OzFx System :) 100-800 Pips Per Trade

[HAL9000]

	Quote:	email
	Just let this fellow explain his system ...

Hi email,

I agree so far.

Hal

P.S.: I also try to be polite. (Just in case that your post should be related to me.)

[thrunner]

Welcome to the forum, O Z,
Thanks for the thread and posts. It is always nice to see a successful trader posting with bravado on some tips of the trade to a room full of skeptics . The skeptics would say this is simply another moving average following system, pretty much like 90% of the systems out there. It is not bad, but the devil is always in the details, which I hope to provide with some analysis below.
The only objection one may bring up is that there is some discretion in this system, for example:

	Quote:	OzFx
	If you choose to do back-testing then take special care for signals from late November to end of Dec. Low volume during this time of the year creates wild swings.

Well, you can't really pick and choose time periods in a system without being more specific in the details. For example, is the system going to skip the holidays or the month of December? or how do you quantify volume in Forex? which doesn't report volumes.

There were also times when trades were exited without being stopped or reached target by trader's discretion.

Attached please find data on a strategy analysis of one interpretation of the OzFx System using Tradestation. The strategy employs a Lebeau trailing stop instead of the money management as presented above. The attached IE mht file (compressed as rar) showed that overall, trading 1 lot, the strategy is good with most long trades for the EURJPY, but it is not profitable for short trades. The SMA 200 filter was not shown, but if included, would not have improved the short trades significantly.

Thanks again for posting the OzFx system. It shows that even a fairly simple moving average following system can be profitable if taken with the proper discipline of money management.

A copy of the TS EL Acceleration Oscillator is also attached.

[OzFx]

	Quote:	thrunner
	Welcome to the forum, O Z, Thanks for the thread and posts. It is always nice to see a successful trader posting with bravado on some tips of the trade to a room full of skeptics . The skeptics would say this is simply another moving average following system, pretty much like 90% of the systems out there. It is not bad, but the devil is always in the details, which I hope to provide with some analysis below. The only objection one may bring up is that there is some discretion in this system, for example: Well, you can't really pick and choose time periods in a system without being more specific in the details. For example, is the system going to skip the holidays or the month of December? or how do you quantify volume in Forex? which doesn't report volumes. There were also times when trades were exited without being stopped or reached target by trader's discretion. Attached please find data on a strategy analysis of one interpretation of the OzFx System using Tradestation. The strategy employs a Lebeau trailing stop instead of the money management as presented above. The attached IE mht file (compressed as rar) showed that overall, trading 1 lot, the strategy is good with most long trades for the EURJPY, but it is not profitable for short trades. The SMA 200 filter was not shown, but if included, would not have improved the short trades significantly. Thanks again for posting the OzFx system. It shows that even a fairly simple moving average following system can be profitable if taken with the proper discipline of money management. A copy of the TS EL Acceleration Oscillator is also attached.

Hi Thrunner,
It is nice to hear from you and I appreciate your comments. During Christmas time I would say to trade with less lots and only on strong signals. This applies to any other holiday period.

Cheers,
OzFx

[OzFx]

Hello Friends,

What a great week we had. We banked a total of +550 pips. Two of our previous trades from week before reached +300 each and two from this week reached +100 and few +50. Here is the summary of the trades:

1. EUR/CAD---Closed ( from week before) --- +300
2. EUR/USD---Open ( from week before) -----Locked +200 Currently at +270
3. CAD/JPY--- Open --------------------- ----Locked +100 Currently at +42
4. GBP/USD---Closed ------------------------ +100
5. USD/JPY---Open --------------------------Locked +50 Currently at +23
6. EUR/GBP--- Open-------------------------Locked +50 Currently at +44
7. EUR/AUD---Closed ----------------------- +50
8. CHF/JPY--- Open------------------------- Currently at -38

Total for the month: +1070. So far we have 32/37 successful trades

Please note that we are trading on daily charts and there are times when we see pullbacks in prices before it goes in our favor. Most of the time 100 pip Stop Loss works fine but in some cases it won't work and thats why we came up with ASL. Read ASL to learn how to put smarter SL.

I also want to let you know that I'll away for next three days on business/holiday trip and won't be able to send email alerts. I would still manage my open positions and would report profit/loss when I come back. Perhaps it is good time for everyone to practice on their own

Have a great weekend
Oz

[js1257]

OzFx thanks for coming back and posting your results. It is good to see and an inspiration to see that money can be made. Don't worry about what other people say in their postings. They are probably not making money.

[thrunner]

Thanks for the update, O Z.
The Bill Williams Awesome Oscillator is not well known in the TS circle, but it seems to be a staple with Metatraders. Code listed below is a similar system without the use of stochastics, using the Awesome Oscillator and Parabolic SAR stops. Perhaps those who use Metatrader could report on the result of this similar system:

/*[[ Description: Awesome Scalper V1.3 Awesome Oscillator auto Trader for 15 minutes charts Name := 2Extreme4U - Awesome Scalper 1.3 Author := 2Extreme4U Link := www.omniscienttrader.com Notes := Scalping expert/Trend follower Lots := 1.00 Stop Loss := 25 Take Profit := 50 Trailing Stop := 15 ]]*/ ///////////////////////////////////////////////////// // Defines ///////////////////////////////////////////////////// Defines: Slippage(5); // Slippage Defines: EMA1(11); // EMA 10 Defines: PSARStep(0.0150); // Parabolic SAR Step Defines: PSARMaximum(0.2000); // Parabolic SAR Maximum Defines: PrimaryTarget(29); // Primary target to close 1 lot Defines: BreakEvenSL(11); // Number of points made before the stop is moved to breakeven Defines: TradesPerCurrency(1); // Number of lots to trade ///////////////////////////////////////////////////// // Variables ///////////////////////////////////////////////////// var: EMA101(0), EMA102(0); // EMA 10 Values var: Psar(0), PsarP(0); // Parabolic SAR Value var: Awesome(0), AwesomeP(0), AwesomePP(0); // Awesome Occillator Value var: Accel(0), AccelP(1); // Accelerator Occillator Value var: OpenSell(0); // Sell Trades Counter var: OpenBuy(0); // Buy Trades Counter var: PriceOpen(0); // Price Open var: I(0); // Misc Counter var: Mode(0); // Squirl the Mode variable for multiple use ///////////////////////////////////////////////// // Main Script Conditions ///////////////////////////////////////////////// If Curtime - LastTradeTime < 5 then Exit; If FreeMargin < 500 then Exit; ///////////////////////////////////////////////////// // Calculations / Setting Values ///////////////////////////////////////////////////// OpenSell = 0; OpenBuy = 0; for I = 1 to TotalTrades { Mode = ord(I, VAL_TYPE); if ord(I, VAL_SYMBOL) == Symbol then { //Calculates how many Sell we have for the current Symbol if Mode == OP_SELL then { OpenSell++; }; //Calculates how many Buy we have for the current Symbol if Mode == OP_BUY then { OpenBuy++; }; }; }; Awesome = iAO(0); AwesomeP = iAO(1); AwesomePP = iAO(2); Accel = iAC(0); AccelP = iAC(1); Psar = iSAR(PSARStep, PSARMaximum, 0); PsarP = iSAR(PSARStep, PSARMaximum, 1); ///////////////////////////////////////////////// // Comment on the chart ///////////////////////////////////////////////// ///////////////////////////////////////////////// // Long/Short Trade Opening ///////////////////////////////////////////////// If OpenBuy < TradesPerCurrency then { // Buy 4 points higher than last candle close PriceOpen = Close[1] + 4 * Point; If Awesome > 0 and AwesomeP > 0 and Awesome > AwesomeP and AwesomePP < 0 and Accel > AccelP and Psar < Ask then { if High[0] >= High[1] then { Alert(Symbol, " BUY ALERT. Awesome Scalper. Buy at ", PriceOpen, " or better."); if Ask <= PriceOpen then { SetOrder(OP_BUY, Lots, Ask, Slippage, Psar, Ask + TakeProfit * Point , BLUE); Exit; }; }; }; }; If OpenSell < TradesPerCurrency then { // Buy 4 points lower than last candle close PriceOpen = Close[1] - 4 * Point; If Awesome < 0 and AwesomeP < 0 and AwesomePP > 0 and Accel < AccelP and Psar > Bid then { If Low[0] <= Low[1] then { Alert(Symbol, " SELL ALERT. Awesome Scalper. Sell at ", PriceOpen, " or better."); if Bid >= PriceOpen then { SetOrder(OP_SELL, Lots, Bid, Slippage, Psar, Bid - TakeProfit * Point, RED); Exit; }; }; }; }; ///////////////////////////////////////////////// // Trade Management ///////////////////////////////////////////////// for I = 1 to TotalTrades { Mode = ord(I, VAL_TYPE); if ord(I, VAL_SYMBOL) == Symbol then { If OpenBuy > 0 then { //If Primary target is met, close half play and move stop to 0 for other lot. if (Bid - ord(I, VAL_OPENPRICE)) >= PrimaryTarget * Point then { Alert("Primary Target met. BID = " + Bid + ". Closing order at market for " + Symbol + " on " + Period + " Period."); CloseOrder(ord(I, VAL_TICKET), ord(I, VAL_LOTS), Bid, Slippage, Orange); Exit; }; // PSAR Stop if Psar > PsarP and ord(I, VAL_STOPLOSS) != Psar and (Bid - Psar >= 4) and (Psar < Bid) then { ModifyOrder(ord(I, VAL_TICKET), ord(I, VAL_OPENPRICE), Psar, ord(I, VAL_TAKEPROFIT), BlueViolet); Exit; }; // If 10 pips profit, move Stop to BreakEven if bid - ord(I, VAL_OPENPRICE) >= BreakEvenSL * Point and ord(I, VAL_STOPLOSS) < ord(I, VAL_OPENPRICE)) then { ModifyOrder(ord(I, VAL_TICKET), ord(I, VAL_OPENPRICE), ord(I, VAL_OPENPRICE), ord(I, VAL_TAKEPROFIT), Cyan); Exit; }; /* // Psar has changed direction so we want to exit at breakeven if psar > Bid and ceil(ord(i, VAL_OPENPRICE)*10000) != ceil(ord(I, VAL_TAKEPROFIT)*10000) then { ModifyOrder(ord(I, VAL_TICKET), ord(I, VAL_OPENPRICE), ord(I, VAL_OPENPRICE), ord(I, VAL_OPENPRICE), Orange); Exit; }; */ }; If OpenSell > 0 then { //If Primary target is met, close half play and move stop to 0 for other lot. if (ord(I, VAL_OPENPRICE) - Ask) >= PrimaryTarget * Point then { Alert("Primary Target met. Ask = " + Ask + ". Closing order at market for " + Symbol + " on " + Period + " Period."); CloseOrder(ord(I, VAL_TICKET), ord(I, VAL_LOTS), Ask, Slippage, Orange); Exit; }; // Psar Stop if (Psar < PsarP) and (ord(i, VAL_STOPLOSS) != Psar) and (Psar - Ask >= 4) and (Psar > Ask) then { ModifyOrder(ord(I, VAL_TICKET), ord(I, VAL_OPENPRICE), Psar, ord(I, VAL_TAKEPROFIT), BlueViolet); Exit; }; // If 10 pips profit, move Stop to BreakEven if ord(I, VAL_OPENPRICE) - Ask >= BreakEvenSL * Point and ord(I, VAL_STOPLOSS) > ord(I, VAL_OPENPRICE)) then { ModifyOrder(ord(I, VAL_TICKET), ord(I, VAL_OPENPRICE), ord(I, VAL_OPENPRICE), ord(I, VAL_TAKEPROFIT), Cyan); Exit; }; /* // Psar has changed direction so we want to exit at breakeven if psar < Ask and ceil(ord(i, VAL_OPENPRICE)*10000) != ceil(ord(I, VAL_TAKEPROFIT)*10000) then { ModifyOrder(ord(I, VAL_TICKET), ord(I, VAL_OPENPRICE), ord(I, VAL_OPENPRICE), ord(I, VAL_OPENPRICE), Orange); Exit; }; */ }; }; };

[OzFx]

Hello Friends,


It is good to be back home. I had a nice short vacation and I am so glad to see that people have kept the forums busy and alive in the meantime. I’d loads of email/PMs to reply back and I hope everyone received the reply. I also tried my best to read every single post on the forums and reply where ever I could. If I’ve missed out on anyone then please send me an email and I’ll reply back to you.


When I left we had 5 trades open, out of which EUR/USD performed just great. I closed it at +445 pips at 1.5000. If you are still in the trade then you should be looking at +530 pips right now.


EUR/GBP second lot closed at +100, currently at +130.
CAD/JPY closed at BE after making +100.
CHF/JPY got closed out at -150.
And finally USD/JPY closed out at BE after making +50


GBP/CHF trade from today had already made +50 and I’ve moved the Stop Loss to Break Even

Total for the month now is +1265 and so far we have 33/39 successful trades.


Oz

[OzFx]

Hello Friends,

Trades from this morning are all going in our favor big time. So far we already have banked +300 pips plus more to come

Currently Open Positions:

1. EUR/JPY - Short - 2nd lot closed at +100
2. AUD/JPY - Short - 2nd lot closed at +100
3. NZD/JPY - Short - 1st lot closed at +100
4. EUR/GBP - Long - Already had 3rd lot closed at +150

Month Total: +1615

[cowpip]

OzFx, congratulations on finding something that works for you. You apparently have the edge that so many seek. Way to go!

If I may make one suggestion - it would be more realistic to people reading your thread if you converted your "total pips" earned into pips equivalent to the full size you are using. For example, if you are trading 7 lots and booked profits as follows:

+50 on first lot,
+100 on second lot
+150 on third lot
+200 on fourth lot
+300 on fifth lot
+400 on sixth lot
+500 on seventh lot

Since you are using 1/7th of your entire position in each scaleout:

size = 1/7

The actual total amount earned as if you held the full 7 lots to the very end would be:

(50*size) + (100*size) + (150*size) + (200 * size) + (300 * size) + (400 * size) + (500 * size)

which equals 242.8 pips of profit on 7 full lots.

Please correct me if I'm wrong, but the method you are using simply adds up all of the pip sizes of the various scale-outs (in this case, it would be: 50+100+150+200+300+400+50 0 = 1700 pips).

Stating that your total pip profits is 1700 pips sounds a lot more impressive than 242.8 pips, but it is misleading (particularly to people new to forex).

I personally have always preferred people who have computed the total pip profit or loss that is translated into equivalent full-size positions (if we know the size used). It's far more realistic.

Just a thought...

[OzFx]

Hello friends,

As soon as I finished writing my previous post prices move incredibly in our favor banking us total of +450 pips
Currently Open Positions:

1. EUR/JPY - Short - 3rd lot closed at +150
2. AUD/JPY - Short - 3rd lot closed at +150
3. NZD/JPY - Short - 3rd lot closed at +150
4. EUR/GBP - Long - Already had 3rd lot closed at +150

Month Total: +1765