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Please suggest a simple & effective Method/System of "Trading System" Forum to newbie

  • #21
  • Jul 3, 2007 6:41am Jul 3, 2007 6:41am
Quoting brentmack
I


If I get the EA up and running, I'll try to report back with my results for everybody.
That sounds great Brentmack. Being so new to this business I doubt that I can make a significant contribution, but this method seems ideal for someone like me as it is not techically demanding and I would really appreciate being kept in touch,

Cheers
  • #22
  • Jul 5, 2007 8:13am Jul 5, 2007 8:13am
Quoting BeachBum
Not so..............I quickly put together a spreadsheet for the first six months of 2007 for EUR/USD, using a startegy of buying at 5PM ET and selling 23.9 hours later...
BB, I always try to follow your thoughts, I have found them very enlightening. My quick question is pretty mundane... What is the easiest way to get the info into a spreadsheet, ie, what has been your best source of data for doing a study like this.

Thanks
  • #23
  • Jul 5, 2007 8:35am Jul 5, 2007 8:35am
Whilst you are learning you can 'earn' while you learn. Follow Traex's Harmonic Wave Journal thread and you'll do well.
  • #24
  • Edited 9:01am Jul 5, 2007 8:45am | Edited 9:01am
Quoting brentmack

Now there does seem to be two different approaches discussed so far. Bhale said to check in from time-to-time throughout the day - and you'll find yourself in profit. While BeachBum runs the trades to 4:59 PM, EST and re-loads at 5:00 PM, EST.
I have been running a demo account on this idea for the week and I am currently around the break even point. A few thoughts on the EA. Would it not be better to simply reset the SL instead of buying and selling it each day? I can see buying if you are out of it, but it seems to me a waste of pips to sell and immediately sell it.

Also is there a simple way to weight this without distorting the hedge? In my limited time here, I have totally accepted to not go against the trend, so I have a hard time going long in a down trend. So maybe if it is in a down trend, why not say halve the SLs for those in a down trend which would be the USDXXX pairs.

And what about the other sets of pairs that fit into this concept. With diversity being a safety factor, would pairing either AUDUSD or NZDUSD with USDCAD work better? Maybe with using BB spreadsheet method, we can determine which set of pairs works best.

I know BB believes in testing out these things and so do I, and if I can learn the easiest way to plug in the data, I would be happy to do all the conceptual testing. But it would have to be quick because I head out into the backwaters of Minnesota Friday and I, for once, will not have single electronic device on me for a week. Kinda of scarey ;-)
  • #25
  • Jul 6, 2007 3:56am Jul 6, 2007 3:56am
Quoting muchtolearn
I have been running a demo account on this idea for the week and I am currently around the break even point. ;-)
Hi muchtolearn,

Can I ask did you allow the trades to run the full 24hrs because I've been doing a bit better than that (demo) following BBs suggestion and closing down losing trades. In all cases I managed to close them when they were rallying and no doubt this improved the result. I didn't try the last couple of days as I thought that low volume over the holiday period might skew the results.
  • #26
  • Jul 6, 2007 4:46am Jul 6, 2007 4:46am
Quoting Vantage
Whilst you are learning you can 'earn' while you learn. Follow Traex's Harmonic Wave Journal thread and you'll do well.
False.

No system will make you earn any money while you learn, quite the opposite actually. The trader's expertise is far more important than the system when it comes to profitability.

For your account's sake, dont trade live while you learn. Or at most, trade nano-lots.
  • #27
  • Jul 6, 2007 5:10am Jul 6, 2007 5:10am
Quoting Faith
Dear trey,

Thanks for your recommendation.

Jacko's method is good but it seems too idea for a newbie.

Also, this method needs much more intuition which needs more trading experience and it is not easy to be catched by a newbie, like me.

However, I agree that an experience traders would finally use jacko's method.
I think. its the easiest way to trade? simple and effective.

Add an indicator for looking at momentum and you should be ok.
  • #28
  • Jul 8, 2007 7:05pm Jul 8, 2007 7:05pm
Quoting Faith
Dear Friends in FF,

I have read most threads of 5 stars trading strategys and methods form "Trading System" Forums of FF, but certain systems have more than 3 indicators and some of them are new to me, eg. vages tunnel and sidus. (I traded stocks before and know only traditional TA indicators, like MACD, Stoch., MAs, William %R, RSI, as well as the concept of triple-timeframes)

Can any friends suggest a relatively simple but effective method/system from "Trading System" Fourm to a newbie, like me. It is better for this method/system to have less then 3 traditional indicators and less then 3 timeframes.

Due to full of frustration in past and present jobs, I am eager to learn and trade for a living (not for rich).

Thanks a lot in advance.
Aren't you the same Faith that wrote the Cornflower System?
  • #29
  • Edited 12:20pm Jul 10, 2007 11:44am | Edited 12:20pm
Quoting bhale
Buy the following pairs
EURUSD
GBPUSD
USDCHF
USDJPY

Sometime during the next trading day, your account will show a profit. CLose all trades, bank the profit, and start again. You will have drawdowns, but you will also have profits. Hang in with the drawdowns. They won't get too large because this is simply a dollar hedge.
I haven't done my proposed EA yet. I expect to get around to it once I settle on the approach and its parameters. I've been demo trading this method (Bhale's style) on a casual basis (not every day), but it does seem to regularly generate a profit. I tend to shoot for 1%, or a little more, of my account balance and then re-start it.

But what about those drawdowns? Hmmm... Another brainless profit opportunity? Perhaps!

I believe I'm going to start testing going both long and short with these pairs and see what happens. Each foursome needs to be considered to be one unit - as originally set forth by Bhale.

So if you're trying this out one way - you might want to give it a shot both ways (in a demo account, of course).

Bhale's method probably isn't going to make you rich (although that would be okay), but it looks like it will separate you from that dreaded 95% group.

And that's what you're looking for, right?
  • #30
  • Jul 10, 2007 11:49am Jul 10, 2007 11:49am
Quoting clockwork71
Aren't you the same Faith that wrote the Cornflower System?
Cornflower was presented by Felicia.
  • #31
  • Jul 10, 2007 5:09pm Jul 10, 2007 5:09pm
Hi everyone,
I'm a semi-newbie as I have demo traded for over a year now and have a goal of live trading by september 1st. There are many brilliant posters on here and I amazed at the knowledge of the posters here. Any traders in Minneosta or the Upper Midwest here? Look forward to interacting with everyone here. And a big Hi and ya betcha from Minnesota.
Push yourself to your fullest potential!!
  • #32
  • Jul 11, 2007 2:32am Jul 11, 2007 2:32am
Quoting brentmack
. I've been demo trading this method (Bhale's style) on a casual basis (not every day), but it does seem to regularly generate a profit. I tend to shoot for 1%, or a little more, of my account balance and then re-start it.

But what about those drawdowns? Hmmm... Another brainless profit opportunity? Perhaps!
My lifestyle dictates that I have been testing in very similar fashion with very similar results. One fact that really emerges from a test like this for a newbie like me is what experienced traders have been trying to tell me since I joined this forum ...... the trend really is my friend. Optimal entry is virtually impossible when you simultaneously enter on 4 pairs simultaneously and yet the pairs in strong uptrend finish up in profit and vice versa. It makes me wonder why I've been searching for that magic system with all the fancy indicators.

Incidentally brentmack I would love to learn what those other 'brainless profit opportunities' are.
  • #33
  • Jul 12, 2007 11:09am Jul 12, 2007 11:09am
A few posts ago I speculated about taking advantage of the inevitable draw down, referenced by Bhale, by selling each of the 4 pairs in addition to buying them.

It sounded reasonable in theory (like so many Forex-related ideas do), but I have my doubts about it working in the real world. It really hasn't panned out in the few days since posting the idea.

A main problem is that you pay interest for selling the foursome, while you earn interest in buying and holding the foursome - while waiting for the bottom line to turn positive.

The good news is that Bhale's technique continues to test extremely well - even through some pretty dramatic moves in the last week.
  • #34
  • Jul 12, 2007 2:09pm Jul 12, 2007 2:09pm
My apologies for not responding sooner.............

I am not the most qualified person to ask about Excel useage; it comes very slowly for me, hence the extra time to do my testing. There are excellent online tutorials on how to use Excel. I bought a book years ago that I refer to regularly. Now there are CD and DVD training videos.............the list of resources is lengthy. For me personally, it has been a matter of deciding what I want to do with an xls and then researching how to do it. I use MetaTrader data from Alpari. HTH....all the best with your research and testing!

Quoting muchtolearn
BB, I always try to follow your thoughts, I have found them very enlightening. My quick question is pretty mundane... What is the easiest way to get the info into a spreadsheet, ie, what has been your best source of data for doing a study like this.

Thanks
  • #35
  • Jul 12, 2007 3:36pm Jul 12, 2007 3:36pm
Quoting brentmack

The good news is that Bhale's technique continues to test extremely well - even through some pretty dramatic moves in the last week.
This is also my experience. I am entering between 7.45am - 8.00am GMT (because it suits my lifestyle} and with the exception of today moving into profit very rapidly. I have been using the S/Ls suggested by BB but it is interesting that bhale (who I PMd and who I'm sure wouldn't mind me passing this on} is trading without stoploss and sometimes holding trades for 2/3 days until they come back into profit.
  • #36
  • Jul 12, 2007 4:20pm Jul 12, 2007 4:20pm
Quoting bundubill
trading without stoploss
Recipe for disaster....................
  • #37
  • Jul 13, 2007 11:20am Jul 13, 2007 11:20am
Hi All---About buying these pairs at rollover(swap Time) do you buy when the market closes on Friday? What about Sunday? Why does this system work and how did you come up with it? I've been demo-ing it for a few days and am amazed at the results. Do you close out EXACTLY one day later or whrn you are in profit? If you find you are in a bad position do you wait for that to fix itself before starting the cycle again. Thank you for your help.....Susan
  • #38
  • Jul 14, 2007 6:12am Jul 14, 2007 6:12am
Quoting joiedevivre
Hi All---About buying these pairs at rollover(swap Time) do you buy when the market closes on Friday? What about Sunday? Why does this system work and how did you come up with it? I've been demo-ing it for a few days and am amazed at the results. Do you close out EXACTLY one day later or whrn you are in profit? If you find you are in a bad position do you wait for that to fix itself before starting the cycle again. Thank you for your help.....Susan
Susan -

Good questions... but there are few simple answers - even to something this easy!

I'd certainly start on Sunday, thus getting in 5 trading days per week, rather than just 4. Of course, that could be another one of those things that only appear to make sense. But I doubt that it will hurt.

You can thank Bhale for mentioning this particular hedging technique and why it works. You've simply got a 4-way hedge established with the dollar; 2 buys and 2 sells.

Taken as a whole, this foursome will tend to stay in equilibrium, but will go a little long sometimes and a little short sometimes - like a pendulum.

This is where the basic concept branches out in two different directions, Bhale's and BeachBum's - both of which seem to work.

Bhale buys the foursome at anytime he chooses and takes a peek at them every once in a while at his convenience. If he's hit his profit target, take the profit and start over again. Although you might be riding some nice wave that could make it worth waiting a while.

BeachBum took the idea and ran with it. He had a set buy/sell time each day and developed some good S/L levels for each pair.

Frankly, I don't know which twist of the same idea works better.

So it's wide open to personalize according to your own schedule and other preferences.

Or an EA for both variations!

Thanks for asking your question. It helped me sort out how I might best get an EA or two coded.
  • #39
  • Jul 14, 2007 3:32pm Jul 14, 2007 3:32pm
Quoting BeachBum
I want to finish this "little project". Looking at the 4 Majors from 1-1-2007 thru 6-30-2007, I was able to generate over 1700 total pips profit using the "no-brainer" strategy I outlined earlier. Stop losses were: EUR/USD=50; GBP/USD=80; USD/CHF=60; USD/JPY=55. Buy at 5PM ET, sell at 4:59PM ET. It's a lot of trading for the pips gained, but many traders would probably be happy with an average of 15 pips gained per day, and there is no thought involved: just buy and sell.
I couldn't resist. Because I have an account that provides 'micro' lot trading, I tried this out last week.

Followed the above rules exactly, no deviations!

EUR/USD +133
GBP/USD +204
USD/CHF -102
USD/JPY -94

Total +141.........average 28 pips per day.

These numbers include the spreads.

This is way more fun than visitng a casino or sitting in at the poker table. AND it's educational. I'm going to do this for a while for own amusement.........and I'm not encouraging anyone do the same, this is strictly educational!
  • #40
  • Jul 14, 2007 3:38pm Jul 14, 2007 3:38pm
Quoting brentmack
Or an EA for both variations!
Thanks for asking your question. It helped me sort out how I might best get an EA or two coded.
I would think someone would already have an EA that allowed for opening and closing trades at specific times with a S/L provision. That's all you really need to try this out AND do a backtest. Anyone have this?
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