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Let's create a profitable system

  • #1
  • First Post: Edited Apr 2, 2018 11:16am Mar 30, 2018 7:11pm | Edited Apr 2, 2018 11:16am
Hello guys,

my name is David, I am 23, I am from Czech Republic and I work as Quality Controller.
I decided to make new profitable system, because my intraday EUR/USD strategy dissapointed me a little bit after it made new record of losing trades drowdown (22).

Attached Image (click to enlarge)
Click to Enlarge Name: Bez názvu.png Size: 28 KB


I want see, if I am able to make better equity curve with less losing trades. So let's go!!!

DMS system - RULES

1. I trade Tuesday to Friday.

2. I trade from 9 to 13 and from 15 to 17 o'clock GMT+1 (depends on my work shift).

3. I trade 1 hour chart.

4. I trade only LONG.

5. STOP LOSS is 200$ - TARGET PROFIT is 400$.


DMS system - TRADING RULES

1. PRICE should open and keep above DAILY PIVOT.

2. PRICE should make ENGULFING candle on DAILY PIVOT.

3. STOP LOSS is DAILY PIVOT - TARGET PROFIT is around R2 and here it should be 2:1 PROFIT FACTOR.

4. H1 chart should rise, if not and H1 chart is in some range, I watch H4 and D1 chart and if it's raising, I enter trade too (this rule is very conservative, I just don't enter against big fall).


MAIN GOALS -

1. Make 50 trades.

2. Get least amount of losses.



Here is first example and I will add more latter with equity curve after last trade.
Attached Image (click to enlarge)
Click to Enlarge Name: 1-USD-CHF 28.2. 2018.png Size: 32 KB


This one is from 28.2. 2018.

TRADING RULES -

1. PRICE should open and keep above DAILY PIVOT.

2. PRICE should make ENGULFING candle on DAILY PIVOT.

3. STOP LOSS is DAILY PIVOT - TARGET PROFIT is around R2 and here it should be 2:1 PROFIT FACTOR.

4. H1 chart should rise, if not and H1 chart is in some range, I watch H4 and D1 chart and if it's raising, I enter trade too (this rule is very conservative, I just don't enter against big fall).


Attached Image (click to enlarge)
Click to Enlarge Name: Bez názvu2.png Size: 23 KB


"I'm not answering stupid questions."
  • #2
  • Mar 30, 2018 7:38pm Mar 30, 2018 7:38pm
Please don't take this as me being a mean or something, that's not my intention, I'm just asking questions.

Your previous system lost you money. Why do you think this system will work better? Have you tested it using a demo account? How did you do trading the system in demo?

Also, are you asking for help in creating this new system of yours?

I also have some other questions. Why trade only long? That is without a doubt the most confusion aspect of your system. You do understand that a currency cross like USDCHF isn't a "thing" itself that you're actually buying and sell? You understand that what you're really trading is a ratio representing the relative strength/weakness between USD and CHF? Therefore, trading "long" only means in the USDCHF example that you're saying the dollar will get stronger against the franc but if you go long on EURUSD your saying the dollar will get weaker against the euro.

You also mentioned "make 50 trades" but you want to make those trades over what time frame? Are you saying you want to make 50 trades every day, 50 in a week, a month, a year ... a decade?

Lastly, while "least amount of losses" is a good goal it focuses on the negative (people often get what they focus on). Why not "most amount of profits" which of course is why we're all here trading in the first place.
Woohiye is a Lakota Sioux word that means success, or overcoming obstacles
  • #3
  • Mar 30, 2018 8:01pm Mar 30, 2018 8:01pm
Quoting Woohiye
Please don't take this as me being a mean or something, that's not my intention, I'm just asking questions. Your previous system lost you money. Why do you think this system will work better? Have you tested it using a demo account? How did you do trading the system in demo? Also, are you asking for help in creating this new system of yours? I also have some other questions. Why trade only long? That is without a doubt the most confusion aspect of your system. You do understand that a currency cross like USDCHF isn't a "thing" itself that you're...

1. My previous system has drowdown now, but in long-term it is profitable so far. I just don't trade it on real account right now, because I am waiting for next results in future.

2. This is that test on DEMO. This is not real account and I am not asking for help .

3. If u read carefully, u should know its H1 trading system. I wanna make 50 trades, because it's 50 trade TEST, so everytime I will get opportunity with my plan, I will enter a trade. After 50 trades I will see equity curve. 50 trade equity is minimum as a sample, and later I will continue if equity will be raising.

4. Least amount of losses, cause I want as minimum drowdown as possible to know how much I should set % risk later.
"I'm not answering stupid questions."
  • #4
  • Mar 30, 2018 8:22pm Mar 30, 2018 8:22pm
Quoting Malchi
{quote} 1. My previous system has drowdown now, but in long-term it is profitable so far. I just don't trade it on real account right now, because I am waiting for next results in future. 2. This is that test on DEMO. This is not real account and I am not asking for help . 3. If u read carefully, u should know its H1 trading system. I wanna make 50 trades, because it's 50 trade TEST, so everytime I will get opportunity with my plan, I will enter a trade. After 50 trades I will see equity curve. 50 trade equity is minimum as a sample, and later...
If your previous system has a drawdown "now" then it is NOT "profitable so far." There's a draw down because your losses exceed your gains.

And once again, "the smallest draw down" means the account is losing money, not gaining money. An account drawing down happens because losing trades exceed profitable trades.

I do wish you the best, I'll stop raining on your parade now.
Woohiye is a Lakota Sioux word that means success, or overcoming obstacles
  • #5
  • Mar 30, 2018 9:23pm Mar 30, 2018 9:23pm
Quoting Woohiye
Please don't take this as me being a mean or something, that's not my intention, I'm just asking questions. Your previous system lost you money. Why do you think this system will work better? Have you tested it using a demo account? How did you do trading the system in demo? Also, are you asking for help in creating this new system of yours? I also have some other questions. Why trade only long? That is without a doubt the most confusion aspect of your system. You do understand that a currency cross like USDCHF isn't a "thing" itself that you're...
Hi, Woohiye and Malchi.
Woohiye does raise some interesting questions for you to consider. The one that stands out even to me, why do you only go long and ignore short? This is a critical aspect of Forex markets that they go both ways, unlike stocks which have increasing intrinsic value so it would make sense to only go long in stocks. Now if I assume correctly, your fist picture is an equity curve of your system over 500 or so trades? It looks good if that is your only draw down and you should not be surprised as 22 or so losing trades in a row can be common (I had 33 losing trade streak a while back with a 80-95% accuracy system). I recommend to increase profitability you can try to incorporate a direction bias, yes that means sometimes only focusing to go short. The bias should come from higher timeframe such as 4H or Daily. Finally, don't give up on your system that easily, if in the past it has worked really well and you get just a few losing trades just because of a temporary shift in market conditions. Be aware about not all systems working in all market conditions, a mistake I made by trying to design one that worked everywhere and always ( I got close, but realised that is not the way). Anyways hope you can maybe make a few little tweaks that will give you the profitability you desire.

Kind Regards,
Tzamo
"Work hard, put in the effort, and follow your dreams..." -Me
  • #6
  • Mar 30, 2018 9:47pm Mar 30, 2018 9:47pm
Quoting tzamo
{quote} Hi, Woohiye and Malchi. Woohiye does raise some interesting questions for you to consider. The one that stands out even to me, why do you only go long and ignore short? This is a critical aspect of Forex markets that they go both ways, unlike stocks which have increasing intrinsic value so it would make sense to only go long in stocks. Now if I assume correctly, your fist picture is an equity curve of your system over 500 or so trades? It looks good if that is your only draw down and you should not be surprised as 22 or so losing trades...
1. Sometimes is better to not overtrade, so I picked up sentiment to me more natural for now. Maybe I will add sentiment SHORT after TEST later, but now let's train my eye to LONG. So far I get 1-2 opportunities per week.

2. Yes, first picture is my previous system with almost 500 trades over 3 years, I don't trade it right now, I just mark trades and statistics to see, if it will be losing or will be in range or it will raise up again .
"I'm not answering stupid questions."
  • #7
  • Mar 31, 2018 12:27am Mar 31, 2018 12:27am
Quoting Woohiye
{quote} If your previous system has a drawdown "now" then it is NOT "profitable so far." There's a draw down because your losses exceed your gains. And once again, "the smallest draw down" means the account is losing money, not gaining money. An account drawing down happens because losing trades exceed profitable trades. I do wish you the best, I'll stop raining on your parade now.
Can you please give a link to at least one FF system that is really profitable?
Please excuse the bad English via Google Translate.
  • #8
  • Mar 31, 2018 10:27am Mar 31, 2018 10:27am
Quoting dokopy
{quote} Can you please give a link to at least one FF system that is really profitable?
Systems aren't profitable, traders are. Yes the system helps, but seriously it's more about the trader than the system.

This is why in my own system thread I don't try to say that my system is profitable or trading my way will make you profitable.

The most profitable traders I've ever known all had their own method of trading. They took what worked for them from multiple sources, got rid of what didn't, and became profitable. I've never seen two highly profitable traders trade the exact same way.

That's why I find it so funny here on FF when some people act like their way is the only right way to trade. Their way is the right way FOR THEM and for some other trader may bust an account.

This systems thread in general is SO important to traders because it allows you to look at various systems and indicators, trade on demo, and put together a system that works FOR YOU.
Woohiye is a Lakota Sioux word that means success, or overcoming obstacles
  • #9
  • Apr 1, 2018 3:13am Apr 1, 2018 3:13am
Quoting Woohiye
{quote} Systems aren't profitable, traders are. Yes the system helps, but seriously it's more about the trader than the system. This is why in my own system thread I don't try to say that my system is profitable or trading my way will make you profitable. The most profitable traders I've ever known all had their own method of trading. They took what worked for them from multiple sources, got rid of what didn't, and became profitable. I've never seen two highly profitable traders trade the exact same way. That's why I find it so funny here on FF...
In other words. No one is able to describe your own profitable system so well that someone else can repeat the results in their account. Or nobody has a profitable system. So it does not make sense to write about any system, whether it is good or bad.
Please excuse the bad English via Google Translate.
  • #10
  • Apr 1, 2018 4:04am Apr 1, 2018 4:04am
subscribed

sometimes going 1 direction could be an interesting strategy...keep posting your result malchi
  • #11
  • Apr 1, 2018 6:22am Apr 1, 2018 6:22am
I don't understand. Your equity curve looks great. Looks like you didn't lose 22 trades continuously. For me, that drawdown is not that bad. Your account will survive with that drawdown if you don't risk too much.
I am really baffled with your problem. Maybe I didn't understand or missing something?
  • #12
  • Apr 1, 2018 11:11am Apr 1, 2018 11:11am
Quoting dokopy
{quote} In other words. No one is able to describe your own profitable system so well that someone else can repeat the results in their account. Or nobody has a profitable system. So it does not make sense to write about any system, whether it is good or bad.
So that you can see what other people do and what works for them. Then put together pieces of what works for you to create your own method.

This is why you see some super successful trader standing up and showing what he does. But when others try to duplicate it maybe only a small fraction of the people can get anywhere close to that trader's results.
Woohiye is a Lakota Sioux word that means success, or overcoming obstacles
  • #13
  • Apr 1, 2018 11:12am Apr 1, 2018 11:12am
Quoting Effax-square
subscribed sometimes going 1 direction could be an interesting strategy...keep posting your result malchi
Tomorrow will be next trade, :-) I have already made 7 trades, we will get to it soon as I will post one trade per 3 days. :-)
"I'm not answering stupid questions."
  • #14
  • Apr 1, 2018 11:25am Apr 1, 2018 11:25am
Quoting tasssy
I don't understand. Your equity curve looks great. Looks like you didn't lose 22 trades continuously. For me, that drawdown is not that bad. Your account will survive with that drawdown if you don't risk too much. I am really baffled with your problem. Maybe I didn't understand or missing something?
Yes, in long-term it can be still good and 22 trades as losers with 1% risk is fine, but because this system has really primitive rules, I know I can do better. And I just want to improve myself for better results. I know trader, who has like max 11 trades like mine 22. So he can risk more, and of course, he has more stable equity curve and is more profitable. With this new system and rules, I think it will be better, but only time will tell me.
"I'm not answering stupid questions."
  • #15
  • Apr 1, 2018 3:15pm Apr 1, 2018 3:15pm
Hi may i ask which indicator you use for the pivots? Thanks!
  • #16
  • Apr 1, 2018 6:50pm Apr 1, 2018 6:50pm
Quoting Ftj
Hi may i ask which indicator you use for the pivots? Thanks!
It's in IC MARKETS MT4 platform
Attached File(s)
File Type: ex4 Pivot Points - Daily (Shifted).ex4   8 KB | 804 downloads
File Type: mq4 Pivot Points - Daily (Shifted).mq4   11 KB | 885 downloads
"I'm not answering stupid questions."
  • #17
  • Apr 2, 2018 12:19am Apr 2, 2018 12:19am
Quoting Woohiye
{quote} So that you can see what other people do and what works for them. Then put together pieces of what works for you to create your own method. This is why you see some super successful trader standing up and showing what he does. But when others try to duplicate it maybe only a small fraction of the people can get anywhere close to that trader's results.
Which trader from the FF is super successful ? Even in the lottery he can win a small fraction of people.
Please excuse the bad English via Google Translate.
  • #18
  • Edited 2:55pm Apr 2, 2018 11:14am | Edited 2:55pm
Attached Image (click to enlarge)
Click to Enlarge Name: 2-GBP-CAD 2.3. 2018.png Size: 33 KB


This one is from 2.3. 2018.

TRADING RULES -

1. PRICE should open and keep above DAILY PIVOT.

2. PRICE should make ENGULFING candle on DAILY PIVOT.

3. STOP LOSS is DAILY PIVOT - TARGET PROFIT is around R2 and here it should be 2:1 PROFIT FACTOR.

4. H1 chart should rise, if not and H1 chart is in some range, I watch H4 and D1 chart and if it's raising, I enter trade too (this rule is very conservative, I just don't enter against big fall).


Attached Image (click to enlarge)
Click to Enlarge Name: Bez názvu.png Size: 24 KB

"I'm not answering stupid questions."
  • #19
  • Apr 2, 2018 1:01pm Apr 2, 2018 1:01pm
cool system
  • #20
  • Apr 2, 2018 2:59pm Apr 2, 2018 2:59pm
Quoting ficibald
cool system
Thank you, I like your equity, cool.
"I'm not answering stupid questions."
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