Advanced system #14 (Simple trading with Daily range)

Stuart. Thank you for the info. Very good work. Will continue to think of new ideas also. Even if you go the safe route on trades and only pull 80-100 pips per day This is a very good system. I also am a firm believer in trading with real money. Even if you start by trading micro lots (which I am doing) it gives you the true feel for the system. Just build it up slowly. Your true profit is what you have at the end of the week, because you will have excellent days and not so good days. So far I have only taken 1 loss this week and I am up +126 for the week. Keep up the good work.

Hi All,

As I discovered today ... using the daily average is not that recommended. Although for days with spikes, it is then highly recommended!! Continue using the previous days range, unless there was an "out of the ordinary" move (spike) - in that case, use an average.

I managed to find a non-painting COG indicator. Please use it.

JB_Center_of_Gravity.mq4

I do apologize, but I am going to have to go back on my previous comment with regard to trading both ways - don't. I learned and expensive lesson today on the EURGBP which hit SL in both directions!!! My fault I know.

Another indicator which might help is the MTF HAS indicator? (Multi time frame Heikin Ashi smothered). Give it a go?

MTF_HAS_Bar_Lower_A.mq4

I have thought of testing and setting the orders 15% of the previous days move away from close price, but still taking the 25% profit? This way it drastically decreases your risk/reward ratio ... and it gets you in the trade earlier. I am going to put it to the test now, and let you know the results tomorrow.

Until tomorrow then ... and thank you all for the ideas and help.

Stuart

Stuart

You are a little disappointed today. Understandable, BUT you have learned several very valuable things! We learn (sadly) as we adjust from losses. THANK YOU again for your incredible effort on Advanced 14. We will all do better tomorrow and continue with a healthy system that will do nothing but get better.

Best to you, David

Hi Stuart,

How did you loose both ways on the EURGBP today? or was for yesterday 23/3/09? Looking back in history I didn't see any loss. I suppose may be it was due to your 24 hrs period otherwise it was supposed to be a perfect trade.

Please COG? Let me know it and how to apply it.

Thanks for your system. It's a wonderful one.

Hi Stuart

Working hard on your system - from testing now gone live and had a good day so far today. I am trying out an indicator I have just discovered - Ichimoku, Japanese for "one look". Be very interested to hear if anyone has had experience of using this indicator.

I think it may help identify the probability of trends, and I will be back as soon as I have I fully worked out the rules to screen out trades like your EURGBP. What I am hoping is that it will give three levels: one for a trend continue with the 25% average range take profit level, one where there is a much higher probability of a large break in one direction and where it is worth risking a higher % of the average range for the profit level, and then one for a choppy market: not sure yet but possibly then use a smaller stop loss and take profit level. As I understand it so far, it very cleary defines the support/resistance area so once the price breaks above/below a move beyond that candle is a clear confirmation of the break.

I am using an ATR indicator on a 5 day setting to give me an average range. I am using the COG with a 30 day setting which gives me a very clear picture of the month's trend. Again, feel that there is much more information to be used from the COG indicator than I am seeing at present - possible the other levels should be helpful to define stop loss and take profit levels. One thing I discovered that I didn't know is that metatrader includes a daily bar for Sunday - probably this is a good factor as I imagine it reduces the size of the ATR for Monday trading.

As a last observation, I haven't had time yet but feel mayube we should look at the correlations of the pairs we are using - do you think it might be worth screening out the very highly correlated pairs? On the other hand maybe we are automatically including a hedging strategy?

Look forward to reading your posts.

This is a great approach for which thanks.

Diana

Hi all,

Thank you for the fine comments. ;-)

As I mentioned I would test my distance at 15% away from close, and still take my 25%. I was using the 10 day average to get my movement. Orders placed at 22:00 (GMT +1). The results were as follows:

EURUSD -50
GBPJPY +67
GBPUSD +59
EURGBP +25
GBPCHF +65
USDJPY +42
USDCHF - DIDN'T TRADE DUE TO BEING FLAT
AUDUSD +29
EURCHF +38
EURJPY +48

TOTAL: +295 PIPS.

As my distance was 15% from close, less than the original 25%, meant that the risk/reward was now 1:1. SL still being 10 pips away from the "would be" opposite order. By decreasing the distance, we have decreased the risk/reward from 2:1 to 1:1. So my one loss would have been -100 pips instead of the -50?

I will test the 15% theory again tonight ... now actually (22:00 my time), and post results again.

All the best,
Stuart

Hi Diana, I just looked at that "Ichimoku" indicator??? I haven't got a clue? Anyone have a link that explains how to use it? Thanks, Stuart

Hi again,

If anyone wants to have a look at the Ichimoku indicator and how it works, follow this link:

http://www.fxwords.com/u/ichimoku-cloud.html

Stuart Williamson