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Sedona- A system for inactive hours

  • #61
  • Apr 26, 2007 6:06pm Apr 26, 2007 6:06pm
If you make yaself stick to the rules and have some patience then this must be the easiest way to make money on the forex..love this method!
  • #62
  • Apr 27, 2007 12:45pm Apr 27, 2007 12:45pm
Thanks for sharing this system. Quick question: If both sell stops and buy stops are placed (price went O/B and O/S during active sessions) and one side is hit, do you cancel the other side? For example: I set buy stops and sell stops and my sell stop(s) are hit and price starts heading down to the 62ma. Do I now cancel my buy stops or leave them in case price drops that far and the long trades are put on?

Thanks
  • #63
  • Apr 27, 2007 12:49pm Apr 27, 2007 12:49pm
Quoting wcalem
Thanks for sharing this system. Quick question: If both sell stops and buy stops are placed (price went O/B and O/S during active sessions) and one side is hit, do you cancel the other side? For example: I set buy stops and sell stops and my sell stop(s) are hit and price starts heading down to the 62ma. Do I now cancel my buy stops or leave them in case price drops that far and the long trades are put on?

Thanks
I am a conservative trader, so yes I'll cancel the other side. Thanks for asking.
Making pips is easy, holding 'em is hard - Pipsopolis
  • #64
  • Apr 27, 2007 12:53pm Apr 27, 2007 12:53pm
sahamdarjoz,

how did you make out for the entire week with this system?

Quoting sahamdarjoz
I am a conservative trader, so yes I'll cancel the other side. Thanks for asking.
Life is too short to have anything but delusional notions about yourself.
  • #65
  • Apr 27, 2007 3:07pm Apr 27, 2007 3:07pm
Ok, The week is finished. you may see the results here:
I added a spread of 8 pips for GJ and 2 pips for cable. GJ is pretty profitable, yet we were not so lucky with cable. Next week I am going to breakeven or bank the profit in 15-20 pips for cable. As I saw in backtests, it will reduce the number of losses significantly.
On Thursday I mark cable as a loss although with some platforms you may gain the profit as it turned 1 pip below the EMA62, but as traders we should be honest, eh? I lost and I declare it. Have a great weekend. I try to post GJ backtests on weekend.
Attached Image (click to enlarge)
Click to Enlarge Name: results.jpg Size: 33 KB
Making pips is easy, holding 'em is hard - Pipsopolis
  • #66
  • Apr 28, 2007 1:25am Apr 28, 2007 1:25am
Maybe we have to shift the entry and exit points towards the top/bottom.
So, instead of entering at 0%,10% and 20% from top/bottom
and exit at EMA, we enter at -5%, 5% and 15% and exit at EMA - 5%
or something like this.
Actually I did just that on Thursday for cable and I had one trade
closed at +17 pips. I saw u had 3 trades probably triggered after cable reversed
just before touching the EMA.
  • #67
  • Apr 28, 2007 7:55am Apr 28, 2007 7:55am
Quoting motanu
Maybe we have to shift the entry and exit points towards the top/bottom.
So, instead of entering at 0%,10% and 20% from top/bottom
and exit at EMA, we enter at -5%, 5% and 15% and exit at EMA - 5%
or something like this.
Actually I did just that on Thursday for cable and I had one trade
closed at +17 pips. I saw u had 3 trades probably triggered after cable reversed
just before touching the EMA.
In my experience, most of the times the price could not break the highest or the lowest point.
About Cable on Thu. as I said before in my charting platform it did not touch the EMA and turned by just 1 pip, although in my trading platform it did touch and my trades was profitable.
Making pips is easy, holding 'em is hard - Pipsopolis
  • #68
  • Apr 28, 2007 8:00am Apr 28, 2007 8:00am
Backtest results for GJ:
The backtest was candle by candle on Forextester with NF 1min data:

% win: 60%
average win: 30 pips
avg loss: -23 pips

I backtested Mar 20- Apr 20 using money managment techniques with the same software. The system turned $ 10,000 to $ 10,632 in a month with the highest drawdown of 4%.
Making pips is easy, holding 'em is hard - Pipsopolis
  • #69
  • Apr 28, 2007 2:15pm Apr 28, 2007 2:15pm
Quoting sahamdarjoz
Backtest results for GJ:
The backtest was candle by candle on Forextester with NF 1min data:

% win: 60%
average win: 30 pips
avg loss: -23 pips

I backtested Mar 20- Apr 20 using money managment techniques with the same software. The system turned $ 10,000 to $ 10,632 in a month with the highest drawdown of 4%.
Im very confident in this system, especially because it is suggested by Schlossberg. So we should keep using it and develop this thread continously.Im sure its working very nicely. Actually for Thu night trade on GU if you would have kept the long trades at the bottom you would have made a very nice profit. I entered long on GU thu night and then I forgot about them, so during Friday london session they went up really nicely.

I know I was lucky this time, they could have gone down, but anyway I love this strategy, simple and efficient.
We leave no soldier behind.
  • #70
  • Apr 28, 2007 2:45pm Apr 28, 2007 2:45pm
Do you think this strategy could be used in a range bound market like most of the paris during the Asian session?
  • #71
  • Apr 28, 2007 3:09pm Apr 28, 2007 3:09pm
Forex is a traders dream in that it obeys laws of support and resistance with amazing results unless the trend is modified by completely unexpected news, that continues to create problems for the currrency (as in the USD at this point !)

what you are observing by the bottoming and then subsequent rising of the RSI is the currency hitting is short term trend bottom or top (im attaching a 10 day chart of UJ so you can see it more clearly)

the tops and bottom of a currencies move are deliniated by an indicator know as the LINEAR REGRESSION CHANNEL, which is essentially parallel trend lines with a parallel midpoint line also. These lines serve as extroadinarily powerful support and resistance lines, while the middle line serves the same purpose when the currency is in movement towards the top or bottom !

Now, the RSI is simply a graphical representation of the visual representation of these lines --- when the RSI hits bottom and starts up, you are simply witnessing a "bounce" off of support (the lower LRC), and so on for the top line.

when setting TP points, the pros will use the fib regressions and extensions as tp points, in combination with the price channels and once a trend is established, the longer range charts and timeframes to confirm ! While the intraday pivots are important points, the overpowering one to watch for is the DMH or the DML, depending on the direction of price movement !

while youre observations are valid, your tp points are woefully short of the mark and it behooves you to study the fibs to ascertain how to pull more from the trade !

on the chart I have attached, the top and bottom parallel red lines represent the MAIN trend direction and LRC for the pair, while the white and blue (red, white and blue -- anyone guess im an american ?) channels represent the secondary and tertiary channels which show the movement of the currency WITHIN its main channel !

I wish to point out one problem with ALL mechanical systems that i have seen and that is they are good in a good market and often horrible in a bad one --- when using mechanical systems, I hope all your markets are good (My charts are set at 2300 GMT, which works for me as I trade all three markets in one day )!

enjoy and trade well

mp
Attached File(s)
File Type: zip UJ 240 10 day.zip   51 KB | 440 downloads
  • #72
  • Apr 28, 2007 3:15pm Apr 28, 2007 3:15pm
Quoting gagiul
Im very confident in this system, especially because it is suggested by Schlossberg. So we should keep using it and develop this thread continously.Im sure its working very nicely. Actually for Thu night trade on GU if you would have kept the long trades at the bottom you would have made a very nice profit. I entered long on GU thu night and then I forgot about them, so during Friday london session they went up really nicely.

I know I was lucky this time, they could have gone down, but anyway I love this strategy, simple and efficient.
We might do more backtesting and see if we can let the positions run after the pair sessions open.
Making pips is easy, holding 'em is hard - Pipsopolis
  • #73
  • Apr 28, 2007 3:16pm Apr 28, 2007 3:16pm
Quoting et_phonehome_2
Do you think this strategy could be used in a range bound market like most of the paris during the Asian session?
It worked better on GBP/JPY as it is in afternoon of NY session. For cable, you are right it is in Asian session and sometimes it is really BORING! But profitable, as trading always is: Boring
Making pips is easy, holding 'em is hard - Pipsopolis
  • #74
  • Apr 28, 2007 3:22pm Apr 28, 2007 3:22pm
Quoting mparker

I wish to point out one problem with ALL mechanical systems that i have seen and that is they are good in a good market and often horrible in a bad one --- when using mechanical systems, I hope all your markets are good (My charts are set at 2300 GMT, which works for me as I trade all three markets in one day )!

enjoy and trade well

mp
Thanks for Sharing Parker,
bout the problem with mechanical testing, the problem is inside us: we always want to trade! There is no such a thing as a hybrid system. The systems are either trend follower or ranging systems and guess what if you apply a trend following system to a range market just because you feel like trading: you will loose. period.
We have to find what kind of system we have, then find what kind of market phase we are in and then trade. Then we have a higher chance of winning.
Making pips is easy, holding 'em is hard - Pipsopolis
  • #75
  • Apr 28, 2007 3:23pm Apr 28, 2007 3:23pm
Quoting gagiul
Im very confident in this system, especially because it is suggested by Schlossberg.
It went under a total makeover and it is totally different from what Boris introduced. It is my system
just kidding!
Making pips is easy, holding 'em is hard - Pipsopolis
  • #76
  • Apr 28, 2007 6:39pm Apr 28, 2007 6:39pm
did you hit the ema on Friday to close trade or did you close it manually? If the later, what time?
  • #77
  • Apr 28, 2007 8:01pm Apr 28, 2007 8:01pm
Quoting sahamdarjoz
Thanks for Sharing Parker,
bout the problem with mechanical testing, the problem is inside us: we always want to trade! There is no such a thing as a hybrid system. The systems are either trend follower or ranging systems and guess what if you apply a trend following system to a range market just because you feel like trading: you will loose. period.
We have to find what kind of system we have, then find what kind of market phase we are in and then trade. Then we have a higher chance of winning.
===============================================

actually i have one ---- me, working 20 hours a day !!

it works in both ranging and trending markets, and has two college age daughters who make sure i keep doing it !

LOL

enjoy and trade well

mp
  • #78
  • Apr 28, 2007 10:08pm Apr 28, 2007 10:08pm
Quoting wcalem
did you hit the ema on Friday to close trade or did you close it manually? If the later, what time?
I do close manually on Fridays at 1500 EDT, due to my broker's spread widening
Making pips is easy, holding 'em is hard - Pipsopolis
  • #79
  • Apr 28, 2007 10:09pm Apr 28, 2007 10:09pm
Quoting mparker
===============================================

actually i have one ---- me, working 20 hours a day !!

it works in both ranging and trending markets, and has two college age daughters who make sure i keep doing it !

LOL

enjoy and trade well

mp
wow. nice job
Making pips is easy, holding 'em is hard - Pipsopolis
  • #80
  • Apr 29, 2007 1:53pm Apr 29, 2007 1:53pm
Quoting sahamdarjoz
I do close manually on Fridays at 1500 EDT, due to my broker's spread widening

Thank you. I really like this system and did well w/ it since you posted. My targets have been off from yours a pip or two, but I guess each broker is different.
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