Items Tagged With h-system

I've followed my new system (h-system) loss yesterday with a win today.  I followed the rules without any deviation by capturing 108 pips essentially negating yesterday's loss of 111 pips.  This was a great trade except for 1 frustrating moment when my exit of the first 2 lots did not execute immediately even though it was more than 20 minutes after the economic release.  This delayed execution actually turned out better for me this time because if the trade did close when I wanted it to, I would have made 60 pips on the first 2 lots.  Instead, it exited minutes later for a 78 pip gain.  The last lot was up as much 50 pips but it couldn't push any higher.  My trailing stop was hit and my last lot closed with a 30 pip profit. 

I feel real good that I didn't do anything stupid like closing my position too early. 

As I write this, it seems like the GBP/USD has some major profit taking going on right now and the pair has reversed almost to my entry price so my exits were perfect.  

Since I started trading my new system last week, it has generated a total of 5 trades, 3 of those being winners, 1 being a mistake (loss), and 1 being a loss.  My average winning trade has produced 114 pips and the average loser, 61 pips.  This is not quite 1:2 risk/reward but close.

FOMC tomorrow...

First, I wanted to mention a new feature of the site called Forex Knowledge Base.  You can also find a link in the "Trader Rich" menu to the left.  This section already contains some frequently asked questions that I get in email (squeeze indicator, brokers, etc) and will ultimately contain much more information that either I had posted in the past or that I've stumbled upon in my journey.  In the future, anyone will also be able to submit a question here that either I will answer or another visitor will answer.  This question can be anything trading related.

I'm still watching the market a little this morning but I'm probably done for the week.  The US CPI announcement at 8:30am was .2%, the CONSENSUS so I don't see any point trying to force anything.  The nice moves started during the European session at around 2 am this morning anyway. 

This week was a good one and so has this month.   Halfway through September, I'm up 273 pips or $2774 with 259 of these pips coming this week. 

I've been manually tracking my new system, the h-system via a spreadsheet since 8/28 and the results have been great.  It's just too bad I didn't start trading it then.

Since 8/28/2006:

12 TOTAL TRADES

11 WINS, 1 LOSS

+979 pips

The average risk/reward has been 2.46. 

I remain cautiously optimistic about this system.  It is in still its infancy and I know that the results from the last 2 weeks are not going to come around every week.  This could have just been pure luck.  Either way, everything seems much clearer when you have a very well defined trading plan as opposed to randomly hitting the buy and sell button.  I hope everyone else had a great week.  If you did, let's hope for more the same next week.

This is where I will put all information pertaining to my production trading system called the h-system. I won't give the specific details of this trading system NOT because I don't want to share but mostly because I don't feel like giving it out will be of any help to anyone for the following reasons:

1. It is important for everyone to create a system that fits their personality and trading style. I'm not a successful trader yet but I've heard that doing so can lead one closer to success.
   
2. I don't want to feel responsible for someone using this system and then losing money because of it.
   
3. I am using real money to trade this system and I've spent a lot of time backtesting and forward testing. Since I just started trading it for real, I still don't feel confident that this system will be a success (see #2)

What I will say is that this system has very simple rules. It uses technical analysis but nothing that anyone hasn't heard of. Here are the rules I will state:

1. Trade the GBP/USD only
2. Trade using the 30min chart
   
3. Trade during the hours of 2am EST and 11am EST only
4. Always enter with 3 lots at the same entry price (unless slippage occurs)
5. Always exit 2 lots after 30 pip profit each (60 pip total)
6. Once the 3rd lot reaches 30 pip profit, trail the stop using the last candle high (if in a short position) or the last candle low (if in a long position)
7. Place stop loss at the 34 low EMA for all 3 long positions on entry and place stop loss at the 34 high EMA for all 3 short positions on entry. Adjust the stop loss every 30 minutes if the 34 EMA high or low has changed.
8. If trade was opened right before a hot zone (economic announcement), get rid of the stop loss and use a mental stop. If 1 minute after the economic announcement the price is below the stop loss in a long trade or above the stop loss in a short trade, exit. This rule is to allow the emotion to clear before exiting a position that may reverse.
9. DO NOT TRADE DURING MAJOR ECONOMIC RELEASES.  (RED RELEASES FROM Forex Factory)
   

The entry is just on price with only 1 confirming indicator. I'm looking into using an additional indicator for confirmation but as of yet, it hasn't proved to be useful.