Interesting GBP System

Mic,


I think that closing the open trades after 12 hours is not a bad idea, because it gives the market 2-3 hours to digest the news, and if you are on the right side of the market, the next hours you should expect some corrections, and I think avoiding them is possible.

what you think?

Guys,

I have given you base system and you are free to fine tune it the way you want. if you come up with better system/results, please post it here so that all can benifit from it.

Mkcky

This 30pip stop 11:00 EST Straddle Strategy (probably anywhere between 11pm EST and anything prior to 1:00 will be ok) closeout has its possibilities.

I like it, Im going to test it out.

Basically all the systems already mentioned here take advantage of the big moves the GBP has most everyday to hit its Take Profit.

I once used a variation:

BUY and sell limit orders 35 pip from price at 1130pm-100AM EST
Stop 35, limit 30.

I did this in small amounts on OANDA got promising success then on FXCM and received each week anywhere from -30 to 70 pips slowly gaining profit --three steps forward, two backward. OANDA seemed to do better some days in pipage than FXCM and FXCM did better on other days, I followed the trades in both accounts.

BUT the strategy seemed too much of a wash for the amount of trades placed ( even though there was profit, ultimately, for some reason I was obsessing that I was making the broker rich through the spread for profit gained) so I abandoned it, but maybe prematurely....

The high/low 30tp/15stop was also followed, but there was too much duck nibbling there, all those -15's followed by the less frequent +30, I think the stops are too tight, one hiccup and the trade was out.

Both strategies also missed out on the additional pippage once the GBP took off and it NEVER occurred to me to leave off with the take profit on one lot to see what sort of result may occur....hmmm THANKS.

Another breakoutplan:

This one is more to my liking as well, not so many ducks....but one has to watch out for the 100 or worse 200 lbs snapping turtle

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Step back SIBKIS system
(this taken from Moneytec) Edited

2 trades per week and does not require too much managing.

Rules:

1 - Mondays off (chaotic)

2 - Tuesday 100AM EST (anytime after 11pm to 1am EST should be ok)

3 - set up Buy/Sell orders 50 pips from current price (official 100amEST)

4 - When one triggers the other becomes the stop loss (so 100 pips stop)

5 - Add a reverse in case the first trade fails.

6 - Once the trade is running leave it alone and let it do its thing until Friday evening and close.

7 - Remember if the reverse trade triggers you will need to set a 100 pip stop on this.

Intervention :

Apart from setting the original triggers, adding the reverse trade and adding the new stop if required the only intervention is when there is important US data (NFP etc) on a Friday, when this is happening at say 3pm, cancel the original stop loss at and set a stop 30 pips away from the current market price to guard against any large reversal.


As with the other system there are lots of opportunities to close the trade during the week for good profit but I prefer to leave it to run.

Here are the charts for the first 5 weeks of the year on GBPUSD

Current running P/L on this system is

29 Weeks to 20 July

Year total profit 4300

Month totals :

Jan +1005
Feb +190
Mar +1055
Apr +630
May +685
Jun +300
Jul +515
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I have tried this and it too seems promising though I got wacked by two 100 pip stops first time out but made up for it later on.

However an opinion in the thread also indicates ATR needs to be "high" for the system to best perform (in 2003 it wasn't encouraging). Also others indicated letting the trade run over the weekend and not close it out if a run seems apparent.

I am testing this last system suggested by Mkcky and i think that today results for GBP/USD confirms that when ATR is low is better to not place a trade, what do you think about it?
GOD bless.
mariovides

Sorry, i confused the ATR info with other pair, please forgive me.
mariovides

How would you set a "filter" for this system in a sideways market to keep you out of double-stop losses?

Last week they probably got whipsawed into silence.

Lou

This is very simple system and does not have any filters.

Here are some of my obervations.

Monday is always slow or sideway market day.
First week of the month till friday the market is waiting for NFP news and it goes sideway.
If there is no Economics/political/natural disasters/terrorism news market generally tends to go sidway.

However I would suggest to have a good money managment and trade everyday. This week was not as bad as you think have a look at my weekly results posted below.

Mkcky

Hi Lou,

I had to answer your post. You are WRONG!!! Last weeks results are not as bad as you think. Have a look at performance.

1 Oct: +90 Pips
4 Oct: +5 Pips
5 Oct: -30 Pips
6 Oct: -60 Pips
7 Oct: -60 Pips
8 Oct: +78 Pips

Total Profit for week: +23

Mkcky

Guess which 3 days I was trading? On paper thank goodness !!

Lou

You wrote:

1 Oct: +90 Pips
4 Oct: +5 Pips
5 Oct: -30 Pips
6 Oct: -60 Pips
7 Oct: -60 Pips
8 Oct: +78 Pips

Total Profit for week: +53

While, most importantly, there was a weekly profit, it actually totals +23.

Hi bob,

Thanks for pointing out miscalculation. I have corrected the orignal post.

Mkcky

did a google search on "free Forex historical data".

First (at least one) match I found is:

http://www.fx-forex-trading.com/database.htm

probably worth looking into, though their sales person may contact you. Their data goes pretty far back and includes 70 currencies. Don't know if it is just EOD data or includes lesser increments.

As I look back there are updates and corrections and suggestions all muddying the rules.

What are the rules that have given you the results... which are pretty good especially after last week !!

What indicator filter , setting, time frame.
Does ADR have a sliding scale for stop loss or only 3 settings. for no trade 30 pip or 50 pip SL

Time for leaving the trade open.. 12 hrs or 24 ?

How many lots...

anything else

LOU

There are three diffrent GBP systems posted here. Some people are confused/no sure which system I am using so I going to open a new thread called "Mkcky's GBP System" I will post the statergy and results on new thread.

Mkcky.

anyone tried this out ?

Hello,

I've made an EA, but it requires to be forward tested as in the strategy tester the pending orders can generate some issues.

is anyone using this ea?
is anyone using this system?