My Own Made Trading System

Pipsaholic

Pipsaholic

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Hi,

I hope someone more experienced can guide me to constructing a decent simple trading system.

I am an intra-day trader mostly trading 15 min timeframes on the Eur/Usd only. I look at the swissy and cable for correlations only.

My main trading analysis is based on previous supply and demand zones on the 4/1/30 min timeframes I look for confluences.

I go with the trend always. I use a point based rating system which I base my risk to reward ratio on. The more evidence I have to enter a trade the more I risk but no more than 3% of total account. I look for 2 profit levels 1 at 20 points and 2nd at 40 points moving my stop to breakeven after 20 points as capital preservation is my number 1 goal even if it takes longer to become profitable.

I wait for a rally in price and wait for a double top/bottom enter on a retest of the high/low's at the necklines and look for candlestick formations. I use Fibonacci cluster zones from the W/D/4/1 and also pivot clusters I increase/lower my risk when I see weekly or monthly pivots approaching price.

I use the 5 min chart to get a more precise entry/exit/stop price and warning for the 15 min timeframe. I use the 1/4 for the current trend look at the last few candle bars.

My arsenal of tools are: harmonics ABCD, Psychological Levels RSI, MACD, MA's, Trend lines, Pin Bar Reversals, Bolly Bands, Alligator.

I also use a couple other systems within my own strategy if they confirm if I add them on if they don’t I leave them. I use the Pip Accumulator with trend probability, Siddus System, SRS Trend Rider and Ultra Trend line system as extras.

I do not clog my chart up with all these indicators and price action points but keep them separate to make it naked as possible.

Personally, I like the idea of going total naked using support and resistance only, but it makes me shiver that I haven't done my analysis properly I am comfortable on the idea that there is a confluence/cluster zones rather than only S&R zones.

The only areas that I feel I can improve on is moving to the 4 hour charts I would like to, but I can't wait that long I would rather be stopped out in 1 hour than waiting 4 hours for a winner sorry but that's me.

I am reading as much as I can about price action and watching tutorials learning new things, but I am at my wits end about to pack it all in as it’s not working for some reason yet I have a glimmer of hope as my account is not blown up yet. I do get burnt out on most days with information tried to take a back step but trading is far too attractive to stay away the computer for a few days.

If anyone can add or erase anything that you feel will help my system feel free too as I am out of ideas.

Thanks for reading.
 
Pipsaholic said:
( . )
Click to expand...

There ya go, Ive simplified it quite a bit. Now all you are left with is a dot. I want you to take this dot and times it by 2, thus making 2 dots. Now what you have to do is place 1 dot where you enter and the other where you reasonably expect price could go. Set a trade off and put in a limit take profit order. Walk away from the computer and check periodically to see if your limit has been hit.
 
Pipsaholic

What a mish-mash you have there. You've listed a bunch of questionable indicators and then made a reference to a naked chart.

Here's your problem - you have no real understanding of the markets or why they move up & down in the short term.

Hence, you will keep adding things from trading books/web sites in the hope that this will somehow lead you to a magical combination of all these things that will lead you to a profit.

Based on what you have there, my recommendation is you start again, from scratch. The first thing you need to think about is why do the markets move up and down. Is it always random? Sometimes random? Always predictable? Sometimes predictable?

The path you are on will not lead to profit, although it is the path that many people take.

Frustrating, isn't it?

DT
 
Walk away with no stops? A question, not a criticism- I have used a stop, always, when I walk away. When I'm watching, I`m inclined to wait before I put it on but, sometimes, I've been surprised by spikes.

Maybe I'm wrong, though, but tell me why.
 
Pipsaholic said:
Hi,

I hope someone more experienced can guide me to constructing a decent simple trading system.

I am an intra-day trader mostly trading 15 min timeframes on the Eur/Usd only. I look at the swissy and cable for correlations only.

My main trading analysis is based on previous supply and demand zones on the 4/1/30 min timeframes I look for confluences.

I go with the trend always. I use a point based rating system which I base my risk to reward ratio on. The more evidence I have to enter a trade the more I risk but no more than 3% of total account. I look for 2 profit levels 1 at 20 points and 2nd at 40 points moving my stop to breakeven after 20 points as capital preservation is my number 1 goal even if it takes longer to become profitable.

I wait for a rally in price and wait for a double top/bottom enter on a retest of the high/low's at the necklines and look for candlestick formations. I use Fibonacci cluster zones from the W/D/4/1 and also pivot clusters I increase/lower my risk when I see weekly or monthly pivots approaching price.

I use the 5 min chart to get a more precise entry/exit/stop price and warning for the 15 min timeframe. I use the 1/4 for the current trend look at the last few candle bars.

My arsenal of tools are: harmonics ABCD, Psychological Levels RSI, MACD, MA's, Trend lines, Pin Bar Reversals, Bolly Bands, Alligator.

I also use a couple other systems within my own strategy if they confirm if I add them on if they don’t I leave them. I use the Pip Accumulator with trend probability, Siddus System, SRS Trend Rider and Ultra Trend line system as extras.

I do not clog my chart up with all these indicators and price action points but keep them separate to make it naked as possible.

Personally, I like the idea of going total naked using support and resistance only, but it makes me shiver that I haven't done my analysis properly I am comfortable on the idea that there is a confluence/cluster zones rather than only S&R zones.

The only areas that I feel I can improve on is moving to the 4 hour charts I would like to, but I can't wait that long I would rather be stopped out in 1 hour than waiting 4 hours for a winner sorry but that's me.

I am reading as much as I can about price action and watching tutorials learning new things, but I am at my wits end about to pack it all in as it’s not working for some reason yet I have a glimmer of hope as my account is not blown up yet. I do get burnt out on most days with information tried to take a back step but trading is far too attractive to stay away the computer for a few days.

If anyone can add or erase anything that you feel will help my system feel free too as I am out of ideas.

Thanks for reading.
Click to expand...

DT is right. You have a mass of indicators, there, and your mind is bogged down with the contents of too many books.

Before you work out how the market works, you should work out why the indicators do. When you understand that they depend on what the market tells them, perhaps, you will throw them out. I say "perhaps" because I see that experienced traders do hang on to their favourites.

My favourite (not proven to be fantastically great) is the Bollinger. Because it gives me accepable overbought signals. How that is constructed, though, depends on personal judgement.Like all of them, they depend on averages, which are history.
 
counter_violent said:
There ya go, Ive simplified it quite a bit. Now all you are left with is a dot. I want you to take this dot and times it by 2, thus making 2 dots. Now what you have to do is place 1 dot where you enter and the other where you reasonably expect price could go. Set a trade off and put in a limit take profit order. Walk away from the computer and check periodically to see if your limit has been hit.
Click to expand...

This is heaven sent.!! Do we have to pay a fee for this........?
 
Pips,
All the time you are looking for a perfect system you are learning nothing about the markets!!!!

however, should you want a system, as others have said there are far too many indicators for it to work IMHO. The more indis you have the less the edge is and the closer to a zero sum equation. Youd be better with a simple period moving average and build a system around that.
 
My indicators are just extras which most of the time I do not use. I disagree with people who state that indicators are all useless it’s the type of indicators and how you use them and their settings. Indicators have helped me greatly understanding the market dynamics overbought/oversold levels, the thing is indicators do not work 100% of the time and that the problem people have they want something that works 100% and reality is nothing works, but if a percentage of these indicators work let’s say 10% does then that adds a little weight and confluence to price action I believe it does. I am going to simplify my system, but not going to abandon it as I find it fits my personality as most system on here are complicated and outdated.
 
Pipsaholic said:
My indicators are just extras which most of the time I do not use. I disagree with people who state that indicators are all useless it’s the type of indicators and how you use them and their settings. Indicators have helped me greatly understanding the market dynamics overbought/oversold levels, the thing is indicators do not work 100% of the time and that the problem people have they want something that works 100% and reality is nothing works, but if a percentage of these indicators work let’s say 10% does then that adds a little weight and confluence to price action I believe it does. I am going to simplify my system, but not going to abandon it as I find it fits my personality as most system on here are complicated and outdated.
Click to expand...

You are clearly not ready to make any money from the markets.
It's not a question of all indicators being useless, but more a question of what do any of these indicators add?

So please take your indicators one by one, add some chart examples and tell us what it is that indicators add that cannot be seen by the price action alone.
 
counter_violent said:
You are clearly not ready to make any money from the markets.
It's not a question of all indicators being useless, but more a question of what do any of these indicators add?

So please take your indicators one by one, add some chart examples and tell us what it is that indicators add that cannot be seen by the price action alone.
Click to expand...

I thought you were going to give up !


http://www.trade2win.com/boards/forex-discussion/140488-about-give-up.html#post1739298

Having read the above link and this thread........FFS give up before you become terminally impecunious:eek:
 
Pipsaholic said:
My indicators are just extras which most of the time I do not use. I disagree with people who state that indicators are all useless it’s the type of indicators and how you use them and their settings. Indicators have helped me greatly understanding the market dynamics overbought/oversold levels, the thing is indicators do not work 100% of the time and that the problem people have they want something that works 100% and reality is nothing works, but if a percentage of these indicators work let’s say 10% does then that adds a little weight and confluence to price action I believe it does. I am going to simplify my system, but not going to abandon it as I find it fits my personality as most system on here are complicated and outdated.
Click to expand...

Overbought/oversold are figments of someone's imagination.

As CV says - please take the floor and show us what just 1 of your indicators add.

Just 'cause Alexander Elder says it's good don't make it so.
 
Pipsaholic said:
My indicators are just extras which most of the time I do not use. I disagree with people who state that indicators are all useless it’s the type of indicators and how you use them and their settings. Indicators have helped me greatly understanding the market dynamics overbought/oversold levels, the thing is indicators do not work 100% of the time and that the problem people have they want something that works 100% and reality is nothing works, but if a percentage of these indicators work let’s say 10% does then that adds a little weight and confluence to price action I believe it does. I am going to simplify my system, but not going to abandon it as I find it fits my personality as most system on here are complicated and outdated.
Click to expand...

Pipasholic

You must have started more threads on T2W than any other member, you've fallen for every scam out there from forex robots to millionaire mentors eg Loz Lawn. Do yourself a favour and forget about trading, you are wasting your time and money.
 
Edit: you've started 73 threads, that's probably 73 get rich quick indicator threads or 'why does the Norwegian Krone move so much' threads. Its more than enough to know that you're not going to find the easy answers you need.
 
pipsaholic. you sound like you have the 'need to trade'. many new traders me included suffered from this when starting out. Having the 'need to trade' also goes hand in hand with 'needing to trade real money'. I have traded with indicators in the past and haven't found any success. I started to find success only when I ditched all indicators and moved up the time frames.

remember the aim is to make money not to trade - if you don't understand this best give up now.

If you cannot trade profitably on a demo account for 3 months on the 4 hour time frames and above then you will NEVER be able to trade real money profitably on the lower time frames.

People will come back and say 'I have to have some money on the line', I know as I was one of them so you start back at your £1 per pip and you still lose. Discipline yourself and your mind to demo trade for 3 months minimum (6 months preferred) and only once you have made 3 consecutive months profit switch to small stakes live account reverting to demo if you have a losing week. Then you get the people say 'it's different with real money'. Of course it is but trading £1 per pip and £1000 per pip is also wildly different, I can assure you that you will be looking to get your stop to b/e quicker on the larger account size.

There is a ton of useless information out there which you are absorbing. Every piece your absorb you are damaging your mindset and these habits have to be un-learnt if you are ever to be profitable.

My advice switch to daily candles only, strictly no indicators then start learning some price action set ups that repeat and repeat and repeat.

Very few people can successfully trade the small timeframes, the people I have met who can are exceptionally disciplined and intelligent people, and have all had screen time 5 years+ and it must be the right screen time, 1 year of bad screen time probably takes another 2 years of decent screentime to erase.
 
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counter_violent said:
You are clearly not ready to make any money from the markets.
It's not a question of all indicators being useless, but more a question of what do any of these indicators add?

So please take your indicators one by one, add some chart examples and tell us what it is that indicators add that cannot be seen by the price action alone.
Click to expand...

Yes, I am ready to make money. I didn't say I soley used indicators I hate them but they help imo for new traders to view market structure.

Okay your looking for a gartley patterns on several currencies some appear some dont but you decide to leave the indicator in the bin you spend hours drawing fibs and possible errors by the time you see price already has moved a chunk rather than using the indicator spotting it and putting it away and doing your own price action anaylsis. Indicators do help outside trading cars, pilots, solar system has indicators.

neil said:
I thought you were going to give up !


http://www.trade2win.com/boards/forex-discussion/140488-about-give-up.html#post1739298


Having read the above link and this thread........FFS give up before you become terminally impecunious:eek:
Click to expand...


Well, I haven't happy son? Say, something constructive for once.

DionysusToast said:
Overbought/oversold are figments of someone's imagination.

As CV says - please take the floor and show us what just 1 of your indicators add.

Just 'cause Alexander Elder says it's good don't make it so.
Click to expand...

What the hell on planet earth has Alexander Elder got to do with this conversation I didn't even mention him bolloks.

pboyles said:
Pipasholic

You must have started more threads on T2W than any other member, you've fallen for every scam out there from forex robots to millionaire mentors eg Loz Lawn. Do yourself a favour and forget about trading, you are wasting your time and money.
Click to expand...

Where does it say in the rules that I cannot post several threads isn't that what a discussion forum is about your excellency. Fallen for every scam what are you on about.Never used a robot.

pboyles said:
Edit: you've started 73 threads, that's probably 73 get rich quick indicator threads or 'why does the Norwegian Krone move so much' threads. Its more than enough to know that you're not going to find the easy answers you need.
Click to expand...

Your wrong you haven't checked why dont you?

MajorDutch said:
pipsaholic. you sound like you have the 'need to trade'. many new traders me included suffered from this when starting out. Having the 'need to trade' also goes hand in hand with 'needing to trade real money'. I have traded with indicators in the past and haven't found any success. I started to find success only when I ditched all indicators and moved up the time frames.

remember the aim is to make money not to trade - if you don't understand this best give up now.

If you cannot trade profitably on a demo account for 3 months on the 4 hour time frames and above then you will NEVER be able to trade real money profitably on the lower time frames.

People will come back and say 'I have to have some money on the line', I know as I was one of them so you start back at your £1 per pip and you still lose. Discipline yourself and your mind to demo trade for 3 months minimum (6 months preferred) and only once you have made 3 consecutive months profit switch to small stakes live account reverting to demo if you have a losing week. Then you get the people say 'it's different with real money'. Of course it is but trading £1 per pip and £1000 per pip is also wildly different, I can assure you that you will be looking to get your stop to b/e quicker on the larger account size.

There is a ton of useless information out there which you are absorbing. Every piece your absorb you are damaging your mindset and these habits have to be un-learnt if you are ever to be profitable.

My advice switch to daily candles only, strictly no indicators then start learning some price action set ups that repeat and repeat and repeat.

Very few people can successfully trade the small timeframes, the people I have met who can are exceptionally disciplined and intelligent people, and have all had screen time 5 years+ and it must be the right screen time, 1 year of bad screen time probably takes another 2 years of decent screentime to erase.
Click to expand...

At last a decent trader looking to help out who is not biased. I agree I need to move up timeframes to the daily. I have been successful demo trading for 90 days and has low drawdown, which lead me to a live account trading small lot sizes. The fact my system stayed the same the only thing that would be different would be it was earlier in the year on demo and live is last few months. Yes, I agree with useless info out there, but I feel you need to filter it out and use the decent info to your advantage to create your edge in trading. That's interesting about the smaller timeframes to my understanding I thought it was all the same if you kept money/risk management the same. Thanks for the info it helps.
 
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