Part Time Wealth Building Trading System

Quoting tkimble

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My first objective is 100 pips. When that is achieved, I move my stop to break even. From that point on, if the ATR is low I will maintain a 100 pip stop. If the ATR is higher, I will increase my stop to 50 pips.

Happy Trading,

Tkimbe

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Quoting tkimble

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I cut my teeth on the SP500. Now in FOREX for 1.5 years. This is the same method that I used in the SP500. Basically have been using a trend following system for almost 10 years...

Tkimble

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Quoting Crestwind

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By cut your teeth do you mean you did did not do so well trading SP500?

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Quoting tkimble

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Should have shorted the Euro today at 1.3151. Should still be short. That was the only Euro signal that was given today. If you followed the bouncing RSI you have failed to add the three 50 period moving averages of calculated on the high, close and low. Remember, the trade should not be executed unless both the price is consistent with the RSI and 3 moving averages that I have subsequently added to quell the whipsawing...

Happy trading...

Tkimble

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Quoting RICHLINK

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I suggest that you edit your first post and add the 50 period moving average info there or you will constanly be repeating yourself.

Rich

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Quoting RICHLINK

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I suggest that you edit your first post and add the 50 period moving average info there or you will constanly be repeating yourself.

Rich

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Quoting comoke

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Hi,

I got a couple of requests for esignal code, so rather than give it to indivduals, i will post here for everyone to dsicuss. the post has the 50 tick stop and 200 target in place, you can change how you like for tests. i actually found the commented out cross back of 50 level in 45 rsi gave best exit results, but still overall a losing strategy.
heres the code, Paul

var MAfast = new MAStudy(9, 0, "Close", MAStudy.SIMPLE);
var studyATR = new ATRStudy(21);
var studyRSI = new RSIStudy(45, "Close");
function preMain() {
setPriceStudy(true);
setColorPriceBars(true);
setStudyTitle("Forex Factory");
setShowTitleParameters(false);
}
//var bCrossedUp = false;
var nStop = 0;
var nLimit = 0;
var nStopDiff = 0.005;
var nLimitDiff = 0.02;
var tickDiff = 0.0005;
function main() {
var sma = MAfast.getValue(MAStudy.MA);
var vRSI = studyRSI.getValue(RSIStudy.RSI);
var vATR = studyATR.getValue(ATRStudy.ATR);

//if in one not already, enter a long trade
if(!Strategy.isLong()) {
if(open() > (sma + tickDiff) && vRSI > 50) {
nOpenPrice = close();
Strategy.doLong("Going Long", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//set the stop for the trade
nStop = nOpenPrice - (nStopDiff);
//set the limit for the trade - calculate percentage gain (100 / entry price) * net gain
nLimit = nOpenPrice + (nLimitDiff);
}
}

//if not in one already, enter a short trade
if(!Strategy.isShort()) {
if(open() < (sma - tickDiff) && vRSI < 50) {
nOpenPrice = close();
Strategy.doShort("Going Short", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//set the stop for the trade
nStop = nOpenPrice + (nStopDiff);
//set the limit for the trade - calculate percentage gain (100 / entry price) * net gain
nLimit = nOpenPrice - (nLimitDiff);
}
}
//set the bar colours - green for long, red for short, black for neutral
if (Strategy.isInTrade()) {
if(Strategy.isLong()) {
setPriceBarColor(Color.lime);
//set the stop and limit orders
//if(vRSI < 50) {
// Strategy.doSell("Close Long RSI", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//}
Strategy.doSell("Close Long Stop", Strategy.STOP, Strategy.THISBAR, Strategy.DEFAULT, nStop);
Strategy.doSell("Close Long Limit", Strategy.LIMIT, Strategy.THISBAR, Strategy.DEFAULT, nLimit);
//debugPrint("In long " + sDate + " Stop: " + (nStop) + " Limit: " + (nLimit) + "\n");
}
if(Strategy.isShort()) {
setPriceBarColor(Color.red);
//set the stop and cover orders
//if(vRSI > 50) {
// Strategy.doCover("Close Short RSI", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
//}
Strategy.doCover("Close Short Stop", Strategy.STOP, Strategy.THISBAR, Strategy.DEFAULT, nStop);
Strategy.doCover("Close Short Limit", Strategy.LIMIT, Strategy.THISBAR, Strategy.DEFAULT, nLimit);
//debugPrint("In Short " + sDate + " Stop: " + (nStop) + " Limit: " + (nLimit) + "\n");
}
}
//else setPriceBarColor(Color.black);

if(open() < close()){setPriceBarColor(Color.lime);}
if(open() > close()){setPriceBarColor(Color.red);}
if(Strategy.isLong()) {
setBarBgColor(Color.teal);
}
if(Strategy.isShort()) {
setBarBgColor(Color.lightgrey);
}
return 0;
}

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Quoting coolshades

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tk,

thanks for this system. am interested enough to start monitoring it. i like its simplicity.. indicator filled systems are not my cup of tea

ps: may i ask what prompted the move from sp500 to forex

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Quoting RICHLINK

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Hi Tkimble,

This trading system is basically all mechanical and should easily be converted into an EA. What are your thoughts on this? An individual's personal trading style could be incorporated into the EA through user customizable inputs for Stop loss, money management etc.

Rich

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Quoting tkimble

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Cannot backtest emotions and the psychology of trading. I have two examples on private messages with people who have successfully taken the signals from this system and prematurely abandoned a great trade. This is why I am not a big fan of back testing. I would prefer to paper trade the market. There are many great systems that are profitable but not many great traders. Trading and backtesting are very different animals as I am sure many of you know...

Happy Trading...

Tkimble

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Quoting rogerha

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var nStop=0;


function preMain() {
setPriceStudy(true);
setColorPriceBars(true);
setStudyTitle("Forex Factory");
setShowTitleParameters(false);
}


var nStop = 0;
var nLimit = 0;
var nStopDiff = 0.005;
var nLimitDiff = 0.02;
var tickDiff = 0.0005;


function main() {


//if in one not already, enter a long trade
if(!Strategy.isLong()) {
if(close() > (sma(9, high()) + tickDiff) && rsi(45) > 50 ){
Strategy.doLong("Going Long", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
nLimit = close() + (nLimitDiff);
nStop = close(-1) - (nStopDiff);
}
}

//if not in one already, enter a short trade
if(!Strategy.isShort()) {
if(close() < (sma(9, low()) - tickDiff) && rsi(45)< 50 ) {
Strategy.doShort("Going Short", Strategy.MARKET, Strategy.NEXTBAR, Strategy.DEFAULT);
nLimit = close() - (nLimitDiff);
nStop = close(-1) + (nStopDiff);
}
}
<close(-1)){>}

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Quoting et_phonehome_2

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tkimble

If you are in a trade, and the entire closing candle crosses back below/above the 5 SMA, would you exit even though it has not crossed the 3 Moving Average filters, and RSI is still good?

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Quoting Crestwind

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By cut your teeth do you mean you did did not do so well trading SP500?

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Quoting EATrader

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Hi Tkimbe,

1) At what value do you consider "ATR is low" or "ATR is higher" to adjust the trailing stop?

2) When add the moving average (50) of the High, Low, Close, which type of moving average that you use (Exponential, Simple, Weighted, etc.)?

3) What's the purpose of moving average (50) of the Close since we only check for price above MA of the High or below MA of the Low?

Thanks.

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Quoting tkimble

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No. I adhere strictly to the system. I have been in trades where 30%, 40% even 100% of my profit has evaporated becuase that is the nature of the system. But it is this type of blind faith in the system that you must have to enjoy the long trends that will eventually manifest. This is also the most difficult threshold of the psychological and emotional development of trading. May people simply cannot watch profits evaporate.

Again, you can not have a fear of losing money. It is virtually impossible to be a successful trader if you have a fear of losing money.

Hope this helps...

Happy Trading,

Tkimble

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Quoting SliverB

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Thanks for posting this TK. If I may ask a question.

Is your exit 100% mechanical?You have talked about a 200 pip target in post 1 but on post 14 you describe being up 250 pips on the GBP.


Thanks,

SilverB

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