Forex trading strategy #1 (Simple balanced system)

Hello,

I just programmed this strategy in an EA to test it.
I tested it from January to July 2010 and it's continuously losing.
The problems encountered are 1) late exits 2) too many failed entries.

Does anyone really made money with it?

Thanks

Nathan

Hello,

Just to say thank you (especially to Edward) for this website that helps us to find a strategy that fits with our personality.

All the best,
DS0167

Hello
this is a situiation :

Sell GBPUSD at 1.5396 , now LOSE -277.49
Sell EURUSD at 1.2997 , now LOSE -117.64
Hedge the GBPUSD at 1.5896 now WIN 22.59
Hedge the EURUSD at 1.3183 now WIN 24.01

The Balance now is $381.75 , remaining $35.25 and stand , Left Margin is (-$14.75)

The question is : how could you SAVE as much as possiple , what has to do ?

Traders : Whould you ansewer this ?
Thank you .

Hi,

As I promised, You will find the complete system description, EA's, templete, ... in the link
http://forums.forex-strategies-revealed.com/basic-balanced-system-expert...

Thanks Edward for your system.

O. Shaban

Hello Edward,
I'm Osama from Libya. First, I would like to thank you for this up-normal simple strategy.
I already coded an EA for this system since 2008. I'm sorry for not posting the EA here for many reasons. The first one is that I need to test it on the long run and doing all the needed tweaks. I already made %1360 of profit within 5 days. I was lucky because the market was trending, but the system works very very very well because later I did around 3700 pips in a week. (see the attached image). The final EA passed to a lot of developments, but the main strategy is still the same. SMA100 was added as a filter. If the price is above this moving average, then we will wait for the Long entries only, and the opposite for the Short trades. The EA is not working as a fully robot trader. I should accept the entry point according to a simple criteria. I will post the whole story about how to use the EA in the FSR Forum within few days.

Once I post the story in the forum, I will give a notice here.

By the way, I already opened a thread at http://www.arabictrader.com/vb/t54838.html about this strategy. Sadlly, the used language there is the Arabic!. The thread has 44,051 views and 748 posts till this moment. I already mentioned the source of the strategy to keep your copy right of the strategy.

Thanks Edward again.

Osama Shaban

The best ideas I've seen for range bound trading:
http://forex-strategies-revealed.com/range-bound-trading

Hi, I mentioned that I traded on 1 min timeframe. When refer to 30 min timeframe chart, if the market is under consolidation/ranging condition, these strategy fail because the consolidation market on 30 min timeframe run up and down within about 10 pips ... entry and exit rules keeps on occurred , although both entry and exit is crosses at the near level , however every trade opened comes with spread of 1-3 pips loss.

Anyway to avoid consolidate/ranging market ?

Regards,
Glenn

Hi, just now tested on 1 min time frame SELL usd/jpy ... I refer to 1 hour time frame which is downtrend, so I back to 1 min time frame and wait for all rules fulfill and open a SELL position immediate after the current candlestick close

I assume stop-loss 5 pips , and only allow 2% risk. Thus, with capital USD250 , I trade 10 micro lot. In that trade, I only ride around 16 pips, and the exit rules touch, so I close the position, this win trade give me 8% profit of capital.

Entering trades on 5 min charts (and basically on any other time frame),
you'll have to be prepared to see the market moving against you for a while, because this is how it settles in before moving forward. Plus we pay the spread, which adds up to the cost.

In this strategy we have a lag, because I believe we want to get a good number of confirmations before committing to a particular trade. By eliminating those filters, we can be faster on each trade, at the same time this would most certainly increase the number of unsuccessful trades.

I think you can and should work with risk:reward ratio rule; and if you place a 10 pips stop on 5 min charts, you should look to get back at least 15-20 pips on a profitable trade.

I think this system is well balanced, as long as you understand the purpose of the rules in it.

Rich

Hi, I'm glad that you are sharing the strategies here, thanks a lot !

I try out in 5 minutes time frame, stop loss of 5 - 10 pips, every time I open position, surely will lose few pips of spread, so the trend must move more then the spread only I start to get profit. Also, since there is a lag when 3 conditions (i.e. MA, Stoch, and RSI) must all be fulfill, then the trend need to move more than 15 pips to have a appropriate risk control, where return-to-risk ratio is more then 1:1.

Any good idea to bend/tune this strategy ?
or actually this strategy is not that appropriate to have a stop-loss pips and risk% of capital to derive the lot size I need to trade ?

I have had mixed results.. Personally I think this strategy doesn't work on accounts with low equity.

sideways trading is really problematic, however i have observed that periods of sideways trading are usually followed by a breakaway in a certain direction, i've been testing efficacy of 21ema on hourly and 4 hourly charts to assist in deciding which way to go in combination with indicators of simple balanced system. so far so good...(see chart)

loss threshold is a function of personality, "to thine own self be true". dont stretch ur psychological threshold to absorb/withstand losses, find a strategy that will satisfy ur mental loss capacity. this will improve ur trading confidence and help u remain within ur money management limits

Hello everyone, been testing this system on a 3 hour time-frame and during a period of sideways trading there was a drop below were I would normally have placed a stop loss. However, the technique indicated there should be no exit. I stuck with it and let it breathe and sure enough, I eventually came into profit.

Is this the way to go? Are the exit signals strong/reliable enough that you can disregard your stop loss when those signals aren't close enough to triggering?

Any comments appreciated,
Cheers!

Osahon, it's looking promising! 131 pips profit since monday on my demo account.
But, I have learned that you have to follow strictly. An early opened trade resulted in a 5 pip lost.. That's still 126 pips profit. :)

Thanks for sharing!!

Dave its still very relevant. i did 190 pips last friday and 150 pips today & rolling in dough! just adapt / modify to suit ur personality and follow STRICTLY ur trading and money management rules. of course test on ur demo account first.

Many thanks again Edward!
Regards
Osahon