20 pips a day keeps stress away

[tenbobtrader]

20 pips per day increases stress !

your asking the market to pay for the fur coat your going to give to the Mrs for X mas

and it will prove to be an expensive coat !

Happy Christmas and new year :clover:

I like the idea of making 20pips a day, it will defiantly keep the doctor away

Bhav

ye it sounds like a good idea to many

http://www.trade2win.com/boards/fir...i-practice-mock-trading-test.html#post1012818

 

[bedsit]

Hi tenbobtrader,
Thank you for the attached files – good stuff.Long read, but worth the effort.
I would like to recommend them to other members to study before trading in January.

 

[bashida]

Do you find it stressful to watch charts all day?
If so I may have a system for you.
You don't need any indicators or any mambo jumbo.
Observe GBPUSD between 12:00 and 14:15. Buy at the high or sell at the low of the range (once price breaks out of the range).
Stop loss should be same as your profit target – 20pips.
Check it at 22:00 and see what happened.
At the beginning should start small trades, or on a demo account. If happy with the system go for bigger trades.
Be prepared for losses – when trading you are guessing probable outcome (no certainties in trading business).
Please try it small first and let me know if you are successful.

Hi Bedsit,

Thanks for your advice. Are you working according to GMT or some other time zone ? Secondly, Do you actually mean buy at the low and sell at the high of the range or as you have written?

bashida

 

[bedsit]

Hi Bashida,
please read my post #37.
Another thing about this system – I'm still experimenting with it and probably wouldn't use it till January (difficult to know if it's any good at the moment)

PS This is a break out system, so if price breaks up (from the range) I buy and vice versa.

 

[bedsit]

Couldn't resist checking the chart – that's ranging market IMO.
Doesn't look promising. Upside limit to about 20 pips, downside some potential (within the range).
Wouldn't do trading today (don't feel like gambling)

 

[be-positive]

bedsit are you trading this today ???

 

[bedsit]

No – as I said before no point trading before January. I don't know if next week is too early (When is the normal market back? When are all the big players back?)
Just checked the chart – nice move down, but I think according to the system was tiny break upside – so it could have been a loss of 20pips.
PS From my chart first break was less than a pip. Maybe system needs some fine tuning (allow for few pips breathing space) Hope there are some volunteers to give suggestions based on research.

 

[foredog]

(allow for few pips breathing space)

In normal market conditions price will usually break a level and push away, the only reason price is messing around at the moment is because the only people trading are the ones forced into work as the markets are open and the punters.

In my opinion " breathing space" just means taking bigger losses.

 

[bedsit]

I wouldn't go wild with breathing space – maybe 1 pip extra is not a big thing.

Well my plan is to stick to the system from 4th of Jan (if that's the date European and US market are back to normal opening hours)

I am willing to trade only £1 per pip, so my risk is £20 per trade (or £100 for 5 consecutive losses in a week) If it goes wrong 5 days in a row that is still less than what I usually risk per single trade. Sounds boring, but that's what I'm comfortable with (knowing the system is still in experimental phase)

Planing to add only 1 pip above or below extreme of the range.

There are few things worth remembering IMO:

1.In markets anything is possible
2.I am only trading probable outcome
3.Doesn't bother me if I experience £20 loss per trade (no emotions involved)

Also would cancel order to buy if sell is triggered and vice versa (OCO)

 

[Hoggman]

I have been paper trading a similar system. At close of the day, place a sell below the previous days low, 3 PIPs lower. At the high, add 3 PIPs plus the spread to the buy. 20 PIPs TP and SL. Trading the EUR/USD, GBP/USD, USD,JPY, USD/CHF and AUD/USD. Watch the spread!

Bottom line, about 63% wins, if you trade every day. P/L is $500.00+ at the moment for my "paper account", at $1.00/PIP. You are not going to get rich, but you can make some money. You are going to have draw down, you just have to hang in there, especially if you start with the draw down.

It's a fair way to trade if, like me, you have a regular job and can't monitor the markets during the day.

 

[Dinos]

I have completely taken the stress out of my trading by switching to a 60 minute TF.

Previously I used 5 and 1 minute TFs and found life a little bit hectic.

And I get rather more than 20 pips per day .....in fact some days I get a bucket load of pips.

Agree with this sentiment, 30 min charts only for me, price and 1 indy, cuts the noise out remarkably well

 

[bedsit]

Hi Hoggman,
Agree about the system not making you rich in a short space of time. If nothing else, it is good to develop discipline – which in my mind is one of the most important qualities to make successful trading career.

 

[bedsit]

Break up limited to around 16240 where major hourly trend line is (that is 15.5 pips)
On the other side break down limited to around 45pips. Also at 15:00 (London time) 3 US reports.
IMO 2 trend lines form a triangle formation and any break from it should be a massive one.
Tempting to go for a break down below 16138.

 

[bedsit]

May go further, but 20pips is OK with me for today.

 

[Lord Flasheart]

surely one of you guys will put some time in to backtest this for a least a few months and post the results. As it has precise entry and exits this is easy to do manually if needed. So many people discussing this and there is nothing of substance to back it up or have I issed something

 

[bedsit]

Hi Julian,
You are right. I think someone ( a volunteer) needs to do some serious back testing.
It is statistical and I based it on New York opening and there are many systems that follow that (with different settings and some technical analysis experience).
This system is meant for traders who are not that familiar with TA.
I guess some knowledge about TA wouldn't harm overall performance.

 

[bedsit]

Additional info on the system:

It is a short time break out system.

Price in these situations (short time) doesn't care if Stochastic is overbought or oversold etc. I notice that only after the event you see changes on MACD, RSI, Stochastic etc. This could be something to do about most indicators being calculated from past price action.

Important bit from TA is to be aware of recent support, resistance and trend lines IMO. (I tend to use hourly candles as a guidance about certain levels).
Sometimes break out strategy doesn't work – in the case of a false break out. This problem can be solved by putting a stop loss at appropriate level and accept a loss (preferably a small one) or allowing breathing space (to absorb these hated false breakouts).

One unfortunate thing about this system is that goes through the various reports (usually at 15:00 London time) At least doesn't cover 13:30 which is another favourite time for reports.
When I do discretionary trading, most of the time I get out of the trade before important news, reports etc.

 

[bedsit]

Today there are 3 reports due at 15:00 – factory orders and pending home sales. It's not as powerful as non-farm payroll and unemployment (due on Fri at 13:30), but could be important and move price accordingly. Would be nice if trade worked before that.

 

[bedsit]

1 loss & 1 gain so far – no good. I guess it could have been worse (like 2 losses).
Anyway I've put sell order below 15980 – may get some joy from this discretionary trade.

 

[Paulie_5]

1 loss & 1 gain so far – no good.

You can't judge a strategy/system on 2 trades ... Don't lose faith just yet !!

I usually forward test to about 50 trades before I draw any conclusions.

Some traders will take 100s .....

I hope it works out for you, good luck !