EUR/GBP Trendmagic System

There is a difference in my results then yours. Let me get this right. When its live the dots on the indicator fluctuate from red to blue etc.... So, I followed it all week. I waited until the third dot changed color and on that candle I closed the position. So.

1. Waited for third dot to appear.
2. Saw the third dot appear.
3. Waited for the candle to close.
4. If and When the candle closed on the third dot I reversed my position.

I dont know if that was correct way to do it, but the way I did it I resulted in +425 for the week. Not bad however it trended really good. What happens in a choppy trend? The bank takes my money

Is this the correct way to calculate? It seems really hard to understand because my results are so different.

Thanks

Please post the version of vorticity you used in the example above. Thanks

Hi 4xstar!
A hard stop of 20 ? Isn´t that too tight ? Edge exits when HA-candles retrace to wma when i get it right, which most likely will be more than 20 pips. But if there is a way to limit the risk to -20 while still getting +10 70% of times that would be fine for me. Maybe it´s just all about market conditions and timing.

Thanks for the reply

I would love to trade the the 1H TF too, but theres simply no time for doing that. When the most 1H signals occur, its around 8.00-12 AM in Germany and i ve got to work at that time in my main job. So i have to stick with the scalpers, trying to scalp my +30P/day after work.
Well, Paulus showed us that its possible to scalp with these fine indicators and i am looking forward to his setup. I like scalping, less risk and many opportunities.

Paulus , do you move along with the others to the 1H group or do you stay with us trying to get that scalping mastered ?

tex.

I am going to post my 2pips here as well. While I have been mildly sucessful on the 5m & 1m charts, being a stay at home dad of two little ones, I simply don't have time to monitor the charts looking for signals. While most people are calling this a scalpin g thread, if you read the original setup for either the 1m or 5m time frames, they aren't scalping rules, they are swing trade rules. Scalping rules have hard and fast take profits of 5-10pips, which is what Edge sugessted early on. If you want to get realy technical you could sit and scalp 10- 20pips on 10 pairs on the 1h time frame on average 2 times a day for each pair with little to no worries. I usualy only trade the middle of the European session until the middle of the asian session and see at least 2 signals from each pair (I watch 8) and often times 3. While I do also use vorticity and S&R ont he 1h frames, you can also use Anne's original single timeframe indicator for the original rules with the same sucess. People have said they only want to scalp so they stay on the lower time frames, you are misinformed to think that is scalping, scalping is pulling small amounts of pips over and over and over, that can be done on any time frame, even the daily's, and using any one of the indicators even the originals will accomplish this.

I don't understand what this thread is about.

Basically, all you need to get identical results to the Trend Magic system is to draw trend lines on a chart and use fibs.

You don't need a colored dot to tell you how to trade.

This system is called "the trend is your friend".

Get in when the trend is in motion, and get out when it's near support or resistance and the trend is slowing.

You will get the exact same profit trading this way as you would using Trend Magic, but you might actually learn how to trade which is a good thing.

So what is everyone here getting so excited about? Never trade against the trend is the simplest first rule of basic trading.

People are always looking for something that will tell them WHICH button to push and WHEN to push it to become rich.

These are the people who will join the 95% of traders who fail.

Why?

Because, you need to use your mind to trade properly, not an indicator.
There are many other factors to consider outside of trends.

It's no different than trying to beat the market with the Martingale system.

Math based systems historically have failed EVERY time in the market.
External factors (such as fundamentals) put the odds against you with ANY system in the long term.

Successful traders know this. The brokers know this. Why don't the people who buy into these systems know this?

If it were so easy, everyone would do it, and then the brokers would close shop.

Basically, every system that works under certain market conditions will fail miserably once the market conditions change.

(Ask Paulus about the "one trade a day" London Breakout system... That is a classic example of what I'm talking about.)

If you want to make money in Forex, learn how to read charts, study price action and volume, and gain experience making real trades based on ONLY this. That is how EVERY trader who is in the 5% success category got there. Hard work and experience.

Outside of that, the only people making real money with systems are the people selling them.

Incredible.

thats right, scalping is possible in every TF but at the lower one's there are much more signals to trade..

Thats great, but you miss the point. The thread has turned into a how to scalp thread, and people are frustraded because they can scalp 100pips on a few pairs 1 day only to give it back because and they deem them system a failure, when it was never inteded to scalp to begin with. I know I would rather pull in 20pips profit a day every day than having big winning days and then big losing days. On average on 4 major pairs on a higher time frame with the priginal rules, you should always endup in profit if you scalp 10-20pips per profit and keep a 1:1 RR. Its safer, and more profitable. But as I always say in life, to each their own.

When I backtest with the trade simulator I'm getting the following result for GBP/USD 22.06.2009-26.09.2009: -75+136+185+28-93+68=249.

But it's the best method I have seen in this thread.

E/u

-21-12+204-6-16+120-22-58+18=207

a blade on a different hand yields different result.....

Thanks. The one you posted here differs from the one I have bearing same name and # and both may be difference from that depicted by TG on the example on thread 3334. The one on thread 3334 display dots.
May be TG will upload this particular version. This might also explain the difference in test results been reported.

Back testing for a whole week and now the 1H become the flavor of the month. Interesting how so many want so much for doing absolutely nothing! Not more than a few individuals here will actually trade the 1H with anything more than $1 per pip. Further, I have seen NO statistical data to merit anyone here even attempting such a move. It is one thing to see a colorful indi in hindsight tell you that the 1H is the proverbial 'yellow brick road', it will be another once you actually take the path and begin walking.

There are but a handful of actual traders here. Lots of potential for several others who have exhibited some discipline given all the tools provided them, however, the rest are headed for the 95% failure heap.

You have been told time and time again to find a way to use the best tools available to you in order to enhance your chances at Forex trading success. Paul gave you a very good 5M setup to begin with, and it was even enhanced to a point where getting a few pips daily to make a living on would be a minor task with but a little practice.

Lots of people mentioning that they simply cannot grasp a 5M plan. Whether Paul's or my own, very few have managed to at least try to do the necessary work to become proficient at either. A whole two weeks and most folks throwing in the towel and going to worship at the next holy grail temple, the 1H.

No problem. I am pretty sure Paul will continue to provide his findings and put forth his 1M plan relatively soon. I think I too will stick around a bit longer to see what happens. I will state emphatically though that:

"Unless you can put at least 30 days effort into a plan and actually trade such each day without fail, you will lose".

Still waiting for folks to puts charts with entries and exits up. I could care less if it is demo or live. However, enough whining about how the 5M does not work for you. Qualify your statement with actual proof you at least tried from now on. Perhaps it is something as simple as entry recognition, something which a few dozen folks could help you with here.

I suspect something far more sinister though. What I believe is that there exists several people that simply suffer from 'pip envy'.

Simply cannot grasp a basic concept of less being more. Would rather risk huge market exposure time and actually walk away from a computer with a trade on and take the damn dog for a walk. Well, keep your day job because you will need it. If you cannot spend 2-3 hours per day and scan 3-4 pairs at that time seeking good trading setups, again, you are done.

Harsh? Maybe... However, I will at least qualify my statements.

Have spent a portion of the week looking at the 1H trading possibilities. While concentrating on the GU, it appears that a good week could be had. You can reference Anne's earlier posting and chart. Well, I did the necessary work and researched the last 6 months of trading such. Here are the results.

Trading the Forex from Sunday open until Friday close, with an EA that signals very close to that TGV2 thing, and trading 'blind' with no TP or SL in place (signal to signal) and for the past 6 months;

Results are based on trading 1 standard lot.

Trades (1H CANDLESTICK) 259

Net Profit ($10,852.00)

Percent Profitable 35.91%

Profit Expectancy 1.58

Avg. Winning Trade $875.00

Avg. Losing Trade ($556.00)

Max. Daily Drawdown ($2,437.00)

Min. Account Size Required $18,500.00


Yep, looking at the big picture, you are headed for trouble unless you are going to set some really firm TP/SL targets.

However, you do have a silver lining if you want to pursue this. Look closely at the charts and you had better stop dreaming and go get the proper tools if you are going to trade. Without such, both Anne and YOU are going to have nothing more that two (2) favorite video games to play. It is not about the damn indi, it is the PA alone !!!!!!!!!!!!

Results are based on trading 1 standard lot.

Trades (10 tic RENKO) 259

Net Profit $136,067.00

Percent Profitable 54.89%

Profit Expectancy 3.97

Avg. Winning Trade $1,175.00

Avg. Losing Trade ($296.00)

Max. Daily Drawdown ($1,200.00)

Min. Account Size Required $2,206.00


Put some real thought into what you are trying to do here. Very few will get a second chance as once your capital is gone, it is GONE! Better to trade proficiently and with solid goals and boundaries that on a wing and a prayer. I too will also follow any 1H thread developed to see how things are going. Will be stealth there though as it seems you will have your hands full there also.

Regards.

I the willing lead by the unknowing am doing the impossible for the ungrateful. I have been doing so much with so little for so long that I am now qualified to do anything with nothing ..

N.

I'm suprised what conclusions can be drawn from one single post.

You don't know me and you definitely don't know how I evaluate and compare trading systems. There is nothing new for me in your post.

Actually there are lot of truth in Edge post. I wonder how people will cope with possible losses which can and will be much larger on higher time frame if they can not cope with losses on the small timeframe. There are pros and cons on both on higher timeframes and on small timeframes trader just have to accept them as they are. On 1H TF the signal can happen in the middle of night when you are sleeping I do not think so that trades will check charts after every hour. But on the 1M TF there are lot of trades during a day some of them are winners some of them are losers that is the way it is. IMHO Edges test result speak from it selfe.
Edge can you post the maximum losers that happened in the row on both tests or even beeter if it is possible can you post the trades in excel sheet I would like to test those result in my MM.

Kristjan

Mcfly on what timeframe you backtest this?

The post was not directed at you. Could care less what or how you choose to trade.

It was simply an extension of backtesting thoroughly and a warning to get a traders MM and thought process in sync or they will simply fail.

Nothing personal.

Regards.

Not if both hands are holding the wrong end. Just end up with bloody mess in either hand.