Advanced system #14 (Simple trading with Daily range)

Would be interested to hear from all on how today went. Hard day for me after some good ones. I know they can't all work well, and I wasn't down too much, but after some BIG days, it was different.

How many pairs did you trade?
Total pip gain or loss?

Just trying to be sure I am tracking correctly.

Thanks, David

I use stop orders for entry with a take profit order and a stop-loss. Once everything's set-up I go to bed.

HELLO,

PLEASE HELP ME , MY ACCOUNT S HITING MARGING CALL WITH THIS SYSTEM

ALL THE TRADE I PLACED ON TUESDAY NITE ARE HITTING STOP LOSS OF 100.

WHERE DID I GET IT WRONG I USED THE LATEST 25 MOVE CALCULATOR SPREAD SHEET.

AND YET AM NOT GETTING THE RIGHT PIPS PROMISED.
PLEASE I KNOW SOME TRADERS IN THIS SITE ARE MAKING MONEY WITH THIS CAN YOU HELP ME?

hello fellow traders,

Today been Wednesday is my another bad day. this time was worse.
i used the latest 25 move forex calculate , to do my analisys on Tuesday.

after setting my others not more than two hours, two currencies closed at stoploss each 101 dollars, another one both triggered and hit stoploss.
now am having more than 5 stoploss hit, my marging call is almost at hand, but i pray it wont happen.
where am i getting it wrong?is it the spread sheet or the stoploss or the entry point is too close or what.
i know there are ppl making money with this system , please help me out, this is the only syetem that i have seen promising and lots of positive contribution.

please members of this great site help out.

Thanks
steve-Nigeria

Hi "user" and Ben,

Thanks for the positive comments. I like the idea of the ATR.

Yes, you do risk a lot, but that's where your correct money management comes in. Should all your trades end at SL, then I think 25% or 1/4 is a fair loss? But ... what are the chances?????

As I am such a rookie here, I could never sell this method - wouldn't be right? I came up with the idea, and posted it here for all to see, comment on, improve, chuck out if needed ... and so on. I am just so pleased that some are making it work. Gives me hope in the Forex world. ;-)

Thanks,
Stuart

Nahh.... I like this system also but if you sold it on Click-Bank everyone will ask for a refund once they see how much they are risking.

Ben

I have testing this system for two days now and am very excited about the results. I think this could prove to be the best system I have ever come across, and I have been researching systems for over two years now.

This system is genius. It hardly takes any time to input your orders each day, and most trades are profitable.

I'm also testing to see whether this system works on a weekly basis, a weekly timeframe using the weekly charts. If it does, and it makes just as much money as on the daily timeframe, you could just enter orders once a week, instead of every day.

I do have a couple of additions, however. Instead of using your daily-range indicator, I use the ATR(14). The Average True Range indicator is available on most every charting platform, and what it measures is the average movement for the pair, on whatever timeframe you're using it on. So, if you use it on the daily timeframe, on the daily chart, it will give you the average movement of the pair for the day, and all of the previous days. I use the period of 14 with it because I read that this is the most common and the most useful period to use with the ATR. I actually read about another strategy that uses the ATR(14) to set stoplosses. The author of that strategy suggests using 50% of the ATR for your stoploss.

Another thing I've been doing is keeping an eye on the trades as the day develops. I check it about every 1-4 hours. Then, if a trade ends in a profit, I delete the other half of the trade. But if the trade ends in a loss, I keep the other half of the trade open, to try to recoup some of that loss. For example, if my BUY GBPJPY trade ended in a loss, I would keep the pending SELL GBPJPY order open. But if the BUY GBPJPY trade ended in a profit, I would delete the pending SELL GBPJPY order.

I love your Final Spreadsheet, Stuart! This is what I've been using. It works great! But, again, I use the ATR(14) for the daily range.

I've been trading only the majors- GBP/JPY, GBP/CHF, GBP/USD, USD/CHF, USD/JPY, NZD/USD, EUR/USD, EUR/JPY, AUD/USD, USD/CAD. I've read that it's best to just trade the majors because they are less susceptible to market manipulation by governments, big institutions and wealthy individuals. Plus, it just takes too much time to enter in orders for every single currency pair in existence. And you can make good money just trading the majors.

A word of caution, however. You should prepare for the worst case scenario each trading day. You never really know in the currency markets. Even good accurate systems can have very bad drawdown periods occasionally. And you don't want your account blown out from these drawdown periods. Since our stoplosses, with this strategy on a daily timeframe, always seem to hover around the 100-pip mark, you should be financially prepared to lose that on all your trades. And this "worst case scenario" should not dent your account by more than one-fourth. In other words, if you got stopped-out on all your trades, you would only lose about one-fourth of your total account. Obviously, if you can afford to make this risk even less, and still make good money, by all means do so. Also, I would avoid trading on Sundays, wait until Monday. Sundays are notorious for triggering stoplosses and being very choppy.

In the past two days using the system as I described above, I've netted 617 pips! This is just awesome. I love it. It only takes a couple hours a day to do! Somebody could sell this system on Clickbank and make a fortune.

Hi all,
regarding how often to trade, I've got a theoretical scenario: If 24 people are all trading this system but each of them is using a different 24 hour period (different by one hour from all the other 23)therefore covering all 24 hours of a day, and all are expecting the system to work for them, regardless of which 24 hour period is used (as it should do in theory)then theoretically any one person could trade this system each and every hour, using the previous 24 hour trading range figures, and make a large number of winning trades throughout the day. Now, if you agree with this scenario, and there's no reason why you shouldn't, then the question of overtrading becomes absurd as it would never be an issue. The only problem arises when somebody says that certain 24 hour trading periods are not suitable for this system, in which case the system is inherently flawed anyway. Hmmmm, food for thought.
regards
Andy

Also did I read somewhere that if the previous days range is over 100 then 100 is manually entered ??

Hi again,

Just a couple of questions to those who have used this system for a while. Is there any reason for entry being 25% of the daily range and not 20% or another percentage ? and I have had all 8 pairs triggered this morning but am wondering if there should be some criteria to decide if the entry is entered or not ie RSI above/below 50 ??

Chris

This could cause you to over-trade which is never a good thing. Stick with your original set-up with the 100 pip stop. If the currency pair don't move at least 100 pips or more in the previous days range, don't trade it. Entering multiple positions more than once in a day could lead to over-trading, and when that happens your days in forex are numbered.

Ben

Hi Stuart,

I'm just a bit confused whether or not you are sticking with a set system for 2 weeks to gauge a true "untweaked" picture of the system performance or not. I only ask because on your latest posting you state that you are now entering extra trades after the original ones have closed, using a new 24 hour period, which I suspect detracts from the original aim and which may give distorted results. What do you think?

Hi Stuart

Funny - I just watched the opening of the London session and came to almost the same conclusion! I know there is often an extreme candle when all the stacked up pending orders are filled and wonder if it might even be a good idea to cancel any pending orders that haven't been filled and close positions that are in profit and then reset after the markets have opened - not sure how long should wait? I suppose an alternative would be to trade different pairs for each session - Asia, London and New York?

On my probability, think the way I will do it is set up two orders where I think there is the likelihood of a trend reversal and either set a higher take profit level or leave open. My decision will be based on a supporty/resistance indicator I use and if the order on your system is close to a daily S/R level, then I will open two orders. The S/R indicator shows levels that have been tested a number of times so when an each way order is in that region it should either catch the break or the reversal.... in theory! I will demo for a few weeks and see if it gets me into the large moves which your system is milking!

I use metatrader and I can only get a end of day data for the broker's session. Lovely Stuart - can you give me an idea of where I can get data and set the end of day to different times?

As always lots of thanks.... Diana

Evening all,

I have selected the following 8 pairs and would welcome any comments.

GBP/USD
AUD/USD
CHF/JPY
USD/CAD
GBP/CHF
EUR/JPY
EUR/CAD
NZD/JPY

I add that this selection is at this stage experimental has I have just been made aware of this site (very good it is). I have devised a spreadsheet that gives a 5 day rolling average day range. I attach it and again would welcome any comments.
EXCEL_FOREX_MONTHS_TRIAL.xls

Stuart you (along with all those who have contributed) are to be congratulated on all your good work, I hope I can contribute to the fine tuning of what already appears to be a excellent system.

Has anyone experimented with the 24 timeframe used ? I am using 9am to 08.59am GMT but am thinking this might not be the optimum timeframe.

Chris

Just thinking about the correlated/connected pairs. If you try and find pairs with no correlation, which I think would be difficult anyway, you may just choose a load of losing trades without the advantage of getting a few winning trades from the (discarded) correlated pairs moving the other way at the same time. I think you should accept a "mixed bag" with the assumption that the system is good enough to give more winners than losers over time.
regards
Andy