib tool and pull a fib from the ZZ dot your trading to the low of the closed entry candle that has the first SAR above it. The 61.8% fib is your SL.
Long
Grab your fib tool and pull a fib from the ZZ dot your trading to the high of the closed entry candle that has the first SAR under it. The 61.8% fib is your SL.
Of course this method will ruin some trades that went eventually in profit, but I personally don’t like trades with a 1:4 ratio. I’ve been ‘backtesting’ it this week and it seems to work out pretty nice.
I will use this and backtest this till the end of the week and if it’s working correctly I will start using this system on monday and make a FXbook so you guys can follow me.
Let me know if you got some ideas to adjust the SL even better
thanks to your first question i was able to identify my sloppy trading today thank god it resulted in wins and not losses
The correct way is to was for the ZZ to paint dot ON or OVER the BBands and Wait for the SAR to paint and enter trade at close of candle, if it i didn’t traded sloppy today i would have 9 trades total 8wins 1loss total of 30pips which still isn’t bad.
yes i don’t trade before announcements that time i only trade with the trend
My apologies if you are doing this already, but i would suggest combining James SAR strategy with Blizard’s one, perhaps the additional comfirnation will help to improve profits?
I will check that thread out aswell, but I don’t want to make it over complicated.
I just backtested EUR/USD for the month october, this is with the 61.8% SL rule. In the right table I removed SL’s that are 11 or higher. The “SAR” row means how many candles the SAR is away from the ZZ dot
I will post the other results aswell when I’m done with em
so your tp is 4,25 pips, not 5, while on the second account(the 1,6 spread) you have a 5 pips tp, is like saying i have a 3 pips tp, instead of 4,2 because imagine that the price moves until 3,1 and then reverse, you would have lost the trade, and i would have earned 3 pips! if we follow your argument, we concluded that the best tp target should be 0,1 pips wich is not true…
so the 70% times that trades moves until 5 pips, you lose this 0,75 respect the second account, and when you lose you lose the sl+the comission.
Also in your example, when the price moves the 5,9 pips, at this point the 2 accounts would be on nearly the same amount of profit, so if you had put a 4,3 pips tp on the second account, you would have earned the same 43$. In other words, if you take a screen shot of the 2 account at the same time you will see that the 2 are winning or losing roughly the same.
your spread is not the reason why you can win using this startegy and others can not.
This is ambiguous, on the previous post you put an example saying you earn 4,25 instead of 5, now you are counting it without comissions, are you calculating it instead of looking at your account balance? very rare…
I did my maths too. With comissions your week earnings should be aproximately 716,7$ instead of this 945$
am I wrong?
i will ask you once again, can you provide a myfxbook.com link and clearing up any doubts?
P.S.: i’m not calling you liar, I trust you and hope you can prove that my suspicions were unfounded.
I don’t get why people need to prove everything to everyone here…harrilalchadd is giving us the charts with the trades on it, why should we find anything suspicious? I don’t even look at the $$ on his posts, it’s the setup that matters to me and that should matter to everyone else.
Nice work kaboemm, thanks for sharing. The results are awesome, specially because this is only for one pair, should it be as good on others and we’ve got a winner!
hey i’m not arguing i was just pointing out something
yes my tp is 5pips + spread hence i said 5.6pips
and yes i post the gross profit of the day so what i didn’t post my deductions , its like your salary you see your gross weekly income then you see the deductions
and many times when i had my no commission account with spreads of 1.6 - 3pips i lost trades the same trades i won an the commission acc i was demoing before i went live.
so not only did i research for myself i am actually in a position to say i am right because of my experience
to your point if the market moves to 3pips and turns you would be in 3 pip profit
for you to be in a 3 pip profit that would mean the market moved 4.6 pips the 3pips + 1.6 pip spread, therefore i would be 4pips in profit if the market moved 4.6 pips
so lets say its standard lots we traded, yes you would have $30 profit and i would have $40 - $7.53(commission) = $32.47
yes that $945 is gross my actual account balance is lower but it is in profit and building which is the point.
i don’t really care if you call me a liar i don’t need to justify anything to anybody but my wife
and i certainly don’t trade this system alone i trade the london breakout, the Cowabunga System but with strict money management now by far this strategy is the fastest money making strategy but its not suited for all market conditions that why i have more that one tools in my kit so it would no flick the results if i post the acc on that site
apart from my live us acc with pepperstone i want to open gbp acc with them only trading this strategy with that acc so i will put it up on that site you want a link too and then all who have doubts can see this strategy really works and that BLIZARD did great
