I'm trying something in demo with E/CAD. To explain it you shall have a look on E/J weekly first. As you can see, E/J W1 closed below the DC in January and again in March. It didn't broke the top of the DC yet. Therefore the down biais is still ...

Reverse Engineering a Profitable System (REPS)

That's Spyderman's thread. He is the only arbiter...

Reverse Engineering a Profitable System (REPS)

We defined no rule to re-enter nor whether to re-enter or not. The B/O on E/N is still valid to me. Looking at the daily chart 1.6800 is an interesting level. H4 seems to be preparing a bullish engulfer above 1.6800. The SL would be around 90 pips. ...

Reverse Engineering a Profitable System (REPS)

When the entry is stopped at BE not only we don't lose money but it gives an opportunity the re-enter the same amount of risk either at a better price or with a smaller SL (because DC-H4 has time to catch up). It is perhaps a good thing actually to ...

Reverse Engineering a Profitable System (REPS)

Yes it is. The current values are the highest of the highs and lowest of the lows of all the 20 previous (and closed) candles. ------- Regarding the trail at BE. Here is an example of the 3 options: (orange=D1, green=H4, black=H1) image EDIT: not ...

Reverse Engineering a Profitable System (REPS)

Hmm you're right...

Reverse Engineering a Profitable System (REPS)

We didn't discuss this point. BTW I notice MT4 doesn't draw the DC properly. The channel is to be drawn using the last known candle not the next (future!) one. Correctly drawing the channel shows that you would have started trading on the 18th of ...

Reverse Engineering a Profitable System (REPS)

The budget to add was $500. We lost $250 of them. So we should reenter with the $250 remaining. We trail the DC-H4 only up to BE(+fees) and only when DC-H1 is fully below the entry. i.e. we can stop trailing temporarily if price retraces a bit. This ...

Reverse Engineering a Profitable System (REPS)

The problem remains. If the addon SL is hit but the general SL isn't we lose 50% of the locked profits. The risk I see is that we may insist in entering in a weakening trend and give back all the money. Three failed attempts that's 87.5% of the ...

Reverse Engineering a Profitable System (REPS)

If you trail the SL above the BE and get stopped out you need keeping track of all the losses you took and take them into account for the next entry lot size. That makes things quite complicated, just my opinion. That's why I prefer jumping at BE in ...

Reverse Engineering a Profitable System (REPS)

Dunno. Wouldn't this turn a trend following system into a swing trading system? Not that it is good or bad, just that the idea is to catch the big whales. Also we must keep in mind that the power of the system comes from the MM. If we take profit ...

Reverse Engineering a Profitable System (REPS)

They seem to be best when the channel is narrow. When it is wide a W1 trendline B/O looks like a good option. Start drawing the TL from a pivot which is also a pivot of the whole DC. EDIT: well not so good in the end...

Reverse Engineering a Profitable System (REPS)

I just had fun paper trading E/U in 2008-H2 only using the H4 B/O entry. Only one single of those aggressive add-ons would have stopped out the pyramid. But almost at the bottom! One of them died at BE after a floating profit of 805 pips (aaaaah). ...

Reverse Engineering a Profitable System (REPS)

Thanks guys. I agree with Spy' that it may be too aggressive. I'd like to find a way to not get the whole pyramid destroyed if such an entry fails.

Reverse Engineering a Profitable System (REPS)

We reverse engineer a perfect trade but no position survived between 1.25 and 1.29. It isn't that perfect! The reason is obvious: the trend wiggled. Is it possible to hook a few trades in there without increasing the risk or aborting the series? I ...

Reverse Engineering a Profitable System (REPS)

I'm sure you got it. Here are two pics image image

Reverse Engineering a Profitable System (REPS)

When you entered the position your SL was 230 pips. This gives room for the trade to breath. But as soon as the price reaches 50 pips profit the SL gets very close to the PA. No more breathing. Additionally 50 pips on E/C are not the same thing as ...

Reverse Engineering a Profitable System (REPS)

Hi guys, I'm following this thread since its beginning. I really like spyderman's trade management. Long time I was searching for a pyramid scheme which doesn't increase the risk. I studied 7bit's snowball up and down. It looks great on paper. ...

Reverse Engineering a Profitable System (REPS)

Thank you for your replies. As I said, I'm trying to "adapt" some basket method to a ranging market (=one single instrument) because of their similarity. Don't worry ezcurrency I, as well, never found any cointegration between two currencies or ...

Quant basket trader? I need your help!