SlingShot Method A

Tested on GBPUSD

THe method is so simple even a caveman could do it! ("ahem")

Method goes like this.

1. Notice the Current Trend
2. Watch Opening price of daily candle *around 5PM EST depending on broker )
3. If Trend is up and price Reaches -30 pips from open, place a BUYLIMIT @ Opening price+15 Pips.

so if price opens at 1.9230, price falls to 1.9200, place order at 1.9230+15 = 1.9245.

TP Exit is discretionary, My exit is dependent on Average daily range for last 10 or so candles, if candles are doing average of 120 pips a day, then exit would be 120-(30+15)= 75 pips away from entry. I also watch momentum and lower time frame charts for exit.

TP Exit is discretionary, SL is normally 30 pips away from open.

I do not recommend going against the trend even though sometimes it works. It just happens that trading with the trend have a higher chance of succeeding

Hey Don, where have you been? Haven't seen your postings lately.

Don, do you have a picture for this method?

ok this is a method in the making. A direvative of pivot trading.

my concept is that when the daily candle opens and makes a new low or high for the day THEN retraces back to open and passes the opening price then there is a high probability that it will continue in that direction


Eg: gbpjpy opens at 236.40....Moves DOWN to 236.00 retraces to 236.40 then passing it to go higher like 236.45...then we go LONG as the price slingshots pass the opens.... It pulls back then releases passing the opening price to go higher.

same for a sell except price would move higher first then retrace

look at this chart
http://i18.tinypic.com/34jbyox.gif

We have to use a threshold of about 40 or 30 pips for the low/high to get a true slingshot. anything less might be market noise

any thoughts>? .

Certainly seems like a good methodology!

I think the hackers have managed to distrupt things a bit lately.

Maybe more charts with recent examples will attract participation!

Please,keep at it!

Good Trading!


FXS

Simplicity is the way to survive

I think this is similar to the big ben system.
seem to have lost the pdf..... i will post it if i can find it again..
here it is........ http://www.accrete.com/fx-gbp/BB_Strategy.pdf

yes i agree, except my system is a bit different. Once price drops to a low and retraces to open, usually momentum is left for it to go higher pass open.
it's that simple.

how far back have you tested the data?

This system's like 1-2-3 system that have brought here by someone. Just pick a top (numbered as 1) pick a low (numbered as 2) and than buy above 1, vice versa for downtrend.

Seems simple enough. You've been testing it with cable? My first thoughts were to try it with a less volatile pair. Tighter stops etc. But I guess the volatility would be the power of the slingshot. Certainly easy enough to use. Just what we all need more of. Sound simple tools that are easy to test.
Thanks Don!

yes, the more volatile the pair the easier the slingshot.

And as i said, it works better when trade is in the direction of the trend