FXTradepro "LUCKY 7" Journal

Quoting M.A.C.Doug

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I agree that a ranging period needs to be well established before starting the sequence so, like tdion said, the first 6 or 7 possible entries are not taken. The lucky seven just needs another lucky number to tell you how many back and forth bounces are ideal before starting a live sequence. The market could be tested to determine this.
I do like to define a ranging Channel and let it bounce a few times and go from there. Can this be tested? I would say that it could however since market conditions change I prefer to go with what I see and trade the price action at a certain time of day, generally prior to and going into the UK Session.

Also, a 10 pip stop for 50 pip gain seems a bit arbitrary. Is this based on research? The 10/50 ratio is one that I like from a Money Management standpoint. I have found that if the Average Daily Range (ADR) is at 100 or more than the 50 pip TP works well. The 10 pip SL is rather tight, however, if you enter carefully you can win much of the time. There are other considerations also BUT I like the 5:1 ratio and am comfortable with the 50 Pip TP but primarily on the lower spread pairs. You could possibly increase the Stop to 10 pips + spread x 5 = TP and I have considered that and even use that sometimes.

There would be an optimal number set that could be determined and would be different for each pair. These parameters would probably need to be updated regularly to keep up with changes in character of the currency.
Yes, the above could be done....

Alternatively, it may be better to make each trade idependant by letting the market decide the stop based on the size of the current channel.
This is another viable idea.....

Youve probably thought these ideas through already so forgive me if Im gong over old ground for you. I have considered all your points and suggestions and have traded this basic concept for a long time. I do what works for me and the nice thing about this Strategy is that each Trader can modify the settings to suit their own preferences.

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Quoting tdion

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After 7, do you call it a loss and move on?

What are we talking per year? Hundreds/Thousands % increase?

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Quoting alexwaller

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Congratulations on a good week, I began the demo today and closed out on the 4th progression for a win on eur/usd.

Keep up the good work!

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Quoting tdion

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I predict FXTradePro to become the new czar of Forex Factory, overpowering Philip Nel, Jacko, and Auslanco with this method.

The reason is that this method permits chaos to be part of the trading equation.... and keeps the predictive aspect extremely low.

Bravo, FXTradePro, carry on.

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Quoting jones247

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Congrats Dan!!!

This system (the Lucky 7) with a r:r of almost 1:1 is absolutely awesome. The only drawback is that the 1st two sequences give a relatively modest payout. Although, such a payout each day would yield a 50% return on a $10k equity balance in one month, assuming 20 such days of modest winnings. This strategy is superior to the "lucky 7" that created a 4:1 risk:reward setting. And of course with the limited sequences, one would not have to worry about a 65% drawdown on a $50k account, as with the original 24 sequence strategy. YES - You are correct. Just bear in mind that many (most in fact) Sequences close at higher progression levels than the 1st or 2nd, but what you say is generally correct.

Keep up the good work... It's only a matter of time before folks realize that this system surpasses virtually everything else on FF. And if they don't appreciate it, then it's just their loss... I still think you should consider writing the book...If I can find the time between Coaching and Managing Accounts, I may very well consider a book in the coming months. I really do appreciate your support Walt....Thanks!

BTW... have you considered a semi-martingale to the semi-martingale? In other words, if your initial sequences of trade run all 7 sequences & then gets stopped for a cumulative loss of $1785, would you consider doubling up on the lot sizes for the next evening? I have considered virtually every possibilty and have decided that I would prefer not to take that added risk. There are brief periods when the Strategy can lose 2 Sequences in a row, so I try and stick strictly to my Money Mangement Rules.

Walt

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