Question to Advanced System #14 (Simple trading with Daily)

[Pendolan]

Drew,

Thanks for your comments. I am actually Central time. Although this week was looking very good I entered the trades today and the results were not promising. Trades for 20 May 2010 are:

EURUSD: +27.7
GBPJPY: -94.4
GBPUSD: -54.3
EURGBP: +26.3
GBPCHF: -55.7
USDJPY: -40
USDCHF: -19
AUDUSD: -39
USDCAD: -41.2
EURJPY: -82.7

TOTAL PIPS: -372.3

Total Gain/Loss for the week: +30 PIPs

Although the week ended with a positive return I think I am going to work a little harder to tweek the system. With the ratio at 1:1 the stops in some cases might be a little tight, not allowing for some retracement movement.

I am going to play with some indicators next week to tighten the entry point. Currently I just entered the buy sell at the Open of the Australian Market/Close of the NY Market. Basically between 4 and 5 PM Central time (this is when I get home from work).

I will continue to post next weeks results with what indoicators I am using. I would be interested in your results and wha time you are entering your trades.

[drew]

EURUSD: +59
GBPJPY: -41
GBPUSD: -47
EURGBP: +17
GBPCHF: -61
USDJPY: +25
USDCHF: +24
AUDUSD: +52
USDCAD: +157 (dumb luck I entered the T/p too high, I closed it manually, if I did it right I only should have made +40 pips)
EURJPY: -52

TOTAL PIPS: +133
I should have made only +16 pips Total Pips for the day according to the system.

I started entering trades on May 19th at 11:15pm EST and I didn't finish till Midnight. By May 20th 7:30am EST most of the trades were triggered and closed on T/P. Most of the negative trades came later in the day. I think its weird that your results today are so negative.

One other thing of note, while I was setting up the trades the GBP/JPY was jumping wildly and it hit the buy at 11:35pm and was stopped out by 12:35am, I thought I should have stayed away cause of how volatile it was.

I liked how simple this system is I hope there is something that puts it over the top.

Thanks!

Drew

[floflo]

Hi all,

Pendolan, I have experimented the original strategie with a "100 pips StopLoss" and I think that despite a short stop loss can be frustrating, its necessary to not set it too far, in order to have good results in the long time.
Its also necessary to accept that sometimes the retracement can ben done just "after" the stoploss, but that true that is frustrating.

[Pendolan]

As I am only trying to grab 25% of the total Upward or Downward movement of the candle for the day, and the fact that I cannot predict which direction the movement will start towards, it has caused my trades to be triggered and then the SL is hit shortly afterwards as the candle retraces in the opposite direction.

I went back and looked at the hourly chart for each trade and found, had I planned my entry a little better I would have hit TP on 8 of the 10 trades for the disaster that befell me on thursday.

I am confident that the strategy is sound, however my employment of it was erratic. So I will be using two indicators to assist me on when to place the entry of the trade. I will use a TSI (True Relative Strength) Indicator to show me when the currency is over bought or oversold and a MACD to provide me with an indication on the direction of movement.

I backtested all my trades for the week and the results were encouraging. I will post the results for next week and pay homage to the Currency Gods, may they favour my efforts.

[Pendolan]

I have started a journal named "Pendolan's Journal" for anyone that wishes to continue following the results of this trading system. All future posts regarding this system will be located in the Journal's Forum in my new journal.

I have also attached Version 3 of the spreadsheet there with some fixes to the calculations that I noticed were not correct on version 1.