Your absolutely right, I have turned a corner however last years 35% profit following long term supply & demand now feels more of an emotional gamble that paid off. After all I went through I feel I do not want to trade using discretion & pure technical skill. I will always feel a gambler otherwise. After many years of back testing supply & demand, I came to realise I wont be able to analyse correctly after a series if draw downs. This was my turning point.
I asked myself the question “Would I invest my hard earned money with someone who relies on technical skill or someone who can show me in black & white how he trades by following 100% mechanical rules”. Further more with documented proof that this company is profitable over many many years with a nice steady annual return. If the answer is yes & I have free access to all past data, strategy reports, profits, losses & even the individual trades taken per strategy, then I would invest whole heartedly. Now thats the quality of a trading firm I would invest in. So with that in mind I will strive to achieve this from this day fourth. I will be that company. Thats my vision of trading.
Thanks PipNRoll.
[B]Live account update[/B] - Slingshot live account update 20 Apr 2014 - YouTube
Balance $277
Floating $292
[B]Live account update -[/B] Slingshot live account update 24 Apr 2014 - YouTube
Balance $269
Floating $301
[B]Live account update -[/B] Slingshot live account update 28 Apr 2014 - YouTube
Balance $285
Floating $320
Price has bounced back a little last week giving some profits at the weeks close. The monthly trades are floating around $320 so hopefully on Wednesdays close (end of month) the profits will still be there or better. Who knows?
I have not had much free time lately to back test further pairs etc but I will plug away when I get time.
There is one change I am seriously considering with this strategy, and that’s to only trade uncorrelated pairs to smooth the yearly result. All is explained in my video. Nothing has changed regarding the rules. The rules have been tested over time & I will continue testing more pairs for confirmed data that this strategy is profitable over the long run (Many years).
Please feel free to post setups in other pairs if you too are testing this strategy.
Hey Tyrone,
Dude you are putting in some serious work into this. I’ll be following along with you so keep up the great work!
Hi Tyrone. First, thx for putting in this effort and sharing your results with us.
I have a question regarding one of the rules set out by Martin Alexander in the video you shared in your first post. He says in order for a M30 setup bar to be valid its range must be a minimum of 15 pips. Since you use mostly weekly and monthly bars what minimum range do you look for on those time frames?
I don’t have a minimum. If anything the less pips the better as price sometimes breaks out with a massive move. All I’ve done is keep the rules simple & back tested those rules with all results recorded on youtube. If I was to change a rule then I would have to re do all back test & cross reference my yearly results. This is my rational for back testing data.
Im actually working tonight but will make a video update early morning sometime. Balance is up slightly from last week.
Thanks. Its a serious business.
[B]Live Account update -[/B] Slingshot live account update 5 may 2014 - YouTube
Balance $311
Floating $310
Tyrone, thanks for an interesting thread. You have got me thinking. I have been studying forex and demo trading various ideas for a little over a year. I have a pretty good grasp of most of the principles and have spent what seems like thousands of hours looking at charts. I have come to the conclusion that it is practically impossible to predict the direction of price and therefore to look at individual bars. At first engulfing and inside bars, but I am now thinking perhaps any bar with a wide enough range may be tradable. It goes without saying that price will moves up and down and therefore there are two potential trades on any candle. I would be looking to enter as follows:
In the same direction as the closing candle by entering when a candle from the next lower time frame close above or below the closing candles high/ low (in the case of the daily time frame, when a 4 hour candle closes above or below the closing candles high/low). I would set my stop loss at the mid point between the closing candles open and close with a take profit of the entire length of the closing candle. This method of entry is based on a video I recently watched of trading engulfing bars. Using the next lowest time frame to determine entry should eliminate some of the fakeouts.
In the opposite direction of the closing candle by setting a buy/ sell stop at the mid point between the closing candles open and close. The stop loss and take profit would be set at opposing ends of the closing candles open and close. I base this method on an observation made by a subscriber to one of the “celebrity” price action traders, that inside bars nearly always go on to reach the host candles open or close.
However, your slingshot strategy provides a third method of entry, in the “unlikely” event of price rebounding once entry has been made in the same direction as the trade.
I like the lower time frame because it is all about current price, does not need indicators and hopefully is pretty much free from outside influence. Unfortunately too many distractions, make it difficult for me to back test this properly.
Respect and all the best buddy
Hi Daxter1962.
I will look into this. I will do some initial back testing to see if there is a pattern (edge) to these approaches.
Thanks for bringing this to my attention.
Safe trading bud.
Here’s an initial test of this idea. I will call this the [B]catapult[/B] for now.
This video is for this thread only until all rules are in place.
Be patient as the video may still be uploading.
[video=youtube_share;YvVAH3UmA6o]http://youtu.be/YvVAH3UmA6o[/video]
Hi Tyrone,
Good work mate. I am English but have been living in NE Thailand for almost 3 years now. I am still in the studying stage at the moment but since I am not working, I have spent a vast amount of time studying forex and an awful lot of it is now falling into place.
Your method is slightly different to the method that I am looking at. insofar, that I would set a stop order in the opposite direction of the continuation trade with a take profit at the open of the trading bar (weekly in your case). The placement of the stop loss you demonstrated may not be sufficient and you may care to look at placing it a couple of pips below he trading bars high or low. You may like to look at this video on which I base my entries. (It is not my video) Forex Engulfing Candle Trading Method - YouTube
Regards
Andy
I would add that the profit targets could be changed depending on the whether the pair is trending.
Slingshot would come into play if a long trade were entered only for price to reverse.
This strategy is in its early days and has not been satisfactorily tested but I believe it may have some merit.
- should of course read profit target on the chart.
Maybe I interpreted your above post incorrectly, but you have two methods above. I was referring to the 1st method of moving with the higher time frame bar direction (Opposite to the slingshot method). Here you state the stop goes mid way between open & close. The only confusion was whether the stop was the higher time or entry time frame. I used higher time frame to let trade breath. I have back tested this in the eurusd from jan 2001 till jan 2010 with a positive result. I couldn’t stop myself last night & glad I didn’t. This is a method I am confident about so I will now Live test. Journal is here 301 Moved Permanently.
I will however take a look at the video link you posted to see if I can improve or indeed come up with another idea for a strategy. Thanks for your input.
The stops and take profits are all on the higher time frame. I am not so sure about the weekly though. I think it may perhaps be best suited to the 4 hourly chart, with entries based on a break of the high or low by the the 1 hour candles/ bars. I am currently opening trades using the daily charts which are suit me fine. This morning I opened 7 trades and all quickly moved into profit to the total tune of about 100 pips before pulling back. I have my opposing stop orders in place at the positions of the stops. I suspect the strategy will need tweaking ie looking at the positions in relations to trends and S/R(something my head says, but experience shows price will do what you least expect it to). I will see how it goes.
Keep me informed how you do over the next few weeks. Im very interested.
I watched the youtube video which makes things a lot clearer. I Shall retest all EURUSD data from 2001 to 2013 following those simple rules to see the difference in profit/loss etc.
Like you said maybe S/R, trends or even volatility rules maybe added in the future to filter loosing trades. Something I will look into over the next few months. So much to do & not enough spare time to do it.
All the best with your trades
Slingshot end of week update - Slingshot live account update 9 may 2014 - YouTube
Balance $290
[B]Floating $360[/B]
[I]Having a good week so far. Floating profit is rising fast with some descent Weekly bar profits to take Sunday close (fingers crossed).[/I]