So many trading systems

I am quite new here. Read the school and some posts here and there.

The thing is I see so many trading systems on these forums. I want to ask what trading system can people recommend here that has been tested and proven to work.

I want to generate some opinions from people who have used some of these systems listed on these forums and which one works best for them.

Ideally, I am after a system which you does not require too much time (2 hrs a day max) and consistently generates reasonable profits.

Welcome bzltop

I think you’re just going to have to roll up your sleaves and be prepared to go to work and figure that out for yourself. What you’ll find is that some systems work for some people, but whether you’ll be one that it works for can only be answered by you trying them out.

Some systems take a little bit of prep work to analyze and recognize a trade opportunity…which might take a couple of hours of going over various charts. If your trade is of a long term type, then once you open it, you basically let it progress over the course of a day or more, and just check on it for a few minutes here & there. If you’re scalping then you can be in and out of a trade in a few minutes.

Enjoy the journey :slight_smile:

I suggest the NickB system (see attached pdf file). I’ve had a 26% return this year using it.

Although I may be biased, I also suggest my Sunday Breakout System. Only takes 15 minutes per week and it’s had 17.5% return so far this year.

nickbmethod.pdf (476 KB)

I’m in agreement with SweetPip. What works for one person will many times not work for others. Best bet for you is to try out a bunch of the different strategies first in demo.

See which ones you like and don’t like. Then, if you still don’t have something you feel is good enough for you, you’ll now have the experience to be able to put different indicators and trading fundamentals into your trading plan making it even better.

That’s just how I did it. And seeing as there is such a diverse amount of different ideas on trading, it kinda seems like that’s how many others do it to…

It can be extremely frustrating starting out trying to find that system that always gives 80% wins or better, but the truth is, there isn’t one. Just earlier for example I was back testing a system that I have been working on myself, after back testing manually over a couple of months on the charts I couldn’t believe the results, 76%, not to bad for a nooby right? Then I decided to test it more, and after 4 hours of manual testing it is more like 50% succesful. The problem is the markets change, from week to week, or month to month, or even year to year. One system might be great for awhile, but then it will turn out to be a loser, only to be useful again later on. S&R, candle sticks, and some fib lines really seems to be the way to go. The market doesn’t care what your indicators tell you, but they do care about support and resistance, and for some reason fib lines, if used right. So after about 6 months of studying this wild market, thats how I feel about it, price action is where its at.

I will share this. hope it helps.
I use a 15 min chart with 21EMA (exp mov av)in black and 10EMA in red. 21 is a bull/bear line. If price action is above it, only trade long entering at 21ema allowing for spread. stop 20 pips for Eur/usd. Take profit at Boll Bands with trailing stop.

If prices below 21, only trade short entering at 21ema. Works pretty well on weekly to 1 minute but smtimes better than others. Repeatedly it retraces to 21 and heads off again.reason for 10ema is to reflect heat or strength of trend. at some point even a strong trend will retrace to 21 briefly. If you get stopped out at 21, wait for confirming developments. Distance betw 10 and 21 lines refects momentum. NEVER countertrend trade when things are running hot.
try it. Works for me.regards Craigus

I understand different trading systems work for different people. All I am asking is what works for you.

phil838 and craigus, what has been your returns with those trading systems over a longer time frame and how much time do they require?

I’ve only traded my Sunday breakout system live since the beginning of the year, but my manual backtesting shows a 408% increase from Oct 2004 to today. That’s trading 2% of your account per trade and compounding the winnings into each trade…

I’ve traded the NickB system since mid 2008. I had a 22% return for the half year I traded it in '08, and then an additional 26% since Jan of this year.

I don’t have backtesting results for the NickB system, but I have friends that have been using it successfully since Nick released it in 2007.

Both these systems combined take up less than 30 minutes of time per week.

By the way, I applaud you for asking these questions!! You’d be surprised by the number of people that can’t understand that trading has to be profitable in the long term, not just for a few months.

To be honest I haven’t got stats to prove %'s, but I wd estimate around 80% profitable. Sounds a lot but on an hourly chart, the runs from 21EMA to BB and beyond are significant. I am very much an intuitive type trader which ‘senses’ a changing behaviour in price action (even if it is resistance to run) b4 the actual facts become apparent. Sometimes I just dont take the trade. mostly I am wrong about that, becoz I am constantly surprised and amazed at how often how many subsequent trades were [U]still [/U]profitable after I have sat on my hands. However, the last trades wont reach BB as the trend runs out of momentum. Reducing take-profits apply. It’d be interesting to trade this totally mechanically until stopped out to the contrary.

I am going to be brutally honest here. My psychological weakness is self discipline (by entering ONLY at 21ema). My system or methodology is profitable. [B]I am the weak link[/B]. Eliminating countertrend trades has been a major step forward for me.The best thing I can do is assess the mrkt, preset an order at smartest entry,and trust my system. Assessing the graphs is a 5 min job, but we often have to wait for the optimum risk/reward probabilities before we commit our precious capital. Hope this helps. Happy and safe trading.:slight_smile:

hi bzltop, i have to second what phil838 says.the nickb method is a great way to trade.

the pro’s of this system are; 4 hour timeframe, relys on price not lagging indicators, high probabilty trades. consistant 100 pip a week average.

there are alot of systems to choose from and it can be confusing because everybody will claim there system is the best. You will have to determine for yourself what works for you.

A few things to think about, you always want to protect your investment so money management is a must!!! you should read that twice :smiley: money management is a must!!!

even a great system can fail with poor mm. When you here things like I made 300% today or i consistantly make 1200% monthly, these are usually people that are risking way to much and got lucky. When people read these claims they get stars in there eyes and jump in with there money and the unfortunate inevitable result is a margin call or severe loss of funds.

Just be smart and before you invest real money in any system, you must first fully understand it. demo it and get a feel for it then when you are comfortable with the way the system trades, you can trade real money.

good luck, john

Yes Nick Bs method is great, and I would recommend reading his ebook, but as Nick B states in his ebook he doesn’t like calling his trading strategy a system, it is price action focused around support and resistance. He doesn’t wait for indicator 1,2, and 3 to all give him the go ahead, and he and many others have been having great success. I have spent alot of time working with indicators only to have little to no success, the only thing that has been working for me, and keeps working is price action, I would recommend taking a look into that.

Nick B states in his ebook he doesn’t like calling his trading strategy a system,

I agree with that. In my post i used the word system to generically describe any trading method that comes your way. Nick’s method is not a system it is a way of trading coz he strongly advocates using your brain and think and make trade decisions and not when x and y cross.

If you want when x and y cross congradulations you have alot in common with 95% of traders out there and you know what that means.

bottom line for anybody reading this, there is no easy shortcuts and no perfect trading models. the only thing you can do is study the charts, observe how price moves and come up with a way to trade those movements that is profitable.