yes, i use fixed stop loss check post#1 for stop loss of each pairs, the way i trade with this system is both using fixed stop loss (for newbie) and trailing stop ( for experienced ones) this is what i do , since the inside bar wont appear so often for each pair, when the opportunity comes i put 2 pending orders following the direction of sma21, one order with fixed SL and TP when the first order hit the take profit, i move the SL to BE for my second order and then follow the trend and take as much as pips as posible,… but this is not advisable for newbie this is only good for experience ones… im just only sharing my trading strategy here ok!! do your own personal money management according to your account… if you are newbie stick to the system post in page 1… CHEERS MORE PIPS TO YOU GUYS!
hey steo, great your following the system, about your question i only consider inside bar if the bar is actually inside of previous bar ! thats it , if the bar is higher than previous bar even 1 point i dont consider that as inside bar, anyway i been using this system for nearly 4 years now, just decided to share with you guys hoping someday someone gonna give a share of his profit lol!!! anyway enjoy the system Cheers!!
Hey Toby123,
thank you very much for an interesting system! Question, do you think this system can work on a lower TF like say 4hr? and if so, what would be your recommendation on the SL and TP (4hr TF) on the various pairs on your initial post?
Thanks
Michos
i really dont know to be honest, for me its more risk using small timeframe, hope that help.
Hi toby,
Thanks for sharing this great system. Few questions if you answer please:
a) What time your daily candle closes?
b) What time you think is best to use for daily candle close, GMT or EST?
c) Why use SMA and not EMA?
d) When you back tested or forward tested, how many pips avg you can get each month?
Regards,
Hi Michos,
You asked toby but I will try to answer and hope toby dont mind. I use similar system on 4H. Only on AusUsd because I only back tested on this pair and results were very good. I did back testing of 3 years and avg 250 pips each month. Please do not start using on 4h unless you back test and demo first. Also I move SL to BE as soon trade goes 30 pips in profit. So many BE evens and only few winners. I use EMA 21 to see the trend.
Hope it helps.
Cheers,
wow,
i am going to backtest on the EUR/USD! can you give an indication of SL and TP(also the risk/reward ratio, i intend to use 1:3) you are using?
a) What time your daily candle closes? 00:00 gmt
b) What time you think is best to use for daily candle close, GMT or EST? they all they same as long as inside bar
c) Why use SMA and not EMA? sma is the one already tested by me
d) When you back tested or forward tested, how many pips avg you can get each month? my average pips is a lot different compare to those who use this system reason behind that is i do actually enter two pending orders, one order with fixed SL and TP, the other one is no TP, once the first order hit the profit i move the SL of the second order to BE and from there i’ve always keep trying to get more pips following the trend
check it yourself use all the pairs given and follow the rules, maybe you can start around jan 2011 until today… and report your findings here for everyone to see the power of this system… really appreciate if you can do that!!
Regards,[/QUOTE]
Hi! I have a question.
How much decimal cases (dont know if thats how its called sorry english is not my main language) do you trade on? For example the broker that im demo uses 5 decimal ex: 1.41234 i know most brookers have 4 decimal quotes. Im only asking this because of the tp and sl.
i use 5 decimal broker.
HiToby
Thanks for sharing. So if the prices are equal you don’t enter right? Wow 4 years tested all on live?
Anyway the system wins in long run bcos of the 1:2 risk reward ratio.
Hi toby. Thank you kindly for answering my question before. I am still learning on this system. Only I’m finding it a little difficult on timezones because I’m in Australia. So I’m trying to see when you post your recommended trades and then figure out which candles you are talking about (since I’ll probably see it many hours after you post), and being in I’m 14 hours ahead of my broker on mt4 (mind blowing huh).
Anyway now for my new question: what exactly are you calling “the bar”. Do you consider the tail or the wick of the entire candle as the “the bar”. Or do you only mean the main body…ie the open and the close of one bar must be inside the open and the close of the previous bar.
Also with I’ve just read, you trade with a 5 decimal broker, when commonly it’s 4. So when u say TP at 100 pips, your not counting the 5 decimal as a pip are you!? The 5th decimal is a fraction of a pip right?
Sorry for the simplistic questions. I think we’ll get there though, thanks.
if the price is equal you dont put pending order, 4 years all on live still giving me pips whop whop… thanks for this system, you nailed it my friend because of risk reward you still gonna be in green zone, you actually only need 33% win to be BE more than that you know the answer… lol
wand, you can contact you broker ask them what time the close of daily bar, the tail or the wick is part of the entire bar, to make it easier for you use the bar chart instead of candle chart, and for your last question if your using 5 decimal broker when your setting up pending order those 100 points or pips is = 1000 remove 0 if your using 4 digit broker.
Hi toby, what you think about put a pending order in the oposite direction also ?
Sometimes I see that the sma change before fill our pending orders… so. Would you put a pending order in the previous lower bar position ?
I tryed it and earned a few pips at GBP/JPY these days. And sma is turning down.
Best regards
i dont trade against trend … cheers!
inside bar for today!!!
[B]usdchf (sellstop)
gbpusd (buystop)[/B]
so far heres all the pending orders:
gbpjpy (buystop)
usdcad (sellstop)
audusd (buystop)
[
update about our usdcad trade on the 24th still +48 pips!! (yawn… still waiting for result… patience…)
same here…cheers…
Am I correct in saying the GBPUSD trade is on?
I’m in that (demo account).
Problem was I was late to the trade because it looks like it pretty much went higher fairly soon after the inside candle finished…
Do you have a strategy for this instance toby? Unless your checking and ready to place the trade at exactly when the inside bar closes, ready for the next, there’s a chance the next bar will keep going higher or lower…into where you would have wanted to enter. Ok maybe its only by a few pips, but rules are rules and it could still open into your trade that you havent yet set. Also for me, out of practicality I may not be able to check until maybe 2-4 hours after the new candle opens (time restraints…at work…)…so i’d imagine this could be happening fairly often. Any thoughts on this?
Another thing, since i’ve opened a few dmo accounts, and each broker uses their own timezone for trading it can get a little confusing as to which candles to be looking. Generally I’ve been trying to bring everything back into the EST timezone (say new york). But where the confusion comes in is that on one brokers system the bar looked wider (taller) because it was behind the other broker by say 5 hours in timezone and was therefore still recording a rising price on the GBPUSD bar, where as the other broker being ahead on time had already closed that last bar and was recording this higher price movement in the new bar. is what I’m saying making sense?fortable with? and what is your strategy here? do you stick to a broker with a set timezone your comfortable with like EST? This strategy seems it can be quite sensitive to what timezone the bar chart is moving in, because it may well govern if an inside bar is established or not…make sense??
(sorry for long post, following as always).
yep trading is on for gbpusd at the moment 20+pips, my usdcad is 70+ pips now
aususd and usdcad nearly hit my pending order!!! more pips to us all this week hopefully,
wan, my strategy is simple 1hr before the close of the bar, im starting to check and look for inside bar to all the recomended pairs and because my broker is using gmt time, (asian session which is very quiet) not much happening in the market, so i can guarantee my self what will be the price input of my pending order. my suggestion is to concentrate only in one broker that suit your time. normally or most broker they close the daily bar @ 00:00 brker time (check the market watch time).
while im writing this, aususd and another usdcad are already in aswell