The 3 Duck's Trading System

[Captain_Currency]

What pair captain?

Hello Tony,

It was Eur/Usd, sorry for not putting that in my previuos post.

Kind Regards,

Captain Currency.

[tonymand]

Thanks, appreciate that so I can follow along on my charts

[tonymand]

Hello Traders,

Nice trade on The 3 Duck’s Trading System today. A good place to buy was on the small pullback after it broke the high, stop-loss at the last low and the target at the highs. Straight forward enough!

Kind Regards,

Yes this was nice Captain. I spent some time looking at charts for this set up over the weekend. As you have said it is simple and neat, thanks. Just for clarification is this a strong set up because the 1H has just crossed up so we are taking the first 5 min trend at that point and is this something you generally look for or if the 4H and 1H stay up would you repeatedly enter on 5 min ma crosses and new highs

[Captain_Currency]

Yes this was nice Captain. I spent some time looking at charts for this set up over the weekend. As you have said it is simple and neat, thanks. Just for clarification is this a strong set up because the 1H has just crossed up so we are taking the first 5 min trend at that point and is this something you generally look for or if the 4H and 1H stay up would you repeatedly enter on 5 min ma crosses and new highs

Hello Tony,

Yes well spotted, prices have been “hugging” the 1hr sma over the last few hours but with prices above the 4hr sma and prices just above the 1hr sma and with prices crossing the 5min sma and breaking the highs - I would have no problem pulling the trigger at that point. Would I repeately enter when the 5min keeps breaking above highs? Depends whats going on around me, news, sentiment, time etc.

Hope that helps,

Captain Currency.

[droesparky]

Hey CC nice system with very simple and straightforward logic. I think even I can follow it.

here is a MA indicator that everyone can use to put the 1hr and 4hr 50ema on the 5 min chart. Just change the time period setting in the indicator.

blessings to all

1HR 50EMA.zip (1.46 KB)

[Captain_Currency]

Hey CC nice system with very simple and straightforward logic. I think even I can follow it.

here is a MA indicator that everyone can use to put the 1hr and 4hr 50ema on the 5 min chart. Just change the time period setting in the indicator.

blessings to all

Hello Droesparky,

Thanks for that! I still like to look at the 3 timeframes - thats just me.

Kind Regards,

Captain Currency.

[Tess]

Just for clarification is this a strong set up because the 1H has just crossed?

So, we are taking the first 5 min trend at that point.

And if the 4H and 1H stay up would you enter on 5 min ma crosses/new highs?

Tony, I hope you don�t mind, but I�ve bulleted your questions to CC to add emphasis to their relevance.

Forget about the 60sma for a minute & look again at what you inferred in your comments? What essentially were you asking confirmation of?!

I�m sure you (& other like minded observers) are more than well aware of the powerful message behind the 60sma technique. The Captain has certainly made reference to it in a couple of his posts.

For those who still don�t quite [I]�get it� :[/I]

You�re attempting to trigger entries in line with any obvious directional flows, being orchestrated via the 4&1 hour timeframes. The template timeframe in this instance, being the 5min (for ease of use).

If the 60sma was invisible from the charts, you�d essentially be looking for higher high/higher low steps in an uptrend�…lower high/lower low steps in a downtrend. If you�re a �trend trader� then you�d maybe require to witness at least 2/3 of these occurances to tempt your taste buds?

Of course, your criteria might differ slightly from the entry/exit levels displayed by the 60sma, but the generics are exactly the same.

The inclusion of the 60sma is merely a comfort blanket to this process…a guide if you like.

If you scroll back over your charts & observe your (intended) entry, partial profit booking & exit points, up & down the price chart, you�ll notice that these pit stops generally fall into line with natural price reversal or pullback tendancies on those higher timeframe chart references.

As with any type of (potential) trend entry, we have absolutely no idea as to how the trade will develop, if at all.

The only definite event we�re certain of, is our risk portion of the trade (our stop-loss level & position size ratio�s). The rest is down to experience/familiarity with our instrument(s) & the skills we possess regarding trade management.

Nevertheless, this strategy is a very cool addition to the Forum & highlights the important concept of [B]�keeping things simple & uncluttered�[/B] both in technical observation & trade implementation.

[ChowClown]

Great post, Tess. Thanks

[Mr_Average]

Hi Tess,

Great insight, as always. I was watching that move unfold myself and spotted the same opportunity, albeit with slightly different reasoning. However, (and forgive me if this is a naive newbie question) but wasn’t that move started by an news announcment (GBP Nat House Prices)? Or have I got that wrong?

I’ve been trying to stay out of the way in the run up to an announcment, for fear of slippage, etc. Or would you say, if a technical set up occurs in conjunction with an announcment, it’s worth taking a punt? Please correct me if I’m wrong - like I say, I’m a newbie.

[Captain_Currency]

An early quick fire entry into Cable’s short term flows for the snipers amongst you just now?

Price teasing the prior high on the 5min, pulled back slightly to kiss the 60ma, before nudging thru this minor s&r line @ 2.0180.

This chart includes the ma’s from the 4&1 hr frames for visual ease.

Wouldn’t have been to everyone’s taste I’m sure, and probably only for the very sharp operators, but a bone fide entry nonetheless.

ps: Congrats on your blog inclusion at Reuters CC

Hello Tess and Mr. Average,

Nice trade Tess! glad to see the ducks helped you
Mr Average asked “if it was worth a punt” just after the news came out? My answer would be YES, because Im still following the guide of having all 3 ducks lined up in the same direction. But as Tess correctly pointed out, it may not have been everybodies cup of tea! But I admire you courage TESS!

Kind Regards,

Captain Currency.

[Mr_Average]

Thanks Captain and Tess. Think I’ll continue to err on the side of caution until I’m a bit more sure of myself.

[Captain_Currency]

Good morning Cap’t

The zone is/was one we’re [I]“interested in” [/I]anyway, so it was certainly on the radar. It was actually my brother who hit that one, but once again made me smile that it married your criteria more or less exactly.

I’ve got your guides configured on my 5min frame, more for curiosity than anything to be honest, but it’s not really surprising to witness that a good few of our short play/intraday trigger trades also kiss the zones which your 60sma line signals also.

Price action is price action - the additional price aids, if they’re plotted sensibly, will quite often confirm entries/exits etc.

If they add a workable feature to someone’s overall trade planning, then brilliant I say.

In this game, you can’t have enough help

Top of the morning to you Tess,

Yes your observations are correct! As I’ve said a million times, I use this sustem as a GUIDE in addition to my own market knowledge. What I have also noticed over the years following this system is you get a better “feel” for price, be that if they are moving well in one direction or even choppy!
This guide helps me stay with the market.

Kind Regards,

Captain Currency.

[trader1234]

probably one of the best & simple tips to help stay with the market that i’ve read in awhile… thanks Captain.

[Captain_Currency]

probably one of the best & simple tips to help stay with the market that i’ve read in awhile… thanks Captain.

Hello Trader1234,

Your very welcome!

Kind regards,

Captain Currency.

[Captain_Currency]

Hello Traders,

Did you see the Ducks on REUTERS website yesterday?:eek:

Kind Regards,

Captain Currency.

[Mr_Average]

I sure hope one or two of you availed youself of that groovy little activity back there at the 2.0200 earlier?

Not only did the 15m frame tip the nod, but the hourly bar was also closing well up it’s pole, helping to confirm the validity of this higher low step support!

See how strong the Bulls are now as we lead into the final trading session(s) of the quarter!

Chocs away?..

I did! For once, I called it right and I’m still in with a quarter at 2.0284. I actually deviated a bit from my strategy on entry, which I know i shouldn’t, but the evidence of a long move seemed to be mounting (support at 00 level, a touch and reversal on the 1 hour 60 sma just below that) and, well, I dived in a little earlier than I would ordinarily. Once the move was confirmed I stuck to my plan though, and I intend to ride the remaining quarter for all it’s worth.

Thanks to everyone participating in this thread. It’s been a great help this week.

[Captain_Currency]

Hello Traders,

WOW Tess & Mr Average you have been busy this am, Good trading WELL DONE!

I personally took the Ducks signal earlier this am on Gbp/Usd, I bought at 2.0235 when prices crossed the last high and the sma on the 5 min chart - All 3 Ducks Lined UP! my stop-loss was placed 30 pips away from the entry, it would have been too expensive to place the stop-loss under the last low (about 40 pips):rolleyes: so I used a fixed stop-loss instead. I took profit just before the past daily high. A 30 risk for a 60 pip reward and a fairly painless trade, a great way to spend your Friday morning!

Have a great weekend guys,

Captain Currency.

[pkffw]

Hi Captain,

Interesting system you have here. I like the simplicity.

I was just wondering one thing. Do you need to get in as soon as the ducks line up with a close above/below the 60sma on the 5 min chart?

I ask because many times I get home from work(in Australia so trade the london open in the evening my time), turn on the computer and find that all the ducks line up but it’s many bars after they first lined up. Sometimes I can see that a big move has already been made, other times not. Just wondering if I should by pass the set up if it is some time after initial “lining up of the ducks” so to speak?

Cheers,
PKFFW

[Captain_Currency]

Hi Captain,

Interesting system you have here. I like the simplicity.

I was just wondering one thing. Do you need to get in as soon as the ducks line up with a close above/below the 60sma on the 5 min chart?

I ask because many times I get home from work(in Australia so trade the london open in the evening my time), turn on the computer and find that all the ducks line up but it’s many bars after they first lined up. Sometimes I can see that a big move has already been made, other times not. Just wondering if I should by pass the set up if it is some time after initial “lining up of the ducks” so to speak?

Cheers,
PKFFW

Hello PKFFW,

Me personally I like to trade the “first” part of the move but thats not to say you could’nt buy a pullback somewhere along the way. The only issue I would have & as you pointed out yourself - Will the move continue?
This is where your own market knowledge and the 3 Ducks system help each other out. Is there a correct answer to your question? no!
The best thing you can do is have a house swap with me, I will go and live in your house in sunny Australia and you live in my house in wet and cold Ireland. That way the timezone will allow you to be in front of your pc when the action is happening! What do you think, deal or no deal?

Kind Regards,

Captain Currency.

[pkffw]

Hello PKFFW,

Me personally I like to trade the “first” part of the move but thats not to say you could’nt buy a pullback somewhere along the way. The only issue I would have & as you pointed out yourself - Will the move continue?
This is where your own market knowledge and the 3 Ducks system help each other out. Is there a correct answer to your question? no!
The best thing you can do is have a house swap with me, I will go and live in your house in sunny Australia and you live in my house in wet and cold Ireland. That way the timezone will allow you to be in front of your pc when the action is happening! What do you think, deal or no deal?

Kind Regards,

Captain Currency.

Ireland…hhhmmmm…terrific place to visit. Reminds me of my swimming pool though…nice to play in but wouldn’t want to actually live in it though!

Yeah I figured it would be best to get in on the move at the start. I actually watched that GU move unfold. Came in just after that retrace when it was taking off. Very annoying to miss it. Still at the stage where I have to go to work to earn a living though and sometimes I just can’t help getting home a tad late!

Cheers,
PKFFW