Advanced system #14 (Simple trading with Daily range)

Stuart
Could you please take a day, perhaps Monday, and publish your ATR numbers and SL numbers for me to compare with mine, by pair. I know I am off somewhere.

Many thanks, David

Hi all,

does anybody know is it possible on metatrader to somehow reset the time periods so that, for example, a daily bar can begin at 7.00am GMT rather than at midnight (00.00am) GMT as mine currently does, or do I have to download another copy of metatrader with a different time zone setting
thanks
Andy

Stuart,

a silly question, I know, but how do you fill in the spreadsheet quickly enough for 10 currency pairs to ensure that you are able to place all trades before they are triggered. I've tried filling in the information manually and it seems to take ages. However, I am not particularly conversant with excel so am probably not doing it in the most efficient way. Any help would be appreciated.
thanks
Andy

Stuart:

Great System! Are you still placing BOTH trades? Were are you placing your Stop Loss Levels?

Thanks, Lynn

Hi Stuart

Herewith spreadsheet - hope the logic is correct. Unfortunately, cannot use goal solver as it is not linear, but can test by altering the % level.

TestCable.xls

Understand about your objective to milk trends. However, your approach has given me a great way to also get into the extended trends so my thanks. The most difficult part of trading long trends is to wait for that right moment. This way it is much easier not to push the trigger too soon as the daily trading using your system reduces the pressure and I find it much easier to wait until everything is confirmed.

Diana

Hi Stuart

Been away for most of last week. Number of things to report! Firstly found time to write a spreadsheet to backtest the system. Only using daily data, so not totally the same as live trading, but the interesting suggestion is that from January 2007 to now it looks as though the profit would be maximised at 15% of the previous day's range. I am now going to use 15% as I think it makes good sense that the smaller stop loss and take profit would work to our advantage.

Secondly, as I mentioned, where I think there is a probability of a trend reversal, I am opening a second position without a take profit level. (Re the observation that trade "long when COG points up and short when it points down", agree but it is still only a probability and using two orders can catch either a reversal or bounce and get in at the start of an extended move). If possible, will use OCO orders in this instance.

To date I have two positions open, one with 775 pips profit and one with 205 pips. However, I think in these cases I will continue to use 25% so that there is a clear break of the support or resistance levels before the position opens. I then manage the stop loss daily until the stop loss closes the position. The net gain should more than outweigh using 25% of the previous day's range especially as the large move is likely to occur after a period of quiet trading.

Diana

Stuart

I doubt I am alone, but assuming your are using ATR (14) on D1 you are generating some astonishing levels for SL such as 333 (today) for the GJ, or 259 (EJ) and 241 (GU).

A few days ago most of us were thinking of SL around 100. Maybe that is too low, I can't say, but over 300 is awfully large.

As we all know, someday hitting several of those huge stops will happen.

I am not critical, just personally nervous. Please confirm you are holding negative positions to such levels and that represents the current version of your all-April test of your system.

Many thanks, David

Daily ATR figure for pair? Does this mean ATR (14), this is normal, or ATR (1) representing one day on the daily chart?

David

Here is the best ATR explained: How to use ATR indicator

Hi all,
could someone please explain how the ATR indicator works as it currently makes no sense to me at all. Also, Stuart, you have stated (I think) that you are using the original system for the next month to see how it goes, but then you state that you are now making the stop loss 150 points, which is different to the original, and more risky. Could you please clear up the confusion because I'm now not sure what method you are using.
thanks
Andy

Stuart,

I have followed this thread all along. My limited experience tells me that if you look at too many tweaks, your head starts to spin out of control.
Your "original" system seems to give excellent results so far. But this could be just a coincidence. If the ratio is 1:2 so what if the results are great?
The original system sets two stop orders, one long and the other short. You let them go and sometimes you cash in on both and on rare occasions you will crash on both. One question: in the month-long test you are in, do you eliminate the second stop once the first one has been triggered? May be you answered this question before, I don't know.
One more thing. Being from Montreal, Canada, should I use New-York time. Although I imagine I could use pretty well any 24 hour and it should yield the same results. The only thing you got to use 24 x 1 hour and it takes longer.

Keep up the good work,
Regards
Claude

Interesting Stuart,

Today I paper traded 167 pts but one of my pairs was stopped out (USD/CAD short), where yours made, would yours have been stopped out if you hadn't widened your stops ?

GBP/USD +50
AUD/USD +29
CHF/JPY +42
USD/CAD -49
GBP/CHF +40
EUR/JPY +69
EUR/CAD -58
NZD/JPY +44

All opened and closed by mid day, the 2 losers would have made later on in the day but stops are there for a reason. I am working on getting the risk:reward ratio closer to 1:1. Lets see what results the system delivers tomorrow.

Chris

Stuart,

I assume you are allowing each trade to run its full course, either to take profit or stop loss level with no manual intervention. Hope so, then we can decide upon the system using genuine, reliable data. It's really refreshing to see someone who is prepared to devote the time to get enough results to establish whether or not a system is viable over the long term, as opposed to getting a couple of (manipulated) results and then touting it about as a good system. I personally do not day trade currently (due to a full time job) and, unfortunately, rely on people such as yourself to do the hard work for me. For that I am eternally grateful. Hope you succeed, you deserve to!!!
regards
Andy

The past few days have been a roller-coaster ride. the first day (on my Demo account not live account)I made $2000 on $2 lots. The second day it dropped to $500 and the third day it dropped to -$40. The problem here is the risk. All you need is one bad streak and you'll drop behind fast. It's not the system that's the problem but it's the risk that is the killer.

Ben

Hi,

can anybody explain how the ATR indicator is supposed to be used. I've applied it to some charts but can't really see what it is supposed to be telling me.
thanks