Part Time Wealth Building Trading System - Weekly Scalping

following..

UPDATE: I tried setting this up on my broker, and it looks like I can't do it with the order types they have. When i opened my second buy stop order, it immediately executed my sell stop, leaving me short, even though my stop had not been hit. This appears to be anti-hedging order processing, even though my first order was never executed!! I'm going to have to contact my broker to see if a different order type would allow this kind of trade, but until then I can't test this without two separate accounts.

Sorry! If I find a way around this I'll try again.


EDIT: See next post, I fixed the problem.

OK, I figured out the problem, it wasn't the broker, I had the wrong order type. Needed to place stop market orders and not stop limit orders.

So, I am using TKimble's original rules, for the most part...

Trade parameters:

1. Place Buy and Sell orders +/- 50 pips, but from the open on Sunday instead of the close on Friday. This lets us account for weeks that gap up or down.

2. 30 pip fixed stops. No trailing, no messing around with them.

3. This is the change from the original strategy, and part of what Mapes had changed - we don't keep re-entering if we are stopped out, with a max of 2 trades per week. (one in each direction) This lets us have a max drawdown of 60 pips per week, and then out.

4. No T/P or target. Exit at the end of the week if not stopped out. I had contemplated exiting at the end of Thursday, for the USD/CHF pair. But then, the pair jumped up 185 pips last friday, just to prove me wrong. So for now, we will keep it simple, and close at 4:00pm EST on Friday, one hour before the close for the week.

5. Also to keep things simple, I'll stick to one pair, which is USD/CHF. This lets us focus on one pair and makes reporting simpler. This pair also has good volume.

6. I am using FX-Pro MT4 demo account for charting and pricing, and will use the week's open from their charts. Yours may be off by a few pips depending on your broker.

-----------------------------------------------
Current orders for Sunday May 16th
-----------------------------------------------
open price for the week: 1.1345

Buy Stop = 1.1395 S/L 1.1365
Sell Stop = 1.1295 S/L 1.1325

I'll report at the end of the week how it went...

I wonder if Mr TKimble is still around ! !

I will be using this system on the DOW as well as Cable

1.1393 looks like the open of the week to me. what time are you using? i'm using 1:00 am EST, and if you are using 12:00 am EST, it is 1.1416

Update: Monday, buy stop was triggered, and then stopped out for 30 pip loss the same day. Today (tuesday) the sell was triggered, and due to volatility was also stopped out.

Total for the week: -60 pips.


On my other system, this week was indicated as a possible reversal week, and seems to be shaping up that way. Prior to this week we would have had two weeks of solid gains, if I had been trading the system. I did look at a small back test of the last 26 weeks on this system, and just eyeballing it, looks like about half the time we would be stopped out due to ranging behavior. The 30 pip stops are very tight, but the idea is to be out of the market when we are ranging, and to limit losses for these weeks.

Franklin,

I'm using the exact open of the week. This means the very first bar, not trying to start at 00:00 or 01:00 EST. If you look at your daily chart for the week, and use the open off that, you should be close to me.

I looked at doing this on Cable, and that is the original pair that TK used. He hasn't posted since 2007, so I'd say he is gone. If you do trade GBP, please post your results, that way we will have one more pair that's being tested.

The thing I am trying to prove / disprove on this system, is whether it will be profitable over a period of 10 weeks. This means that the winners need to be more than 60 pips / week on average, to make up for the ranging weeks. IF this isn't the case, then I wouldn't continue with the system. I think trying to introduce modifications to it would be curve-fitting, so I'm not going to try to optimize it for any one week.

Good luck!

do you know a site where i can find all the open/close prices from every week? your parameters look good i think, will follow this topic for a while

Yes, TK has returned...

no way groovy

but don't some brokers open earlier than others?

because i trade with oanda and use metatrader with an alpari demo and the days' open is very different. on a daily the open for eur/usd on the 17 of may was 1.2349 and oanda says 1.2267.

Is there anyone actively trading this system in a live account?

I may not be understanding this system too well...as I look at the entries, they seem to get stopped out quite quickly. It seems they dont last longer than a single day let alone a week.

Mr TK, good to have you back in the fray . . . .

With the current financial climate, does your daily & weekly systems need tweaking ? ?

Or have you come up with any new systems / strategies

The Stockman

So Nice that TK is back...after three years !! Anyway, I have been lax in posting this week, I was on a business trip and haven't had time. This week, we entered at the open of 1.1504 (USD/CHF) with a buy at 1.1554 and a sell at 1.1454. The buy was triggered on Monday. On Wednesday, we reached a low of 1.1514, which took out our 30 pip stop for the buy. Sell was never triggered. [Notice that I did not move the sell up to the market open, as per TK's original rules. This week we would be in the red at this point if this was done.] The market still seems indecisive on this pair.

I have noticed that a 30 pip stop, as I had described earlier, seems to be causing premature stop-outs, and may be too tight for this system. For both last week and this week, using a 70 pip stop would have resulted in positive gains for the week, but a lower R/R ratio. I'm not going to change anything for next week, so will have 3 weeks of data before deciding if this change makes sense. We want to avoid curve fitting the system but it looks like we need more room to breathe during the week.

Summary:
Buy triggered, then stopped out for -30 pips.
(if larger S/L was used, profit for this week would have been 141 pips as of this writing.)

I'm off tomorrow (Friday) for the long weekend, and will not be trading Monday due to the US holiday. Next week's trade will be taken from the Open on Tuesday June 1st.

Oanda is its own market. I'm not surprised that its quotes are different than an MT4 broker. The actual Forex market opens at 7pm EST on Sunday, but the broker I'm using now doesn't show Sunday candles. If you like, you can use that opening. If you read this thread, you'll see some people using the Sunday open, some using the Monday open, and even some using the Tuesday open! The key is to be consistent in what you do use. TKimble actually says to pull up a weekly chart (see page 1), and use the close off the previous week. Certainly an easy way to manage it and would also work fine.

most of the time moves happen on 2nd or 3rd day of the week...

the 82 pip difference isn't because oanda is its own market. its differences in the way alpari and oanda the their thing. oanda opens way earlier. they start their day and week at different times

but as therealthing said that is a good thing because everyone does it a little differently

and yes if you are trading a strategy like this consistency is everything

Hello am wondering if the moderator or anyone who has been using this strategy for a while answer some few question for me.

1. if i get stopped out in both entries ie the buystop and d sellstop do i re-enter the trade again.?

2. has anybody tried using this strategy on gpy and eurjpy and what is the the stop loss used becos i feel 30 is too small for the volatile jpy crosses i used 40 for ej n 50 for gj so far my gj buystop is still active but my ej has been stopped out(buystop) so am thingkin about increasing the sl let say 60pips for ej and 70pips 4 gj so what are your opinion on this?

1. Original rules - you reenter again and again. Rather painful. Later on, people modified the rules to say only enter in each direction once. You can do it either way.

2. I'm beginning to think that the market won't allow this system to work without huge S/L points. Today, we had a 262 pip swing in CHF forming a perfect doji for the day. It made higher highs AND lower lows than the previous six trading days. Perhaps I picked a bad pair, but it seems to me the charts' long tails make this system very difficult, UNLESS we go back to reentering the trade several times. I know this is what TK said to do, I'm going to go back and look at that. Otherwise, -60 pips for the week and out again.