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  • #1,501
  • Nov 22, 2006 1:17pm Nov 22, 2006 1:17pm
Nice Long Entry. Thank you for sharing. Your system looks simple yet effective. How do you determine Entry & Exit?
  • #1,502
  • Nov 22, 2006 1:31pm Nov 22, 2006 1:31pm
Quoting tkimble
I joined the Forex Factory this morning and I am stunned at all the great ideas. This is a fantastic forum.
I know the feeling, I have been reading here for the last few month, and I am still amazed. This must be the friendliest forum I have seen in a long time!
Steve
  • #1,503
  • Nov 22, 2006 1:35pm Nov 22, 2006 1:35pm
Quoting EATrader
Nice Long Entry. Thank you for sharing. Your system looks simple yet effective. How do you determine Entry & Exit?
My entire trading system is posted at the beginning of this thread.
  • #1,504
  • Nov 22, 2006 1:39pm Nov 22, 2006 1:39pm
Quoting tkimble
My entire trading system is posted at the beginning of this thread.
The basic idea of my system is Stop and Reverse (SAR). I try to stay in the market constantly with the goal of getting a 200 PIP profit. I love riding the trend but always trying to protect the 200 PIP profit one achieved. I always use a 50 PIP trailing stop...

Tkimble
  • #1,505
  • Nov 22, 2006 2:22pm Nov 22, 2006 2:22pm
Quoting tkimble
The basic idea of my system is Stop and Reverse (SAR). I try to stay in the market constantly with the goal of getting a 200 PIP profit. I love riding the trend but always trying to protect the 200 PIP profit one achieved. I always use a 50 PIP trailing stop...

Tkimble
Why do you choose to use a 50 pip trailing stop instead of 20? Is it because of the 200 goal? Wouldnt you like to lock in your profits?
  • #1,506
  • Nov 22, 2006 2:29pm Nov 22, 2006 2:29pm
Quoting shewill
Why do you choose to use a 50 pip trailing stop instead of 20? Is it because of the 200 goal? Wouldnt you like to lock in your profits?
I only use a 50 PIP stop on the 30 Min bar chart and yes, becase I am trying to get my 200 PIP goal. The period of time being used as a bar chart should dictate your stops. The larger the period of time, the larger the stop but I would never go beyond the 50 PIPs. The volatility of the market being traded is also a consideration. For example, the GBP/UDS or USD/CHF markets are volatile and require a less restrictive stop-loss paradigm or larger stops.

Hope this helps...

Tkimble
  • #1,507
  • Nov 22, 2006 2:57pm Nov 22, 2006 2:57pm
So,to sumarize your system:

RSI(45)>50 - you go long
RSI(45)<50 - you go SHORT
profit=200pis - OUT
traling stop=50 -OUT

It is very easy to make an EA out of it and back test it

What's the ATR(20) purpose(it is on the graph posted)?

cheers,
mike
  • #1,508
  • Nov 22, 2006 3:01pm Nov 22, 2006 3:01pm
Sorry, I just saw your other thread..so no need to reply

Mike
  • #1,509
  • Nov 22, 2006 3:02pm Nov 22, 2006 3:02pm
Quoting vdgraaf
So,to sumarize your system:

RSI(45)>50 - you go long
RSI(45)<50 - you go SHORT
profit=200pis - OUT
traling stop=50 -OUT

It is very easy to make an EA out of it and back test it

What's the ATR(20) purpose(it is on the graph posted)?

cheers,
mike
Close but no quite. In addition to what you have correctly stated, the real-time price must be 5 pips above the 5 SMA average for a long or 5 pips below the SMA for a short signal on a 30 min chart.

Hope this helps...

Tkimble
  • #1,510
  • Nov 22, 2006 3:06pm Nov 22, 2006 3:06pm
Quoting vdgraaf
So,to sumarize your system:

RSI(45)>50 - you go long
RSI(45)<50 - you go SHORT
profit=200pis - OUT
traling stop=50 -OUT

It is very easy to make an EA out of it and back test it

What's the ATR(20) purpose(it is on the graph posted)?

cheers,
mike
The ATR is used to calculate lot size for each trade and takes into consideration the following parameters:

1. Account size ($$$$$)
2. Market Volatility (ATR)

I have provided more explanation earlier in the thread together with the acutal ATR calculation in Zipped MS Excel format...

Tkimble
  • #1,511
  • Nov 23, 2006 2:34am Nov 23, 2006 2:34am
[quote=tkimble]Close but no quite. In addition to what you have correctly stated, the real-time price must be 5 pips above the 5 SMA average for a long or 5 pips below the SMA for a short signal on a 30 min chart.



[/QUOTE

Would appreciate if you please describe the significance of this step. It is, manytimes not easy to get the actual price and 5 SMA like this.

One should not enter the trade without this condition.

Regards
  • #1,512
  • Nov 23, 2006 8:22am Nov 23, 2006 8:22am
[quote=kapanil]
Quoting tkimble
Close but no quite. In addition to what you have correctly stated, the real-time price must be 5 pips above the 5 SMA average for a long or 5 pips below the SMA for a short signal on a 30 min chart.



[/QUOTE

Would appreciate if you please describe the significance of this step. It is, manytimes not easy to get the actual price and 5 SMA like this.

One should not enter the trade without this condition.

Regards
You are not always going to get exactly 5 PIPs from the 5 SMA. That is why I said that sometime it can be tricky. During the infrequent times that you must execute a trade (normally once or twice a week) you must be watching the 5 SMA and resetting your entry orders real-time or enter with market orders. This is really the only time when you have to work with this system and fits my trading style of not liking to stare at the market all day. I glance act the market maybe every hour until the price nears the 5 SMA, then I pay attention....

Hope this helps,

Tkimble
  • #1,513
  • Nov 23, 2006 8:38am Nov 23, 2006 8:38am
ss
Quoting tkimble
While evaluating and back testing systems is important, nothing compares to acutal results. I joined the Forex Factory this morning and I am stunned at all the great ideas. This is a fantastic forum.

I will post my actual trading results as threads based upon the system that I detailed this morning.

The current long GBP/USD position was entered on 17 Nov 06 at 0930.

Tkimble
You mentioned in Post #11 that you have a zipped file that explains it all, but I don't see any?? Please advise, thanks.
Hercs
  • #1,514
  • Nov 23, 2006 8:45am Nov 23, 2006 8:45am
Quoting Hercs
ss

You mentioned in Post #11 that you have a zipped file that explains it all, but I don't see any?? Please advise, thanks.
Zipped attached...
Attached File(s)
File Type: zip ATR.ZIP   2 KB | 385 downloads
  • #1,515
  • Nov 23, 2006 9:35am Nov 23, 2006 9:35am
Quoting tkimble
Zipped attached...
Much appreciated, thanks.
Hercs
  • #1,516
  • Nov 23, 2006 9:56am Nov 23, 2006 9:56am
TKimble, I cannot for the life of me reproduce your RSI_45 as per your first post?

Based on what I have there was no ways that I could have taken the trade where you did.

Mine was long from the 15h30 candle on the 17th @ 1.8915 which would have produced an excellent run to say the least.

Attached is mine for your perusal and comments please.
Attached Image
Hercs
  • #1,517
  • Nov 23, 2006 11:33am Nov 23, 2006 11:33am
Hercs,
are you using the standard RSI that MT4 comes with. All you need to do is Insert-->Indicators-->Oscillators-->Relative Strength Index and select a period of 45 applied to the close. That should give you the right thing. Let me know if that works or not.

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #1,518
  • Nov 23, 2006 9:11pm Nov 23, 2006 9:11pm
Quoting Hercs
TKimble, I cannot for the life of me reproduce your RSI_45 as per your first post?

Based on what I have there was no ways that I could have taken the trade where you did.

Mine was long from the 15h30 candle on the 17th @ 1.8915 which would have produced an excellent run to say the least.

Attached is mine for your perusal and comments please.
The beginning of the 0930 bar produced an RSI that was greater than 50 almost fromt the outset or at the beginning of the 30 minute bar. This is where the skill of the trader comes to play. I took the trade exactly the first time a 50 or greater RSI was produced. This is bit risky and I could have waited till the end of the 30 min bar to take the trade. But either way, I still would have achieved the 200 PIP target...

Hope this helps,

Tkimble
  • #1,519
  • Nov 24, 2006 3:13am Nov 24, 2006 3:13am
A big upward movement on eur/usd and gbp/usd happened in few minutes.Just like this without any market news and while everyone was talking about an overbaught market and expecting some correction before resuming the up trend. It happened anyway! I want to know who should we react to such unexpected movement?
Well..the trend is bullish none can disagree with this but who has the balls to long now?! The market is not giving us any chance to go long..no corrections no dips...

Personally, i can't go long now.
What i'm thinking now is that it's Friday! and with the continous rising without correction during whole week, i guess there should be some profit taking towards the end of the day. The question is when to short and catch some pips? Do you know when should we expect profit taking? 1 hour before end of NY session? more or less? I really want to know is there a good chance to catch some pips on the downside and when should we enter?
Thanks
  • #1,520
  • Nov 24, 2006 3:26am Nov 24, 2006 3:26am
This is where breakout stratergies work best. Having a buy stop just above the high of 10th Nov would of got you in nicely. The pound/euro/franc all have been in a nice channel for several months now. Expecting the unexpected is what we all need to be ready for as traders.

Remember that price spends most of its time ranging and very little time trending, so having those brerakouts ready is money in the bank.
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