Advanced system #14 (Simple trading with Daily range)

Hi Tom and Josh,

Tom - It can be normal? Some trades take almost the whole day to exit in profit. But today was not a particularly good day.

Josh - I think time frame does play a role. By trading from 7 GMT, you catch Frankfurt open, then it normally retracts when London opens at 8 GMT. I do think that the 15% isn't exactly far enough to determine continuation? 20% will be better. I think that both our distance and TP should not be more than 60% of the previous days total move? So, you could set it at 30/30, 20/40, 25/35 and so on?

I am trying something a little different tonight at my time 0:00, and will post the idea. Same set up basically, but a little more fiddling.

Cheers for now,
Stuart

Hi all,
and thanks Stuart for posting a very interesting strategy. I'm no expert but, having read all the comments, I keep coming back to the idea that the very first of Stuart's methods for testing this strategy seems to be as good as any, because it seems to be producing regular, fair profits without being too cumbersome to use. All of the "tweaks" that people are creating to help improve the performance seem to be producing negligible improvement and I'm wondering whether it might be a good exercise if someone could go with a single strategy for a couple of weeks and give us their findings, good or bad, to see how the thing works "long term". The problem is, of course, that any single day can produce remarkable results and give the sometimes misleading impression that the latest version of the system has ironed out a lot of the previous problems, only for the next day's results using the latest version to be poor. Nobody wins all of the time but if you win most of the time you're onto a winner and I think Stuart has found a potential winner. Does anybody agree with this viewpoint or am I talking rubbish. If so, please say and I really won't be offended as all I am trying to do is find a good, solid strategy without expecting it to win all the time. I'll get off my soapbox now.
Thanks
Andy

Stuart,
I've had a look at your strategy and I've also downloaded the spreadsheet to do a bit of backtesting. I notice that when I fill in the spreadsheet for the GBP/USD (the first one I tried)it gives entry and exit points but places stop loss values of 100 pips. I thought your system was based on stop losses of 10 pips or am I misunderstanding something basic here?
cheers
Andy

Hi Andy,

Thanks for your comments.
With this system/method, it places your SL 10 pips away from the opposite order. The ratio between TP and SL is 1.8. Risky I know, but it performs well. It could never work with a SL of 10 pips unfortunately ... not enough space and time to get to the TP.
As long as I am in profit in pips at the end of the day I am happy. Of course you are going to have bad days, but at the end of the day, hopefully good days out number the bad? That is trading.

However ... I have decided to test a trailing stop to protect my equity. I would be setting it to 60% of whatever my TP is. But that is entirely up to the individual to use.

I tend to agree with you, even though the tweaking has been helpful, but the original method seems to be consistent ... and very simple. I will be trading the original method from now, for a set 2 weeks or so, to see exactly how it performs.

The below spread sheet has the Trailing Stop added as column "TS". The Total column is just for me to monitor how the pair is performing. Also the ADR is the average daily range, which I am using at the moment for a constant amount of hopefully profit. I would be happy with getting a daily small amount of pips ... consistent and compounding, that's the plan anyway!!

FINAL_25_MOVE_1.xls

Many thanks to all, and I will keep my results coming in.

Regards,
Stuart

I've had no success downloading the av. daily range into the programme which I'm sure is my inexperience of MT4 but I have succesfullt downloaded other files.
Can anyone advise on how to create the language files as indicators and how to load the template files. Many thanks. Paulk

Hi Paul,

I had the same problems when I started?

Follow this: http://forex-strategies-revealed.com/mt4/how-to-add-and-use-mt4-custom-i... and it should give a solution.

Thanks,
Stuart

Hi Stuart

Just downloading the new spreadsheet - you are a star! I agree with you about keeping the simple ingredients. I had a small insight how to deal with probability: so I am testing putting both long and short orders as per the system and then increasing the lot size according to my assessment of the probability of the trade being a trend continue, break or reversal. Hopefully this will increase the potential value of the pips rather than altering the risk:reward ratio. Not sure it would have coped with yesterday's spikes.

The trailing stop is a good idea but how can this be set up to auto trade in metatrader - have never seen any way of entering auto stops (or OCO orders for that matter) so maybe have to trade with a broker that offers both possibilities? Don't think any of my present accounts have trailing stop loss so may have to open yet another account!

Diana

Hi Diana,

I like the sound of "probability" and therefore increasing lot size? Let us know what you manage to do on that.

To automate the system? No idea. As the orders are only set once a day, it only takes about 15-20 minutes to place them all on the 10 pairs. Luckily thats where the spread sheet is useful - just enter ADR and CLOSE, then copy and paste all others.

Broker wise, I am now using IFC Markets. Very simple platform, the way I like things, and you can have a very low deposit to start, $1 I think? I was with OANDA, but they didn't have a trailing stop option. I am also with FXPRO, a MT4 broker, but a demo. Heard about some issues with them when you need to withdraw - but I just heard?

Kind regards,
stuart