GBPUSD only system, flat PNL then explosive returns. Good?

hi all,
i'm new to both this forum and to the fx trading arena as well. so hope you experienced traders will give me some views or suggestions.
thanks in advance~!!!

i was testing a simple system that traded only the cable. the stoploss levels were not fixed but TP to SL ratios was about 3:1 most of the time.
however, using a 10k notional amount there was little improvement in equity. it more or less simply fluctuated around 10k sometimes pushing to 15k but comes back. so now... the details:
trade size: 4 times current equity( calculated after each trade for new trade size, so was 40,000 units to start with)
test period: from 15th July 2007 to 9th Jan 2009. so that is about 1yr 6mths
trade holding period: min a few hrs, max 5 days

if trade size was increased to 10 times equity, the 10k will balloon to 570k but i think that is not the issue here.
because the recent volatility will most likely be the exception rather than the norm, i think if i start trading it live, my PNL will most likely be stagnant.
i am testing on 1 hr charts using FXCM's demo platform so i cannot test days earlier than july 2007.

i would appreciate suggestions on MM, entries, exits... everything...
i'm a learner!

thanks again!

not skilled so hope i can get the pictures in...

hi ,
mm = i reckon u should be trading at same lots size as in your equity not 4 times greater,, i fu have trouble adjusting to that try an account with 1:100 leverage so your foced to place lesser trades try to focus on long term stability rather than short term spikes, your account may well be worth more if you would make lower leverdaged trades, u knw what i mean by large crippling losses, try 1:100 as i am and am pulling 100% on account per week off the markets into my acc.

entries - okay, find a trend filter i suggest 4h and 1h, and take ur signal direction on the 15min or 10 min timeframe.

ususally trade last about 3 hours no longer.

exit - depends on ur trading style as a scalper u have to be ready to exit on reversals minor or major knowing if u get out prematurely u can always reenter at a later point for possibly a better entry price. PSAR or HiLo for exits.

Or u could want to be in it for a few days as u say then ur Exit should be the cross of the MACD or GANN HILO if macd then higher timeframe macd she correlate with entry and take the exit off the higer timer frame macd for exit i suggest 8,17,9 on a 30min or 1h Timeframe. gann setting 10 is usaully good or if u want to use it for scsalping a higher time frame period 7 this is for exits.

if u do this right u should have something called a low risk high probabilty trade, any other system it has its pluses and minuses and it does not represent holy grail but if system is used properly and all rules are followed can have winning rate of 80-90% with very low draw down in pips.

hi ,

mm - i reckon u should be trading at same lots size as in your equity not 4 times greater,, if u have trouble adjusting to that try an account with 1:100 leverage so your forced to place lesser trades try to focus on long term stability rather than short term spikes, your account may well be worth more if you would make lower leveraged trades, u knw what i mean by large crippling losses, try 1:100 as i am, and am pulling 100% on account per week off the markets into my acc.


entries - okay, find a trend filter i suggest 4h and 1h, and take ur signal direction on the 15min or 10 min timeframe.

ususally trade last about 3 hours no longer.


exit - depends on ur trading style as a scalper u have to be ready to exit on reversals minor or major knowing if u get out prematurely u can always reenter at a later point for possibly a better entry price. PSAR or HiLo for exits.

Or u could want to be in it for a few days as u say then ur Exit should be the cross of the MACD or GANN HILO if macd then higher timeframe macd should correlate with entry and take the exit off the higher timer frame macd for exit i suggest 8,17,9 on a 30min or 1h Timeframe. gann setting 10 is usaully good or if u want to use it for scalping a higher time frame period 7 this is for exits.





if u do this right u should have something called a low risk high probabilty trade, any other system it has its pluses and minuses and it does not represent holy grail but if system is used properly and all rules are followed can have winning rate of 80-90% with very low draw down in pips.