I have been trading Advanced System #14 and posting my results in the Forum for trading strategies. As this is probably not the best forum to post the results I hae decided to open this journal for anyone who would like to follow the ups and downs of trading this system with a live account.
I opened a live Micro account with FXCM on 14 Apr 2010 with an initial deposit of $1000 USD and have traded several different strategies, and to my chagrin I am down about $300 USD to date.
However, I came across a strategy that looked interesting and showed some promise ("Advanced Strategy #14) and dove right in. The first week of trding this system cost me dearly as the ratio was 1:2 and any positive results were son engulfed by the loses. I believed that there was merit in this strategy and it's simplicity and therefore modified it to suit me. I redid some of the calculations and lowered the ratio to 1:1.
I have again modified the system to include entry time to minimize the retracement losses I suffered last thursday. For those that are interested please feel free to leave your comments or ask questions, I will do my best to answer them in a timely manner.
So last week looked very promising indeed, I was up about 400 PIPs before my black thursday where almost every trade was stopped out. Although I was still left with a gain of +30 PIPs I could have produced better results with a little patience and planning.
I am a working man ad therefore cannot watch the computer all day long, nor of course do I want to. Therefore when I came across this system it seemed to meet what I was looking for. I enter all my trades between 1600 to 2400 Central Standard Time (GMT -6). This means my trades are entered at the open of the AUD market and are summed up at the close of the NY Market the following day.
So for this week (24-28 May 2010) I will use this system but will employ 2 indicators to assist with the entry timing. Previously I entered all trades as soon as I returned home from work (around 1630 Central Standard Time) and then closed the platform, made a drink and watched a little TV. The next morning (0600 CST) I checked to see how things were doing. In all cases (except black Thursday) almost all the trades were closed with a nice little profit.
So I was thinking "Wow" this just may be my Holy Grail. I am actually glad that my Black Thursday occurred. It showed me I wasn't quite there yet and I may need to work just a little harder to get the results I want.
So for all of you that have shown an interest in this trading strategy, I will continue to post my results here for you to follow. I have also attached my newest spreadsheet Version 3 for the strategy. I made a couple of minor adjustments to the calculations to tighten the TP a little more.
On Version 1 the calculations provided you with a BUY or SELL trade with entry point, TP and SL based on the probability that of the previous days movement upwards or downwards. I have changed this to provide the EP, TP and SL based on whether the Daily Average Movement was greater than or less than the Actual previous days movement. What this does is provide the EP, TP and SL based on the smaller amount of PIPs. This should increase the probabilty the your TP will be hit.
For all that would like to try this system I encourage you to follow this journal and see the results applied to a live account. It is a strategy in development and although I am confident that I can "massage" it into a profitable system it is still a work in progress. If you want to try it I recommend that you try it "only" on a demo account. I have left the data for May on this spreadsheet as I pulled it from FXCM.
I traded on a demo account for 6 months before investing real money into the market. My initial $1000 deposit is so that I can teach myself money management. With the demo account emotions were never part of the equation because it it was "fake" money. If I lose this $1000 it will certainly not break the bank for me, however emotions are playing into my trading beause "I don't like to lose".
So that is it for now, I hope you all enjoy your trading experience and if this system pans out you make a lot of money.