Modified Priscan

Ok, you can call this a modified Priscan system or maybe somebody already came up with this modified version, who knows. I am not posting for my own credit, just something I see and appears promising. Thanks to the priscan system for giving me a start.

Add 3 lwma and 15 lwma to Daily chart.. Set each to apply to medium price. Add parabolic sar to chart using default (or .02)

Whenever 3 crosses 15 if parabolic sar is in same direction as cross, take the trade.

This seems to work best with gbp/usd. I've noticed that the smaller time frames also appear to work for smaller profits but have more negative trades.

The below is data for gbp/usd only:
Stop loss should be >150 pips. Since it is based on Daily candles, any small disturbance in the market can result in an opposite move before going your way. The other great thing about 150s/l is brokers/banks can't chase your stops as easily.

I have noticed you can get at least 80 pips and up to 400 or 500.

I would shoot for 80, then use your discretion as to re-entering.


USD/JPY?
Current setup to watch now is usd/jpy. The past few days have looked crazy on the chart, but if you notice when it was time to buy last entry on 11/9, you would've gotten 73 pips before turn around and if you had 100 pip s/l on this pair, you'd still be in the buy as when the lines crossed down, the pbsar was still pointing up. Since today's cross is still playing out, it seems to be best to wait until a new day to open trade. However, yesterday's gbp/usd candle was also doing this and it worked out.

http://picnac.com/images/5681usdjpy%20111506.gif


Any suggestions for improvements are welcome. - l

Ok took the usd/jpy buy. Actually did it a few hours ahead of time to get the wednesday rollover interest. Hey, every little bit of help counts.

We'll see how it plays out. Only shooting for 80 pips, which is sometimes tough to get on this little monster. S/L 80 pips.

What have you been using for exits?

OOPS, I just saw you said 80 pips, sorry about that.

With a stop loss that big, you better be confident in your entry.

80 are not big Stop for daily trading.
I am afraid 80 are not enough for proper trading in big time frames.
Maybe leverage is about 3-5 x of account

Actually I said 150s/l on the gbp/usd, 80 on usd/jpy, but I hadn't backtested the usd/jpy. The true entry on the usd/jpy should have been 117.89, so 117.09 as s/l. What I am trying to determine is what an initial tp should be before a pull back or reversal. Looking at some prior usd/jpy data, seems as though inital tp should be 40 or so before pullback or a reversal (which in the other day's trade would've worked already), but I haven't backtested enough as I said.

Backtesting the gbp/usd since April (I think), once a cross occurs 70 tp would occur before a pullback / sl would possibly hit, then another run for a higher target or a complete reversal. Determining that is the hard part. Also, if a huge long candle caused the cross (>200 pips for the day) don't enter.

The only thing I am also noticing is that this truly is a conservative trading strategy, meaning there are very very few trades to take. The gbp/usd averaged 2 a month. Whether or not in forward testing it will always work for 70, is another issue. I'll keep watching and noting possible trades to see.