Complex trading system #21 (Trapping the price)
Submitted by User on October 7, 2011 - 10:41.
Submitted by Eric
Set up.
Pick a price level. (eg 1.5000)
Place 3 long limit orders above the chosen middle line at equal increment. (1.5050, 1.5100 and 1.5150) (50 pips increment)
Place 3 short limit orders below the chosen middle line at the same increment (1.4950, 1.4900 and 1.4850) ( 50 pips increment)
All long limit orders have a target profit of 1.5200.
All short limit orders have a target profit of 1.4800.
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Eric,
You say that in theory you should not lose. But, to keep the numbers you gave in your example, what if price goes up to 1.5190 all the way down to 1.4810. Up and down like that three times? Extremely unlikely situation for sure. But for the sake of the argument, do you still think you would come up ahead when it finally reaches your profit target? I havent done the math...just asking.
I just want to clarify something. When a trigger level is reached, do you add a limit order on ther other side on ALL THREE levels, or just on the corresponding level?
One more thing. Say your short limit order is triggered at 1.4950, price goes against you and the long limit order is triggered at 1.5050. You are supposed to add to the short limit order (beit just the one or all three). The thing is your short limit at 1.4950 is no longer there since it was triggered before. Are you supposed to place two orders at that level now?
Claude
Looks promising :) ... did some papertrade backtests ... StopLoss for all long trades should be the TakeProfit level of the short trades ... and StopLoss for all short trades should be the TakeProfit level of the long trades. I modified the fib tool in MT4 like this
so it shows all levels and price of each level
Greetings from Hamburg/Germany, Dietmar, DL4HAO
as long as you keep yo0ur positions reasonable and u have a good account size u should see a steady increase in equity
eric
ur pick...
just try to avoid ranging price action
rgds,
eric
How do you pick a price level to begin with?
Hi Eric, interesting method, i have tried on a few pairs and seems to work well, the forex seems pretty random on occasions and this method seems to catch many good trades.
-MSD
Hi Eric, interesting method, i have tried on a few pairs and seems to work well on the 4 hour and using 1/3 atr for each side of the setup. Thanks for sharing, the forex seems pretty random on occasions and this method seems to catch many good trades.
child soldiers - Vietnam
please show how you stop losses?
complement one another:
If we just this strategy as a one-way rules?
example:
just buy the part on the MA 50 and only the part below the 50 MA
Dear!
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