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Alternative Trend Following- A Journal

  • #1
  • First Post: Edited 8:28pm Jul 23, 2007 2:23am | Edited 8:28pm
Hi all,

Just sharing another system

Select any pair, suggest that you avoid usdjpy though.

Rule:

- Use daily bar.
- If yesterday bar is CLOSES green, go long. If it CLOSES red, go short. Prefably, bar should close below 5SMA, but its up to trader discretion, depends on how you like to evaluate risk.
- Keep adding if you get consecutive bars.
- For SL try to use average daily range for the past 1week or if ur too lazy to count, the low/high of the previous day.

Other notes,
- When in profit, keep a trail, prefably a few pips above yesterdays trading range.
- Risk, up to you though its advisable to keep it at 2%.
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  • #2
  • Jul 23, 2007 2:40am Jul 23, 2007 2:40am
Hi thanks for posting your system. I will surely be testing it. It looks very simple and straight forward. I have tried complicated and elaborated system before but it cannot guarantee results. Maybe yours can. Results means more winners than losersof course..:
But have you got any past results with you ?
Why USDJPY is a no no ? Any reasons ?

Hope you can respond and we all benefit from the profits.
Thanks again.
When the wave comes - jump !!
  • #3
  • Jul 23, 2007 3:05am Jul 23, 2007 3:05am
I cant say how profitable, because there is some level of discretion, to the exits...you'd realise that i only advise on placing trail locks but not exits, coz it really depends on the trader to tell himslef how much is enough. Also there is a small level of discretion to the entries as well.

Drawbacks of this system, it enters early and exits much too early, but im not interested in streamlining it any further.

I was only adivising to avoid UJ coz currently the pair is choppy but by not means stopping anyone from trading it using this system.

Hope you have much success testing the system.

Also reason why i suggest a 2% MM is due to the fact that you WILL get losers on choppy times...it serves as a soft landing for you but once you hit the trend, those daily averaging ups is gonna make you a killing.

regards
Jest
  • #4
  • Jul 23, 2007 3:31am Jul 23, 2007 3:31am
You need to read the extensive posts on Tkimble's "Daily scalping" as your system is very similar if not the same with the addition of a 5sma that appears to have no purpose.I have a problem with people like you posting a method that has been stolen from someone else and modified slightly. I certainly won't trade it but many newbies could loose a lot of money trying something like you propose.Prove me wrong buy showing some real trades and results.
  • #5
  • Jul 23, 2007 3:40am Jul 23, 2007 3:40am
Quoting edge540
You need to read the extensive posts on Tkimble's "Daily scalping" as your system is very similar if not the same with the addition of a 5sma that appears to have no purpose.I have a problem with people like you posting a method that has been stolen from someone else and modified slightly. I certainly won't trade it but many newbies could loose a lot of money trying something like you propose.Prove me wrong buy showing some real trades and results.
Did i say that it is MY system? I din not request for you to trade it in the first place, im basically SHARING what i BELIEVE is feasible and have no intentions to take credit from it now that you mentioned that its TKimbles system. How many system out there has roots to some other system?

If you here just to flame...then please, just buzz off, failure or success of trading does not depend on a system, if you've been trading long enough you should know better, to newbies, please avoid this system coz i think its too simple for you to follow, oh and avoid my advise on the 2% risk management too. Oh the 5SMA(weekly dynamic TL) really had no use other than to gauge price action with it, i believe i have mentioned that.

To TKimble,

i have no idea this belonged to you, hope you do not take any offense.
  • #6
  • Jul 23, 2007 3:46am Jul 23, 2007 3:46am
"Sharing what I believe is feasible" exactly my point,offer use something concrete and tested or you loose credibility.
  • #7
  • Edited 4:11am Jul 23, 2007 3:59am | Edited 4:11am
Credibility...is not in my best interests. I just wanna give back something to FF, coz it has given me much...I repeat if you dont like it, just go away. This will be the last time i answer to your kind. You have seen the system, im not spoon feeding my evaluations to you.

edge540: I have just read TKimbles thread as well, thanks to you, its similar, not the same tho, guess great minds think similar, I'll repeat his words, "go paper trade it..." shoooo, ah i forgot you're not interested in trading it, shoo shoo.
  • #8
  • Jul 23, 2007 4:42am Jul 23, 2007 4:42am
Everyone has their own trading methods and believes. They have the right to post their strategies. No need to prove success by testing and providing proof of live or demo trading results. It is the reader's responsibility to evaluate the system. New readers shoud atleast know that they cannot jump into someone's advise and lose their money and blame at the trader's thread. No sensible trader will instruct a reader to follow his method. Jest1081, keep on with your postings please.

Quoting jest1081
Credibility...is not in my best interests. I just wanna give back something to FF, coz it has given me much...I repeat if you dont like it, just go away. This will be the last time i answer to your kind. You have seen the system, im not spoon feeding my evaluations to you.

edge540: I have just read TKimbles thread as well, thanks to you, its similar, not the same tho, guess great minds think similar, I'll repeat his words, "go paper trade it..." shoooo, ah i forgot you're not interested in trading it, shoo shoo.
  • #9
  • Jul 23, 2007 5:00am Jul 23, 2007 5:00am
Hi,

Below i have posted a chart on how you could make your entries. Placing your stoploss below the low of the privious day would not have taken you out, but i will still reccomend using the daily range taken off 1 week data as your stop loss.

To get the weekly range, all you have to do is to prepare the excel sheet and enter the daily hilo, do some calculation by adding all the last 5 days trading range and average them.

I will post a loser example later - always cut the losers fast with SLs
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  • #10
  • Jul 23, 2007 5:19am Jul 23, 2007 5:19am
Jest,

Thanks for sharing your ideas. Let me remind others especially newbies that it is up to each individual to use their own judgement on the validity of any system/method. As far as borrowing or copying from someone else, I challenge anyone to show me a method/system that is completely independent from previous knowledge. Let us focus on what lies between our ears and let the free flow of ideas and opinions be the judge and jury.

Unus pro omnibus, omnes pro uno
  • #11
  • Jul 23, 2007 5:38am Jul 23, 2007 5:38am
Jest,

What if I am long today and tomorrow's candle tells me to go short but my stop loss was not hit? Would you close the long entry and now go short or stay with your original entry until your stop/loss or your trail lock is hit?

Thanks
Unus pro omnibus, omnes pro uno
  • #12
  • Jul 23, 2007 6:26am Jul 23, 2007 6:26am
Quoting moneda
Jest,

What if I am long today and tomorrow's candle tells me to go short but my stop loss was not hit? Would you close the long entry and now go short or stay with your original entry until your stop/loss or your trail lock is hit?

Thanks
Hi moneda,

I will propose that you keep your trail locks...and if it becomes a loss let it assume the loss. It helps keep the emotions away but if you are adept, then discretion is King, when it comes to exits, it sets the experienced apart from newbies...and i still consider myself inept in this field of exits. I will hope to learn along the way as well...The small filter 5SMA acts like a dynamic trendline and i still suggest that short trades are only taken if PA closes beyond it.

What i would reckon doing is to take partial profit if candle closes red on a bull trend but do not cross the 5SMA, again this is just a suggestion not a calling. I like a system that leaves a little discretion to the traders, just to keep it real.

Below is a chart of a loser trade, look at the extreme left tho...imagine what you would have brought home if u keep adding ur winners?

Summarised, the rule of this system is simple...add on to ur winners and cut the losers
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  • #13
  • Jul 23, 2007 6:43am Jul 23, 2007 6:43am
I would like to further add that this IS NOT MY SYSTEM and I DID NOT STEAL IT FROM TKIMBLE

Fact is i got it from reading Trend Following by Micheal W Covel's story on a certain sugar trader who keep buying when price makes higher close and sold off everything once a lower close is created.
  • #14
  • Jul 23, 2007 7:19am Jul 23, 2007 7:19am
jest

yesterday i proudly developed my daily strat...

last nite i found your daily strat thread......

i see we are both theives.......smile

Buy Rules
1) Daily Charts with 3ema and 12 ema
2) If price has a Close higher than the Open(green candle) and 3ema is above 12 ema, on the OPEN of the next candle, Initiate a Buy Order.
3) Stop is 2 pips below the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips

Sell Rules
1) Daily Charts with 3ema and 12 ema
2) If price has a Close lower than the Open(red candle) and the 3ema is below the 12 ema, on the OPEN of the next candle, Initiate a Sell Order.
3) Stop is 2 pips above the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips

daily charts set up for long trade july 22:
eurcad/lost
gbpusd/won
eurusd/lost
gbpchf/won
audcad/won
eurcad/lost

daily charts set up for short trade july22:
eurgbp/won
usdjpy/won
usdchf/won

  • #15
  • Jul 23, 2007 7:27am Jul 23, 2007 7:27am
Lol Farmhand sir,

Thats an animated way to describe it...LOL. Theives that share would make us Robinhood of the FXcommunity. I think there are many ways to follow the trend...the big boys like to buy the dips...some play the breakout of a high, im simply sharing another method. Theres not only 1 road to perdition.
  • #16
  • Jul 23, 2007 8:29am Jul 23, 2007 8:29am


"Theres not only 1 road to perdition."

perdition definition

n. 1. a. Loss of the soul; eternal damnation.

goodness gratious...i`m tryin to be happy...positive...winning...just give me some pips please...perdition, no thanks!!!

must be a slow market today..!!!
  • #17
  • Jul 23, 2007 9:15am Jul 23, 2007 9:15am
Quoting farmhand

"Theres not only 1 road to perdition."

perdition definition

n. 1. a. Loss of the soul; eternal damnation.

goodness gratious...i`m tryin to be happy...positive...winning...just give me some pips please...perdition, no thanks!!!

must be a slow market today..!!!
LOL. And thats the way we do it!
  • #18
  • Jul 23, 2007 9:32am Jul 23, 2007 9:32am
Hi Jest,

Just wanted to say hello! I am a little nostalgic of the days of trading in Teamspeak (it was fun), and I wish you luck trading your system.

I think developing our own systems is the way to go to trade succesfully (or at least comfortably), so I bet you're on the right track.

Keep it going!
Pablo
  • #19
  • Jul 23, 2007 9:45am Jul 23, 2007 9:45am
Quoting ptejerina
Hi Jest,

Just wanted to say hello! I am a little nostalgic of the days of trading in Teamspeak (it was fun), and I wish you luck trading your system.

I think developing our own systems is the way to go to trade succesfully (or at least comfortably), so I bet you're on the right track.

Keep it going!
Hahaha, i missed those days too. hahaha.
Well we've grown a long way from that. Like the sensei taught, keep it simple!
  • #20
  • Jul 23, 2007 9:57am Jul 23, 2007 9:57am
I really like what you have going here, but I hated that book lol

Quoting jest1081
I would like to further add that this IS NOT MY SYSTEM and I DID NOT STEAL IT FROM TKIMBLE

Fact is i got it from reading Trend Following by Micheal W Covel's story on a certain sugar trader who keep buying when price makes higher close and sold off everything once a lower close is created.
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