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-   -   Does this simple system by Richard Donchian really work? (https://www.forexfactory.com/showthread.php?t=329441)

mrhb30jr Dec 4, 2011 1:50am | Post# 1

Does this simple system by Richard Donchian really work?
 
2 Attachment(s)
The 4 Week Rule
The 4 week trading rule system has been at the
heart of many successful trading systems and is
one of the simplest, easiest and most profitable
ways to trade trending markets.
The Rules
The original rules were used for trading
commodities and can be summarized by:
1) Close short positions and go long whenever the price exceeds the highs of the previous 4
calendar weeks.
2) Close long positions and go short whenever the price falls below the lows of the previous 4
calendar weeks.
If run with a SAR (stop and reverse), the above system will always maintain a position in the
market (either long or short).

Filter : 5SMA, Apply for Open and 5 SMA Apply for Close

@ Entry 2PO, SL > 5 SMA line SELL and above 5 SMA line BUY, TP1 = SL/Risk and TP 2 the new 2 week low for short entry and 2 new week high for Long.....

This simple system can working for all trading?????
Please provide your feedback about this system that is packed with as simple and could also with these simple systems can be run and managed well in trading currencies today, give your feedback and your opinion in a forum to exchange opinions. before and after I thank you,
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enivid Dec 4, 2011 3:35am | Post# 2

It will work in trending markets, but will get whipsawed by the ranging markets.

mrhb30jr Dec 13, 2011 9:31pm | Post# 3

2 Attachment(s)
It will work in trending markets, but will get whipsawed by the ranging markets.
hi enivid,

thanks for your advised,
i have put 5sma open price and close price as the filter for two week observation by using RD 4 week Rule
and the result very interesting, for GU and EU, all of SL above/Below this 2 line 5SMA open/close, enclosure the sample of the chart of EU and GU , just have the look at the SL point and the entry point ..
and i don't see any whipsawed if we using on the weekly TF ....

@ Entry 2PO, SL > 5 SMA line, TP1 = SL/Risk and TP 2 the new 2 week low for short entry and 2 new week high for Long.....


cheers
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mrhb30jr Dec 14, 2011 12:33am | Post# 4

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Here another sample buy entry on USDCHF .....
simple to using the RD 4week rule ....

cheers
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errich fx Dec 14, 2011 12:38am | Post# 5

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check this chart , ... is it right ?
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easy robot

mrhb30jr Dec 14, 2011 12:47am | Post# 6

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check this chart , ... is it right ?
Attachment 855757

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easy robot
here 4 week calender, 4week Previous Low ..... Rule No 2
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mrhb30jr Dec 14, 2011 1:43am | Post# 7

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Enclosure Chart
USDLFX, since 3 week ago that i have been posting a sample chart of rule no 1 till now still valid to going long, interesting RD is only two rule of long and short ...

cheers
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mrhb30jr Dec 14, 2011 2:05am | Post# 8

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another sample of rule no 2 RD
Currency GBPAUD SELL set up
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tetis Dec 14, 2011 2:36am | Post# 9

could you please put another chart for buy position?

mrhb30jr Dec 14, 2011 2:54am | Post# 10

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could you please put another chart for buy position?
hi tetis,

Here the sample this week set up for BUY
USDCAD - SL/Risk 64 pips ....

Cheers
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tetis Dec 14, 2011 3:06am | Post# 11

thank you mrhb30jr

tetis Dec 14, 2011 3:18am | Post# 12

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is this a right setup for selling after break the 4 week low in aud ?
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mrhb30jr Dec 14, 2011 3:19am | Post# 13

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thank you mrhb30jr
hi tetis u welcome

usdnok ... buy set up.....
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mrhb30jr Dec 14, 2011 3:24am | Post# 14

is this a right setup for selling after break the 4 week low in aud ?
Hi tetis,

Pending PO SELL set up, on break out SL > 5SMA

cheers

tetis Dec 14, 2011 5:55am | Post# 15

thanks a lot

mrhb30jr Dec 14, 2011 11:06am | Post# 16

thanks a lot
hi tetis,
audusd .. short +50 pips

tetis Dec 14, 2011 12:32pm | Post# 17

Hi
yes but i took only 30 pips
whats about Nzd/usd?

mrhb30jr Dec 14, 2011 6:36pm | Post# 18

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Hi
yes but i took only 30 pips
whats about Nzd/usd?
NU also same when we in TP1 = SL, and TP 2 hold for 2 week new low
good luck
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mrhb30jr Dec 14, 2011 6:44pm | Post# 19

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is this a right setup for selling after break the 4 week low in aud ?
hi tetis aud up dated ..... tp1 hit now tp2 = 2WNLow
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mrhb30jr Dec 14, 2011 10:09pm | Post# 20

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Hi all,

GBPJPY - SELL Entry
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