Hi all,
GBPJPY - SELL Entry
If so, that would be the red bar, 4 back and lower than the current bar.
It takes a lot for me to IGNORE you, but you can try.
Does this simple system by Richard Donchian really work?
- #22
- Dec 14, 2011 9:54pm Dec 14, 2011 9:54pm
- Joined May 2010 | Status: Trader | 2,693 Posts
If, as appears to me, that you enter a sell at the highest low of the previous 4 weeks, then shouldn't the stop loss be at the lowest high of the previous 4 bars?
If so, that would be the red bar, 4 back and lower than the current bar.
Thank you for ur feedback, PA has been break 4 Previous week Low this is the rule no 2 of RD (4week rule), and I am using 5SMA Close and Open is the range of risk (SL) , where do i put the SL/Risk if the 4 PWL is broken the answer is above 5SMA O/C. There is no others rule that i will using it's only two rule from RD and 1 rule Risk and Reward.
Just keep the system with the Simple Observation and the Simple Rule
Cheers
- #24
- Dec 14, 2011 10:23pm Dec 14, 2011 10:23pm
- Joined May 2010 | Status: Trader | 2,693 Posts
Hi mrhb30jr
please explain about nzd/usd
low of candel is about 0.7540 , why do you enter in 0.7567 ? do you enter in pullback? do we have to wait for 5sma for touch or cross the price line ?
Noted, I entry on the 4PWClose and still in my observation if could be using in the future ...
- #25
- Dec 14, 2011 10:37pm Dec 14, 2011 10:37pm
Hi tetis,
Noted, I entry on the 4PWClose and still in my observation if could be using in the future ...
1) Close short positions and go long whenever the price exceeds the highs of the previous 4
calendar weeks.
2) Close long positions and go short whenever the price falls below the lows of the previous 4
calendar weeks.
- #26
- Edited 11:30pm Dec 14, 2011 11:05pm | Edited 11:30pm
- Joined May 2010 | Status: Trader | 2,693 Posts
ok my friend but in 1 post this is the rules:
1) Close short positions and go long whenever the price exceeds the highs of the previous 4
calendar weeks.
2) Close long positions and go short whenever the price falls below the lows of the previous 4
calendar weeks.
Hi tetis,
Noted just two main simple rule of RD simple system, and 5SMA as the filter for the SL/Risk, where the entry point if the 4PWL break out ? this is my homework list need to observation :
1. entry ± 20/15 pips above/below the 4PWL or equal to 4PWC
2. entry ± 20/15 pips above/below 5SMA O/C
3. entry ± 20/15 pips after BKO the 4PWL on the pullback
4. entry ± 20/15 pips below the gap on current weekly open
those the entry type could be using for ur obsevation too Tetis which one is the better one, but don't forget SL/Risk 5SMA O/C and two RD Rule
Keep this as simple as like RD Rule
Cheers
- #36
- Dec 20, 2011 8:15pm Dec 20, 2011 8:15pm
- Joined May 2010 | Status: Trader | 2,693 Posts
thanks mrhb
curious strategy
could you please tell me if the buy stop is well placed?
my English is bad, and there are things that still do not understand
here my entry point above the high of the previous 4 week calender high, and the risk/SL below the sma ± 40-50 pips and TP1 = SL/Risk/40-50 pips
Cheers
- #37
- Dec 20, 2011 9:25pm Dec 20, 2011 9:25pm
- Joined May 2010 | Status: Trader | 2,693 Posts
I've been waiting for someone else to correct this but I see noone so far has. On the first chart posted you are not marking the high/low of the previous 4 week period you are marking the high/low of the 4th to last candle. This is a different thing.
You should draw a line at the highest price reached within the last 4 weekly candles and also at the lowest. When this price is breached either way then you should trade either way.
This system has proven to be fairly effective long term but whether market conditions have changed too much for...
Dear Hugh Briss,
Just check the chart for the point C and B those are the 4 previous week high and your SL below the SMA - average 40-70 pips and then just check the result, my attention just on the value highest and the lowest value in four the previous week , this point usually will happen reversal of direction of , and if this area or this point are not passable , this is the understanding that came out of his theory rd, and i'm using the sma is to minimize the risk/SL
cheers
- #38
- Dec 20, 2011 9:56pm Dec 20, 2011 9:56pm
- Joined May 2010 | Status: Trader | 2,693 Posts
Dear Hugh Briss,
Just check the chart for the point C and B those are the 4 previous week high and your SL below the SMA - average 40-70 pips and then just check the result, my attention just on the value highest and the lowest value in four the previous week , this point usually will happen reversal of direction of , and if this area or this point are not passable , this is the understanding that came out of his theory rd, and i'm using the sma is to minimize the risk/SL
cheers
for High, time period 10080, Shift - 4, MA - 1, Price - 2 and for Low time period 10080, Shift - 4, MA - 1, Price - 3 and i can see from the lower tf ....
cheers
- #40
- Dec 21, 2011 12:38am Dec 21, 2011 12:38am
- | Commercial User | Joined May 2011 | 3,012 Posts
Dear Hugh Briss,
Just check the chart for the point C and B those are the 4 previous week high and your SL below the SMA - average 40-70 pips and then just check the result, my attention just on the value highest and the lowest value in four the previous week , this point usually will happen reversal of direction of , and if this area or this point are not passable , this is the understanding that came out of his theory rd, and i'm using the sma is to minimize the risk/SL
cheers
Donchian channel trading is a kind of volatility breakout system whereas you are trading a s/r strategy.
Maybe someone will correct me and I have it wrong but here is a chart with my understanding of a donchian channel breakout...
The previous 4 weeks high/low is marked and the candle that follows is the breakout candle. This is my understanding of the original Donchian channel rules but like I said, if what you are doing is working then good for you.
Good luck.
