I can’t see why Andy would object to you using your initiative & formatting the framework to suit your specific requirements Dave, after all that’s what it’s all about.
It’s not as though you’re pulling the wheels apart & replacing them with totally different cogs. You’re using the generic concept presented here to enhance the specifics of how you view & plan your objectives & time contraints.
It’s testement to the quality & flexibility of the framework that folks can tweak it to sit comfortably alongside their aims & objectives.
Markets change & momentum ebbs & flows. You need an approach & structure that can be adapted to suit that changing environment & this certainly fits the bill.
Good trading to you for the week ahead Duck Hunters.
Ducks Bearish on Usd.Cad
Usd.Cad could be well worth a look over the next few sessions. It is grinding lower and the bears have not been this low since September last year and that’s a good bearish sign. Your 1st Duck favors sell (shorts) on this pair.
If you are like me and prefer to see it rather than reading about it, you can now watch this really quick video (0.55 sec) 3 Ducks | Eur.Usd | Part 2
If you fancy trading with the wind at your back and having a dabble with your Ducks over the next 48-72 hours, 3 trendy pairs worth watching are;
[B]1.[/B] Eur.Usd
[B]2.[/B] Gbp.Usd
[B]3.[/B] Usd.Chf
[B]Beating the US Dollar[/B]
The US Dollar has been getting a good old beating over the last few weeks and your Ducks favor longs on the Eur.Usd (selling the USD) longs on Gbp.Usd (selling the USD) and shorts on the Usd.Chf (selling the USD).
I hope you can make a few quid - even a few Demo Dollars by putting the odds in your favour and trading in the direction of these trends with the help of your 3 ducks.
[B]Andy
Captain Currency[/B]
These are not trade recommendations. The 3 Ducks Trading System is best used as a set of guidelines with discretion in addition with your own market analysis and trading ideas. I do not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Yes, that FOMC statement yesterday was something else, wasn’t it? It was like someone shoved three jet engines up the ducks’ backsides and switched on full thrust.
Unless you’re prepared to invest quite a bit more time, effort & discipline into establishing some kind of trading approach that suits your particular preference or style, then your comments probably suggest it won’t work for you.
This isn’t a system as such, but more of a framework or structure from which to attack the market.
There will always be an element of discretion regards the individuals entry, bet management & trade duration, which will be directly influenced by their risk attitude, therefore everyone’s results will vary to a large degree following this type of approach.
Hi all, i have been trying 3 ducks for a couple of months. have set both sl/tp at 20 pips for eurusd and 25pips for gpbusd but so far my equity curve is flat. just wondering if anyone can point me in the right direction. I have tried setting stop to breakeven once position moves in my favour but that is not much help. any tips on money management? you do not need to reveal your settings. just some hints to get me in the right direction is appreciated.
I haven’t found any secret formulas but I’ll try to offer some tips based on my experience with the ducks. I’d suggest you attempt to get involved with trades where the risk reward ratio is at least 1:2, and 1:3 is better. It can be difficult booking long-term consistent profits when you’re going with just a 1:1 risk to reward, it can be done but it’s not easy.
Usually I’ll place my profit targets based on the average true range, aka the ATR and or support and resistance levels. I track the daily high to low or ATR of the pairs I trade and will try to set my profit target at 70% to 100% of that range.
For example, let’s say EUR/USD has been putting in an ATR of 90 pips per day. If the 3-ducks are lining up, it’s early in the london session and so far the daily hi to lo is 35-40 pips then a 20-50 pip profit might makes sense.
But if later in the day and the hi to lo price has already traveled 70 pips maybe I would have second thoughts about the trade. I don’t like risking a 15-20 stop hoping to gain 15-25 pips.
Unfortunately the ATR’s have been a bit low lately, things were easier when EUR/USD was running up & down 150-170 pips a day, oh well.
You also should be aware of major and minor support and resistance levels that could cause your trade to stall and reverse. Again let’s say the market is in a strong up trend and you see a perfect 3-ducks set-up. Take a look at the surrounding resistance levels. If the market made a nice pull back and there’s no major resistance for 60-80 pips, then set your target accordingly.
But if there’s major resistance 20-25 pips away, maybe set 2 or 3 orders, one taking profit quickly at 20-25 pips and moving the 2-3 orders to break even ASAP and let them run with the hope that it’s a BIG break out.
One of the characteristics of a strong trending market is breaking support and resistance levels, so keep an eye on those major levels. Sometime the price will stall be rejected and reverse. Other times the price will break through those major S/L levels and you’ll see a 50 or 100+ pip move.
So I guess there aren’t any “hard magic 3-ducks rules” for the best profit target, perhaps it’s more an art than science. IMO the more screen time you can put in the more you’ll understand how the ducks behave, the price moves/acts and the multiple personalities of the market.
HiHi D-pip, really appreciate your insight in this…risk reward ratio is at least 1:2 sounds gd…i will try this…just worried that the win loss ratio will suffer but that is to be expected.
[B]News Duck Hunters should watch out for this week[/B]
[U]Rate statements[/U] out on Thursday for the Euro and GBP and
[U]Non-Farm Payrolls[/U] (NFP) this Friday.
[B]3 Ducks e-Book[/B]
If you are a newbie to this thread and would like your free copy of The 3 Ducks Trading System e-Book (pdf) pop over to The Captain Currency blog.
If they do & they stick rigidly to that option they would not only be disadvantaging themselves, but also missing the whole point of the intended objective of this method.
Although it has a very simple set of guidelines to assist in gauging higher probability opportunities, he also clearly advises people to remain flexible & reactive to the changing volatility & momentum behaviour of the price action.
Sometimes it will be fine to adopt that entry option. Other times it might be more prudent to enter on the break of the last high or low on the 5 minute chart. Occasionally you might want to enter on a (5 min) pullback to gain a little more leverage. As with the entry, your stop losses are also going to require a little flexibility which will be dictated again by the volatility & strength of the current price action.
The basic set up is very clear & unambiguous, but Andy does constantly encourage & advise each participant to make the structure their own & tweak the entry, risk & trade management/duration to suit their individual style & to get in step with the current market pulse.
This is very much a discretionary approach driven by a mechanical set of rules.
It’s mentioned in the 3rd paragraph.
If you’re entering via a flexible technical trigger such as a breakout through a recent high or low, or a pullback, or a higher low/lower high etc then your stop loss will be configured based on your view of the nearby technical swing area’s on the 5m chart, or maybe the 60m chart, depending on your trade objectives.
Like the previous poster say’s, to all intents & purposes this is a discretionary approach & your stop is going to be governed & influenced by your risk tolerance & trade objectives which will be driven by the current pulse of the market.
Each potential trade entry will be approached slightly differently based around those criteria. They’re not going be the same every day or week.
yes thats what i mentioned earlier when i asked if anyone uses the last swing low as the SL? (or swing high if selling)
im asking because when robopip backtested this system he used a fixed SL of 30 and TP of 30.
He did not have good results
Which only serves to highlight the idiocy of attempting to bolt on inflexible fixed stop & profit restrictions to an approach that requires the trader to adapt the parameters to suit the conditions.
Like trying to shove a square peg into a round hole.
