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SRDC Episode I

  • #981
  • Jan 12, 2007 6:03pm Jan 12, 2007 6:03pm
This is just an update on my issues I had with Xpresstrade yesterday during the GPB/USD news. I could not get them to adjust my trade in any way, however, they must have had a million complaints, because today, an e-mail came out and stated that they were moving everyone back to their dealing desk, and re-instating their no slippage policy, with guaranteed spreads. My guess is that they lost a lot of traders after the slippage issues on Thursday. I know that I opened a new account elsewhere, but I haven't funded it yet. I may give xpresstrade a second chance now that I get guaranteed spreads and no slippage again.

Just in case anyone is interested, I demo traded their platform for a couple of months and not once did I have even one pip of slippage. Once I went live, I got anywere from 1 to 50 pips slippage on every single trade. SRDC I was 100% profitable in demo. While I only had one losing trade using SRDC I live (the GPB/USD News on Thursday), not one of my trades netted me my expected resluts due to all of the slippage. In fact, my account has a negative drawdown simply because of the one loss on Thursday. So, based on these results, I would be hesitant to believe that the demo systems work exactly the same as live trading, so be careful and do not expect your results to be the same until you have had a few weeks of consistent trading while going live.
  • #982
  • Jan 12, 2007 6:16pm Jan 12, 2007 6:16pm
Quoting cbrock5000
Dear Amanuel,
A student you are I think not
Force is strong with you me believes.
Me believes jedi you are.

Thanks for a great post
Thank you.
May the Force also be with you too.
Pipology 101 student
  • #983
  • Jan 12, 2007 6:22pm Jan 12, 2007 6:22pm
Quoting mccullek
This is just an update on my issues I had with Xpresstrade yesterday during the GPB/USD news. I could not get them to adjust my trade in any way, however, they must have had a million complaints, because today, an e-mail came out and stated that they were moving everyone back to their dealing desk, and re-instating their no slippage policy, with guaranteed spreads. My guess is that they lost a lot of traders after the slippage issues on Thursday. I know that I opened a new account elsewhere, but I haven't funded it yet. I may give xpresstrade a second chance now that I get guaranteed spreads and no slippage again.

Just in case anyone is interested, I demo traded their platform for a couple of months and not once did I have even one pip of slippage. Once I went live, I got anywere from 1 to 50 pips slippage on every single trade. SRDC I was 100% profitable in demo. While I only had one losing trade using SRDC I live (the GPB/USD News on Thursday), not one of my trades netted me my expected resluts due to all of the slippage. In fact, my account has a negative drawdown simply because of the one loss on Thursday. So, based on these results, I would be hesitant to believe that the demo systems work exactly the same as live trading, so be careful and do not expect your results to be the same until you have had a few weeks of consistent trading while going live.


No, demo does not work the same way as real.
By slippage it means that you were not the first to click the mouse to buy or sell and therefore your turn to buy was at a higher price ( others clicked the mouse before you did) - or sell at lower price...OR it means there was no matching order to lift your order at that price..if it was spiking etc

Just use mini real account to try and test your strategy.
actualy when you put real money , even though it is small amount ( mini), you will pay attention to your account and test your strategy effectivly, and plust test real account senarios


hope this helps

pipology101 student
Pipology 101 student
  • #984
  • Jan 13, 2007 12:37am Jan 13, 2007 12:37am
Quoting cbrock5000
...Currently scaling in a.k.a. adding lots to try to turn occassional loser to profit...
This can be a profitable part of any effective MM strategy, i utilize it on an as needed basis kind of like you mentioned in your post.

: ) Thom
  • #985
  • Jan 13, 2007 12:54am Jan 13, 2007 12:54am
Quoting accrete
This can be a profitable part of any effective MM strategy, i utilize it on an as needed basis kind of like you mentioned in your post.

: ) Thom

Scaling In/Out .....Well Accrete ! Where have we heard about this before?!



Lou
  • #986
  • Edited 6:55am Jan 13, 2007 6:30am | Edited 6:55am
After reading the first 35 pages of this thread, and taking notes on everything I learned, I decided to backtest this for a month on the EUR/USD. The month I used was Oktober 2006.

I used the really basic method of SRDC.
I used an indicator to automaticly set the H/L, then opened 3 positions if price hit High+3 or Low-3. Stop-Loss is fixed at High-27, Low+27.
PriceTarget1 = +5pips (High+8 or Low-8)
PriceTarget2 = +10pips (High+13 or Low-13)
PriceTarget3 = Discretionary, depending on trend lines/channels/week HL

PriceTarget1 PriceTarget2 PriceTarget3 Net Profit 25 -50 -24
# winners 17 13 11
#losers 2 6 8
Winning% 89% 68% 58%
Avg Win 5 10 19.6
Avg loss -30 -30 -30
Win:loss r 0.17 0.33 0.65
Avg Trade 1.3 -2.6 -1.3
Expectancy -0.3 -0.5 -0.8
Largest dd -45.0 -100.0 -75.0
Profit Factor 1.4 0.7 0.9
% time in dd 0.7 1.0 1.0

Of total amount invested, PT1 = 70% PT2 = 20% PT3 = 10%
Weighted profit: PT1=17.5 PT2=-10 PT3=-2.4
Netto: 5.1pips
Total Trades: 19

5 pips for a month of trading isnt that much. But remember, this is a very basic&easy strategy to use. In the next post I will comment on why it made losing trades, and what the results would be after a bit of tweaking.
  • #987
  • Jan 13, 2007 6:55am Jan 13, 2007 6:55am
PT1 trades:
trade one was lost because it opened near the high of the last days 100pip Range (22pips from high) It touched a trendline, then fell back down in a hurry.
Second trade the last days range was 27pips. Price moved through low, moved up & touched the high, then fell back down in a hurry. the 30 pips stop-loss I used was right on the High.

PT2 trades (+PT1 trades):
trade one: 55pips day range, spike up against trendline then fell back. closeto last weeks high
trade two: Entry was based on a small weekend candle. , 20 pips away from last weeks low.
trade three: opened near last days low
trade four: no apparent reason.

PT3 trades I wont comment on because they are discretionary and have a small influence on the results.

New Rules
- Dont enter trades if new day opens at 80%+ or 20%- of last days high/low.
- Dont enter trades if you are close to last week high/low.
- Dont enter trades if you are close to an obvious trendline.
- Dont enter trades if yesterdays range is <50 pips.

Adjustments:
- leave out the PT3 trades, making you close 80% @ PT1 & 20% @ PT2


PT1 PT2
Net Profit 55 70
# winners 11 10
#losers 0 1
Winning% 100% 91%
Avg Win 5 10
Avg loss -30 -30
Win:loss r 0.17 0.33
Avg Trade 5.0 6.4
Expectancy -0.2 -0.4
Profit Factor #DIV/0! 3.3

% of trade 0.8 0.2
weighted amnt 44.0 14.0


New profit / month is 58pips. Alot better.
Number of trades has been reduced to 11, from 19.

Conclusion:
I guess its wise to use good filters, so you can reduce the number of losses. Or reduce the amount of these losses by using a tighter stop-loss. Or both lol . But I guess that's where SRDC-2 will kick in?

I'm going to read the rest of the topic now, and make another backtest after I'm finished. This time using a different currency, but the same month.

Take 4 different pairs, average 50pips/month on each pair (with loww risk) and yer prospects indeed look pipatastic!


Thanks OrangeRoshan for this system and your continued support of it. You got a new padawan joining your ranks.
  • #988
  • Jan 13, 2007 5:26pm Jan 13, 2007 5:26pm
Hi all, I'm new here and I'm looking forward to backtesting this method. It seems like a great method since I saw many people voted it in the "most profitable method" poll.
  • #989
  • Jan 13, 2007 6:52pm Jan 13, 2007 6:52pm
I hope this system is profitable but so far I don't see those results most people are excited about. As far as your tweeking the system it seems like you are about to enter the "curve fit" road. Don't fall victim friend....

Quoting FrankS
PT1 trades:
trade one was lost because it opened near the high of the last days 100pip Range (22pips from high) It touched a trendline, then fell back down in a hurry.
Second trade the last days range was 27pips. Price moved through low, moved up & touched the high, then fell back down in a hurry. the 30 pips stop-loss I used was right on the High.

PT2 trades (+PT1 trades):
trade one: 55pips day range, spike up against trendline then fell back. closeto last weeks high
trade two: Entry was based on a small weekend candle. , 20 pips away from last weeks low.
trade three: opened near last days low
trade four: no apparent reason.

PT3 trades I wont comment on because they are discretionary and have a small influence on the results.

New Rules
- Dont enter trades if new day opens at 80%+ or 20%- of last days high/low.
- Dont enter trades if you are close to last week high/low.
- Dont enter trades if you are close to an obvious trendline.
- Dont enter trades if yesterdays range is <50 pips.

Adjustments:
- leave out the PT3 trades, making you close 80% @ PT1 & 20% @ PT2


PT1 PT2
Net Profit 55 70
# winners 11 10
#losers 0 1
Winning% 100% 91%
Avg Win 5 10
Avg loss -30 -30
Win:loss r 0.17 0.33
Avg Trade 5.0 6.4
Expectancy -0.2 -0.4
Profit Factor #DIV/0! 3.3

% of trade 0.8 0.2
weighted amnt 44.0 14.0


New profit / month is 58pips. Alot better.
Number of trades has been reduced to 11, from 19.

Conclusion:
I guess its wise to use good filters, so you can reduce the number of losses. Or reduce the amount of these losses by using a tighter stop-loss. Or both lol . But I guess that's where SRDC-2 will kick in?

I'm going to read the rest of the topic now, and make another backtest after I'm finished. This time using a different currency, but the same month.

Take 4 different pairs, average 50pips/month on each pair (with loww risk) and yer prospects indeed look pipatastic!


Thanks OrangeRoshan for this system and your continued support of it. You got a new padawan joining your ranks.
  • #990
  • Jan 13, 2007 8:42pm Jan 13, 2007 8:42pm
Okay, here is the way you trade SRDC I. You must trade this method live. If you try to back test or set up limit orders you must set a scenario and limit yourself. For example, if you set the TP to 5 pips then you must set the SL to 30 to achieve 70 + percent win ratio. But then you say, wow that sounds good but each loss equals 6 wins so it makes it a loser in reality.

Now here is how SRDC I works in real life. You trade each and every SRDC I break and you will have above 80 percent win ratio. You target between 5 and 10 pips per trade but understand sometimes it will run for 20, 30, 40, even 50 pips. Then the 20 percent of the time you lose it will always be for the 30 pips. Now you have a winning method. I have been trading this in demo and live since the thread began and I can confirm what I am saying as fact. SRDC I may be the best way you will ever find to become a success in Forex. This simple but effect method by OrangeRoshan works and don't let anyone tell you different.

Traderbill
  • #991
  • Jan 13, 2007 9:53pm Jan 13, 2007 9:53pm
Quoting Traderbill07
Okay, here is the way you trade SRDC I. You must trade this method live. If you try to back test or set up limit orders you must set a scenario and limit yourself. For example, if you set the TP to 5 pips then you must set the SL to 30 to achieve 70 + percent win ratio. But then you say, wow that sounds good but each loss equals 6 wins so it makes it a loser in reality.

Now here is how SRDC I works in real life. You trade each and every SRDC I break and you will have above 80 percent win ratio. You target between 5 and 10 pips per trade but understand sometimes it will run for 20, 30, 40, even 50 pips. Then the 20 percent of the time you lose it will always be for the 30 pips. Now you have a winning method. I have been trading this in demo and live since the thread began and I can confirm what I am saying as fact. SRDC I may be the best way you will ever find to become a success in Forex. This simple but effect method by OrangeRoshan works and don't let anyone tell you different.

Traderbill
Traderbill,

If you don't mind to elaborate...why do we have to set SL 30 in order to achieve 70 + percent winning ratio. I'm quite understand the concept. Is it the risk and reward ratio?

Regards,
Shah For every action there is an equal and opposite reaction.....
  • #992
  • Jan 13, 2007 10:19pm Jan 13, 2007 10:19pm
Quoting Traderbill07
Okay, here is the way you trade SRDC I. You must trade this method live. If you try to back test or set up limit orders you must set a scenario and limit yourself. For example, if you set the TP to 5 pips then you must set the SL to 30 to achieve 70 + percent win ratio. But then you say, wow that sounds good but each loss equals 6 wins so it makes it a loser in reality.

Now here is how SRDC I works in real life. You trade each and every SRDC I break and you will have above 80 percent win ratio. You target between 5 and 10 pips per trade but understand sometimes it will run for 20, 30, 40, even 50 pips. Then the 20 percent of the time you lose it will always be for the 30 pips. Now you have a winning method. I have been trading this in demo and live since the thread began and I can confirm what I am saying as fact. SRDC I may be the best way you will ever find to become a success in Forex. This simple but effect method by OrangeRoshan works and don't let anyone tell you different.

Traderbill
So are you suggesting that it is best to babysit the trades in order to catch the bigger gains rather than just placing a TP at 5 ?


Future
"Lunch ? Lunch Is For Wimps !"
  • #993
  • Jan 13, 2007 11:33pm Jan 13, 2007 11:33pm
Quoting Panjan
Traderbill,

If you don't mind to elaborate...why do we have to set SL 30 in order to achieve 70 + percent winning ratio. I'm quite understand the concept. Is it the risk and reward ratio?

Regards,
Panjan,

I was using this example as to why it is better to trade SRDC I manually rather than set an order and go to bed. When backtesting, to achieve a 70% + winning percentage you had to set a 30 pip SL. You can see that if you lose 30% of the time but lose 6 times the amount of your wins, then the 70% becomes a loser. Therefore when trading SRDC I it is important to get the maximum pips, sometimes this could be 5 and sometimes 50, but by doing this you can beat the testing and SRDC I becomes a major winning method.

Traderbill
  • #994
  • Jan 13, 2007 11:38pm Jan 13, 2007 11:38pm
Quoting MrFuture
So are you suggesting that it is best to babysit the trades in order to catch the bigger gains rather than just placing a TP at 5 ?


Future
Future,

From my experience, that is exactly what I am suggesting. Perfect example is SRDC I on Friday where it ran on and on! This allows you to offset the loss of 30 pips on the 20% of the time the trade goes the other way. SRDC I is a big winner when traded properly.

Traderbill
  • #995
  • Jan 13, 2007 11:44pm Jan 13, 2007 11:44pm
Hi,

I using SRDC I. In the thread OR said you can babysit or leave it. From my experience (LIVE) my conclusion is, it will be wiser to babysit it (I tried both methods babysitting and leaving it...)
nonetheless i still believe its one of the easiest FX strategy ard. I only live for 3 weeks so tt only so much i can say.

just my 2pips worth of advise.

cheers
  • #996
  • Jan 14, 2007 12:27am Jan 14, 2007 12:27am
Quoting Traderbill07
Panjan,

I was using this example as to why it is better to trade SRDC I manually rather than set an order and go to bed. When backtesting, to achieve a 70% + winning percentage you had to set a 30 pip SL. You can see that if you lose 30% of the time but lose 6 times the amount of your wins, then the 70% becomes a loser. Therefore when trading SRDC I it is important to get the maximum pips, sometimes this could be 5 and sometimes 50, but by doing this you can beat the testing and SRDC I becomes a major winning method.

Traderbill
Ok Bill,
I got what you mean now. Thanks. I agree with you that its better to trade manually. That's the reason why, for the last couple post, I was looking for alert when the price close to break the daily high or low ( at least 10pips before).

I found the alert at accrete.com but haven't tested it yet.

Happy Trading

shah
Shah For every action there is an equal and opposite reaction.....
  • #997
  • Jan 14, 2007 12:40am Jan 14, 2007 12:40am
Quoting steinitz
I hope this system is profitable but so far I don't see those results most people are excited about. As far as your tweeking the system it seems like you are about to enter the "curve fit" road. Don't fall victim friend....
Since you are not the world authority in Forex, your opinion is not important here. Nobody is a victim from learning my method. This world would be a much better place when people learn to stay more positive and associate with successful people.

Your post is negative and not constructive at all. Since you don't believe in this method, please don't use it ever but let others learn.

OR
Change Your Thinking. Change Your Life - JD
  • #998
  • Edited 1:54am Jan 14, 2007 1:22am | Edited 1:54am
Hi Team,

It was another Pipastic SRDC I TradeS. There were 2 entries for SRDC I, the basic and the advance strategies.

The Thin Green line is the Basic entry, about 70pips, and
The Thick Green Line is the advanced entry, about 60pips.
The Red line is the high of yesterday (Friday 12th Jan).

Plus minus it would total around 100pips harvest.

Now based on this fact, even you have a losing trade on the early hour of the trade, SRDC I actually balances those loss. Ive said this before and I said it again, "CANDLE WILL PASS YESTERDAY'S LOW AND HIGH ALMOST 99% OF THE TIME". This is where we catch them. Sentiment can change, but it will never affect this strategy.

LISTEN TO THIS: THIS STRATEGY WILL ONLY STOP WORKING WHEN PRICES STOP MOVING!!! This method capitilise on the very LAW OF PRICE ACTION!!

I ain't gonna be here forever, spending my free time reading and writting posts after posts. When I was you, I'll learn and become a good student. Isnt success in forex what you are after? When anyone dispute this method, they are either dumbest or just destined to fail in Forex.

EGO has no place in Professional Trading.

OR
Attached Image
Change Your Thinking. Change Your Life - JD
  • #999
  • Edited 2:39am Jan 14, 2007 1:39am | Edited 2:39am
Master OR, i thought that the basic entry must be above yesterday high?

yesterday high(resistance) + spread + 1 or 2 extra pips. So isnt the thin green line suppose to be above the red line? And thick green line have to be above thin green line?
  • #1,000
  • Jan 14, 2007 1:52am Jan 14, 2007 1:52am
Quoting Balflear
Master OR, i thought that the basic entry must be above yesterday high?

yesterday high(resistance) + spread + 1 or 2 extra pips. So isnt the thin green line suppose to be above the red line? And thick green line have to be above thin green line?
LOL.

When I said Yesterday's candle I mean Friday. Its the last trading day.

The Thin Green Line is where Thursday's High was. Thats the 1st entry. Of course you have to allow spread and margin, but thats only a few pips. Thats why I said plus minus pips.

The Thick Green line is the ADV strategy entry:

-Penetration
-Wait for full formation of candle outside the line
-Trade on the next open

The Red line is Friday's high.
Sorry for the confusion.

OR
Change Your Thinking. Change Your Life - JD
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