FREE FOREX STRATEGIES
Forex brokers comparison

Developing a System #6 (Dachel's Happy Wednesday)

Submitted by Dachel Miqueli
------------------------------------------

Hi everyone!!

I was researching developing this new system which is very interesting and effective. I don't wanna talk too much about it, im just going to show you and then let me know what you think ok??

I called Dachel's Happy Wednesday.

Well.....Here's the deal.

1. Open the 60 min chart GBP/USD

2. Find the first candle of the Wednesday which is 00:00 EST
3. Find the first candle of the Thursday which is 00:00 EST
4. Find the High and Low
5. If the price touch the high is a buy and if touch the low is a sell (no offsets)
6. Stop 50
7. Limit 100

See?? Was easy right?

I tried different combination but this one is the most stable. I will post the results later and some screen shots.
What I can tell you by now is that this system have a winning 50% ratio since 2007 to date. Consider that you have one trade at the week and you still end with more than 1000 pips a year. This system can be better if you help, I've only test it with GBP/USD but I guess It will bring better results with EUR/JPY and GBP/JPY. It only need adjustment in the TP and SP for those pairs due to their volatility.

Well this is my latest work.
REMEMBER: HELP WANTED

Here are the results for 2007 and 2008 so far.

2007
Jan +200
Feb +100
Mar -50
Apr +250
May +50
Jun +170 (I had to close the trade manually at the next Wednesday)
Jul -50
Aug +200
Sep +100
Oct +50
Nov -50
Dic 0
TOTAL: +970 PIPS

2008
Jan +50
Feb +150
Mar +100
Apr +200
May -50
Jun +100
Jul +50
Aug +100
TOTAL: +700 PIPS

As you can see is not enough for someone who is looking a system that profit thousands of pips every month but it work nicely in the long term and if you now how to manage your money you will have profit from it. The best thing is that only 1 trade is required for week so you have enough time for yourself.

Now Some statistics

Max consecutive losses: 4 (happened once in 2007 and in 2008)
Avg consecutive losses:2
Max consecutive wins: 4
aveg consecutive wins: 2
Winning ratio is around 50%

And here are some pics about the graph

View larger image

View larger image

HELP TO IMPROVE IT IS WELCOME

Dachel Miqueli
dachelm@yahoo.es



http://forex-strategies-revealed.com/


I have a question: why do we trade only on Wednesday? Is it because the trend is more likely to establish by Wednesday so we have more chance of success? Also, did you use this system on a live account or only in DEMO?

Thanks

I'm using this account on Demo because I developed two weeks ago and I was back testing since then with a lot of combination like changing the SL=100 and TP=50 which gave me a lot of winning trades. To be more precise I had 40 winning trades and 11 losses in 2007, that will be like 900 pips but I didn't felt comfortable with the risk/reward ratio. Also in 2008 I have so far 29 winning trades and 8 losses. In the end the winning ratio is 60.7% but again the risk reward ratio is not too good. I even had 14 consecutive winning.

I tried with a trailing stop of 50 and had similar results but its very unstable.

And the fundamental behind this system is because the trend is more likely to establish by Wednesday.

This is with no doubt a Breakout system most of them are based in the same philosophy I used here.

Good luck to every one and REMEMBER that I haven't tried with any other pair. So if somebody wanna help to improve this system now you know what to do.

Dachel Miqueli
dachelm@yahoo.es

What happens if we are in a trade, for example based on your Wednesday setup - we enter Thursday, we are up 35 pips by Friday and then Markets close. Do we stay in a trade over the weekend or not? The same if we are in a losing trade but not enought to hit our Stop-loss (for example 30 pips). Do we stay over the weekend or not?

Well in that case is recommended to close the trade by Friday, is because the trend established was not strong enough to get to any of our orders. I calculate this system from wednesday to wednesday without closing the trades in fridays. If you wanna check it out please let me know the results ok??

Thanks and I hope this answer you question.
Dachel

where is the high and low from??

is it of wednesday (between the two first candle)?

or

only of the two first candle??

Look for the High and Low contained in the whole wednesday. remeber.....1 hour chart

As I know, usually in GBP/JPY every Big Player taking Interest at "Wednesday" because that day the Interest has give by broker is very big enough to cover weekend interest.

So in GBP/USD will be affect to because the "Synthetic" Trade from the GBP/JPY, but in this system we take this day because Wednesday is very2 Important day for GBP pairs.

This is my guess why this system taking all the setup of those day.

I thing this system is good, but for reduce the Loss i thing must be use some other filter such MACD (Usually Dr. Zain Agha used it) or somekind else.

Kind Regards;

Manus168

Can you help us by giving some a screenshoot please ? Thanks

Regards;

Manus168

Top Rated Free Forex Indicator...