Great technique for beginners...

[fxquest]

Great results Akash!

I didn't have the same luck with this system. Actually its more my fault than the system's fault ( I don't trust the first cross so I wait too much before I enter and miss most or all of the move !!).

Could you describe in more detail how you enter a position?

As to profit taking exits - here is something I read and think makes a lot of sense (I think its also called pyramiding). The thing that I like most about it is that it limits the risk if things go against you and allows you to make the most of moves in your favour. It has little advantage in ranging markets where setting a fixed profit target makes more sense. Here is an example:

Enter the position with the minimal lot (lets say at price 1.0000):

@ 1.0028 add another lot (Avg. 1.0014) set S/L at 1.0020
@ 1.0053 add another lot (Avg. 1.0027) set S/L at 1.0038
@ 1.0078 add another lot (Avg. 1.0040) set S/L at 1.0056
you get the idea...

what do you think?

Thanks,
fxquest

[Manzar]

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 Akash. I m thinking of working on this technique. Few Questoins. Hope u answer.

1) This works only with GBP/USD or with other pairs as well.

2) In Meta4 i downloaded kejin-sen. now the default setting are Kijun:26 and Kijunshift 9. SHould I use this or change it. And in MT4 it is only showing blue line the #1 line, not the red one #0. which one to consider. and as u said tht when price cross kijen-sen then short if it comes down sell. Do i need to compare Kejin-sen wiht present price graph or with MA or EMA. if with MA or EMS wath time peroiod should i use... thanks in advance

Good luck with ur trades and hope u come up with more techniques...

[pipsrus]

Originally Posted by Akash

Hello Pipsrus,
I did try to use the Tenkan-Sen side by side the KS, but I realised that when the TS crossed the KS line, more often than not, the trend would have ended. Perching is using a different way, in which he uses the TS line as one of the factors that confirms what the accelorator oscillator and the stochastics are saying. I personally feel that the TS line is always way too close to price to identify safe trends, but yes if you use it like Perching does, then it works to confirm when the other indicators have identified a trend. As for the KS line, it along with the MA identifies the trend. Basically, the KS line is usually so far from the price, we can suppose that there is already a filter included in it. I mean, you use a filter, just to make sure that the trend is for real and not a spike...right??? Here, only the big spikes cross the KS line, while most of the small ones don't. Also, to confirm that the cross is not a spike, we have a look at the direction of the MA.

I will give a description of my system here again, tomorrow, along with a chart, beause just as Traderone said, the system has changed a bit from the time I did my first post.

Rockin' Tradin'
-Akash

Hi Akash:
I agree that KS provides a clearer picture. Looking forward to the posting of your recent traded chart. By the way which part of India do you live. We saw extreme flooding in the news few months back in certain parts of India. Hopefully your area was spared. Keep up with your good trading strategy. Thanks again.

[suham]

Just like traderone said .... could you please post a description of the system as some of the things have been changed and it would help if all the people were on the same page .... seeing and doing the same things .... hence more chances for correct input

[SRoberts_]

It looks like Akash has retired on his profit already !

[Akash]

Hi,
I am sooooo sorry for not replying since soo long, just been busy making visa arrangements for Austria, gathering up all sorts of proofs that showed that I would come back to India after my vacation. Tough thing to get any country's visa. Anyways, I will be posting replies to everyone right now.
I think this wasn't that good a week, since not too many good trading opportunities. I was busy and was only able to trade on Friday, which I'm glad gave me some profit on my real account .
Rockin' Tradin'
-Akash

[Akash]

Originally Posted by SRoberts_

It looks like Akash has retired on his profit already !

I wish I could agree with the same... hehe...

[Akash]

Originally Posted by fxquest

Great results Akash!

I didn't have the same luck with this system. Actually its more my fault than the system's fault ( I don't trust the first cross so I wait too much before I enter and miss most or all of the move !!).

Could you describe in more detail how you enter a position?

As to profit taking exits - here is something I read and think makes a lot of sense (I think its also called pyramiding). The thing that I like most about it is that it limits the risk if things go against you and allows you to make the most of moves in your favour. It has little advantage in ranging markets where setting a fixed profit target makes more sense. Here is an example:

Enter the position with the minimal lot (lets say at price 1.0000):

@ 1.0028 add another lot (Avg. 1.0014) set S/L at 1.0020
@ 1.0053 add another lot (Avg. 1.0027) set S/L at 1.0038
@ 1.0078 add another lot (Avg. 1.0040) set S/L at 1.0056
you get the idea...

what do you think?

Thanks,
fxquest

Hi FXQuest,
I think the strategy is great, and rather safe too, because initially you're just risking 20 pips, unlike the one that I'm thinking of using, in which you risk 40 pips to begin with if you buy 2 lots. But then again, most ot the moves caught by this method are 20-25 pips moves, more often than not. So, I will have to experiment with this on a demo account and find out for myeslf.
Rockin' Tradin'
-Akash