Usd/Cad stopped out at BE.
Placed pending buy order in case it is just a pullback and USD news is ok later.
CAD has high impact news in a couple of hours too.
Nice. I’ll take the USD/Cad win for another 20 pips.
Another morning where you could make money on several pairs simultaneously.
I took a few more pips on another usd/cad buy but closed it because we’re waiting for the high impact news in 25 minutes. Shame.
YES. Usd/jpy sell working nicely. Long-term charts look like price has a good bit of room to move up so I am hoping we get a nice pull back on it today. We will see what it looks like in the morning. Taking my pips and calling it a day.
Oops. Another buy limit triggered on usd/cad add 8 pips to today’s profits.
15 pips on EURUSD. Nice! Couple of nice trades this morning.
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@ontario
Hi ontario. Sorry I didn’t get back to you sooner. I get the back testing question a lot.
The problem is that the stop loss is different depending on which signal is used for entry. Also, the take profit is not static either. Although, we have a tentative signal of the six. EMA reversing. Some people, however, just want a certain number of pips profits and want to have a static stop loss. So back testing is almost useless. This is active trading.
Having said that, those who have visited the forum and back tested using a set number of pips for a stop loss and a set number of pips profit have posted the results earlier in the forum thread. If I remember correctly the couple that I saw were in the low to mid 60% win rate.
The idea of the strategy, at least for me, is that because the stop loss is so tight, losing a few trades during the day is essentially meaningless. Once the trend is caught, the one win should more than offset the tiny losses.
When I started the thread in December, I had been following the strategy more closely and noticed that I had either one or two losing trades for the whole month.
That’s my testing. Personally actively using the strategy.
Up 31 pips this morning from pending orders placed near estimated signal points. 3 wins, no losses.
Eur/Jpy buy for 6.
Usd/Jpy sell for 10.
Eur/Jpy buy for 15.
All trades closed by the time I woke up.
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@AmericanTrader I don’t know if you have noticed it, but often the EMA channel acts like support (or resistance) and it provides (at least for me) some more signal to get in a trade. What do you think about it?
Agreed. Any MA could be used though.
I am using the strategy as primarily scalping, so I’m closing based on a lot of other factors. Such as how much time I have, average win size (9-10 pips), support and resistance, and the average size of the last 2 or 3 mini-trends, For the last week, I’ve added a 100 EMA (because of your comment about adding a 200 EMA). Its a guide, but I still close based on other things. I added it to provide an extra signal based on Octopus Squeeze strategy.
There are so many signals between the 5 pairs I am now trading that I don’t need to even worry about catching a big trend any more.
The pairs are like hedging. Either Eur strong or Usd strong. If Eur is strong, I can get my 10 pips or more on 2 pairs simultaneously.(20 pips). If Usd is strong, I can get my 10 pips or more on 3 different pairs simultaneously (30 pips).
Its been working great so far and it has helped me to be able to set more pending orders so the system is closer to automated.
Really enjoying it!
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I should have added, that When Eur is strong, I can also add sells to Usd strong pairs, and vice versa.
So I not only have my 20 pips average for Eur buys, but I also have the 20-30 pips from Usd sells.
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@AmericanTrader where did you found it? I am looking at youtube, t there is just octopus nest strategy.
@Vaczak
That is it.
It seems to go by both names.
The one I watched uses the 100 ema as a filter. I watched it last year.
I think the video title said, “Never lose again”.
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This week, I have been spending my time placing pending orders in both directions on my 5 pairs. Then I periodically adjust them based on price action that has occurred. I try to be very safe and favor the trend. If the low timeframe trend is rising price, The pending Sell order is likely below the 100 EMA and would estimate where the Octopus “Nest” would occur.
I have done this before, but found I did not have the experience to properly place the pending orders, so I ended up losing in both directions. I have learned much since then.
Using this strategy opens one up to bigger SLs. So I am not sure it is best for novices.
However, the Octopus Nest could be used by anyone.
Eur/Jpy buy pending order triggered a few minutes ago and up 9 pips. Looks like room for over 30.