Yet another newbie system!

[TheWolf]

So to recap and add a bit more detail:
1) Fast MA Crosses SlowMA - possible trade coming up
2) PARSAR crosses slowMA - another indicator that a trade may appear

It is not important for these 2 to happen right? as long as 3-5 happens? It is very unlikely that the 6 steps happen.

[sr2]

Originally Posted by tim_nn

Absolutely. I hope this comment won't confuse anyone, but it strikes me that this system is a sort of very, very, very, very, very large-scale "Ross-hook"!

Seriously, it has a lot in common with Ross-hooks of ultra-slow periodicity charts: it can miss a substantial portion of the trend; it can miss out on a complete trend that doesn't happen to contain one; it's extremely selective; it's a well-defined entry-technique without a similarly well-defined exit; and most important of all it's very reliable indeed.

I'll have to look up what a Ross hook it Tim

A

[sr2]

Originally Posted by TheWolf

It is not important for these 2 to happen right? as long as 3-5 happens? It is very unlikely that the 6 steps happen.

It is important for all the rules to be obeyed. That is the system. However you will see in the charts that the flips also produce trades which are profitable but I have not really looked at those. I mentioned in a previous theread that the pattern (apart from rules 1 and 2) can occur again inside an existing trade which could be used to double up in terms of lots. I think the system itself has a lot of potential even if it is changed to remove a few of the rules and thereby increase the number of trades. I was thinking about it but as the system "has" averaged 74% success rate last year and 80% so far this year I thought best to leave it as it for now. I am looking at variations of the system to increase the number of trades because no doubt just like me people want to trade more often. Waiting for trades is a difficult thing. Often you see a pattern and think "i'm sure I can make money here". If the number of trades generated by the system can be increased and the success rate maintained to a certain extent then I will go with that.

Eliminating rules 1 and 2 are certainly ideas worth investigating. What I would say is give it a go and report back to us. The more people who try out the ideas the less time it takes to move forward. Going through 12 charts is a pain but time well spent as you will see things which others may not.

Hope that helps
SR2

[sr2]

Originally Posted by compro00

Do not constraint ourselves looking for that only perfect exit. I once read a trading book says a good system can use 2 or 3 exit rules. So which ever come first... get out. Keep an open mind...

SR2, thanks for yr generousity. I like yr system very much.

1)Cut losses (max 100pips) - u have done that.
2)Let profit runs (for now 100pips) - need improvements. I will try to chip in ideas...

Thanks for all.

Thanks compro00

Appreciate your feedback. Let us know how you get on.

SR2

[sr2]

Getting bored sitting on my PC so I decided to do a very quick and dirty check of the charts for the repeat trend I mentioned. Here are very approx. results for GBPUSD as I think it is the most volatile.

Rules - take repeat trends without following some of the rules.

1) Follow original rules to take first trade
2) If you see the pattern repeat withour MA cross, PARSAR cross and regardless of where the PARSAR is (i.e. no +15)
3) Also ignore the number of periods for PARSAR

Also instead of aiming for 100 reduce this down as the trend may be slowing. So basically +-100, +-75, +-50 and +-25.

The results are

Start Date of Trend for 2004
=====================
6/2/04 +100 +75
22/3/04 +100
21/5/04 +100 +75 +50
18/6/04 -100
23/7/04 -100 +75 +50
20/8/04 +100 +75 +50 +25
19/11/04 +100 +75 +50
15/12/04 +100 +75

So instead of profits of 400 we have profits of 1075

Start Date of Trend for 2005
=====================
3/1/2005 +100 +75 +50 +25

Instead of +100 we have 250

Like I said there are variations of the system which maybe more profitable. Need to spend time and investigate and also demo.

Someone please write a MT script...my fingers are starting to hurt from all the writing

SR2

[rollingstone]

Remember that in the original system most of the time you will not be able to take the trade at the start of the candle of the psar flip, because as I said earlier it doesn't generally flip until the candle is drawn in the correct direction, so any back tests have to take the trade from the start of the next candle after the flip.

[sr2]

Originally Posted by rollingstone

Remember that in the original system most of the time you will not be able to take the trade at the start of the candle of the psar flip, because as I said earlier it doesn't generally flip until the candle is drawn in the correct direction, so any back tests have to take the trade from the start of the next candle after the flip.

Good point rollingstone. What I think people should do is watch the system or follow the trades on demo. I will of course be following live so that should give us a reasonably good indication of how the system may perform.

SR2

[Zorbas]

SR2

Thanks a lot for your answers to my questions, I understand it a lot better now (almost complet, just need some practice)

Regards
Zorbas