15 Pips Per Day Strategy

[paxtoyou]

Hello everyone,

Well, today was kind of a crummy day on the EUR/USD. It seems the first trade would have had you stopped out. The second trade worked fine except that it took forever it seemed getting there (what happened to the volume of traders around 10:30am EST??.. lol).

In light of this and in working to perfect the system, I've decided to make the following changes:

I would advise targeting only 10-11 pips with this method. Its better to be safer than sorry. Also I would also recommend using a 14 min. Stocastic RSI (Relative Strength Index indicator) and when the two MACD's are in the right position with the Slow Stocastic.. your Stocastic RSI should be above the .500 mark. That would be the exact time to make the trade. The shorts could work as well be reversing this (below the .500 mark).

For example, on the second trade of the day (in this case the 11am EST 15 min time frame), you notice that you would have made roughly 15-16 pips on that trade using the three indicators with the 14 min Stocastic RSI below .500.

Had I thought of this before this would have eliminated being stopped out this morning. The drop of 36 pips is most unusual when using this method. If you notice, through backtesting, it doesn't occur that often. However, for those that would like to be more accurate with their trades, I'd suggest using the Stocastic RSI at 14 mins. My method is still be fine tweaked but for the most part, I'm pretty happy with it .

Although your trades may be fewer, this would eliminate that problem of being stopped out more than likely the next time around. The alternative is just to take the 20-25 pip loss when you get stopped out and continue making 80-90% successful trades .

The important thing to remember is that with this method it does follow the trend nicely. If you notice almost 24 pips of the 36 pips were recoved in the same 15 min time frame (8:30am EST) for the first trade. Then you would have been in profit by the following 15 min time frame (9:00am).. and finally your take profit would have triggered by 9:30am. Had the stop loss not been used (sitting in front of the computer, etc), your take profit would have triggered at the 9am EST time frame this morning. The total pips from the very start (of the old method with the 14 min Stocastic RSI and assuming no stop loss being used) would have been 39 pips for the entire trade range. With days like these though, I wouldn't get greedy, go for the 10-11 pips. It will add up in time when you compound it little by little.. trust me .

The second trade of the day began at 10:30am EST. My take profit kicked me out of the trade at 10:45am EST with 11 pips profit (@ 50-1 leverage). The entire length this trade went for 28 pips if you had not used a take profit and just position traded. Again, I'm happy with my 10-11 pips and calling it the day but to each their own .

Take care,
~Steve

[paxtoyou]

Opps, I should have said, 'I'm happy with my 10-11 pips per trade for 2-3 trades per day and calling it a day'. But I know you all knew that .

~Steve

[paxtoyou]

Week in Review:

Since I started posting my results since June 8th, from the 7:30am - 11:30am EST time frame starting June 8th there has been an opportunity for 13 trades in 5 days which works out to almost 3 per day.

Two of the thirteen would have been stopped out based upon the stop levels I recommended initially. You can choose to remain at these levels if you wish or you could set them down a bit further to 45-50 pips. The two trades that did reverse but then corrected in the same 15 min time frame were from 33 to 37 pips. So on this note, it wouldn't be bad to just adjust the stop loss levels to 45-50 pips on the odd chance that you have a spike in the opposite direction at the time you enter into the trade or shortly thereafter.

If you leveraged your trades for 50-1 and set your take profit for 11 pips.. you would have 11 winning trades for a compounded profit of 50% (after deducting losses from the two stopped out trades).

Not too bad for 5 days worth of work! . If the stop losses were set at 45-50 pips, the compounded profit of all 13 trades is 72%.

Does this prove my point that compounded little profits is the way to go?. Why make it hard on yourself. Lets see if this trend continues tomorrow and next week as well .

Wishing you all the best with your trades,
~Steve

[frenz]

Hi Paxtoyou,

good work my friend.

could you please post a chart pls.

thanks

Frenz

[paxtoyou]

Let me see if this works, its the second trade that could have been made today. One is 'Before' the trade and the other is entry into the 'Trade'.

I can't save the pictures as a Jpeg from Oand*. So I had to save them as a Word document. The last two screenshots are using the 14 min Stocastic RSI to narrow in on getting even more exact trades.

Hope this helps,
~Steve

P.S. The second last screenshot you can just see on the 14 min Stocastic RSI that it heads above the .5128 line. I tried to have it show .5000 but it wouldn't go so .5128 will have to do

[paxtoyou]

I forgot to include, the long trade doesn't show on the screenshots for today because I wasn't home at the time the trade began.

~Steve

[paxtoyou]

Sorry guys, don't know what happened on the 14minStocRSI.doc. It should have shown this instead.. sorry about that. This was the main point I wanted to show you in doing this it would have avoided being stopped out if you were using a 20-25 pip stop loss.

Its a little hard to see on this screenshot, but you can at least see the Stocastic RSI is crossing upwards beyond the .5000 point. In this case its the .5128 line.

~Steve

[jgabin]

Originally Posted by feb2865

I agree with you on the time frame as is the london/newyork overlap

Some friends of mine wake up as 3:00 AM EST to trade the london market

Steve, are you trading this strategy in a live account??

Thanks Steve for sharing your strategy.
I am also interested regarding the best timeframe to trade.
Don't you think that the news that usually come out at 8:30 AM EST may kill this system or any other system that is based on indicators ?
Nowadays, we have news at 8:30 AM several times a week...