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RSS (Ridiculously Simple System) 624 replies

Can someone code this ridiculously simple MA indi? 1 reply

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Attachments: Very small stops (from 3 pips), ridiculously high RR (to 1:30)
Exit Attachments

Very small stops (from 3 pips), ridiculously high RR (to 1:30)

A few days of silence, i was working hard to complete the automatic part of my cybernetic trading algorithm (half human half robot), this will take care:

- Entries (superfast automatic ones).
- Stoplosses (automatically calculated and placed).
- Lotsizes (automatically calculated from distance between entry and stoploss).

As for the risk of each trade, i'm planning to stay at 1% to start with.

So.. i guess we are ready to start, the testing phase is finished.

I'm also planning to prefer indices trading, such as german dax or us dowjones, as they tend to whipsaw less and be more PA friendly on the very short term.
Yet i'll keep an open eye on currencies as from time to time (like soon after an important news, or just at the london and ny open) they still have something to offer.

We'll discover soon if this high RR trading style is the real holy grail.

More to comes tomorrow or eventually next week.
[quote=tunera;8717975]A few days of silence,
Golden goose or potty botty, odds are stacked, still nothing ventured, best of luck tunera
Good luck, you on the right track, small losses can mount up but as long as emotions don't take over and you stick to your plan, the big fishes are landed.
Be careful of trading the indices just yet, often you may not get the lot size you want and end up risking too much.

All the best, keep your feet on the ground and reach for the stars

Nic
Hey guys, i'm thinking about revive this thread, soo much new to share!
See you soon
Quoting tunera
Hey guys, i'm thinking about revive this thread, soo much new to share! See you soon
Interesting thread, I trade this way, I like the market to prove me wrong quickly. For this approach to work you need to have a very good stop placement, which is easier in trend continuation trades rather than trying to pick tops and bottoms.

Also looking for a risk reward from 1:3 to 1:10, more than that is hard to pick an individual swing of more than that, unless you have a 3 pips stop loss. My median stop loss is 6 pips
Great posts here.

In my experience, it can be a stressful way of trading :

1- You will have to accumulate a lot of small losses which may lessen your confidence.
2- You will be afraid to miss out that single trade that would give you this 1:30 trade, because like everybody knows, it's easy to spot it on a history chart afterwards, but it's much more difficult to see it in real time...
3- Once you get lucky and you are in, your main concern would be to know when you should bank your profits and run. Even if runs to achieve a 1:30 RR, it will not go straight to it. Since you will be using leverage (otherwise why bothers with this way of trading...), you will have huge open drawdowns that will impact your confidence. In this case, you will always close it at the wrong time and then blame yourself.
Don't give up on your dreams. Keep sleeping.
I tried trading with a tiny 7-10 pip stop loss for a while but unless you get the perfect entry price then you will almost certainly be stopped out. The problem I then had is that I then re-entered the trade but the problem then is that this is the same as entering with a 20 pips stop loss. So it didn't really work for me
First thing, even if price don't move in a straight line, and you want to use leverage, the drawdown is in check as long as you have a stoploss in place (especially if it's a 5 pips sl).

Which bring us to the next point, in order to not have 50 consecutive losses every winner, we need an extreme precise system, with a strong edge and that work.

The hard part of course is the system, there are not many systems out there that offer such high r:r ratios and will keep a high winning %.

I'm thinking about share something here in that regards, it's not easy, it's not simple, but it's surely real.
Strong edge that works + large position + Max SL 5 pips + move to BE "as soon as possible" + repeat
Session 7 AM to 10 AM GMT

example:

http://www.forexfactory.com/showthre...22#post9223922
Quoting Mingary
Strong edge that works + large position + Max SL 5 pips + move to BE "as soon as possible" + repeat Session 7 AM to 10 AM GMT example: http://www.forexfactory.com/showthre...22#post9223922
Eheh, very nice indeed, also if that's not my style, picking tops and buttons goes against my system (that is more technical and mechanical trend trading style).

But nice to see its working for u!
  • Post #51
  • Quote
  • Edited 6:25pm Feb 12, 2017 6:04pm | Edited 6:25pm
Read Flotsom's posts from 2009-2010... same kind of very simple but highly profitable trading... Low risk (10-pip hard stop)/High reward, low win rate (approx. 35%), high DD (approx. 40%). I was in contact with him during that time and he freely described to me his trading strategy in detail and the importance of psychology; what he "discovered" after spending years testing various methods. His goal was to quickly move his stop to BE and then let it ride for as long as possible. He had nothing to sell since he made his "living" completely from trading. As with Hanover, Flotsom was truly a great guy and never hesitated to answer my questions. Unfortunately my mindset didn't allow me to benefit on what he was telling me. Some of his posts are listed below. Enjoy...

http://www.forexfactory.com/showthre...51#post4276951
http://www.forexfactory.com/showthre...19#post4845219
http://www.forexfactory.com/showthre...96#post4842596
http://www.forexfactory.com/showthre...92#post3850392


Here is a PM that Flotsom sent to me in August of 2010....

Hi Dave, Apologies for such a delay in replying to you. I am currently on holiday in the south of France for 6 weeks and am not getting online very often.

The results of my hourly break out were actually almost identical to all other break out strategies. If I kept a hard stop loss and fixed take profit, the results are poor. However, if I have the hard stop loss and then use discretion to let a winning trade run once it moves in to profit, the results were favourable. i.e. don't have a 10 pip SL and 10 pip TP every hour. Instead have a 10 pip SL, and if it's a loss, it's just a loss, but if it moves in to profit, just let it run on for perhaps several hours. You will lose far more often than win, but the wins will out weight the losses. It's pretty much how I find all strategies. Having a fixed and pre-determined take profit is a mistake. I generally use a very (VERY) tight stop loss, and once I'm in profit I move up to break even as soon as possible and keep a very tight manual trailing stop loss initially, and as I gain greater profits I will widen my stop loss. So I may start out with a 10 pip trailing stop, but slowly widen it out to maybe 50 pips. I trade very small time frames.

My aha moment came after I disproved to myself all other theories and strategies. I spent basically a full year studying the widely accepted methods, and on close examination none of them held any verifiable or statistically proven facts. I initially was a big fan of Steve Nison and his candlesticks. But with detailed study I could see that they never worked more than 50% of the time. The same was true for support lines, resistance, fib levels, pivots etc. You can basically draw random lines anywhere on a chart and they will work just as often as any of the traditional and supposedly accurate methods. To me this proved that all the accepted norms were just fooling people. If they didn't work more than 50% of the time, they were no better than random.

So for me, it suddenly started to dawn on me that the method was irrelevant for success. It all came down to psychology and how I manage my risk, cut my losses and let profits run (easier said than done). I now enter the market almost completely randomly (but not quite) and I know and accept that I have more or less a 50% chance of being right or wrong. But I have now learned to let a winning trade play out longer and compensate for my losses.

I know it flies in the face of what everyone else on this forum is saying, but I challenge anyone to prove that any line, pattern, shape or anything else gives better than 50% odds of success. My attitude has always been that the majority of people lose at everything they do (not just trading) and the same majority are all doing the same thing and following the same conventional advice. To succeed you need to do something differently.

So for me it all comes down to my psychology and mind set. My ability to take a very large percentage of losses in comparison to my wins. If I trade 10 times in a day, I may lose 6 or 7 of them, but still come out ahead. This is very difficult to cope with mentally and I actually studied a lot about NLP (psychology - look it up on google) and even went as far as having mild hypnotherapy sessions to help me cope with the counter intuitive nature of learning to accept losing the majority of the time without giving up. It's very hard to do. Because psychology is so hard to change, is why I think so many people find trading so hard because they work on a method more than their mind because it is easier to change a method rather than their own mind set.
Quoting RondaRousey
I see you guys are trading smaller time frames. Trading small time frames is trading noise. It's for mugs. As soon as I read a post showing lower timeframes I know you are an amateur, a gambler and not a real trader.
Bollocks. There are million ways to trade the foolish charts. My dear professional, so far, after a century of trading, none is set as universal...
Maadik Hugiis. IQ 69.
Quoting RondaRousey
I see you guys are trading smaller time frames. Trading small time frames is trading noise. It's for mugs. As soon as I read a post showing lower timeframes I know you are an amateur, a gambler and not a real trader. Trading with small SL and TP often gets hit by noise, Market markers and slippage.


Fractal mate.
Quoting RondaRousey
{quote} lol good to hear from you my friend. you make me laugh. Charts should be simple why do traders have to complicate the chart?
In fact, I like your amusing posts, although I might sound the other way around... Charts are focus-bogus trick. The traders think it is real...
Maadik Hugiis. IQ 69.
Quoting gatorinla
{quote} made it now.. but instead of shorting 114.07.. i chose to wait for 115.61.. i may not get the entry.. but my stop is tiny against 115.62+1+spread. 114.07/115.37 may be considered normal before drop. but 115.61 was missed in the formation when it only got to 115.37 weeks back.. like 1.0620 eu was a minimal norm, so is 114.07 uj.. i may be wrong.. but eu 1.0590.5 and uj 115.61 are closer to risk. making my s/l tighter..or much smaller amount of risked pips.
tight..
Look Sharp/Trade Tight
  • Post #56
  • Quote
  • Edited 9:59am Feb 13, 2017 9:41am | Edited 9:59am
Let's see..

Attached Image (click to enlarge)
Click to Enlarge Name: USDJPYM1.png Size: 19 KB


(8.5 pips stop, not really super small but.. we take what charts give us)


Edit:
added another one:
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPYM1s.png Size: 18 KB

this one is 5pips stop.


so, first trade 8.5, second trade 5, total risking pips: 13.5 pips.

Curious to see where this will go (may fail as well)
Quoting MoneyZilla
{quote} In fact, I like your amusing posts, although I might sound the other way around... Charts are focus-bogus trick. The traders think it is real...
Charts are as real as you want them to be. You have to have a chart to trade, even if it is only in your mind. You take an entry, you have a stop and a TP. Those are numbers. So whether you depict those numbers or not, it is still a chart.
If you are good at something, never do it for free--Joker
Quoting PayTheLimit
{quote} tight..
Inserted Video
Working towards CME membership
Quoting tunera
First thing, even if price don't move in a straight line, and you want to use leverage, the drawdown is in check as long as you have a stoploss in place (especially if it's a 5 pips sl). Which bring us to the next point, in order to not have 50 consecutive losses every winner, we need an extreme precise system, with a strong edge and that work. The hard part of course is the system, there are not many systems out there that offer such high r:r ratios and will keep a high winning %. I'm thinking about share something here in that regards,...

price action, first move/new swing?
Quoting tunera
Let's see.. USDJPYM1.png;2185208 (8.5 pips stop, not really super small but.. we take what charts give us) Edit: added another one: USDJPYM1s.png;2185228 this one is 5pips stop. so, first trade 8.5, second trade 5, total risking pips: 13.5 pips. Curious to see where this will go (may fail as well) {image} {image}
That trades was closed at be, uj didn't go up as wished.

That is the sad part of small sl trades, if things don't work out exactly as planned, it just don't work.

And they may go as planned, but many times simply don't.

I will try another thing tomorrow, but no more small sl stuff
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