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Part Time Wealth Building Trading System - Weekly Scalping

  • #201
  • Jan 11, 2007 2:54pm Jan 11, 2007 2:54pm
But Kham, you're breaking the rules of his system by "bailing out." TK's system says to have discipline and let it ride 'til the end of the week.

To bail out flies in the face of his "fire and forget" strategy, as you may miss out on some serious profits.

But I think there's gotta be a mechanical way to exit when you're up a large amount, if nothing more than to lock in profits on swing weeks where the market ranges up then down within the same timeframe.

IMO, I think you will probably end up ahead in the end if you put a limit on your entry orders of a really high target, say 200 pips then wait to see what the rest of the week does. Not too many times will an entire week eclipse 350-400 pips.

How about this addendum to the strategy: Same rules as before, with the following two additions:

- put limits in place to close positions that eclipse 200 pips in profit.
- redefine your buy and sell points. New buy point would be the current location; new sell would be 50 below. Resume trading as per usual.

Doing so will lock in profits on weeks when there's great growth and provide a mechanical, unemotional means of exiting in the black.

Thoughts tk? Are we starting to rob this method of its simplicity at this point?
  • #202
  • Jan 11, 2007 3:01pm Jan 11, 2007 3:01pm
Quoting MillerHighLife
Drift: What are you using as your Buy and Sell points?

By my count, looking back, I only see two stops hit from Mon. @ 8:00 EST 'till now., assuming your stops are set at 30 and you're using 1.9352 as the Buy point and 1.9302 as the Sell.

One near the beginning at 10:00 EST on Monday and the other at 15:40 EST yesterday.

There's a very near miss at 10:20 EST yesterday at 1.9323--1 PIP!--that would've stopped you out and led to another Buy position that would've also been stopped out at 15:40.
Are you counting that as a stop out?

So by my count it's two stops down (-60) and ~90+ at 1.9442 for a net of 30 for the week so far. Should be interesting to see what impact the market news tomorrow morning has on things as we close out the week.

MHL - I use same as TKIMBLE writes on page 11 post 159. I copy under here. 3rd trade was too stopped make 3 losses of 30pips. Now in 4th trade again from 1.9352 and in profit by 100 as posting, so overall 10 pips up til now after 4 trades. 4th trade was up 180 pips today but leave to run says TKIMBLE.

Can you see now?

DW


I have no set limit on the amount of buy and sell orders. The best weeks only require one trade which means you were not stopped out. Most weeks only require two trades. Some weeks may require three or four trades. This satisfies the goal to minimize trading.

Once I am stopped out for the second time, I am trading a 50 pip range. This week is a good example. The following trades occured:

Bought 1.9352 (last weeks close plus 50 PIPS)

Adjusted Sell Reversal to 1.9302 (last weeks close)

Stopped out at 1.9322 (30 PIP Stop)

Sold 1.9302. Stopped out at 1.9332 (30 PIP Stop)

Bought 1.9352 where I currently am

Current 50 PIP trading range is 1.9302 to 1.9352.

As I type I am down approximately 18 PIPS for the week thus far...

Happy Trading,

Tkimble<!-- / message -->
  • #203
  • Jan 11, 2007 3:23pm Jan 11, 2007 3:23pm
I paper trading this only and see yesterday (10th) low is 1.9315 on FXDD at 16.25 EST so 3rd trade stop at 1.9322 must be hit I am sure. 4th trade entered 04.00 EST today and still open.






Quoting MillerHighLife
Drift: What are you using as your Buy and Sell points?

By my count, looking back, I only see two stops hit from Mon. @ 8:00 EST 'till now., assuming your stops are set at 30 and you're using 1.9352 as the Buy point and 1.9302 as the Sell.

One near the beginning at 10:00 EST on Monday and the other at 15:40 EST yesterday.

There's a very near miss at 10:20 EST yesterday at 1.9323--1 PIP!--that would've stopped you out and led to another Buy position that would've also been stopped out at 15:40.
Are you counting that as a stop out?
  • #204
  • Edited 3:40pm Jan 11, 2007 3:27pm | Edited 3:40pm
Drift, I'm having a hard time finding tk's first buy point. No where, by my account, does the currency hit 1.9352 prior to 10:00 EST on the 8th. So if that's the case, and we use that point to establish our buy/sell points, then in fact there should be only one stop, coming at 15:40 today.

So if that's the case, then we're looking at 1.9459-1.9352 = 107 pips.

Subtract 30 for one SL and I have us at +77 pips for the week so far.

Correct?


^ And I see that it bottomed out at .9315 at that point, too, but you should've already exited at 1.9322 at 11:45 yesterday and never re-entered until the buy point at 4:00 am this morning, EST

Can you list the trades that you have occuring so I can compare notes?
  • #205
  • Edited 6:18pm Jan 11, 2007 5:56pm | Edited 6:18pm
MHL - theses are my trades on paper. I hear many difference with different data feeds on MT4. With the 1st trade espcially it can be just that little difference that make enrty price hit. Also is depends on TKIMBLE method about if he is quoting bid or ask prices. I thinking his prices are order prices as in 1.9352 is ask (not bid +spread making 1.9355/6). 1.9302 is bid. Hope I don't confuse!

As i see them; EST (all my prices are bid)
Trade 1 was buy 03.55 on 8th. My bid high is 1.9348 so ask could been 52 with some brokers and as TKIMBLE shows he entered then for purpose of my paper trade I say it was hit. Stopped 05.10 on 8th. LOSS 30pips

Trade2 was sell 08.35 1.9302 on 8th.Stopped 09.55 on 8th. LOSS 30pips.

Trade3 was long 10.00 1.9352 on 8th.Stopped 15.50 on 10th Loss 30pips

Trade 4 was long 04.00 1.9352 on 11th. Still open now PROFIT 90pips

Total 90pips loss less 90pips profit (til now) = BREAKEVEN

The only uncertain trade for me is 1st one but TKIMBLE says he entered and lost so his broker maybe 1 or 2 pips difference to your or mine MHL

I think I have this right but maybe not Maybe TKIMBLE can confirm his trades for us.
DW



Quoting MillerHighLife
Drift, I'm having a hard time finding tk's first buy point. No where, by my account, does the currency hit 1.9352 prior to 10:00 EST on the 8th. So if that's the case, and we use that point to establish our buy/sell points, then in fact there should be only one stop, coming at 15:40 today.

So if that's the case, then we're looking at 1.9459-1.9352 = 107 pips.

Subtract 30 for one SL and I have us at +77 pips for the week so far.

Correct?


^ And I see that it bottomed out at .9315 at that point, too, but you should've already exited at 1.9322 at 11:45 yesterday and never re-entered until the buy point at 4:00 am this morning, EST

Can you list the trades that you have occuring so I can compare notes?
  • #206
  • Jan 11, 2007 6:30pm Jan 11, 2007 6:30pm
I've a question, for example below:

Previous week close 1.9302

Buy 1.9352 and Sell 1.9252

Got hit @ 1.9352; move Sell Order to 1.9302.

Got stopped out @ 1.9322.

Movement cross below 1.9302, sell order hit. However, it moved back up to 1.9332 (stop triggered).

That's it, my two initial buy and sell order were executed but both were stopped out with maximum loss of 60 pips.


My question is this:

Do I RE-ENTER my buy and sell orders again at 1.9352 and 1.9252 since my two trades had been wiped out? My concern is, since both trades were wiped out due to the SL triggered, what if it went up above 1.9352 again and I have no buy order?

Do I keep re-assign Buy and Sell order for the week at the original indicated level at -50 and +50 pips of previous week close? Or do I keep my hands off the week and wait till next week to enter again?

I hope I got it clear to you guys, this thread looks interesting and would love to have the method explain clearer, or perhaps I did not get the picture from the previous writings... Thanks!
  • #207
  • Jan 11, 2007 7:38pm Jan 11, 2007 7:38pm
Yes, you need to reenter the market. You would set the buy at the original entry price, where it got hit and the sell order should be at last weeks close. It really is fairly easy. You are looking for that breakout and to keep going in that one direction.

Marc
  • #208
  • Jan 12, 2007 1:08am Jan 12, 2007 1:08am
Quoting kham
My first week at testing your system tkimble with the following results:

GBP/USD buy @ 1.9347 and got stopped out @ 30 pips loss
GBP/JPY sell @ 228.32 and got stopped out @ 30 pips loss
EUR/JPY sell @ 153.75 and got stopped out @ 30 pips loss
Total loss = 90 pips

GBP/JPY buy @ 228.82 and bailed out early @ 300 pips gain
EUR/JPY buy @ 154.25 and bailed out early @ 100 pips gain
Total profit = 400 pips

Net profit for the week = 310 pips

Kham
Excellent...
  • #209
  • Jan 12, 2007 1:14am Jan 12, 2007 1:14am
Thanks guys.

Hmmm I'm wondering if we can implement it on a daily basis? that is, on previous day close, set a buy and sell order +30 or -30 points away kind of thing.. it's like, same as weekly, just that this is dealing with daily. Hmmm...

Thanks tkimble for the simple setup.
  • #210
  • Jan 12, 2007 1:19am Jan 12, 2007 1:19am
Kham' are you following tk's rules exactly.. in which case when you get stopped off the gbpusd arent you entering the sell?


Quoting kham
My first week at testing your system tkimble with the following results:

GBP/USD buy @ 1.9347 and got stopped out @ 30 pips loss
GBP/JPY sell @ 228.32 and got stopped out @ 30 pips loss
EUR/JPY sell @ 153.75 and got stopped out @ 30 pips loss
Total loss = 90 pips

GBP/JPY buy @ 228.82 and bailed out early @ 300 pips gain
EUR/JPY buy @ 154.25 and bailed out early @ 100 pips gain
Total profit = 400 pips

Net profit for the week = 310 pips

Kham
  • #211
  • Jan 12, 2007 8:11am Jan 12, 2007 8:11am
Quoting maria77
Thanks guys.

Hmmm I'm wondering if we can implement it on a daily basis? that is, on previous day close, set a buy and sell order +30 or -30 points away kind of thing.. it's like, same as weekly, just that this is dealing with daily. Hmmm...

Thanks tkimble for the simple setup.


I would not recommend it. When you reset the system every day you're also resetting your SL price. With a 30 SL you're likely to have that hit often. This system works because eventually price moves away from where youre entering the market. When you reset the SL you just keep moving the SL closer to price. It will get hit more often than just playing it weekly. Your profits will be lost.

I would think you would also need a set TP level as there are a lot more daily candles that are doji's, spinning tops, than weekly candles are. You're less likely to close the day near the high/low than on a weekly candle. You can try it, but I think you're going to eventually agree with me. Matt
  • #212
  • Jan 12, 2007 8:18am Jan 12, 2007 8:18am
Quote
I thinking his prices are order prices as in 1.9352 is ask (not bid +spread making 1.9355/6). 1.9302 is bid. Hope I don't confuse!

Yeah, that lightbulb went off when I got home and found that the trade I thought I was still in didn't execute b/c of the difference between bid/ask.

That's a very key point to keep in mind...factor your spread into orders, both on the buy/sell execution and the SL points.
  • #213
  • Jan 12, 2007 8:51am Jan 12, 2007 8:51am
Quoting permanentjaun
I would not recommend it. When you reset the system every day you're also resetting your SL price. With a 30 SL you're likely to have that hit often. This system works because eventually price moves away from where youre entering the market. When you reset the SL you just keep moving the SL closer to price. It will get hit more often than just playing it weekly. Your profits will be lost.

I would think you would also need a set TP level as there are a lot more daily candles that are doji's, spinning tops, than weekly candles are. You're less likely to close the day near the high/low than on a weekly candle. You can try it, but I think you're going to eventually agree with me. Matt
I bought an EA ( Metatrader automatic program) for doing just that- buying/ selling a break of the previous day. There were plenty of parameters to play with for stop loss, re-entry, reverse, etc. but the net result was all losers after two weeks. Not a very wide statistical sampling,true, but anyway, presented FYI.
I think part of the point of the weekly strategy is similar to the BB Squeeze strategy in that you want to find a non- volatile point to enter and just have price move from that point. This is not practical on the daily charts in my experience or estimation.
  • #214
  • Jan 12, 2007 9:01am Jan 12, 2007 9:01am
Taters:

What is the BB Squeeze Strategy?

Thanks...

Marc
  • #215
  • Jan 12, 2007 9:41am Jan 12, 2007 9:41am
Using the Bolinger Bands, you look for a place where the bands "squeeze" together, then place your entry points above and below them.

I'm sure it's a bit more complicated than that, but that's the basic gist of it.
  • #216
  • Jan 12, 2007 9:43am Jan 12, 2007 9:43am
Quoting tkimble
OK. I have decided to start a new thread and preview a weekly system that I use which has proven to be more profitable than the trending system. There are many similar systems at this website but I strive for simplicity. The system is again very simple.

Create a weekly chart. Place trades 50 PIPS above or below the close for the previous week. Use 30 PIP trailing stops. No profit targets. Let the trade run for the entire week and close during the final 30 minutes of the market for the week. The great feature of this system is that more often than not the weekly trend will establish itself and stay in tact from the Monday or Tuesday of the trading session for that week.

GBP/USD Example:

Previous weekly close: 1.9597
Buy: 1.9647
Sell: 1.9547

The following rule is a bit different than most trading systems of this style:

If the "Buy" is executed, move the sell up to the previous weeks close (1.9597 in this case)

If the "Sell" is executed, move the buy down to the previous weeks close (in this case likewise 1.9597)

These two rules permit a more robust and agressive entry after losing trades.

Recommend volatile markets (USD/CHF, GPB/USD, etc.)

Here is the current trade that I am in using the GPB/USD:

Short 1.9597 after a 30 PIP loss on the "Buy" trade.

Use 30 PIP stops.

This system averages approximately 150 pips per week in the GBP/USD market without any intervention. I am a big believer that most people over trade the market. This system will minimize your trades by its very nature.

Happy Trading.

Tkimble
I am going to give this a try. Who knows maybe it willl work for me.
  • #217
  • Jan 12, 2007 9:48am Jan 12, 2007 9:48am
I think the key here is to stick with the plan and test it for some time and be consistant. I've had some great success this week with the plan and continue to use it.
  • #218
  • Jan 12, 2007 11:11am Jan 12, 2007 11:11am
TK - this week has been a good one for me using this method. Thanks again for sharing it. I do have one question - in my spare time I have been going through your backtest results (those uploaded with the risk mgmt file) and am not getting the same results in some weeks. Could this be due to a difference in server time? The demo server I'm using is running on GMT+2 - perhaps yours is different?

Thanks,
Lou
Old Benjamin was right
  • #219
  • Jan 12, 2007 12:13pm Jan 12, 2007 12:13pm
Quoting Lou G
TK - this week has been a good one for me using this method. Thanks again for sharing it. I do have one question - in my spare time I have been going through your backtest results (those uploaded with the risk mgmt file) and am not getting the same results in some weeks. Could this be due to a difference in server time? The demo server I'm using is running on GMT+2 - perhaps yours is different?

Thanks,
Lou
Yes. My trading style will sometimes result in more or less pips than the pure chart would indicated...
  • #220
  • Jan 12, 2007 12:52pm Jan 12, 2007 12:52pm
are you having the most sucess with? GBP/USD, USD/CHF?
Thanks!
ut2DaMax


Quoting Lou G
TK - this week has been a good one for me using this method. Thanks again for sharing it. I do have one question - in my spare time I have been going through your backtest results (those uploaded with the risk mgmt file) and am not getting the same results in some weeks. Could this be due to a difference in server time? The demo server I'm using is running on GMT+2 - perhaps yours is different?

Thanks,
Lou
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