Developing a system #7 (Simple trading any time)
Submitted by User on November 3, 2008 - 16:32.
Submitted by trader.
I have been trading a fairly simple strategy which is the result of my frustration with indicators, progressive systems and marginally profitable ideas that turn negative due to dealer spreads.
My general "dilemma" in forex is that most strategies work well in either trending or ranging markets but not the opposite. Also, I do not have the patience and stamina to sit and stare at the screen all day, so I was looking for a strategy that I can enter at any time and that has pre-defined exit points for either profit or loss, so I can enter into a trade and walk away.
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Thanks for the feedback. I'm glad to see somebody is still checking on this thread. Maybe we can even attract Edward to join us again with his expertise.
I am going to back test a few strategies off the original poster's system.
System 1- 5 min Heiken-ashi candles. Follow the last candle up or down for buy or sell. Exit PL-10, SL 20. I will try 5-10 of the large pairs. Also, when time permits experiment with slightly higher amounts ranging from the 10-20 up to 25-50. The idea is to find the best pl/sl given the pair's level of volatility generally.
System 2- I am going to do some investigation, and look for 1 indiator to add. I would like to add an indicator to improve winning percentage without making the system dependent on a trending market. I would rather see if I can get a system that is extremely simple and can perform in trending and ranging markets first.
If these stops prove to be poor exits, I will experiment with adding a single indicator for exit signals.
Any ideas on which pairs generallly are more volitle then others? This way I can determine which pairs might work better with a little higher PL/SL than the 10 and 20. Also, any ideas on a good indicator to add to the Heiken-ashi candles? Thanks for the help.
Once I find something above that works then I will forward test. Even if nothing along these lines can be profitable, I think the practice of trying to develop a system from the most simple compentents and only adding as needed might be a good exrercise.
Robert
"If to go without any indicators, we can simply try changing regular candlesticks to heikin-ashi candlesticks. We would be interested to Buy after a close of a bullish candle that has no lower wick, and sell after a close of a bearish candle that has no upper wick."
Regards,
Edward
Edward,
I had a question, when you say bullish candle "no" lower wick, or bearish canndle "no" upper wick, do you mean that litteraly none, or was that short hand for very short and much less than any wick at the opposite end of the candle.
Thanks in advance
Robert
Hi Robert,
regarding volatility, here is the history trend for the past year: http://www.currency-forecasts.com/average_daily_range/24/
Regarding the candles with no lower/upper wicks, i referred to heiken-ashi candlesticks, and there there should be literally no wick for an entry signal to be valid.
Best regards,
Edward
I am also using this technique with some modification & my success rate is 100%
July 30 Poster,
Please share your minor modifications. Also, how long is your 100% win rate been over? #of trades?
Robert
I like the KISS method at all times. Keep It Simple Stupid has always worked for me.
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