Trend Trading All Pairs | Page 505 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Trading correlation pairs by using the other pairs 843 replies

28 Pairs Trading Panel (Multi-pairs) 0 replies

Export All pairs or selected pairs to .csv with script 3 replies

Daily Bar Analysis - All Pairs/All Welcome 15 replies

Trend Trading All Currency Pairs 3 replies

Attachments: Trend Trading All Pairs
Exit Attachments

Trend Trading All Pairs

  • #10,081
  • Jan 8, 2011 11:42am Jan 8, 2011 11:42am
Hi Custos,

What do you think about this?

Many interesting things he speaks here in that thread.

http://www.forexfactory.com/showpost...1&postcount=39


Quoting Custos
Interesting, I read their last post on the site. What strikes me totally is that they only tested it on one instrument.
I mean, one instrument is far from enough. Okay they had several years of data, but if one wants to create a really robust strategy, you need several instruments. I typically use up to 50 instruments from all kinds of markets and test it at least on 10 years of data. If 90% of them perform, I use the system, otherwise it gets dropped.
I think that would have saved them, if they just included more instruments. Cause then you can...
  • #10,082
  • Jan 8, 2011 12:22pm Jan 8, 2011 12:22pm
Quoting Pipalicious
Hi Custos,

What do you think about this?

Many interesting things he speaks here in that thread.

http://www.forexfactory.com/showpost...1&postcount=39
man, thanks for that thread. He is like 3 years ahead of me in terms of testing. He gives some valuable hints of what should be tested out and so on.
  • #10,083
  • Jan 8, 2011 1:19pm Jan 8, 2011 1:19pm
Quoting Custos
man, thanks for that thread. He is like 3 years ahead of me in terms of testing. He gives some valuable hints of what should be tested out and so on.
No worries buddy he knows his stuff inside out. That thread is in the bin for some reason but it is full of amazing wisdom.

If you figure some of his stuff out let me know!

Im still trying to grasp some of it lol.
  • #10,084
  • Jan 8, 2011 1:37pm Jan 8, 2011 1:37pm
Quoting Pipalicious
Hi Custos,

What do you think about this?

Many interesting things he speaks here in that thread.

http://www.forexfactory.com/showpost...1&postcount=39

it is very interesting. BTW, is there continuation. I find it a really good read.
  • #10,085
  • Jan 8, 2011 1:48pm Jan 8, 2011 1:48pm
Quoting shiko
it is very interesting. BTW, is there continuation. I find it a really good read.
go for it:

http://www.forexfactory.com/showthread.php?t=215432

Take your time reading it.

It will open your eyes

rgds
  • #10,086
  • Jan 8, 2011 2:06pm Jan 8, 2011 2:06pm
Quoting Pipalicious
go for it:

http://www.forexfactory.com/showthread.php?t=215432

Take your time reading it.

It will open your eyes

rgds

Pipalicious, thank you. will be reading. i am still back testing NM strategy. looks good. I guess this strategy satisfies CrucialPoint's requirements of successful system. But still for better results experience required to stay away from fake signals..
  • #10,087
  • Jan 8, 2011 2:35pm Jan 8, 2011 2:35pm
at the moment at 4H this looks like a good set up forming. note that it hit resistance area which was used few times before and went down and it is obviously poised to test that support yet again. I will be watching and ready to short it.

Attached Image (click to enlarge)
Click to Enlarge Name: audnzd 4h.gif Size: 75 KB
  • #10,088
  • Jan 8, 2011 2:58pm Jan 8, 2011 2:58pm
on second thought I would not short it. against the trend trade.
  • #10,089
  • Jan 8, 2011 3:30pm Jan 8, 2011 3:30pm
Let's talk about robustness.

The more I backtest, the more I realize what is really robust over a really long period of time.
And unfortunately it is a strategy that is psychologically very very hard to do. But it seems to be the most robust of all. Also the compounding effect is very limited unfortunately.

Here we go: PYRAMIDING.

From what I found, the average winning percentage of trades is only 10%. Obviously the winners by far outtake the losers. R:R's from 1:20 to 1:500 are very possible.

Since it's so hard to do, probably most won't trade it. But I just tell you from what I tested, it is very very robust. It is succeeding across so many pairs and time-frames, as long as one can identify trends and ranges. Obviously you wanna trade the trends.

Obviously we have a very low compounding effect. But maybe that is another trade-off. Robustness versus compounding effect.

Feel free to discuss
  • #10,090
  • Jan 8, 2011 3:34pm Jan 8, 2011 3:34pm
Quoting Custos
Let's talk about robustness.

The more I backtest, the more I realize what is really robust over a really long period of time.
And unfortunately it is a strategy that is psychologically very very hard to do. But it seems to be the most robust of all. Also the compounding effect is very limited unfortunately.

Here we go: PYRAMIDING.

From what I found, the average winning percentage of trades is only 10%. Obviously the winners by far outtake the losers. R:R's from 1:20 to 1:500 are very possible.

Since it's so hard to do, probably most won't trade...

This is MM system, not trading system. from what i understand Turtles system was exactly the one complete system which included pyramiding.
so, to pyramid trader needs to have a complete system including entries, stops, trade management, positions size management, take profit managements. it is a huge task.
  • #10,091
  • Jan 8, 2011 3:42pm Jan 8, 2011 3:42pm
Quoting shiko
This is MM system, not trading system. from what i understand Turtles system was exactly the one complete system which included pyramiding.
so, to pyramid trader needs to have a complete system including entries, stops, trade management, positions size management, take profit managements. it is a huge task.
I don't think that pyramiding is MM. For me MM is for example always risking 1 lot on each trade, or percentage of account on each trade or doubling up on each trade.
Pyramiding is a style of trading exploiting the biggest edge, trends. Since trends are the greatest "inefficiency" of the markets, we can exploit them by pyramiding.
Obviously for everything you need consistent entries, stops, trade management...
But I am just saying. Any system will by far become more robust when it includes pyramiding.
  • #10,092
  • Jan 8, 2011 4:01pm Jan 8, 2011 4:01pm
Quoting Custos
I don't think that pyramiding is MM. For me MM is for example always risking 1 lot on each trade, or percentage of account on each trade or doubling up on each trade.
Pyramiding is a style of trading exploiting the biggest edge, trends. Since trends are the greatest "inefficiency" of the markets, we can exploit them by pyramiding.
Obviously for everything you need consistent entries, stops, trade management...
But I am just saying. Any system will by far become more robust when it includes pyramiding.

I understand pyramiding as adding to winning position, right? to have multiple entries along the trend a la Multipede guy.
For me it loks like very difficult task as exposure might be very large, unless stops moved to BE but in case of no pyramiding to winning position we would not move stop as it would be reasonable risk. I believe while trading with odds without pyramiding does not require too much back testing but more experience and solid psychology pyramiding is a whole project. Needs a lot of testing and rules for sure.
  • #10,093
  • Jan 8, 2011 4:03pm Jan 8, 2011 4:03pm
Quoting shiko
I understand pyramiding as adding to winning position, right? to have multiple entries along the trend a la Multipede guy.
For me it loks like very difficult task as exposure might be very large, unless stops moved to BE but in case of no pyramiding to winning position we would not move stop as it would be reasonable risk. I believe while trading with odds without pyramiding does not require too much back testing but more experience and solid psychology pyramiding is a whole project. Needs a lot of testing and rules for sure.
yeah, in fact for pyramiding purposes, I use break-even stops and a trailing stop.
It really needs a lot of rules.
  • #10,094
  • Jan 8, 2011 4:07pm Jan 8, 2011 4:07pm
Quoting Custos
yeah, in fact for pyramiding purposes, I use break-even stops and a trailing stop.
It really needs a lot of rules.

I have no doubt you do
I have not a bad knowledge of what price does so, I simply know that I am on my own cannot do it because I lack coding skills for this vast project. I could have done it only if paired with some great coder.
I also think that the only way to trade this style of MM is at least on daily. 4H price action is just not for this type of MM.
  • #10,095
  • Jan 8, 2011 4:10pm Jan 8, 2011 4:10pm
BTW, Custos, have you heard about proper order trend following strategy by Edd Ponzi. it can be traded only on daily. also 3 MAs in proper order and entries are pretty simple.
He used trailing stop based on daily ATR
  • #10,096
  • Jan 8, 2011 4:15pm Jan 8, 2011 4:15pm
I recalled this strategy because I know you do not use fixed take profits. Neither this strategy, stop is a trailing ATR stop that being moved as price moves.
  • #10,097
  • Jan 8, 2011 4:21pm Jan 8, 2011 4:21pm
Quoting shiko
BTW, Custos, have you heard about proper order trend following strategy by Edd Ponzi. it can be traded only on daily. also 3 MAs in proper order and entries are pretty simple.
He used trailing stop based on daily ATR
interesting, haven't heard of it, gonna google it later.

thanks
  • #10,098
  • Jan 8, 2011 4:24pm Jan 8, 2011 4:24pm
Quoting Custos
interesting, haven't heard of it, gonna google it later.

thanks
it would be interesting to see how it works in testing over time. visually, on steady trending pairs it looked like an interesting idea. I checked visually charts of U/J while it was trending steady and few other pairs too. strategy is really simple.
  • #10,099
  • Jan 8, 2011 4:31pm Jan 8, 2011 4:31pm
Quoting Custos
interesting, haven't heard of it, gonna google it later.

thanks

I just PM ed you address where you can download it. i am downloading it right now as well.
You kind of reminded me of this strategy.
  • #10,100
  • Jan 8, 2011 4:34pm Jan 8, 2011 4:34pm
Quoting shiko
I just PM ed you address where you can download it. i am downloading it right now as well.
You kind of reminded me of this strategy.
thanks, gonna take a look at it later!
8 traders viewing now