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The7 Trading System

  • #501
  • Oct 27, 2012 12:56pm Oct 27, 2012 12:56pm
Hi there to all! I´m a newbie in this forum and i´ve read this entire thread.

Congratulations for this simple but profitable trading system.

One question, do you guys enter a trade in the end of a friday or let pass the weekend and enter sunday night, or maybe monday in the open of Frankfurt/London open?

Thanks,
rjfvalente
  • #502
  • Oct 28, 2012 10:58am Oct 28, 2012 10:58am
After spending some more time reviewing the charts I set some additional parameters for taking trades. My goal is to eliminate some of the false signals and take only high probability trades. I'm not saying this is better than the original system or even works, this is just what I'll be testing.

 

  1. Determine the trend. You can do this visually or with a 30-day simple moving average (close). Only trade against the trend if you have a strong reversal candle such as an engulfing or hammer. I have noticed that the system sometimes will give false signals when taking trades against a strong trend. I like to trade with the trend.
  2. Any signal candle with a longer wick inside the channel than outside the channel is not a valid signal. This is a sign of potential weakness. I'll use my judgement and sometimes break this rule if the inside wick is not long.
  3. Trades are closed upon completion of a daily candle that pierces the opposite channel. The is to avoid a reversal day that takes back profit or turns a winner into a loser.
  4. Stop/loss is set at high/low of previous day. I don't like how high the SL sometimes is but I haven't found a better way.

There's not going to be as many trades but hopefully the win/loss ratio will be slightly better. Looking at Friday's candles I would take GBPUSD short. Not the best looking candle, but a trade with the trend nonetheless. I would also take USDCHF short. Also not a strong candle either but I'll take it and see what happens.

  • #503
  • Oct 28, 2012 12:34pm Oct 28, 2012 12:34pm
Quoting cwp1979

  1. Determine the trend. You can do this visually or with a 30-day simple moving average (close). Only trade against the trend if you have a strong reversal candle such as an engulfing or hammer. I have noticed that the system sometimes will give false signals when taking trades against a strong trend. I like to trade with the trend.
  2. Any signal candle with a longer wick inside the channel than outside the channel is not a valid signal. This is a sign of potential weakness. I'll use my judgement and sometimes break this rule if the inside...

If you close on candle piercing the bands does that not take away from the whole concept of let your winners run? Seems you would end up with small winners vs. small losers. The edge of this system is to catch large moves to offset the break even/small lose trades. All trends have reversal days, no way to avoid that. You would never catch a large move exiting at first candle pierce.
  • #504
  • Oct 28, 2012 1:27pm Oct 28, 2012 1:27pm
Quoting thorn
[/list]If you close on candle piercing the bands does that not take away from the whole concept of let your winners run? Seems you would end up with small winners vs. small losers. The edge of this system is to catch large moves to offset the break even/small lose trades. All trends have reversal days, no way to avoid that. You would never catch a large move exiting at first candle pierce.
I see your point about letting the runners run. I still feel like I need a good reversal candle in order to take a trade against the trend. I see too many examples of short signals in an uptrend that are stopped out the follow day. I think I'll use my parameters regarding trading against the trend but let the trades run until I get the opposite signal. There's many ways to skin a cat here. The7 gave up a great framework to play with.
  • #505
  • Oct 28, 2012 3:09pm Oct 28, 2012 3:09pm
Quoting cwp1979
I see your point about letting the runners run. I still feel like I need a good reversal candle in order to take a trade against the trend. I see too many examples of short signals in an uptrend that are stopped out the follow day. I think I'll use my parameters regarding trading against the trend but let the trades run until I get the opposite signal. There's many ways to skin a cat here. The7 gave up a great framework to play with.
You can also see example where an uptrend/downtrends have reversals that last a few days and those can be profitable too. But I see your point. You can always make your own set of entry/exit rules that you feel most comfortable with.
  • #506
  • Oct 28, 2012 5:53pm Oct 28, 2012 5:53pm
I'm seeing daily signals on GU, GJ, AJ, NJ
  • #507
  • Oct 28, 2012 7:10pm Oct 28, 2012 7:10pm
I took gu and gj short - doubling up on gbp but what the hell they fit the criteria.
  • #508
  • Oct 28, 2012 9:35pm Oct 28, 2012 9:35pm
i try with AUDNZD
  • #509
  • Oct 28, 2012 11:05pm Oct 28, 2012 11:05pm
Hi jcl365,

"I can post the code here if someone wants to reproduce the result. "

would you mind posting the code as I'd like run a b/f test on it to validate the result?
Thanks


Quoting jcl365
I made some more experiments with modifications of that system and found that the performance is quite good. The following chart is the result of a walk forward analysis with 3 assets and optimized parameters. A a walk forward analysis is very thorough and only really profitable systems pass it.

http://zorro-trader.com/Log/the7_optimized.png

The blue area is the equity. The annual return is 255% with combined strategy with the 3 assets that were profitable, EUR/USD, AUD/USD, USD/CAD. The modifications are that I replaced EMA with a...
  • #510
  • Oct 29, 2012 12:50pm Oct 29, 2012 12:50pm
ONly set-up I've seen is GU short, took it for 20 pips and out on account I'm on the east cost. Could have held for double that easy. oh well.
Attached Image (click to enlarge)
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  • #511
  • Oct 29, 2012 1:27pm Oct 29, 2012 1:27pm
Chicago Rob,
Can you share your MPTM settings for taking 30 pip profit and letting rest of lots run or trail?
THanks
  • #512
  • Oct 29, 2012 4:06pm Oct 29, 2012 4:06pm
Quoting kentashiburo
Hi jcl365,

"I can post the code here if someone wants to reproduce the result. "

would you mind posting the code as I'd like run a b/f test on it to validate the result?
Thanks
I believe that JCL365 was labeled a commercial member because he kept mentioning the testing platform that he was using to get these results. He openly admitted that he was involved with the company in at least a few of his postings and he mentioned the name of the platform several times.

Having said all of that, I think the great think that JCL365 brought to the forum was that at least he was doing some back testing. This is an approach that is actually easy to back test (unlike most on forex factory), so it is amazing that more people have not actually taken the time to thoroughly back test it. Perhaps you can write to TWEE and determine if JCL365 was indeed banned. Also check the commercial section....I think that he had started a thread at some point....and that is probably where it is now.
Trading Foreign Exchange....But Only By The Grace of God!
  • #513
  • Oct 29, 2012 4:39pm Oct 29, 2012 4:39pm
Quoting prosper1
Chicago Rob,
Can you share your MPTM settings for taking 30 pip profit and letting rest of lots run or trail?
THanks
In the past, I was just using a 30-pip hard TP, with a hard SL. I'm thinking about changing over to a BE-pips, partial close approach, which is available in Hopwood's EA
  • #514
  • Oct 29, 2012 5:54pm Oct 29, 2012 5:54pm
Hi there! Anybody going long on eur/gbp? I´m not sure of taking this position because of tomorrows Draghi´s speach...Any opinions?
  • #515
  • Oct 29, 2012 7:37pm Oct 29, 2012 7:37pm
With the hurricane in New York.....things at a c-r-a-w-l
  • #516
  • Oct 29, 2012 8:13pm Oct 29, 2012 8:13pm
Quoting ChicagoRob
In the past, I was just using a 30-pip hard TP, with a hard SL. I'm thinking about changing over to a BE-pips, partial close approach, which is available in Hopwood's EA



Yes, I am not seeing in the settings where you set a TP and close half position?
  • #517
  • Oct 29, 2012 9:26pm Oct 29, 2012 9:26pm
McPip,

I think it is a general rule on FF...as soon as someone comes out with an idea, people jump on it hoping its the best next thing....as long as the hipe is being maintained with or by winning trades postings...the thread will continue and so on..

On the flip side, testing in MT4 any strategy is a joke....i petty anyone putting their money on a EA tested on MT4....

As for JCL, don't think it bothers me that he is or was a commercial member, he made a few goood points ( for those statistical science inclined ) As far as the testing platform goes, it is free so if he was trying to sell it ....well who buys it is an idiot....due diligence is a must

Now to my real request : I am have been developing a strategy based mainly on the same principles....more or less ...traded on 4h and daily and it works well on discretionary trading. Testing it on MT4 as I mentioned before is a joke, so what i am looking for is a a way to validtae JCL's test in order to see if my testing platform yelds the same results in order to gauge the validity of the tests on my startegy and this one as well.

Because I always like to give back where I am taking from, if all goes well I will post my results on the testing of this strategy as well.

On a side note, this strategy is positive if you apply proper MM.

Good traing ya'll

Quoting McPip
I believe that JCL365 was labeled a commercial member because he kept mentioning the testing platform that he was using to get these results. He openly admitted that he was involved with the company in at least a few of his postings and he mentioned the name of the platform several times.

Having said all of that, I think the great think that JCL365 brought to the forum was that at least he was doing some back testing. This is an approach that is actually easy to back test (unlike most on forex factory), so it is amazing that more people have...
  • #518
  • Oct 29, 2012 10:43pm Oct 29, 2012 10:43pm
Not sure you would call this a strategy. It basically assumes a reversal pattern and hopes its not a continuation. I suppose like any market, eventually you run out of the stops being taken out. If you can figure out the filters, than you win. If not , you give it up
  • #519
  • Oct 30, 2012 4:24am Oct 30, 2012 4:24am
Quoting maudur
Because there are people who do not like reading, I summarized the strategy with the most important posts from The7.

I hope you do understand the strategy now.

The indicator developed by other people in the thread, does not work according to the statements by The7 and you should not consider please.

I developed an Indicator compliant the indicated by The7. I sent it to the last few days to The7 for validation. In any case I want to share with you for you please try it.

The only parameter of the Indicator is MinCandleSize, it's the size...
Very good indicator. The alerts would be even better. What a pair, audio, e-mail notification ...
  • #520
  • Oct 30, 2012 4:55am Oct 30, 2012 4:55am
I think this system could work very well and i love the fact is so simple. Any way, in a strong trend it tend to have so many losses (see picture below). I think if we can limit those losses, this system could be perfect. Any ideas?
Sorry 4 my english
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Click to Enlarge Name: chfjpy.png Size: 56 KB
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