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Part Time Wealth Building Trading System

  • #141
  • Dec 4, 2006 2:02am Dec 4, 2006 2:02am
tk,

i am now confused by this..

with the 3 mas you introduced, i presumed you abandoned the 5 sma. or do you still have this.

thks



Quoting tkimble
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
  • #142
  • Edited 2:30am Dec 4, 2006 2:21am | Edited 2:30am
TK are you watching this?

its 830 am gmt and price is below the lower ma and rsi might go below 50..
  • #143
  • Dec 4, 2006 5:01am Dec 4, 2006 5:01am
Quoting tkimble
Great question. Sorry for the confusion. My goal is 200 PIPS. The purpose of the trade data is to simply report acutal results and illustrate the amount of potential profit is available.

Hope this helps,

Tkimble
Tkimble,
thanks for that.
So to clarify exit happens 100% mechanically one of the following ways:

a)Hit TP at 200 pips from entry
b)Hit trailing stop which moves in the following manner (as described in post 112)

i) Initial stop 50 pips.
ii) At 100 pips profit move stop to BE
iii) If low ATR - trail 100 pips
If high ATR - trail 50 pips

c)An entry signal is generated in the opposite direction

Regarding the ATR setting the trailing stop:
What is low vs High ATR, do you have a mechanical set value?

also...

My orthodox thought is the higher ATR would have the larger trailing stop as the increased volitility would require the trade to have more breathing room. Can you clarify the logic for this statement from post 112:

Quoting tkimble
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.
Thanks.
In trading you are only as smart as your dumbest mistake. - Ralph Vince
  • #144
  • Edited 7:12am Dec 4, 2006 5:39am | Edited 7:12am
Quoting coolshades
TK are you watching this?

its 830 am gmt and price is below the lower ma and rsi might go below 50..
Nice read. But as you can see, it did not happen just yet. The psychological and emotional feeling a trader exhibits when preparing for a trade were all suggested in your posting. But, the system would have prevented you from making this trade, although all your trading instincts were preparing your for this trade. This is a perfect example of blindly following the system. The ability to override or ignore human instinct and follow the system.

Not trying too get to philisophical but psychology and emotions are by far the most important aspect of trading and neither can be measured by backtesting. Psychology and emotions are unique to us all...

Great observation...

Happy Trading,

Tkimble
  • #145
  • Dec 4, 2006 8:30am Dec 4, 2006 8:30am
As of this writing (1530 GMT), the GBP/USD has slipped below the LOW moving average but the RSI is still slightly above 50. GPB/USD is hinting at short trade but no trade signal yet.

Happy Trading,

Tkimble
  • #146
  • Dec 4, 2006 9:26am Dec 4, 2006 9:26am
tk,

did you take the long in the arrow indicated?
Attached Image
  • #147
  • Dec 4, 2006 9:38am Dec 4, 2006 9:38am
Quoting coolshades
tk,

did you take the long in the arrow indicated?
No. I have been long since 30 Nov 06 at 0730 GMT (1.9505) GPB/USD. Still waiting for short signal. Currently enjoying 254 PIP gain as of this typing...

I do not add to my position once established.

Happy Trading,

Tkimble
  • #148
  • Dec 4, 2006 9:51am Dec 4, 2006 9:51am
ok but would that have been a valid signal, if entering fresh?
  • #149
  • Dec 4, 2006 10:08am Dec 4, 2006 10:08am
Quoting tkimble
No. I have been long since 30 Nov 06 at 0730 GMT (1.9505) GPB/USD. Still waiting for short signal. Currently enjoying 254 PIP gain as of this typing...

I do not add to my position once established.

Happy Trading,

Tkimble
Hello Tkimble,
Just to clarify, if you were not already in this trade, would the price going through the high 50 ave. with RSI already above 50, be considered a trade?
Thanks
Tom
  • #150
  • Dec 4, 2006 11:37am Dec 4, 2006 11:37am
Quoting hunter6774
Hello Tkimble,
Just to clarify, if you were not already in this trade, would the price going through the high 50 ave. with RSI already above 50, be considered a trade?
Thanks
Tom
Providing it was the first time that the RSI broke 50...
  • #151
  • Dec 4, 2006 2:00pm Dec 4, 2006 2:00pm
ok.now crystal clear.

so the current pricing dipping up and down between and beyond the 3 mas are false signals since the rsi is consistently above 50.


so to repeat (ad nauseum i am sure )

1) price has to move above or below uppper or lower ma
2) THEN rsi has to move above or below 50

OR

1) RSI has to break above or below 50 on the chart for the first time
2) THEN price has to cross upper or lower ma

OR

both 1 & 2 happen at the same time (which is rare i suppose)

if i have read this thread right and TK's explanations any of the three scenarios above will be a valid signal


tkimble thanks in advance.

Quoting tkimble
Providing it was the first time that the RSI broke 50...
  • #152
  • Dec 4, 2006 4:03pm Dec 4, 2006 4:03pm
Quoting coolshades
ok.now crystal clear.

so the current pricing dipping up and down between and beyond the 3 mas are false signals since the rsi is consistently above 50.


so to repeat (ad nauseum i am sure )

1) price has to move above or below uppper or lower ma
2) THEN rsi has to move above or below 50

OR

1) RSI has to break above or below 50 on the chart for the first time
2) THEN price has to cross upper or lower ma

OR

both 1 & 2 happen at the same time (which is rare i suppose)

if i have read this thread right and TK's explanations any of the three scenarios above will be a valid signal


tkimble thanks in advance.
You got it. See how the market looked like it was going to decline and in fact continue climbing? This is the beauty of this system...

Happy Trading,

Tkimble
  • #153
  • Dec 4, 2006 4:10pm Dec 4, 2006 4:10pm
Quoting hunter6774
Hello Tkimble,
Just to clarify, if you were not already in this trade, would the price going through the high 50 ave. with RSI already above 50, be considered a trade?
Thanks
Tom
This seems like a good time to add more to your position, but my personal style does not permit adding anything to a position once it has caught a trend. For my style of trading, I would not enter any more positions. I only execute trades when the RSI has crossed the 50 mark. I do not enter any other trades for any reason.

Some would say that this would be a good place to add to your current position or enter an initial trade. I have not paper traded the model with these types of trade entries. You could try and see what would happen...

Hope this helps.

Tkimble
  • #154
  • Dec 4, 2006 8:04pm Dec 4, 2006 8:04pm
Hi Tk,

I can see gbpusd,eurusd are perfect fit to your system. What about the other pairs? can you tell me what pairs you normally trade? and what pairs I should avoid if I am using this system.
  • #155
  • Dec 4, 2006 8:32pm Dec 4, 2006 8:32pm
Quoting dollarsign
Hi Tk,

I can see gbpusd,eurusd are perfect fit to your system. What about the other pairs? can you tell me what pairs you normally trade? and what pairs I should avoid if I am using this system.
This system can be adjusted to profit from just about any pair. You would need to backtest (did I say that???) to find adaptable parameters and then paper trade for at least 2 -3 months. The only parameter that I would adjust is the RSI. Typically lower for slower pairs.

Hope this helps...

Tkimbe
  • #156
  • Dec 4, 2006 9:55pm Dec 4, 2006 9:55pm
I Have been following this thread since the start and here is what caught my eye.......

tkimble has shared a perfectly good strategy with us, simple rules, easy to follow, very cut and dried, good rate of returns, etc etc.

so now what happens? human nature steps in and tries to improve, optimize and generally change the system, at which point the system no longer performs as originally designed. the system gets improved to death....

This is a phenominom I call the greener grass syndrom, no matter how good something is there is always something better and it is allways just out of reach, Just like the grass on the other side of the fence.

I have been testing this system and I am impressed with the simplicity and returns it is generating, But I am sticking with my even simpler breakout system that is giving me about .65% (2/3s of 1%) per day.

happy trading all........
Same Whore .... Different Dress
  • #157
  • Dec 4, 2006 10:14pm Dec 4, 2006 10:14pm
Quoting johnedoe
I Have been following this thread since the start and here is what caught my eye.......

tkimble has shared a perfectly good strategy with us, simple rules, easy to follow, very cut and dried, good rate of returns, etc etc.

so now what happens? human nature steps in and tries to improve, optimize and generally change the system, at which point the system no longer performs as originally designed. the system gets improved to death....

This is a phenominom I call the greener grass syndrom, no matter how good something is there is always something better and it is allways just out of reach, Just like the grass on the other side of the fence.

I have been testing this system and I am impressed with the simplicity and returns it is generating, But I am sticking with my even simpler breakout system that is giving me about .65% (2/3s of 1%) per day.

happy trading all........
would you like to tell about yor system?

gr leon
  • #158
  • Dec 4, 2006 11:19pm Dec 4, 2006 11:19pm
has anyone made an EA out of this? since this is pure mechanical, backtests would be valid
  • #159
  • Dec 4, 2006 11:26pm Dec 4, 2006 11:26pm
Quoting clam61
has anyone made an EA out of this? since this is pure mechanical, backtests would be valid
While backtesting is a good starting point, it is impossible to back test the real time emotions of executing a trade with this system or any system. Mechanical back tesing produces mechanical results which are devoid of emotions and psychological trading influences.

The only way to gain confidence in this system or any system, in my opinion, is to paper trade and then acutal trade.

Good contribution...

Happy Trading,

Tkimble
  • #160
  • Dec 5, 2006 9:49am Dec 5, 2006 9:49am
tk,

did you take the short on gbpusd and eurusd today?
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