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

  • #21
  • Mar 14, 2007 7:52am Mar 14, 2007 7:52am
Thank you TK for this method. I can't wait to get started, and as per usual, I see people have already jumped in and started a healthy Q&A and back and forth dialog.

I would imagine that with all these questions, suggestions, input and healthy critique that you have received over time with your systems, it has no doubt allowed you to grow and develop your trading just as much as it has benefitted us.

A sincere thanks again for sharing and your generousity.
  • #22
  • Edited 8:34am Mar 14, 2007 8:14am | Edited 8:34am
I like this method and I did study a similar one some months ago.
One question for Tkimble : why do you name it Open-Close Trending system if it uses High/Low ?

May be I could create a nice EA also for this method (...ok I know when I will do EA it will be in another thread...ehehhe)

cya,
Skyline
  • #23
  • Mar 14, 2007 8:14am Mar 14, 2007 8:14am
Quoting leeroy brown
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?
Yes. This is correct. The average PIPS between the two moving averages is approxiamately 50 PIPS...

TK
  • #24
  • Mar 14, 2007 8:17am Mar 14, 2007 8:17am
Quoting leeroy brown
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?
The hard stop is 50 PIPS and the system Stop and Reverse normally averages 50 +/- Pips...

TK
  • #25
  • Mar 14, 2007 9:42am Mar 14, 2007 9:42am
Is anybody in the current Guppy trade based on TK's new system? I am in using a demo just to get a feel for it.

Tim
  • #26
  • Mar 14, 2007 9:48am Mar 14, 2007 9:48am
After all that, I still didn't have some of the last post addressed.

FxNorth
  • #27
  • Mar 14, 2007 9:58am Mar 14, 2007 9:58am
Hi,

i am in the trade on GBP/JPY. After my hard night i have time to try on Demo.

The only thing i not sure what happen is that the LOW from my 1h bar was 224.13 but the STOP i set to the lower ema is 224.42.

The rest looks well, if i go back in the chart.

Mobsie
  • #28
  • Mar 14, 2007 10:08am Mar 14, 2007 10:08am
NGal,

Obviously, the first trade will depend largely when you start.

So, if you start and the price is below the LOW LWMA, then you will wait to BUY when the price reverses at the touch of the HIGH LWMA. Conversly, if the price is ABOVE the HIGH LWMA, then, you will wait for to SHORT when the price reverses at the touch of the LOW LWMA.

Now, if the price is in the tunnel, you will need to determine what the last touch was and trade the opposite way...thus if the last touch LOW LWMA, then you'd expect to BUY at the HIGH LWMA and if the last touch was the HIGH LWMA then you'd expect to short at the LOW LWMA.

Quoting Ngal100
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
  • #29
  • Mar 14, 2007 10:13am Mar 14, 2007 10:13am
good work dude , finally u came out with the great method for GJ . APPRECIATE IT !
  • #30
  • Mar 14, 2007 10:24am Mar 14, 2007 10:24am
Hi TK,

sorry i forget to say thank you.

Question to all, i search the last 10 min. to find an indicator for an price / LWMA crossover. I find some but i think these all are not what i need.

Have someone an indicator for this job this will be great.

Mobsie
  • #31
  • Mar 14, 2007 10:43am Mar 14, 2007 10:43am
Quoting mungo
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
I have been trading the daily system, but also my channel system which is VERY similar Mungo. Use the 34 wma and it works well.

I know there is real concern of the Whipsaw issue on ANY system, and as TK sez, so much of it happens when their is a change happening in direction.

Major filter i have used is to also look at the "slope" of WMA. (This is discretional....either it is sloping at a consistant angle or not) If it is sloping hard and at a consistent angle in one direction, i NEVER take a trade opposite to that slope. Take a look, they ususally hit the WMA and continue back in its normal direction. When the slope begins to flatten....be prepared for a potential change. When i was using this method at first i was too quick to get out on these little spikes but noticed they had no real momentum to continue.

I do have an initial TP for 1/3 to 1/2 my position and bring stops to BE then. I find that if you manage these channels well, you won't give back too much....and you make dough.

Thanks TK for all your help and giving to us...

Good trading all.

Jim No
  • #32
  • Mar 14, 2007 11:07am Mar 14, 2007 11:07am
Thanks for the Great System, TKimble!
It seems to work nicely so far.

Deanith
  • #33
  • Mar 14, 2007 11:19am Mar 14, 2007 11:19am
Quoting james275
I have been trading the daily system, but also my channel system which is VERY similar Mungo. Use the 34 wma and it works well.

I know there is real concern of the Whipsaw issue on ANY system, and as TK sez, so much of it happens when their is a change happening in direction.

Major filter i have used is to also look at the "slope" of WMA. (This is discretional....either it is sloping at a consistant angle or not) If it is sloping hard and at a consistent angle in one direction, i NEVER take a trade opposite to that slope. Take a look, they ususally hit the WMA and continue back in its normal direction. When the slope begins to flatten....be prepared for a potential change. When i was using this method at first i was too quick to get out on these little spikes but noticed they had no real momentum to continue.

I do have an initial TP for 1/3 to 1/2 my position and bring stops to BE then. I find that if you manage these channels well, you won't give back too much....and you make dough.

Thanks TK for all your help and giving to us...

Good trading all.

Jim No
Agree with you on the WMA slope. Taking the bare bones of TK's idea, i've set up an automated live test, using a WMA(50) slope change (-ve to +ve for longs and +ve to -ve for shorts) on the 30min, as a SAR system. Initial 50 pip fixed stoploss.

I'll forward test for a while and report back to the thread, if it looks promising - currently long and +50 odd.

Thanks for your ideas, TK.
  • #34
  • Mar 14, 2007 1:20pm Mar 14, 2007 1:20pm
Quoting james275
I have been trading the daily system, but also my channel system which is VERY similar Mungo. Use the 34 wma and it works well.

I know there is real concern of the Whipsaw issue on ANY system, and as TK sez, so much of it happens when their is a change happening in direction.

Major filter i have used is to also look at the "slope" of WMA. (This is discretional....either it is sloping at a consistant angle or not) If it is sloping hard and at a consistent angle in one direction, i NEVER take a trade opposite to that slope. Take a look, they ususally hit the WMA and continue back in its normal direction. When the slope begins to flatten....be prepared for a potential change. When i was using this method at first i was too quick to get out on these little spikes but noticed they had no real momentum to continue.

I do have an initial TP for 1/3 to 1/2 my position and bring stops to BE then. I find that if you manage these channels well, you won't give back too much....and you make dough.

Thanks TK for all your help and giving to us...

Good trading all.

Jim No
Are you using only a 34 wma? So buy on one side and sell on the other, as opposed to having two smas?

Thanks.
  • #35
  • Mar 14, 2007 2:42pm Mar 14, 2007 2:42pm
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
Looks like a great system, I tried it out a few hours ago, got in on a buy and already up 140 pips.

So with this system, what TP are you looking at? How long do you let it run?
  • #36
  • Mar 14, 2007 3:09pm Mar 14, 2007 3:09pm
Hi tk, as expected this is looking good.. do you have any systems in mind with longer time frames.. for those of us who have a day job and dont work with eas, a longer time frame helps

thks
  • #37
  • Mar 14, 2007 4:01pm Mar 14, 2007 4:01pm
Quoting coolshades
Hi tk, as expected this is looking good.. do you have any systems in mind with longer time frames.. for those of us who have a day job and dont work with eas, a longer time frame helps

thks
I second that! Personally, i lose focus, get side tracked and miss far too many trades if i try to follow anything less than 4H. For me 4H and Daily are perfect TF's.
  • #38
  • Mar 14, 2007 4:23pm Mar 14, 2007 4:23pm
Wont this same system work on 4 hr TF?
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #39
  • Mar 14, 2007 4:29pm Mar 14, 2007 4:29pm
maybe, but i think you wld need the lwmas positioned differently and maybe diff sl... havent given it serious thought

Quoting TradeStar
Wont this same system work on 4 hr TF?
  • #40
  • Edited 5:49pm Mar 14, 2007 4:41pm | Edited 5:49pm
Hi TK.

Is there any chance you could post a chart showing entries/exits over a given period, as seeing a chart makes it much easier to understand.

As I understand it ,once you are in the market lets say long.Your short entry order is trailing you at the lower MA , is this correct.

Also if you are long and the market retraces (after you have closed for profit taking) into the channel but bounces back long do you re-enter long or are you waiting for the short trade to be triggered.

How do you get into the market,at present the price is above the MA channel ?
Cheers.
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