Advanced system #14 (Simple trading with Daily range)

here it is kp

Back again I have attached a screenshot of the trade that I have placed on September 25th 2009.
KP

Hello, I am using Mr Takahashi's strategy on GBP/JPY. For me i m GMT (+10)i live in Sydney, & my broker is GMT (-4)I am with FXCM. So today in the morning at 7 AM sydney time I got a new daily candle on my chart and today is September 25th 2009, I then placed Pivot Point on my last candle that is for September 24th 2009 and these were the following results.

Pivot Point = 147.44 (High=149.535+Low=146.295+Close=146.505/3=147.44)

After getting the Pivot Point I placed my trades like this:
1. Sell pending order at 149.14 (147.44+1.70= 149.14)- Limit was placed at 50 pips
2. Sell pending order at 149.84 (147.44+2.40=149.84)- Limit was placed at 80 pips
3. Sell pending order at 150.44 (147.44+3.00=150.44)- Limit was placed at 100 pips

4. Buy pending order at 145.74 (147.44-1.70=145.74)- Limit was placed at 50 pips
5. Buy pending order at 145.04 (147.44-2.40=145.04)- Limit was placed at 80 pips
6. Buy pending order at 144.44 (147.44-3.00=144.44)- Limit was placed at 100 pips

Currently all my long (Buy)positions are open. I would like to know couple of things here:

* I am not familiar to Pivot points but it is easy to get the HLC and PP when the last daily candle is closed, taking my example from above I have 3 long positions opened at the moment so how am I suppose to know if they will all close in profit and reach TP of 50, 80 & 100 pips. As mentioned earlier by Mr Takahashi that :

(In my opinion currency usually does not move far more than 300 pips from the daily pivot point, it must return back to its pivot point
level within 48 hours or sometimes a little more.)

Does this mean that no matter what so ever happens GBP/JPY has to go to back to its Pivot point in 48 hours may be bit more but it will have to? what happens in case it doesnt go on to PP do we place stop loss here using this strategy?

I am very much convinced with the current trade that it can make good profit but still its the first day and i m learning more out of it. The only concern here is how can we decide if it will definitely go back to hit its Pivot point. What could be the reason behind it?

* Secondly if our trade doesn't reach Target Profit in 24 hours do we need to make any adjustments with it and if yes what can be done?

Mr Takahashi, Edward, Stuart please enlighten me with experience and knowlege. I am thankful to everyone here for the support and the strategies they have shared.

Thanks a lot
KP

Hello everyone, can somone please explain Mr Takahashi's strategy in more detail. The strategy seems to be promising and profitable but would be great if a example of it is given and if some more detail about the strategy can be obtained.

Thanks MVP

Hi Jose and MVP,

by the end of 24 period you have to close open trade manually accepting either loss or taking whatever profits you made.

Many trading pairs can be taken:
I've tested it on: EURUSD, GBPJPY, GBPUSD, EURGBP, EURCHF, EURJPY, USDJPY and AUDUSD.

COG indicator on 1 hour TF is our prime filter. Disregard 4 hour and 1 day COG. If you do want to align your trades with 4 hour and daily trends, use simple trend lines. Parabolic indicator would be fine, also HAMA candles could be helpful.

Regards,
Edward

Hello Edward, thanks again for your kind reply. Can you please tell me what are the other pairs that will work well with this strategy? and i tried making the column wide and it worked so many thanks for that too mate. To make it clear just look at the HLC from last 24 hours place it in the excel sheet and whatever data u get u place trade accordingly & with the COG we will be looking at the H1 chart to determine weather to go short or long for the day. I am clear till that point.

Sometimes i have experienced that H1 and D1 shows downward trend but H4 shows upward so what can be done than and do u think parabolic indicators would be of any use? what other indicators do you use to confirm that it is a downward trend? Thanks a lot

Today with EUR/GBP i have made 31 pips with a buy trade using this strategy but the H1 COG shows downward trend and so i still have a sell trade open.

Thanking you
MVP

Hello Stuart,
Hello Stuart To begin with I would like to thank you for this technique for us it is great, also I will to know what do you recommend if I get in to a trade and it takes over 24 hours to take me out of it. Should I close the trade, and place a new order or let it run until it hit the limits. An example I would place my trade at 6:00, than when I come back next. Day at six it is still running should I close it or let it run until it closes by itself, and just place the next trade the day following.
Thank you in advanced.

Jose Macias.

I checked.
The SL calculation is correct for both: Long and Shot positions in the last revised Excel sheet published on page 47.

Can we use the system to trade every hour? Possibly, although I can't be sure. I guess we would need an expert advisor for this purpose, otherwise we'll go crazy doing math and managing trades every hour :)

Another question to answer: how long will you hold to a trade, when you have a new one coming every hour?

Regards,
Edward

can i use this system every hour by count the number of 1 hour candle ?

please comment...
thank you..

Hi Edward, I think that the stop loss for the short positions in the latest excel spreadsheet is wrong. please let me know if I am right or wrong.
Thank you for all that you do here.

Hi MVP,

You've got everything correctly regarding the general calculation and entry rules.

SL for the Long position is available for September 18th, you just have to widen the Excel column a bit, and instead of ##### you'll see 148.810

COG indicator applied to 1 hour charts suggests trend direction, which means that instead of setting up both Long and Short trades for the day, you can, based on COG channel, set only one trade: COG channel up - only Long, COG channel down - only Short, which should give you an additional edge.

Regards,
Edward

Hello i want to try this strategy and i want to know if i m putting everything right here.
i m using GBP/JPY daily the HLC is for 18th September 2009.
High=150.033
Low=148.237
Close=148.371

According to the excel file i have placed my HLC and got the long and short positions
Long= 148.8200
TP=149.2690
sl= NA

Short= 147.9220
TP= 147.4730
SL= 147.9320

i will be placing both the trades before sydney market opens. I am not still clear with COG if that works with this strategy. So i will place both long and short trades and i will wait till one of the pending position is reached and i will than cancel the second position. According to this strategy and the way i will implement i dont get it what happens if i went on with a buy trade and later on the day closes in opposite direction. Do we have any other way to determine if we can only open sell or buy position.

I am thankful to the author of the strategy and thanks for helping me out.
MVP

Open daily charts and point your cursor at the daily candle, it should highlight the numbers for you.
(works on many platforms I tried)

Thomas

Hi everyone, I want to know how can i figure out what was last 24 hours High Close Low. can i use fibonacci from the highest point to the lowest point. thanks kris

Hi Takahashi,

ADR(10) - 10 day Average Daily Range. Just go to next thread 14-a you will find ready-to-go ADR_3.ex4 for metatrader:
http://forex-strategies-revealed.com/advanced/automated-sos-strategy
That could give you just little bit adjustment for current market volatility. Right now it is 172. I'd like to involve trend issue as well. If we go along with trend - AVG(10)*0.9 (SL 100, TP 45), AVG(10)*1.25 (SL 70, TP 70). Against trend - only one order - AVG(10)*0.9 ( SL 45, TP 45 ) double lot. I'm not forex expert but that make sence to me.