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[Akash]

HOW IT STARTED

Well, after blowing a $10,000 account and eating up almost $5,000 of my new account, I realised that I needed a good strategy. So while I was exploring the numerous indicators on the MT4 platform, I came across this one indicator called Ichimoku. It was the most complicated indicator I had ever seen and I just wondered who had enough brains to device it. One other thing I wondered was if I had the brains to understand what it did. So I went down to the MetaQuotes site and started reading about it… Not being a language person, I realized that I did not really understand what was being told and didn’t feel like it either. But, before removing it off my screen I thought that I should give it a try on my own. So I did…



THE DISCOVERY:

Nothing too big but I realized that as was written in the text on the MetaQuotes site, price did keep going after it crossed the blue line (Kijun-Sen). I went ahead and painstakingly back tested it on gbp/usd writing each buy and sell point on a piece of paper and the results were quiet impressive.



THE RESULTS:

Now, I set a criterion that whenever price crossed above the Kijun-Sen line, I would buy and when it went below the line, sell. I kept a stop loss of 30 and profit limits of 20 pips. The results I came up with were:

LOSS: 630 pips PROFIT: 820 pips

These results are from 1st June, 2005 to 23rd June, 2005 (17 trading days) on the GBP/USD 15min chart. The total profit came out to be 190 pips which means more than 10 pips a day and on five lots it would mean more than 50 pips a day on one currency.

If I had not kept a profit limit and taken profits at the end of all runs then the total profit would be a whopping (hold your breath) 2107 pips per lot in 17 days.

One thing I forgot to mention was that I also look at the direction of a 20 EMA, so that any false spikes can be omitted.

This system also showed great results with the EUR/JPY on the 4 Hour chart.

Another safe alternative to this technique would be to just take a few pips whenever price crosses the line, because I realised that about 90% of the time on any currency, price crosses the line and goes for about 10-15 pips. So, lets say that if you take just 3 pips per trade and you make 3 trades in a day on each of the four majors, that comes out to be 3 X 3 X 4 = 36 pips a day which I guess is really good for a beginner, but you'll have to stay glued to the screen.

Rockin' Tradin'
-Akash

Originally Posted by Edit

I have mentioned above that I use 15 min charts, but have come to realise that 30 min charts are much safer. Also, I am right now using 20 pip stops instead of my original 30 pip mentioned s/l, the profit limit is 20 pips and I just trail the stops as price goes up. I put break even stops at as soon as price crosses 10 pips.

Originally Posted by Edit 2

1. Don't trade if the KS line goes vertical and then price comes in and hits it. The safest trades are when the line is horizontal.

2. I am not using an EMA, I was mistaken about that , it is a LWMA (Linear Weighted Moving Average).

3. Take short trades only when the MA is above the KS line and take long trades only when the MA is below the KS line.

Please remember I am still working on the system and all suggestions are more than welcome.

[Bernfriedd]

Some charts and the ichimoku settings would certainly help a gret deal. And which time frame did you use? You mention the EUR/JPY and a 4H time frame. Did you use this for your GBP backtest also, 4H?

[Kako]

Akash

trading to the left(Backtest) is much different to live trading

that number u've posted(2107) and even more is Possible every week; but also unaccessible because on live trading u dunno where the price is headed but on backtest u do know. try ur system(strat) on a live(Demo or real) account and post the results

i have to add Ichimuko is good way of looking to mkt imo, specially cloud as a S/R area.

remember there's many nice looking indicators(when looking @ it on past data) none of them work real time. some because of inherit lag, some because of many false signals, some custom indicators repair their old signals(change past sig), etc.

HTH

[Akash]

Originally Posted by Bernfriedd

Some charts and the ichimoku settings would certainly help a gret deal. And which time frame did you use? You mention the EUR/JPY and a 4H time frame. Did you use this for your GBP backtest also, 4H?

Well, I used a 15 min chart for the GBP and it gives great results. Even today, you can see that already, price has crossed the line twice- once at 9.00 AM GMT and then at 11.30 AM GMT. The first time it gave over 20 pips and the second time is still going on and it has already given 60 pips. And, this is just GBP. Price crossed the line on USD/CHF and USD/JPY, throwing 100s of pips at everyone's disposal today . Let's just say that if you were a scardy cat like me and took only 3 pips per trade then you would've made 12 pips by now and it's only 1.32 PM GMT right now . I think anything over 10 pips a day is great for a beginner.

Originally Posted by Kako

Akash

trading to the left(Backtest) is much different to live trading [img]images/smilies/redface.gif[/img]

that number u've posted(2107) and even more is Possible every week; but also unaccessible because on live trading u dunno where the price is headed but on backtest u do know. try ur system(strat) on a live(Demo or real) account and post the results [img]images/smilies/wink.gif[/img]

i have to add Ichimuko is good way of looking to mkt imo, specially cloud as a S/R area.

remember there's many nice looking indicators(when looking @ it on past data) none of them work real time. some because of inherit lag, some because of many false signals, some custom indicators repair their old signals(change past sig), etc.

HTH

I totally agree with you Kako, left is definetely the known area, while on the right you do not know what the next second is going to bring your way. I will be testing this throughout the week, and will post the results coming weekend. But, one thing's for sure that if you stay glued to the screen and just take 3-5 pips per trade, and keep a s/l of say 10-15 pips, then too you would make a decent amount every day (as a beginner ).

Rockin' Tradin'
-Akash

[Kako]

sorry i will reply to thread sometime later but for ur info(FYI) my name is not HTH
HTH = Hope this helps. u have to learn forum's abbrevations. np tho(no problem though ). also it's good to learn these too:

afaik = as far as i know
TIA = thnx in advance

[Akash]

Originally Posted by Kako

sorry i will reply to thread sometime later but for ur info(FYI) my name is not HTH
HTH = Hope this helps. u have to learn forum's abbrevations. np tho(no problem though ). also it's good to learn these too:

afaik = as far as i know
TIA = thnx in advance

Thanks for letting me know, just joined up. Sorry about that.

[kathy]

-Akash[/QUOTE]

Hi Akash,
I m a new member here,its great to know that u have found the correct indicators such as ichimoku and through your backtest u have found a profitable result.But I don't really understand which crosses which will indicate the buy or sell signal. Do you have the detail how does it works,can u post for me.Thanks .my email:fath1817@yahoo.com
kathy

[amarnath]

Originally Posted by Kako

Akash

trading to the left(Backtest) is much different to live trading

that number u've posted(2107) and even more is Possible every week; but also unaccessible because on live trading u dunno where the price is headed but on backtest u do know. try ur system(strat) on a live(Demo or real) account and post the results

i have to add Ichimuko is good way of looking to mkt imo, specially cloud as a S/R area.

remember there's many nice looking indicators(when looking @ it on past data) none of them work real time. some because of inherit lag, some because of many false signals, some custom indicators repair their old signals(change past sig), etc.

HTH

Hi Kako,

Well i agree with you .Well one cant easily learn way of using Indicator's ( out of box ideas ) untill Indicator based trading kills trader equity . Many ppls here miss lot of points begning form selection of indicator to time frame .And most of newbies mistakes are centered around trading based on assumptions and unproved facts

[amarnath]

Originally Posted by Akash

Well, I used a 15 min chart for the GBP and it gives great results. Even today, you can see that already, price has crossed the line twice- once at 9.00 AM GMT and then at 11.30 AM GMT. The first time it gave over 20 pips and the second time is still going on and it has already given 60 pips. And, this is just GBP. Price crossed the line on USD/CHF and USD/JPY, throwing 100s of pips at everyone's disposal today . Let's just say that if you were a scardy cat like me and took only 3 pips per trade then you would've made 12 pips by now and it's only 1.32 PM GMT right now . I think anything over 10 pips a day is great for a beginner.



I totally agree with you Kako, left is definetely the known area, while on the right you do not know what the next second is going to bring your way. I will be testing this throughout the week, and will post the results coming weekend. But, one thing's for sure that if you stay glued to the screen and just take 3-5 pips per trade, and keep a s/l of say 10-15 pips, then too you would make a decent amount every day (as a beginner ).

Rockin' Tradin'
-Akash

Hi Akash,

10 pips a day is certainly looks too good for a newbie but to target 10 pips what will be ideal stop size
. Taking 3 pips with risk of 10 - 15 pips is certainly a Grade A type mistake of newbies unless you know what are you doing

[amarnath]

Originally Posted by Akash

HOW IT STARTED

Well, after blowing a $10,000 account and eating up almost $5,000 of my new account, I realised that I needed a good strategy. So while I was exploring the numerous indicators on the MT4 platform, I came across this one indicator called Ichimoku. It was the most complicated indicator I had ever seen and I just wondered who had enough brains to device it. One other thing I wondered was if I had the brains to understand what it did. So I went down to the MetaQuotes site and started reading about it… Not being a language person, I realized that I did not really understand what was being told and didn’t feel like it either. But, before removing it off my screen I thought that I should give it a try on my own. So I did…



THE DISCOVERY:

Nothing too big but I realized that as was written in the text on the MetaQuotes site, price did keep going after it crossed the blue line (Kijun-Sen). I went ahead and painstakingly back tested it on gbp/usd writing each buy and sell point on a piece of paper and the results were quiet impressive.



THE RESULTS:

Now, I set a criterion that whenever price crossed above the Kijun-Sen line, I would buy and when it went below the line, sell. I kept a stop loss of 30 and profit limits of 20 pips. The results I came up with were:

LOSS: 630 pips PROFIT: 820 pips

These results are from 1st June, 2005 to 23rd June, 2005 (17 trading days) on the GBP/USD 15min chart. The total profit came out to be 190 pips which means more than 10 pips a day and on five lots it would mean more than 50 pips a day on one currency.

If I had not kept a profit limit and taken profits at the end of all runs then the total profit would be a whopping (hold your breath) 2107 pips per lot in 17 days.

One thing I forgot to mention was that I also look at the direction of a 20 EMA, so that any false spikes can be omitted.

This system also showed great results with the EUR/JPY on the 4 Hour chart.

Another safe alternative to this technique would be to just take a few pips whenever price crosses the line, because I realised that about 90% of the time on any currency, price crosses the line and goes for about 10-15 pips. So, lets say that if you take just 3 pips per trade and you make 3 trades in a day on each of the four majors, that comes out to be 3 X 3 X 4 = 36 pips a day which I guess is really good for a beginner, but you'll have to stay glued to the screen.

Rockin' Tradin'
-Akash

Hi ,

From left hand side it always easy to generate giga pips BTW you can use backtester to check lefthand trades rather than painstakingly counting it manually.

Also try to find how much author of Indicator Ichimoku made himself from his complex indicator. It just takes an hour for a good programmer to build a more complex and colorful indicators

[napeharm]

I was looking at this cross of the price and the kijun-sen line and found that it is well represented by an indicator on the ACD thread on Strategybuilderfx forum.The indicator is made of two moving averages 7 and 23 which might be useful if you wish to view it as an indicator. I have this on my 5 min charts anyhow overlaid with a stoch 21,10,10 for timing entries and exits.

[Akash]

Originally Posted by kathy

Hi Akash,
I m a new member here,its great to know that u have found the correct indicators such as ichimoku and through your backtest u have found a profitable result.But I don't really understand which crosses which will indicate the buy or sell signal. Do you have the detail how does it works,can u post for me.Thanks .my email:fath1817@yahoo.com
kathy

Hi Kathy,
I've attached a screenshot of GBP/USD 30 min chart (just eye balling, 30 mins looks better than 15 mins, safer trades), and labeled the entry points on it. You enter once price cuts through the Kijun-Sen line. I am also going to attach an indicator here, which just shows the Kijun-Sen line, and doesn't clutter up your screen.

On the chart attached, I am keeping 20 pips s/l and a 20 pip profit limit. I move up my stops to 10 pips profit as soon as I am +15 pips.

The explanations for the various entries are given below:

1. Buy at 1.7932- Price crossed the Kijun-Sen line at 1.7932 and the 20 EMA was pointing upwards. I think it is always a good idea to let price first touch the Kijun-Sen, then wait for it to retrace a bit, just enough to cover the spreads and then buy or sell (I hope I've made myself clear), because more often than not, it does retrace a couple of pips after touching the Kijun-Sen. Price did go on to 1.7975, which is a good 43 pips. I only got 20 pips out of this, because wasn't around to toggle stops .

2. Sell at 1.7932- Although I should've sold at 1.7929 (3 pip spread on GBP ), but got scared and jumped in at 1.7932. I took 10 pips out of this, because price only went about 19 pips. I could've had 20, had I sold 1.7929, but I was happy with my 10 .

3. Bought at 1.7935- Not 1.7932 because 20 EMA turned around late. Anyways, price went up till 1.7974 a good 39 pips from where I bought, but I was able to take only 30 pips, as I had moved stops.

4. No Sell, since 20 EMA pointing up- Now, here price pierces through the Kijun-Sen, but bounces right back up. I use the 20 EMA to prevent myself from entering on a spike. So, no profit, no loss here.

5. Sell at 1.7979- Sold at 1.7877, right when EMA turned at 10.30 candle (MT time). Took 20 pips thanks to 3 pip spreads.

6. Sell at 1.8000- Wasn't around to take this trade, but it could've surely given a minimum of 10 pips and maybe even 20 if you waited, because price did go down further to 1.7969.

All in all a good day, I made 80 pips , which is a mighttyyy good amount according to me. Sadly it was on demo , but its cool, next week I'll trade live if I do good this week.

Originally Posted by amarnath

Hi Akash,

10 pips a day is certainly looks too good for a newbie but to target 10 pips what will be ideal stop size [img]images/smilies/confused.gif[/img] [img]images/smilies/smile.gif[/img]
. Taking 3 pips with risk of 10 - 15 pips is certainly a Grade A type mistake of newbies unless you know what are you doing

Hi Amarnath,
You are actually right, it would be dumb to risk 10-15 pips for 3-4 pips on every trade, so I decided I am going to stick to 20 pips profit and 20 pips loss strategy.


Rockin' Tradin'
-Akash

[Akash]

Ummm...how do you post a chart in here, so that it appears to be its original size??? Please let me know someone.

Rockin' Tradin'
-Akash

[firedave]

Originally Posted by Akash

Ummm...how do you post a chart in here, so that it appears to be its original size??? Please let me know someone.

Rockin' Tradin'
-Akash

Just post only one chart per post without any additional attachment file. Or you can host the chart on other server then link the image to your post. Hope this help

[Akash]

Thanks firedave, it worked ...

I've attached the Kijun-Sen indicator below.

Rockin' Tradin'
-Akash