Well, this was the week that proved this system can work with proper money management, and may be questionable as a 100% mechanical system.
This week the EUR entry of 2548 triggered once the previous week's price rose above the target and came back down, however, the low was 2500 vs. the 2483 needed to reach the system's max T/P goal. If the trade was left completly on auto pilot, you would of lost the potential for 48 pips (minus spread), and had been stopped out with a 75 pip loss (+ spread).....in my opinion.....this should never happen......blow a potential 48 pip profit, trying to get to an arbitrary target only 17 pips away without moving the stop or using a trail........to me.........this was not a losing week for this method.
Same goes for the GBP......same speech....if left on auto pilot, you would of been spanked for a 109 pip loss (+ spread)!!! A shame, when there was up to 33 pips (minus spread) available once the target of 8613 would of triggered.
If we look at max potentials, the Eur trade could of yielded up to 48 pips (minus spread) with a max potential stop of 17 pips (+ spread)......you could of taken 20, 30, 40 pips with a 20-25 pip stop!!!
On the GBP trade, the stop would of needed to be a minimum of 9 + spread....20-30 pips with a 9+ stop....
Just pointing out this absurdity to emphasis why money management is so important!!
I would definitely use a larger stop for a weekly position, however, when I get into profit....I take it, or at least protect it!!!
I have got to apologize. I haven't looked at this thread for weeks. Your grasp of the rules is outstanding and I'm rapt that you want to trade with it. I always felt the WRM could be profitable but I realized quite quickly that it did not possess that one quality I craved: Simplicity.
In fact, I've realized that it is horrifically complex and is probably crying out for an excel formula(at the very least)
My own backtests have been manual and visual and it goes thru periods of profitabilty and periods of drawdown.
I know for a fact that simple, weekly systems based purely on price action can generate a lot of cash but I also think you can't be reliant on just one.
There aren't many one-trick ponies who survive in the forex long-term. You've got a have a bag of tricks. The only successful weekly systems I've ever created , don't throw up a lot of opportunities. I can be waiting weeks for a reliable set-up.
But no-one ever said this game is easy
Anyway, good luck with the WRM. I hope it turns you a tidy profit.
I have got to apologize. I haven't looked at this thread for weeks. Your grasp of the rules is outstanding and I'm rapt that you want to trade with it. I always felt the WRM could be profitable but I realized quite quickly that it did not possess that one quality I craved: Simplicity.
In fact, I've realized that it is horrifically complex and is probably crying out for an excel formula(at the very least)
My own backtests have been manual and visual and it goes thru periods of profitabilty and periods of drawdown.
I know for a fact that simple, weekly systems based purely on price action can generate a lot of cash but I also think you can't be reliant on just one.
There aren't many one-trick ponies who survive in the forex long-term. You've got a have a bag of tricks. The only successful weekly systems I've ever created , don't throw up a lot of opportunities. I can be waiting weeks for a reliable set-up.
But no-one ever said this game is easy
Anyway, good luck with the WRM. I hope it turns you a tidy profit.
Ken
Ignored
Agreed, this is just one extra tool in the toolbox for me. I'm more of an intraday trader who looks at weekly concepts as either a solid base, or a healthy bonus. Based on your original hopes, and above observations, this system is one that needs some active attention, but thus far, locking profit in without much stop loss risk has been very acheivable if you log some screen time as I do.......it would be a little less successful if on complete auto-pilot I think we agree?!
If you have any further advice on this or any other weekly idea, feel free to PM me?
3) Previous weeks range is less than last weeks range so it is a buy
4) Last days trading range: 1.8868-1.9002=132pips
5) Strike price: 1.8934 This is less than the close price so it must go negitive below then the order placed when it starts back up.
6) Limit: 1.9034
7) Stop: 1.8868
Good trading to all
Ignored
Darnell,
One correction I think I see.....the target entry should be the WEEKLY median, not Friday's median.....therefore, we should use the most recent week's median of 8837.
GBP/USD Long:
Projected Entry- 8837 (only enter if next weeks price retraces below target 1st)
T/P goal - 9002 (165 pips potential gain)
S/L max - 8662 (175 pips risk)
EUR/USD Short:
Projected Entry- 2706 (enter as soon as price goes down to target)
T/P goal - 2637 (69 pips potential gain)
S/L max - 2760 (54 pips risk) USD/JPY Long: Projected Entry- 117.92 (enter as soon as price goes up to target)
T/P goal - 118.39 (47 pips potential gain)
S/L max - 117.12 (80 pips risk) USD/CHF Long: Projected Entry- 1.2518 (enter as soon as price goes up to target) T/P goal - 1.2585 (67 pips potential gain) S/L max - 1.2467 (51 pips risk) One, and all, please check my assumptions and math to verify....
Darnell,
check out the journal factory for the new journal, weekly trading with Nips and Ropes. We are now providing the set up for 8 different pairs each week.
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Joined Aug 2006
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Status: lions 1 christians 0
|24 Posts
i read your method with interest and from your first post trading out and trading in to the median is basic pivots and works great in a ossicilating market which we have been in for about the past 3 weeks with the pound however before that we were in an upward trending market for 7 out of 8 weeks so you should have been waiting to get down to your lows of the previous week and taken it long from there trading with the trend its only as hard as you make it markets can only trend ossicilate or consolodate trend=S/R ossicilate=pivots consolidate sit on your hands
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Joined Aug 2006
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Status: lions 1 christians 0
|24 Posts
sorry i was looking on the monthly charts but the weekly charts say the same thing except osscillating x last 9 weeks uptrend 6 out of 7 weeks before that
