Advanced system #14 (Simple trading with Daily range)

Stuart and Indrek,

How do you handle Friday trades? Some methods avoid trading on Friday due to poor results. Do you find the same?
Thanks again for your kind attention.

Regards Batavier

Thanks for your update Indrek, truly excellent results. Appreciate all the work you and Stuart put in. Could you please clarify is daily average based on 30 days or 10?
Thanks for your help.
Regards Batavier

Sorry, one mistake in the file - stop loss is entry -/+ 25 % of ADR. I post a new and
correct version here.

results_by_pairs_1.xls

Indrek

Hi everybody,
Stuart was right - the best time to start trading with this system is at London open. I today backtested the system for the period of April 1-May 13 assuming that trades were started on the basis of the prices at 7 a.m GMT. See attached file - the results were amazing! I will change my daily schedule starting tomorrow!

results_by_pairs.xls

Best regards,
Indrek

Sorry for confusion... It wasn't my comment, it's been submitted by an anonymous user, but after approval mistakenly appeared under my name.
Thank you for bringing it up.

Regards,
Edward

#Good morning. With the NAFTA rules against hedging coming into effect May/15th, how can we trade this system? Interbank FX already has implemented the hedging restriction and you can only place one open trade of a buy or sell. You cannot do both. Help. Thanks.#

You set limit orders and one order cancels the other or is stopped out before. This is not hedging. Quite frankly I don't understand your problem, Edward.

Sorry, friends, something happened to my report earlier. I now try again.
Statement.pdf

Only NFA registered brokers are affected. With others you can hedge non-stop.

Good morning. With the NAFTA rules against hedging coming into effect May/15th, how can we trade this system? Interbank FX already has implemented the hedging restriction and you can only place one open trade of a buy or sell. You cannot do both. Help. Thanks.

Thanks, Indrek

I don't see alink to the report. Could you attach it again? thank you.

Hello Stuart and all his fans :)
I personally think that grabbing 17 pips per trade from GBPJPY is too unambitious but if it is working for 100 % then there is always the possibility to trade 5 or even 10 lots at once and become rich very quickly ;)
I am still using the "old-fashioned" version - 25 % for everything. And I am now quite convinced that 25 % is enough for stop loss, too.
Four pairs that I trust most with this system ar so far AUDUSD, GBPUSD, EURJPY and GBPJPY. All of them have profitability over 70 % if to analyze the period from April 1 to today. I traded all of my 7 pairs today and scored 223 pips from those 4 plus some extra from 2 other pairs plus a loss on USDJPY - see the attached report.
Let us continue changing information and experience!
Regards,
Indrek

Hi everybody,
I would be very happy if Stuart as the author of the system commented on the issues but, of course, I try to answer your questions.
ALLEN:
1. I cancel opposite orders at once, because my analysis showed that the probability of having two losses per position is bigger than the possibility of having to profits.
2. If I said that I start my trading at 5-6 GMT, I meant that I use the price at 5 or 6 as the closing price of last day. I live in a time zone that is GMT +3, so it is quite reasonable for me to start at 8 or 9 my time.
3. I backtested it only for April. I do it manually, so it is quite an awful task...
4. I started to use the system in live trading only from May 1. I had a loss of 1 pip on May 4, other 4 days have been quite good, especially May 6 when all my 7 positions closed with profit.
USER
who made terrible loss on May 6: I cannot understand, because for me it was the most successful day... I contact you via e-mail soon.

Indrek

hello indrek,

i love this ur new post , i think it will do good cos today i made losses on my live account using the indicator for this system.

please i would like you to help me with full details on how you use this system profitably. my email is [email protected]

Indrek,

Thanks for your hard work. I feel that the original system seems to be the best also and I like the 1:1 ratio. I just have a couple of questions?

1. Are you cancelling the opposite direction once a trade is filled? Or do you let both long and short positions fill(if they do so through out the day)
2.Are you starting to trade at 5 or 6 (GMT) or just when you feel between 5-6GMT? Did you test any other times?
3. Lastly I was wondering how far back you were able to test the system since it seems to be giving very good results since late 2008. I had a couple rough days this week after a couple of very good weeks. Well thanks again Indrek for your hard work

Allen

Today I again spent hours on analyzing and backtesting the system. The main conclusion is that the original system is the best but I strongly suggest two modifications: 1) use average daily average range instead of previous day range; 2) use 1:1 risk-reward ratio.
I am sure that the second suggestion raises many questions but my calculations show that during a longer period, it is more effective to have a little bit greater number of small losses instead of having smaller number of big losses.
The pairs that behave very well under this system and give profit on over 2/3 of days - EURUSD, GBPUSD, AUDUSD, NZDUSD, USDJPY, EURJPY, GBPJPY.
(I start my trading at 5-6 a.m. GMT.)
If anybody is interested then I am ready to discuss the system in Skype (my ID is indreklindsalu).

Regards,
Indrek