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PTT Method (Profitable Trend Trading) in Forex

Hi guys n gals hope your tradings ok, its a good thread kevinM with a very simple system. i do hope people dont start adding oher things as what to do to better it, i think if you intefere with your system they'll lose. i actually use a very successful simple system too but i'm sure but cannot be certain that i used something like KelvinM 's system a few years ago and equally proved successful. All i'm saying is dont change his system or keep it to your selves keep it simple, happy trading, happy days
A UNICORN IS FOR LIFE NOT UNTIL IT GIVES A BAD TRADE
Guys, I think a lot are missing Kelvin's point on TP. Here's a quote from page one:

"A way to Exit the Trade.

I use the previous bars high (in a down trend) and the previous bars low (in an uptrend) to exit all the trades I have open in a particular run.

Money management is a personal decision based on risk tolerance. Since this method can be used on any pair, it is possible to have numerous positions open. Because of this I only risk a half of one percent on any one trade. If I happen to have open 10 trades my total risk will be 5%. Of those ten positions 2-3 will enter nice long trends which will far more than make up for the stop losses on the other 7-8. "

You don't set a TP going in. If you get away from your initial 30 pip s/l you just keep moving your s/l to the previous bars high/low (depending on direction) and eventually the trend will reverse and take out all your entries. That will be your "TP" level.
[quote=behman8850;4927880]Hello Alto, Thanks for your reply. I already had two positions closed on gbp/jpy shorted at 124.16 TP 123.70 . It went till 123.49!!

that is a cool little strategy, i think i understand. For me, i want to try the PTT method as is.. just as Kelvin said it. I wish u continued pips,

alto

ps. I totally agree with what spyderman just said.. according to the PTT method, no TP is set initially. It's only after the trend takes price far enough in the right direction, then u simply move your stop to lock-in pips and let a turn in price/trend take u out.. NO REAL TP at all.
  • Post# 124
  • Quote
  • Sep 6, 2011 12:25am | Edited at 1:13am – Correction
Quoting billytt
Hi guys n gals hope your tradings ok, its a good thread kevinM with a very simple system. i do hope people dont start adding oher things as what to do to better it, i think if you intefere with your system they'll lose. i actually use a very successful simple system too but i'm sure but cannot be certain that i used something like KelvinM 's system a few years ago and equally proved successful. All i'm saying is dont change his system or keep it to your selves keep it simple, happy trading, happy days
Did you not read the first page? Kelvin stated, "You may wish to change or tweak or add or remove portions to fit your own liking."
And since Kelvin seems to have disappeared, I guess that's what we'll have to do. There are legitimate questions that have been asked to clarify how to handle certain situations that are not explained in the "rules" posts. I find very often that someone lists their rules for trading but leave out a lot of little details that they have learned by trading a system for a while, but don't think about them when following their main rules. And if you're not using it what do you care?

I ran a live backtest on the AUDUSD starting in Aug 2008 and ending Aug 2009 to cover the example where he says he made 6000 pips (which I'm sure are micro pips because it's a 5 digit broker, so really 600) and quite a few re-entry trades were missed by not using a Limit order, just before the trend took off again. In fact, 2 of the trades he points out, were actually stopped out, unless using a Limit order to get back in. Still, ended with a profit of 2.7% risking 1% per trade. Profit is nice but that's a lot of work for less than 3%. Maybe adding the limit order will improve that.

Edit: Oops, I thought I was risking 1% but in reality it was 0.1%!! That's a heck of a lot better! I'll post more results later.
I'm don't mind being smart, but I'd rather be RICH! WTFx.
yes you are right Ericjschroed i have slight recall problems but my point is its a good thread and i dont want other people intefering with add ons.i've just made a large amount on the chf being smashed to pieces using my own trade method plus an adaptation of kelvins system but i wouldnt dare say on his site what you should do, thanks for your info happy trading. hppy days
A UNICORN IS FOR LIFE NOT UNTIL IT GIVES A BAD TRADE
He also said he's just now starting to trade this system live so that's why he didn't have a lot of live trading stats. Also as he trades live he may come up with his own tweaks.
I just finished running same backtest as before but using limit orders to reenter if the first order was stopped out at initial SL, but the current price was above the initial entry. It only seemed that 1 time the limit order was not stopped out but it was good. Risking 1% again per trade resulted in a 40% return over 1 year. On 1 pair. So now I have to try some other pairs and maybe more current. I also did NOT use any short Sundays as entry, since I consider it a fake IB. Also did include the spread for SL and order entry.

Anyone else doing any testing?
I'm don't mind being smart, but I'd rather be RICH! WTFx.
Don't see any new IBs so I'm on the sidelines
Quoting ericjschroed
I just finished running same backtest as before but using limit orders to reenter if the first order was stopped out at initial SL, but the current price was above the initial entry. It only seemed that 1 time the limit order was not stopped out but it was good. Risking 1% again per trade resulted in a 40% return over 1 year. On 1 pair. So now I have to try some other pairs and maybe more current. I also did NOT use any short Sundays as entry, since I consider it a fake IB. Also did include the spread for SL and order entry.

Anyone else...
Not to stir up anything but just for clarity, it was actually 6000 pips, though be it rare, this was during the financial crisis of 2008. Several currencies showed that type of magnitude. I can remember the GPB/JPY during that time was almost untradable intraday due to the violent swings in price.
Quoting ericjschroed
I just finished running same backtest as before but using limit orders to reenter if the first order was stopped out at initial SL, but the current price was above the initial entry. It only seemed that 1 time the limit order was not stopped out but it was good. Risking 1% again per trade resulted in a 40% return over 1 year. On 1 pair. So now I have to try some other pairs and maybe more current. I also did NOT use any short Sundays as entry, since I consider it a fake IB. Also did include the spread for SL and order entry.

Anyone else doing...
Eric,
I started live on Sunday with 3 entries, all of them stopped out. I think your are right regarding Sunday candles, I will omit them from now onwards. Pairs were CADCHF, AUDNZD (attached) and EURNZD. Anyway, very happy with my 30-pips SL.
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Hi all,

Well, I was getting a bit anxious after experiencing 6 SL's in a row, but it looks like I finally caught some good trades. I saw that these two pairs were on the move and it didn't look like they would slow down for an IB to form anytime soon.. so, I got impatient and put in some stop orders well in front of price (about 50 pips in front). The results are that I am in some profit now.. finally.

As a side note, there must've been some news yesterday that caused a big price spike in ej that ate up what looked like a strong trend move and hit my SL. Guess that's typical market action..

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Quoting alto
Hi all,

Well, I was getting a bit anxious after experiencing 6 SL's in a row, but it looks like I finally caught some good trades. I saw that these two pairs were on the move and it didn't look like they would slow down for an IB to form anytime soon.. so, I got impatient and put in some stop orders well in front of price (about 50 pips in front). The results are that I am in some profit now.. finally.

As a side note, there must've been some news yesterday that caused a big price spike in ej that ate up what looked like a strong trend move...
If you can't stand 70% losers, then this is not the system for you. And jumping in a trade because you're impatient will win a few and lose a lot.
I'm don't mind being smart, but I'd rather be RICH! WTFx.
Quoting ericjschroed
If you can't stand 70% losers, then this is not the system for you. And jumping in a trade because you're impatient will win a few and lose a lot.
Eric did your backtesting show a 70% loss rate with this system??
Guys Today we will have a beautiful IB on eur/usd. Go long at 1.4148 TP atleast 50 pips. and Short at 1.3986. Good Luck. Tell me your results tomorrow.
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Taken a short usd/jpy at 77.24 TP 76.50.
An IB today on this.
Good Luck all.
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Quoting behman8850
Guys Today we will have a beautiful IB on eur/usd. Go long at 1.4148 TP atleast 50 pips. and Short at 1.3986. Good Luck. Tell me your results tomorrow.
I am already Long at 1.4088 Tp 1.4185.
Quoting behman8850
Taken a short usd/jpy at 77.24 TP 76.50.
An IB today on this.
Good Luck all.
Slight divergence as well---might be worth a shot
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Quoting ericjschroed
If you can't stand 70% losers, then this is not the system for you. And jumping in a trade because you're impatient will win a few and lose a lot.
Hi all,

yeah, I've never done much manual trading.. been an EA guy for the last few years.. anyway, I was just trying to express the slight concern I got when seeing so many losses.. right away.. in a row.. and I was mistaken, it's 8 losses, not 6. (what's that about 80% losses?) No, I am in it for a good trial of this system, and I do have faith that it will all pay off.. eventually.

I've been trading fx long enough to know that a couple weeks worth of losses (acceptable losses, not like account bust) is to be expected and it's the overall results that count. (IMO, a 3 month period is a good mark of a system's potential)

About the jumping in a trade thing.. I strongly think that setting a pending order 50+ pips in the trend direction (trend found through visual analysis) just outside previous S&R is far from simply 'jumping in a trade'.. also, I don't consider myself or anyone who makes a trade (even if it's just setting PO's) at a rate of 1 or less per day (as my record so far is 10 trades in 10 days), an impatient trader. I think that its just the way I write sometimes, I try to be light and with some humor at times, that made it sound as if I was some newbie jumping into a trade just bcuz I got impatient. We'll see, if those 2 trades pan out or not. (still in both now)

alto
Quoting KelvinM
Overall Philosophy:

....

It is extremely important that you be assured that your method of trading has a positive expectancy. This is especially true in trend trading, for in order to ride out the whip-saws we must be confident that the next trend is around the next bend, and when I get on the trend it will make up for all the losses and then some.

Therefore, the method we trade must be a sound trading methodology which flows out of our philosophy of trading. While I am a strong proponent of discipline in trading, too much is often...
It's rare to see methods posted on FF where expectancy is ever mentioned. Thank you for putting this point across so well. I also use Oanda and will be forward testing with 1 unit per trade for a few months across the following pairs/crosses. Thank you for sharing your ideas.
Attached Image
Any successful trades last night? I was away from my computer and skipped a day.
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