A profitable system to buy?

[lifestatic]

Good Morning Fellow Traders,

I have read many of your posts and got very interested.

Do you know a Forex system that can and DOES produce a good 400-500pips a month on an average on the long run (years if it is possible at all)?

I am tired of buying systems that go wrong just after I buy them.

I am a simple minded trader. I do not need "magic systems" that "double your money in two weeks", etc.

I just need a good, solid, simple strat that DOES produce 400 - 500 pips/mo.
Am I asking for too much?

If a system like this were FREE I'd be very glad to PAY for it AFTER I tested how it works.

 

[G-Man]

lifestatic,

I have 2 questions for you.

1) Are you looking for 400-500 pips because thats what all the advertising banners state, and

2) When you mention that all the previous systems you have bought failed just after you started trading them, how long have you traded them for?

G-Man

 

[FetteredChinos]

I just need a good, solid, simple strat that DOES produce 400 - 500 pips/mo.
Am I asking for too much?

simply, yes.

BUT, anyone can develop something of their own that can yield somewhere in the region of that. it just depends on what size trading pot you are working off.

if you have a humungous trading capital, then you arent forced to trade with narrow-ish stops (eg under 200 pips), and can allow longer-term trends work their way into play. however, if you dont have such capital, then you need to employ tighter stops to prevent wipeout.

sensible profit targets also help.

buy low, sell high , not buy high, sell higher.



regarding your point 2)

this tends to happen. probably sods (or murphy's) law. it is one of those things that happens. in my opinion, you need to give a method 10-20 trades at least before deciding if it is viable. if you are breakeven after 20, then you may as well keep going. drawdowns happen all the time, you just need to ride them out.

did you backtest any of these systems to verify their robustness in all sorts of markets? im speculating that an awful lot of FX systems are trend following in their nature. if you try to trade these 24 hours a day you will get killed in the evening sessions.. after about 6pm GMT , GBP/USD at least becomes whipsaw city until the following mornings European open.


yours ramblingly,

FC

 

[lifestatic]

Hi G-Man

400 - 500 pip profit a month would be very ideal for me (10:1 leverage, 20% of margin traded)
Good point though.
It is true enough these advertisements got my fantasy going...
Was I asking for too much?

I bought a package of 4 strategies and demo traded all 4 for over 3 months.
Got me into losses, except for one, that was a scalping type of strategy using 3min charts that was hard to follow and might have been my incompetence.
I just started demoing this scalping method two months ago again - I am more experienced now - but still did not get good results with it.

I bought another one, that I could follow up on easily, tested for three months, got about 200 pips profit in three months. It was less than I expected so I quit using that one.

What do you think would be a sound system?
How many pips a month on average?
I think 400 - 500 would be ideal.
I could live with 300 if it were consistent enough.

Do you know of such a system?

 

[FetteredChinos]

i think 10,000 pips a month would be ideal. or perhaps 20,000

there are no short-cuts...

hard work, dedication, and repeated stiff drinks when it all goes wrong are what are required to succeed.

time to wheel out old faithful:-

"why would someone sell a system rather than trade it themselves and become millionaires?"

 

[SOCRATES]

Precisely.

 

[SvenFoster]

Good Morning Fellow Traders,

I have read many of your posts and got very interested.

Do you know a Forex system that can and DOES produce a good 400-500pips a month on an average on the long run (years if it is possible at all)?

Afraid all my attempts at using mechanical systems produce a bad 400-500pips i.e losses

I am tired of buying systems that go wrong just after I buy them.

I am a simple minded trader. I do not need "magic systems" that "double your money in two weeks", etc.

Then stop buying them.. I'm not being funny but spend more time watching the charts and avoid other peoples systems like the plague unless you understand what and why they are generating trades and they fit in with your pocket and psychological make up.

I just need a good, solid, simple strat that DOES produce 400 - 500 pips/mo.
Am I asking for too much?

No i don;t think it is but... and its a big but what would have to be risked in order to generate 400-500pips. If it was 400-500 i couldn't/wouldn't stomach it. I think a lot of newbies/traders(including myself) arrive a 400pips because thats 20pips a day.

Avoid the shorter timeframes until you really know what your doing, There are decent enough swings even in a ranging market (with small enough stops) on the 15min TF. Concentrate on that and money management and you may get lucky on a home run..

...hmmm maybe i should take my own advice.
good luck

 

[lifestatic]

Dear All,

New perspectives...

Are you guys saying that my being a newbie (one year of live trade under my belt though) and believing in a "workable, mechanical system" and looking for it relentlessly is just a waste of time?

Do you prefer deep knowledge of indicators, hard won experience and decisions made in present time?

I guess it is getting to the psychological side of it, but:
How can anybody be so calm as to trade like that?
Without a system to rely on?

To enter into a market in this "indicators" style is rather easy - I believe - but to stay in long enough. That's tough.

One must be very self confident - graph- and experience-confident that is - to trade like that.
Don't you guys use mechanical systems to trade?
To stay calm in deep waters. To not get a heart attack to soon?

Hey, I am getting to like this forum.

 

[Mohican]

If any of you guys have forgotten, good traders don't buy systems and if the systems are of any real value,the traders don't sell it

 

[options]

To certain extents, everyone trades mechanically. Even pure funnymentalists. All will wait for certain 'conditions' to be met before they enter or close a position.

It doesn't matter if you are a short term trader using 5 min charts or a longer term trader using weekly charts. More importantly it doesn't matter 'how' they are trading. ie 1indicator or 20. Price action or shorting on a full moon. What is important is that they are trading to a plan.

A plan that they have made workable for themselves. Nothing works all the time in trading. So a major key point is to be adaptable.

Someone on these boards. (I will not mention names.) gave out a signal for an early morning call on a forex trade, with buy, stop and target price. The result? They were spot on with the buy price and direction. BUT... The action had a false start. I mean it had at least 2 attempts to rise and consequently fell back under the buy price. So what would you do? Panic on the 1st fall and get out? stay in and hope it doesn't fall to your get out stop? Or turn the trade around into a 123 and play that?

Any would have been the correct decision at the time. But only trading the 123 would have made you the money. And it was a 123 that a lot of people would not have been able to pick out.

"Do you know a Forex system that can and DOES produce a good 400-500pips a month on an average on the long run (years if it is possible at all)?"

Yes. I could give you one. It is so simple that's it's untrue. But it only trades a couple of times a year, (if that) It does sometimes have a couple of false starts before it gets going, and it requires a major amount of hand sitting. (something most people cannot do).

"If a system like this were FREE I'd be very glad to PAY for it AFTER I tested how it works."

And how much would you pay for it?

I know I would pay ten times of the original price to the vendor. But why would I want to sell it in the first place?

If I sold you my system I would want 25% of your profits. But you would have to give it a decent test wouldn't you? Say 20 or so trades before you could make up your mind. Mmmmm! That would mean that I would have to wait about ten years before you paid me for my 'system'.

What you are after is a fool proof system that is a dead cert to pull in the money for you. Sadly the only 2 things in life that are certain are death and taxes.

 

[SOCRATES]

If any of you guys have forgotten, good traders don't buy systems and if the systems are of any real value,the traders don't sell it

Look at this, he has only made three posts and he has already pinned it.

Welcome to T2W, Mohican.

 

[SOCRATES]

To certain extents, everyone trades mechanically. Even pure funnymentalists. All will wait for certain 'conditions' to be met before they enter or close a position.

It doesn't matter if you are a short term trader using 5 min charts or a longer term trader using weekly charts. More importantly it doesn't matter 'how' they are trading. ie 1indicator or 20. Price action or shorting on a full moon. What is important is that they are trading to a plan.

A plan that they have made workable for themselves. Nothing works all the time in trading. So a major key point is to be adaptable.

Someone on these boards. (I will not mention names.) gave out a signal for an early morning call on a forex trade, with buy, stop and target price. The result? They were spot on with the buy price and direction. BUT... The action had a false start. I mean it had at least 2 attempts to rise and consequently fell back under the buy price. So what would you do? Panic on the 1st fall and get out? stay in and hope it doesn't fall to your get out stop? Or turn the trade around into a 123 and play that?

Any would have been the correct decision at the time. But only trading the 123 would have made you the money. And it was a 123 that a lot of people would not have been able to pick out.

"Do you know a Forex system that can and DOES produce a good 400-500pips a month on an average on the long run (years if it is possible at all)?"

Yes. I could give you one. It is so simple that's it's untrue. But it only trades a couple of times a year, (if that) It does sometimes have a couple of false starts before it gets going, and it requires a major amount of hand sitting. (something most people cannot do).

"If a system like this were FREE I'd be very glad to PAY for it AFTER I tested how it works."

And how much would you pay for it?

I know I would pay ten times of the original price to the vendor. But why would I want to sell it in the first place?

If I sold you my system I would want 25% of your profits. But you would have to give it a decent test wouldn't you? Say 20 or so trades before you could make up your mind. Mmmmm! That would mean that I would have to wait about ten years before you paid me for my 'system'.

What you are after is a fool proof system that is a dead cert to pull in the money for you. Sadly the only 2 things in life that are certain are death and taxes.

This is a marvellous post you have made, Options. I totally agree with you and what is more, I could not have expressed it better myself.

Kind Regards.

 

[Salty Gibbon]

What you are after is a fool proof system that is a dead cert to pull in the money for you. Sadly the only 2 things in life that are certain are death and taxes.

Taxes are not certain if you live in the right place

 

[SOCRATES]

And Death, well, many are perambulating about as if they were already dead, from the neck up, that is.

 

[lifestatic]

Time Trap System

Hello Guys,

I wonder if any of you tested/live traded Time Trap System
by Alex Krzhechevsky (hope I spelled his name right)

I paper traded it for some time with good results, never traded it live however - yet.
I got 539 pips out of it on USD/CHF 11/17 - 12/20 2004

 

[Roberto]

Hello Guys,

I wonder if any of you tested/live traded Time Trap System
by Alex Krzhechevsky (hope I spelled his name right)

I paper traded it for some time with good results, never traded it live however - yet.
I got 539 pips out of it on USD/CHF 11/17 - 12/20 2004

It's reviewed over at www.fx-review.com . I believe the owner of that site has actually studied it himself and has views on it, too (not very complimentary ones, I gather).

(hope I spelled his name right)

My guess is that if you didn't, it wouldn't be the first ever misspelling of Alex's surname, and he won't sue anyway.

 

[SOCRATES]

Lifestatic, I would be very interested if you would be so kind to explain to me why it is that you persist in trying to acquire what you describe as a system. All these ideas are myths. There is no such holy grail that will lead you to push buttons first of all without excercising judgement and understanding fully what it is you are in, even though it is what people dream about and hope for, in vain.

 

[lifestatic]

Socrates,

I suppose most of us are technical analysts here - my old fellow Hungarian, Andre Kosztolany wouldn't like us for it I guess - anyway.

What I am trying to do is using math to increase my chances of winning.
Whether it be money management, indicators, flipping a coin, anything that has some kind of logic and that can be described.

I do believe, any process in our material universe CAN be described.
We cannot foretell when the next meteorite is going to struck us all dead, but we can tell the probability of it by math. And knowing it is about 1 to 1000000000....., we can live happily without caring about it.

I think there are no black and white things.
No perfect, always winning strategies, etc.

But there are indicators that help you get 60 or 70% winning chances, which is fair enough.
The problem is: there are MANY of these.

Indicators can be varied this way or that.
Some are useful, some are not. Some more useful than others.

When I drive my car and get into 6 lanes of chaos, I have the lanes painted and roadside signs to relate myself to and act at least not like an idiot.

In FX trading I did act for some while like an idiot, in fact I lost 60% of my initial capital.

So, what I mean by a strategy is a set of indicators to know when to enter and when to exit AND have a higher probability of winning than losing.
The higher it is the better.

The only proof of a strategy's workability would of course be past records. How else could anyone tell? And I am aware that "past results are no guarantee for future gains", etc, like most of these "over-marketed" sites say.

Where is my logic at fault?
Is my whole approach out?
What is you approach to trading? How do you make decisions? Based on what?

Best

 

[wasp]

There is much talk of 'systems' and the 'holy grail'. Many are searching for it, many are insisting it does not exist.

Although I personally do not use indicators, I can appreciate why some use them and cannot see why its not perfectly plausible that using indicators, backtesting, doing the same thing day in and day out according to these pre set out rules according to the devised method, and using tight stop losses mixed with decent money management that one cannot make a profit.

The market may not be made to a certain mould and therefore no indicator is going to give you 100% perfect results. But as long as you don't expect 100% wins of your system, but expect losses and work them into your 'system', you will have your own holy grail. there are many on these boards who seem to do just that.

I don't use a 'system' or indicators, but I still lose! Its just making sure you win more than you lose that counts, however you do it.

 

[neil]

Get off your butt

Socrates,

I suppose most of us are technical analysts here - my old fellow Hungarian, Andre Kosztolany wouldn't like us for it I guess - anyway.

What I am trying to do is using math to increase my chances of winning.
Whether it be money management, indicators, flipping a coin, anything that has some kind of logic and that can be described.

I do believe, any process in our material universe CAN be described.
We cannot foretell when the next meteorite is going to struck us all dead, but we can tell the probability of it by math. And knowing it is about 1 to 1000000000....., we can live happily without caring about it.

I think there are no black and white things.
No perfect, always winning strategies, etc.

But there are indicators that help you get 60 or 70% winning chances, which is fair enough.
The problem is: there are MANY of these.

Indicators can be varied this way or that.
Some are useful, some are not. Some more useful than others.

When I drive my car and get into 6 lanes of chaos, I have the lanes painted and roadside signs to relate myself to and act at least not like an idiot.

In FX trading I did act for some while like an idiot, in fact I lost 60% of my initial capital.

So, what I mean by a strategy is a set of indicators to know when to enter and when to exit AND have a higher probability of winning than losing.
The higher it is the better.

The only proof of a strategy's workability would of course be past records. How else could anyone tell? And I am aware that "past results are no guarantee for future gains", etc, like most of these "over-marketed" sites say.

Where is my logic at fault?
Is my whole approach out?
What is you approach to trading? How do you make decisions? Based on what?

Best

If you must play with systems rather than make an effort to study all the free material on this and other sites perhaps you could try moneytec.com - they have lots of systems for the grail seekers. Take note of what experienced people here are trying to tell you; it takes practice,study and mastery of your self. You have a long way to go; read all you can, start small. There are no short cuts - stop looking for one.