My Potential New System called D&P
I'm still working on this one and it's only in its' infancy. It's called D&P which is short for Divergence and Pivot Points. I created a video of a potential trade using this system and it's attached here. I WILL NOT BE TAKING THIS TRADE! THIS IS A BRAIN DUMP ONLY! I find creating a video helps me work through the trade thoroughly. Everyone should do their part to create their own trading system whether you eventually use it or not. It is truly a learning experience.
http://www.forexproject.com/movies/pivot_divergence.html
Another win with the h-system
I had another nice profit today when I got a signal to go long during the European session early this morning. I manually entered the trade at 2 am this morning right when I got home from a night out. I profited 60 pips on the first two lots and my last lot was just stopped out with a 47 pip profit. That's a total of 107 pips.
Since going live last week, this system is up 328 pips.
I'm actually looking into another system that depends on the h-system. It entails reversing if the GBP/USD reaches certain levels. This would be contingent on having a profitable trade. Right now I like what I see. It seems like when the GBP/USD reaches certain levels during the European session and the US session, the pair reverses after 10am EST possibly due to profit taking or lack of liquidity.
It's nice to see this system working out so far but I've been in similar situations before so I remain cautiously optimistic. I feel like I'm further along in this journey than I've been in the past but nowhere near where I have to be to become a full-time trader. I have to say though that I've never had a system like this before that has well established rules with a limited level of discretion. I would recommend that for those of you that haven't already, dedicate your time to developing a system that fits you and learn it well.
Maybe Rob Booker has it right. He gives you a system that he believes in and shows you how to trade it consistently. Stick to the system everyday and use a limited amount of discretion. It's really not the system that's important. What's important is the discipline involved in trading this system.
Big H-system win today
My H-system generated a long signal this morning at around 3 am. I went long 3 lots on the GBP/USD. 2 positions closed out already for a net profit of 60 pips. The last position is still open at +100 pips with a stop at the last 30min candle low so I'm pretty much guaranteed a total profit of 160 pips on this 1 trade.
I'll also be trading what I call the R-system which is really nothing more than following the simple support/resistance, fibonacci, wave rules set forth by Raghee Horner. This system is definately a discretionary system since different people draw different support and resistance lines and fibonacci retracement lines. I don't follow all of her rules but I used Raghee's as a base for mine. I'll post these rules later this week. I've found in my year of trading forex, I always come back to this support and resistance break type system.
I got a long signal using the R-system this morning on the 4-hour EUR/USD chart so I went long 2 lots with 2 different profit targets. 1 lot has already closed out at a profit of 26 pips. The other is still open and up about 30 pips so I've set the stop loss to break even.
So it's been a good day so far before the US session even gets going. +186 pips.
My New Trading System
I've added a new menu item to the left called H Trading System that contains the rules of the trading system and also the results of the system since yesterday. The rules are there now but I haven't added a results table with database data yet. This will be done later.
Inside Day Bollinger Band Turn Trade
There's a new forex article on Investopedia titled, "Inside Day Bollinger Band Turn Trade" by Jamie Saettele. I don't know much about the author except that a lot of his articles involve trading systems. It's a good read because it shows how simple it can be to develop a system that could potentially be your money maker. I remember a Rob Booker seminar where he said that if you put yourself in a room long enough, you can make a trading system out of anything. This is absolutely true. The question is whether this system can be profitable or not. That would all depend on your rules, expectations, money management and a whole lot of other things but it is possible.
Read the article at http://www.investopedia.com/articles/forex/06/BBInsideDay.asp
Forex Trading System
Bollinger Bands of Ultimate Oscillator System
Commodity Channel Index Trading System
Forex Trading System Category
I have added a new category to the right menu called "Forex Trading Systems." I’m going to post trading systems as I read about them in books, online, or any other publication.
The definition of a "trading system" is simply a group of specific rules, or parameters, that determine a point of entry or exit.
The purpose of posting trading systems aren’t so that you can use this particular system to make trades but to learn from them and develop a trading system of your own.
Please feel free to send me any trading systems you know of or comment on trading systems that are posted.
What are the advantages of a trading system? (Source: Investopedia)
- It takes all emotion out of trading – Emotion is often cited as one of the biggest flaws of individual investors. Investors who are unable to cope with losses second guess their decisions and end up losing money. By strictly following a pre-developed system, system traders can forgo the need to make any decisions: after the system is developed and established, trading by means of the system is not empirical since it is automated. By cutting down on these human inefficiencies, system traders can increase profits.
- It can save a lot of time – Once an effective system is developed and optimized, there is little to no effort necessary on the part of the trader. Computers are often used to automate not only the signal generation, but also the actual trading, so the trader is freed from spending time on analysis and making trades.
- It’s easy if you let others do it for you – Need all of the work done for you? Some companies sell trading systems that they have developed. Other companies will give you the signals generated by their internal trading systems for a monthly fee. Be careful, though–many of these companies are fraudulent. Take a close look at when the results they boast about were taken. After all, it’s easy to win in the past. Look for companies that offer a trial, which lets you test out the system in real-time.
