Developing a Strategy #1 (Daily chart trading)

Hi,

thanks for the answer. I just got one last question. Lets say your indikator tells you to take the long trades but the last candel is larg black one and the difference between clos and high is about 50 pips larg. Do you still put your order 10 pips above high? I hope you get what I am trying to say, the chances, that we make good money with this trade a limeted cause the marked has to move 60 pips before we would even get in the traid. So what do you do with large candels? Thanks for your help

MFG

Toby

Hi Toby,

Add 10 pips to the day high/low, not the close. Spread is not added, it's always 10 pips, unless you trade with minor or exotic pairs, where spreads are above 10 pips (then you should consider a higher number 15, 20 pips etc.)

The strategy is based on daily charts for a reason - we look to continue following the price direction from the previous day. If you apply it to 5 min - you'll get some random noise, if you us it on weekly charts, that might bring some results, but your risks would be significantly higher, and it won't be possible to evaluate monthly performance, may be quarterly, yearly, which doesn't motivate every trader.

We need to look at the color of the last daily candle - that's how we decide whether we'll be Buying or Selling on the next trade.

Kind regards,
Edward

Hi Edward,

I have a question, do you add the 10 pips to the close of the last candel or to the daily-low and do you add the spread to the 10 pips? Moreover, is it possibel to trade this on other time charts? 5min?^^ weekly? This looks like a good strategy just to trade this on hight time frames and trade those on the side, were you dont have to check to often. Would you recoment the version with looking at the color of the last candel or without? Thanks

MFG Toby

cool.
i need an easy daily system.
looking at the charts more than twice a day drives me crazy.

Tiwalola,
What money management rules do you use?

Thx.
-Tom

Mine did well, so far on demo.
Don't have the accurate numbers to share since I'm simultaneously testing several systems, and it's a demo anyway.

I like how simple but seemingly effective this daily system looks.

Since it's been a few months, any update? Has it held up to a live trade?

Thanks -

I have demo traded this strategy for the past four months with the following modification - I do not double the lot size anytime I lose rather I stayed on my money management principle. Also, I have tried it on Eur/Usd, Aud/Usd, mainly and the rate of return at the end of each month is a minimum of 20% on my capital as at the begining of each month. I intend to use it for my live trading as from next year.
Tiwalola

I used Instaforex and this technique works very well. I did backtest from 1-31 august and it could gain lot of pips :)

I will do some experiment and will show to u guys later.

mmaker14

I remember with ebook : "TRADING BY THE MINUTES" Or "TNT.I" & the hardcover version called "Daytrading" By Joe Ross.

I remember in 1 section, this strategies look similar with his "INTERMEDIATE ENTRY" Signals.

Regards;

Manus168

Here it goes:
sa#MTEI_Supertrend.mq4

To add this custom indicator to your MT4 trading platform, please follow the steps at:
http://forex-strategies-revealed.com/mt4/how-to-add-and-use-mt4-custom-indicators

Regards,
Edward

Great Job Edward, But please i dont know how to get the sa#MTEI_Supertrend.mq4 indicator. I would appriciate if you provide me with the info on how to get it. Thank

Hi Dachel,

Thanks for doing calculations. The results are good indeed. I'd be interested to look at a report for 2007 and 08.

Sundays aren't suggested for trading. So, we have a break (no trading) on: Saturday, Sunday and Monday.

Regards,
Edward

Well I calculate exactly what you got in there and the results are nice

1659 pips from 02.08.2008 through 06.06.2008 (Four Months)
Monthly average: 414 pips (spread not included)

I will back test this system for the whole 2007 to date and come up with results and by the way do you open an operation sunday until 12:00amEST and then Close it? Then not open another one Until tuesday?

Thanks in advance

Dachel

Hey Edward that looks very good, Can you tell how many pips was caught in that past data image? and how many pips in the 21 winners and 5 losers.

Thanks
Dachel