Another good and intelligent trading system which you guys might enjoy is the 3 ducks trading system, the pros of this system is that is is trend following and your trades are always taken along the main trend on the higher timeframes. Trading with the trend decreases your risk greatly and at the meantime, it increases your profit probability and potential as the market is more keen to go towards the main trend.
The other good aspect of this trading method is that is very simple and easy to use as well as it uses only 1 indicator on 3 timeframes. The less indicator used is usually the better as it is becomes easier for the trader to detect the trade signals from the setup forming.
The system goes as follows, we will be using 3 timeframes and each one will be referred to as a DUCK...
Open your H4 timeframe, put a 60 SMA (moving average) on the chart. This will be the first Duck. If the price is over the 60 SMA, we have a LONG setup and it it is below the 60SMA, we have a short setup. After identifying where the DUCK 1 is going, we move to the next duck
Open your H1 timeframe and place the 60 SMA again on this chart as well. Same rule as above, if price is above 60SMA, we have a long setup and if if iw below the 60SMA, we have a short setup... At this point, if Duck 1 and Duck 2 are going same way, we go to the next Duck... but if Duck 1 and Duck 2 does not agree, then we wait for them to agree on the same direction before moving to the next Duck
At this point, Duck 1 and Duck 2 should be agreeing on the direction.. it is either, both are going down or both are going up... So we are looking at the last Duck which with the 3rd one. Open the M5 charts and again place the 60SMA on it. Now we want all the Ducks to go in the same direction, this will give us the direction in which we are going to trade. If all 3 Ducks are going down, we will only be opening sell positions and if all ducks are going up, we, will only be buying this pair.
When to Enter a trade
If the 3 ducks is telling us to sell only (all pointing down), we will wait for the price to break the previous low on the M5 chart and we will open a sell position right there. If all 3 ducks are telling us to buy only (all above 60sma), then we will open a trade as soon as price breaks the most recent high on the M5 chart.
Take Profit and Stop Loss
This is where you can make this system suit your trading style. Each trader has a different appetite for risk and reward... Some will like many pips on a few trades, while others might like little pips on many trades. Some will like to hold on long term trends and use a wide stoploss to give the trades more room to breathe while others will like to scalp the market and use small stoplosses. Feel free to adjust the Stoploss and trade profit value as per your liking. My advice it to use the recent highest and lowest points as you stoploss levels and break even as soon as you can, then let the trade run until you have a reverse signal from the ducks.
As you can see, this is a very simple and straight forward trading system which you can master almost instantly. It will be working on any pairs and at any time of the day, so you should be having plenty of trade opportunities to take advantage of. As with all trading methods, you will need to practice it on a demo account before you can decide to trade your live account with this method. Good luck and enjoy your trades.
May I know why you use M5 for duck3 and not timeframe close to H1 which is M30 or it doesn't matter which lower timeframe? Whay 60 SMA?. Thank you.
how to download this 3 duck trading system sir,please help me.
good Idea but what about if we trading agints broker?!!!! therefore no matter what we do they have all the eggs we cant win that easily!!
There is nothing required to download. Just open the 3 charts with 60sma!
I try to add with fibonacci for SL and TP
this system din work for me...
How long did you used it?
You really have all your ducks in a row...LOL
really Good strategy.
simple but clever