Great technique for beginners...

[Akash]

Originally Posted by rollingstone

Heres an example of some added info we can use just to give more confidence, as I say I do not want to complicate the system and make us debate if to take a cross or not, but any little extra signs we can have the better.

Obviously we don't want to say we have to have this and that before taking the trade, the 20 EMA does a good job if we can get round the fact that it will give a signal sometimes, then the market will retrace and the signal will be gone.

So, when the final crossing of the KS line happened on Friday on the GBP we had a couple of extra little clues, 5 min chart below shows nice CCI divergence with a small double top coming back in from outside the bollinger band, and when the 60 minute cross happens the 5 min price is already well below the KS line.

As I say these are just extra clues not something to rely on.

The same can be seen on the 30 minute chart as well.

5 Minute chart

Hi RollingStone,
I toatally agree with you, the more clues, the better. Divergence always works great, but in my tests, I am trying to use just these two parameters and some basic common sense. Although, I will be using more indicators when I go live, but right now I'm trying to develop a system for dumb traders like me (no offense to anybody). But yeah I will be looking at other indicators too constantly. I do trade using MACD, pivots and trendlines amongst other things. Just trying to figure out something really very simple though. But, keep your suggestions rolling, this one was great and I will try using CCI , never used it before.
Rockin' Tradin'
-Akash

[fxquest]

Originally Posted by Akash

Hi Fxquest,
Thanks for going through the trouble to program an expert for this system. The results are pretty baddd...I think that back testing is as honest as it gets, but there are a lot of events that a a trader can spot before entering a trade, which an automated system can not. I think that I want to forward test this strategy manually, because I do see a lot of potential in it. I would love it if you could find ways to tweak up this expert and let me know. Also, an expert won't be able to recognise a ranging market. Actually this system does work in ranging markets too, but the range has to be big, I don't know what you call a wide ranging market. What do they call it? Also, one other thing I forgot to mention here was that I don't take profit as soon as I have 20 pips, I wait for it to go higher and then slowly increase the stops. Once profit is beyond 20 I set stops to 15 pips and then just keep moving them. Did you take that in account? I think I would really love it more than anyone else, if you could develop an expert for this system, because I have soooo much to do, which requires for me to stay away from my computer.
Rockin' Tradin'
-Akash

Hi Akash,

If I find some time in the next few weeks I might try to do some more work on the expert.

As to a "wide ranging market" - I am not sure, but I think you can use ATR and ADX to determine how wide and trending the market is (e.g. ATR above a certain threshold (wide market) and ADX is below a certain threshold (no trend) .

[perching]

Hi fxquest,
With DealBook 2 how do you copy a chart window to post on the forum. Were do you make your comments on the chart for posting as well. I have been using the GFT for the past 2 years and would like to share some of my views on the set-ups for taking trades.

What part of the USA do you reside, I'm in Chicago land area.

Thanks
Ed

[fxquest]

Hi Ed,

You can save any window on your screen (dealbook or other) as a file by doing the following:

1) press "ALT+PrintScreen" (this will capture the active window, if you just press PrintScreen it will capture your whole screen).

2) Open an application like "Paint".

3) Paste the screen shot into "Paint" (Edit->Paste). If you get more than the chart you want to post pasted, you can mark it then cut and paste it to a new image.

4) Save it to a file.

There is an option to write text directly on the chart with DealBook FX2 (click the 'abc' button on the chart toolbar) but you can also add lines and text after you paste the screenshot into paint.

I hope this helps.

FX quest

BTW: I am in St. Louis.

[anadi]

hi akash,

i am complete newbie and was wondering if you could explain me a little more abt Kijun-sen; i am a complete novice and want to know more.
also would like to know that which r the trading times that u use. and how exactly do u determine what is going to be high/low for a given currency pair and what time to trade for it.

thanx in advance

[Akash]

Hi,
Another week went by, still testing the system on demo, the results you ask...well look for yourself...

Results for August 29, 2005 to September 2, 2005

GBP/USD

August 29, 2005
Profit: 28 Pips at 10.30 GMT

August 30, 2005
Break Even at 08.00 GMT

August 31, 2005
Profit: 122 Pips at 14.30 GMT

September 1, 2005
NO TRADES

September 2, 2005
NO TRADES


EUR/USD

August 29, 2005
Profit: 20 Pips at 10.30 GMT

August 30, 2005
Break Even at 08.00 GMT

August 31, 2005
Profit: 85 Pips at 14.30 GMT

September 1, 2005
No Trades

September 2, 2005
No Trades


USD/CHF

August 29, 2005
Profit: 92 Pips at 10.30 GMT

August 30, 2005
Break Even at 16.00 GMT

August 31, 2005
Loss: 20 Pips at 06.00 GMT
Profit: 75 Pips at 14.30 GMT

September 1, 2005
Profit: 45 Pips at 08.30 GMT

September 2, 2005
Profit: 20 Pips at 13.30 GMT


USD/JPY

August 29, 2005
No Trades

August 30, 2005
No Trades

August 31, 2005
No Trades

September 1, 2005
Break Even at 10.30 GMT

September 2, 2005
No Trades


TOTAL PROFIT

August 29, 2005
Profit: 140 pips

August 30, 2005
Profit: 0 Pips

August 31, 2005
Profit: 262 Pips

September 1, 2005
Profit: 45 Pips

September 2, 2005
Profit: 20 Pips

Week’s Profit: 467 Pips


Rockin' Tradin'
-Akash

P.S. Also, have a look at my next post, I have included some exceptions in it.

[Akash]

Hi,
A couple of things I needed to mention about the system, that I haven't mentioned earlier.

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.

Rockin' Tradin'
-Akash

[rollingstone]

Hi Akash,

Good work so far, when you quote GMT is the UK time now or UK time -1, as we are currently on BST, just so I can see if my software and KS line shows the same as yours.