Simple System

trading strategies and money management discussion, code, results

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csbueno
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Postby csbueno » Thu Aug 06, 2009 1:57 pm

noone22 wrote:
csbueno wrote:Try a 30 pips Buy Zone or Sell Zone for GBPJPY, and let it roll


GBPJPY is very fast and furious moving monster.

The problem with Buy Zone is, that
at very first minute of the hour
you don't know for sure (most of the time),
where price will go - up or down.

Which trade to place: buy or sell? If you cannot predict,
it's like a gambling.

Trying to put 2 limit orders at the same time (one buy and one sell)
also not always helps: because price could move up (slightly) to
initiate my buy order and then wipsaw back to give a loss.
Also, sometimes - I don't even have time to place these 2 orders,
because price could start moving so fast, that it will be already in
Buy (or Sell) zone.

Note, that I'm not speaking about steady or trendy price movement
- all the way or down. If it happens to be continue during opening
minute of the hour (and further on) - Buy Zone is a hero.

But when price is hesitating, which way to go,
you're hesitating (even more) and usually
cannot even reach theoreticaly predicted 50% win/loss ratio
for unknown distribution.

It's interesting to try 30 pips BuyZone, what I haven't done
before (it may give more room to move),
after some significant loses on GBPJPY pair,
where even MBT spread is rarely less than 4 pips.




Thats the idea behing GBPJPY, once it starts moving, it moves a lot.
What I usually do, is to set Sl at breakeven after 25 pips; since I also trade eurjpy, I usually take 25-50 on the eurjpy, and. let gbpjpy move. Sometimes it hits my sl, but sometimes I re enter as soon the bz or sz is triggered. in the other way.

My friend Helmy only trades this pair, but his style is different; Me for example, only take a trade if the bz is triggered during the 1st hour. after that sometimes it just ranges until europe opens. But, we never know for sure. Helmy just trades everytime the bz is triggered. and He is very profitable.

Also, price movement is always a gamble. no matter what indi or what tecnichal analysis is used. personally, this is a more logical way to trade, its important to focus on present movements, not in the past.

Regards
Carlos

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kryptons27
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Just to make it clear

Postby kryptons27 » Thu Aug 06, 2009 5:47 pm

Hi I'm Helmy. Carlos and I like to share ideas to each other and he's a good trader. Let me explain the system I used n mentioned by Carlos here. I used TRO BZ theory n modified it.

Pair : GBPJPY
TF : 5 mins
Indicator : TRO BZ

My local time is GMT +8. I usually start my trade at 8.00 am here (open daily candle) and will not trading after 12.00 pm here. I changed the input on TRO's indicator to +20 and -20 (excluding spread).

The rule is simple. From the daily open, when the price cross BZ I will go long and when it cross SZ I will go short. My SL is 10 pips above BZ / below SZ (-50 pips). My TP usually 20-30 pips but sometime I move my SL just to get more pips and to cover my previous loss.

It is very profitable for me. Look at the report below. The RED background is for SHORT and GREEN background for LONG. Don't get me wrong. The reports are the MAXIMUM pips the system can offer.

May 2009 :

Image



Jun 2009 :

Image



July 2009

Image



August 2009

Image


It really work guys. Carlos have put some indicators to filter it n it was good too. I did what the system tell me to do. Like TRO said, never think, just do it. For me grabbing the opportunities is very important. Its good to be afraid but that will only make u lose a good trade. As long as u follow the system it should be fine.


Usually I always take a total of 50 pips gross daily but actually the system offer more. Tell me, is there any system that can offer 19,070 pips in just 3 months n 4 days ???

A very special thanks to TRO for this profitable system...


Kryptons
"Never Ending Opportunities"

jtraderco
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Postby jtraderco » Thu Aug 06, 2009 10:52 pm

can u show please some screenshots of ur trades of yesterday, to make us understand better?

and can u also post the tro bz?

thx very much

regards

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noone22
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Re: Just to make it clear

Postby noone22 » Fri Aug 07, 2009 12:37 am

kryptons27 wrote:The rule is simple. From the daily open, when the price cross BZ I will go long and when it cross SZ I will go short. My SL is 10 pips above BZ / below SZ (-50 pips). My TP usually 20-30 pips


Hi,

Thanx for sharing!

1) You're saying, that your TP is usually 20-30 pips,
in fact you're trading up to 50 or 90 or 300 pips sometimes.
It's not a TRO scalping Buy Zone system anymore,
it's more resembles me a "London Rush System" with 200-300 TP.

2) Could you explain in more details,
what do you mean by "crossing BZ".
As a matter of fact, BuyZone is surrounded by 2 lines -
top and bottom blue ones.
When the event of "crossing of BZ" is happenning
(according to you):
- when price just touch bottom blue line
- when price come through second (top) blue line
- something else

3) Are you looking at any other indicators/timeframes
to confirm your entry?

4) Imagine - green candle goes up, goes through BZ up
and then - starts to move down, becoming red candle
(but you're already in the buy trade and - in loss).
What are you doing then:
- exiting the trade
- wait until your SL of -50 pips is touched
- adjust SL
- something else

5) How do you know, which order to place:
buy or sell at the beginning of the hour
(prior to price will touch either BZ or SZ)
or you're placing both (stradle trade similar to news breakout trading)?

csbueno
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Today Trade

Postby csbueno » Fri Aug 07, 2009 2:32 am

Ok, this is an example of today´s trade.


Daily candle opened at 160.46, so the Buy Zone was 160.76 ans the Sell Zone 160.16

I went short the moment the price hit 160.16


I set my tp at 159.16, but when it started to retrace I close with 60+ pips of profit.




[img][img]http://i28.tinypic.com/27zjbll.jpg[/img][/img]




Regards

Carlos

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lukx
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Postby lukx » Fri Aug 07, 2009 5:10 am

any chance to get this indicator showing daily open and just two lines?

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kryptons27
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Answer

Postby kryptons27 » Fri Aug 07, 2009 8:06 am

Hi Noone22,

The following are the answer for ur question.

1) You're saying, that your TP is usually 20-30 pips,
in fact you're trading up to 50 or 90 or 300 pips sometimes.
It's not a TRO scalping Buy Zone system anymore,
it's more resembles me a "London Rush System" with 200-300 TP.


The idea came from TRO BZ theory. Even the system actually give me 100-300 pips but i took 20-30 pips or more. Sometime I move the SL to new high or low to get more pips or i use trail stop. We never know which trade will give us big pips. Thats why taking small is better than nothing. The system offer us a lot so why dont we take this opportunity to take only 20-30 pips or more?


2) Could you explain in more details,
what do you mean by "crossing BZ".
As a matter of fact, BuyZone is surrounded by 2 lines -
top and bottom blue ones.
When the event of "crossing of BZ" is happenning
(according to you):
- when price just touch bottom blue line
- when price come through second (top) blue line
- something else


I use TRO BZ indicator. I just change the input so it show only 1 blue line n 1 red line. Entry starts as the price cross either BZ or SZ;

straddle-width : 20
channel : 0

Look at the chart below. Its a daily movement on 5 min chart;

Image


The BLUE line is BZ n RED is SZ.
The VIOLET line is my SL for SELL (+10 pips above BZ) while the CYAN line is my SL for BUY (-10 pips below SZ). Usually I didnt add both SL lines on my chart. Just to show u the example :)

REMINDER : This setting is excluding spread. U should add ur spread.

Details;

1st Trade : SELL (cross SZ)
2nd Trade : BUY (cross BZ)
3rd Trade : SELL (cross SZ)
4th Trade : BUY (cross BZ)
5th Trade : SELL (cross SZ)
6th Trade : BUY (cross BZ)
7th Trade : SELL (cross SZ)


3) Are you looking at any other indicators/timeframes
to confirm your entry?


Before, I didnt use any indicator except TRO BZ. But I did look at Support / Resistance n refer higher time frame. But Carlos introduced me few indicators which he mentioned in this forum and its worth to watch it especially e-reg, buzzard, Tro multimeter candle color and Tro Period Data.

Carlos is expert on this. He can explain. :) U can use any indicators u want as ur filter. Personally, I just watch these indicators but my priority is the BZ. Why??? I'll explain later.

4) Imagine - green candle goes up, goes through BZ up
and then - starts to move down, becoming red candle
(but you're already in the buy trade and - in loss).
What are you doing then:
- exiting the trade
- wait until your SL of -50 pips is touched
- adjust SL
- something else


I only exit my trade when it hit my SL / TP and I only adjust my SL if my trade is in POSITIVE position (to get more pips). Look at the chart above;

The 1st trade is sell but the price moves up for 20+ pips and it should be in loss. BUT it didnt hit my SL yet, too far to go. What happen when u exit early? Same as 2nd trade, buy and moves downward for +20 pips, should be loss but the fact is u just miss a possible 50-70 pips if u close ur trade.

I never quit. Look at the chart below;

Image


After 3rd trade u might think u just wasting ur time. The system didnt work. It give me total loss of -42 pips. Then u stop. See what happened after that. 230 pips. Thats a lot man n u just miss it... In this case if I loss my previous trade, I'll wait for another entry n try to cover my loss. If i cant, I'll wait for the next day. In other words, I will trade if my system is valid sell or buy, loss or profit, I dont care. U never know. Following ur system will make u to be a good trader. Look at my report, 3 months with profit daily. Oh, well i did it longer than that...

Its the same scenario if u r too depending on other indicators or prediction. Let say the price hit bz but ur indicator give u short signal or there is prediction saying that GBPJPY will drop. Which one u choose? For me I'll stick to my BZ. I'm not ignoring other indicators or prediction but its worth to watch it. Just watch it out. It might true or not. Before it happen u never know. As I said, its good to be afraid but dont let it control ur trade. Market always moves...n I dont trade on past or future market.

That what Carlos did as mentioned by one of our friend from Poland here. Carlos trade on opposite direction of what the indicators told and he was right. :)


5) How do you know, which order to place:
buy or sell at the beginning of the hour
(prior to price will touch either BZ or SZ)
or you're placing both (stradle trade similar to news breakout trading)?


Beginning of the hour i might put pending sell or buy. If one hit, i close the other. But sometime i do it manually. FIRST COME, FIRST SERVE. Btw, I didnt trade on news. But I do trade on NFP, as TRO said...just be quick :)


The important thing here is ur Money Management. For this BZ system I only trade maximum of 10 trades per day although it is rare. Look at my reports. So, if I loss all the trade it will be maximum of -500 pips. Make sure u have enough on ur account. Manage ur money wisely....


Regards,
Kryptons
"Never Ending Opportunities"

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lukx
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Postby lukx » Fri Aug 07, 2009 11:33 am

so this system works best at Australia time day open? Australia (Sydney) 00:00 local time ?

csbueno
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Postby csbueno » Fri Aug 07, 2009 1:11 pm

lukx wrote:so this system works best at Australia time day open? Australia (Sydney) 00:00 local time ?



Yes, Its better to use AU/JP day open.


Regards

Carlos

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kryptons27
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NFP

Postby kryptons27 » Fri Aug 07, 2009 2:39 pm

Hi guys,

The system work on NFP today...easy pips...nearly 200...

Regards
Krypton

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