Part Time Wealth Building Trading System - Weekly Scalping

Quoting ut2DaMax

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are you having the most sucess with? GBP/USD, USD/CHF?
Thanks!
ut2DaMax

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Quoting Jimbezy

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Correct me if Im wrong, but isnt this the basics of the system?

Weeks Close<?xml:namespace prefix = o /><o></o>

1.9582<o>
</o>

Place Buy @ 1.9632 Stop @ 1.9602

Place Sell @ 1.9532 Stop @ 1.9562

<o></o>

Bought @ 1.9632 Stop set @ 1.9602

Place new Sell order @ 1.9582

<o></o>

Options:<o></o>

If stop is NOT hit wait to weeks end to close position

If stop IS hit place Buy at old Stop of 1.9602 and keep Sell at 1.9582

If stop IS hit and goes to Sell at 1.9582, continue the same rules in the opposite direction



Looking back at manual back testing this works on weeks that trend hard one way or the other, but weeks that whipshaw a lot dont look that good. It seems like a trailing stop of some sort would be in order, what would you suggest?

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Quoting ut2DaMax

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are you having the most sucess with? GBP/USD, USD/CHF?
Thanks!
ut2DaMax

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Quoting james275

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THis is one of my favorite and volitile pairs. I continue to look for new and simple systems. THis looks like a gem!!

I trade on different time frames but not weekly...soo...this looked really smart. Using the same criteria..


GBP/Yen
Last wk close at 228.82.

Went short at 228.32 and was stopped out for a 30 pip loss

Went long at 228.82. Hasn't looked back. Now trading at 231.12, up over 300 pips now. Let it run and close it on Friday. Don't consider that profit and won't even look at it now. I'd be too tempted to close it. When i close, it will then be profit...whatever it is.

One of the advantages and i think strength of these kind of simple systems is to be methodical and do it everytime. WHile i too try to "improve and upgrade" systems, when i trade it this seems to always get me out to early, then i try to get back in, and i am wrong and i am wrong again, etc. You know what i am talking about. This looks like a great week for this system, but i need to have discipline to keep the same routine, regardless of what happens, especially for those wierd weeks..... This week looks easy, but other weeks will tempt me to not follow these simple rules.

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Quoting permanentjaun

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I'd be careful on gbp/jpy. There seem to be at least 50% of the weeks that either have small ranges or are doji's. This week was obviously an amazing week to trade this system on that pair. There aren't too many candles in a year that are over 500 pips on that pair.

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Quoting maria77

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I'm going to do the trade this next week on MT4 IBFX demo.

Ok the close of the week is 1.9585, so here're the orders:

Buy 1.9635 SL 1.9605
Sell 1.9535 SL 1.9565
*If any of the above hit, I will move the other order to the closing price of last week, which is 1.9585 with a SL of 30 pips be it Buy or Sell.


Ok one thing, where is the TP? And should I put a trailing stop after any of the initial order is hit? Let's say, if my Buy order (1.9635 SL 1.9605) is hit, and it moves 50 pips above me, should I move the SL 1.9605 to breakeven? What should I do if it go above 50 pips or 30 pips? I'm afraid that the weekly trade might see some movements go 50-75 pips up then down again.. so I need some advice on where to put the TP and the need to adjust the SL of the trade goes our way.

Thanks!

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Quoting RSA

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Could you be so kind to walk us for one week through on the system, on a daily basis, so that we can see when and how you actually enter . change entries and exit the contract? Thanks for sharing your method with us.

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Quoting permanentjaun

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I'd be careful on gbp/jpy. There seem to be at least 50% of the weeks that either have small ranges or are doji's. This week was obviously an amazing week to trade this system on that pair. There aren't too many candles in a year that are over 500 pips on that pair.

I am going to start trading a variation of this method next week on GBP/USD.

1. Place straddle 75 pips on each side from open of weekly candle. This it to try and reduce false moves. 75 pips doesn't eat into the moves on a week too much so I am willing to give up 50 pips more to have some more security.

2. Set TP for 50 pips and SL of 50.

3. If first trade is stopped out then set the next trade to 100 TP 50 SL.

4. As the 2nd trade of 100 TP 50 SL plays out, manually move SL to trail in steps. Either move it to B/E once it hits +50 pips or move the SL to trail by 50 pips every time price moves 25 pips in your favor. So when you're +75 on the trade the SL is at +25.

5. If the second trade is stopped out then place another trade. This time determine your TP by adding your losses from the previous trades and then add 50. So if on the 2nd trade you were able to move SL to B/E then you're only down 50 pips for the week. The third trade is then 100 TP 50 SL. If you were able to move SL on the 2nd trade to +25 then you're only down 25 pips on the week since you lost 50 on the first trade. Therefore you need 75 pips to be up 50 on the week. So the third trade would be 75 TP 50 SL.

6. As soon as you've made your 50 pips on the week. Stop trading. Cancel all other triggers.

I'm not sure yet if I want to move the triggers once one is hit. If the buy is hit I may move the short 50 pips closer so it's -25 from the open and vice versa for the opposite. That way it still requires a 100 pip movement to trigger the other trade, but is still pretty close to the open and would allow for plenty of movement in the opposite direction rather than waiting for a 150 pip move.

If I move stops to trail price it would be difficult to determine re-entry points incase the move was just a retrace before going further. I'll have to play around with this. I may end up giving up on the stepping SL, but it's something that should be considered.

Right now my trading requires consistency and minimal draw downs. I want to build a nice equity above my current balance before going for max profits in a system like this.

I think this system could work because it requires the week to be just as successful as if playing tkimbles method. To be profitable we need to gain more than we lose when we're stopped out several times. Disregarding the difference in our SL values, both our systems are not profitable until we get a considerable move in one direction to profit more than on several bad trades we may have had that week. I am simply setting a 50 pip goal for myself.

For my trading situation this is a smart move. By raising the trigger points to 75 pips I reduce the number of failed trades. I have also increased my chances of success by setting a goal for the week. Rather than play out till the end of the week I know how much I need to profit on the next trade to B/E and profit. I'm not trying to be greedy. Slow and steady. Thoughts? Matt

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Quoting coolshades

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permanent,

what do you move the entry price to, once the 1st two trades have been s/led?

for eg? close price of gbpusd is 1.9586 on MT4 on the GMT +2 charts.. +/- few pips depending on which service provider you are with and time frame.

1st entries for you would be

long :1.9586 +75
short : 1.9586- 75

or would they be

long : monday open buy price + 75
short : monday open sell price -75

the second set of entries takes into account the spread.

ok now going by tk's system, if either of the trades get executed, then you would move the counterpart buy/sell trade to the close price of last week( or to the buy/sell price of last week if you take spreads)

if both trades get executed and then get sled, then i understand you would move the next entries to the original entry level.. ie: +/- 75 pips, is that right?

thanks.

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