ok that makes more sense now cheers boss
Here is the first impression from my personal testing of this system... the first week brought me 10% profits... is not this cool for a 'set and forget' method
Join the testdrive with me..
Hope we have the same luck next week.
Im currently testing this system as it fits well with my day job. I am also working on doing it on a daily basis so i will let you know how i get on with that.
I am a complete novice at this by the way and although i have been reading for a long time have only just started to actually watch the markets and paper trade.
I have a few queries.
1. Using this system, was i right to set a buy limit and a sell stop? i am using metatrader and thats the only way i could get it to place my orders?
2. What time should i place the orders? i couldnt set them on sunday night because the markets were'nt open. I live in England so do i wait till the london stock exchange is open at 8? This goes for the daily one im testing to. Im just slightly confused at what open and close to work around? For instance on friday i need to close positions 30 minutes before close of trading but i dont know what time that will be? I woke up at 7 this morning and the price had already changed from the sunday night and i ended up placing my orders at about half 7??? is this correct?
Hope someone can help me out. I know im a long long way of trading real money but i feel actually paper trading and maybe asking forums a lot of stupid questions will help me out no end!
All the question about the time which you asked are all related to your broker. You wait for your broker to open the trading on sunday night, then place the orders as soon as it opens... if this happens during late night, then i suggest you use an alarm clock to wake you up for placing the orders because the longer you wait, price can already make significant moves. For the close of the orders as well, you need to know when your broker closes the system and stop supplying the ticks and taking orders. You just log in 30 minutes before it closes and close everything. If you do not know the operation time of your broker, then email them and ask them about it.
It is never late to learn... so keep it up and keep us posted.
Thanks for your quick reply!
I have only just started testing this trading system but i have one other query.
With this system say the price goes up and hits my buy order, am i then basically relying on it not dropping to the stop loss price for the whole entire week??
That just seems like a long time on such a liquid market, for any profit to be made relying on it not dropping 60 pips below last weeks close? I would have thought (as the novice i am) that the potential for it to do this would be quit high???
Have i got that all wrong?!?!?! be honest if that is a stupid question..please!
The stoploss is not 60 pips from last week close, but 60 pips from the entry order... And yes, this stoploss is there to protect your account.... we are attempting to capture the big move on one side and not both... I suggest you read the details again... I guess you did not well understood everything.
"For example, if close of GBPUSD was 1.6500, we place pending buy order at 1.6530 with SL 60 pips at 1.440.. we place pending sell order at 1.6470 with 60 pips SL at 1.6560 .."
Above is one of your previous messages which does state S/L at 60pips below last weeks close though??? now im really confused
Im not trying to be pain. Its just hard trying to teach yourself sometimes
This system is VERY interesting. I like the massive potential risk reward ratio. I use Metatrader and two awesome FREE indicators which automatically draw Support and Resistance lines directly on the chart. It just occurred to me that this type of system could be tweaked in a way which might produce mega-wins for VERY low risk. Imagine if the close of a weekly bar gets real close to a strong Support or Resistance line. On the right candle, the sell and buy trades might even be located on EITHER SIDE of the S/R line, enabling one to pull in the stops, add more lots, with no increase in risk and possible better probability of success. I just took a look at some of these weekly moves, and we're talking 500, 600 and 700 PIPs. Say you got 3 lots working...well, you do the math. First test will be to see how often a candle closes near enough to a Support / Resistance line on, say, 6 to 9 pairs.
I like is one. Match this puppy up with some basic S/R and it could get fun. Will report back soon. Hey...thanks for posting this interesting weekly chart system. I've been racking my brain how to trade on the weekly without giant stop losses.
Bossxero, I got a little confused here with the strategy. In the original post you said that we are putting S/L at 30 pips of the order. In this post, you say it should be S/L at 60 pips, but then in the GBPUSD example it is 90 pips. Could you tell me what S/L are you personally using?
I am currently putting pending order 30pips from the close with a 60pips SL.