Teodosi's Simple System

[Frederic]

Maybe you should reduce SL

I noticed that GBP/JPY Likes ,00 and ,50 levels. Keep going and posting, finally you find the right settings.

But if I reduce the SL it will even more likely be hit. What I do notice however is that when a profit DID happen it could easily have been more than 100 PIPS, sometimes even 200. But I'll stick to these rules for now as changing a system as soon as you get a few striking losses is exactly what is usually not advised. I think the reason the system failed me these few weeks is because the pair has a strong trend rather than a range.

[Frederic]

Why GBPJPY? Probably because it has highest ATR of the major. That also means price can hit 100 pips SL faster than any other majors.

Exactly.

The system uses market orders. It is usually regarded an advantage to use pending orders and high or low of last bar as entry levels. If price moves against you just after you entered the order the order will not fire.

Can you explain why pending orders are better? I mean as soon as the market price reaches the price set in the pending order then it gets turned on in a market order anyway.

The system can be improved by fractal analysis (putting together several timeframes), but that is not explained.

Care to explain that also or is this rocket Science? LOL

[Frederic]

Looks like I missed a beautiful short trade a few hours before. One problem with this strategy is that the time at which an opportunity arises is not always the same. (as with most end of day strategies I suppose)
But I noticed there was also one false signal and then another beautiful uptrade. Maybe more food for thought in favour of a higher TP than 100 PIPS?

[Frederic]

The reading depends upon timeframe.

Knowing that even if price is approaching oversold on H1 it has to be considered overbought on D1 is important. It tells us if we go long we are running the risk of being on the wrong side of a downmove on higher timeframe.

"Fractals are a suggestion of reversal among larger market movements"

kjell

Seems very interesting and I definitely had a gut feeling that all time-frames matter, which is why I always post 3 of them whenever I enter a trade so that maybe after a while a user could spot a pattern to explain why the system worked or not. Do you think the higher TF takes precedence over the lower ones or vice-versa? Or is even that totally random, which would in fact prove that technical analysis is a pseudo-science. (I hope it isn't or we'd be wasting our time testing out systems LOL)

[Frederic]

Last trade: TP 100 PIPS yay finally a winner. Was too late for a possible long trade.

[Traveller]

Thaks for indicator, Rom

Are there any guidelines to it? I think I can guess what it tells, but some instructions would do better

[Frederic]

Or one can create a special MT4 indicator as filter

How does it work? What are the valid entries according to Teodosi system and which aren't?
A few snapshots won't hurt either LOL.

[Frederic]

How does it work? What are the valid entries according to Teodosi system and which aren't?

I will post research when finished (in two months?). As we can see in http://forums.forex-strategies-revealed.com/the-glass-forex-trading-account-t335.html RM - Risk Management; MM - Money Management; MFTA - Multiple Time Frame Analysis (fractals) are core problems in trading
kjell

OK no problem. Will wait till you are ready.
In the meantime here is my current trade based on TSS

short 1 lot @ 136.23 with the usual 100 PIPS TP/SL

[Frederic]

Ouch I nearly came too late to close a trade with a few PIPS of profit as there was a low only 4 PIPS short of my original TP target.
Now there is almost an opposite trade in the working.

[Frederic]

I missed a very beautiful trade here. Would have potentially yielded 150 PIPS although I'd have had my usual TP @100 PIPS