Pip Farming

Can't believe i was out, and missed the Gpbusd....

Claudia............dont see how to PM you....do you have a scalping thread ? would like to take a look

Did have but closed it. You can pm me wont discuss here as don't want to interfere with what swings doing.

Eyeing GJ for a Long....

Why short?
Is it because of a potential break of a double bar low and/or break of a fractal (far left of the page) that is resting on your red horizontal line?

The secomd candle in from the left was a DBLHC candle, so the pair was approaching a short if it broke too the downside of the DBLHC, as it happened, missed by a few pips, and as you can see, took off North

Got it -so if you had been long from the first fractal in from the left then you would still be in a long (and breathing easier) :-)

Spot on Turnip, well in the pips now.

@Swing - Do you set pending orders before you go to bed at night, i.e. last scan of the charts to see if there is anything that you aren't already in or a new DBHLC / DBLHC / Fractals have formed, place the pending orders and get up in the morning to see if they have been triggered?

Thanks

That would be a good idea fwloop, i myself missed 3 good longs this afternoon nipping out for an hour, in total approx 350 pips blown.... always next time...

Started reading swing's thread, over the weekend, took me a fes days too digest and get to grips with the concept, i was used to scalping 5 minute charts..

Have taken 3 trades since yesterday

3 Wins, 187 pips in total.... Now just to grow some balls and use £10 a pip...

scouse.

would love to but cant see how to................

Maybe because you haven't made enough posts at FF yet. [email protected]

Short Stop entry order placed on GBPNZD (and or SL moved up on long)

Example of what we were talking about, I didnt have the DBLHC so didnt enter GBPJPY....Short in the morning.....This time it was probably lucky not to and am now in the Long.....over time I am sure chart differences, hour differences will even out

I stumbled upon this thread the other day, and I must say I was quite impressed by the simplicity and the effectiveness of this system, at least after the few short backtests I did on a few charts.

However, then I decided to do a few "proper" (see below) backtests, and it seems that things are not so rosy after all.

At this point I want to emphasize, that these backtests are not nearly 100% valid, because of the following reasons:

- there might be some bugs in the EA
- I have completely left out the double bar triggers, and used only the fractal indicator
- I only did two backtests of 2 years length each, which is far from being thorough, but it's a start
- backtests have not been done on proper tick data, although frankly speaking since this is not a scalping method, this shouldn't influence the results much

What I did implement:
- the entry based on the fractals
- taking half of the position off at +50 pips, and going -50 with the stops to create a net free trade
- taking off the second half on an opposing signal, and essentially flipping sides immediately

I tested on two pairs, gbp/jpy and gbp/aud. Tests ran from January of 2013 to the present day, on a 4H timeframe.

The gbp/jpy test resulted in somewhat over 1000 pips over the two year period, with a maximal drawdown of about 500. Could be worse, but nothing too great I'm afraid. The other one did worse, ended up about -250 pips but went as low as -900 before recovering by the end.

Looking at the trade history itself it clearly shows, that this system thrives when there's a strong move in either direction of the market, quickly pocketing several hundreds of pips in a few weeks or even days. However when volatility and more importantly directional pressure is missing, the equity curve goes sideways and starts slowly but surely declining.

Like I said, the test was far from perfect so take the results with a pinch of salt, but generally speaking it shows that this system is not profitable on the long run, or borderline profitable at best. Seeing as the OP and some others here seem to have great success with it can only mean one or several of the following things:

- leaving the double bar entry signals out drastically changes the success of this system, and so my tests are largely irrelevant without them

- you are using discretion in your trading, in other words the system is good but cannot be traded in a mechanical way, only as an entry method after a directional bias acting as a filter has been established. Another possibility here is that you implement discretionary trade management, something quite more than getting the trade free after +50 pips and then waiting for an opposite signal to flip.

- you are benefiting from the fact that since the last few months there indeed has been a strong directional conviction in the markets. If this is the case, then sadly this system will become unprofitable once markets calm down and go into correction mode.

Would love to hear your thoughts on this. In any case, it's a nice system and a nice idea. Clean and easy to learn. Question is, is it really profitable?

in response to the above post, blah blah blah blah blah

By all means, ignore what I wrote. At the end of the day, it's your money at risk, not mine.

Could you elaborate on that?

I've been following along from the start. I'm a big fan of ST's. I wondered how long it would be before someone did a back test on the rules as stated( albeit, not all of them). It would be pretty easy to someone with a bit of IT knowledge). As I understand it they are 100 pip stop or a smaller fractal or DBLHC/DBHLC with a 2 pip buffer, and the 7 bar fractal. BUT, ST has said make it your own. i.e use discretion as he has shown in his exits.
Green pips.