Starting out trading and dont know how to make Profits?

Beginner Questions
173

Hello Manxx,

nice to see you posting here again.

Yes oil was a great security to trade the 5-day methode the last few months (and at beginning the 40 days aswell). Did you use the 5-days methodes like you posted in the 3 trades above or did you stick to the changed 5-days which you were explaining in this thread before?

I saw a post of yours where you explained how you missed the big recent down leg in oil. according to 5-days systems you should have entered a short position and earned quite nicely on it. did you?

Oil traded o the high-5 system yielded a profit of 17% account growth in the last 1.5 months. i hope you gained nicely on it mate.

174

Hello Bob,

i am sorry for being so bugging about testing and i am very thankfull that you did the backtesting! I know you are bussy aswell. Unfortunately i never bothered to learn computerized backtesting since i have no issues doing it manually, but i realized in the forum that people love to see the graphs and that it gives them a more comfortable feelig to trust/believe in the system when it is backtested by computers.

I will aswell try to find the time to figure out how to backtest supported with a computer is beeing done and then i wont be stealing your time away friend.

175

Bob - Really appreciate the explanation of the bot’s activities - the logic makes perfect sense. Would you be able to clarify/confirm a couple of things I’m not 100% sure about:

[B]The Switch[/B]

“We have defined that switch with a rule that says if the trade is in profit by “nR” [B]and it breaks the 5 day channel[/B] then switch to the 5 day management plan by closing and reversing.”

Does this mean that when there is a break out of the 40 channel, the bot immediately starts looking for (or calculating) for a 5 day channel (to nR risk of the 40 day channel) above the break (long) or below the break (low)?
[B]
The Stop Loss[/B]

“Because this is managed internally by the bot no stop loss or take profit is issued on the order ticket.”

I must confess, I find this a bit scary. I guess this a matter of having trust in the bot (and the broker and the market) - but I do like to keep a close eye on stop losses, especially if the market is potentially volatile enough for stop losses to be skipped? Is there any way the stop loss and pending orders can be displayed, maybe even by using another another indicator or a trade manager alongside of your bot?

Also, if the stop losses are managed internally by the bot, have they been applied on the broker’s server? I’m wondering whether disconnection failure would be an issue?

GBPUSD - I didn’t choose this pair specifically for any reason. I have 7 currency pair set-ups running manually and put the bot on all of them to see what would happen (demo account!). I’d already had a profitable trade on GBPUSD because of the unexpected UK election announcement, before installing the bot. It was just a coincidence that I’d installed the bot at this time, on this pair.

When I’m not sure if a market is ‘hot’, ‘semi-hot’ or looking like it might be about to start (or even stop) trending, I’ll start a 40 day entry, because for me, it takes the guess work and subjective ‘reasoning’ out of what constitutes a trend and when to enter. I’d actually been doing this for some weeks beforehand and was encouraged by Turbo’s suggestion that you program the bot to open with a 40 day entry.

I’m still mindful that the method was designed to be used in a trending market.

Many thanks again for sharing your bot and for your time in responding to my queries.

1 Like
176

Turbo - that’s great. Yes you did understand the query perfectly and your answer is perfectly clear. Many thanks!

177

I am trading what one could call the “High-5 Lite” version! :smiley:

There are three reasons why I cannot jump straight into the normal High-5:

  1. Crude Oil is a brand new “security” for me and I am not yet sufficiently familiar with its movements to “blindly” trust leaving such long stoplosses during the intial few days. Although it has been relatively clear in direction and “well-behaved” so far this year - compared with some of the wild gyrations during last year that I’ve seen whilst back-testing!

  2. I am gradually migrating from day-trading to longer-term positioning and I am not yet willing to leave positions open over weekends and holidays - especially with an unfamiliar commodity! :slight_smile:

  3. The strength of the High-5 method is that it has positions in, on average, 5 different securities. So any smaller losses in one is compensated by bigger wins in the others. But I am a one-product guy. I need to be totally immersed with a deep passion in my commodity and I cannot do that with multiple products. Therefore I need to avoid the possibility of a series of losses on Crude Oil without the compensation of wins from elsewhere.

So my “lite” version is that I take my [I]direction [/I]from the low/high of the past 5 days but I take my actual entries and exits from my 4-hour chart. I began with using the 15m chart that I was most familiar with (which I also used here earlier in my eurusd comparisons), and then migrated to the 1 hour chart and now I am brave enough to work from the 4-hour - but always in the direction of the current High-5 signal.

As I mentioned on the Crude Oil thread, my aim is to “earn as I learn” and avoid any big risks at the start of this venture!

During the first down move I did well but with too many small trades with wide spreads eating up a lot of potential gains. I also did well on the subsequent upmove with fewer trades. But I was so sure of the upside potential of oil that I refused to believe the latest down signal on both the High-5 and on my own charts as well. As a result I totally missed the first leg down, but caught the second one ok. The plus side was that I [I]did [/I]actually close my long positions only three pips from the high of that entire move (feels a bit like a hole-in-one in golf!) and the charts kept me out of going long again - one really has to have faith in one’s charts in this industry!

I [I]would [/I]have done better on all three trades if I had just opened the one High-5 trade per move and just left them alone! But I am a naturally cautious trader and I consider that was a good trade-off at this stage for the reduced weekend risks and closer stops, and I am loving every minute of it - and in profit! :smiley:

It is because I am not a “purist” High-fiver that I am not posting my stuff here as its a bit of a hybrid. But I [B][I]am [/I][/B]using it and I thank you once again for introducing it here. :slight_smile:

178

Great thread Turbo thanks for your effort

179

Hi TURBONero,

i tried this system las week and pasted results below…

turbonero high 5.jpg700×262 38.9 KB

2 loses were completely my mistake, it wasn’t related to your system… so, all the trades that system triggered are in profitable area and gained me about %8…

Thank you for sharing this grate system… i don’t know if i did it wrong but end of the week i closed postisions but left the counter trade positions… at the begining of the week, i’ll recheck all pairs and i guess this time i’ll left open trades as running, not going to close them…

have a good day…

180

Hi Turbo, i posted one of my trades according to your system and have 1-2 questions… by the way, if i misunderstood of your system, please correct me… i’ll be glad if you answer questions, thank you in advance…

gbpchf m1.jpg700×334 37.2 KB

i checked for gbpchf monthly chart and decided that this pair is not moving via a trend, it’s mostly horizontal so i have to apply high five system as high fourty, right?? : )

gbpchf d1.jpg700×341 35.8 KB

This is the daily chart of the same pair… arrow pointing 40th day… i placed stop orders(which long one trigered after couple of hours later)… here is the second question… i got to place stop loss at the middle of high-low levels of last 40 days so i did this but as you can see in the below attached picture, it’s reaching %2 risk value which you mentioned in the first 3 posts…

gbpchf position.jpg700×461 45.4 KB

so, in this case, should i arrange the stop loss level to %2 risk ratio or should i respect to high five rules(this means do not enter to trade)??

and, as i understand, you said that after trade reached to 0.5 risk/reward ratio, we should change stoploss via last five days low(or high) but stoploss is changing daily, every day, i’m counting back 40 candels and sometime i have to change order levels, so stoploss is moving… every day, risk rate and stoploss is changing so i didn’t figured out when should my stop loss involve from 40 days to 5 days methode… if i can not explained, tell me so i’ll post an example with attachments and numbers…

181

hello Tilden,

you can immediately start trading the high 5 on the gbp/chf securoty. close your actualbtrade (no matter if profit or loss) and open a high 5 methode trade. i will explain later in more details why.

182

Do you adjust the bid/ask depending if long or short?

183

.but this is an excellent one and it should remain visible…

184

I hope not violate forum rules… I am not trying to increase the thread’s viewings, but rather

I am trying to get more people to engage with the possibility of a profitable system… It seems

a shame that so much effort should sink, unnoticed, down to page 345 :slight_smile:

185

To be fair it’s a system you would need to be running for at least a month before assesing it’s potential. So there may be followers who simply haven’t posted yet.
Also Its in the beginner section and I get the impression most beginners on here want to be in and out of the market 20 times a day not put there money in a system and let it run.
It’s a great little set up imo though and I am trying it out with a small amount at the moment.
But Nero did say at the start it won’t help anyone I think he’s probably right for the most part. :slight_smile:

186

Hello PMH,
I am experimenting with this system since it does not take much of my time and I am trading small positions. I am only working with 2 pairs to start, EUR/USD and USD/JPY.

My first trade on EUR/USD was a short that resulted in a loss of -98 pips. I then immediately entered long on May 15 and currently have locked in profit of 120 pips.

My first trade on USD/JPY was a long that resulted in a loss of -13 pips. I then immediately entered short on May 16 and currently have locked in profit of 74 pips.

Like Donovan said, it will take time to do a reasonable evaluation but I like what I see so far.

1 Like
187

I am still tracking this with Crude Oil (WTI) and am now on the 4th trade. Results so far:

+408 (2.3.-29.3.)
+383 (29.3. - 18.4.)
+455 (18.4. - 11.5.)
+353 as at close 24.5. (still open entry 47.73 on 11.5. stoploss at 48.03 from 18.05)

BUT…a word of warning: Crude has been moving this year in exceptionally smooth and regular cycles. I don’t consider these results typical when compared with backtesting through end of last year. But they [I]are [/I]results!

I would also emphasise here that, if I have understood the method correctly, its strength lies in following 5-6 (preferably non-correlated) securities and not any particular one on its own. In this way the exceptional results from the winners cover the more moderate losses on the others.

So Crude Oil certainly looks like a good candidate as one of the portfolio securities, but I would not recommend applying this method [I]only [/I]to Crude - but that is not, as I mentioned, the idea here anyway.

188

Update to yesterday’s post:

From the point of view of the characteristics of this method, yesterday was an interesting day.

The current open position mentioned in the above post had a marked-to-market gain of 353 pips with a stop at 48.03. As we saw, there was subsequently a major collapse in Crude Oil prices yesterday following the OPEC meeting (see “Trading Crude Oil” thread if interested to learn more about that) …but it did not fall enough to stop and reverse the position with a daily low at 48.435 - so the position remained open all day and was still open and long this morning at the open.

But, naturally, yesterday’s low now became the lowest low of the previous 5 days, and so the position is now stopped, today, and reversed at 48.435.

This is interesting in that despite the fall yesterday it still closed with a profit of 71 pips - which is still a good result - but fell from a potential gain of +353 pips - is that also good? Or is there a way to avoid such giveaways?

Trailing stops are definately NOT the answer because that destroys the whole concept of a 5-day low which is at the very heart of this method.

But, I am wondering, is there any sense in identifying what is a “normal” type gain for the market concerned and reacting if and when the price moves into that “typical” range? For example, with this Crude trade, it was already clear that the price was approaching levels that could be considered limiting without additional structural input (e.g. from the OPEC meeting) and that the existing gain of 300+ pips was already within a typical gain seen so far this year. Maybe in these types of situations there is an argument to “step in” and lock in a reasonable profit with a change in stop level, regardless…?

But, of course, this method is designed to work [I]without [/I]any additional thinking or analysis - and it did exactly that, for the fourth consecutive gain - and one can’t knock that! :smiley:

189

Manxx, thanks for sharing that. It sounds like one can’t protect against a large move against you. The only hope is that you have locked in enough profit before the move.

I had the opposite happen to me on USD/JPY short. When I opened the position, my SL was 150 pips. The next day, the position moved [B][U]250 pips in my favor[/U][/B]. So now my SL was close to 400 pips away. I did not want to give it time to come back without locking in some profit. So I moved my SL to 150 pips, even though it was significantly lower than the 5 day high. This allowed me to lock in some profit and still give the position a good amount of “breathing room”.

Which brings me to what to do when coming into the weekend. A big gap against you can easily blow past the SL and give away all the locked in profit. What I will do is close my positions before the Friday close. If it opens after the weekend at about the same level, then I will immediately reenter the position. If it makes a big gap then I will have to decide what to do at that time.

190

Personally, I think that sounds very wise! :slight_smile:

Although Turbo promotes the method as one that does not require additional thinking , analysing or guessing, etc, it doesn’t mean one [I]cannot [/I]excercise discretion when it seems appropriate and prudent. I am sure Turbo would fully agree that risk management and profit protection are worthy considerations when one is already sitting on a good profit. As they says,[I]“a bird in the hand is worth…”[/I]

Congratulations on your trade! :slight_smile:

1 Like
191

Hi all, i’m trying ths system aproximetly 2 months… i’m seting positions and stop loses every morning, when i came to work… i’ll paste details of my demo account but initially i should say, even if you are really in profitable area in general, you usually get bad results because of stop losess… i paste couple of posts earlier in this thread which shows that almost all 14 pairs are in profitable area, in the history tab you see that your trades are always closed with negative values… i must admit that, turbo said that you should open maximum 5 or 6 trades in the same time but i just want to give a try to whole system than i’ll analyze results… and i must add this also that i’m useing high 5 method for all 14 paris except nzdusd… i got very bad result on usdnzd and us500 so i quit trading on us500 and evolved high 5 to high 40 on trading nzdusd…

After couple of week, i’ll try to setup new orders in the begining of week and going to close at the end of week…

These are my open trades:

hihg five open orders.jpg700×369 58.1 KB

as you see, most of them are in profitable area, actually total earnings was aproximetly 200 dollars at the morning but now it’s pulled back to 150 dollars…

and these are my history results…

hihg five history1.jpg700×550 90.2 KB

hihg five history2.jpg700×536 89 KB

in totall, loss of 148 dollars

as i said before, may be i must choose right pairs or i must edit the system to get much more profit… i am now just collecting raw data… if manxx, pip me happy or espasially turbo helps to make this system more efficient, that would be greate…

193

I KNEW this trading style looked familiar.

Thanks a ton, Miss. :wink: