Freakish Results

Ok, I have been playing around with a new system that really seems to work well. I want to see how hard I can push it over the next 3 or so months and then switch to a daily strategy and only check the charts once a day. So, I started this thread to post the results and post the system for everyone to see.

I have an account that I use strictly for tests like this and over the last 2 weeks the new system has pushed it up about 65%. I will post statements beginning Monday night around midnight and continue until the end of the test.

Time Frame: 1 min.
Pairs: EURJPY, GBPJPY, and GBPUSD.
Method: 3 stochastics and 1 moving average.
Time of day: all day, I will trade when a setup shows up. The only exception is Sunday nights I tend to use more caution until London open just because of how the markets move.
Limits: none. I will exit the trade when the trend shows weakness.
Stops: Other side of moving average or 20 pips whichever is greater. I will manually close a trade early if there are signs of weakness or if I am in a small profit and it is getting near news time.
Risk: As much as I can tolerate. This value really isn't relevant to you so stick to whatever risk profile you can tolerate.


I will wait for all three stochastics to move either above 75 or below 25 then wait for a cross of the moving average. There are a few little tricks I use to keep myself out of bad trades and I will show those as they come up. There are patterns within the three stochastics that will show when there is a high probability of a reversal.

The stochastic values are 8,3,3 16,3,3 and 34,3,3 the attached inidcator only draws the main line and not the trigger line of the stochastic.

Moving average is 100 sma.

Target is around 200 pips per day but I will be disappointed if that is all I get. I have had days in excess of 700 pips trading this way.

I will try to update as trades happen but since this is based on the 1 min chart it may take a few minutes before I can stop and update this thread.

DISCLAIMER: DO NOT TRADE THIS LIVE. This is NOT meant to be trading advice nor is it trading recommendations. YOU assume full risk if you decide to trade using this method. If YOU are too lazy to put in the due diligence required to learn how to trade properly DO NOT COME CRYING TO ME OR THIS THREAD IF YOU LOSE MONEY! PERIOD!!!!

Here is the account statement that shows the growth over the last few weeks.

This kind of crap is what chews up many accounts with traders trading moving average crosses. One of the key elements in this system is to wait for a confirmation. In this system, wait for a cross and a confirmation candle (i.e. 2 candles closing over the moving average). In the image below we don't get confirmations so we don't enter.

early sign that the trend may be in danger. Notice the red line from the stochastics and how far away it is from the other two (in particular the white line). This is a really good sign that the trend could be reversing, which it did. Like everything it doesn't always work but it works enough that you should pay attention to it. Usually what I will do when this shows up is I will move my stop to just above a previous swing high (or low depending on direction). If the signal is valid then it will take out the previous high.

Markets have finally calmed down some so it is time to start looking for trades. Right now EJ and GJ are starting to set up for a long. Just needs to get across the moving average and then confirm. Patience is important even on the 1 min chart.

small stop out on EJ trade. 9 pips including spread. waiting for next setup.

Was that a valid signal on the GBP/JPY at 5:37 est?

my apologies for not getting back to you sooner. Yes that was a valid entry. I had some things to take care of during the day (unplanned of course) so I did not make any other trades besides the one small loser. Looking at the charts, I really didn't miss too much. What a weird day for trading.

Just sitting down a few minutes ago to start trading. I will get back to posting here as things set up.

No worries. I was pulling an all night studying for law school exams so i was just keeping one eye on the charts.

Anyways thanks for posting this, and I look forward to further updates. Just judging by your previous posts in some other journals your trading style is very similiar to the kind that I have had success with.

Looking good freak.
Dont know if I have enough patience, but I only have GJ setup at the mo.
Will be following with interest.
Have marked that 14Dec 05:37 est already on my chart. Got any more examples?

cheers scalpz

Dunno why but when I go to download the stochastic it says its a php file.

Perhaps you need to click the link instead of "right click and choose Save As".

Im getting the same issue on the indi tryed all ways of download.

Save it as a php file and then right click on it and rename it "mystoch.mq4" or "whateveryouwant.mq4".

That dosent work either

***Correction, Yes that did work. Thank you***

Setups for short on E/Y and G/Y came around 6:45pmest. Couple of questions if I may ask. You said your stops are at the other side of MA. Do you wait for a the candle to close below the MA or as soon as it crosses below it?

Second, you mentioned waiting for 2 candles to close above or below the MA for confirmation. It doesn't matter if the two candles are opposite (ie red and green) or if one closes through the MA as opposed to the whole body of the candle being above/below the MA?

I don't know how you find the time to do all this testing and still make time to share this with us, but I appreciate it. You ideas are interesting. I'll be testing this along with you. It seems to have more potential than any of the junk for sale out there. Thanks again for sharing your knowledge and experience.

1- the stochs need to have in the position first? Will you ignore signals when the stochs get in the position but there is a bar trading at the moving average?

2- the two candles needs to have 0.5 to 10 and up for buys?

3- the moving average stops is when price CLOSE on the other site of the MA?


thanks in advance.

Magnumfreak it is good to see you have given up your feeble attempt at comedy & posted a method-system that someone can maybe trade. Your comedy routine would have gotten old fast had you continued on. Seriously it is good to see that you posted your method & are willing to seriouly help others. I wish you the best....seriously.

In reference to your post on Dec. 13, I am using fx charts with the mystoch.mq4 indicator, But I have seen charts with what I think is a stochastics momentum indicator. I haven't been able to find or duplicate it. A trading buddy suggested I try posting the attached file in this forum. Hope you can help.