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Part Time Wealth Building System - "Open-Close Trending"

  • #1
  • First Post: Feb 27, 2007 10:13am Feb 27, 2007 10:13am
System will be posted next week...

Happy Trading,

TK
  • #2
  • Feb 27, 2007 10:30am Feb 27, 2007 10:30am
Cool, i'll be there one week from now
Happy Pip-hunt... KISSes
  • #3
  • Feb 27, 2007 10:39am Feb 27, 2007 10:39am
Quoting tkimble
System will be posted next week...

Happy Trading,

TK
another of your beautiful system!! thanks TK,keep them coming...
  • #4
  • Edited Mar 20, 2007 10:44pm Mar 13, 2007 9:31pm | Edited Mar 20, 2007 10:44pm
The following system is has by far been the most profitable system for me. It has captured 1700 GBP/JPY PIPS in the last two weeks through today.

Rules are likewise very simple but unlike the daily and weekly scalping systems, this system follows the trends:

1. Create 60 minute GBP/JPY bar chart
2. Create a 50 Period HIGH Linear Weighted Moving Average
3. Create a 50 Period LOW Linear Weighted Moving Average
4. Place LONG market entry order at the HIGH Moving Average
5. Place SHORT marekt entry order at the LOW Moving Average
6. Market entries occur at the exact moment that the price hits the market entry orders.
6. Use 50 PIP STOP
7. Adjust the LONG and SHORT market entry orders as the Moving Averages change.
8. Market can get choppy during transition from LONG to SHORT and vice versa.

That is it. Very simple. This system can be adapted to other markets but with smaller or larger Moving Averages.

Below is the current chart that I am trading from and I am currently up 320 PIPS today. Combine this system with the money management system and you will have a sure winner...

Happy Trading,

TK

The following modification, by tkimble, appeared in post 105 of this thread. - diallist

I have modified the system to reduce the whipsawing. The following change has been made:

1. Reduce the moving average from 50 periods to 25 periods
2. Create entry Buy/Sell entry orders 50 PIPS from the moving average. For example, I am currently Long the GBP/JPY at 227.21. The current moving average is 227.78. I have a SHORT entry order at 227.28 and will adjust the entry order hourly on the hourly chart.

You can also make the entry points less than or greater than 50 PIPs. Narrower entry points will create more whipsawing and wider entry points will create less whipsawing.

I will also be posting my last proprietary system which I call the "Twisted Ribbon" system because the graphical indicators resemble a twisted ribbon when created on a chart. Based upon the "Whipsawing" feedback, I suspect most will be more comfortable with the "Twisted Ribbon" trending system...

Happy Trading,

TK
Attached File(s)
File Type: pdf GBPJPY,H1.pdf   35 KB | 8,036 downloads
  • #5
  • Mar 13, 2007 9:40pm Mar 13, 2007 9:40pm
Quoting tkimble
The following system is has by far been the most profitable system for me. It has captured 1700 GBP/JPY PIPS in the last two weeks through today.

Rules are likewise very simple but unlike the daily and weekly scalping systems, this system follows the trends:

1. Create 60 minute GBP/JPY bar chart
2. Create a 50 Period HIGH Linear Weighted Moving Average
3. Create a 50 Period LOW Linear Weighted Moving Average
4. Place LONG market entry order at the HIGH Moving Average
5. Place SHORT marekt entry order at the LOW Moving Average
6. Use 50 PIP STOP
7. Adjust the LONG and SHORT market entry orders as the Moving Averages change.
8. Market can get choppy during transition from LONG to SHORT and vice versa.

That is it. Very simple. This system can be adapted to other markets but with smaller or larger Moving Averages.

Below is the current chart that I am trading from and I am currently up 320 PIPS today. Combine this system with the money management system and you will have a sure winner...

Happy Trading,

TK
i have been waiting for your system for sooo long....finally it comes out,huray! thanks for sharing your system TK!
  • #6
  • Mar 13, 2007 9:58pm Mar 13, 2007 9:58pm
I like it TK. It reminds me of the very first part time wealth builder system you posted based on the 30 min. chart. I look forward to testing this new system.


Many thanks.........


Tim
  • #7
  • Mar 13, 2007 10:00pm Mar 13, 2007 10:00pm
Hi tkimble,

Thanks for sharing this trending system.

Do we close a winnning trade when there is an opposite trade signal occured?

regards,

hksweeper

Quoting tkimble
The following system is has by far been the most profitable system for me. It has captured 1700 GBP/JPY PIPS in the last two weeks through today.

Rules are likewise very simple but unlike the daily and weekly scalping systems, this system follows the trends:

1. Create 60 minute GBP/JPY bar chart
2. Create a 50 Period HIGH Linear Weighted Moving Average
3. Create a 50 Period LOW Linear Weighted Moving Average
4. Place LONG market entry order at the HIGH Moving Average
5. Place SHORT marekt entry order at the LOW Moving Average
6. Market entries occur at the exact moment that the price hits the market entry orders.
6. Use 50 PIP STOP
7. Adjust the LONG and SHORT market entry orders as the Moving Averages change.
8. Market can get choppy during transition from LONG to SHORT and vice versa.

That is it. Very simple. This system can be adapted to other markets but with smaller or larger Moving Averages.

Below is the current chart that I am trading from and I am currently up 320 PIPS today. Combine this system with the money management system and you will have a sure winner...

Happy Trading,

TK
  • #8
  • Mar 13, 2007 10:05pm Mar 13, 2007 10:05pm
Quoting hksweeper
Hi tkimble,

Thanks for sharing this trending system.

Do we close a winnning trade when there is an opposite trade signal occured?

regards,

hksweeper
Yes. This is a true Stop and Reverse system...
  • #9
  • Mar 13, 2007 11:22pm Mar 13, 2007 11:22pm
Isn't 50pip stop too tight for GBPJPY?
  • #10
  • Mar 13, 2007 11:44pm Mar 13, 2007 11:44pm
TK,

this is my 1st posting in FF. been registered for sometimes but just reading all this this while..

i've been following your weekly and daily method..and im really like ur method.. so far..give me "green"
btw..cant wait to study this latest method..my hand is shaking and i hope im doing well with this one as well.
thanks for sharing ...really appreciate..

curahee
  • #11
  • Mar 14, 2007 12:06am Mar 14, 2007 12:06am
Tkimble,

What do you mean by Market entry order? Enter a trade when price gets above or below the line or place a buy and sell stop in advance?
  • #12
  • Mar 14, 2007 1:56am Mar 14, 2007 1:56am
Quoting Stuartesque
Tkimble,

What do you mean by Market entry order? Enter a trade when price gets above or below the line or place a buy and sell stop in advance?
Place the Long entry at the HIGH 50 Period Moving Average and the Short entry at the LOW 50 Period Moving Average. Adjust every hour...

TK
  • #13
  • Mar 14, 2007 3:28am Mar 14, 2007 3:28am
TK

1) You say that its 50 pip stop right? But really it's the distance between the high and low WMA's correct? So sometimes this might actually be more or a bit less than 50.

2) I note you have said you traded this for two weeks but looking back at the history, this period had beautiful trends. GBP/JPY is prone to some horrendous whipsaw periods. Are you utilizing any additional rules to manage that problem or assuming that over time, MM and RRR will even things out?
I ask because not only in channel consolidation markets but also strong trends, I am seeing multiple touches of the opposing LWMA which would have then stopped and reversed you only to then fly back the other way once more.

3) Along the lines of RRR, I assume you are taking a dynamic approach as regards to TP and not setting it outright but running with the trend? Are you simply playing this as a crossover/stop reverse, to stop reverse system? E.g - If buy was first, run with the buy for as long as it holds until it eventually hits the LOW LWMA, then opening a sell?

Don't take this as system 'bashing', just some genuine questions.

FxN
  • #14
  • Mar 14, 2007 4:36am Mar 14, 2007 4:36am
So it's basically a limit order adjusting the entry price every start of a new hour candle. Is this right? Sorry abit slow here...

Quoting tkimble
Place the Long entry at the HIGH 50 Period Moving Average and the Short entry at the LOW 50 Period Moving Average. Adjust every hour...

TK
  • #15
  • Mar 14, 2007 4:37am Mar 14, 2007 4:37am
It is basically a stop and reverse trending system. Regarding exit, you could possibly trail after your trades goes over 100 pips or so. Just a thought.
  • #16
  • Mar 14, 2007 4:46am Mar 14, 2007 4:46am
Yes, true north makes a good point about the stoploss application. If you enter a LONG trade when the price crosses the high MA,then price drops through the channel,and hits the low MA, you would stop out your long trade and then go short...and this could be 30 pips below the point where you went long.

I guess what I am trying to clarify, is that is the SAR/SL 50 pips, OR is it on the opposite LWmoving average?...

I have an idea, SL could be maximum 50 pips, but if the channel is less, then it would be when it crosses the MA? ANY THOUGHTS ANYONE?
  • #17
  • Mar 14, 2007 5:06am Mar 14, 2007 5:06am
I use a similar method to this and it is successful on most (all to differing degrees) JPY pairs and others such as eg GBP/CHF: so can attest to the ability of this method to be successful. It ultimately depends on the user.
I use:
1. 1hr chart
2. 25SMA high, 25SMA low (or 32WMA if you want)
3. buy at SMA high, stop at SMA low
4. sell at SMA low stop at SMA high
5. adjust each hr (or two depending if I'm around)
6. sometimes I move stop to BE when 100 pips up (still leave the opposite trade as was)
7. limit to 2 stop outs a day
8. and no I don't do anything for whipsaws other than max 2 stopouts per day and I don't do a host of other things and I have tried this and that but the above is what I trade pure and simple.

This is just to back TK's approach and looking at a chart or two the results would be similar I think.

Hope it helps
Mungo
  • #18
  • Mar 14, 2007 7:24am Mar 14, 2007 7:24am
Quoting tkimble
The following system is has by far been the most profitable system for me. It has captured 1700 GBP/JPY PIPS in the last two weeks through today.

Rules are likewise very simple but unlike the daily and weekly scalping systems, this system follows the trends:

1. Create 60 minute GBP/JPY bar chart
2. Create a 50 Period HIGH Linear Weighted Moving Average
3. Create a 50 Period LOW Linear Weighted Moving Average
4. Place LONG market entry order at the HIGH Moving Average
5. Place SHORT marekt entry order at the LOW Moving Average
6. Market entries occur at the exact moment that the price hits the market entry orders.
6. Use 50 PIP STOP
7. Adjust the LONG and SHORT market entry orders as the Moving Averages change.
8. Market can get choppy during transition from LONG to SHORT and vice versa.

That is it. Very simple. This system can be adapted to other markets but with smaller or larger Moving Averages.

Below is the current chart that I am trading from and I am currently up 320 PIPS today. Combine this system with the money management system and you will have a sure winner...

Happy Trading,

TK


Hi,

I am slightly confused by this method. Since the market price is currently below the WMAs, do we set a buy stop at the high WMA and a sell limit at the low WMA? If this is the case, won't we be entered in the same direction on two trades (assuming they both hit)? Or do we take off the pending order that has not yet been hit?

I really hate to sound dumb about this, but I really want to try this because the scalping method(s) has been EXTREMELY kind to me.

Thanks for the help.

NGallagher
  • #19
  • Mar 14, 2007 7:41am Mar 14, 2007 7:41am
TK,

Curios to know if you ever consider a “barclose above/below” the averages for entries instead of MIT orders (market if touched)? Just by glancing at some charts it seems this might eliminate some whipsaws..
  • #20
  • Mar 14, 2007 7:44am Mar 14, 2007 7:44am
Quoting tkimble
The following system is has by far been the most profitable system for me. It has captured 1700 GBP/JPY PIPS in the last two weeks through today.

Rules are likewise very simple but unlike the daily and weekly scalping systems, this system follows the trends:

1. Create 60 minute GBP/JPY bar chart
2. Create a 50 Period HIGH Linear Weighted Moving Average
3. Create a 50 Period LOW Linear Weighted Moving Average
4. Place LONG market entry order at the HIGH Moving Average
5. Place SHORT marekt entry order at the LOW Moving Average
6. Market entries occur at the exact moment that the price hits the market entry orders.
6. Use 50 PIP STOP
7. Adjust the LONG and SHORT market entry orders as the Moving Averages change.
8. Market can get choppy during transition from LONG to SHORT and vice versa.

That is it. Very simple. This system can be adapted to other markets but with smaller or larger Moving Averages.

Below is the current chart that I am trading from and I am currently up 320 PIPS today. Combine this system with the money management system and you will have a sure winner...

Happy Trading,

TK
Thanks again for your work and providing this info to us free of charge! A couple of questions:

1) I don't have access to my trading platform right now but is the 50 period HIGH/LOW weighted MA standard? I know I've used MA's before, but I don't recall if I had the option to select high/low.

2) When do you take profits?

Thank you, TK.
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