Has anyone put together an EA for this strategy yet?
- #22
- Jan 20, 2007 10:21am Jan 20, 2007 10:21am
- Joined Dec 2006 | Status: call me Kevin | 1,263 Posts
Leguimp posted this code for Trade Station in my other thread. As I'm not a coder, I don't know if it includes the RSI scenarios. It doesn't appear to from the looks of the graph. He mentions that it would be easily converted to mq4 for those that need it:
[LegacyColorValue = true];
{************************************************* **********************
Indicator..........: Power RSI Pivot by FEDSignal.com
Destination........: Counter-Trend System
E-Mail.............: [email protected]
Last Modified Date.: 06/26/2003
Type Signals.......: Only RSI Pivot
Interval Settings..: Tick Bar, Volume Bar, TimeBar.
Aplication.........: RadarScreen 7.XX, TradeSation 7.XX
RadarScreen
, TradeSation are registered trademarks of TradeStation Technologies, Inc.
************************************************** ***********************}
{
(Note: as of 10/2005, combs is now _Nemo and Orc is now Kharkov)
Orc, 6/27/2003 - posted in topic 13560
eKam, 6/29/2003 - code cleaned up
- added short signals
ekam, 7/26/2003 - plot support / resistence lines
- added reverse divergence signals
ekam, 7/30/2003 - added alerts in the style of combs and RalphP
ekam, 10/19/2005 - added alerts when S/R levels are breached
codetalker 11/28/2005 - compressed the code into a new format
}
Inputs:
Length(7),
Price((o+c)/2),
Mult(0.0005);
Inputs:
MarkPlain(False),
MarkDiver(False),
MarkRevDiver(true),
MarkSupport(true),
MarkResistance(true),
DrawHLines(true);
Variables:
k_15(15),
k_50(50),
RSIWAvg(0);
Variables:
lastRSIAtPivotLo(0),lastPriceAtPivotLo(0),lastLoAt PivotLo(0),
lastRSIAtPivotHi(0),lastPriceAtPivotHi(0),lastHiAt PivotHi(0);
{ figure out long/short threshold }
Variables:
idx(0),
RSIAvg(0),
longThreshold(0),
shrtThreshold(0),
_RSI(0);
Variables:
alertTextID(-1);
Variables:
lngDiverColor(green),
lngRSIColor(darkgreen),
lngRevDiverColor(cyan);
Variables:
srtDiverColor(red),
srtRSIColor(darkred),
srtRevDiverColor(yellow);
Variables:
PColor(0),
TextFlag(False),
AlertMsg("");
Variables:
pRSIWAvg_lThres(False),
pRSIWAvg_sThres(False);
Variables:
WasLBarRSIPivotHigh(False),
WasLBarRSIPivotLow(False),
WeAreRSIDiverL(False),
WeAreRSIDiverS(False),
WeAreRSILong(False),
WeAreRSIShort(False),
WeAreRSIDiverRevL(False),
WeAreRSIDiverRevS(False),
PlotAShortPosition(False),
PlotALongPosition(False);
_RSI = RSI(Price,Length);
RSIAvg = Average(_RSI,k_50);
RSIWAvg = WAverage(_RSI,3);
longThreshold = 60 - (100-RSIAvg)/1.68;
shrtThreshold = 40 + (RSIAvg)/1.68;
{ Common Conditions }
pRSIWAvg_lThres=RSIWAvg[1] < (longThreshold + k_15);
pRSIWAvg_sThres=RSIWAvg[1] > (shrtThreshold - k_15); // let's just calculate it once
{ Long Condition SetUps }
WasLBarRSIPivotLow= RSIWAvg[1] < RSIWAvg And CountIf(RSIWAvg[1] < RSIWAvg[2],3)=3;
WeAreRSIDiverL= pRSIWAvg_lThres and { RSI was "low enough" look for divergence }
Price < lastPriceAtPivotLo and { price was higher in last RSI pivot low, but }
LastRSIAtPivotLo < _RSI and MarkDiver; { RSI was lower => divergence }
WeAreRSILong= RSIWAvg[1] < longThreshold and MarkPlain; { no divergence, but RSI very low, and so it's worth noting }
WeAreRSIDiverRevL= pRSIWAvg_sThres AND { RSI was "high enough" } { a pivot low while RSI reading is high, look for rev divergence }
Price > lastPriceAtPivotLo AND { price was higher in last RSI pivot low, but }
LastRSIAtPivotLo < _RSI and MarkRevDiver; { RSI was lower => rev divergence }
PlotALongPosition=WeAreRSIDiverL or WeAreRSILong or WeAreRSIDiverRevL;
{ Short Condition SetUps }
WasLBarRSIPivotHigh=RSIWAvg[1] > RSIWAvg And CountIf(RSIWAvg[1] > RSIWAvg[2],3)=3; { last bar was a RSI pivot high }
WeAreRSIDiverS= pRSIWAvg_sThres and { RSI was "high enough" for a pivot high, look for divergence }
Price > lastPriceAtPivotHi and { price was higher in last RSI pivot high, but }
lastRSIAtPivotHi > _RSI and MarkDiver; { RSI was higher => divergence }
WeAreRSIShort= RSIWAvg[1] > shrtThreshold and MarkPlain; { no divergence, but RSI very high, and so it's worth noting }
WeAreRSIDiverRevS= pRSIWAvg_lThres and { RSI was "low enough" } { a pivot high while RSI reading is low, look for rev divergence }
Price < lastPriceAtPivotHi and { price was lower in last RSI pivot high, but }
lastRSIAtPivotHi > _RSI and MarkRevDiver; { RSI was higher => rev divergence }
PlotAShortPosition=WeAreRSIDiverS or WeAreRSIShort or WeAreRSIDiverRevS;
{ Let the Code flow }
If CurrentBar = 1 then AlertTextID = Text_New(date,time,0,"RSI");
{ drawing related variables }
{ long signal }
If WasLBarRSIPivotLow Then { last bar was a RSI pivot low }
Begin
If WeAreRSIDiverL Then
begin
PColor=lngDiverColor; { plot a "significant" long signal }
AlertMsg="RSI diver long";
end else
if WeAreRSILong then
begin
PColor=lngRSIColor; { plot a normal long signal }
AlertMsg="RSI long";
end else
if WeAreRSIDiverRevL Then
Begin
PColor=lngRevDiverColor;
AlertMsg="RSI rev diver long";
End;
If PlotALongPosition Then { Some long condition wants to Plot }
Begin
Plot1(L-L*mult,"long",PColor);
If Text_GetTime(alertTextID) <> time then
Begin
text_setLocation(alertTextID, date, time, 0);
alert(AlertMsg);
End;
End;
lastPriceAtPivotLo = Price;
lastLoAtPivotLo = L;
lastRSIAtPivotLo = _RSI;
End; { WasLastBarRSIPivotLow }
If DrawHLines Then
Begin
If lastLoAtPivotLo <> 0 and MarkSupport then
begin
Plot3(lastLoAtPivotLo,"lastL@pivotL");
if lastLoAtPivotLo <> lastLoAtPivotLo[1] and Text_GetTime(alertTextID) <> time then
begin
AlertMsg="RSI support";
TextFlag=True;
end;
end;
If lastHiAtPivotHi <> 0 and MarkResistance then
Begin
Plot4(lastHiAtPivotHi,"lastH@pivotH");
if lastHiAtPivotHi <> lastHiAtPivotHi[1] and Text_GetTime(alertTextID) <> time then
begin
AlertMsg="RSI resistance";
TextFlag=True;
End;
End;
End;
If Text_GetTime(alertTextID) <> time Then
Begin
If close crosses below lastLoAtPivotLo then
begin
AlertMsg="Below support";
TextFlag=True;
end Else
if close crosses above lastHiAtPivotHi then
Begin
AlertMsg="Above resistance";
TextFlag=True;
end;
End;
If TextFlag Then
Begin
text_setLocation(alertTextID, date, time, 0);
Alert(AlertMsg);
TextFlag=False;
End;
{ short signal }
If WasLBarRSIPivotHigh Then { last bar was a RSI pivot high }
Begin
If WeAreRSIDiverS Then { plot a "significant" short signal }
Begin
PColor=srtDiverColor;
AlertMsg="RSI diver short";
end else
if WeAreRSIShort then { plot a normal short signal }
begin
PColor=srtRSIColor;
AlertMsg="RSI short";
end Else
If WeAreRSIDiverRevS Then
Begin
PColor=srtRevDiverColor;
AlertMsg="RSI rev diver short";
end;
If PlotAShortPosition Then { Some short condition wants to Plot }
Begin
Plot2(H+H*mult,"short",PColor);
If Text_GetTime(alertTextID) <> time then
Begin
text_setLocation(alertTextID, date, time, 0);
Alert(AlertMsg);
End;
End;
lastPriceAtPivotHi = Price;
lastHiAtPivotHi = H;
lastRSIAtPivotHi = _RSI;
End; { WasLastBarRSIPivotHigh }
[LegacyColorValue = true];
{************************************************* **********************
Indicator..........: Power RSI Pivot by FEDSignal.com
Destination........: Counter-Trend System
E-Mail.............: [email protected]
Last Modified Date.: 06/26/2003
Type Signals.......: Only RSI Pivot
Interval Settings..: Tick Bar, Volume Bar, TimeBar.
Aplication.........: RadarScreen 7.XX, TradeSation 7.XX
RadarScreen
, TradeSation are registered trademarks of TradeStation Technologies, Inc.************************************************** ***********************}
{
(Note: as of 10/2005, combs is now _Nemo and Orc is now Kharkov)
Orc, 6/27/2003 - posted in topic 13560
eKam, 6/29/2003 - code cleaned up
- added short signals
ekam, 7/26/2003 - plot support / resistence lines
- added reverse divergence signals
ekam, 7/30/2003 - added alerts in the style of combs and RalphP
ekam, 10/19/2005 - added alerts when S/R levels are breached
codetalker 11/28/2005 - compressed the code into a new format
}
Inputs:
Length(7),
Price((o+c)/2),
Mult(0.0005);
Inputs:
MarkPlain(False),
MarkDiver(False),
MarkRevDiver(true),
MarkSupport(true),
MarkResistance(true),
DrawHLines(true);
Variables:
k_15(15),
k_50(50),
RSIWAvg(0);
Variables:
lastRSIAtPivotLo(0),lastPriceAtPivotLo(0),lastLoAt PivotLo(0),
lastRSIAtPivotHi(0),lastPriceAtPivotHi(0),lastHiAt PivotHi(0);
{ figure out long/short threshold }
Variables:
idx(0),
RSIAvg(0),
longThreshold(0),
shrtThreshold(0),
_RSI(0);
Variables:
alertTextID(-1);
Variables:
lngDiverColor(green),
lngRSIColor(darkgreen),
lngRevDiverColor(cyan);
Variables:
srtDiverColor(red),
srtRSIColor(darkred),
srtRevDiverColor(yellow);
Variables:
PColor(0),
TextFlag(False),
AlertMsg("");
Variables:
pRSIWAvg_lThres(False),
pRSIWAvg_sThres(False);
Variables:
WasLBarRSIPivotHigh(False),
WasLBarRSIPivotLow(False),
WeAreRSIDiverL(False),
WeAreRSIDiverS(False),
WeAreRSILong(False),
WeAreRSIShort(False),
WeAreRSIDiverRevL(False),
WeAreRSIDiverRevS(False),
PlotAShortPosition(False),
PlotALongPosition(False);
_RSI = RSI(Price,Length);
RSIAvg = Average(_RSI,k_50);
RSIWAvg = WAverage(_RSI,3);
longThreshold = 60 - (100-RSIAvg)/1.68;
shrtThreshold = 40 + (RSIAvg)/1.68;
{ Common Conditions }
pRSIWAvg_lThres=RSIWAvg[1] < (longThreshold + k_15);
pRSIWAvg_sThres=RSIWAvg[1] > (shrtThreshold - k_15); // let's just calculate it once
{ Long Condition SetUps }
WasLBarRSIPivotLow= RSIWAvg[1] < RSIWAvg And CountIf(RSIWAvg[1] < RSIWAvg[2],3)=3;
WeAreRSIDiverL= pRSIWAvg_lThres and { RSI was "low enough" look for divergence }
Price < lastPriceAtPivotLo and { price was higher in last RSI pivot low, but }
LastRSIAtPivotLo < _RSI and MarkDiver; { RSI was lower => divergence }
WeAreRSILong= RSIWAvg[1] < longThreshold and MarkPlain; { no divergence, but RSI very low, and so it's worth noting }
WeAreRSIDiverRevL= pRSIWAvg_sThres AND { RSI was "high enough" } { a pivot low while RSI reading is high, look for rev divergence }
Price > lastPriceAtPivotLo AND { price was higher in last RSI pivot low, but }
LastRSIAtPivotLo < _RSI and MarkRevDiver; { RSI was lower => rev divergence }
PlotALongPosition=WeAreRSIDiverL or WeAreRSILong or WeAreRSIDiverRevL;
{ Short Condition SetUps }
WasLBarRSIPivotHigh=RSIWAvg[1] > RSIWAvg And CountIf(RSIWAvg[1] > RSIWAvg[2],3)=3; { last bar was a RSI pivot high }
WeAreRSIDiverS= pRSIWAvg_sThres and { RSI was "high enough" for a pivot high, look for divergence }
Price > lastPriceAtPivotHi and { price was higher in last RSI pivot high, but }
lastRSIAtPivotHi > _RSI and MarkDiver; { RSI was higher => divergence }
WeAreRSIShort= RSIWAvg[1] > shrtThreshold and MarkPlain; { no divergence, but RSI very high, and so it's worth noting }
WeAreRSIDiverRevS= pRSIWAvg_lThres and { RSI was "low enough" } { a pivot high while RSI reading is low, look for rev divergence }
Price < lastPriceAtPivotHi and { price was lower in last RSI pivot high, but }
lastRSIAtPivotHi > _RSI and MarkRevDiver; { RSI was higher => rev divergence }
PlotAShortPosition=WeAreRSIDiverS or WeAreRSIShort or WeAreRSIDiverRevS;
{ Let the Code flow }
If CurrentBar = 1 then AlertTextID = Text_New(date,time,0,"RSI");
{ drawing related variables }
{ long signal }
If WasLBarRSIPivotLow Then { last bar was a RSI pivot low }
Begin
If WeAreRSIDiverL Then
begin
PColor=lngDiverColor; { plot a "significant" long signal }
AlertMsg="RSI diver long";
end else
if WeAreRSILong then
begin
PColor=lngRSIColor; { plot a normal long signal }
AlertMsg="RSI long";
end else
if WeAreRSIDiverRevL Then
Begin
PColor=lngRevDiverColor;
AlertMsg="RSI rev diver long";
End;
If PlotALongPosition Then { Some long condition wants to Plot }
Begin
Plot1(L-L*mult,"long",PColor);
If Text_GetTime(alertTextID) <> time then
Begin
text_setLocation(alertTextID, date, time, 0);
alert(AlertMsg);
End;
End;
lastPriceAtPivotLo = Price;
lastLoAtPivotLo = L;
lastRSIAtPivotLo = _RSI;
End; { WasLastBarRSIPivotLow }
If DrawHLines Then
Begin
If lastLoAtPivotLo <> 0 and MarkSupport then
begin
Plot3(lastLoAtPivotLo,"lastL@pivotL");
if lastLoAtPivotLo <> lastLoAtPivotLo[1] and Text_GetTime(alertTextID) <> time then
begin
AlertMsg="RSI support";
TextFlag=True;
end;
end;
If lastHiAtPivotHi <> 0 and MarkResistance then
Begin
Plot4(lastHiAtPivotHi,"lastH@pivotH");
if lastHiAtPivotHi <> lastHiAtPivotHi[1] and Text_GetTime(alertTextID) <> time then
begin
AlertMsg="RSI resistance";
TextFlag=True;
End;
End;
End;
If Text_GetTime(alertTextID) <> time Then
Begin
If close crosses below lastLoAtPivotLo then
begin
AlertMsg="Below support";
TextFlag=True;
end Else
if close crosses above lastHiAtPivotHi then
Begin
AlertMsg="Above resistance";
TextFlag=True;
end;
End;
If TextFlag Then
Begin
text_setLocation(alertTextID, date, time, 0);
Alert(AlertMsg);
TextFlag=False;
End;
{ short signal }
If WasLBarRSIPivotHigh Then { last bar was a RSI pivot high }
Begin
If WeAreRSIDiverS Then { plot a "significant" short signal }
Begin
PColor=srtDiverColor;
AlertMsg="RSI diver short";
end else
if WeAreRSIShort then { plot a normal short signal }
begin
PColor=srtRSIColor;
AlertMsg="RSI short";
end Else
If WeAreRSIDiverRevS Then
Begin
PColor=srtRevDiverColor;
AlertMsg="RSI rev diver short";
end;
If PlotAShortPosition Then { Some short condition wants to Plot }
Begin
Plot2(H+H*mult,"short",PColor);
If Text_GetTime(alertTextID) <> time then
Begin
text_setLocation(alertTextID, date, time, 0);
Alert(AlertMsg);
End;
End;
lastPriceAtPivotHi = Price;
lastHiAtPivotHi = H;
lastRSIAtPivotHi = _RSI;
End; { WasLastBarRSIPivotHigh }
- #25
- Jan 20, 2007 7:28pm Jan 20, 2007 7:28pm
- Joined Dec 2006 | Status: call me Kevin | 1,263 Posts
Hey Kevin,
Closed my EUR/JPY for +155 pips.
Thanks for the help.
Wow, good trading! I'm glad you've had some success! Keep me posted on your future trades. And it is my pleasure to help you, and anyone else for that matter!
a suggestion,
post the trades with:
date and value of entry
stop loss
date and value of exit
and any observation about some discrection, if any, about the trade (something outside of the rules - why you entered, why you exit,...).
On this way we can compare and study the trades of each other.
Wodwave,
Very good suggestion. I have this disorder where I think people can read my mind
, but I'll try to clarify my thought process on my trades from here on out with entry and exit DATES. Also, a fellow texan and I are starting to correspond with each other via AOL instant messenger to tell each other our trades. If you are interested my screen name is "imcoldwithin", and I will try to be online each week during the day.Regards,
Kevin
- #26
- Jan 22, 2007 8:01am Jan 22, 2007 8:01am
- Joined Dec 2006 | Status: call me Kevin | 1,263 Posts
I have no realized gains but unrealized gains are decent. Feel free to post your trades for comments and criticisms
My trades:
Long GBP/USD @ 1.9643 S/L 1.9633 = 94 pips
Long AUD/JPY @ 94.87 S/L 95.07 = 82 pips
Long USD/JPY @ 120.68 S/L 120.32 = 58 pips
Long USD/CHF @ 1.2521 S/L 1.2416 = -46 pips
Net Unrealized pips = 188
Long GBP/USD @ 1.9643 S/L 1.9633 = 115 pips
Long AUD/JPY @ 94.87 S/L 95.07 = 112 pips
Long USD/JPY @ 120.68 S/L 120.32 = 99 pips
Long USD/CHF @ 1.2521 S/L 1.2416 = -17 pips
Net Unrealized pips = 309
With future trades, I will try to be more specific.. Sorry
Woke up to a pleasant surprise this morning:
Long GBP/USD @ 1.9643 S/L 1.9633 = 115 pips
Long AUD/JPY @ 94.87 S/L 95.07 = 112 pips
Long USD/JPY @ 120.68 S/L 120.32 = 99 pips
Long USD/CHF @ 1.2521 S/L 1.2416 = -17 pips
Net Unrealized pips = 309
With future trades, I will try to be more specific.. Sorry
Thanks,
Tim4kaye
- #31
- Jan 22, 2007 10:30am Jan 22, 2007 10:30am
- Joined Dec 2006 | Status: call me Kevin | 1,263 Posts
Kevin You are right about brokers differences. I use Interbank FX and the close numbers are slightly different but I see where you are coming from. I do like the simplicity of this system and I specifically like being able to review the numbers in the evening at 00:00 GMT. I, like most people still have a day job, which often prohibits me from following the markets the way I need to. Most systems (I have paid big bucks for two of them) do require staying in front of your trading station all day or all night (London open).
Thank you so much for sharing your knowledge and I appreciate your patience.
Tim4kaye
It is nice to only HAVE to look once a day. I still get the urge to keep an eye on things.. I'm only a 19 year old college kid working part time, but I think this is what I want to do for a living, so I'm kind of putting all my eggs in one basket here . But anyway, I'm glad you think this will work for you! My only advice would be to make sure you KNOW pivots, because they are the most important thing here. Keep checking back because I will post my trades as I go, and you can see if you're getting the idea!Cheers,
Kevin
- #32
- Jan 22, 2007 11:14am Jan 22, 2007 11:14am
Cheers,
Kevin
Good luck to you and I believe you and my son are on the right track to financial freedom.
Thanks and I will be watching your systems thread for further updates. I also made a note of your AIM screen name and we may contact soon.
Tim4kaye
- #33
- Jan 22, 2007 11:22am Jan 22, 2007 11:22am
- | Joined Dec 2006 | Status: AKA "Yen" | 1,654 Posts
Greetings from Guanajuato, Mexico
- #34
- Jan 22, 2007 11:56am Jan 22, 2007 11:56am
- Joined Dec 2006 | Status: call me Kevin | 1,263 Posts
Kevin,
I'm new to your system but not to Forex in general, so here's my 2 pips worth regarding your question.
My advice would be to stick to low leverage trading. The goal in Forex is to stay in the game long-term.
If memory serves me correctly, I believe you said your average trade in backtesting netted you well over 100 pips. I'm not sure if you fully realize the power of your system . . . most traders only dream of those kind of gains on a consistent, repeatable basis, so low-leverage trading will still allow your account to grow significantly each year.
High-leverage trading may seem attractive in some respects, but consider what it might do to your trading discipline. Even a great system like yours may go through rough patches at times. Since you suggest a 100-pip stop loss to start, high-leverage trading can cut into your equity quickly during a series of losses. When that happens, how will you handle it psychologically? it can be extremely difficult to maintain your discipline when a good trade comes around, i.e. the tendency may be to close a great trade prematurely just because of the previous losses.
Think of low-leverage trading as a "get rich slow" method. It may not be as attractive as "get rich quick", but it's much more certain.
If this advice seems sound to you, but you just can't get higher-leverage trading out of your mind, here's another suggestion: Your backtesting yielded the most pips with the GBP/USD pair. Try confining your higher leverage to that pair only and see how it works for you. In the end, though, I'm sure you would find that most long-term successful traders would highly recommend low-leverage trading.
By the way, on the one hand, I want to say congratulations on your current trades. On the other hand, for those of us new to your system, I'm anxious for some new pivots to form so we can get into the game too!
One final addendum . . . the suggestion in a previous post to document your trades a little more precisely was right on the mark. It will help those of us new to your system to see the trades through your eyes.
Thanks for taking the time to answer my question. I've had this preconceived notion that leverage is bad ever since I started forex trading(only a year ago!). With that being said, on 20:1 leverage I have managed to grow my account approximately 77% using a variety of self-contrived methods with news. This idea haunts me that if that would have been 50:1 leverage, man would I have a lot more money!
I feel that I am "cold" enough to not let losses bother me, but at the same time, I understand the risk. I have enough confidence in my system, and I think I'm going to make the step. Even with the high leverage situation, I am only going to risk 5% of my account per trade. I can't see my self losing 20 times in a row no matter how hard I try!In short, thanks for the advice; call me young, call me naive, but I'm going for it!
I do think that you're right about GBP/USD being a pair to start with, so that's probably what I'll do for now with some smaller lot-sized other pairs.And as far as my trades go now, I wish you guys could be on the money boat with me
!! From the looks of the charts, you might have your chance soon going short GBP/USD and AUD/JPY. There are some doji-esque candlesticks forming, but we'll have to see.I assure you that I will be MUCH more detailed with my future trades, because it not only helps you, but lets me think things through. Hopefully you guys will be there to call me out when I'm not following my system
Thanks,
Kevin
- #35
- Jan 22, 2007 12:51pm Jan 22, 2007 12:51pm
- | Joined Dec 2006 | Status: AKA "Yen" | 1,654 Posts
Kevin,
You seem to have your head squarely on your shoulders, so I'm sure you'll do well with whatever decision you make regarding leverage.
I hope the newbies looking for a trading system will give serious thought to the Daily Pivot system before they fry their brains trying to learn to scalp 5 pips on a 1-minute chart, or applying multiple indicators to a chart and trying to make sense of it, etc. Believe me, I've tried most of them and it quickly leads to burnout.
Your system is basic, yet very powerful, and your profit claims can easily be verified with some quick backtesting. Once you have the basics down, it's easy to see with a quick glance if you're in a new trade zone. Best of all, at least for me, it allows a life outside of trading. A few minutes a day can lead to some really outstanding profits using your system. Admittedly, I say that without having placed a trade using the system yet, but I have traded Forex extensively, and as mentioned, this is an easy system to backtest in order to verify results.
So newbies, set up a demo account where you trade this system exclusively so you can see the results, ask Kevin your questions (he seems to answer every post), and give his system a shot. It may end your search for a way to trade profitably. That's what it's all about!
You seem to have your head squarely on your shoulders, so I'm sure you'll do well with whatever decision you make regarding leverage.
I hope the newbies looking for a trading system will give serious thought to the Daily Pivot system before they fry their brains trying to learn to scalp 5 pips on a 1-minute chart, or applying multiple indicators to a chart and trying to make sense of it, etc. Believe me, I've tried most of them and it quickly leads to burnout.
Your system is basic, yet very powerful, and your profit claims can easily be verified with some quick backtesting. Once you have the basics down, it's easy to see with a quick glance if you're in a new trade zone. Best of all, at least for me, it allows a life outside of trading. A few minutes a day can lead to some really outstanding profits using your system. Admittedly, I say that without having placed a trade using the system yet, but I have traded Forex extensively, and as mentioned, this is an easy system to backtest in order to verify results.
So newbies, set up a demo account where you trade this system exclusively so you can see the results, ask Kevin your questions (he seems to answer every post), and give his system a shot. It may end your search for a way to trade profitably. That's what it's all about!
Greetings from Guanajuato, Mexico
- #36
- Jan 22, 2007 2:27pm Jan 22, 2007 2:27pm
- Joined Dec 2006 | Status: call me Kevin | 1,263 Posts
Kevin,
You seem to have your head squarely on your shoulders, so I'm sure you'll do well with whatever decision you make regarding leverage.
I hope the newbies looking for a trading system will give serious thought to the Daily Pivot system before they fry their brains trying to learn to scalp 5 pips on a 1-minute chart, or applying multiple indicators to a chart and trying to make sense of it, etc. Believe me, I've tried most of them and it quickly leads to burnout.
Your system is basic, yet very powerful, and your profit claims can easily be verified with some quick backtesting. Once you have the basics down, it's easy to see with a quick glance if you're in a new trade zone. Best of all, at least for me, it allows a life outside of trading. A few minutes a day can lead to some really outstanding profits using your system. Admittedly, I say that without having placed a trade using the system yet, but I have traded Forex extensively, and as mentioned, this is an easy system to backtest in order to verify results.
So newbies, set up a demo account where you trade this system exclusively so you can see the results, ask Kevin your questions (he seems to answer every post), and give his system a shot. It may end your search for a way to trade profitably. That's what it's all about!
Wow! You're too kind, really
! People are gonna think I'm paying ya to say these things.. Thanks for the very nice compliments. I am a true believer in karma, and it really is my pleasure to help you and anyone else that may need it.I think you bring up a very important point. A lot of people think that you must sacrifice time to make money in forex. I believe my system suggests results otherwise. No matter how much money you want to make in forex, it should never be a priority over your friends and family or your LIFE! So go have some fun and live a little! Have a drink and send me the bill
Regards,
Kevin
- #39
- Jan 22, 2007 8:04pm Jan 22, 2007 8:04pm
- Joined Dec 2006 | Status: call me Kevin | 1,263 Posts
Hi,
a example of trade:
candle 2 is the high pivot, candle 3 passed down the magic number (yellow line)
IF you take the trade after close candle 3 - on the close price (supposing you are checking once a day the graphs) you will get a 100 pip stop loss.
RSI just passed down 50 (48,55) on the close candle 3.
Kharvell did you see this trade on your backtests (GPB USD - 25.07.2006)? Something wrong or it is OK. This should be a lost trade that we could not avoid? Loose is also part of the game.
http://img150.imageshack.us/img150/3...ipiovt15ly.jpg
What's your RSI set at(Open, Close, Median, etc.)? I ask this because using Oanda, the RSI does not confirm that trade on July 25th. It dips to about 53.38, and I believe Oanda uses close.
Now, in regards to losing, EVERY SYSTEM LOSES. In fact, I lost 100 pips on GBP/USD last week. It's the end result that is important. Think about the stats of GBP/USD on the backtests I've produced.
Win/Loss % = ~76%
Average win per trade = ~130
Suppose we have 100 trades:
76 winners @ 130 pips = 9880 pips
24 losers @ 100 pips = 2400 pips
(Here I will give the benefit of the doubt that we lose 100 pips on ALL the trades. You and I both know this will not be the case.)
Net pips = 7400 pips
I would gladly lose 100 pips 24 times if it meant I would get 9880 pips for trying
That's just me though,
Kevin