If you look at Dennis’s chart you will see they are “MVA”. This is on the FXCM Trading Station and MVA = Simple MA.
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Awesome!!! Thank you guys for your kind response.
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Hello Dennis,
You have said several times that you are suspicious of the JPY when it’s in the #1 or #8 position, because of the erratic way it seems to bounce back and forth between strongest and weakest.
But, aside from the JPY, do you generally trade every #1/#8 pairing indicated by your analysis, even if the percentage range of the pair is within the -2% to +2% band?
I’m thinking specifically of your short GBP/CAD trade, entered on July 24, when the percentage range between GBP and CAD was only -0.66
The range between those 2 currencies did not move outside the -2% to +2% band until August 2.
What was your basis for entering that trade? And, do you ignore the -2% to +2% band?
I am very surprised that no one, to my knowledge, has ever opened a demo account dedicated to following this method - not even the proponent of the idea Denis himself.
And this thread is almost 2.5 years established now, with huge interest from hundreds of people. I mean, how hard could it be in a demo, nothing to lose, trade once per day at the very most, just place a small position only for tracking purposes; the number of pips captured is more important than the actual dollar value after all.
Place the Stop Loss as Denis suggested, 100 pips, a Take Profit of 200 pips, easy enough when using round numbers.
Who’s up for it? Or let’s have another 2.5 years of same old questions, just be sure
Not everyone wants to broadcast their trades in public.
It is worth remembering that this is not intended as a comprehensive trading method - the concept is just to identify which pairs offer the best potential for trading trends. It is then up to the individual trader to then apply their own trading method to the pairs.
Dennis has only just now suggested a basic trading approach that could be used as a starting point by those people who do not have their own ready-made trading models.
I also think this positional trading approach is not suitable for many Newbies who are inexperienced and only have very small account balances. With the new ESMA leverage rules and the inevitable larger stop loss requirement this could place an unsustainable strain on a small balance account.
If this approach is used by more experienced traders with bigger balances and a ready-made trading method then a demo account stage is hardly necessary.
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Glad you have it all figured out:
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Not everyone wants to broadcast their trades in public. = A demo for the purpose of tracking the signals is not broadcast anything other than the entry signal already given
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the concept is just to identify which pairs offer the best potential for trading trends = Exactly, and Denis reports all of those identified as if they are real trades. potential not even considered, go figure
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If this approach is used by more experienced traders with bigger balances and a ready-made trading method then a demo account stage is hardly necessary. = I very much doubt anyone is trading this method live because no one is even interested enough to forward test it using a demo, and certainly not “bigger balance accounts” but I shall await any report of such.
All I am saying is: the method takes a lot of manual input to do the calculations on 7 pairs, on a daily basis, Denis has multiple spreadsheets, as he has shown a few different things he tracks, and yet to place the trades seems beyond the interest and capability of anyone here. I think people read a few posts, ask a few questions, either get blown off or lose a few trades and then lose interest even faster… which is what I am about to do…
So can I safely say, that after 2.5 years, there is no backtesting to report, no forward testing in progress, and no interest of any readers of this thread to do either; great system; make your own conclusions…
You may conclude whatever you like. The point remains that if this approach is not a precise method with defined entry/exit rules or risk/money management parameters then any demo or backward/forward testing results are only meaningful to the trader who is collating it.
If you wish to create a mechanical system based on this SW approach then there would certainly be grounds for creating a trade history.
As far as i have seen here there are routinely lazy or inexperienced people who are just looking for someone to tell them what to enter, when to enter and when to close and just collect the winnings. No own brain cell requirement whatsoever…but that is not what this thread is about either.
But there are many ways one can use this approach. I have been using it to select pairs for my 4H trading for some time now and it has been extremely successful. Others who only trade specific pairs could also use it maybe to identify when those pairs are ranging as well as when they are trending.
If you personally find no value from this particular form of analysis then that is ok. If others do, but don’t make a big noise about it then that is also ok - and even if nobody reads it, uses it or cares a hoot about it and Dennis just goes on posting it then that is also ok 
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My opinion after a couple of weeks I have read and study the system is Thank You Dennis you really opened my eyes. I find this is the only and logical way for trading currencies. It is obviously, natural that one has to trade according to the strength of the currencies, just pay a little attention if you want to, to the most important News that could affect currencies and that’is it. Indicators are a thing of the past for me now and maybe later on even the Moving average. I would appreciate Dennis opinion if He reckon MA are really so important I did read about how to use them and is perfect the way He uses them so I am not arguing about them of course. Thank You again Dennis this is an invaluable gift given can you believe it is free! Well of course if some day You intend to charge a fee just say it and I will send You my e-mail. My suggestion is read all his recommendations and it is enough. Just trade the strongest against he weakest, Number 1 against Number 8 according to his suggestions, simple fast and no headache, need no more
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I have been testing this since the 1st of August so is a bit too early to draw conclusions yet. My percentage values are for the most point identical to Dennis’s apart from the odd ones are out slightly but doesn’t change the outlook too much. I am also using 4hr price while I am not in employment. It seems Cad is maybe going through a bit of a corrective process as I type but am still in on GBP, EUR and NZD, but it will probably look clearer when there is a new #1 and I go from there. I am also comparing it to sentiment and other MA’s and indicators.
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This is a typical trading strategy without a execution plan which make it impossible to check it’s trading robustness and effectiveness and therefore rendering it useless just like most of the trading strategy which is found on the internet
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You seem to be having great difficulty understanding a very simple issue. This is NOT a trading strategy at all. It is a means of selecting which pairs offer the greatest potential for profit when YOU apply YOUR own strategy to these SW pairs.
Having said that Dennis is very happy to offer help and ideas to others on how to work with these pairs.
I suspect, though, that your real purpose here is purely to be disruptive. So if you have nothing more constructive to add then perhaps you will agree to just leave us majority thread-followers to drown in our apparent failures…
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no change in our rank order but top trade GBPCAD* hit another new high in our pips total
I see an explosion of new post, I will read them after dinner and way in if needed,
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Typical newbie… As Manxx said it is a trading strategy and not a system…
I have rode that GBPCAD down for three days straight combining other Currency strength etc to it…
As Posted by Dennis. The CAD/JPY was a strategy pair… Have I been trading it? NO as the CAD/JPY on my calculations gave a no buy signal.
If you look at Dennis ratings in a different way and combine them with other things you will hit mega success.
Best strategy I have ever come across. It’s simple and IT WORKS.
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Hi Clint,
I do not take every trade, my own trading is focused on just a few pairs and GBPCAD is not one of them, but in tracking the performance of the 1/8 pairs these last couple of years, I would have done better just taking my rankings top picks and nothing else. Old habits are hard to break
GBPCAD has been a weird one, as you may remember I noted there was no technical reason other than my SW rankings to go short that pair on July 24th, yet it has been a great trade. The 2% rule has worked well in the past but in this time of low market volatility that may no longer be the case
Going forward I plan to build upon the simple trading system in post #1650, My Strong Weak rankings will give us a rock solid base, with just a few simple rules we should have something really special
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Hi runyt,
Thanks for all the kind words, I had originally posted my SW rankings as part of a trade journal thread, so I never thought of it as something of super value, but if I had it to do over again I should have kept the math around my rankings private. But the cat is out of the bag now so we will keep this in the public domain, but if the Owners of BabyPips wanted to pay me to run a featured thread I would be open to the idea, hint, hint
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See post #1650 were you will find an execution plan. this simple trading strategy would had given you 21 straight wins from December through May
Back when I had my Thread on the FXCM site, I did demo trade my rankings, back then I was tracking 1/8, 1/7, 2/8 and 2/7, lot of work keeping up with it, now I just track everything on Excel and just 1/8. But if Snowman would like to take on the task of the unofficial SW Demo account, I say go for it
Hi MonkeyFX,
Glad to here my SW rankings are bringing you trading success, Keep an eye on the CADJPY it broke its string of three down days and never got lower then -61 pips from its entry point.
I did exactly the same! I had no confirmation on my own (4H) trading method and did not enter this one (but it is still on the radar as a possible - i did take a position in this before it became an SW candidate but i was already out by then).
Even Dennis confirms he does not enter every SW pair, he has his own favourites and decision-making process.
This is a tool for trading, not a full-blown mechanical trading system. Asking for tested proof is like asking for proof that a 50ma “works”…
Hi Dennis, Do you think it would be worthwhile doing another table with the USD as the common denominator just to get some data for the JPY?