Developing a Strategy #1 (Daily chart trading)
Submitted by Edward Revy on May 27, 2008 - 12:52.
Submitted by dachelm
[email protected]
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Hello and thanks for this great site.
This strategy is still in development and I still don't know if I should send this but I find it quite interesting and I just want to share it. Please let me know if I am right or if this could be something else.
OK here's the deal. The start point is the daily chart and is quite easy to understand cause does not require any indicators so far but could be considered if somebody want to add something to this "strategy".
As I said we take the daily chart and any currency pair I tried so far with GBP/JPY but should work with any. Take the first candle and if close bullish then entry for a long position (1 lot) with no limit and no stops coz you will wait for that candle to close and then close the position. If that candle close bullish again you go long again (1 lot) and so on until a candle close bearish, when it does entry short with the doubles of lots (2 lots)of the last trade and if you lose that one too repeat and double the lots (4 lots) until you win.
This could sound scary and include a lot of risk, I'm still trying to fix the risk but I can tell that I analize the first four months of 2007 and here are the results:
January: +1080 pips
Febrary: +865 pips
April: +1500 pips
May: -45 pips
If anyone want to add something please feel free to do it coz This looks good but needs improvements.
Thanks
dachelm
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
The system is good without the martingale principle. If you lose, then you lose, but do not double your next trade.
I'm just looking for it ... maybe try it for this 1st Aug 2012 ... I will post the result later. TQ.
Is anyone using this system? If yes, please report on out come
This system would gaurantee that you bankrupt. No if's or buts,by it's very nature, unless you have unlimited money, you would go bankrupt and have the debt collectors knowkcing on your door.
If you look carefully on the chart you will notice that 5th plus from the left actuallu should be minus, because the close of that candle is above low of previous candle. So you enter the trade(short) but it finished above previous low.
The same apply for 5th plus from the right(just oposite direction).
Rgds J.
This strategy could be work great with Option trading.
You know if you have bomonmarket account. Then you can use it on 1Hr chart for predicting next candle.
Regards,
Somsri
lol (. _ .) lol you discovered a holy grail
yes, thank you Winny,
just posted it: Midnight Trading + never give up
Best regards,
Edward
Hi All...
i have back tested this strategy for Euro- USD from 2006 January till now which is 16 of May 2011..
here are the results .. (PLEASE IF ANYBODY IS WILLING TO TEST Strategy's TOGETHER LET ME KNOW MY EMAIL ADDRESS IS [email protected] ....it can take away a lot of work)
Ok i tested first the Edward rules .. Last bar must have had closed in the direction of the indicator and we then put a buy or sell stop above or bellow high or low ...but what i didn't do i just took the high + Spread not 10pips..Anyway these are the results if we would have taken every time a 0.1 Lot position in an 10k account.
2006 - +720 USD Maximum draw down in a month 130 dollar
2007 - +1060 USD Maximum draw down in a month 70 dollar
2008 - +2160 USD Maximum D.D. in a month 240 dollar
2009 - +1330 USD M.D.D. In a month 550 dollar
2010 - +1620 USD M.D.D. in a month 60 dollar
2011 - +1290 USD M.D.D. none
While i was playing with this strategy i came up with the idea (I AM SURE THE FIRST TRADER OF THE WORLD HAD THE SAME IDEA SO ITS FOR SURE NOT NEW) i was just thinking why not even more simpler than dachels strategy ....So i thought lets try to take without any indicator just a buy stop and sell stop at the high and low and close it the next day at close and repeat this again and again ..(the good thing is here that it has a stop loss it will hedge itself automatically)
well here are the results with 0.1 Lot for Euro USD from jan.2006 till now 16 Mai 2011
2006 - + 840 M.D.D. -170
2007- + 630 M.D.D. -150
2008- + 2700 M.D.D. -110
2009- + 450 M.D.D. -750
2010 + 1350 M.D.D. -460
2011 + 850 M.D.D. -170
I hope i could help others with this and bring in new ideas i was thinking that what if we would take this or dachels strategy and try it on 10 trending pairs and see what will happen maybe we will get a 100% Return but i am afraid that when euro usd will be choppy the others maybe will be choppy as well and the draw down will be a lot but his can only be found out if make a back test on all pairs together or if we would have a EA for this strategy or the second one...Maybe we can find a way ..
ALRIGHT IF ANYBODY HAS ANY IDEAS PLEASE LET ME KNOW .. IF ANYBODY CAN BUILD AN EA FOR THIS LET ME KNOW TWICE AND IF ANYBODY WANTS TO BACK TEST WITH ME TOGETHER LET ME KNOW TRIPLE MILLION ...TRILLION...
AND THANK YOU AGAIN EDWARD FOR YOUR GREAT SITE GOD BLESS YOU AND YOUR FAMILY ...
Sincerely
Winny
PS: Edward did you get the strategy i send you or the strategy idea i know its not finished its just idea the strategy was called Midnight Trading + Double up
Dear Edward..
I wanted to ask you. that if you wanted to do a back test.. on what timeline we should do it and what time line would be enough.. i was thinking from 2006 till now?
I running a back-test on this with now to take place a buy stop and sell stop at the High and low no matter when where ..
And to execute it the way you have described.
And also maybe go in the direction of the trend indicator and wait for a positive candle but to take the trade from the close
PS: If you have the time and i know you dont have much time can you answer this question and my question from above?
If anybody want to help me in the back-test please contact me under [email protected]
God bless you!
Winny
Edward i would like to know why this strategy is not in the simple strategy's as yet....are there any problems with this strategy's..will it blow up your account?
Does anybody have any results updated on this one ?
Sincerely
Winston
Hi All,
Stew, great stuff mate. Keep up the good work.
Back to the topic, I like this strategy and I have been employing it myself. I probably can offer a good method of lowering the risks associated with this strategy and even use it to your advantage. The method involves using grid strategy (i.e. hedging strategy). So, say you buy and sell AUD/USD at the same time. If the period sell in which you enter your trade is black (up) then you buy 0.1 of your buy position. In effect you have just taken a net buy position of 0.1 (do you see my point here?) The reason you do this is that if you get it wrong then you still have many more chances of making BUYs without having to open a new contract. So this saves you the spread cost of opening a new contract but still have the ability to effectively taking a new position without incurring new costs. Furthermore, if AUD/USD has fallen by let say 2000 pips in an hour then there is a bigger chance that it will pull back in the next few minutes and this gives you a big opportunity to double your bet on BUY. If you get it right then you will break even or even make some profit. Since doubling the bet means selling only .2 of your sell position (remember I am still using the same old position which after selling 0.2 will now be 0.7) then your risk is low as the contract is small anyway. I hope you guys get what I am getting at here. Otherwise just post me a question, I will be most delighted to assist. Apology for the amount of words used just to explain this simple method. Happy and SAFE trading.
Regards,
Suba
why dont you guys trade eurusd it generates more pips than any currency.about the strategy its more than safe.its what i use.tunde adesanwo 2347092068157 nigeria
Hi Toby,
These are the rules I've proposed: to enter on the breakout of the daily high/low + 10 pips.
In my example, even if the candle closes 50 pips away from its High/Low, we'll be waiting for a 50 pips + 10 pips = 60 pips move before we can start trading.
Taking trades immediately after the close of the previous candle without waiting for a breakout of the High/low would be too risky as we can't be 100% sure about the trend for the new day: what if there is a sharp trend reversal lurking ahead...
(To sum it up: if you omit the breakout rule and also won't look at the color of the previous candle, I'm afraid it won't be a good choice). However, that's only my opinion.
Kind regards,
Edward
I forgot to mention that I wanned to trade without looking at the color of the previous candel, because in you example the results were better.
Toby
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