Advanced system #14 (Simple trading with Daily range)

Hi Stuart, Can you please inform about the results you have derived so far from this strategy?
Regards,
Fahad, KSA

Hi Jason,

TP is set to 25% for a reason:
Currency pairs are able to move certain number of pips per day; we calculate the average daily move to anticipate the range for the next day, let's call it 100%

Your entry position is activated when price covers the first +25%.
By setting a TP to 25% we make sure that it has the best chance to be reached, because this would mean that price needs to move only 50% of its daily range to satisfy our demands.

You can set TP to +50% and if it's hit by the end of the day - great, if not - you can always close a position manually and take what's available.

Best regards,
Edward

Hi everyone, Ive got a question. I tried this method of trading. but i still couldnt get as many as 100 pips a day. I also seen many post the result of their trading, some with up to hundreds of pips. i only set TP 25% from where i enter position. why is this so? should i remove TP and close it manually? I only see the chart once a day =(

Winning and Happy Trading!
Jason

Hi,

Quote: "Right so far?"
Answer: Yes, it is right.

For trends you can use EMAs the way you've described, but also you can try CCI indicator set to 34, or 50.
Readings above zero would support buyers, below - sellers.

I use Pivot points calculated from midnight to midnight Eastern time.
There are other approaches, based on London close hours, but it is up to you to make a choice.

I've never heard the term "Fibo clusters" before, I don't know if they can be useful here.

Money management: you should use two sets of targets: 1st - where your Take profit level is at least the same as stop loss, but better a bit higher.
2nd - is the manual closing of all open orders by the end of the day, or before setting new entry orders the following day.
When you use Pivot points, you can align your first profit target with R3 or S3 level to give it a better chance to close out in profit should the level be reached. If those R3 or S3 levels are fairly distant from the entry points, you can close the entire position; if they are too close, close 1/2 of a position at R3/S3 level and the remaining run till risk=reward or till the end of the day.
You can anticipate a lot more and be able to set precise profit targets when you draw simple Support/Resistance lines: both horizontal and inclined (trend lines) on 4h, daily and weekly charts.

Best regards,
Edward

Hi Edward,

One or two questions and observations:
Still not clear about entry. You enter 25% above or below open or close for the previous day. If you can determine the trend using the 1H chart then just enter in that direction (to lessen risk). Profit Target is 25% of the prvious days range (or ADR), above or below the entry point. Set a SL of 100 pips or ADR(10). Right so far?

I use a fairly basic trading platform (Marktetmaker) with nothing like CoGs. Would a reasonable trend indicator be something like 5,13,50,200 EMAs all nicely fanning out on the 1H? What about the ADX? It always seems a bit behind to me. What adjustments be made to it speed it up?

Pivot Points: are they always best set at the London close? Always confused about that one. Would something like Fibo clusters be useful on Tahahashi's system.

Money management: Perhaps something like a daily 5% (about 20 - 25 pips)target would be reasonable. Or perhaps this is something more suitable to scalping since 1:1 stop-loss would be set at 20 - 25 pips. Obviously this system wouldn't be suited to a daily close system like Stuarts' or Takahashi's.

Hello mates,
Is anyone around here using the original strategy posted on this thread? I've been reading almost all the interesting post and notice that Stuart's strategy is not the topic lately.

Anyways Happy pips to all

Jerry

Hi Takahashi,

first of all thank You for sharing your strategy and thanks Edward too that enables all to improve their knowledge.
I'm trying to improve Your strategy and I've some questions about.
- You say that price must to came back to pivot point within 48 hours (or something more): is this true for any currencies or just for GBP/JPY that You have studied?
- so You leave open Your orders more that 24 hours: what about on Friday? Do You leave open Your orders till next Monday or You close everything waiting for next week?
- You focus 300 pips maximum far from pivot point as farthest point to place Your orders: How do you calculate this numbers? Is it from empirical observations on GBP/JPY currency or what else?
The last one question….please be patient!
I’ve seen that someone has tried to improve your strategy starting from pending orders like BUY/SELL – STOP but if I’ve understood well your strategy is based on pending orders like BUY/SELL LIMIT. What kind of pending orders do you use in Your strategy exactly?

Thanks a lot in advance and anyway

Daniel

Any comments and developments can share with me by email.
loureiros(at)iol.pt
Thanks

Isac,Portugal

I'm looking for safely strategy that could give me 150-180 pips per month.
Here is something similar to takahashi's strategy from different forum base on resistence/support :

"GO SHORT AGAINST BULL TREND
Short resistance 1 (for 5-10 pips) high risk cuz resistance 1 often breaks easily
Short resistance 2 (for 10-15 pips) low risk if fundamentals not strong enough - success rate 90%
Short resistance 3 (for 15-25 pips) extreme overbought level offer good shorts

average earning per day 20-30 pips both in eur/usd and gbp/usd pair
SL 70 pips
500 pips a month = max 350 pips loss and 150 pips profit
so 150 pips a month net profit

Note: if resistance breaks then dont close your position, next resistance often come after 40-60 pips short again and pair likely to come back near previous resistance. So you may not loose 70 pips, if you accept loss of 10-20 pips on fall back i-e near to previous resistance where you have shorted earlier.

AND FOR LONG vice versa buy support and go against bear trend".

Alex

hi,Takahashi.I`m interested in your strategy,but I think that we can calculate the average daily range and post pending limit orders with fibonacci parameters in daily range.
Example: if the daily range is 200 pips and the pivot point is 143.40 we calculate the 38,2% retracement of daily range,so 38,2% of 200 pips is 76 pips,so we put buy pending limit order at 144.16 and sell pending limit order at 142.64.we calculate fibo retracements at 38,2%,05 and 61,8%.
Waiting your comments,thanks for all.
Sorry my english.

Isac from Portugal

Hello can somone please clear out what is the final stuart's strategy when to enter when to exit what indicators should be used what pairs have been the most profitable, i have read all the comments made here but the strategy keeps on updating and so would be great if somone can please explain the latest of it. Thanks

Regards Yanni

Hello Leo could you please give me an example of placing a trade using trailing stops, I always get confused with it not good at all when it comes to trailing stops. Thanks
KP

KP,

I would place a trailing stop of 20-40 pips when using Takahashi's strategy and still keep 50/80/100pips T/P levels, this way it may reduce some profitability but less risky under strongly trending market conditions.

Leo

Hello thanks for your response but i saw good come back on the buy order that i placed 300 points below the PP and i had almost made 90 pips but did not reach the TP and it again went back so is it a good idea to place a buy order or sell order 300 pips away from the PP and target profit 50 pips if not more i m early to say that but less profit less risk cuz i m not too sure if it will definitely climb back to PP and if that was the case all traders would be doing it yes we r smart people around here :) but there are thousands other who are like us neways thanks for your response once again and yes we need pros to look at it further. I am waiting for Edward stuart and Takahashi to comment on this strategy.

Thank have a nice weekend
Cheers
KP

KP,

I use modification of Takahashi's system with S/L 100 pips. So I lost 200 pips during last 2 days. I think trend should be involved. When it goes opposite direction there is a lot of chances that it bounce back to PP. But when it goes along with trend it could be very dangerous to play without SL. IMHO. May be somebody from pros could help us to build it properly.