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hksweeper's Trading Journal - Reaction Trend System

  • Post #1
  • Quote
  • First Post: Edited Mar 2, 2008 11:05am Mar 1, 2008 3:32pm | Edited Mar 2, 2008 11:05am
As mentioned in the title, this trading journal is about trading 7 currency pairs using a variant of W.Wilder's Reaction Trend System (RTS). RTS is first introduced in his first book, 'The New Concepts in Technical Trading System', published in 1978.

What I like about RTS is its ability to work in both ranging and trending market. Besides, I am looking for a mechanical daily system that doesn't need much time to maintain per day. After some short term forward testing, I got some nice results with RTS. However, I am not sure how this system will work in long term, while I couldn't find any back test or forward test results in long term for this system either. Thus, I decided to do my own forward testing for at least 1 year.

I do the test on a small live account with the following 7 currency pairs:
EURUSD, USDJPY, GBPUSD, USDCHF, AUDUSD, USDCAD, NZDUSD

I started the test on 19 Feb 2008. I set up and maintain the trades on GMT 00:00 each day. At the end of Feb, the trading status are as follow:

Closed Trades' results:
EURUSD +125 pips
USDJPY -133 pips
GBPUSD +50 pips
USDCHF +298 pips
AUDUSD +1 pips
USDCAD +53 pips
NZDUSD +28 pips
Total pips made from 19 Feb to 29 Feb = +422 pips

Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, +121 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +73 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +2 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, S/L 107.43
AUDUSD - Long since 29/2/2008 at 0.9383, S/L 0.9247
NZDUSD - Short since 29/2/2008 at 0.8019, S/L 0.8220

*S/L may move daily to lock in profit or reduce potential loss depending on system's rules

I will try to update this journal at least once on each trading day. I hope that RTS will be profitable in long term. Thanks for reading this journal.

Geoff
Update as of GMT 00:21, 03/03/08

Relevant Pending Orders were set. T/P and S/L were modified for opened trades according to RTS rules.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results for March 08: No results yet.

Total pips made since 19 Feb 2008: 422

Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, +121 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +165 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +123 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, S/L moved to 106.68
AUDUSD - Long since 29/2/2008 at 0.9383, S/L moved to 0.9076, T/P 0.9434
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8189

Regards,

Geoff
Quoting hksweeper
Update as of GMT 00:21, 03/03/08

Relevant Pending Orders were set. T/P and S/L were modified for opened trades according to RTS rules.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results for March 08: No results yet.

Total pips made since 19 Feb 2008: 422

Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, +121 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +165 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +123 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, S/L moved to 106.68
AUDUSD - Long since 29/2/2008 at 0.9383, S/L moved to 0.9076, T/P 0.9434
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8189

Regards,

Geoff
Hi hksweeper,
I'll be following your thread. If you can include the day's position (B, O, S), if your in trend or range, that will help me follow you. By the way, do you use the book's pivot calculation or do you use additional pivot lines?

Regards,
Rick
I'm a disciplined trader and that's the only way I trade.
Quoting drick008
Hi hksweeper,
I'll be following your thread. If you can include the day's position (B, O, S), if your in trend or range, that will help me follow you. By the way, do you use the book's pivot calculation or do you use additional pivot lines?

Regards,
Rick
Hi Rick,

You are the first one who leave a message here. Welcome to my trading journal, and hope you enjoy it.

Including the day's position (B,O,S) and indicating trending or ranging is good idea. I will update these later.

I am only using the book's pivot calculation. Actually, I haven't read the book yet. I have ordered it and it is on its way to my home. I learnt this system from two other sources, and both two sources are giving the same formula. Thus, I believe that I am using the book's original pivot calculation.

Regards,

Geoff
Quoting hksweeper
Hi Rick,

You are the first one who leave a message here. Welcome to my trading journal, and hope you enjoy it.

Including the day's position (B,O,S) and indicating trending or ranging is good idea. I will update these later.

I am only using the book's pivot calculation. Actually, I haven't read the book yet. I have ordered it and it is on its way to my home. I learnt this system from two other sources, and both two sources are giving the same formula. Thus, I believe that I am using the book's original pivot calculation.

Regards,

Geoff
Have fun with the book, it has other systems you might get in to. Reaction Trend System and Swing index (Momentum) are my favorite. So when you got the book, check it out.

Regards,
Rick
I'm a disciplined trader and that's the only way I trade.
  • Post #6
  • Quote
  • Edited Mar 3, 2008 1:07pm Mar 2, 2008 8:34pm | Edited Mar 3, 2008 1:07pm
Update as of GMT 01:27, 03/03/08
(The mode and B,O,S of each pairs is indicated now)

Today, the following pairs are in Long Trend Mode:
EURUSD, GBPUSD

The following pairs are in Short Trend Mode:
USDCHF, USDJPY, NZDUSD

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - O
USDCAD - S

Relevant Pending Orders were set. T/P and S/L were modified for opened trades according to RTS rules.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results for March 08: No results yet.

Total pips made since 19 Feb 2008: 422

Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, +121 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +165 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +123 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, S/L moved to 106.68
AUDUSD - Long since 29/2/2008 at 0.9383, S/L moved to 0.9076, T/P 0.9434
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8189

Regards,

Geoff
Quoting drick008
Have fun with the book, it has other systems you might get in to. Reaction Trend System and Swing index (Momentum) are my favorite. So when you got the book, check it out.

Regards,
Rick
Thanks for the tip. I am looking forward to receive the book.

Regards,

Geoff
Quoting hksweeper
Update as of GMT 01:27, 03/03/08
(The mode and B,O,S of each pairs is indicated now)

Today, the following pairs are in Up Trend Mode:
EURUSD, GBPUSD

The following pairs are in Down Trend Mode:
USDCHF, USDJPY, NZDUSD

The following pairs are in Range Mode (either one of B,O,S):
AUDUSD - O
USDCAD - S

Relevant Pending Orders were set. T/P and S/L were modified for opened trades according to RTS rules.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results for March 08: No results yet.

Total pips made since 19 Feb 2008: 422

Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, +121 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +165 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +123 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, S/L moved to 106.68
AUDUSD - Long since 29/2/2008 at 0.9383, S/L moved to 0.9076, T/P 0.9434
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8189

Regards,

Geoff
Awesome post, Geoff. When I get back home tonight, I'll pull my file and follow you on a Demo. By the way, what other souces did you got this from? I'm trying to fit this system to my lifestyle...I can't be in the computer all the time due to work. Tell me how you place trades, what time you place them and the time of day you adjust/manage exsisting trades. Sorry for too much questions.

Rick
I'm a disciplined trader and that's the only way I trade.
hksweeper, Why have you chosen these particular curriencies over others? I will be following here with interest. Have just visited the Delta International website...so many services and things for sale there that I developed vertigo just looking them over. I will probably buy Wilder's original book...After five years of searching,I have yet to find a system/method, daily or otherwise which has stood the test of time. I have developed several which were profitable for several months,only to end up tanking. Very good luck to you with your endeavor here. Pippo
Vincit qui se vincit.
  • Post #10
  • Quote
  • Edited at 8:40pm Mar 3, 2008 1:05pm | Edited at 8:40pm
Quoting drick008
Awesome post, Geoff. When I get back home tonight, I'll pull my file and follow you on a Demo. By the way, what other souces did you got this from? I'm trying to fit this system to my lifestyle...I can't be in the computer all the time due to work. Tell me how you place trades, what time you place them and the time of day you adjust/manage exsisting trades. Sorry for too much questions.

Rick
Hi Rick,

I learnt this system from a website which translated this system into Chinese. I also read about this in a Chinese book about trading forex. If you can read Chinese, I can PM you the website. I just received Wilder's book this evening, and I found that what I learnt from the website and other book is exactly the same as what Wilder mentioned in his book.

As my broker is IBFX, I set up new pending order and adjust opened trades according to the rules at GMT 00:00 while a new candle begin. The only exception is the Monday morning where I will do the job on Sunday GMT 23:00 as I treat this extra 1 Hour candle as part of the whole Monday data. This extra 1 Hour data together with the normal Monday candle will be used to help calculating the pivot points on Tuesday.

After I set up everything, I will let the system work by itself and I only do the job again at GMT 00:00 on the next day.

Hope I answered your questions clearly.

Geoff
  • Post #11
  • Quote
  • Edited at 8:14pm Mar 3, 2008 1:41pm | Edited at 8:14pm
Quoting Pippopotamus
hksweeper, Why have you chosen these particular curriencies over others? I will be following here with interest. Have just visited the Delta International website...so many services and things for sale there that I developed vertigo just looking them over. I will probably buy Wilder's original book...After five years of searching,I have yet to find a system/method, daily or otherwise which has stood the test of time. I have developed several which were profitable for several months,only to end up tanking. Very good luck to you with your endeavor here. Pippo
Hi Pippo,

Thanks for your wish.

As I don't have enough time and budget to trade all pairs, I choose these 7 major pairs. These pairs have different characteristic, and hopefully, I will find out which major pairs work best with this system at the end of my forward test. Currently, the results on EURUSD and USDCHF look nice.

Similar with you, I have been jumping from one system to another in the past few years, and my conclusion is that a daily system will have better chance to make constant profit in long term than systems for shorter time frame, and that's why I am looking into daily system seriously now. Hope this system won't disappointed me.

Geoff
  • Post #12
  • Quote
  • Edited at 8:49pm Mar 3, 2008 8:27pm | Edited at 8:49pm
Update as of GMT 01:14, 04/03/08

Today, the following pairs are in Long Trend Mode:
EURUSD, GBPUSD

The following pairs are in Short Trend Mode:
USDCHF, USDJPY, NZDUSD

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - S
USDCAD - B

Relevant Pending Orders were set. T/P and S/L were adjusted for opened trades according to RTS rules.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results for March 08: No results yet.

Total pips made since 19 Feb 2008: 422

Opened Trades:
GBPUSD - Long since 21/2/2008 at 1.9638, S/L moved, +13 pips locked in
EURUSD - Long since 26/2/2008 at 1.4906, +233 pips locked in
USDCHF - Short since 26/2/2008 at 1.0771, +237 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, +88 pips locked in
AUDUSD - Long since 29/2/2008 at 0.9383, S/L moved to 0.9173, T/P 0.9444
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8178
USDCAD - Short since 03/03/2008 at 0.9878, S/L moved to 1.0052, T/P 0.9837

Regards,

Geoff
  • Post #13
  • Quote
  • Edited at 7:22am Mar 5, 2008 7:13am | Edited at 7:22am
As of GMT 12:02, 05/03/08,

The following pairs are in Long Trend Mode:
None

The following pairs are in Short Trend Mode:
USDCHF, NZDUSD, GBPUSD

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - S
USDCAD - B
EURUSD - O
USDJPY - S

Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 00:00.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results for March 08:
EURUSD +246 PIPS
GBPUSD +164 pips
AUDUSD -119 pips
USDCAD -67 pips
Total pips made in March 08: +224

Each pairs' performance since 19 Feb 2008:
EURUSD +371 pips
USDJPY -133 pips
GBPUSD +214 pips
USDCHF +298 pips
AUDUSD -118 pips
USDCAD -14 pips
NZDUSD +28 pips
Total pips made since 19 Feb 2008: +646

Opened Trades:
USDCHF - Short since 26/2/2008 at 1.0771, +238 pips locked in
USDJPY - Short since 27/2/2008 at 105.96, +125 pips locked in
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8167
GBPUSD - Short since 05/03/2008 at 1.9727, S/L 1.9945


Regards,

Geoff
As of GMT 17:36, 06/03/08,

The following pairs are in Long Trend Mode:
None

The following pairs are in Short Trend Mode:
USDCHF, NZDUSD

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - O
USDCAD - S
EURUSD - S
USDJPY - B
GBPUSD - O

Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 00:00.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results in March 08:
EURUSD +246 PIPS
GBPUSD -54 pips
AUDUSD -119 pips
USDCAD -67 pips
USDJPY +253
Total pips made in March 08: +259 pips

Total pips made since 19 Feb 2008 to date: +681

Opened Trades:
USDCHF - Short since 26/2/2008 at 1.0771, +335 pips locked in
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8072
EURUSD - Short since 06/03/2008 at 1.5338, S/L 1.5500
USDJPY - Long since 06/03/2008 at 103.43, S/L 102.47


Regards,

Geoff
As of GMT 12:23, 07/03/08,

The following pairs are in Long Trend Mode:
None

The following pairs are in Short Trend Mode:
USDCHF, NZDUSD, USDJPY, USDCAD

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - S
EURUSD - B
GBPUSD - S

Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 00:00.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results in March 08:
EURUSD +246 PIPS
GBPUSD -54 pips
AUDUSD -119 pips
USDCAD -141 pips
USDJPY +157
Total pips made in March 08: +89 pips

Total pips made since 19 Feb 2008 to date: +511

Opened Trades:
USDCHF - Short since 26/2/2008 at 1.0771, +335 pips locked in
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8060
EURUSD - Short since 06/03/2008 at 1.5338, S/L 1.5556, T/P 1.5307
USDJPY - Short since 06/03/2008 at 102.47, S/L 104.25
USDCAD - Short since 07/03/2008 at 0.9745, S/L 0.9962


Regards,

Geoff
  • Post #16
  • Quote
  • Edited at 9:44am Mar 10, 2008 9:23am | Edited at 9:44am
As of GMT 13:24, 10/03/08,

The following pairs are in Long Trend Mode:
None

The following pairs are in Short Trend Mode:
USDCHF, NZDUSD, USDJPY, USDCAD

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - B
EURUSD - O
GBPUSD - B

Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 22:00 Sunday.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results in March 08:
EURUSD +220 pips
GBPUSD -54 pips
AUDUSD +11 pips
USDCAD -141 pips
USDJPY +157 pips
Total pips made in March 08: +193 pips

Total pips made since 19 Feb 2008 to date: +615

Opened Trades:
USDCHF - Short since 26/2/2008 at 1.0771, +381 pips locked in
NZDUSD - Short since 29/2/2008 at 0.8019, S/L moved to 0.8055
USDJPY - Short since 06/03/2008 at 102.47, S/L moved to 104.07
GBPUSD - Short since 07/03/2008 at 2.0204, S/L 2.0335, T/P 2.0090
USDCAD - Short since 07/03/2008 at 0.9745, S/L moved to 0.9932
AUDUSD - Long since 10/03/2008 at 0.9236, S/L 0.9113

Regards,

Geoff
As of GMT 18:04, 11/03/08,

The following pairs are in Long Trend Mode:
USDJPY, USDCHF, NZDUSD

The following pairs are in Short Trend Mode:
None

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - O
GBPUSD - O
USDCAD - S
EURUSD - S

Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 00:00.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results in March 08:
EURUSD -56 pips
GBPUSD +153 pips
AUDUSD +36 pips
USDCAD -328 pips
USDJPY +84 pips
USDCHF +440 pips
Total pips made in March 08: +329 pips

Total pips made since 19 Feb 2008 to date: +751

Opened Trades:
USDJPY - Long since 11/03/2008 at 103.20, S/L 101.36
USDCHF - Long since 11/03/2008 at 1.0331, S/L 1.0127
NZDUSD - Long since 11/03/2008 at 0.8030, S/L 0.7870



Regards,

Geoff
As of GMT 17:48, 12/03/08,

The following pairs are in Long Trend Mode:
USDJPY, USDCHF, NZDUSD

The following pairs are in Short Trend Mode:
None

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - S
GBPUSD - S
USDCAD - B
EURUSD - B

Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 00:00.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results in March 08:
EURUSD -56 pips
GBPUSD +153 pips
AUDUSD +36 pips
USDCAD -328 pips
USDJPY +84 pips
USDCHF +440 pips
Total pips made in March 08: +329 pips

Total pips made since 19 Feb 2008 to date: +751

Opened Trades:
USDJPY - Long since 11/03/2008 at 103.20, S/L 101.36
USDCHF - Long since 11/03/2008 at 1.0331, S/L moved to 1.0142
NZDUSD - Long since 11/03/2008 at 0.8030, S/L 0.7868
GBPUSD - Short since 12/03/2008 at 2.0179, S/L 2.0402
USDCAD - Long since 12/03/2008 at 0.9884, S/L 0.9794


Regards,

Geoff
As of GMT 18:09, 13/03/08,

The following pairs are in Long Trend Mode:
NZDUSD

The following pairs are in Short Trend Mode:
None

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - B
GBPUSD - B
USDCAD - O
EURUSD - O
USDJPY - O
USDCHF - O


Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 00:00.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results in March 08:
EURUSD -56 pips
GBPUSD +153 pips
AUDUSD +36 pips
USDCAD -328 pips
USDJPY -100 pips
USDCHF +251 pips
Total pips made in March 08: -44 pips

Total pips made since 19 Feb 2008 to date: +378

Opened Trades:
NZDUSD - Long since 11/03/2008 at 0.8030, S/L moved to 0.7915
GBPUSD - Short since 12/03/2008 at 2.0179, S/L moved to 2.0576, T/P 2.0125
AUDUSD - Short since 12/03/2008 at 0.9342, S/L 0.9486, T/P 0.9305
USDCAD - Long since 12/03/2008 at 0.9884, S/L moved to 0.9742, T/P 0.9945


Regards,

Geoff
As of GMT 16:54, 14/03/08,

The following pairs are in Long Trend Mode:
NZDUSD

The following pairs are in Short Trend Mode:
None

The following pairs are in Reaction Mode (either one of B,O,S):
AUDUSD - O
GBPUSD - O
USDCAD - S
EURUSD - S
USDJPY - S
USDCHF - S


Relevant Pending Orders were set; opened trades were adjusted and managed according to RTS rules at GMT 00:00.

Trades' results from 19 Feb to 29 Feb: +422 pips
(please read the 1st post for details)

Closed trades' results in March 08:
EURUSD -56 pips
GBPUSD +25 pips
AUDUSD -77 pips
USDCAD -304 pips
USDJPY -100 pips
USDCHF +251 pips
Total pips made in March 08: -261 pips

Total pips made since 19 Feb 2008 to date: +161

Opened Trades:
NZDUSD - Long since 11/03/2008 at 0.8030, S/L moved to 0.7990
EURUSD - Short since 14/03/2008 at 1.5669, S/L 1.5796
USDCAD - Short since 14/03/2008 at 0.9908, S/L 1.0036


Regards,

Geoff
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