One of My Strategy.. Need Your Comments

[sadscorpion 10]

One of my Strategy .......Need comments to improve it together...

 

Basic Ground Rules Before any trade(3 rules must be followed)

 

rule#1:-

try to trade only during the londan and us session.

 

rule#2:-

make sure to watch a news calinder and stay away from trading before and after

news release.

 

rule#3:-

enter only on a clear strong trend.

a)indentify a current trend (remember-the trend is your frind.)

b)Ignore all signals against a current trend.

 

 

timeframe:- 5min and 15min to enter a trade and 1hour and 4hour to identify a trend.

pairs:- EU and GU (INCREASE ONE PAIR AFTER 50% GAIN IN CAPITAL).

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BASIC ENTRY RULES

lets Suppose one pair thats going strong down trend. (suppose= eurusd)

its last day open was 1.4500 after open it goes 60 pips high then 200 pips down.

keep in mind

(eurusd normal averge daily move is 90 to 180

hight impect news days 150 to 250

and 300 to 500pips after some weaks or month.)

next day it open 140 pips down from the previous day open.

after open it move up and down 50 pips in asian market or even more but when uk market

open it is 30 pips away from its open and we get a sell signal in the direction of strong trend

as i mention in above for

tp1=40 - 70 pips in down side. sl is also same.

(keep in mind that our entry is on the 5min and 15 min candle conformation and that is our entry points.)

we open a trade to get 15 pips that equal to 0.5% of our account equity.

if it goes postive then we get o.5% gain in our account.

 

if we get 15 pips that gud otherwise if goes aganst us then after

25 pips we open another with same tp.

if goes positive then we get total 45pips. (appr=1.5 gain in our equity)

from thr we again enter if our sl is previous day high or low is not hit point 2 above is allowing to enter

again in same point.

like this wise we trade as averaging on this manner.

 

1) enter for 15 pips. (0.5% at every tp hit)

2) after 25 pips against we enter again with same tp. (1.5% at every tp hit)

3) after 25 pips against we enter again with same tp. (3.6% at every tp hit)

 

4) after 25 pips against we enter to get out at average price. (0% gain)

5) after 25 pips against we enter to get out at average price. (0% gain)

6) double the postion at 25pips of first entry and out at average price. (0% gain)

 

 

++>> dont trade on before and after main news at least one hour before and after.

++>> dont trade if a pair moves 80 pips from open price.

++>> dont trade if u get 3% mean 6 trades in row in a pair.

++>> dont trade at possible retracement levesls points

++>> entry should be with 5min or 15min chart candlestck formation.

 

+>>> IF We follow the any other system that make 70% correct tp hit signals.

in simple rules

if we trade then out of ten we get 7 trades postive may be more or less.

7 out of 10.

7*60= 420

3*40= 120

but here if we get all the trades on time and enter on time but if we dont get in time and our

bad luck then our gain will be very low or may be in negative.

 

++>>>but if we trade like this then we get

in one pair we get 7 postive mean we can get (keep in mind tp is 15)

4 tredes in rows and in more volitile satuation even more than it.

if we get average 5 mean 5*15*7=525

and in some trades we get 2nd tp hit let suppose 3 trades.

we get average 3*45*7=945

in some cases we get 3rd tp hit let suppose one trade.

110*1*7=1540

 

in two cases we get 5 trades at breakeven average.

5*0*7=0

 

one trade out of that at loss is 550pips loss

loss

1*==150+125+100+75+50+50=550

total positive

3010-550=2460pips

 

++++++++++++++++++++++++++

what u says traders this is good strategy or not plz share your ideas to make this system more improved.

[stockprofessor 10]

I read & appreciated this post & it's useful.

[henryduncan12 10]

Your rule 2 and rule 3 is good but I think, there is some problem with rule 1. As most of the traders prefer their local time as well as day trade. So, they will not follow rule 1.

[RealDemo 10]

Have you tested this in any way, forward or backward?

 

Avoiding all news will have you sitting on the bench quite a lot especially during those two sessions. I tend to view news as market petrol. The market needs it to get where it's going, without it, like today for example, we end up going nowhere.

[Obsidian 10]

Your rule 2 and rule 3 is good but I think, there is some problem with rule 1. As most of the traders prefer their local time as well as day trade. So, they will not follow rule 1.

 

I moved to Asia so that I can be ready when London opens

[JSChicago 10]

Your rule 2 and rule 3 is good but I think, there is some problem with rule 1. As most of the traders prefer their local time as well as day trade. So, they will not follow rule 1.

 

Tell me about it. I have my alarm clock set to 1:30 AM (London opens 2:00 AM my time). But, while I would prefer to work normal (local) hours, I find that the London session and the London/US overlap provide the best opportunities to catch substantial EUR/USD moves.

 

My dream is to move to Dublin so that I can give up my 'vampire hours', drink good beer, and chase redheads.

[ratmpower 10]

Looks good on paper, but you never know how it turns out in practice. I suggest you test your strategy first with Virtual Stock Trading Site like http://www.strategyard.com/.

You can refine your strategy as you test them, or fork a new strategy from existing one by changing some parameters.

[fast 10]

One of my Strategy .......Need comments to improve it together...

I'll comment.

 

Basic Ground Rules Before any trade(3 rules must be followed)

Keep in the mind the difference between general guidelines and strict rules.

 

rule#1:-

try to trade only during the londan and us session.

I don't particularly have much to say on this except that for beginning traders, you should trade only during market hours until enough experience has been gained to do otherwise.

rule#2:-

make sure to watch a news calinder and stay away from trading before and after

news release.

That's a good idea for beginners, especially daytraders, for news trumps technicals, meaning the market can behave wildly, unexpectedly, and fast surrounding those times.

 

rule#3:-

enter only on a clear strong trend.

Makes sense, but keep in mind (as it can often be overlooked), the existence and direction of a trend (assuming there is a trend) is a whole nother discussion than whether or not any such trend is strong. Personally, I use moving averages to identify both the existence and direction of different trend types, but I use two different momentum indicators (but on the same subgraph) for identifying both short term and long term momentum shifts.

 

a)indentify a current trend (remember-the trend is your frind.)

That saying is a bit like telling half of a story. We know that a particular cycle in the market is a persistent transition between trending and not trending. For example, very often after a trend ends, a period of consolidation begins before a new trend develops. Some people often mistakenly refer to this by saying that the market is trending sideways, but a so-called sideways trend is not a trend at all. Because of this repeated cycle, we should not lose sight of the fact that although a trend can be your friend, it's not always your trend, for trends do not continue into perpetuity, and that brings rise to the saying that the trend is your friend until the end, but what kind of friend would you call that?

 

b)Ignore all signals against a current trend.[/quote[Absolutely not. Never ignore such signals, as they give us good clues that enable us to identify changes and placement in a trend. You sound like you're taking trend continuation trades, so always know the cycles and which of those cycles are waves and which retracement has gone and about to maybe come. Also, you need to look closely at your short term trend (assuming you're trading a longer term trend) to identify possible trend retracements.

 

timeframe:- 5min and 15min to enter a trade and 1hour and 4hour to identify a trend.

I like the ratio you have between your time frames. I don't understand what you mean about identifying trends. Also, with such a fast time frame, you might consider using tick charts instead of time charts.

 

As to the remainder of your post, my trading methodology is so different that I'm not even sure how to respond.