Hello everyone,
I would like to get some feedback on one idea I got after reading Graeme's Building an Equity Millipede thread.
Some key things I remember from Graeme:
-the best time to catch the whole range of a candle is to enter at the open
-send scouts to catch the beginning of a new trend
-add multiple positions along the way
-risk very little for infinite profit
-participate in the market and follow the price
-buy when it's up, sell when it's down
Taking all these into account I developed the following system:
- every Monday, on the weekly chart, I place a buy and a sell order at the first .00 above and below the weekly open with a 100 pips stoploss
- 2 lots on each order, close 1 lot at +100 pips profit so I have a free trade from then on
- as you can see from the chart below more than half the weeks of 2011 were profitable according to the rules above (marked with an arrow) and would have kept you in the uptrend for the first half, in the downtrend for the second half and made a little profit in the range part of the year
- the KEY to this is leaving the successful trades open for growth and stacking several profitable weeks along the long-term trend and trading multiple pairs to smooth the equity curve
- you will catch the beginning of new trends this way and you will catch 500 pips weeks (see December 2010, January and September 2011)
- price action is also important to the overall view (Pin bars, Inside bars, Engulfing bars)
- exits are discretionary. Graeme calls it diversifying. This is done at a minimum of 500 pips profit by closing the smallest trades to replenish capital. In the example chart you can clearly see in May that a range is forming, so closing all longs except the first entry should be done without any hesitation.
I will post the trades I take and my thoughts along the way. Right now I placed orders in A/U, E/U, N/U, U/CH, G/U, A/CH, E/A, G/CH, G/N.
Indicators are not allowed in this thread. Please share your thoughts about this system/method after looking at some pairs on the weekly charts.
UPDATE: Please see post #42 for modifications to this system.
Disclaimer: Do not trade this system on a live account with real money! I assume no responsibility for any losses or profits incurred by trading this system.
I would like to get some feedback on one idea I got after reading Graeme's Building an Equity Millipede thread.
Some key things I remember from Graeme:
-the best time to catch the whole range of a candle is to enter at the open
-send scouts to catch the beginning of a new trend
-add multiple positions along the way
-risk very little for infinite profit
-participate in the market and follow the price
-buy when it's up, sell when it's down
Taking all these into account I developed the following system:
- every Monday, on the weekly chart, I place a buy and a sell order at the first .00 above and below the weekly open with a 100 pips stoploss
- 2 lots on each order, close 1 lot at +100 pips profit so I have a free trade from then on
- as you can see from the chart below more than half the weeks of 2011 were profitable according to the rules above (marked with an arrow) and would have kept you in the uptrend for the first half, in the downtrend for the second half and made a little profit in the range part of the year
- the KEY to this is leaving the successful trades open for growth and stacking several profitable weeks along the long-term trend and trading multiple pairs to smooth the equity curve
- you will catch the beginning of new trends this way and you will catch 500 pips weeks (see December 2010, January and September 2011)
- price action is also important to the overall view (Pin bars, Inside bars, Engulfing bars)
- exits are discretionary. Graeme calls it diversifying. This is done at a minimum of 500 pips profit by closing the smallest trades to replenish capital. In the example chart you can clearly see in May that a range is forming, so closing all longs except the first entry should be done without any hesitation.
I will post the trades I take and my thoughts along the way. Right now I placed orders in A/U, E/U, N/U, U/CH, G/U, A/CH, E/A, G/CH, G/N.
Indicators are not allowed in this thread. Please share your thoughts about this system/method after looking at some pairs on the weekly charts.
UPDATE: Please see post #42 for modifications to this system.
Disclaimer: Do not trade this system on a live account with real money! I assume no responsibility for any losses or profits incurred by trading this system.