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SIMPLE EA for a simple method needed!! 2 replies

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Attachments: Please suggest a simple & effective Method/System of "Trading System" Forum to newbie
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Please suggest a simple & effective Method/System of "Trading System" Forum to newbie

To answer the question about different pip payouts, you could do 1.2 lots for each 1 lot. If you use mini lots, then you could trade 5 or 10 lots EUR and GBP and 6 or 12 lots of the JPY and CHF pair. I think that if the trend for EUR and GBP is up,then use the same amt for each, but if down, use the 1.2 formula for the USDCHF and USDJPY. Closing and opening each day could potentially eat up the interest because of the spreads, but if you wait for a profit, it doesn't really matter because you make money. You can also write an EA that has a profit target. I personally do not use stops with this method. The reason is because you are hedged and you WILL NOT lose all your money if you trade lot sizes according to your acct size. I have backtested using a java program I wrote, and the largest drawdown using 1 full lot per pair was $4500, and the margin around $2600. With a $10000 acct you should be ok. The negative trades never lasted more than 5 days, and I was taking a profit when all were up $250. Sometimes the profit hit 3 times in one day.
I trade live with 5 mini lots. Acct size a little over $5000. Right now in big drawdown of -$1850 and margin of $1000. This has been the worst drawdown on live acct I've seen and it's due to sell off of JPY pairs.
Here's an EA to use a TP. When you open the trades, use a comment and make it the same for all pairs. Enter the same comment in the EA parameter along with your TP and whether to include swaps in your TP calculation.
Attached File(s)
File Type: mq4 TakeProfit.mq4   4 KB | 891 downloads
Quoting bhale
bundubill, you say you have good test results. May I ask exactly how you are trading this setup?

.
Hi bhale,

Thanks for all the info which is very welcome. I first started trading the BeachBum way with the stoplosses he recommended earlier in the thread and made profit everyday - no losses. Then last week I tried your method without stoploss and had very similar results to yours. It was probably the worst week possible to trade this way and it's interesting that you feel you can still come out with profit (I closed my demo trade yesterday down 200+pips from the previous Friday.)
The possibility of buying 2 pairs and selling the other two is also interesting but nothing like as mechanical and carefree (when it works) as buying all 4
pairs. I'm fairly new to this business and I don't think I'm even half clever enough yet to run that strategy, but I'm open to suggestions if you have any.

Good luck
Quoting bundubill
The trade I have had open since Friday is now down over 100 pips although as mentioned earlier there were times I could have taken a very small profit. There is probably a tipping point where we should sell all 4 pairs instead of buying them but I have no idea what the formula for this calculation is.
Just trying to help!
How about something like this.
At least it may help to know when
to stand aside.

Good Trading My Friends!

FXS
Attached Image (click to enlarge)
Click to Enlarge Name: hedgetip.jpg Size: 124 KB
Quoting FXSurfer
Just trying to help!
How about something like this.
At least it may help to know when
to stand aside.

Good Trading My Friends!

FXS
Hi FX

Thanks for your contribution. As your charts demonstrate there were certainly times last week when it became obvious that there was more to be made from selling than buying but because it was a demo trade and because I was looking for a method that required little attention I let it run in the hope that it would turn around As you can see from his post. bhale the originator of the method is still confident that it will turn around but I'm not sure I could afford the large drawdown that he has at the moment. Given that the yen crosses were being sold off and both GBP and EUR were floating at all time highs and therefore very likely to retrace at some point it was a very precarious time for this strategy and I don't think I would have traded it live. I still think the strategy has some potential as the times when not to trade - like last week - should be fairly obvious.

Good luck
This is just about the perfect storm for testing the stability of this method.

It's a good thing that this unwinding happened. And notice, that when the carry trades unwind, GBP/USD will decline as well. But I've got little doubt that it will snap back in a few days. Meanwhile, we're collecting a little interest.

The lesson to take away from the last few days is not that the method doesn't work - but that you don't want to run this in an over-leveraged manner.

Bhale, welcome back, we're glad to see your recent comments and insights. Now, personally, I feel that 0.50 lots in a $5000 account may be a little too scary for me. With the 0.30 lots that I've tested, the max downside that I've noticed is $1500. I can live with that and a bit more.

This "storm" wasn't the BIG ONE, like a hurricane Katrina, but it was (assuming the worst is over) a very good test - the kind that may only happen once every 6-24 months. But then again, I live in Florida, so I'm well aware that you can get walloped more frequently than the odds would suggest.

So be careful. The only thing that's going to kill you with this method is being over-leveraged.
Hi All,

Why not just trade GBPJPY and EURCHF ? Isn't this what is really being traded or are you trading everything in equal USD value lots?

Also since EUR and CHF are very highly correlated(95%+) the position is really GBPJPY which has been in a long term uptrend so past performance has been particularly good and may not continue as noted

A bigger basket of positive interest pairs would reduce risk I think by reducing volatility of the basket. NZDAUD was suggested and seems a good idea.
Enroth, when you take several pairs like that and boil it down to trading one or two pairs, you are deluding yourself. These currencies move differently at different times. You cannot simply take the prices and then come up with an equivalent that will match. The reason this trade works is that they aren't correlated. It is simply a hedge. Maybe not a perfect one, but one that will make a profit when on one or more move faster than the others. You ask why not trade just the GBPJPY? Because buying the four pairs spreads the risk, and I don't have to guess which way prices are going.
One more thing. I agree with this statement,

A bigger basket of positive interest pairs would reduce risk I think by reducing volatility of the basket. NZDAUD was suggested and seems a good idea.

I am seeing some flaws in the system, but I like the hedge as a dollar hedge. Maybe a similar paring of GBP would work as well, I don't know. If I could get in other pairs that would add to dollar hedging, then that would be good. Maybe buying both USDCAD and AUDUSD.
go directly to the attach see the pic file
cek out this
http://forexfactory.com/showthread.php?t=40019

Quoting Faith
Dear Friends in FF,

I have read most threads of 5 stars trading strategys and methods form "Trading System" Forums of FF, but certain systems have more than 3 indicators and some of them are new to me, eg. vages tunnel and sidus. (I traded stocks before and know only traditional TA indicators, like MACD, Stoch., MAs, William %R, RSI, as well as the concept of triple-timeframes)

Can any friends suggest a relatively simple but effective method/system from "Trading System" Fourm to a newbie, like me. It is better for this method/system to have less then 3 traditional indicators and less then 3 timeframes.

Due to full of frustration in past and present jobs, I am eager to learn and trade for a living (not for rich).

Thanks a lot in advance.
Quoting chivas88chi
go directly to the attach see the pic file
cek out this
http://forexfactory.com/showthread.php?t=40019

Dear chivas88chi,

Thanks you for your suggestion; I am seriously studying this thread now.

Faith
Living needs faith!
may be this can help you

for daily range expectation
http://forexfactory.com/showthread.php?t=41467

for the GU behavior expectation
http://forexfactory.com/showthread.php?t=31415

for simple and powerful strategy
http://forexfactory.com/showthread.php?t=40019

about numbering signal
http://forexfactory.com/showthread.php?t=33401






Quoting Faith
Dear Friends in FF,

I have read most threads of 5 stars trading strategys and methods form "Trading System" Forums of FF, but certain systems have more than 3 indicators and some of them are new to me, eg. vages tunnel and sidus. (I traded stocks before and know only traditional TA indicators, like MACD, Stoch., MAs, William %R, RSI, as well as the concept of triple-timeframes)

Can any friends suggest a relatively simple but effective method/system from "Trading System" Fourm to a newbie, like me. It is better for this method/system to have less then 3 traditional indicators and less then 3 timeframes.

Due to full of frustration in past and present jobs, I am eager to learn and trade for a living (not for rich).

Thanks a lot in advance.
You don't get more simple that Jacko's Journal in the journal forum.
may be this can help you or anyone who read it

for daily range expectation
http://forexfactory.com/showthread.php?t=41467

for the GU behavior expectation
http://forexfactory.com/showthread.php?t=31415

for simple and powerful strategy
http://forexfactory.com/showthread.php?t=40019

about numbering signal
http://forexfactory.com/showthread.php?t=33401


Quoting Faith
Dear Friends in FF,

I have read most threads of 5 stars trading strategys and methods form "Trading System" Forums of FF, but certain systems have more than 3 indicators and some of them are new to me, eg. vages tunnel and sidus. (I traded stocks before and know only traditional TA indicators, like MACD, Stoch., MAs, William %R, RSI, as well as the concept of triple-timeframes)

Can any friends suggest a relatively simple but effective method/system from "Trading System" Fourm to a newbie, like me. It is better for this method/system to have less then 3 traditional indicators and less then 3 timeframes.

Due to full of frustration in past and present jobs, I am eager to learn and trade for a living (not for rich).

Thanks a lot in advance.
Quoting Faith
Dear Friends in FF,

I have read most threads of 5 stars trading strategys and methods form "Trading System" Forums of FF, but certain systems have more than 3 indicators and some of them are new to me, eg. vages tunnel and sidus. (I traded stocks before and know only traditional TA indicators, like MACD, Stoch., MAs, William %R, RSI, as well as the concept of triple-timeframes)

Can any friends suggest a relatively simple but effective method/system from "Trading System" Fourm to a newbie, like me. It is better for this method/system to have less then 3 traditional indicators and less then 3 timeframes.

Due to full of frustration in past and present jobs, I am eager to learn and trade for a living (not for rich).

Thanks a lot in advance.
Well...are you completly confused by now?
Same Whore .... Different Dress
I just studied the Fozzy method...and I really like the simplicity of it.

Check it out!

There's a tutorial thing on the "systems/methods" forum.
Quoting saint_berzer
I just studied the Fozzy method...and I really like the simplicity of it.

Check it out!

There's a tutorial thing on the "systems/methods" forum.
Thanks for your suggestion.
Living needs faith!
Quoting johnedoe
Well...are you completly confused by now?
Hi johnedoe,

Confused in what aspect(s)?
Can you mention more?

Thanks
Living needs faith!
If I'm not confused, then I'm not paying attention!
{Link removed }
Quoting WTB
False.

No system will make you earn any money while you learn, quite the opposite actually. The trader's expertise is far more important than the system when it comes to profitability.

For your account's sake, dont trade live while you learn. Or at most, trade nano-lots.
Just stumbled onto this reply now by accident. Hey please don't knock it till you've tried it. Traex typically does 500 pips plus per week. Yes you read right, per week with a very high win %.

To follow his trades whilst you are learning to put your own trading style together would be very good indeed. Then once you have a system if he gives a call make sure your own system confirms.

Just my view obviously and I respect yours.
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