The (self indulgent, heh) Travis Nine is a discretionary trading system that I am trying out with my demo account. Here is how it works. At a predetermined time during the day I will enter a position with all nine pairs that I trade. I will enter in the direction of the trend and hope that the trend continues for just a couple of hours. At the end of a couple of hours I will exit all positions that have not hit my TP or SL.
During preliminary testing this has been highly effective and is meriting more experimentation.
1 � EUR/GBP
2 � EUR/JPY
3 � GBP/USD
4 � USD/CHF
5 � EUR/USD
6 � USD/JPY
7 � GBP/JPY
8 � USD/CAD
9 � AUD/USD
Here is how I enter a set of trades: between 9-11 AM Eastern time I look at the H1 charts for all of the pairs. If the trend is clear I take a position in the direction of the trend. If the trend is not clear, I will zoom out a bit to see what the H1 looks like over a longer time period. If it is ranging then I take a position that agrees with the range, selling if it is at the top of the range, or buying if it at the bottom of the range. If I can not make up my mind and am severely conflicted in deciding which direction to enter on a pair, I will just leave it out for that round.
Money management (for each pair):
Take Profit � 3% of entire account
Stop Loss � 1.5% of entire account
Leverage � I am using 50:1
Position Size � I am trading with 11% of my account with each pair
Why could this possibly work? Because following the trend works more often than it does not. Yes, on each set of trades there are pairs that whipsaw, reverse and go against you to stop you out. But the point is that the winners will be bigger and more frequent than the losers. Spreading the risk over nine different pairs increases the chance of your success. This is an extremely risky strategy and you could lose 13.5% of your equity if all the trades go against you, but then again you could gain 27% if all the trades go in your direction. Of course, you can adjust your money management according to how risk averse/tolerant you are. Personally I would be happy if this could produce an average of 2% each day I trade it. However, thus far the numbers have been much higher.
What I expect to change over time:
- The pairs � If I find that a pair does not trend well enough to accurately follow, I will drop it and possibly replace it with another one that does.
- The time I look to enter trades � I plan on finding another time frame in addition to the morning to enter a set of trades, possibly early afternoon EST.
- Virtually anything else � If something needs to be refined I will change it let you know how it affects the system.
In the coming weeks I will post results and possibly some screenshots with examples of how I determine a trend in a pair.
Thanks for reading and feel free to post questions or comments.