Developing a System #3 (Dachel's trading system)
Submitted by Edward Revy on June 25, 2008 - 04:21.
Hello, My name is Dachel and I developed a system this week which looks very nice. Maybe we can improve it a little bit more coz im still on backtesting and is not yet the final system.
Anyway..........here it is.
I used (IBFX) to perform the back test.
Here's the deal.
1. Open the 4 hour chart
2. Take the Hi and Lo of the second candle of the day (GMT)
3. Place an Buy order 10 pips above the Hi and 10 pips below the Lo
(you can use the Eagle Breakout Indicator for easy visualization)
4. When the price hit an order cancel the other.
5. You should place your SL at the other side of the channel.
(don't enter the trade if the channel is more than 200 pips)
6. You should place the TP at the size of the channel.
7. Close the trade at the end of the week if given the case.
8. If your trade is still on by the next breakout stay in until you lose or win.
This baby gave me in my manual backtest in 2007 around 4658 pips. This system can be improved if someone want to try a different strategy or maybe a Breakeven or SL. Anyway I guess is a very profitable system. Try it on a demo or backtest to check by your self. Any suggestion is welcome as well as for backtest for other currencies and other years.
Well I guess that's all for now, I leave you my monthly results.
TOTAL: 4658 Pips