Thanks for sharing. I have tried something similar to this though, just eyeballing it, and I really couldnt beat the spread to make it worth my time, but I didnt do that many trades either.

Anybody want to share what SMA settings they are finding useful on the 4 hr charts holding the trade for 8-96 or so hour time frame ???? I call these mini trends that I am looking for .

I am trying to add this( SMA's ) to my arsenal, besides bollinger bands . When I go back in time the 60 day SMA almost always seems to be signifigant marker in support and resistance , on many currency pairs, no ??? .


I am trying 7,21,60 SMA with stochastics, to set my entry and exits, waiting for the 7 to cross above the 21 ( 60 day SMA or close to it ) to go long wait for the trade to evolve and then set my trailing stop, just the opposite to short. I also use candelsticks

Thanks

FX CARRY RANGE SCALPER

System Rules



Entries

• The first step in the strategy is to draw a channel between the highest high and the lowest low of the last 9 bars
• The second step is to draw Fibonacci Retracement lines using those two levels
• We should enter a long trade when the bar closes above the 61.8% retracement level
• We only trade in the direction of the carry.




Exits

• Sell Stop: We should close our trades at 3 times the value of the average true range.
• Profit Target: Take profits at entry price plus 3 times the average true range
• We chose to use the same value both for risk and reward to avoid any statistical bias in any direction. For example, if our stop id much closer than our target, odds are that we are going to have more losing trades than winning trades


Time Frame Traded

• 4 hour charts



Currency Pairs Traded

• EUR/JPY
• GBP/JPY
• AUD/JPY
• NZD/JPY

Attached Images

  

This is a new strategy that uses a regular 14 bars Stochastic Oscillator (3, 3, 1)
Let me know if you have any question or recommendation to make it better.

RULES for the FX Stochastic Range Trader Strategy

• Enter Long When the %K lines crosses above the %D line and the lines are below 20
• We only trade in the direction of the currency with the highest interest rate.
• Sell Stop: We should close our trades at 3 times the value of the average true range.
• Profit Target: Take profits at entry price plus 3 times the average true range
• We chose to use the same value both for risk and reward to avoid any statistical bias in any direction. For example, if our stop id much closer than our target, odds are that we are going to have more losing trades than winning trades

Attached Images

  

no offense but your TP is 37 pips and SL is 85 pips. it doesn't make any sense in terms of money management... why would you want to risk 85pips for 37 pips? i would gladly stay out of a trade like that.

I've been working on an Equilibrium Model for a couple of years on and off as time would allow. Right now I've got a LOT of free time so I'm going to dig it back up and play some more. It's essentially an Optimized Correlation model; I look for periods where there are large shifts in the correlation between two pairs and then look at a series of market impact factors that will either support a continuation of the break down or a return to the correlation mean... blah blah blah... Its still really early in the developmeant so I need to do a lot more work. I'm hoping to turn it into an intra day trade or a short term swing trade... I'll have to keep an eye transactional impact with that scenario as modles with frequent trades (especially in fx) can suffer.

As I work on it I'll include a Demo Account statement; This first one doesn't really mean much as I haven't traded the thing consistantly through the month AND I was using GOBS of leverage... way more than I ever would in a real account. All of that needs to be adjusted to better represent what might be experienced in real life...

I'll post the result along as I test.

I need to do some additional back testing to establish a base line expectation and the do some additional optimization work. I'll keep trading the thing in its current fasion for giggles and we can watch it develop as some of the testing and opt work is implamented.

Attached Files

Statement.pdf (33.7 KB, 511 views)

__________________
Trade with the next twenty years in mind; not the next twenty minutes.
John E. Putman II, CTA

I entered a seires of trades in the demo Friday before the close of business; last night things were under water, this morning we were in the black so I closed them down. That totally random method of exit won't work in the long term (it also does little to optimize transactional impact); I'm just trying to get a sense for how this feels and shakes out in real time.

I have my own internal risk profile and trade style. I'm not comfortable being a hyper active trader and I don't care to hold positions for extended periods of time. When I first sit down to develop a model I like to give the basic concept a test and see if it fits my personality. If it does, which this one will I think, then I get on to the more serious back testing, optimization and step forward testing.

One of the problems right out of the gate with this are the number of trades I'm taking; I'm never really comortable handling a lot of leverage and this has it. In each set of trades I'm counting on statistically significant break downs in correlation, reverting to their mean. If we were to see any significant level of persistancy in the break down, it could do a lot of account damage... so all of that has to be factored into the risk profile. I will know more and have more data as I move forward.

Attached Files

Statement.pdf (50.6 KB, 380 views)

__________________
Trade with the next twenty years in mind; not the next twenty minutes.
John E. Putman II, CTA

We get the feeling that you are entering positions without stops, waiting for the trade to become positive and then closing it out for small gain. That type of trading while very seductive is guaranteed to fail, but instead of listening to us please continue trading and see for yourself and please report back to all of us your experience.

Dear Traders,

I'm still a newbie in this FX business, I'm still trying to find the perfect system that would give me a consistent results. Right now I'm testing the Pivot point strategy, S1, S2, R1, R2, M1,M2,M3, etc, and it's quite good actually because at least now I can have a clear system that based on a precise calculation and not just following my instincts.

Recently I learned about hedging strategy using E/U spesifically. The person tought me to open Buy and Sell position at Aus/Nzd market open, (00:00) GMT +4 with a TP 10, No SL.

If during the day one of the positions is closed (Example Sell is closed) then we must open another position to balance it, then we have to open another Sell Position but with a floating TP, NO SL.

My question is, can we profit using this hedging strategy? I've back tested the system and if in a day the high and low position is greater or equal then TP then we can profit, but if the market went into one direction then we have to float for days even weeks.

This strategy cost me 200 bucks hehe, and not seem to be working. Can you share your experience hedging E/U?

Thank you,
Samuel

P.S. Sorry if this is not about scalping or intraday strategy, but help me on this please.

Very interesting point of view indeed. I didn't know that most of the time Tokyo is rangebound....thanks for letting me know.

do you know about 5 ema strategy?

[quote=SeaSun4]do you know about 5 ema strategy?[/QUOTE
I 've never heard of that strategy so far...here is a link that might help a bit
http://en.wikipedia.org/wiki/Exponen...moving_average

Good luck

Dirk

What 5 EMA strategy are you referring to?

Seasun 4 was referring to a 5 ema strategy.....as I mentioned in my post above, I've never heard of it either....maybe seasun 4 wants to know if' there is a difference in 'strategy ' as in why using a 10, 20,50 or a 200 ema indicator (exponential moving averages)

Regards and have a good weekend,

Dirk

hi guys...excuse the writing technique...it is my new way now for some time and i find it hard to change now...is martha still around...i see the site layout has changed a lot...i am trading options now mostly...but also doing some daytrading on the ym...starting to pick up on where i left off with fx...as i may give it a shot with the profits from the options trading...also...is vsatrader still hanging around...or whatever his last nick was...would like to speak with him now as i have a lot of live trading experience since i was here last...which was a flying visit in mar07...

anyway...i reckon prosticks are worth a look at for day position trades...and can be used with standard candle techniques to identify some low risk high probability trades...

rgds...cyof

hi samin...do not place too much emphasis on pivots alone...for most of the standard ta is hit and miss...thus...that is why u...and many others see no real benefit in these 2 a penny so called trading systems...remember u will always get what u pay for...

now...why do u need to hedge...are u opening trades with over 10k risk per trade...and if u want to hedge why are u not looking at options...

here is a simple bit of advice for u...use candle charts with the following timeframes...weekly...daily...hourly...10 min...and use barchart on 5 min timeframe...use nothing else...take note of where the last tick is on each chart...and get to quickly scan and remember each chart in ur head...

then...close ur eyes...and see if u can see where the tick is going to be at a certain time...and draw a horizontal line on ur chart...practice this and u may find that u now know a lot more than most traders will ever know...and...remember...u must trust urself...especially when u have money on the table...

rgds...cyof