"PipChomper"

Trading Systems Free Forex Trading Systems
1

All,

I read and tested the Cowabunga System, which is where I got the inspiration. I’m calling this beast “The PipChomper”. This strategy helps manage risk while appreciating winning trades. Here’s how it works…

Using the Cowabunga system, we’re looking at the 15Min chart for the 5D EMA to cross the 10D EMA, RSI to crossover, MACD crossing over or about to, and stochastics coinciding. We traded those signals every time the 4HR chart was in agreement right? Well this system switches it up a lil bit.

Apply the same indicators to the 1D chart and follow these rules…

/All trends are considered at EMA crossovers, but the actual start of the trend may be older.
/When measuring 1D chart trend age use the actual low/high point of the trend, not the EMA crossover.
/Use the 1D chart trend age to determine the direction you’re trading, and the amount of cash to apply.
/Thanks to “Study Conditions” the 4HR chart 5D EMA/10D EMA crossover will be our trade signal.
/Set alerts that email you every time the 5D EMA crosses the 10D EMA on 1D/4Hr time frames.

///When the 4HR chart EMA crosses AGAINST the 1D chart trend, and all indicators coincide…
1D chart trend 2 weeks old= Level 2 trade
1D chart trend 1 month old= Level 3 trade
1D chart trend 2 months old= Level 4 trade

///When the 4HR chart EMA crosses WITH the 1D chart trend, and all indicators coincide…
1D chart trend less than 2 weeks old= Level 1 trade
1D chart trend less than 1 week old= Level 2 trade
1D chart trend less than 3 days old= Level 3 trade

///What the levels mean…
Level 1= 10% of the money I’m willing to trade
Level 2= 20%
Level 3= 30%
Level 4= 40%

///Entering a trade…
Lets say the 4HR chart EMAs cross to the upside.
-Setup a MARKET order to BUY with a study condition.
The order will execute once the study condition is met.
Study= 5D EMA crossing above the 10D EMA on the 15Min chart.
-Set a STOP with a time condition= one hour expiration. (Adjust STOP to however many pips you want)
-Set a MARKET order to SELL with a time condition as well as a study condition.
Time= Wait an hour before letting the study condition execute the order.
Study= 5D EMA crosses below the 10D EMA on the 15Min chart.

///Repeat this trade until the 4Hr chart reverses.

///An ALTERNATIVE would be to scale in with Level 1 trades, T/P at +50 pips.

///DO NOT TRADE 4pm-8pm (Eastern Time US)
///EXIT all trades at 4pm
///Start analyzing signals again at 8pm

2

When entering the trade you can use an advanced order where 1st Triggers ALL. This way you don’t have to do the buy, stop, and sell bundle one by one. I personally do it manually. I place the order with the EMA cross Study along with a STOP. Then once it executes I wait an hour to manually cancel the STOP and place the EXIT order with the reverse EMA cross Study. Any questions or suggestions would be appreciated.

3

I’m also an Options trader so the platform I use is ThinkorSwim. Graphical entry and exit points soon…

4

I’m attaching a BackTest dating back to 9/26/11. When I say “ride the wave” I’m referring to the 1D chart trend. So basically these are the only times you stop trading.
-The 4HR chart is AGAINST a 1D chart trend (the wave) that is less than 2 weeks old.
-The 4HR chart is riding a Wave that is over 2 weeks old.

  • Oh and of course 4pm-8pm (Cancel pending orders by 3pm)

EUR/USD

5

I’m submitting this system in the Trading System of the Month Contest. Wish me luck :smiley:

6

I took some snapshots of October’s most profitable trade.

10/9/11 into 10/10/11
Entry 8pm 1.34
EMA cross EXIT 1:30pm 1.3655
Profit 255 pips

Sunday 10/9/11 15Min Chart

Trade on 15min chart.jpg700×475 62 KB

Rally from 10/4/11 to 10/17/11 4Hr Chart

4HR chart in uptrend.jpg700×476 67.6 KB

1D Chart turned Bearish on 10/19/11 - The vertical lines represent which way we’re trading.
The trend either hit its 2 week expiration or the EMAs crossed back before the deadline.

1D Chart anticipation lines.jpg700×424 53.6 KB

7

I will start posting Daily trade ideas using this system. Please understand the strategy before following my trades.

Daily Outlook
The 1D chart wave is too old for us to ride the rally. The 4Hr chart is only giving us the go ahead for Bullish trades so we have stopped trading. Lets wait for a reversal on the 4Hr chart.

8

An issue that needs tweaking.
When the 4HR chart EMA crosses Bearish, the 15Min will most likely already be in a downtrend. We go ahead and place the trade w/Study Condition. In a perfect world the price would briefly reverse upward and continue it’s downtrend, executing our order. What can happen is it reverses and rallies upward, making the Bearish EMA cross on the 4Hr chart a false positive. We have to confirm whether it remains a false positive or will eventually permanently crossover. Since we know the price level at which the 4Hr chart signaled the EMA cross, we can watch the 15 min chart to make sure it doesn’t run away from us. Need to come up with a number of pips the price is allowed to increase before canceling the order.

For now I’m using discretion but the point of a system is to eliminate impulsive behavior. I could use some help with this one.

QUICKSTEPS

  • 4HR Chart signals a trend
  • We place our order w/Study and STOP
  • Monitor for false positive on 4Hr chart
  • Once the order executes wait an hour to cancel the STOP
    replacing it with an EMA cross EXIT order (Study Condition)

I realize that getting these conditional orders to work the way you want them to can be a hassle. I had custom scripts made for me by ThinkorSwim. Very specific conditions that have to be met before an order is executed. You may experience false positives on the 15Min chart causing trades, that should have never been triggered, to STOP out. The following approach requires you to be on call 24/7. If you have a problem with this, check out this motivational video.

How Bad Do You Want It on Vimeo

Keep your PC on 24/7
Set the alerts to play your favorite song, and put your speakers on blast.
Setup alerts for EMA crossovers on the 15Min chart.
If you are signaled to stop trading, turn off the 15Min EMA alerts.

MANUALSTEPS

  • 15Min chart signals a trend in the direction we are trading
  • If the EMA cross remains TRUE at candle close place MARKET order with STOP
  • Wait an hour to cancel the STOP
  • Set order to EXIT 1/2 at +50 pips
  • 15Min chart signals an EMA cross EXIT, wait for candle close to take profits.

ALTERNATIVE

  • Play off of Support/Resistance and or Economic Data
  • 15Min chart signals a trend in the direction we are trading
  • If the EMA cross remains TRUE at candle close place a Level 1 MARKET order
  • If it moves against you, scale in with Level 1 trades
  • T/P at +50 pips
9

I used the CONTRARIAN method for this trade. At the time the 4HR chart was not BEARISH but it had been showing upward resistance for a few days. I thought any move over 50 pips would turn it over. I was right and now we’re setup, we have the green light to trade. I also looked at the Euro Futures volume which was over 20,000.at the close of the 9:40am Candlestick. Played off potential 1.40 resistance level.

Daily Chart Art - October 26, 2011 | Forex Blog: Pippin Ain’t Easy

10/26/11
Entry 9:45am @ 1.3906
T/P +50 pips @ 1.3854
EXIT Time apprx 10:30am

TRADE SIGNAL 4HR ON 10.26.jpg700×468 51.2 KB

TRADE SIGNAL 4HR ON 10.26.jpg700×457 57.3 KB

10

The core of my system is the Day Chart “Wave” expiration, which tells us which way we are trading. From there I’m constantly switching it up, testing different time frames, entry methods, and target profits. Here are several styles I’m currently working on.

  • Original Method
    TF 15-20Min
    Variable STOP
    Take 1/2 profits at +50 pips
    EXIT at EMA cross

  • ALTERNATIVE method
    TF 15-20Min
    Scaled entry @ S/R levels
    T/P +50 pips

Right now I’m BACKTESTING a new method where I use the 20Min chart to trade EMA crossovers in the direction we’re trading. Regardless of whether the 4HR chart is giving us the go ahead, the trades are placed with S/L 15pips and T/P +50pips. Since there are times in which this method will go against the 4Hr chart, I’ll call it the CONTRARIAN. It’s straight forward Risk/Reward settings makes it easy to BACKTEST.

11

Since the risk/reward does not change, it was easy for me to go back to 9/29/11 and count how many signals were received. Then I just counted the winners making sure they hit their +50 pip profit. The CONTRARIAN and GLITCH methods were both profitable. So I combined them to form the MARATHON. Now we have 5 methods that we can test the shizznitts out of.

These methods disregard the 4HR chart.
Testing moving the S/L to BREAKEVEN after a 20pip gain.

CONTRARIAN
20Min chart signals a trend IN the direction we are trading
Place trade if the EMA cross remains TRUE at candle close
S/L -15 pips
T/P +50 pips

GLITCH
20Min chart signals a trend OPPOSITE the direction we’re trading
Place trade if the EMA cross remains TRUE at candle close
S/L -15 pips
T/P +50 pips

MARATHON
20Min chart signals a trend in ANY direction
Place trade if the EMA cross remains TRUE at candle close
Set alert at +20pips to move S/L to BREAKEVEN
S/L -15 pips
T/P +50 pips

EUR/USD
From 9/29/11 to 10/26/11
Return= 75% or +210pips

12

During November I will be trading in MARATHON mode. All winning trades will be posted along with a BACKTEST at the end of the month. I will use this time to test the new rules.

Monitored EXITs
At +20pips move S/L to BREAKEVEN
At +50pips place STOP @ +20pip price
At +60pips place STOP @ +50pip price and wait for EMA crossover
or
At +60pips place Trailing STOP

Breakdown

13

Hmmm, I really like the results! :smiley: I’m just a bit confused by all the different methods to use, so I’m struggling to try apply the system myself :confused:

14

I apologize for being all over the place. These methods are just rules for entering and exiting trades. When you first start using this system, forget about the methods and levels. Here’s a simpler plan…

  1. Using the 1D chart, determine which way we’re trading
  2. Wait for the 4Hr chart to start trending in that direction
  3. 20Min chart signals an EMA cross in the direction we want
  4. Use the to place the trade
    OR trade EMA crossovers in ANY direction on the 20Min

Take a look at how this strategy capitalizes on a parabolic move.

10/12/11
ADX 20/RSI 69/MACD 0.2
Entry 12:20am @ 1.3623
EMA cross Exit 3pm @ 1.3790
Profit +167pips

Dream Trade

15

Thanks :slight_smile:

How do you get a 20Min chart though?

16

After my LONG trade got STOPPED for a loss of 15pips, I took the SHORT trade for a 50pip gain. The price dropped by more than 60pips, activating the -50pip STOP. We retraced, getting STOPPED out for a profit.

SHORT
EUR/USD
ADX 18/RSI 20/MACD -400
Entry 9:40pm @ 1.4108
STOPPED out @ 1.4058
Profit= 50pips

DO NOT forget to CANCEL the STOPs per the

17

I stopped trading this system to study ICTs trading concepts. His lessons on market study give me the confidence to continue my currency trading career. Becoming a professional trader requires curiosity, drive, intelligence, and a world view. Although this system proved to be profitable, I decided to take the evolutionary path to success.

Long Term view fiber

4year-day chart.jpg700×479 53 KB