The 3 Duck's Trading System

[Ray_1]

I will say read through both threads and gather your own research through demo. What is best for one may not be the best solution for others.

[Indifferent]

Duck, a good trading system, can you share it with me?

[Clint]

Duck, a good trading system, can you share it with me?

We sure can !

Scroll back to post #1 in this thread, and start reading.

[CoinLady]

I’m still in the process of going through this super loooooooooong thread so forgive me if this has been asked already. I’m just wondering, for those of you using this on a live account, what pairs are you using this for?

[CoinLady]

Thanks @Ray_1. I’ll probably start with 3 ducks.

[Ray_1]

You can use this on any pairs you prefer. A good recommendation is to use on those pairs that has good daily range.

[CoinLady]

I see. Thanks @Ray_1. I was planning to focus on 1-2 pairs for learning purposes but do you suggest that I observe more than that and enter trades based on what I see as having good daily range?

[Rickster99]

Hi wow this is a very long thread which I’ve started to read. I have just read a few of the last posts to catch up but am I right in assuming no one has been consistently profitable using this?

[NScrilla]

I visited this back in 2014, 2015 and 2016 but never seemed to be able to make any progress with it. People on here have said they have and it is a simple system but what kind of SL and TP’s are you using? Maybe this is where i went wrong. I could probably dig my old journal for it up.

Has anyone actually ever posted their trades in this thread? I remember people claiming they were making many pips but they never wanted to post their trades.

[FMIC]

What do you mean? This thread is has many trades by the author and on occasion by other traders too. Maybe no so much as of late, but there are plenty of trades scatter through-out the thread.

Unfortunately, this newer “scrolling” method that BabyPips now users, makes it difficult to go back and check all that content so I can understand that you may not seem to find such examples as easily as before when the thread consisted of pages.

[NScrilla]

Well I have over 500 trades on this system and have been not able to make it work. I have two full journals at around 250 each even have pictures of before and after… I am rather interested to find out what exactly I am missing here. There may be random trades here and there but from what I remember no one actually posted a series of them.

[FMIC]

Well it is to be expected that almost no one is going to post their full trading history here because it is something private. Also, this method is not a “strategy”, it is a method which still requires some extra skills, abilities and knowledge from the trader.

It is not a mechanical trading strategy with exact rules to follow for which we can compare notes and find the differences. It is subjective and discretionary and each trader applies the method differently based on their own experience, knowledge and skill as a trader.

[CarlosRay]

It’s worked just fine for me, been using it for years.
It’s a simple system that works best on trending pairs. If you are consistently losing using it, it may be that you are trying to force it to work when the market is ranging or trying to scalp with it

[NScrilla]

What SL and TP are you using? Care to show a few pictures and maybe some rational? My attempts have basically been breaking even.

[FMIC]

I don’t use fixed SL/TP - I use the swing points, especially for a trailing S/L, just like it is explained in the 3 ducks eBook.

Sometimes, I may use Chandelier Exits (based on ATR Volatility).

[NScrilla]

The EURUSD falls into the trending category right now right? Have you been selling it? What levels and TP and SL would you use on this pair this week? Would you have sold at the break around 1.5560ish? What would you have done with the reversal that occurred just a few hours after? What about the next move lower the following day?

[FMIC]

No! EUR/USD is currently H4 Down, H1 Down, M5 Up! So it does not meet the criteria for 3 Ducks!

Only when M5 is down again and breaks the swing point will it be trending down and a valid 3 Ducks setup!

EDIT: I would only go short if it drops below the 1.4650 zone (the swing zone and support on all 3 time-frames)!

[NScrilla]

Hmmmm okay. So on this chart at both these levels indicated with the check mark. There is a H4 slope lower. The H1 is sloping lower. the price is below the M5 60 MA.

Are both of these not valid levels to sell? Before that first sell check mark there that was the swing low. The absolute bottom on the current move. The second one was also a move lower but not the absolute low.

You would have taken neither? Why not? If you had, what levels would the SL and TP be at?

You said you would take the bottom arrow there on the break of the swing low, the absolute bottom. Where would the TP and SL be put? You wouldn’t take the first arrow on the break of the swing support at 1.14544ish? Both those trades would also be in line with the price under all three 60 MAs.

Thanks for you input on this. I think next week i am going to fire this system up again and create a thread and document all my trades on it.

[FMIC]

Yes, they were both valid 3 Duck setups for going short.

For the first setup you marked, I went short (sell) @ 1.1560 with the S/L @ 1.1582. From the small S/L, I knew this was going to most probably be a relatively short run which I could monitor, so I did not set up a T/P but was mentally targeting a 3:1 ratio if things went well.

Also, because I believed it would be a short run, I also put up my Chandelier Exit Indicator (Period 60, Ratio 6 ATRs) in case swing points did not form. After a while, I then decided to set the T/P at 1.1500 (psychological level) and enabled an EA to track the order and to close it if it should hit the Chandelier Exit.

I kept monitoring the trade manually every now and then, while setting the S/L to swing points – first @ 1.1550, then later another swing point formed, but since it did not vary much from the previous one, I left the S/L as it was.

After the third swing point, I set the S/L to 1.1523 which got triggered about an hour and a half later.

Gain R:R ratio was (1.1560-1.1523)/(1.1582-1.1560) = 37/22 pips = 1.682

For the second setup, I was away but would have taken it somewhere @ 1.1535 and would have set the S/L @ 1.1565. I would have put up my Chandelier Exit Indicator (Period 60, Ratio 6 ATRs) and set my EA to close the trade for me if it got hit and due to this, I would have not set a T/P. And since I was away, I would not have been present to adjust S/L to swing points, so the trade would have been closed by the Chandelier Exit @ 1.1482 on the next day. It would have been a good trade had I been present.

Gain R:R Ratio = (1.1535-1.1482)/(1.1565-1.1535) = 53/30 pips = 1.767

PS! I almost always monitor trades on the M5 chart, so my Chandelier Exit is on my M5 chart! Also, my S/L is never exactly on the swing point price, but a little bit off considering the spread as well. Please note that the Chandelier Exit Indicator that I use is of my own design using EMA for the ATR and also tracks a trailing stop. However, any standard Chandelier Exit indicator can be used for the purpose.

[FMIC]

How would you have handled those two trades you marked?