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Don4

Dons trading journal GBP/USD

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Well I have been pretty bored the past few days, so i figured i would try and come up with a long term system off the weekly charts, just to pass some time(and to help a friend) this is still very early in my testing but would like to get some opinions. The rules are- 1 trade a week with 6% risk with a R/R at 3 to 1. I tested this on the past 40 weeks I know this is very early in testing,ill probably go back at least 3 years then forward test a while on demo(if it makes the 3 year test) all testing is done manually so i can get a feel for how it will work. What do u think? is 6% to much per trade even though it is 1 trade per week.Some weeks there will be no trades.

 

 

http://www.traderslaboratory.com/forums/attachment.php?attachmentid=1396&stc=1&d=1178495973

System 2.zip

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Yesterday no trade, today tp was hit for +4%,now i have been looking at a longer term system and i believe im onto something good, im going to test this theory with a live trade, i entered at 1.9939 stops are at 1.9924 and tp is at 2.0124 the R/R was to good to pass up so we will see how it goes!!! And no this wasnt a miss type:D

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well my long shot was stoped out for less than 1%,but that was a trade i had to take. The good news is this morning i had a sell sig (on my short term system) and as it stoped one out my TP was hit +4% :D

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Hi Don

 

No one seems to be warning you and I don't know what you know or don't know so I will flap my lips just in case you don't know...

GBPUSD is one of the main source currency pairs for trading in GBPJPY and EURUSD, it has some good swings as a result because it is being used to drive up PY or EU or both. Now GBPUSD, GBPJPY and EURUSD, in fact most pairs, hit the top of the market in late April and are still at near record highs and may well be for a month. It is a difficult time for trading simply because it is unusual.

Many pairs, like EURJPY have been rising steadily for six years so any backtesting you have done may only apply to rising markets, it may be a disaster for topping or falling markets.

The last market top was about Jan or Feb 2006 and this one is different.

Either backtest over that time period and in the subsequent down period or

consider keeping your money in your pocket and just record how your trading system will cope with a falling market.

Apologies for being a doom merchant but you know how forex likes to bite people. Any trading system or robot is essentially dumn, it doesn't know rising from falling or spring from winter, only a human can make the judgement to apply caution when things are not normal. At least don't overtrade by doubling up, its a short road to pain. The slower way is the safer way.

 

Happy Hunting but remember you may also become the prey.

The old PYenner

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PS

Expect some smaller faster swings from GBPUSD in the near future and compare them to swings in PY and EU.

The gameplan has changed significantly in the last 6 months.

Expect more volatility from EU as PY and EU get swung in opposite directions and sometimes in the same direction just to keep you confused.

GBPUSD will stay up longer when PY and EU both go up together.

Oh yeh, taking a buy at the top of the market needs to be done with caution.

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Pyenner, first of all i would like to thank you for your input and views. But my system has never taken fundimentals or technicals into consideration,dont get me wrong once a trade is placed sometimes i will follow along through my own technical anylasis but it doesnt affect my trades in any way.(sometimes my way of trading can be just as unpredictable as the markets) As i stated in the begining this is only a experiment and that if im wrong, i would much rather for it to happen now than later. In the past i have taken many systems and counted them out before they even had a chance, but for this one the market will have to prove me wrong. And if it does i have something waiting for that to. (Im sorry if that sounds a bit cocky, but my faith in god and my belief in myself i know anything is possible)

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Good on ya Don

Hope it works for you.

If your success rate on sells has teasted out as good as the buys then you should be ok.

GBPUSD is a good choice.

FWIW I'm expecting it to go down a bit then set a new high today and stay up longer than usual.

Looks like PU and EU will go up together, time will tell.

Gee the waiting can drive ya nuts.

Gotta go.

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Well im pretty upset with myself right now, all this time day in day out sticking with my rules my plan working hard to reach my goals. And this morning it happened, I completley slept through this morning session and missed my signal, instead of turning the computer off and calling it a day,I had to jump in try to get in late. What a mistake, i was completly out of my element, and felt as though i had just started all over again. I could never get my R/R right ,jumping in and out of trades trying to prove something i guess for oversleeping and not sticking to my rules. Although i just lost alittle over 1% its killing me that i made such a dumb mistake. If i would have lost the 2% by sticking to my plan i would have never thought any thing else about it. So, lesson learned this morning, either get a louder alarm clock:D or if something happens and i cant get in when i recieve my signal,STAY OUT.

 

p.s fridays trade was stoped out this morning(but to me it was still a good trade)

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