The7 Trading System

Hello there!

It's the first time I'm gonna try this method. I'd like your opinion about the following pairs. Supposing that everything goes as it should, the signals seem valid. What do you think?

AUD/USD
EUR/CHF
GBP/AUD
GBP/NZD
NZD/CHF

Thank you,
Akis

I wouldn't take any of those trades. Somewhere in this thread the7 mentioned that if the signal candle touches both EMA's it's invalid. I believe this is the case for most of your pairs. Beware of a long wick inside of EMA channel. This shows weakness as the price has already retreated in the opposite direction of your signal.

I am not taking any trades tonight. Still floating a loss from selling EUR/AUD on Sunday night from Friday's candle. I have had good success with this system so far but I am very picky about which trades I take.

Hello

Thank you The 7 for this very simple and yet profitable system. I have been trading for 4 yrs and this system suits me very much because of my life stlye and time constrain.
I hv been following this thread for more than 3 weeks and have implemented this strategy to my live trades. Previously, I was using other system in shorter tf of 1hr and the other system using 15m. The shorter tf need monitoring and have to be in front of my laptop most of the time. There were more trades executed compared to this system, but the philosophy in trading is when you have more trades it means you are also risking more loss.
To all newbie using this system please understand that this system is in daily TF. It means that whatever system using daily tf also require a high stop loss and a high tp. Most of the system in daily tf are using approximately 150pips of SL and 100-250pips of TP and execute only once or twice trade a week.
This system is considered unique and trader friendly as The 7 created a very minimum SL (based on high/low of previous candle)
an everage of about only 50-60pips. but the take profit is more than that. The R&R ratio is more than 1:1
I will not take any trade if the previous daily candle touches both sides of MA as it also have a big SL. As for TP, I would set according to cwp1979 parameters and the distance is not less than my SL.
It is not wisely to take profit at 30pips when you have 5 trades because if all the trades goes against you, your account might blown out. If using EA for taking profits, I would set it to 50percent at 50pips and let the other 50pct running by moving SL to BE. To all newbie, please read all post especially from cwp1979 which is very important and please apply your trading strategy according to his advise.
If you require a very simple and very effective EA for monitoring your TP and SL, you may download 'THV CAVE MANAGER'
to be applied to your expert folder.

Hope it helps, thank you.

ps..thank you very much to cwp1979 for your great post, you have created the edge.

Thanks MC. All my day candles have just closed and I see nothing to trade today.
Dave.

Hi Akis, thanks for posting your signals. It gives me and others a chance to see what we have missed and consider our own rules to this lovely simple system. I was busy yesterday and didn’t have a chance to look for signals, so please bear in mind that my comments are with the benefit of 23 hours of hindsight
aud/usa - looked good to me
eur/chf - horrible chart from my broker and also shows no signal
gbp/aud - no signal
gpb/nzd - no signal and not one I would trade as my brokers spread is around 15 pips (excluding last # on price)
nzd/chf - I can’t find it on my demo system
Remember, brokers data feeds may vary - do vary, so it's just what I'm seeing. Keep posting your picks.
Dave.

I took few stupid trades which ended up in losses. I shouldn't have entered those trades but a lesson learnt again(Did this mistake quite a few times earlier).Decided strongly to enter trades which are with clear and right signals..
AUDUSD short-wrong call as bar touching both EMA's
NZUSD-Short signal but still in loss
USDCAD-Buy Signal but still in loss
EURUSD-short-wrong call as bar touching both EMA's (SL hit)
GBPUSD-Short signal (SL Hit)

Not a good day so far..

Cheers

ChicagoRob and others,

Please take a look at the attached statement. I'm using the EA with the Settings sent by Rob lately. Big disappointing results.

Any comment?

The7 method certainly seems to suit some pairs more than others.

I decided to look at 1 pair at a time and visually backtest The7 (red crosses and ticks) and also visually backtest the flying buddah (white crosses and ticks).

For me a fail/cross is if the price does not make the distance in pips from entrance to S/L, RR 1:1.
I know some of you take profit 50% at 30 pips and move 50% to BE so my charts wont apply to your way of trading.

To eliminate losses I only enter once price crosses the high/low of the signal candle with stop orders.

So far the best performer I have found is Aud/Cad and worst performers are Aud/Jpy and Usd/Cad.

Something isn't right because I'm not seeing any trades at the partial close setting.

Rob

Rob, what could be the problem if I am using the same EA along with the same settings you posted.

Can I drive you crazier by asking you to put the EA and the Settings in one zip file and upload for us for the zillions time?

I am just trying eliminate all possible mishaps here or there.

Thanks Rob ;-)

Here are my picks with charts today;

usa/cad - buy
gbp/usa - sell
aud/cad - buy

Out of curiosity, that's quite a big SL compared to your TP? not very good RR - Why's that? Aren't the rules the h/l of the previous candle? Again, just curious - not having a dig or anything

I am long in audusd and audcad..

Hi iamboston yes your right about the SL. I am using the Rokz order management EA which I have set the SL @ 70 pips with a partial order close at +30. I'm still learning to use the EA as far as the settings go so this is more a test of the EA for me and I want to see how it plays out. Also, this is a demo account.
Dave.

aha - cool, thanks for the response!

NOTES FROM A PRO SYSTEM TESTER:

Gentlemen, I would love for us all to get on the same page here. I have tested more systems and even mental strategies than most of us have hair on their head. We seem to have confusion just on how this system is supposed to be implemented. If I am wrong, then my way is very profitable anyway, and I will share it with you. This is the only way you can play this without it being a different system altogether.

Lets use a short trade as a rule: 1 or most often several green candles take us up and thru the top band. The very next bar closes with part of its body inside the top band and part of its body outside the band. The top band!.This means it will be a red bar. Since I am using daily bars only(I dont see it working on any other time frame yet) I will wait until 5pm est/ New York Time to consider the bar closed as that is the cutoff for that bar and a new day begins in the spot Forex market, and we can now enter short! But wait...look at the spreads. They are gigantic. Maybe I shouldnt jump in right away. So, let me wait until 6:30pm or even 7pm when the spread is at least as good as I get it during busy hours. Now we are short.

Stop loss: So now we use the previous candle to the first red candle or, the first red candle itself, whichever gives you the most room, and also more pip risk so we dont get stopped out by market makers tricks. The new bar formed 60 min ago is not even a bar yet to me in this calculation. Of course if the previous bar before the signal bar is too large to place your stop right above it, use the actual high of the last bar, the one that gave you the signal. So for me if todays high was 1.5925 and the previous bar(2 back) has a high of 1.6050, I probably dont want 125 pips of risk so I will take the last bar if high is lower. That's it. That is the only judgement you have in this system! I have only backtested the previous bars high not last bar close high, but Im pretty sure both are profitable.

Targets and take profit area: THERE IS NONE. This is not a get out at end of day system. You have no idea how much profit you can make. None. That is the secret of why this works. You know exactly how much you can lose, but God only knows how big your profit can be. That's why with daily bars you want to be in during big news events. Because you are either going to lose 50-80 pips or so, or make possibly hundreds of pips. Do not be afraid of news if already in the trade.

Setting profits to break even: NEVER! You will be taken out as soon as you pass the previous days bar high. Your profits wont disappear. Leave the trade alone. There is nothing more for you to do until you are bounced out of the trade. Just dont forget to keep resetting your stop at 1 pip or 1 tick above todays closing bars high. THATS IT. That is the whole system.

ENCLOSED IS TONIGHTS ONLY TRADE I SAW THAT WOULD BE A VALID ENTRY. GBP/USD short. This trade is actually a perfect entry. #1-The body is pirced by the upper band, not just the tail. (Taking trades where the tail or wick is whats going thru the band are lower percentage. I do not usually take them but that is only my personal opinion. I like clear picture perfect charts a 6 year old would not hesitate over, or else I move on to the next pair. The next reason I love this entry is also personal. Look at the blue line to the left of the chart. That is where all the action was. It is the area all the big money on BOTH sides fought over. I like that. It tells me that it just may be an "attractor" area once again. So since we have no resistance in the way, getting back down there is not impossible. Maybe without a stop out. Maybe with one stop. Also we have had clear waves to show us this pair likes to move in waves steps or clusters. Exactly what we need to win! We are not here to guess, just follow the rules. =)

I share all this with you because what I need, what we all need are teams to step up and provide info which I see 2 of you already did. Thank you both! -) Here is what we need:

1-What 2 or 3 pairs worked out best that week, and for the entire month. Same for which 2 or 3 pairs worked the worst.

2-If you have had an extended move with 2 or more bars not even touching a band, is it profitable to take the reversal when clearly the trend is the other way? Is it even more profitable!!!!?

3-What happens if you get stopped out 2 times in a row on one particular pair, is this pair getting tired or erratic and now is unplayable for a month?

4-There may come a time this system doesnt work. What one, just one!.........change can we make, like adding an indicator or getting in on the bar "after" the trigger bar, or.....getting in when it looks like the next bar will trigger entry but we get in either one bar before at close or even before close.

5*** Might be most important: Was this pair up or down in this same month for the last 3 years? 5 or more years would be even better info. I hope someone will keep these stats fopr the team. One person volunteering for each pair will give us the stats every month.

THESE SCENARIOS AND RULES ARE NOT PART OF THIS SYSTEM. DON'T USE THEM! BUT WE SHOULD KNOW THEM AND EVERYONE IS FREE TO ADD JUST ONE TO KEEP IT SIMPLE,IF THIS SYSTEM FAILS AT SOME POINT. Have I cleared up any questions on the way to really use this system to get the most bang for your buck and what the inventor was conveying?

WHAT THIS THREAD HAS TOO MUCH OF AND DONT NEED: We dont need questions that are already answered in the first post. No comments about adding different things and using indicators. Thats not part of this system.....for now. We dont need anything but charts like I just showed you which help us to know when to get in and out. We arent concerned that your mother will make you move out if this system doesnt turn around soon. We dont care that someone broke into your car and stole your weed. We dont care that your girlfriend couldnt care less about your trading.(Neither does mine and its a bummer. lol) And we definitely arent interested in any of your past battles that cant help us make more money. EVERY POST YOU MAKE SHOULD HELP US SMILE OR LAUGH OR MAKE MORE MONEY. Everything else is just clutter. Sorry guys, but I can be crazy and silly with the best of them,but after 15 years of being on threads, I have no time for anything but money making ideas. Who is with me on this??????? Anyway, I hope this post is clear enough not one more person will ask "What are the rules again, please?" Now lets go kick this GBP's behind and watch it crash and burn!

Silat50, someone broke into my car and stole my weed! j/k I just did my nightly analysis for possible trades and also came up with GBP/USD short as my only trade tonight. We must be on the same page. One thing I wanted to point out is to be wary of trading correlations. For example, tonight I see potential trades in GBP/USD short and GBP/AUD short; however, if I take both trades I am essentially doubling my bet on GBP declining. I prefer to look at the charts and take the pair with the strongest trend and nicest risk/reward. This is why I decided on GBP/USD.

Wow, another loser this week. Figures that I was hitting about 80% winners demo trading and now am 1 for 4 with real money. Lost about 100 pips this week.

fxozgirl is testing The8_EA at SHF. More changes to come. I could really use a comprehensive description of the strategy. If anyone is up to it, please post it there.

http://www.stevehopwoodforex.com/php...p=30623#p30623

I think you can manage to read post one or so. Its not all that comprehensive.