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-   -   Simple Monday-Tuesday System (attached calculator) (https://www.forexfactory.com/showthread.php?t=976730)

4ecstasy Jan 24, 2020 11:48am | Post# 1

Simple Monday-Tuesday System (attached calculator)
 
3 Attachment(s)
I've been trading this system with some success, the Monday-Tuesday system (MoTu). My first post, time to give back to the community!
Pairs: I prefer GBP crosses. Probably any volatile pair.
Logic behind the system: The highs and lows of Monday and Tuesday often form the low or the high of the week.

Steps (see attached calculator)

  1. Find the highest high and lowest low of Monday and Tuesday.
  2. Enter it into attached calculator.
  3. Entry is set to 15% of the highest high.
  4. SL is set to 10% on the other side of the low for long; high for short.
  5. TP is set to 50% of the range.
  6. If trade doesn't open by the end of the week, delete pending orders.

For example, this week on GBPUSD.

  1. Tuesday formed the high; Monday the low
  2. I set a buy order at 1.31011.
  3. SL was 1.29495
  4. TP was 1.31617

I set a sell and a buy order on each pair. Once one order is opened, delete the other.
Buy order was opened on Wednesday and closed on Friday.

I've manually backtested it on GBPJPY, GBPUSD, GBPAUD for years and it looks good.
Attached is the Day of week indicator I found here on FF. I'd set the indicator to only show MoTu.

Problems

  1. If the trend is overextended, it can enter and then get stopped out. In those cases, only consider a pullback. So, the system needs to be refined to take into account the weekly and monthly ATR. If the weekly or the monthly range is already above average, the trade may fail.
  2. If the MoTu range is too small, you may not want to set a order that week or you may increase the entry percentage.

I'll try to post my trades here, once they close. Any advice would be appreciated.
Calculator.xlsx
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Day of week.mq4


kofix11 Jan 24, 2020 4:58pm | Post# 2

Interesting approach! I will follow coming months. What I don't like is R:R. Thanks anyway. Never thought about Monday and Tuesday in this sense!

4ecstasy Jan 24, 2020 6:45pm | Post# 3

1 Attachment(s)
Glad you like it, kofix11. One could try a 3:1 RR, but you'd wait to close out the trade. Or you could shorten the SL. In the calculator, just change the SL multiple to a negative number. Because I don't have an EA, I don't know if that would backtest well.

Notice below GBPUSD the previous week.
Entered long at 1.30585. TP at 1.31040, 45pips.
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Beren Jan 25, 2020 1:39am | Post# 4

Interesting, have you tested it with a EA?
Regards and thanks!

mbednarz Jan 25, 2020 5:34am | Post# 5

Glad you like it, kofix11. One could try a 3:1 RR, but you'd wait to close out the trade. Or you could shorten the SL. In the calculator, just change the SL multiple to a negative number. Because I don't have an EA, I don't know if that would backtest well. Notice below GBPUSD the previous week. Entered long at 1.30585. TP at 1.31040, 45pips. {image}
Hello man!

How long do you trade with this M-T system? Is it profitable for you in long term ? :-)


Thanks in advance for the answer!

4ecstasy Jan 25, 2020 10:18am | Post# 6

Interesting, have you tested it with a EA? Regards and thanks!
I haven't tested it with an EA. If someone is willing, we'd all love to see it! I'd like to be able to incorporate other ideas, also.

4ecstasy Jan 25, 2020 10:20am | Post# 7

{quote} Hello man! How long do you trade with this M-T system? Is it profitable for you in long term ? :-) Thanks in advance for the answer!
To be frank, mbednarz, I haven't tested it long term. I've only been trading it this year. But the rules are clear enough and it's easy to backtest manually. It just takes a long time.

4ecstasy Jan 25, 2020 10:23am | Post# 8

1 Attachment(s)
Another trade on GBPUSD. Short on the 9th at the first orange line; TP on the next orange line. 75 pips
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4ecstasy Jan 25, 2020 2:04pm | Post# 9

1 Attachment(s)
GBPAUD last week, 70 pips.
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Name: Screenshot1.png
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4ecstasy Jan 25, 2020 4:45pm | Post# 10

Manually tested January 2019; GBPUSD, GBPAUD, GBPJPY, GBPCAD
Total Pips: 961
[Just glancing at February, it's not as good for sure.]

GBPUSD: 252
Wins: 3; Losses:0 (I broke even on the final trade of that month and it went the other way.)

GBPAUD: 394
Wins: 3; Losses:0

GBPJPY: 164
Wins: 2; Losses:0

GBPCAD: 151
Wins: 3; Losses:1

GBPCHF and GBPNZD are similar.

jpfalls Jan 25, 2020 4:53pm | Post# 11

I'm following this very interesting approach and will be testing it. Thank you for sharing!

toddanderson Jan 25, 2020 5:12pm | Post# 12

I will try and search but their should be some type of breakout box indicator that would make things easier

4ecstasy Jan 25, 2020 9:51pm | Post# 13

Manually tested February 2019; GBPUSD, GBPAUD, GBPJPY, GBPCAD

Total Pips: 161

GBPAUD: 541
4 Wins; 0 Losses

GBPUSD:-203
2 Wins; 2 Losses

GBPJPY: -309
3 Wins; 2 Losses

GBPCAD: 132
2 Wins; 1 Loss

septell Jan 25, 2020 11:55pm | Post# 14

It looks very simple strategy and interesting. ^^

sheppy Jan 26, 2020 12:40am | Post# 15

What do you do if trade is still open at the close on Friday? Do you carry it over the weekend?

Beren Jan 26, 2020 3:30am | Post# 16

Im watching EURUSD and seems nice too

4ecstasy Jan 26, 2020 9:28am | Post# 17

What do you do if trade is still open at the close on Friday? Do you carry it over the weekend?
Sheppy, I carry it over the weekend. Often, I've found, it TPs early in the next week.

blamshakk Jan 26, 2020 9:39am | Post# 18

looks like a nice, simple system 4ecstasy, subbed. Can I ask about your trade explorer - is that a combination of this and/or other system/s?

thanks, blam

4ecstasy Jan 26, 2020 9:51am | Post# 19

looks like a nice, simple system 4ecstasy, subbed. Can I ask about your trade explorer - is that a combination of this and/or other system/s? thanks, blam
Ha, no, I've struggled like many. That system doesn't reflect what I'm doing now. I've never actually posted much on FF, although I joined in 2013. I'm just now giving more attention to actually trading and I think this system is fairly successful. I'd love to have an EA to do some serious backtesting; I've only done manual testing.

I'm looking forward to the end of Tuesday!

Slingshots1 Jan 26, 2020 10:17am | Post# 20

1 Attachment(s)
GBPAUD last week, 70 pips. {image}
CANT FIGURE OUT THE CALCULATION CAN YOU GUIDE ME ....is it the lowest of monday and the high of tuesday?You know Monday has its own high and low as well as Tuesday which of these do i use what i did as in the attached screenshot was i picked the high of Monday AND THE LOW OF TUESDAY i can also use the low of Monday versus the High of Tuesday But i did not arrive at your GO LONG figure. Rgds
Name:  HIGHESTLOWEST GBPAUD.PNG
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