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  • #621
  • Dec 12, 2006 11:27pm Dec 12, 2006 11:27pm
So the pair was bought and sold at the 00:00 gmt price and then just let it basically go.

Thanks for the additional explanation.

I still don't know why you could not do this on with any broker, is it the trailing stop that works different?

Regards,
Eric


sn
Quoting DavidH
He doesn't have an actual TP. The profit is based on the trailing stop. The example of 17 PIPs was just an example, not an actual TP level. Basically, you are in the trade until your SL or trailing stop are hit.

David
  • #622
  • Dec 12, 2006 11:53pm Dec 12, 2006 11:53pm
Quoting drlc01
I still don't know why you could not do this on with any broker, is it the trailing stop that works different?
Most brokers don't let you buy and sell the same pair (ie: hedge/go both ways).

Then, on some, like FXCM, they don't trail the same. On IBFX, if you have a 15 PIP trailing stop, at a +15 PIPs, your stop would be moved to 0. If you are +16 PIPs, then the SL is moved to +1. If you move +50, then your SL is set to +35.

At least that is my understanding. Am playing around with this in a demo at IBFX.

David
  • #623
  • Dec 13, 2006 12:26am Dec 13, 2006 12:26am
Funny thing...soon as i got out of FXCM i start making money... Got myself a new broker who let me hedge and have REAL trailing stop....unlike u know who (other broker)!



Quoting DavidH
Most brokers don't let you buy and sell the same pair (ie: hedge/go both ways).

Then, on some, like FXCM, they don't trail the same. On IBFX, if you have a 15 PIP trailing stop, at a +15 PIPs, your stop would be moved to 0. If you are +16 PIPs, then the SL is moved to +1. If you move +50, then your SL is set to +35.

At least that is my understanding. Am playing around with this in a demo at IBFX.

David
  • #624
  • Dec 13, 2006 8:48am Dec 13, 2006 8:48am
OK.

Last night first attempt at the QMT trade method.

EURUSD sell ..... Break Even
EURUSD buy ...... -50

Ouch. Will try again at 0:00 GMT again today.
Don Life is expensive, but includes a free trip around the sun.
  • #625
  • Edited 12:17pm Dec 13, 2006 11:52am | Edited 12:17pm
I am sorry to ask one stupid question:

Let me say I buy EURUSD at 1.3000, stoploss [email protected].
Trailing stop 15pips. If price go up for 20 pips,now 1.3020.
The stoploss now is 1.3000(breakeven) or 1.2965 or maybe somewhere else?

It seems IBFX move stoploss to 1.3000(breakeven).
But most other brokers move stoploss to 1.2965.
Anyone knows which broker works like IBFX?They are our gold mine.
Broker use different Trailing mothed.If i am wrong,please correct me.


Thanks in advance!
  • #626
  • Dec 13, 2006 1:22pm Dec 13, 2006 1:22pm
Quoting lmx2000
I am sorry to ask one stupid question:

Let me say I buy EURUSD at 1.3000, stoploss [email protected].
Trailing stop 15pips. If price go up for 20 pips,now 1.3020.
The stoploss now is 1.3000(breakeven) or 1.2965 or maybe somewhere else?

It seems IBFX move stoploss to 1.3000(breakeven).
But most other brokers move stoploss to 1.2965.
Anyone knows which broker works like IBFX?They are our gold mine.
Broker use different Trailing mothed.If i am wrong,please correct me.


Thanks in advance!
With Interbankfx your new stop loss with the above scenario would be at 1.3005 and will move pip for pip upward so if the price moves another 5 pips up the stop loss trail behind by 15 (price at 1.3025 stop loss would be 1.3010). Hope this helps.

I've been very pleased with interbankfx and their customer support especially when I was trying to get a handle on their trailing stops. I came from the fxcm world and had that concept of trailing stops in my mind--this is totally different and I like it becaues it locks profit in pip for pip once triggered.

Q
  • #627
  • Dec 13, 2006 6:08pm Dec 13, 2006 6:08pm
Tonights order:

BUY and SELL at 1.3215
50 pip SL
15 Trailing Stop

Since there is really no big news event until Friday's CPI number I expect a "choppy" market which is perfect for this type of trading.

Tonight I'm going to go back and check to see if we moved the Trailing Stop to 20 pips what the results would be. It may lock in more profit due to the fact that sometimes during a 30 minute candle there is more than 15 pip movement even when its trending in one direction or it may increase more losing days because the market turns between 15 and 20 so we would miss out on those 2-5 pip gains...I'll let you all know...

Q
  • #628
  • Dec 13, 2006 6:16pm Dec 13, 2006 6:16pm
Did you notice a lot of 2-5 pip wins in your previous test? Maybe that would save some time.
Don Life is expensive, but includes a free trip around the sun.
  • #629
  • Edited 8:06pm Dec 13, 2006 7:17pm | Edited 8:06pm
Quoting traderone
Did you notice a lot of 2-5 pip wins in your previous test? Maybe that would save some time.
That was actually going to be my first check--great minds must think alike

Also, so far the GBP/USD looks to be fairly effective as well, even with the 3 pip spread on interbankfx making a 18 pip swing necessary.

Q
  • #630
  • Dec 13, 2006 9:18pm Dec 13, 2006 9:18pm
Having done a first stage look at the GBP/USD the strategy seems to be profitable atleast when it comes in comparisons to the EUR. April to October the EUR/USD had 58 days when it lost one of the sides. During the same period the GBP/USD lost on 54 days. Tomorrow I'm going to go back and manually look at the charts candle by candle and get the total pippage. My guess will be that it is slightly above what the EUR brought in.

Q

P.S. I did try the GBP/USD tonight on my interbankfx account. Will post results tomorrow...
  • #631
  • Dec 14, 2006 12:44am Dec 14, 2006 12:44am
Thanks for your efforts here QMG.

On my IBFX live account it looks like the spread is most often 4 pips on GBPUSD. That's why I was thinking about USDJPY. Or maybe even something like AUSUSD since that pair doesn't seem to pay that much attention to Europe.

Looking forward to your results.
Don Life is expensive, but includes a free trip around the sun.
  • #632
  • Dec 14, 2006 10:25am Dec 14, 2006 10:25am
Quoting traderone
Thanks for your efforts here QMG.

On my IBFX live account it looks like the spread is most often 4 pips on GBPUSD. That's why I was thinking about USDJPY. Or maybe even something like AUSUSD since that pair doesn't seem to pay that much attention to Europe.

Looking forward to your results.
That extra pip most likely won't make a difference since historically the trades have been executed during low volatility and a 3 pip spread. Even with 4 I think we'll be okay.
  • #633
  • Dec 14, 2006 10:29am Dec 14, 2006 10:29am
For last night on EURUSD I had this:

Buy trade +25
Sell trade +11
Total +36
Don Life is expensive, but includes a free trip around the sun.
  • #634
  • Edited 10:36am Dec 14, 2006 10:31am | Edited 10:36am
Quoting traderone
For last night on EURUSD I had this:

Buy trade +25
Sell trade +11
Total +36
? I had different #s...My price was 1.3215...yours?


GBP/USD was 49

Q
  • #635
  • Dec 14, 2006 10:35am Dec 14, 2006 10:35am
Word of caution to all: Last night on Interbankfx my orders weren't executed for some reason. My computer was on and internet connected but for some reason the trades didn't happen. I did contact interbankfx and have an e-mail to their reconciliation guy. I'll let you know what happens.

I do know that if your computer is off or you lose internet the trailing stops aren't activated because they aren't stored on interbankfx's server but rather your pc. Only thing I can think of is that last night interbankfx sent my pc a "ping" that wasn't received. I think that is because my computer went into safe mode after x amount of time of inactivity. I might have to adjust that...anyone know if there is a way to turn that feature of the pc off?

Results:

EUR/USD price 1.3215

BUY +20
SELL + 16

Total 36

GBP/USD

BUY +21
SELL +28

Total 49


Total Daily Gain +85


Q
  • #636
  • Dec 14, 2006 10:51am Dec 14, 2006 10:51am
I've tested the strategy today. However, it happened to be on loss position as market initial moved up to 50pips. Once it reach the point, it moved down to 130pips. Appreciate your comment.
  • #637
  • Dec 14, 2006 12:43pm Dec 14, 2006 12:43pm
Quoting dazrul
I've tested the strategy today. However, it happened to be on loss position as market initial moved up to 50pips. Once it reach the point, it moved down to 130pips. Appreciate your comment.
(When I state times I'm referencing the 5 minute candle using the charts on interbankfx)


I'm curious as to your numbers. The 0:00 GMT price for the EUR/USD was 1.3215 (cost you 1.3217 to BUY using a 2 pip spread). At 7:40 GMT the price hit 1.3232 thus triggering the 15 Trailing Stop...At 8:05 GMT it reached 1.3252 locking in the 20 pip profit because it went down after 8:05 GMT. You would have been stopped out at 8:15 GMT at 1.3237.

On the sell side the 0:00 GMT price was 1.3215. Since the 50 pip Stop Loss wasn't reached earlier the trade was still active when the price dropped later in the morning. At 11:30 GMT the price hit 1.3195 triggering the Trailing Stop and locking in 3 pips. At 11:55 GMT the price dropped to 1.3182 and locked in 16 pips profit...unfortunately the price then moved back up exactly 15 pips to 1.3197 thus closing out the trade at a profit of 16 (I say unfortunately because immediately after the price headed down 1.3162 at 13:30 GMT--would have profited another 20 pips)

That is how my numbers look for the day but like I said earlier this is just paper today because interbankfx didn't trigger my trailing stops during the night but I think I have a way around it. When my monitor goes into safe mode the cpu also does which in essence is like shutting it down, atleast when it comes to interbankfx. I'm going to turn off the "safe mode" feature for the monitor, physically turn it off before bed and then let my cpu run throughout the night. That should solve the problem.

Q
  • #638
  • Dec 14, 2006 1:59pm Dec 14, 2006 1:59pm
I just leave my machine up and running all night. Had too many problems with the CPU going dormant etc. (Hell, who am I kidding? I have two machines on 24/7 running at least 15 various accounts in demo and 2 accounts "live")

I jumped the gun a little on last night's trade. Got in at 22:46 IBFX time (5:46PM EST). The buy was at 1.3212 and the sell was at 1.3210.

I had somewhere to be at 00:00 GMT! Worked anyway.

I was thinking about also doing this at 5 PM EST which is when I get a new daily bar on FXDD. Just to see what kind of difference there may be. I know I will be demo playing this on three pair for the next few weeks. EURUSD, GBPUSD, and USDJPY.
Don Life is expensive, but includes a free trip around the sun.
  • #639
  • Dec 14, 2006 2:34pm Dec 14, 2006 2:34pm
Don,

Let me know how it works with the JPY, my initial look of it doesn't look too good since it seems to pick a direction and go with it. I'd be interested in your testing.

I'm comfortable with the EUR and GBP since I know them best and have confidence in their price movement.

Q
  • #640
  • Dec 14, 2006 3:36pm Dec 14, 2006 3:36pm
To anybody wanting to try this strategy using Interbankfx make sure your computer system doesn't go into hibernation. To turn off your hibernation mode right click on your start up screen, go to properties, on the screen saver tab towards the bottom you'll see a Power...button, click on that button which will bring you to the power schemes page. Make sure all options, especially "turn off hard disks", system standby, and system hibernates are switched to "NEVER".

By doing this your Trailing Stops will be active with interbank. Last night my computer went into hibernation and my Trailing Stops weren't activated because as far as Interbankfx is concerned, and their servers, my computer was off. They don't store the Trailing Stops on their server but go off of yours.

Fortunately, I was able to break even for the day and not lose anything. Unfortunately I left 86 pips on the table A lesson well learned!!!

Hope this helps...

Q
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