Very Simple

Hello Fellow traders,

Impressed by fxozgirl's performance with her strategy involving daily candle and stochastic oscillator, I decide to adopt the same for the following reasons:

(1) simplicity
(2) Very less screen time
(3) making decent number of pips

Just to copy fxozgirl's strategy, the system adopts inbuilt MT4 indicator with its normal setting (8,3,3) on a daily chart with 80 and 20 levels.

When the main line crosses signal below 20 and reaches above the 20 line it is BUY.

When the main line crosses signal above 80 and reaches below the 80 line it is SELL.


My broker is OANDA. I selected this broker because the daily candle opening suits my time zone.

Thanks to fxozgirl

07/25/2011

Entered EURNZD buy at 1.66158

07/26/2011

The first trade was successful. I have entered two micro lots. The first lot hit the target of 50 pips and i moved the SL to BE for the second lot which got hit. So the total profit was 100 pips.

No trades for today as none of the pairs met the criteria.

07/27/2011


Entered AUD/NZD Buy at 1.26443

The previous trade of AUD/NZD is positive but still to reach the first target of 50 pips.

Probably no new trades for today too!!!

07/29/2011

Entered EURUSD Sell at 1.43404

AUDNZD is swinging from positive to negative to positive. no final decision on this pair yet.

EURUSD SELL: 1st microlot closed with 50 pips profit and the second lot moved to BE

I have closed the AUDNZd pair with a moss of 2 pips as the stoch has entered into overbought area. ( this method of exit is not mentioned in fxozgirl's strategy)

08/01/2011

No trades for the day as the criteria as not met for any currency pair.

08/02/2011

Entered GBPUSD Sell at 1.63033

GBPUSD trade closed with 50 pips profit

08/03/2011

Entered EURAUD Buy at 1.3178

EURAUD buy closed in profit

Ist microlot made 50 pips and 2nd microlot made 105 pips

08/04/2011


Entered CADJPY Buy at 81.905

Hi Simplecoders,

Could you give us your results in % on your account ? Unfortunatelly, pips doesn't say anything about this system being profitable or not. It has a very high probability ratio for sure... but the MM is a big problem since one full loss once it occurs jeopordizes several winning trades.

The above CADJPY Buy trade closed in profit of 50 pips for both microlots.
First micro lot trade got hit the TP while for the second it the SL got hit when it was moved to 50 pips from the trade entry price.

.

Infact, what I feel is that the MM varies from trader to trader. depending upon his psychology and risk bearing capacity. It is the number of pips in profit and the no of pips in drawdown that matters.

As far as draw down is concerned, for AUDNZD trade it was around 50 pips (the trade ended in a loss of two pips). For other pairs it was below 50 pips.

What I feel is that the stop loss should be around 50 pips ( but not sure). Go to study more

It is too early to form an opinion on this strategy.For the last one week it is going well.

Hi Simplecoders,

Your pip value is not the same all over the trade since you are taking some partial profits. That is why the number of pips won or lost does say anything about the system.

Try to see what is your gain in % of your account over the time. This should give a good idea if it works long term or not.

I would propose opening an account on Myfxbook or similar (there are at least 2 or 3 alternatives) to track your trades (you can even post the link here).

Regarding 50 pips SL, it can be interesting to check out, but most of the pairs have their daily ATR around 200 pips and somtimes some of the retracements can have more than 50 pips.

The other solution for SL that I was thinking of was to take your losses the same way you take your profits i.e. by batches:

1. at - 50 pips close 30 %
2. at - 100 pips close remaining 30 %
3. at - 200 pips close remaining 40 %

It should give 1:1 Risk Reward Ratio, which taking into account high probability of this system (about 80 - 85 % in my case), should give nice results.

I will give it a try after my return from holidays :-)

I hope you will also find it useful. Good trading !

08/05/2011

No trades for the day as none of the pairs has met the criteria

Hello trzcinek,

The total no of pips gained must be equal to the the no of pips made in the last batch of trade closed.
In the case cited by you, it should be equal to the 3rd batch of trade closing at 40%. It is not the total of all three batches.

I am still playing with the idea of SL or exit.

It can be 50 pips ( which is equal to the Profit target for the 1st batch of trade closed) or it may be when the stochs go opposite the direction of the trade below the 80 or 20 levels or as you said the equal to the average daily range of the particular currency pair (in this case the risk to reward ratio may be negative). The point of exit needs further observation in fact.