Yea I got stopped out on the short too…then it flew up really fast and hit the long…
crazy crazy
I’m new to demoing this method. I read some of the posts and realize the method has only about a 20% success rate, however it does produce an average of 13R over a year.
One quick question pertaining to what is going on right now (this is my first forex demo trade and I’m trying this strategy out), obviously we all got triggered on the short and then stopped and then whipped back and triggered on the long. Hopefully the long pans out :). My question is: how long do you hold the trade? Until the following Sunday or tp or sl has been hit?
Thanks in advance.
John
Hi Phil,
Am glad my ATR is correct, it cuts down a lot of time wasted on all the setup.
Pls advise whether my understanding is correct:-
On IBFX platform- Jun 24 Sunday candle, the candle’s high is 1.6437 and low is 1.6398. Range + 10 , the line is at 1.6447 & 1.6388.
When it break at 1.6447, go long and it break at 1.6388 go short.
If my understanding is correct, why is different from yours:
Long: 1.6530
Short: 1.6482
Stopped out of the long now too…oh well!
Hi John,
Usually the trade will hit either the SL or the TP within a day or two, but I’ve had it run till Thursday before. It’s never happened since I’ve been trading this system live, but I would close it out before the end of the week if it hadn’t hit the TP yet.
You have to be willing to accept losses with a system like this. We’ve had 1 winner and 5 losers this month, but we still made a profit! Mine was only 1.55%, but if we get that every month then we’ll make 18.6% in a year. That ain’t bad for a system that only takes a few minutes a week to trade. 
I agree!
John
EDIT:
Ryan is right… Your numbers are from the 20:00 candle on last Wednesday, not Sunday.
Your understanding of the system is correct, though.
Hi Mumpips - it looks like you have picked up the H/L’s for the June 24th candle at 20.00 rather than the June 28th candle.
Hi Phil - enjoy the thread and have been following - I trade very similar system but on the GJ only.
Cheers
Haaa…so sorry, is my mistake. Thanks Phil and Ryan, am glad that I got the system correctly. 
HI Phil,
I have read all posts in this thread to make sure I followed correctly, but I am still having difficulties to understand where you get SL 38, can you show me your calculation? Sorry for this stupid question. :o
HI S050399b, I already have a ATR on my daily chart, can i know if i download your file- Version 1 & 2, does that mean that I will get an auto lines drawn on the chart??
Hello Phil, this is my first post on this thread and I would like to thank you for all your help and advice. I have a question on the time frame used to backtest, did you backtest since 2004 on the 4hrs chart or on a lower timeframe to see the inside movement of some candles?
Many thanks again and congrats for the system.
Version 1 doesn’t have this feature.
Version 2 has…
No problem… there’s no such thing as a stupid question!
The Sunday candle had a high of 1.6520 and a low of 1.6492, which give it a range of 28 pips. Since we’re entering the trade 10 pips past the high/low the stoploss would be the range (28) + an extra 10 pips, which is 38 pips.
Hi Phil,
This strategy suits me well as fulltime homemaker with 2 children who needs a lot of attention.With that I still can trade while busy with my precious.
You are brilliant!
Thanks a lot:)
Will there be any problem if I download Version 2 while having my existing ATR?
How to download on IBFX?
Thanks
Hi Phil,
More question:
(1) can i use this strategy on other pairs?
(2) Do you incorporate with news while you enter this trade??
(3) Base on your explanation on SL, if SL range is 38, it means i will “Set SL to break even once your profit has reached 2x your stoploss” as stated in your 1st post?
(4) Do you use price alarm feature as encouraged by NickB, he is using GFT?
I am still trying to understand GFT order feature, confused as they are not so straight forward like what Oanda and IBFX have but I like their price alarm, it works well for me. As far as i know their spread is lower too. Do you think so?
Thanks
Don’t think it conflicts as it’s drawing lines on the chart.
- unzip it to C:\Program Files\Interbank FX Trader 4\experts\indicators
- restart IBFX
- add it from custom indicators
need to wait until next week for it to draw automatically though
Thanks, I will do it next week
(1) You can trade on more than one pair as long as you watch out for correlating pairs. If you were to trade this on GBP/USD and GBP/JPY, for example, you would pretty much get the same results on both pairs because they tend to move together. So if you’re risking 2% per trade on 5 correlating pairs every time you lose you’ll be down 10% of your account, and since you can expect losing steaks of 5+ trades on a regular basis with this system that can be disastrous!
(2) I completely ignore the news for this system. I’ve found that half the time the news helps me, and the other half of the time it hurts me, so it all evens out in the end.
(3) Say our entry for a long trade was 1.5000 and the stoploss was 50. Once the trade got to 100 pips profit (SL of 50 x 2) I would move the stoploss up from 1.4950 to 1.5000, so if the trade turns around and fails we don’t lose anything. Around half the trades in this system end up doing this, I just don’t count them in the win rate since they aren’t really winners or losers.
(4) Yes, I do use alarms with this system. I use them to alert me when price gets to point I need to set the SL to breakeven, and to tell me that the price is approaching the profit target. If I’m around I won’t take my profit at the TP automatically, because sometimes it goes through the target and I end up getting a couple dozen more pips out of the trade.
I believe Nick uses both GFT and MB Trading. I’ve never used GFT to trade live. Their pushy sales reps scared me off!