[TEB63]

3 ducks system
{Link Removed}

Firstly I would like to say, I did not reinvent the wheel with this system, I have just added one or two ideas to a 60 period simple moving average (sma) to make it my own and named it "The 3 Duck's Trading System" for obvious reasons as you will find out later on. The system is fairly straight forward and easy to use. Like a lot of trading systems it will be more productive when prices are moving in one direction and not stuck in a tight trading range. Of course this system has losing trade and losing runs, but with proper money management and good discipline I'm sure this system will keep you out of bad trades and give you a great chance to make profits in the Fx market. One of the nice things about this system is it will quickly tell you if prices are in an up or down swing phase and stop you from guessing! It will also allow you to decide to be a bull or a bear and trade in the direction of that trend. There are 3 charts involved in this system: a 4hr chart, a 1hr chart and a 5min chart. There is 1 indicator, a 60 period simple moving average (60 sma) plotted on each chart. There you go, its that simple.

How it works:


Step 1 - First Duck

The first thing we need to do is look at our largest time-frame (4hr chart) and see if current prices are above or below the 60 sma. From this chart we can see that current price is below the 60 sma. This tells us that we maybe looking to sell.







Step 2- Second Duck
The second thing we need to do is drop down to our 1hr chart. We need to see the current price below the 60 sma on this chart also, this gives us confirmation.
Important: If the current price was to be above the 60 sma on this chart we could not move on to step 3.



Step 3 - Third Duck
From step 1 and 2, current prices need to be below their 60 sma's on each chart. We are now on the 5 min chart and we are looking to sell when price crosses below the 60 sma. For extra confirmation we should let prices break the last low on the 5 min chart. This would mean that prices will be below their 60 sma on all 3 time-frames, therefore all 3 Ducks are lined up in the same direction.


Stop-Losses: This is where you can make this system your own. If you are a short term trader you may want to put your stop-loss above the highs on the 5 min or the 1 hr chart. If you are more of a positional trader you may wish to put your stop-loss above a high on the 4 hr chart. You could also use a fixed stop-loss, maybe 25-30 pips or more from entry. It all depends what type of a trader you are, so you decide! If you are a longer term trader or investor, this system can help you get a good entry point into the market. Another "trick" that may help you preserve capital, If you do sell and prices get back above the 5 min 60 sma by 10 pips (not a good sign) you may want to cut your losses short before your stop-loss. But if you are a longer term trader this may not be a big deal for you.


Targets: Same again, depends what type of a trader you are but target can be support or resistance levels.


Summary: The above example was carried out when the gbp/usd was trading lower so obviously we where selling - the system works just as well for buying opportunities, just look for prices to be above the 60 sma on all 3 time-frames, starting with step 1 again. I like this system a lot as it does not try to out-guess the markets movements and pick tops and bottoms. The system will quickly tell you to be a buyer or a seller. Its a good honest system that tries to follow prices. This system works better on currency pairs such as the Eur/Usd and Gbp/Usd, but there is nothing stopping you from plotting this system on any pair, but as we know some pairs act differently to others. The best time I found for trading this system is the European and US sessions. I lke to use this system as a guide in addition to my own market knowledge. Take care to watch what is going on around you - economic new releases, holidays etc.

by Captain Currency


I would add 2 rules
1. I would Exit when the 5 min SMA crosses back over the candles
2. also I would only enter with the right candle -ie up candle up etc

TEB

[et_phonehome_2]

This setup is on TSD forum also...

[nklin88]

hi, i think is good for filter out bad trade and bad days...

[TEB63]

the Eur i was just playing with it



Big Blue line is up trend on the hour
only up with chandle



big blue line is from the hour
thin blue line is from the 15 mins
only up with candle


blue arrow is up
only wit hhte candle
"X" are out

all winning trades but a small loss right in the middle

TEB

[TEB63]

A good filter might be Stoch 20-9-9
only go with it to confirm buy ins
ie. the purple area is a no trade

also use it for other entery points when it waves with way 60 sma
and exit points as well

teb

[TEB63]

I think better then the stoch
use a 4 hour channel & only go with it
you will have fewer trades but it will filter most of the bad ones

TEB
(can you tell I am home sick and borded! again today)

[billbss]

I've been trading this for several weeks.
I think if you start filtering it, you mess it up. It's a good system, just like it is.

[bonzdoc]

Hi everyone,

I am just curious for those of you trading this system with a live account what pairs you are trading and how many pips on average you are making per week? Thanks!

[billbss]

Originally Posted by bonzdoc

Hi everyone,

I am just curious for those of you trading this system with a live account what pairs you are trading and how many pips on average you are making per week? Thanks!

I haven't kept track of it. It works on any pair.

I picked up 98 pips on GBP/USD within the last 4 or 5 hours, with an initial 24 pip SL.

There is an indicator posted on another forum that puts the 5M, 1H, and 4H on the same screen. It makes it easy.
I don't post links to other forums, but if you poke around you can find it.

[bonzdoc]

Originally Posted by billbss

I haven't kept track of it. It works on any pair.

I picked up 98 pips on GBP/USD within the last 4 or 5 hours, with an initial 24 pip SL.

There is an indicator posted on another forum that puts the 5M, 1H, and 4H on the same screen. It makes it easy.
I don't post links to other forums, but if you poke around you can find it.

Billbss,

I sure appreciate you answering my questions not only about this trading system but others I have asked about as well! This system is simple like a few others I am using. Thanks again and thanks to TEB63 for posting this system here.

[edge540]

Put all MA's on the 5min chart, no need to down load indicators.
1. 60 sma 5min chart
2. 720 sma (represents 60 sma on 1 hr chart)
3. 2880 sma (represents 60 sma on 4 hr chart).
I've been using this for a while in conjunction with TKimble's "daily wealth building strategy" works a treat.
Don't ask for statistics, all I'll say is that using these simple methods has turned my trading from constant loss to regular profit (i.e my account is growing not shrinking away).
I've only been at this game for 18 months but have noticed that there is a big swing to simple price action methods on most site forums I look at.

[belekas]

So anybody trade this system? Post some replies if you do
Thanks!

[jamesbond007700]

thanx teb, for bringing it to our attention.

[TEB63]

Originally Posted by edge540

Put all MA's on the 5min chart, no need to down load indicators.
1. 60 sma 5min chart
2. 720 sma (represents 60 sma on 1 hr chart)
3. 2880 sma (represents 60 sma on 4 hr chart).
I've been using this for a while in conjunction with TKimble's "daily wealth building strategy" works a treat.
Don't ask for statistics, all I'll say is that using these simple methods has turned my trading from constant loss to regular profit (i.e my account is growing not shrinking away).
I've only been at this game for 18 months but have noticed that there is a big swing to simple price action methods on most site forums I look at.

what other things can you tell us
ie. exiting what are your rules
TP SL etc-
do you use candles formations tails S/R etc
any things you have learn about?

not sure it matters but the 3 on one chart are not quite the same as on their own charts also you don't get to see the candles on the charts

thanks

TEB

[aelimian]

Originally Posted by TEB63

3 ducks system
http://captaincurrency.blogspot.com/


Firstly I would like to say, I did not reinvent the wheel with this system, I have just added one or two ideas to a 60 period simple moving average (sma) to make it my own and named it "The 3 Duck's Trading System" for obvious reasons as you will find out later on. The system is fairly straight forward and easy to use. Like a lot of trading systems it will be more productive when prices are moving in one direction and not stuck in a tight trading range. Of course this system has losing trade and losing runs, but with proper money management and good discipline I'm sure this system will keep you out of bad trades and give you a great chance to make profits in the Fx market. One of the nice things about this system is it will quickly tell you if prices are in an up or down swing phase and stop you from guessing! It will also allow you to decide to be a bull or a bear and trade in the direction of that trend. There are 3 charts involved in this system: a 4hr chart, a 1hr chart and a 5min chart. There is 1 indicator, a 60 period simple moving average (60 sma) plotted on each chart. There you go, its that simple.

How it works:


Step 1 - First Duck

The first thing we need to do is look at our largest time-frame (4hr chart) and see if current prices are above or below the 60 sma. From this chart we can see that current price is below the 60 sma. This tells us that we maybe looking to sell.







Step 2- Second Duck
The second thing we need to do is drop down to our 1hr chart. We need to see the current price below the 60 sma on this chart also, this gives us confirmation.
Important: If the current price was to be above the 60 sma on this chart we could not move on to step 3.



Step 3 - Third Duck
From step 1 and 2, current prices need to be below their 60 sma's on each chart. We are now on the 5 min chart and we are looking to sell when price crosses below the 60 sma. For extra confirmation we should let prices break the last low on the 5 min chart. This would mean that prices will be below their 60 sma on all 3 time-frames, therefore all 3 Ducks are lined up in the same direction.


Stop-Losses: This is where you can make this system your own. If you are a short term trader you may want to put your stop-loss above the highs on the 5 min or the 1 hr chart. If you are more of a positional trader you may wish to put your stop-loss above a high on the 4 hr chart. You could also use a fixed stop-loss, maybe 25-30 pips or more from entry. It all depends what type of a trader you are, so you decide! If you are a longer term trader or investor, this system can help you get a good entry point into the market. Another "trick" that may help you preserve capital, If you do sell and prices get back above the 5 min 60 sma by 10 pips (not a good sign) you may want to cut your losses short before your stop-loss. But if you are a longer term trader this may not be a big deal for you.


Targets: Same again, depends what type of a trader you are but target can be support or resistance levels.


Summary: The above example was carried out when the gbp/usd was trading lower so obviously we where selling - the system works just as well for buying opportunities, just look for prices to be above the 60 sma on all 3 time-frames, starting with step 1 again. I like this system a lot as it does not try to out-guess the markets movements and pick tops and bottoms. The system will quickly tell you to be a buyer or a seller. Its a good honest system that tries to follow prices. This system works better on currency pairs such as the Eur/Usd and Gbp/Usd, but there is nothing stopping you from plotting this system on any pair, but as we know some pairs act differently to others. The best time I found for trading this system is the European and US sessions. I lke to use this system as a guide in addition to my own market knowledge. Take care to watch what is going on around you - economic new releases, holidays etc.

by Captain Currency


I would add 2 rules
1. I would Exit when the 5 min SMA crosses back over the candles
2. also I would only enter with the right candle -ie up candle up etc

TEB

"For extra confirmation we should let prices break the last low on the 5 min chart. This would mean that prices will be below their 60 sma on all 3 time-frames, therefore all 3 Ducks are lined up in the same direction"

Please elaborate on this. Is it the low or high of the last 5 min candle or low or high of the last 5 min wave?

Thanks