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DanUK's Intraday Experiment

  • #121
  • Jul 16, 2010 8:05am Jul 16, 2010 8:05am
I did this thanks to Tony's "Central Banks & Big Players" thread!

Now I anticipate the next lot of trades to be small stop outs 1/2 pips here and there and plenty of breakeven trades but if past performance is anything to go by there will plenty of times when price does what it did today!
  • #122
  • Jul 16, 2010 8:21am Jul 16, 2010 8:21am
Hi Dan that sounds great, what did you use to enter the trade? And what TF are you looking at? Looking forward to getting more info on your trade.

Quoting DanUK
Right then chaps... today I did something new and extraordinary! I bought EU at 1.2899 with just a two pip stop loss.

Within seconds I moved my stop to breakeven and let the trade ride. I was hoping to get up to 1.3039 but 1.3000 wouldn't give. So I tightened my stop loss and that has just closed for +90 pips.

I was a little risky with this and played it with 2% of my intraday account and I have just closed it 90% up!!!! Insane right!?!?!

Here is a pic of my entry...
  • #123
  • Jul 16, 2010 8:23am Jul 16, 2010 8:23am
Quoting DanUK
Right then chaps... today I did something new and extraordinary! I bought EU at 1.2899 with just a two pip stop loss.

Within seconds I moved my stop to breakeven and let the trade ride. I was hoping to get up to 1.3039 but 1.3000 wouldn't give. So I tightened my stop loss and that has just closed for +90 pips.

I was a little risky with this and played it with 2% of my intraday account and I have just closed it 90% up!!!! Insane right!?!?!

Here is a pic of my entry...
Hi Dan, What did you base this trade on ? was is just the break of the 1.2900 number ?
  • #124
  • Jul 16, 2010 8:36am Jul 16, 2010 8:36am
Quoting bez3000
Hi Dan that sounds great, what did you use to enter the trade? And what TF are you looking at? Looking forward to getting more info on your trade.
It's extremely simple and very very different to anything I've done before.

Timeframe is 5 SECOND chart!!!

Entry is in the direction of the London open or the New York open. Trading EUR/USD only. Using Oanda for a small spread (0.9 pips) with a 2 pip stop loss.

If you get stopped out for -2 pips you finish until next open (London or New York - I think some people also trade the Frankfurt open).

If price moves in your favour you move to breakeven pretty quick and let the trade ride. TP is set at 140 pips however I chose to close early today because I was concerned that the 1.3000 level would be too heavily defended (although this may still break... time will tell!).

I'm not sure about long term stats or risk per trade yet. As I am trading it using my intraday account I am not too worried and will play about with the parameters a bit. Today I traded 2% risk (1% per pip) but I think that was too much... when my trade was up 50 pips I was thinking "damn I am up 50% I better close". Psychologically too hard. Next time I am going to go in with 1% risk (0.5% per pip) and see how I do.

I will keep everyone updated! If it works out it could be a really amazing way to get rich!!! Early days for me yet so I'm not getting my hopes up... yet!

Regards,

Dan
  • #125
  • Jul 16, 2010 8:37am Jul 16, 2010 8:37am
Quoting dan89
Hi Dan, What did you base this trade on ? was is just the break of the 1.2900 number ?
Just the direction of the London Open... the first bar was up so the trade is long.
  • #126
  • Jul 16, 2010 8:44am Jul 16, 2010 8:44am
Thanks Dan, so when you say direction of the London open do you enter exactly when London opens or can you enter abit later on but in the direction of the trend when London opened?
Do you need to setup an account with Oanga? And how do you get a 5 sec chart my MT$ only goes down to 1m?
Hope this makes sense.

Quoting DanUK
It's extremely simple and very very different to anything I've done before.

Time frame is 5 SECOND chart!!!

Entry is in the direction of the London open or the New York open. Trading EUR/USD only. Using Oanda for a small spread (0.9 pips) with a 2 pip stop loss.

If you get stopped out for -2 pips you finish until next open (London or New York - I think some people also trade the Frankfurt open).

If price moves in your favour you move to breakeven pretty quick and let the trade ride. TP is set at...
  • #127
  • Jul 16, 2010 9:04am Jul 16, 2010 9:04am
Quoting bez3000
Thanks Dan, so when you say direction of the London open do you enter exactly when London opens or can you enter abit later on but in the direction of the trend when London opened?
Do you need to setup an account with Oanga? And how do you get a 5 sec chart my MT$ only goes down to 1m?
Hope this makes sense.
Hi bez,

It's right on the open - the direction is set by the very first candle on the open. If it is up then we buy if it is down we sell.

You do need an Oanda account to get the 5 second chart and low spread (or possibly other brokers but it can't be done on MT4).

I can't recommend this yet as I don't know how reliable this strategy is but it looks very promising.

Assuming you were to trade the London and the New York open each day and you only had one win per month (all other days were losses) you would still make something crazy like 384% per year (based on simple maths... fixed % - compounded would be even more!).

It looks too good to be true which is why I am not recommending it yet but it may just be as good as it looks. If you can sit through the inevitable string of losers/breakevens you should do well at the end of the day (or year!).

Regards,

Dan
  • #128
  • Jul 16, 2010 9:12am Jul 16, 2010 9:12am
Wow it sounds crazy but maybe just crazy enough to work? So on a 5 sec chart is it easy to spot the first candle of the London open? You are right at 2% if you went a whole month with losses you would have done 40% of your account but one win of say 100 pips would give you 100% back, very nice.
On a side note i don't know anything about Oanda, are they American? If so would you need to pay taxes on winning?

Quoting DanUK
Hi bez,

It's right on the open - the direction is set by the very first candle on the open. If it is up then we buy if it is down we sell.

You do need an Oanda account to get the 5 second chart and low spread (or possibly other brokers but it can't be done on MT4).

I can't recommend this yet as I don't know how reliable this strategy is but it looks very promising.

Assuming you were to trade the London and the New York open each day and you only had one win per month (all other days were losses) you would still make something crazy like...
  • #129
  • Jul 16, 2010 9:26am Jul 16, 2010 9:26am
Dan also do you have any idea why it works on eurusd? What makes eu different than other pairs for this to work?
Thanks again you have my imagination racing
  • #130
  • Jul 16, 2010 9:26am Jul 16, 2010 9:26am
Quoting bez3000
Wow it sounds crazy but maybe just crazy enough to work? So on a 5 sec chart is it easy to spot the first candle of the London open? You are right at 2% if you went a whole month with losses you would have done 40% of your account but one win of say 100 pips would give you 100% back, very nice.
On a side note i don't know anything about Oanda, are they American? If so would you need to pay taxes on winning?
Indeed it might just be!

The setup candle is easy enough to see... at 5 seconds each they move bloody quick so I would advise anyone who wants to have a go to demo first so that you can get used to the platform and the speed you need to go at in order to place your trade etc.

Yes I think Oanda are American but it is my understanding that you pay taxes on your winnings in the same was as if you used a UK broker. I am no accountant though so be sure to speak to yours before declaring/not declaring!!!

Regards,

Dan
  • #131
  • Jul 16, 2010 9:28am Jul 16, 2010 9:28am
Quoting bez3000
Dan also do you have any idea why it works on eurusd? What makes eu different than other pairs for this to work?
Thanks again you have my imagination racing
It would probably work on other pairs too but it is the spread - Oanda it's 0.9 pips on E/U - as we only want to risk 2 pips that is a major aspect of it!
  • #132
  • Jul 16, 2010 9:32am Jul 16, 2010 9:32am
Quoting DanUK
It would probably work on other pairs too but it is the spread - Oanda it's 0.9 pips on E/U - as we only want to risk 2 pips that is a major aspect of it!
Registering for a demo account now, look forward to your updates next week Dan, will you still be trading the other methods?
  • #133
  • Jul 16, 2010 10:01am Jul 16, 2010 10:01am
Quoting DanUK
It would probably work on other pairs too but it is the spread - Oanda it's 0.9 pips on E/U - as we only want to risk 2 pips that is a major aspect of it!
So I guess we are risking 2 +0.9 with spread so 2.9 of your account?
  • #134
  • Jul 16, 2010 10:22am Jul 16, 2010 10:22am
that;s what commander risks. my suggestion is to risk such an amount you are comfortable with till u get the hang of this system

remember 2% on 2 pip sl leads to a big lot size. also pls remember commander trades a mini (i think) on intraday whereas us poor folks ( atleast i for sure). trades a micro.

Quoting bez3000
So I guess we are risking 2 +0.9 with spread so 2.9 of your account?
  • #135
  • Jul 16, 2010 10:41am Jul 16, 2010 10:41am
Quoting coolshades
that;s what commander risks. my suggestion is to risk such an amount you are comfortable with till u get the hang of this system

remember 2% on 2 pip sl leads to a big lot size. also pls remember commander trades a mini (i think) on intraday whereas us poor folks ( atleast i for sure). trades a micro.
Don't worry I would demo for a while first then trade 2% of a second micro account just for this. Are you going to give it a go coolshades? It looks very simple but we will see my demo account is activated so will have a play next week. This is one we can trade with a full time job as once the trade is started an move to be you can let your tp or sl do the rest.
  • #136
  • Jul 16, 2010 11:07am Jul 16, 2010 11:07am
i am a blind follower of commander.. so ofcourse.. coincidentally, i was searching for one or two of his posts today and did notice his presence on that system's thread.

Quoting bez3000
Don't worry I would demo for a while first then trade 2% of a second micro account just for this. Are you going to give it a go coolshades? It looks very simple but we will see my demo account is activated so will have a play next week. This is one we can trade with a full time job as once the trade is started an move to be you can let your tp or sl do the rest.
  • #137
  • Jul 16, 2010 11:22am Jul 16, 2010 11:22am
Quoting bez3000
So I guess we are risking 2 +0.9 with spread so 2.9 of your account?
2 pips includes the spread! Hence why it's only traded on EUR/USD with 0.9 spread.

Today's trade was 2% risk (or 1% per pip). However, I do feel that was too high and I will drop it to 1% risk (or 0.5% per pip) next time I trade this (Monday morning).

It's very tight but it does seem to work. There will of course be plenty of stop outs but the R:R should take care of it (1:70). Also you will find that many times you will be at breakeven rather than at a loss. The idea is to move your stop pretty much every half a pip... so when you start you risk 2 pips, if price moves up half a pip you move your stop to risk 1.5 pips and so on until breakeven - you then let it run.

It will often be the case that you don't get the chance to move your stop like this - today for instance, price just ran straight up and within seconds I was up a few pips and moved my stop to breakeven.

The best way to do this is to risk very little. Perhaps less than 1% might be better - the reason being that you will get a string of breakeven and/or loser trades and that might be hard to handle mentally.

The only way to know for sure is to test is though so that's what I'm going to do!

Regards,

Dan
  • #138
  • Jul 16, 2010 11:26am Jul 16, 2010 11:26am
Quoting coolshades
that;s what commander risks. my suggestion is to risk such an amount you are comfortable with till u get the hang of this system

remember 2% on 2 pip sl leads to a big lot size. also pls remember commander trades a mini (i think) on intraday whereas us poor folks ( atleast i for sure). trades a micro.
That's right - and bear in mind there will be many more losers and breakeven trades than winners with this strategy so you will have to be prepared to ride it out until you get a winner. I'm not sure how often that will be, although it's not like it's a once in a blue moon occurrence - it does seem to happen enough to make this a very profitable strategy.

In fact, I would go so far as to say that based on my observations this strategy could replace ALL my other trading (and day job)!! But we will see in time... early days yet!

Regards,

Dan
  • #139
  • Jul 16, 2010 11:28am Jul 16, 2010 11:28am
Quoting bez3000
Don't worry I would demo for a while first then trade 2% of a second micro account just for this. Are you going to give it a go coolshades? It looks very simple but we will see my demo account is activated so will have a play next week. This is one we can trade with a full time job as once the trade is started an move to be you can let your tp or sl do the rest.
And that is the real bonus... it's basically a set and forget. You get in, get to breakeven (within seconds) or stopped out (within seconds) and then let it go.

The only time you might want to intervene is like today... when I had a very strong inkling that 1.3000 would prevent us reaching 140 pips profit and all I needed to do was tighten my stop loss to take some profit in the case price reversed (as it did).

Regards,

Dan
  • #140
  • Jul 16, 2010 11:29am Jul 16, 2010 11:29am
Quoting coolshades
i am a blind follower of commander.. so ofcourse.. coincidentally, i was searching for one or two of his posts today and did notice his presence on that system's thread.


I like it!
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