SRDC V by Orange Roshan
Hi Aha.
Welcome and good luck 
.
Where I'll can look SRDC IV and V metods?
I nowhere can find this.
Regards.
PowerTrader has a thread here introducing SRDC V (he calls it the River Trade), the system description is basically the same except that we don't use zigzag to help drawing daily fibos.
I was partly the reason why he is stopping to post there and that's why I am starting to post here. You may go there to check SRDC V out if he doesn't mind. If he does mind, I will compile a system description soon.
This thread will not be about SRDC IV.
Welcome aha ,make your self comfortable ...... you and the strategy will be an assets for the forum ..... Good luck.
A trade today on Pound Yen
Here is a SRDC V trade just happened. The rule is to enter after there is one bar formed completely outside the envelope. But in this case the trade opportunity would have gone.
Notice the red trend line in the chart, which was drawn from Friday and Monday's low. Also notice the black line on the chart, that's the support becoming resistance. If the price breaks the black line and the red line the double bottom pattern will be formed and the price mostly likely went up to the top of the channel. But it pulled back from it. You may enter from there with a small stop loss on the other side of the envelope. Or when the price open outside the envelope, if that candle move fast and crosses the third white line, you may enter immediately. Why the third line? Because it will only give you about 40 pips stop loss and in the testing it leads to win more than loss.
All these parameters were optimized through long hours of testing when it was created. When I learnt it I backtested exclusively (you may do the same), and was amazed how they were putting together and greatly reduce whipsaws.
same as river?
Is this the same method as river trade. I posted there to do an EA. Is there EA of this method?
false entry
Here is a SRDC V trade just happened. The rule is to enter after there is one bar formed completely outside the envelope. But in this case the trade opportunity would have gone.
Notice the red trend line in the chart, which was drawn from Friday and Monday's low. Also notice the black line on the chart, that's the support becoming resistance. If the price breaks the black line and the red line the double bottom pattern will be formed and the price mostly likely went up to the top of the channel. But it pulled back from it. You may enter from there with a small stop loss on the other side of the envelope. Or when the price open outside the envelope, if that candle move fast and crosses the third white line, you may enter immediately. Why the third line? Because it will only give you about 40 pips stop loss and in the testing it leads to win more than loss.
All these parameters were optimized through long hours of testing when it was created. When I learnt it I backtested exclusively (you may do the same), and was amazed how they were putting together and greatly reduce whipsaws.There was 2 times in your chart that it had whipsaw. How do you avoid those as entry?
Hi Aha,
Thank you for posting orange's trading system. Could you please attach your template (tpl) file so we can follow the trades on our own platforms?
thanks
Sada
Hi JFForex,
Yeah, PowerTrader and I learnt SRDC V from Orange and we traded this method together for quite some time. PowerTrader decided to stop posting here, partially because of me, so I am here to answer questions about SRDC V for TSD members, just to be fair.
I myself coded an EA for this method based on the basic rules, it is profitable for 2006 but only about 1000 pips a year, which is way less than what a human trader can get from this method. A key component to the success of this method is trend line which I still haven't found the best way to code it into the EA. But if you want to give it a try, please feel free to do so.
aha
Is this the same method as river trade. I posted there to do an EA. Is there EA of this method?
Hi Sada,
Here you are. We use to have Bollingerband on the chart as an exit signal, but my EA shows that some times it gives false signals to make exit early, so I personally choose to use Orange's trend line method to exit now. But some SRDC V trader still uses BB.
aha
Hi Aha,
Thank you for posting orange's trading system. Could you please attach your template (tpl) file so we can follow the trades on our own platforms?
thanks
SadaHi JFForex,
In the chart there are no long entry setups.
I assume you were talking about the first two short entry. I have labeled the possible entry and exit places according to trend line filter. The first one you may at least break even or come out with a small profit. The second one is a small loser. The third one should compensate whatever you lost the day.
The thing is, when it happens you may not be there, that's the dillema for SRDC V trader.
The fourth one happened last night, then use the trend line to check whether the run is over or not. It kept running, dropped twice in Asian session, once in Euro, another time in US. When the US drop happens if I am around I may exit because the day is over, but it doesn't hurt much if let it run till tomorrow, the key part to watch is approximately where the circle is, the price may meet the trend line and the envelope again. If the price breaks the trend line, we get out. If the price breaks the envelope again, as long as it's a valid long setup, we enter without fear.
Hope this helps,
aha
There was 2 times in your chart that it had whipsaw. How do you avoid those as entry?
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In this thread I will try to answer your questions about Orange Roshan's SRDC V. I am not the system creator so I won't pretend that I understood the system inside out. But I will try my best. I welcome other SRDC V traders to come and share your constructive views and findings, that includes Powertrader and traders learned SRDC V from Powertrader.
First, I want to say this, it was not my intention to stop Powertrader from teaching SRDC V, my intention was to correct what he said about Orange Roshan. Since he said sorry in his (currently) last post of the River thread about calling Orange Roshan a newbie and also admitted he was "helped" by Orange Roshan, I would still consider all these as "unfortunate circumstance", just as I said before about what happened in Orlando. I wish Powertrader continue his success in managing his forum, forex trading and life.
Second, Orange is my mentor, or Sensei, or teacher, not the "master" as passed around on internet forums or some pictured in their mind. Master was a calling when we joked around about Star Wars, nothing more.
Third, SRDC V is a trading method, not a system. A method is about entry, exit, stop loss and take profit, probably only counts 20% of trading success. Discipline and money management is way more important than trading method. So a winning method doesn't necessarily make a winning trader.
Fourth, the confidence to a method comes from backtesting. The best is to use the visual mode of the MT4 tester to backtest so that you may see the tick movement and won't be able to see beyond the current bar. Only with confidence, you can pull the trigger when the time comes.
Hope we have some good time here.