Part Time Wealth Building Trading System - Weekly Scalping

Quoting Pip Rage

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I have been trading the GBP/USD on this weekly time frame for a while now and I actually played with this exact system in early 2006. I found that the more I tried to maximize the TP/SL parameters, longer and deeper the drawbacks became. Markets change and mechanical methods have to change with them.
Eventually I settled on a 100 tp and a 50 sl with one re-entry at orginal the entry point. It would work well for many weeks and then I'd get smashed for many weeks. Overall it was profitable but I discovered that another dozen set-ups would have worked just as well at capturing the segment I was targeting.
I changed to trading the breakout of the weekly opening range and settling for the first 100 pips that came my way. If I'm stopped out for a 50 pip loss, I'll re-enter once at either of the original straddle points. The plan is that I'll only re-enter once but I've yet to be stopped out twice in 7 months. I've had to watch a lot of huge profits pass me by but the drawdown has been virtually non-existant. Its not perfect but its reliable and I kniow if I try tinkering with it, I'll be on a loser fairly quickly. I've tinkered my way to failure on many, many occasions.
BTW it would have failed on Christmas day, if I'd been foolish enough to trade such a thin market.
I suppose the point I'm trying to make that the key to making money from the weekly timeframe(regardless of your method) is to identify which segment of the weekly price move your method can reliably capture and be happy with that. Because by the time you've figured out the perfect sharpe ratio, the market would have changed again and your perfect ratio will be getting you smashed.
just my opinion.


Ken

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Quoting JillyB

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tkimble - question for you.

On the 27th November, the cable gapped up over 100 pips from the close of the previous Friday. How would you trade this? Wait for it to pull back or is the trade negated because of the huge gap?

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Quoting Justin

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This strategy looks really interesting. The beauty of it is that it does not require monitoring which suits my style and no emotions as well. This week closing price for cable as per MetaTrader is 1.9291.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

Starting from next week I'll do the following:<o></o>

- Buy +60pips (1.9351), Sell -60pips (1.9231)<o></o>
- Stop loss = 50<o></o>
- Trailing Stop = 70<o></o>
- Take Profit = 150<o></o>

No re-entry and close all opened trades by Friday half an hour before market close.<o></o>

I've opened a real mini account with FXCM for this purpose only with a capital of 1200 USD. 2:1 leverage will be used (i.e. max profit per trade is 300$).<o></o>

I will strictly be following the above rules until either I double my account or get a Margin Call.<o></o>

How about that?

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Quoting tkimble

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Great question. Anytime the new trading week begins with a gap beyond the 50 pip trigger, I use the closing price of the first trading day of the week to set my entry. Once the entry is made, I resort to the weekly chart.

Happy Trading,

Tkimble

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Quoting rogerha

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The PP's indicator I have for MT, obviously can only caluclate the current weekly PP's, so I can only see how they would have helped us this week.

The the PP's on the chart are applicable from 26th December, prior to that they are invalid.

Close of the previous week on this chart is 19579, therefore entry for a short is 19529, a long at 19629.

Our short is triggered sometime around 4pm on the 26th (4hr charts), only to bounce off the Weekly S1, and retrace, so we are stopped out.

Follow the chart through, and you will see that most of the trades that carry enough momentum to give you some confidence are the trades that break major PP's. In my mind, a breach of S1, or R1 with ATR stops feels a lot more mechanical than an aribitary figure for entries. Look at the long breach of R1 which is suddently halted by R2 ! Why not have some TP@R2, look for a stop/reversal at 10 pips lower than R1 ? Or something like that (although the ATR stops look good again here).

If you reversed the failed long at 10 pips lower than R1, and held your nerve, you capture the big move of the week.

Then look how prices hovers around the S1 for the big short move, until is charges down to S2, subsequently breaks that, pauses between S3 and S2, breaks S3, and keeps going......

Obviously this is only one week, but with the data I have, and the MT4 files I have, its all I can do sadly.

Anybody interested ?

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Quoting howard

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roger

what is the broken blue and red line on your chart ( not horizontal lines)? Could you post the file please

howard

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Quoting permanentjaun

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So then you're trading what I described, but starting with the 100 pip target from the get go. How many times would your initial trade get stopped out? Do you only make that one trade per week? Are you saying you haven't had a losing week in 7 months? Have you tried altering the entry times such that you wait for price to move monday then set you triggers now that the week is well underway rather than uncertain with direction? Would like your opinion on that. Thanks. Matt

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Quoting Pip Rage

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Matt, I'm not using a straddle based on friday's close price.
I wait for the first 18 hours of the week to pass and then straddle that range. I use a 100 pip tp and 50 sl. I'll only re-enter once and I never move the stops. Win or lose, I'll exit the position on saturday if it's still open. I only trade once if it hits my initial limit with a loss.I have had 6 losing weeks in the last 7 months but I've never been stopped out twice. I don't count Christmas week because I chose not to trade at all.
I've taken the approach of treating the trading week as one big daily session because it never really closes. It just thins out during the asian sessions.
I found that cable usually spends most of its sunday and monday shaking out the weekend straddlers , then it will breakout and trend in one direction for a 100-200 pips. Sometimes it will continue and put in a 350 pip range . Sometimes it will retrace between 50-100% of the post-opening smash.
I gave up on figuring out how to predict what will do after the Opening Range breakout. I have found that once it breaks out of its opening range it will trend for 100 pips prior to any significant pullback. It will often shake me out for a 50 pip loss to start with but then it will normally then proceed to its 100 pip target so I'll still be 50 pips up for the week.
In 3 of my losing weeks, I was shaken out for 50 pips then failed to activate and a new position. Mostly I win but ,to me, not losing is more important than winning. This method is crude but it's effective because it's settles for a limited segment of the weekly move and it's not tied to the opening chop of the asian session.
Milking this game is a lot easier than beating it.
Cheers

Ken

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Quoting Scott111552

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Ken, do you take the 1:00 pm price and set your longs and shorts accordingly?? Thank you for your contributions to this thread.....

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Quoting howard

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Justin

Why + and - 60 as opposed to the original 50 straddle?

howard

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Quoting permanentjaun

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So then essentially wait for my first daily candle to close on my chart and then take that close as the straddle point correct? My candles form at 00:00 GMT. I haven't checked the results, but from the popularity of the sibkis method at the other forum it seems to work well. Matt

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