The 3 Duck's Trading System - page 2
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Hi CC,
First of all, congratulations on your name logo avatar. GREAT advertisment...
About the method: your explenation is a bit foggy but if I understand well then one has to wait for an entry on the 5minTF after price broke the previous high to go long (if 1h and 4h are also above the 60MA) or go short when price broke the previous low to go short (if 1h and 4h are also bellow the 60MA).
I understand that rule because if you would not build in some sort of a filter then one would get wipsawed over certain periods when price only has to look to a crossing of the MA on the 5 min (10 false signals in one trading day would not be impossible-- and all would be losing trades).
So to get back on the crossing of price with the previous high or low...I have posted a chart according your rules.
As you can see one can only go long when it breaks the green line.
Now what hapens if you break the green line and emmidiatly price starts to drop back?
I know you said that one can use a fix stoploss but one has to to trade by one rule. One time a fix stoploss and an other time the logics of under or above top or bottom will do you more harm then good.
The problem with a fix stoploss is that all pairs have different volatility and different average daily ranges. So a 20pip fix stoploss on the eurusd is peanuts to break on the gbpjpy.
So the logics of previous bottoms or tops to place you S/L are indeed the most senscible.
On the picture I posted the stoploss would be 80 pips. And one is trading from a 5 min chart. The choise of trading from a 5min chart is bbecause one would have small stops to work with.
I know that this stop is big also because it is taken on a gbpjpy chart. But I think you can understand that this scenario can happen also on the eurusd if price went down very sharp and followed by a sharp reversal back up. At that moment, the previous low would be very deep if one needs to go long and place his stoploss under the previous low.
I believe if one trades this guidance or method in a consolidation market with a bit larger swings up and down that this method can cost you a lot of money.
But again one can go for small fixed stops but then the emmidiat result will be that the positive hitrate will drop dramaticly.
regards..iGoR
PS a previous high or low is difficult to discribe. Is it the last little low or high over the last few minutes or the last serious retracement that one can see on a chart. Or the last low or high of the trading session or the last low or high of the current day. What for one is a big wave on the ocean is for an other person only a riple in a pond ..meaning for one, a 10-15 pips retracement is nothing for someone else its a serious
move ....
PS2. Great programming job of (s)mart-hart
Hello iGoR,
Thanks for the post and questions. I broke your post down into section so I could answer each question. You said "your explenation is a bit foggy" LOL, I hope it not too foggy for everybody, I thought it was fairly straight forward.
You seem to follow the system, so now I will try and answer you questions.
Can I not copy and paste on this forum?
Kind Regards,
Captain Currency.
Sorry about the format for this post, i tried to copy and paste but it does not seem to be working, anyway here are my answers to iGoR's questions.
BTW: these are just my views!!
Just to give my opinion on the chart example iGoR posted, but as we all know, traders will trade a system differently.
Kind Regards,
Captain Currency.
PS: Thanks for the chart iGoR
Apologies
Errrrrr....It was me that posted the indicator
Hi Mart
Well then all gratitude goes to you for the indicator yes, and to Captain Currency for posting his method.
Mart, can I ask if you know wether there is a way to say have the the tf in the botom window swapped around. I like to use to the 1hr and 4hr, but I would like the 4hr to be on the left habd side.
Kind regards always
Hi Mart
Well then all gratitude goes to you for the indicator yes, and to Captain Currency for posting his method.
Mart, can I ask if you know wether there is a way to say have the the tf in the botom window swapped around. I like to use to the 1hr and 4hr, but I would like the 4hr to be on the left habd side.
Kind regards alwaysSorry mate, my coding is cut and paste bodging only.
Look at your monitor through a mirror
Mart
Hello Traders,
Nice trade on The 3 Duck's Trading System today. A good place to buy was on the small pullback after it broke the high, stop-loss at the last low and the target at the highs. Straight forward enough!
Kind Regards,
SMA applied to close?
Thanks for sharing, are the SMA applied to Close?