Greg, Will that mean with half the stop loss as well? or same stop loss thus making it 1:1 risk/reward? Just wondering. And lets us know how it goes once you get a bit into it.
Hi, I use DailyFX to view the charts and trade off capital spreads. I change the time zone to gmt on my dailyfx charts and then manually input the trade into capital spreads is this the best way to do it? Dailyfx shows the daily bar closing at 22:00 gmt?
From what I have found and note I am talking personal experience is gft have the best charts in there dealbook. I spreadbet with etxcapital and have a demo account with gft to use there charts. Soon I will try and open an account with gft. ETX capital has good charts too but just prefer gft’s after reading somewhere on babypips how good there charts/tools are. I assume everyone on here uses there broker’s charting tools to trade and not Daily fx as there may be very slight differences between them and also it is easier to add the spread on as per tony’s rules. Somewhere in the thread its also mentioned not to worry when your daily candle closes just to use the high/low of that candle and work from there.
With the same stop loss so that you have 1:1. I have used this strategy before with success. I don’t find the trailing stops give the same consistent output. Another strategy I have use used with the daily bars is one target and stop as set up by Toby123 and another with a move to break even and then a manuall follow based on ATR. Sometimes you get a nice long runner with this trade management.
need help here with regards to money management. do we just pick one of the best signals or put PO with all/most of the signals (IB)? if pick the best then how we know which of the inside bars is the best?
Trade as many as your comfortable with, you wont get too many trades with this system anyway. I think Toby back tested one pair and got 13 trades in a year. I trade this as well as FMM’s signals in another thread, which are tutorial like and are helping me learn a lot. As for money management I stick to the 2% rule. ie. set the lot size such that if its hits your sl you loose 2% of your trading capital and in this system hits your TP you gain 4%. You may risk more or less depending on how confident you get/are but I would think 5% would be the max for any system even if your a complete pro.
The best IB’s might be the ones where the sma is steepest but really theres no guarentees so the best are the ones that hit TP and you can never tell. So Logic will say if you dont want to trade every IB then choose the number of pairs your comfortable trading and trade all the IB’s that occur for that pair/s over time and you will be up.
Don’t mean to sound like an expert either so please correct me anyone if I am wrong.
Thanks for the system Toby it is working well for me and look forward to the new one.:35:
checked again was 20 trades 13wins 7 losses up 950pips cable.
Toby have you written an EA for this?? If not to you mind if I try? If you have any chance you can back test a few other pairs for comparison.
Thanks
Just wondering has anyone thoroughly backtested this? I’m using a slightly different system with a 21 EMA and a 1:2 ratio but if you backtest the EURUSD for 2001/2002 then trading against the trend would yield a nice result. If you traded with the trend, you would’ve been burnt.
With a 1:2 ratio, traded with the trend would’ve provided a win% of 0.32. Trading against the trend would give a win% of 0.48.
I’m backtesting the entire decade. Will provide more details once I’m finished.
Tobby,
Love the system, and the whole concept of a trading system that is not laor intense. The very favorable risk/reward with that high of a win % is spectacular if it continues for the long run. How long has the system produced these type of numbers?
Also, I want to use the system, but I am not sure what the follwing rule means:
• Do not remove trade until either the [U][/U][B]entry is triggered [/B]or the 21 SMA changes to a down direction
Does “entry is triggered” mean we remove the trade, despite it not hitting the sl or tp, if a new inside bar shows up on the daily chart? If not, can you give a little more explanation? Thanks in advance.
bisognor
As I’ve been doing my backtesting I realised that the scale you use when viewing your charts will heavily influence the “slope” of your moving average.
Here’s an example:
In the first image the slope looks quite flat and ordinary.
However, if you increase the scale of the chart, the slope now increases and no longer looks so flat.
Visually using the slope of the moving average can be problematic. Something to think about.
tks cheggs. sounds good!
What I assume Toby means by this is when the order is filled i.e price reaches the level you specified as the entry, you should [B]not[/B] have another order open on the pair.
Also, question for you Toby:
If an IB forms on a friday, do you still place the orders and risk there being a gap in price on sunday’s open?
yep as long as you follow the direction of the trend (sma21) cheers!
if the entry is triggered we do not remove or close the order, as long as we follow sma21, either we win or lose and when another inside bar form ,you can enter another trade if the direction of sma still strong, but remember your money management, i suggest if you not experience enough in trading just stick to one order per pair! cheers!
Tobby,
So just to make sure I undersatand…
your rule from post 1 is listed as:
• Do not remove trade until either the [U][/U][B]entry is triggered [/B]or the 21 SMA changes to a down direction
But, what you meant was don’t remove the trade until the sl/tp is hit, or the sma 21 changes?
Also, someone above has pitcures where the same sma21 looks like a trend in one picture, but flat in the other, do you have any advise on that issue above?
bisognor
Toby, are you still long on the aud/usd?
it means do not remove the pending order, for example you put buystop (sma21 trending up) and then after 24 hours or so the trend changes (sma 21 trending down) but your buystop (pending order) isn’t hit, then cancel your pending order and wait for another inside bar, put pending order according to the direction of the trend, im not sure maybe using zoom in and out, to make sure and see the angle of the trend make sure to zoom out to see the the bigger picture.