Simple Pullback System

Hi folks,
first of all, english is not my native language.

I would like to share my system with you because i believe in it! After i lost quite some money in 2013 i "developed" this strategy in January, turning $100 into $1000 within 3 weeks, lost it all within a month, got back to $1000 and lost it again. The reason for the losses, obviously, i was undisciplined and impatient, what a surprise But as long as it was my own stupidity and not the strategys fault i am ok with it.

But before i start again i just want to know what you think about the strategy and whether my gains were complete flukes.

I said earlier "developed", i don't think i am the first one and not a lot of work went into the development i kept it as easy as possible!

Timeframe: M15
Indicator: SMA(600), to give me an indication where the price is at the moment
I am looking for recent swing highs/lows

Set-up: When the price is below SMA i am looking for longs, when it's above for lows. The price has to move at least 10 pips above (below) the last swing high (swing low) and bounce back. Entry is 3 pips above (below) the last move. SL = last swing, TP = 2x SL, SL = BE after 10 pips gain. So every positive trade doubles your investment, ever negative trade halves it.

Example attached (grey line = SL, blue line = entry, yellow line = TP)

For more examples please search for the pictures i posted in this forum (pics from March '14 to May '14).

Looking forward to your comments, don't hesitate to post pictures with examples where the strategy failed!

Cheers!

I would love to learn more on the swing high and lows. So I will subscribe.. and ur link this what u get Search results expired. URLs for search results cannot currently be shared with others.

What is the gray blue and yellow lines?

ok, sorry, just search for my pictures in the forum (March '14 to May '14)

(grey line = SL, blue line = entry, yellow line = TP)

I would love to chat to traders that are following this or a similar strategy.

The only downside is, it takes time to find perfect set ups. Sometimes i have only one trade a week, that's why it is so easy to become impatient.

here are some more examples, all of them turned into profit!

Hi inad07 your system is based on counter trend trading.

Hi,
Would you mind go through the entry-rules again?
I have a hard time to understand, sorry !
Also you say the SL is last swing, but to me it looks like you put the SL 3pips over/under your entry ?!
But it looks like a nice system !
Thanks.......

In my first example the entry is 3 pips below the first break through the gray line (entry = blue line)
SL = gray line, TP = 2x SL = yellow line.

and yes, it is based on counter trend trading. most of the sudden moves are compensated later.

Subscribed

Same system can be used going with the trend.
Pull backs happen all the time.Its typical harmonic price behavior.Him saying he is waiting almost a week for 1 trade on 15min chart is simply not accurate.
Pull back trading is classic trading and it can be done with SMA or without.It has little relation to MA's.
Price goes to S/R gets reaction then resumes dominate momentum.This is also easier to see on Bollinger Bands.
Tactic is used by breakout traders a lot.They typically won't trade the 1st BO since that could be false but wait for price to come back then take with dominate momentum.
Not highjacking your system just giving overview why Price does what it does.

What confirmation will you take from indicators side, such as ma/oscillators/ BB & others.

no trades for me this week so far, missed this one though:

GBPAUD, long for +40 pips (SL 20 pips)

@Davit: for me it is far too risky to enter where you would, price often tests a former S/R level, bounces back some pips (to your entry level) and then breaks the S/R level. it is much safer to enter 2-3 pips below/above the initial break.

@esanjayplaye: i don't use any indicator, only the SMA but just to give me an indication where price is at the moment. if the set up is right i'd take a short trade below SMA as well

Newer trader so hopefully the question isn't too worthless.

I was wondering how you arrived at 10 pips over the last swing and bounceback for the set up?

Thanks.

i don't quite understand the question, sorry.

for my last post: the gray line marks the level of the last swing, price breaks that level (at least 10 pips) and bounces back to that level. that is the set up. entry is 3 pips above the initial break.

I am just trying to figure out how you determined that a 10 pip price break is sufficient for the system to work. Why not 8 or 12, etc? Hope that is more clear and relevant.

On the first example, where do you have the "Bounce back" to the grey line?
I can not see that it did go back to the grey line!
It feels like I miss something......sorry !!!

@mc566: sorry for my late answer. it should be at least 10 pips, i don't want to trade a 5 pips break and pullback. i've tried to do that on the M5 timeframes, not for me. i want to see a strong (10+ pips) move in my direction.

@nikki: my very first example? here is a picture of the M10 chart, there you can see the bounce better.

slow start to the week, it's bank holiday in Germany. hopefully, i will have something to share with you this week

this is from friday morning, USDJPY, M30
blue = entry
yellow = TP

short on EURJPY, M15, entry at 138.50
1st TP = +25 pips
2st TP = +50 pips

You join forex factory in Oct 2009, so that mean you "first learn about forex around 2009"

You lost money in 2013, "when you think you know it all after being in the market for 5 years"

2014 you tried new strategy but non make fast money like you "did in 2013".

So now May 29, 2014 you "convince yourself that it's your fault you lose not the "high risk" .

To confirm that you are not crazy you ask " i just want to know what you think about the strategy and whether my gains were complete flukes. "

Since you ask ... my answer is:

The strategy is not going to work, because of your stop loss is small it's going to get hit. The market whipsaw will hit your small stoploss over and over.
Your entry signal is late by 10 pip which is alot for scalping. You play too many "Exotic Currency Pairs" spread will be your enemy.
Yes your win were just random luck other wise you will be millionaire already....