longterm_view wrote:
OFF TOPIC SLIGHTLY

Hi LTV,

Having just read your post, alot of what you are saying resonates with myself also, in that I am not in a position to purchase updata etc, but its something I am working on as a projec - turning trading into more of a business rather than a hobby.

Something else struck a chord though in that you said you price tenders - and was wondering if you were in the same line of work as myself - Estimator for a construction company in Scotland?

Even made me wonder if we have crossed paths.

"I am amazed at how many different types of charts you view, gold, gbp/usd, azn, even wheat!!! You must spend hours searching for set-ups."

I love trading and spend most of my time on a computer looking for great set ups.
My wife is cool thou as she understands my passion so that helps.
Also having a pro software helps with finding things. makes life easier

" If I then start earning enough money I will buy Updata or Metastock."

If you make money from IG then theres no need to change your ways. Stick with them.


I like your style
Get paid to work and trade....so cool

I use this system occasionally as well, but not independently as remo suggests as I do like to trade other stuff and also learn more as well. I use the system with a few adjustments, which I am not advocating and obviously DYOR, but they are things that I apply to the system to find an optimal strategy for myself. Examples are:

1) I only trade the break one way (first break), so in your example on the FTSE yesterday I would have lost as opposed to your break even.
2) I wait until a few days haven't worked and then I trade using it. This I know probability wise is like flipping a coin, or roulette where each spin/toss is an independent event, but I am happy to use this method and ignore the technicalities of probability. For example, the DOW today from memory (no chart on me that I can check easily as at work) has had 3 unseccesful days in row using my system (DYOR) so I will be stumping up on it today when I get to check.
3) I look for other key support/resistance levels which may affect the trade. eg on the DOW today if it is inside the trading range highlighted by Remo yesterday, I would target the full profit with all of my position, if it is outside then I will take some profit off the table prior to hitting this level and have the stop adjusted tighter following a 1 miute chart.

As Remo said, if using something, test it and either continue testing it or using it over a longer term as anyone can have a bad week/month with any strategy.

Regards.

Remo,

Many thanks for your quick and detailed reply.

I will stick to the 2-3 pips above to allow for IG. Your right about it reversing, it’s done that countless times in the 3 days I’ve traded it!!

I am only trading this system as I don’t have too much time.

I’m pretty resilient and I will keep trying, it works perfectly with my work and only takes up a few minutes each day.

I don’t really earn enough to Buy Updata and Metastock and I haven’t really got the time or space at home, but I am making changes. I am re-arranging my house shortly to buy a computer and a desk, I have an ipad and I find it impossible to trade off this. I am making changes at work so I do not have to price tenders at home in the evening, which should free up time for trading in the evening and looking for chart set ups. If I then start earning enough money I will buy Updata or Metastock.

I am amazed at how many different types of charts you view, gold, gbp/usd, azn, even wheat!!! You must spend hours searching for set-ups.

Many thanks.

longterm_view wrote:

Heres my 1 hour trading chart for the last month.
Like i said i dont trade this myself as i find it to boring.
I also adjust for small gap downs so slight modifications

last 20 trading days
12 wins
6 losses
2 neautral

The Key to using this system is of course patience, however more importantly you should also note the next candlestick to confirm the break.

i.e if it breaks to the upside more positive results will be yielded if you get a second candlestick confirmation, i.e another green candle, same applies on a break to the down side, red candle break of lows, followed by second red candle.

Well that what i've noticed and works for me..., perhaps you can included that in your back-testing....

hi Longtermview

The trouble with systems is you have to stick with it solely. If you trade any thing else you will start to doubt yourself. Even after a few trades.
You have to judge the system over the long term and not a few days.
The breaking of the first hour high is the signal so 1 pip should be fine same with the low.
The only problem is you some times find that it reverse back down as you enter.Due to the resistance or support factor.It still a signal thou so have to stick with it.

Test this system out over months.
It does work over the long term.
Most people will give up after a few trades go wrong.
This system work due to the fact your actually trading with the very short term trend as such determined by the first hours trading.

Out of say 20 trades you may get 13 right and 7 wrong one month then next month 11 right 9 wrong but generally speaking it normally is more wins than losses.
Dont take my word for it .Test this thoroughly as I adjust my entries depending on gaps and other factors.

Bottom line
its a system and it needs to be tested by you over a long time.
I personally dont use it as i find it too boring but thats only because i like trading every thing. This system requires discipline and you cant really trade any thing else with it as your likely to give up.

Im also not a fan of free charts like IG so wont trade based on them . But thats just me. Ive had bad experience with them in the past and they may have improved since but once burnt(or a few times in this case) never go back with there charts.
If you put an IG Chart side to side with Metastock or Updata chances are there will be a few errors on IG Charts.Like extreme moves all of a sudden. which messes up the dynamics of the charts.

hope that make sence
remo

On back testing this looked a very good system, i have tried it this week with not the best results.

Am i doing it wrong Remo?

Here are my trades, 8-9 high / low, 2-3 pips above or below, target difference between 8-9.

dl.dropbox.com/u/21384991/FTSE%201HR%20Trades.xls

First day small loss, 2nd day both long and short, cancelled each other out, today long and short as well, hopefully will cancel each other out.

dl.dropbox.com/u/21384991/FTSE%20100%20%28DFB%29.png

Should you buy 5-8 pips above? I'm trading using IG.

Many thanks in advance.

Is this what people say when they say "thats trading"!!

ftse80 wrote:
Your first hour of trading on fx is 10.00pm till 11.00 pm. KI.

I’ve looked at the 1hr trading system, back tested it, and ready to take action.

Only problem is, its stuck between the range!!

Patience!

Its ok when you have a day job though

Also you would have to solely trade this only and nothing else.
That's where the discipline comes in.
For me , I would get bored as I like to trade every thing..
It does work but it's boring..
Remo

First week of paper trading this and it was quite successful but today I tried something a little different and it's made me release that disciplined money management is crucial for this approach.

Ftse80

I'm glad some ones on the ball...

That's me being funny.....dohhhhhhhh
How did I put that comment in.....I'm going back into my hole....

Thanks for spotting the obvious mistake.

It's best used on indexes ....and not currency....

Remo(losing mind)

Maybe silly question but currency trading 24h so when would be first hour of trading?
Does it count from midnight UK time?

Thats handy to know. Thanks Remo.

Fdes

Its best used on indexs or currency.
Shares aint really liquid enough to benefit
remo

Does it work only for index or can it be used for shares also?

Fdes

I have used it a few times over the last few weeks with a few slight modifications. As you say, I use tight money management with tight stops once in profit and also enter a point away and exit a point earlier and look for other resistance levels so I don't always reach the top like today on the FTSE I was stopped out around 5816 instead of around 5832, but it has worked well for me so far at 4 from 4 live trades. I did a bit of back testing to see what seemed to work wel. I am not one to care about lost profits I could have made, I only look at them to find ways to better my strategy, so getting stopped out in profit I am happy with and protecting my capital.

Obviously not long term like you asked, but I am using it as I am at home after having a baby last week, so easy time to try a few trade ideas and trade plans and also have the time to watch the market instead of being at work.

Hi,

I was quite interested to see this simple system in the learning section and decided to paper trade it for a few days using the FTSE. I'm quite impressed by the results and was wondering if anybody has traded this way over a long period or who it was that created this system? Obviously strict money management would be required and any greed element removed but it seems quite an easy and interesting approach if successful over the long term.

Amo