captgrumpy
Hello Clint–First off I want to thank you and simple siman for your interest in my proposed plan and all the work you have put into it.As noted,I too wondered why so few traders responded-- I
suspect a couple of things–it’s for SWING trading–it uses Heikin-Ashi candles --I am pretty sure there are hundreds of new and struggling traders who might benefit by at least having a look --Oh well --like is said ‘you can lead a horse to water,but you can’t make him drink’! You two have gone over the plan’ with a fine toothed comb’ and you have come up with a lot of things I
didn’t know about and it is probably better I don’t because then
I wouldn’t feel comfortable with the mild aggressive aspect of
my plan Let me digress a bit to give you some background as to how I came up with such a 'wild’plan I am 89 years of age,got ,\my first com[uter ar 80, got into Rx trading in 2011-signed up with oanda for a practice account–soon after got an active account–($5000) before long lost most of the funds in both accounts (does that sound rather familiar?) I decided that if I
stayed with Fx trading I had better learn a lot mote about this business.So I did a lot of reading and studying trying to find a good trading strategy I could use–since I was unable to do this I decided to try to find a plan of my own–This plan had to be simple,easy to use and profitable–Having spent at least 2 years
trying to PREDICT when a particular currency pair MIGHT reverse
direction (as I suspect most traders have,and still do) I finally decided that doing the same thing over and over expecting different results was not working,I decided to try to see if I could
learn exactly when a pair ACTUALLY reversed–not when it MIGHT.So after another 2 years or so I finally did come up with a
pretty good plan but it took another couple of months before I discovered the WMA5 seemed to be pointing out potential trade points when the Heikin-Ashi ended or began a run–then when I
took the chart to maximum resolution ,when the candles now became solid blocks,all the details became much clearer I didn’t
believe such a simple thing like a WMA5 could help spot
entry and exit poins—so after doing some back testing I was
pleased with the results so decided to post it on babypics hoping
it might help other traders–so that is how all this came about.
Now to get back to your last post about really give the plan a good test–a few comments–I was surprised that your oanda
charts closed at 1700 hours–my chart (1 day ) close at 0000 hours12 hr charts at 1200 and 0000hrs.–8 hr charts at 0800–i600–0000 hrs and so on .With your charts closing at a different time I don’t expect your results to be like they would be with my
chart.–also if you are not going to trust the WMA5 signal that too will affect the outcome–If you do not have your chart at maximum resolution you may not clearly see when the WMA5
makes the change–here it shows the block hit with lots of time to make the trades at the close of that block (trade between 2345 to-0000 hrs on my chart–gets close to actual closing time)
Since posting this plan I have changed the WMA5 setting to WMA 2–it shows the small peak clearer and spots the PTP
up to 2 days earlier than the WMA5 I know you find this hard to
accept because it goes against the normal–I mentioned at the beginning you would have to be prepared to do something
different–well this is something different!!!
Another thing I found --the WMA 2 (in place of WMA5)_Works
equally well with the candlestick candles–I checked the EUR-USD charts back about 2 months and the results were identical–same price-- -same day. The 2 charts look different,but in the end the-- same results.
A statement""" Every time the WMA2 makes that small peak when it changes direction,it indicates a POTENTIAL trade point (PTP) (this instead of the confusing TP)–however–every indicated PTP does not qualify for a trade–!!There are certain checks that have to be done when a PTP is indicated–such as the chart trend—whether the WMA12 is away from the main chart (if quite far away chart is in a positive run and will remain on the run until trade is closed by a qualified PTP–Also,where on the chart the PTP occurs–if it occurs in the top or bottom 25% of the chart the trades are made without further checking.
When a trade is closed --if the signals were strong enough to close the trade they are equally strong for opening a new trade.One just has to have faith–it takes considerable practice to
have confidence this is OK–If a trade is made and the WMA2 does not cross the WMA12 the trade is closed,usually with a bit of profit,so there isn’t a big risk if a mistake is made
There care two other items I 'd like to mention—One is about stop loss setting 9that I wasn’t tvery clear on–as you know this a matter each trader has to deal with and come up with a good SL
plan that suits their style and gives he necessary protection.This is how I use the stop loss factor–When a trade is opened I enter details on a daily work sheet–I write down the maximum number of pips I am willing to lose if the chart goes the wrong way–if that number is reached the open trade is closed–take the loss and wait for the next PTP to open a new trade–this seldom happens
because if the WMA2 does not cross the WMA12 the trade is closed–however there are rare times when the chart may go up a bit before starting down as it was supposed to -with the closing plan in place there is no panic if this takes place–I do set s stop loss well out just in case the chart takes an unexpected move against me .For the 1 day chart this SL is set at 400==seems high but I would rather lose that much than be wiped out.I have a policy to never hold a losing trade in the hopes it may bounce back-I just close the danged thing–take my loss while it is still small and move on to a new trade.The second point eludes me at this moment.I hsve rambled on far too long ,but there a few oo[points I wanted to clear up—Looking forward to the results of yout testing.I hope simple siman sees this episode too–maybe he’ll have comments !! In he mean time–good trading
captgrumpy…PS–spelling may be a lillte strange at times!
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