Advanced system #14 (Simple trading with Daily range)

Stuart

What i cant work out is that you say on the first posting that you place your buy and stop orders in their respective positions but then go on to say later that you only trade in the direction of the centre of gravity direction. Sorry, have i missed something? IF you are setting buy or sell orders I assuming you set them and go off and do something else but your reference to the cog direction suggests that its a manual entry - I am slightly confused - could you explain the process again please.

many thanks

SCott

Stuart

Ignore previous post as I re-read the other postings; I have been checking this approach today on GBYJPY and GBPUSD and both would have been stopped out using yesterdays (18.03.09) stats even though they would have gone on to subsequently meet their targets. Both pairs started at 8am with a long candle and a second long candle which peaked above the opening of the first candle of the day but then subsequently went short; it was this second candle on both pairs that would have hit the stop so i would suggest either waiting for that second candle to actually form before entering or placing your stop at the last high of the previous day - or penultimate high if the last makes the numbers too frightening!! Either of these stops would have allowed both pairs to go on and hit their targets. The approach seems good in principle but would appreciate any feedback on the subject of stops.

Scott

Hi Scott

Stops we are still working on ... trying to get the best option. Today I worked on a 1:1.5 ratio and it seemed safe?

My results for today, 18/3/09:

EURUSD: +41
GBPJPY: +32
GBPUSD: -57
EURGBP: +21
GBPCHF: +46
USDJPY: +21
USDCHF: +20
AUDUSD: -13
EURCHF: +14
EURJPY: -30

7/10 WIN, AND RESULTING IN +95 PIPS FOR THE DAY.

I did however today, as a test, set my orders to 50% of previous days move away from close price. Result? Not as good as predicted?

Until tomorrow,

Stuart

Hi Stuart

Still not bad results for the day or rather the last 24hrs! I have noticed that the initial move in the wrong direction which wipes the stops out is generally restrained by the outer wall of the cog - this area could act as a useful stop. Also i have been using TRO's Dynamic Fib indicator to indicate lines of resistance of support.

I like the idea of being able to set the trades up and perhaps just glance at them during the day to minimise losses or protect profit. I might try 30-35% of the previous days move of the major pairs and see how i get on. I will post my results for you on Friday.

Cheers

SCott (London UK)

Hi everyone,

I took today 5 pairs on EST time zone with the start of the trading day at 00:00 EST.
Got next results:
GBP/JPY +35
GBP/USD +43
EUR/USD -45
AUD/USD +16
USD/JPY +19
(...Where Stuart got a loss, I took profit, but where I got a losing trade, Stuart made a profitable one...)

Besides regular testing, I'm considering now to try out a Pivot Point level for setting stops (Pivots are good since we can calculate them in advance). The idea is to set a stop either at PP + 15 pips away or at originally suggested by Stuart stop level, whichever is going to be less.
I'll continue my observations. Tomorrow I'll try all 10 pairs, so we can compare the results side by side.

Happy trading everyone!

Edward

Hi Scott,

Do you mean 30-35% of the move away from the close, or your target, or both?

With these percentages, one could really play around with them to get a method that suits one individually.

The foundation is there ... we just need to build on it.

Cheers,

Stuart (Antwerp, Belgium)

Hi Stuart

I tested 30% of the move compared to your 25% and the results were not as good; it kept failing to close out the trade but came very very close.

Would be interested to hear how you are dealing with THE spike we say yesterday as a result of the fed interest rate announcement. Are you continuing as normal taking it into account or are you ignoring yesterday and taking the range from the previous day for example? For those pairs in which it occurred it has obviously skewed the range completely but that range is unlikely to repeat itself presumably - there dont appear to be signs of large corrections as yet.

Scott

Hi Stuart

I decided to ignore the spike noted above and trade on the average daily range instead; these are my results so far today ie. my market opening at 8am GMT.

EURUSD 74 pips
AUDUSD 40 pips
USDCAD 56 pips
USDCHF 69 pips
USDJPY 50 pips

Both GBPJPY and GBPUSD are currently heading way off in the other direction so i dont hold out much hope but we will see.

Regards

Scott