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SRDC Episode I

  • #141
  • Oct 31, 2006 3:32pm Oct 31, 2006 3:32pm
Quoting OrangeRoshan
Yes it is correct. Because its pipastic.

This may suprise you, increase the SL when you think it will hit earlier.
Tis method is extremelly predictable. I know the ratio thingy. But, that doesnt apply here. It is simply, trading psychology states when S&R are broken, chances of prices to ride along is very high. BUT, there are exception.

Therefore, I think for newbies and big lots traders, it is best to target small pips and increased the chances of winning to over 80%. Remember: The only reason why people lose money in Forex is due to negative pips, but when the pips remain positive, no matter how small, it is still a better chioce. In most methods, pips harvested are not quality pips, here it almost is (this in no way suggest this is a better method or comparing with other method, but its a fact).

Daily Charts? Of course. The margin to harvest 5pips is better than smaller time frames. You might asked why not weekly candles? Well, we dont want to overuse our margin and waited a week to get 5pips do we? Therefore, Daily candles are ideal.

All the above are just my thoughts and experience that help me to be profitable from day 1 (thanks to my prior experience).

I hope that helps. May the force be with you
thanks for the explannation

howard
Regards
  • #142
  • Oct 31, 2006 3:40pm Oct 31, 2006 3:40pm
Quoting GP2X
The backward test result is just soso. You have to use huge stoploss(200 or 300) to make it profit. The weekly filter is very important. I don't have time to test more.
Thanks for the EA.
I have some questions:

What is Weeklyfilter, Weeksasfilter and filterrange?
Change Your Thinking. Change Your Life - JD
  • #143
  • Oct 31, 2006 3:56pm Oct 31, 2006 3:56pm
Before i goto sleep, its 5:47am here, another 13mins before the new candle emerges. Ive finish backtesting and optimising Skyline's version. Using these settings, I came up with 33.3% profits. Not bad!

2
1
23
35
35
5
0
120
15
3

Pair GBPUSD from 10th Oct to Today. Modelling quality is 90%, 1 lot

I believe, many discredit EA doesnt work is due to wrong coding. Discreationary trading is always better, but most traders couldnt accept, the problems lies not necessarily with EA trading but actually with their coding. So, they abonded the whole idea.

The reason is: Ive met and mingled with successful traders with EA doing trades for them profitably. Its passive income and its real.

I saw the visual of this version and it resembles close to my method. However, lets forward test it and see what happens.

Just a thought: What happens when we grow as old as Yoda? Do we still want to trade or have a good EA to do it for us?

Its sleeping time!!
Attached Image
Change Your Thinking. Change Your Life - JD
  • #144
  • Oct 31, 2006 4:12pm Oct 31, 2006 4:12pm
Hey Orange
I demoed your system yesterday and today trading multiple lots. I'm up $4000!!!! I tried this system when I first started to trade a year ago. I thought that I was so brilliant "discovering" this method. I tried it on the 15 minute charts and got pip-jacked!!! I never looked at trading with that method again until I saw this thread. It makes a lot of sense using the daily candles instead of the lower timeframes. Thanks for the lesson. Now my dream of cursing my staff out and slapping my boss is more of a reality.
  • #145
  • Oct 31, 2006 4:26pm Oct 31, 2006 4:26pm
Hi Orange,

You did mention that your hardly use an SL. However, have you noticed or came to a conclusion what average SL is needed for the 3 pairs to reach the targeted 10pips? I know most of us here are still not very comfortable trading without SL in place...

Thanks!
  • #146
  • Oct 31, 2006 5:01pm Oct 31, 2006 5:01pm
Great job on the EA - thank you.

I tried running it live (on a demo) today and midnight passed with no orders being placed. I am using the first version of the EA (not the one with the adjustable broker day). I'm an experienced MT4 user and everything was et up correctly, EA with smiley face, etc.

This same EA does place orders in the Strategy Tester when I run it for yesterday through today, so I'm baffled at this point. I will continue to look at the code...

Thanks again for your good work,
Lou G
Old Benjamin was right
  • #147
  • Oct 31, 2006 5:11pm Oct 31, 2006 5:11pm
Of late i've been doing some re-reading of Tom DeMark's popular book "The New Science of Technical Analysis". In the area of projecting Take Profit targets, Tom has found that aiming for the recent high "Close" (or the recent low's "Close") rather than the recent high "High" (hope that makes sense?) often produces more profitable trades. He calls this area of S/R the "Magnet Price". I have not used this on daily charts, but have regularly traded the use of this S/R "Magnetic Price" off hourly candles. Also, what i've been doing is taking the High MP (mag price) of the last 24 hours with NY 5PM close as the "close" and setting my daily S/R off these areas. I'll do more closer studies/forward tests to see if this will produce good results in this model.


Cheers,
Thom
  • #148
  • Oct 31, 2006 6:42pm Oct 31, 2006 6:42pm
"Also, OrangeRoshan, have you tried using the daily candle open/close instead of the high/low for the S/R? Seems like you are leaving pips on the table by waiting for the high/low to be breached."

OrangeRoshan did mention this as a possibility several posts back - the problem is that MT4 (the demo, at least) will not allow a trade to be opened that is not 5-6 pips away from current price. Maybe there's a middle ground somewhere...
Old Benjamin was right
  • #149
  • Nov 1, 2006 12:04am Nov 1, 2006 12:04am
Quoting Q
Hey Orange
I demoed your system yesterday and today trading multiple lots. I'm up $4000!!!! I tried this system when I first started to trade a year ago. I thought that I was so brilliant "discovering" this method. I tried it on the 15 minute charts and got pip-jacked!!! I never looked at trading with that method again until I saw this thread. It makes a lot of sense using the daily candles instead of the lower timeframes. Thanks for the lesson. Now my dream of cursing my staff out and slapping my boss is more of a reality.
Same here. I used to use a 5mins and 15mins chart, same style however the accuracy is not the same as by using daily chart. Like I said before, 5pips is like 99.9% garanteed. I backtested this method based on daily candle only in sept06, the result :

GBP/USD = 90% of the time 20pips target hit.
EUR/USD = 90% 10pips hit.

Now what is our major target is only 5pips/pair? Thats right...the unswer is 99.9% success.
I Love Forex Factory!
  • #150
  • Nov 1, 2006 12:15am Nov 1, 2006 12:15am
Quoting Q
Hey Orange
I demoed your system yesterday and today trading multiple lots. I'm up $4000!!!! I tried this system when I first started to trade a year ago. I thought that I was so brilliant "discovering" this method. I tried it on the 15 minute charts and got pip-jacked!!! I never looked at trading with that method again until I saw this thread. It makes a lot of sense using the daily candles instead of the lower timeframes. Thanks for the lesson. Now my dream of cursing my staff out and slapping my boss is more of a reality.
LOL, Never Never Never Give UP!

Pipastic!!
Change Your Thinking. Change Your Life - JD
  • #151
  • Nov 1, 2006 12:21am Nov 1, 2006 12:21am
Quoting wallym
Hi Orange,

You did mention that your hardly use an SL. However, have you noticed or came to a conclusion what average SL is needed for the 3 pairs to reach the targeted 10pips? I know most of us here are still not very comfortable trading without SL in place...

Thanks!
Yes, of course. I was waiting for someone to ask me this.

GBPUSD is the most volatile of all, 30-50sl should do it
EURUSD is amlost like cable but a bit sober
AUDUSD is really downunder, 25-35sl usually is ok.

However, remember when you are aiming 5pips only, try and trade on Monday & friday (except this friday) to harvest maximum pips. It might help you to recover somelosses just in case the pairs went into extacy and stooped your sl.

May the force be with you
Change Your Thinking. Change Your Life - JD
  • #152
  • Nov 1, 2006 12:23am Nov 1, 2006 12:23am
Quoting Lou G
Great job on the EA - thank you.

I tried running it live (on a demo) today and midnight passed with no orders being placed. I am using the first version of the EA (not the one with the adjustable broker day). I'm an experienced MT4 user and everything was et up correctly, EA with smiley face, etc.

This same EA does place orders in the Strategy Tester when I run it for yesterday through today, so I'm baffled at this point. I will continue to look at the code...

Thanks again for your good work,
Lou G
Nah, at last more help coming. Take a look at skyline's version also and i think it came the closest to the method.

Thanks everyone in advance.
Change Your Thinking. Change Your Life - JD
  • #153
  • Nov 1, 2006 12:33am Nov 1, 2006 12:33am
Quoting accrete
Of late i've been doing some re-reading of Tom DeMark's popular book "The New Science of Technical Analysis". In the area of projecting Take Profit targets, Tom has found that aiming for the recent high "Close" (or the recent low's "Close") rather than the recent high "High" (hope that makes sense?) often produces more profitable trades. He calls this area of S/R the "Magnet Price". I have not used this on daily charts, but have regularly traded the use of this S/R "Magnetic Price" off hourly candles. Also, what i've been doing is taking the High MP (mag price) of the last 24 hours with NY 5PM close as the "close" and setting my daily S/R off these areas. I'll do more closer studies/forward tests to see if this will produce good results in this model.


Cheers,
Thom
Yes, right on target Doug!

I sometimes use this method when I know market is ranging and candles is simply to long. The thing about S&R sre, when it penetrates it penetrates, but when it doesnt, it usually stay right on the border. Thats why TP is very viable when your entry is from yesterdays open or close.

Lastnyte, a padawan tried this method on GBP which is not ranging YET, his sell orders got triggered at 1.8955. When he uses the support (1.8960), his trade wont get triggered. The price went Superman, up up up!

Still, its worth exploring. For now only when the market is in indecision that Dmark method come useful.

p/s Imagine Yoda married to a Vulcan (Mr. Spock's sister)?
Change Your Thinking. Change Your Life - JD
  • #154
  • Edited 2:12am Nov 1, 2006 12:37am | Edited 2:12am
Quoting PipRipper
What is a "QUALITY PIP"?

I have never heard that term before.

Also, OrangeRoshan, have you tried using the daily candle open/close instead of the high/low for the S/R? Look at my reply to accrete.


http://docs.google.com/View?docid=dcrg7fj_10czf5mr


Seems like you are leaving pips on the table by waiting for the high/low to be breached.
Excellent! Quality pips are pips that are perdictable and consistent. We use the term alot, dunno about others.
Change Your Thinking. Change Your Life - JD
  • #155
  • Nov 1, 2006 12:57am Nov 1, 2006 12:57am
Quoting Najib the Newbie
Same here. I used to use a 5mins and 15mins chart, same style however the accuracy is not the same as by using daily chart. Like I said before, 5pips is like 99.9% garanteed. I backtested this method based on daily candle only in sept06, the result :

GBP/USD = 90% of the time 20pips target hit.
EUR/USD = 90% 10pips hit.

Now what is our major target is only 5pips/pair? Thats right...the unswer is 99.9% success.
TRUE!!
Change Your Thinking. Change Your Life - JD
  • #156
  • Nov 1, 2006 2:10am Nov 1, 2006 2:10am
Thanks Orange. Much appreciated.

Quoting OrangeRoshan
Yes, of course. I was waiting for someone to ask me this.

GBPUSD is the most volatile of all, 30-50sl should do it
EURUSD is amlost like cable but a bit sober
AUDUSD is really downunder, 25-35sl usually is ok.

However, remember when you are aiming 5pips only, try and trade on Monday & friday (except this friday) to harvest maximum pips. It might help you to recover somelosses just in case the pairs went into extacy and stooped your sl.

May the force be with you
  • #157
  • Nov 1, 2006 4:52am Nov 1, 2006 4:52am
Im suprised, no one ask me about using trend lines with this method eventho in my document states S, R & Trend lines.

Well, here it is:

http://www.forexfactory.com/forexfor...951#post129951

Learn it from the Master Jedi himself. Jedi ROB Booker!

Trendlines will help you reap more pips than you normally do. Not many have the discipline to follow it.

May the trend be your friend!
Change Your Thinking. Change Your Life - JD
  • #158
  • Nov 1, 2006 1:59pm Nov 1, 2006 1:59pm
Hello Pipster.

As usual, another minimum target got hit by the 3 monkeys!

GPBUSD: Resistance 5pips
EURUSD: Resistance 5pips
AUDUSD: Resistance 5pips

A total of 15pips

As I type this, the pairs are bullish, up & up like superman... Each pair will pass over 20pips minimum as Dollar is getting weaker. Watch this Friday, Dollar will jump the Grand Canyon!

Pipastic isnt it?
Change Your Thinking. Change Your Life - JD
  • #159
  • Nov 1, 2006 2:29pm Nov 1, 2006 2:29pm
O,

Tight squeeze on the AUD lasnight. I lost 20p on this one lasnight setting my entry 7 pips from the high instead of 2. How confident are you on 1 or 2 pips from the HL as the entry. Also what are your thoughts on the ASK/BID and the spread for this method. I know you state 1pip+ spread but do you also wait for the ask/bid to clear the HL then 1pip+spread. I appreciate your help.

FJedi

Quoting OrangeRoshan
Good Question! (eyeing on the 600sl?) lol

Set via f8 on the period separator and you will see a vertical dotted line showing the week days ending and starting.

I dunno about other brokers, but on my IBFX platform, between friday & Monday, there will be 2 dotted lines with 2 candles on it. Sometimes the candles are on the lines or inside the lines. It doesnt matter. Get the smallest candle and straddle on the S&R. Chances of hitting both are extremelly high.

I will go over in more details on Monday trading with SRDC on my next next post.

EA programmers, can we incoperate this in our EA when the 1st objective is clear? Traders with SRDC will loooooove monday!!

Welcome to Hapi Pipland!!
Stacking pips since 2002
  • #160
  • Edited 3:07pm Nov 1, 2006 2:52pm | Edited 3:07pm
Quoting forexjedi
O,

Tight squeeze on the AUD lasnight. I lost 20p on this one lasnight setting my entry 7 pips from the high instead of 2. How confident are you on 1 or 2 pips from the HL as the entry. Also what are your thoughts on the ASK/BID and the spread for this method. I know you state 1pip+ spread but do you also wait for the ask/bid to clear the HL then 1pip+spread. I appreciate your help.

FJedi
Lastnyte trade on AUDUSD was around 52pips. I dunno how you lost 20pips unless you have a SL less than 30pips.
Anyway, I use 1-2pips + spread (3pips).

Say Resistance is 0.7701. My Pending Stop Buy is 0.7701 + 2 + 3 = 0.7706
Lastnyte I got the full pips as my TL is 35pips. I made pips while I was sleeping.

Draw trend line and watch the trend direction. When the trend is upwards, which is the case now, and with fundamentals; Dollar weakening and Down under economy is getting stronger, especially with possible Interest Rates hike, AUD is a sure Up Up and away!! I know its near to May High, this friday when dollar's data is weak, expect the croc to rise on the bay.

AUDUSD is a very sober pair, movement is not erotic, just like their crocordiles, friendly bunch!! Traillock of 35 should get you maximum pips or at least a winning trade at the end.

I hope my explaination makes Aussie dollar not only Cents.
Change Your Thinking. Change Your Life - JD
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