DislikedGreat! So one more pair is added to testing basket as well as one more broker (FXCM).
I'm trying to decrease my SL and move it to B/E ASAP but seems you're a brave man if to look at SL 100 2 bad trades and -400 pips from the equity (if you're going to use 2 lots). And TP1 as 40 pips seems a bit high..as for me we need to move SL to B/E as ASAP, 'cause we'are risking a lot with such huge SLs.
Please, don't get this as critics, it's just my vision over it. That's good that we'are going to test with different settings and values and perhaps will be able to compare our results and find the optimal way.
Keep all your good work up!
Regards,
TheThingIgnored
Hi Thing,
For PAPER TRADING AND TESTING your terrific "SIMPLE" . . . I intend to stick with the original SIMPLE system as outlined on Post #1. After all, that is what we are testing/developing (pass or fail)
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So . . .
My BUY rules for purposes of paper-trading/testing:
1) Daily Charts with NO Indicators
2) If price has 3 consecutive days where the Close is higher than the Open, on the OPEN of the 4th candle, Initiate a Buy Order.
3) Stop is 2 pips below the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips
ADD: EMA8, EMA12, EMA20 and EMA50 (for mkt trend ONLY)
ADD: NO SUNDAY BARS COUNT
ADD: INITIATE NO TRADES ON BIG NEWS DAYS
My Sell rules for purposes of paper-trading/testing:
1) Daily Charts with NO Indicators
2) If price has 3 consecutive days where the Close is lower than the Open, on the OPEN of the 4th candle, Initiate a Sell Order.
3) Stop is 2 pips above the previous candle, or 90 pips (whichever is lower)
4) Take Profit is in 2 steps...
a) Take half profit at 30 pips and move stop to break even
b) Take remaining profit at 100 pips
ADD: EMA8, EMA12, EMA20, EMA50 (for mkt trend ONLY)
ADD: NO SUNDAY BARS COUNT
ADD: INITIATE NO TRADES ON BIG NEWS DAYS
Will move SL to break-even as soon as possible 20-30 pips. TP levels may differ depending on pair being traded. For GBP/USD optimal TP is 39 pips and 80 pips.
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Remember, I am testing on paper. Nothing I do for several weeks will, IN ANY WAY, be live trading. Too much to learrn about how your SIMPLE three-bar trades work (in differing market conditions, etc.) Further, we may find that it will make us all rich! And, we may find that, with some small tweaks of rules, setups, etc., we can vastly improve your already GREAT system.
As we are ALL monitoring pretty much the same CORE pairings (GBP/JPY, GBP/USD, EUR/JPY,) we should ALL arrive at pretty much the same conclusions regarding trades on the 4th day . . . that is, "IF" this system has some internal logic to it. So, as these trends develop over the three days prior to trade day 4 (or not) perhaps, we should report our ideas/observations? Maybe, we can satisfy ourselves of the soundness of this system very rapidly . . . we might also devise additional SIMPLE ideas for the tougher setups. Just my thoughts.
We could communicate off-line from this FORUM (e-mail, etc.) However, if people want to keep their work to themselves . . . that's more than OK too!
Would like to hear from others on this (pro and con)
Regards, K