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  • Post #1
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  • First Post: Nov 6, 2008 1:26pm Nov 6, 2008 1:26pm
This is probably one of those "seemed like a good idea at the time" thoughts, but why not put a set of trade orders in the market at set intervals, with Take Profits at similar intervals, and just let the market run thru them like a row of Dominos?

The biggest problem that I have is taking profits; just never know when to get out, and this would seem to negate that problem as every trade would be pre-ordained.

And it seems to me that the goal of getting more pips would be easier solved by taking more contracts over shorter targets rather than trailing a stop on a single contract and going for the home run!

I guess this is a bit like the GRID trading that I have read about, except I would qualify it by saying just trade with the trend, especially when there is an overall powerful trend.

Any thoughts? Thanks, John
Canadian by birth Australian by choice
Yes, this is just a play on "grid trading". Trust me, people have done this and modified grid trading almost every way you can think of including only trading with the trend, using indicators to change your grid, etc.

I have never seen a grid system work out in the long run and I have been watching them for 4+ years now.

Dont lose hope though and keep on brainstorming ideas.
  • Post #3
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  • Edited 2:07pm Nov 6, 2008 1:56pm | Edited 2:07pm
My DEMO account went from $5,520 to $9,620 in the last few hours doing this, is why I asked; that was 42 winning trades (closed out 2 x $50 trades and the rest $100) and no losers, but could have been a lot more except I was out of leverage.

Next time I try this I will use a smaller lot size and be able to open the trades as per my theory, but then, you said it would not work......

Here are the screen shots when I started, using Alligator for trend, the 15 min and 5 min look OK, but the 1 min started going against me, but we know the overall long term trend for the EUR - USD is down.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: multi sell 15 min.png Size: 72 KB
Click to Enlarge Name: multi sell 5 min.png Size: 71 KB
Click to Enlarge Name: multi sell 1 min.png Size: 70 KB
Canadian by birth Australian by choice
Here are the results and a shot of Nov 4, where you can see that you would have to quickly change you mind about which =way to trade for that day, in spite of the overall trend.......
Attached Image(s) (click to enlarge)
Click to Enlarge Name: results 1.png Size: 93 KB
Click to Enlarge Name: results 2.png Size: 53 KB
Click to Enlarge Name: nov 4 = up.png Size: 11 KB
Canadian by birth Australian by choice
Hi guys,

It seems interesting, but I don't understand how to trade this method/strategy.

Snowmann can u clarify me the rules?

thanks.

Lubo
If I know how, I tell You!! Few but Good!!
This is trade stacking. I've done it a bit in my trading on well-defined trends. But the main issue is you need a way to deal with your dangler trade at the end of the run.
Congrats Snow Man.

Please remember that today's markets are creating huge moves, often with little retraces. Therefore grid trading with buy and sell stop orders like you are doing should do well.

The problem is, what happens when you have a few days or weeks of sideways price action that will trigger your entry orders and most likely stop you out.

Search this forum for Grid Trading and you will see many systems like this. Most start off with everyone making money and then read the last few pages where people start losing more money then they were making.
................ all I really did was, research the Overall DAILY trend of the EUR-USD, then I checked the lower time frames as you can quickly do using Meta Trader 4, 4 hour, 1 hour, 30 min, 15 min, 5 min.
I used the Alligator indicator with standard settings to confirm the down trend.
I never entered any trade directly, only by market order, while the 1 min chart was having an upward retracement, I placed Sell on Stop orders below the market price, as it when higher, I continued to place more orders.
Meta Trader only allows Take Profit at 10 pips from the entry, so that is what I used also, when the price turned around and continue the down trend, trades were entered and then stopped out as the TP's were hit.
I find that is much better than trying to second guess where the price will bottom out.........
Remember, anything can and will happen in the market, be prepared to change you view quickly or stand aside until you access the situation.
Probably more experienced traders can add the daily range, fibonacci, pivot levels, support & resistance levels, to warn of possible turning points.
Take what you can from it, hard and fast rules......
Canadian by birth Australian by choice
Quoting FrankTheTank
Congrats Snow Man.

Please remember that today's markets are creating huge moves, often with little retraces. Therefore grid trading with buy and sell stop orders like you are doing should do well.

The problem is, what happens when you have a few days or weeks of sideways price action that will trigger your entry orders and most likely stop you out.

Search this forum for Grid Trading and you will see many systems like this. Most start off with everyone making money and then read the last few pages where people start losing more money then they were making.
Frank,
Looking at my trades, the highest I entered was 1.2830, and the lowest exit was 1.2710, so I don't believe you need a huge range to make these trades work. See the chart, 10 days average moves are 379.
If you can read the results, you will see that many of the trades are taken at the same levels as the market retraces and then declines again.
My very simple understanding of grid trading is that orders are entered in both directions in the hope that the market will move up (or down) first in the daily range, and then move down (or up) thereby hitting both buy and sell stops? I only used short positions today.
I came up with this because I was sick of entering a trade and then seeing the market immediately go against me, then I quickly reverse my position, and it goes the other way again - anybody been there?
This way, I know that after it shoots up higher, it will come down, hit my entries and then TP's, or assuming it keeps going up & up & up, no trades will be entered
Attached Image (click to enlarge)
Click to Enlarge Name: domino ranget.png Size: 57 KB
Canadian by birth Australian by choice
How are you dealing with your dangler trade at the end of a run?
  • Post #11
  • Quote
  • Edited 4:07pm Nov 6, 2008 3:55pm | Edited 4:07pm
John could you detail your system a little more explicitly please, perhaps write out a set of rules to be followed like the originators of other trading systems in this section have which would help us ......it seems something similar to naningbob's EA but I'm still not very clear on how you select trades, the set up criteria (at waht intervals did you place orders), entry and exits (did you use a trailing stop or a fixed 10 pip PT) and that sort of thing.

Thanks for posting.
Why dont you just do a 3 way Hedge. Its allot easier with very small drawdown.
Attached File(s)
File Type: zip DetailedStatement.zip   7 KB | 178 downloads
Quoting BenQ
How are you dealing with your dangler trade at the end of a run?
I closed out 1 trade for breakeven and 2 others for 5 pips instead of 10, hence no losers.
I see now that the market has moved below those levels posted..........
Canadian by birth Australian by choice
Quoting fugly
John could you detail your system a little more explicitly please, perhaps write out a set of rules to be followed like the originators of other trading systems in this section have which would help us ......it seems something similar to naningbob's EA but I'm still not very clear on how you select trades, the set up criteria (at waht intervals did you place orders), entry and exits (did you use a trailing stop or a fixed 10 pip PT) and that sort of thing.

Thanks for posting.
..................... after all, it just seems so easy after I have struggled against the market for so long - don't forget this is a DEMO account only - but still, maybe I jumped the gun and posted too soon.

Anyway, the best RULE for this system would be common sense, go with the flow.

Hard and fast rules? You mean like, trade only the EUR-USD, trade only the London & New York open times?

As stated before, trade with the trend, try to determine the daily trend, especially if it seems to be against the overall long term trend. Then, when the 5 min and 15 min charts are definitely going in the same direction, watch the 1 min chart for the retracement, then place Sell on Stop order below the market price; when it resumes the trend, your trades will be entered and taken out every 10 pips - that is the great thing, after 2 trades, when it opens the 3 trade, it closes the first for a profit.

I can see some discretionary trading in this, some 1-2-3 pattern trade, some breakout trade, some swing trade, a bit of everything.

I will watch the market tomorrow very closely, get some charts to post and hopefully, answer your questions fully, thanks, John
Canadian by birth Australian by choice
Well, that's not dealing with a dangler -- that's just getting lucky and closing the trades. But if the market moves against your position, what are you rules for dealing with it?

Quoting TheSnowman
I closed out 1 trade for breakeven and 2 others for 5 pips instead of 10, hence no losers.
I see now that the market has moved below those levels posted..........
That's a whole other thread, Jack. You haven't been doing those long, have you?

Quoting jack1943
Why dont you just do a 3 way Hedge. Its allot easier with very small drawdown.
Not that long no about 6 months perfecting the entry signal.
Hi , do u place your order and TP once and then u continue to have them place for u like that or what. Pls explain. Thanks. Nerry.
Oh, that's better than I would have guessed. You definitely need a signal to key off of for that to work. Why not start a thread?

Quoting jack1943
Not that long no about 6 months perfecting the entry signal.
There have been loads of threads about Hedging, most people are against it in one form or another due to various reasons.

However, the entry signal is key.

eurchf=eurusd*usdchf

you then need to take into account correlation between eurusd and usdchf and divergence across all 3 currencies.

also, what timeframe you use for the above calculations can have a signigicant bearing on the outcome of the trades. i.e. + or -
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