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Part Time Wealth Building Trading System - Weekly Scalping

  • #341
  • Jan 17, 2007 10:41am Jan 17, 2007 10:41am
One thing you need to be careful of is calculating your entry points correctly. I was off 10 pips in my head (yeah, I know, basic math) and it ultimately resulted in a stopout b/c I entered 10 pips too late. The market fell to a place that wouldn't have stopped me out had I simply entered the correct entry point. It's a 30-pip mistake that may mean the difference between finishing the week in the red or the black.

Currently long in the GBP/USD @ 1.9670

Stopped out of the USD/JPY last night, have not reentered.

USD/CHF still has not triggered.
  • #342
  • Jan 17, 2007 10:49am Jan 17, 2007 10:49am
That is so very true...this is such a simple plan, just follow the rules and calculate the numbers for your entry and stops.

Quoting MillerHighLife
One thing you need to be careful of is calculating your entry points correctly. I was off 10 pips in my head (yeah, I know, basic math) and it ultimately resulted in a stopout b/c I entered 10 pips too late. The market fell to a place that wouldn't have stopped me out had I simply entered the correct entry point. It's a 30-pip mistake that may mean the difference between finishing the week in the red or the black.

Currently long in the GBP/USD @ 1.9670

Stopped out of the USD/JPY last night, have not reentered.

USD/CHF still has not triggered.
  • #343
  • Jan 17, 2007 11:06am Jan 17, 2007 11:06am
Nice movement on the Pound today...
  • #344
  • Jan 17, 2007 11:37am Jan 17, 2007 11:37am
Does anybody have any stats on how this does with the GBP/JPY? I think with a little larger stop loss, it could be very profitable also.
Life is too short to have anything but delusional notions about yourself.
  • #345
  • Jan 17, 2007 12:13pm Jan 17, 2007 12:13pm
WOOHOO 80 pips as i wake up today

can u say woohoo okok so what did i do this week differently i really felt in my case it was fine for me to put a 50 pip stoploss on gbpusd because of the amount of news coming out this week and the way gbp whipsaws in news so i went with my gut and NEVER GOT STOPPED OUT.

of course the r/r ratio is a little worse but i felt it was worth it to test what felt like a potentially more profitable system to me.

anyhow stats so far are as follows for me i went long based on my tick data on oanda at

LONG at 1.9636
stop loss was at 50 so stoploss at 1.9586
cant blv how lucky i was this week missed stoploss by 2 pips
reentered trade again when it passed by 1.9660 on unrelated trade trading different strategy and my takeprofit was at 700 for that trade to cover any possible stop out on this trade.

status right now
up 40 pips from second trade and up 80 pips from original trade.

i dont know about the rest of u guys but all the systems i test usually fail miserably for me and i just feel like this one is too easy to mess up

THANKS TKIMBLE
what a great easy to use system
(ur saving noobs like me from evil brokers who hedge against me)
  • #346
  • Jan 17, 2007 12:48pm Jan 17, 2007 12:48pm
Good work so far, Theodore.

One word of caution: a 50-pip stoploss versus 30 can add up pretty quickly if you're not careful.

In a week with a lot of whipsaws, let's say stopping out 4 times before finding the trend, that's 80 pips of lost profit versus using a 30-pip spread. In a flat, non-trending week, that can make a huge difference when you close things out on Friday.

I've gone back and looked at the plus-minus of using smaller or larger stops, and I think 30 is about as good as it gets in preventing loss without taking you out of too many trades.

Just something to think about.
  • #347
  • Jan 17, 2007 1:04pm Jan 17, 2007 1:04pm
I used the 30 pip stop loss this week based on a 1.9591 close. I was stopped out twice, but I am up overall 10-20 pips right now.
Life is too short to have anything but delusional notions about yourself.
  • #348
  • Jan 17, 2007 1:07pm Jan 17, 2007 1:07pm
BTW, has TK posted his daily wealth builder system yet?
  • #349
  • Jan 17, 2007 1:42pm Jan 17, 2007 1:42pm
UT thanks will do.
Quoting ut2DaMax
according to the method, you would now place a buy again @ 1.9638. I hope you are paper trading yet. Make sure you understand the tkimble Method. I would go back through the whole Thread and reread it all.

Reread post #149 by tkimble also. Also Money Management ( # 23) IMO

Thanks

ut2DaMax
  • #350
  • Jan 17, 2007 1:51pm Jan 17, 2007 1:51pm
I haven't seen it yet..waiting patiently for that one...

Quoting MillerHighLife
BTW, has TK posted his daily wealth builder system yet?
  • #351
  • Jan 17, 2007 6:40pm Jan 17, 2007 6:40pm
I am trading this system on the GBP/JPY at the moment. Once I am out of another system's trade, I will be including the GBP/USD as well.

I have changed one thing tho. I really do not wish to give up pips. I also am extremely interested in the compounding effect that Tkimble's excel file shows making 100pips per week.

My initial entry & stop losses are the same. I am looking to take profit at 150pips + the spread (so in my case T/P @ 158). If I am stopped out before T/P, I stick to tkimble's original re-entry but my new T/P will be 150pips+spread+stop-loss (30). If stopped out again, I add another stop-loss to the t/p... etc..

The major change is, of course, the take profit. If I DO take profit at my t/p level, I straddle my exit with 30pip re-entries both long & short. Stop-losses on these 30 pips away. After my initial 150+/- t/p, I let any subsequent re-entries ride until Friday's close.

I feel this should enable me to take 150pips profit on many weeks, and still be able to ride any trends that develop. It is also possible that I can ride one way, take 150pip profit, reverse and profit again once I close out on Friday.

By the way, I haven't done a full backtest on GBP/JPY, but even with the initial entry/stop-loss rules it appears to be a major pip maker. 30 pip risk with in many weeks over 400pip profit (I'm not sure of the average, but I'm pretty sure it's well over 200pips/week). One of the weeks I tested made over 600 pips. The Risk to Reward ratio is definitely better here than on GBP/USD....

Happy pippin' to all!

Daemien

PS: Proper backtesting on GBP/JPY to follow soon...
  • #352
  • Jan 17, 2007 6:57pm Jan 17, 2007 6:57pm
Quoting Daemien
I am trading this system on the GBP/JPY at the moment. Once I am out of another system's trade, I will be including the GBP/USD as well.

I have changed one thing tho. I really do not wish to give up pips. I also am extremely interested in the compounding effect that Tkimble's excel file shows making 100pips per week.

My initial entry & stop losses are the same. I am looking to take profit at 150pips + the spread (so in my case T/P @ 158). If I am stopped out before T/P, I stick to tkimble's original re-entry but my new T/P will be 150pips+spread+stop-loss (30). If stopped out again, I add another stop-loss to the t/p... etc..

The major change is, of course, the take profit. If I DO take profit at my t/p level, I straddle my exit with 30pip re-entries both long & short. Stop-losses on these 30 pips away. After my initial 150+/- t/p, I let any subsequent re-entries ride until Friday's close.

I feel this should enable me to take 150pips profit on many weeks, and still be able to ride any trends that develop. It is also possible that I can ride one way, take 150pip profit, reverse and profit again once I close out on Friday.

By the way, I haven't done a full backtest on GBP/JPY, but even with the initial entry/stop-loss rules it appears to be a major pip maker. 30 pip risk with in many weeks over 400pip profit (I'm not sure of the average, but I'm pretty sure it's well over 200pips/week). One of the weeks I tested made over 600 pips. The Risk to Reward ratio is definitely better here than on GBP/USD....

Happy pippin' to all!

Daemien

PS: Proper backtesting on GBP/JPY to follow soon...
Looking forward to it.

Isn't tkimble also going to post a daily scalping method?

Kent F.
  • #353
  • Jan 17, 2007 9:50pm Jan 17, 2007 9:50pm
Quoting hoss
Does anybody have any stats on how this does with the GBP/JPY? I think with a little larger stop loss, it could be very profitable also.
I have been trading the GBP/JPY market with a modified version of this system for the last three weeks. As luck would have it, the last three weeks have been very profitable. I have made an adjustment which works very well with this particular market which can "run fast and jump high". The adjustments are more consistent with the daily scalping approach (yet to be posted) and require a bit more trading stamina but ultimately have produced great profits. Also, three weeks is a bit slim to proclaim a sustainable profit trend.

The adjustments are as follows:

1. Create weekly bar GBP/JPY chart.

2. Place Buy order only 21 pips from the Sunday close. Not the Friday close.

3. Place Sell order only 21 Pips from the Sunday close. Again, not the Friday close.

4. Enter 40 PIP stops with each trade.

4. Monitor market very closely becuase you will get stopped out more frequently but with smaller losses.

5. Immediately replace the trade when stopped out. Since your stop is at 40 PIPs and the reverse order are 42 PIPs apart, you will be entered into more trades automatically. The upside is that you will participate in trends earlier once they evolve.

6. Caution: This system is not for the timid and you must stick with the system.

I am currently long the GBP/JPY at 235.99 and the market has just leaped a bit higher as I am typing.

The big difference from the other weekly scalping system is as follows:

1. Do not adjust the opposite trade to the previous weeks close after the initial trade is entered.

2. Trading within a 42 PIP trading range (21 + 21 Pips) of the Sunday close, not the Friday close.

3. Enjoy earlier entry into emerging trends...

Happy Trading,

Tkimble
  • #354
  • Edited 10:08pm Jan 17, 2007 10:02pm | Edited 10:08pm
Another characteristic of this system is that the beginning of the week is typically choppy and generates losses. These losses are generally recovered towards the end of the Tuesday trading day whereby a breakeven position can be attained by the 2.5 trading day (or half way into the trading week). Profits then become sustained for the remaining 2.5 days of the trading week.

Once you understand and accept the nature of the system (early losses result in later Gains), you do not feel as bad when the losses occur becuase you know that you stand a very good chance of recapturing your losses and enjoying profits towards the end of the week.

It is equivalent to owning a business which incurs fixed and variable costs. This is a variable cost which is eclipsed almost weekly by the eventual cash flow created by catching an riding the trend. In essence, if you choose to trade this system, you have chosen to run a trend riding business.

I never think of losses as losses but only as temporraty reductions in profit.

Again, psychology of trading is everything...

Hope this makes sense.

Happy Trading,

Tkimble
  • #355
  • Jan 17, 2007 10:11pm Jan 17, 2007 10:11pm
I've been testing 9 different pairs with the basic system here are my current results in pip profits. All positions are long as of this time.

EURUSD = -8
GBPUSD = +81
GBPJPY = +169
USDCAD = -11
EURJPY = +64
USD JPY = +7


I am also testing the following pairs but they have yet to be triggered.

AUDUSD, USDCHF, EUR/GBP

I'm currently up over 250 pips as of this time. I like what I have tested so far.



Thank you kimble for introducing this to the forum.
  • #356
  • Jan 17, 2007 10:22pm Jan 17, 2007 10:22pm
I am glad to see that others are applying great thinking and profiting from this system. I believe that simplicity is the key to all things in life. Not trying to pontificate but everything created by humans can likewise be simplified by humans.

Warren Buffet said it the best when he stated that you really only have to make "three or four great trades" during your entire life. I will qualify that statement by saying WB lost quite a sum in the currency world but he can certainly afford it and has earned the right to speak his mind.

In case you are interested in simplicity, down load and read some of Berkshire Hathaway's annual reports. Simple, easy and full of wisdom from perhaps the greatest company in the world.

OK. Enough of my philosophy.

This forum is a lot of fun. Wish I had more time to contribute...

Happy Trading,

Tkimble
  • #357
  • Jan 17, 2007 11:06pm Jan 17, 2007 11:06pm
Quoting tkimble
I have been trading the GBP/JPY market with a modified version of this system for the last three weeks. As luck would have it, the last three weeks have been very profitable. I have made an adjustment which works very well with this particular market which can "run fast and jump high". The adjustments are more consistent with the daily scalping approach (yet to be posted) and require a bit more trading stamina but ultimately have produced great profits. Also, three weeks is a bit slim to proclaim a sustainable profit trend.

The adjustments are as follows:

1. Create weekly bar GBP/JPY chart.

2. Place Buy order only 21 pips from the Sunday close. Not the Friday close.

3. Place Sell order only 21 Pips from the Sunday close. Again, not the Friday close.

4. Enter 40 PIP stops with each trade.

4. Monitor market very closely becuase you will get stopped out more frequently but with smaller losses.

5. Immediately replace the trade when stopped out. Since your stop is at 40 PIPs and the reverse order are 42 PIPs apart, you will be entered into more trades automatically. The upside is that you will participate in trends earlier once they evolve.

6. Caution: This system is not for the timid and you must stick with the system.

I am currently long the GBP/JPY at 235.99 and the market has just leaped a bit higher as I am typing.

The big difference from the other weekly scalping system is as follows:

1. Do not adjust the opposite trade to the previous weeks close after the initial trade is entered.

2. Trading within a 42 PIP trading range (21 + 21 Pips) of the Sunday close, not the Friday close.

3. Enjoy earlier entry into emerging trends...

Happy Trading,

Tkimble

I think this would work! I will look to see how this works as well next week. Is the GBP/JPY better for this version of the weekly, or just this week? Still waiting for the daily system. Thanks tkimble!

ut2DaMax
  • #358
  • Jan 18, 2007 1:46am Jan 18, 2007 1:46am
Quoting Daemien
I am trading this system on the GBP/JPY at the moment. Once I am out of another system's trade, I will be including the GBP/USD as well.

I have changed one thing tho. I really do not wish to give up pips. I also am extremely interested in the compounding effect that Tkimble's excel file shows making 100pips per week.

My initial entry & stop losses are the same. I am looking to take profit at 150pips + the spread (so in my case T/P @ 158). If I am stopped out before T/P, I stick to tkimble's original re-entry but my new T/P will be 150pips+spread+stop-loss (30). If stopped out again, I add another stop-loss to the t/p... etc..

The major change is, of course, the take profit. If I DO take profit at my t/p level, I straddle my exit with 30pip re-entries both long & short. Stop-losses on these 30 pips away. After my initial 150+/- t/p, I let any subsequent re-entries ride until Friday's close.

I feel this should enable me to take 150pips profit on many weeks, and still be able to ride any trends that develop. It is also possible that I can ride one way, take 150pip profit, reverse and profit again once I close out on Friday.

By the way, I haven't done a full backtest on GBP/JPY, but even with the initial entry/stop-loss rules it appears to be a major pip maker. 30 pip risk with in many weeks over 400pip profit (I'm not sure of the average, but I'm pretty sure it's well over 200pips/week). One of the weeks I tested made over 600 pips. The Risk to Reward ratio is definitely better here than on GBP/USD....

Happy pippin' to all!

Daemien

PS: Proper backtesting on GBP/JPY to follow soon...
I agree that there is great promise on the GBP/JPY. Look forward to seeing your backtest resulsts. Last week i made over 600 pips on this pair alone. This week may be close to the same. I don't think you even need to adjust the entry straddles or stop loss. Right now i'm trading both this and the GBP/USD. It is a lot of fun.

One question i have Daemien, is why do you take profit so early instead of just letting it run? The basis of using the Weekly bars in the system is to let the trending componet on a weekly basis do its thing without having to do all the fussing. The successful traders encourage us to stop being afraid of "losing" and let your profits run. Just a thought.

Looks like this week will be highly profitable on this and the GBP/usd. The trade ain't over until its over ...at the end of the week!

Great trading all..


Jim No
  • #359
  • Jan 18, 2007 2:12am Jan 18, 2007 2:12am
i wish reputation points are revived caused tk deserves all the points we can vote for in an earlier life he probably would have been an alchemist

Quoting tkimble
I am glad to see that others are applying great thinking and profiting from this system. I believe that simplicity is the key to all things in life. Not trying to pontificate but everything created by humans can likewise be simplified by humans.

Warren Buffet said it the best when he stated that you really only have to make "three or four great trades" during your entire life. I will qualify that statement by saying WB lost quite a sum in the currency world but he can certainly afford it and has earned the right to speak his mind.

In case you are interested in simplicity, down load and read some of Berkshire Hathaway's annual reports. Simple, easy and full of wisdom from perhaps the greatest company in the world.

OK. Enough of my philosophy.

This forum is a lot of fun. Wish I had more time to contribute...

Happy Trading,

Tkimble
  • #360
  • Jan 18, 2007 2:14am Jan 18, 2007 2:14am
James i think the difference to your trading and Damien's is you are sticking to tk's system absolutely? thats what i garnered from your posts and communication.

thks

Quoting james275
I agree that there is great promise on the GBP/JPY. Look forward to seeing your backtest resulsts. Last week i made over 600 pips on this pair alone. This week may be close to the same. I don't think you even need to adjust the entry straddles or stop loss. Right now i'm trading both this and the GBP/USD. It is a lot of fun.

One question i have Daemien, is why do you take profit so early instead of just letting it run? The basis of using the Weekly bars in the system is to let the trending componet on a weekly basis do its thing without having to do all the fussing. The successful traders encourage us to stop being afraid of "losing" and let your profits run. Just a thought.

Looks like this week will be highly profitable on this and the GBP/usd. The trade ain't over until its over ...at the end of the week!

Great trading all..


Jim No
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