40-100 pips aday trading system

Hi there jim here

I would like to share the most simple and rewarding system with you it requries no indcators only stocastics.

Nothing else to genarate the above pips every day please try it out if you like it i trade live this system every day 7.00 - 5.00 mon to friday were you can trade live with me but first try it out on demo.


IB SYSTEM


This system is very simple and requires only one indicator Please don’t add any other indicator's it will potentially affect the performance of this system.

This system requires patience and time to learn it.


The system works in anytime frame and with any pair

The Indicator you need is Slow Stochastic setting 6.3.3 some platforms will only allow 6.3 that’s ok.

Next the key element of the system contained in all trades is the INSIDE BAR or inside day as some like to call it.

An inside bar or IB is simply when the current bar is less than or equal to the bar to the left of it. The inside bar can also be the same size as the previous bar.


THE INSIDE BAR is a standard technical analysis pattern; however most people over look it. You can also use an outside bar or OB which is the opposite.


The INSIDE BAR is a Powerful Set up!


HOW TO TRADE THE IB

First look for an IB to form then check if it’s a valid IB with the stochastic indicator set up.




STOCASTIC INDICATOR SET UP

when stochastic are below or around the 20 and oversold and starting to hook round look for an IB to go long, When stochastic are up to 80 and above and starting to hook round in overbought look for an IB to go short you will find them the best in trending markets also range bound markets but if the price action is choppy stay out.

The Stochastic don't have to be exactly 80-20 but it is stronger signal if they are. Sometimes as an example they may at 35 as long as they start to turn and hook up and an IB forms it’s a possible valid trade.




To enter a trade wait for the next bar after the IB to go up 2 pips higher than the IB for a buy signal or 2 pips lower for a sell signal.
Also the shadow of the IB must be inside the prior bar as well in the overall size otherwise it’s not a valid signal.



If after the IB formed you get another bar the same size as the IB and it doesn’t go 1-2 pips either way then you may look at up to 3 -4 more bars after the IB bar to confirm a signal and enter a trade. If you don’t get a signal stand a side and wait for a new IB to form.



STOPS & EXITS

For stops and exits you can trail a stop at the bottom of the prior bar to the IB by 2 pips if you’re more Aggressive 2 bars below the prior bar to the IB.

Exit when stochastic cross in the opposite direction but becarefull when going long as when stochastic hits 80 it can hang around a while first before carrying on up or just staying flat in a strong up trend so wait for a hook down and heading under the 80 level or a reversal candle to exit.

Also to exit look for the big numbers if you were trading GBP/USD for example look for the market to turn around at 1, 9000 / 1, 9020 /1, 9050 / 1, 9080

Try not to enter trades around the big numbers wait for price to go through and retrace to the support or resistance then look for an IB to form and take the trade.

I look at a 1 hour chart first and see what the over all trend for the day is going to be then trade off a 15 min chart for the day.

One of the benefits of this System is it can get you into trades early before the crowd.



Thanks

Jim

hi jim123,

I am assuming you are "james" from over on babypips.
overall, an interesting stripped-down simple system to trade.

the stochastics (6,3,3) you posted here is different to the (8,3,3) you posted over there.
(and to the one you send to your skype members)

good idea for beginners, esp as james provides real-time assistance on his skype.
(really funny when the newbies want to make millions on day one, and pester james for advice and inane questions. he/you has great patience.)

Jim,

A couple of questions:

Exit when stochastic cross in the opposite direction ....

Click to expand...

In the example you have given you did not exit at the point where (half way down the trendline) the stochastic crossed in the opposite direction. Have I misunderstood this ?

One of the benefits of this System is it can get you into trades early before the crowd.

Click to expand...

How do you know this ? The Forex market is huge and there are no volume indicators


Paul

Hey Jim.

Thanks for your advice. I am looking to start paper trading fx over the next few months so it will be interesting to see how this works out.

Trader333 said:

Jim,

A couple of questions:



In the example you have given you did not exit at the point where (half way down the trendline) the stochastic crossed in the opposite direction. Have I misunderstood this ?

Paul

Click to expand...

Hi Jim

welcome to T2W . Thanks for sharing your nice ideas, and if it does bag pips then great.

Yes i see what T333 sees also. You could/should/would have exited in the middle section at the bottom of the stochastic, based on your described rules, as inside bars occurred there also.

It would be very helpful if you posted a few more clear screenshots of trades, (good and bad result/winning-losing trades) and explained the entry - exit positions & reasons with some text placed on the charts, as its all slightly "sketchy" still :idea: .

Thanks a lot.

.........
Also,

Does an inside bar include the candle body + the wick, or just the candle body only?

before going long, does the inside bar have to close up, and nefore going short does the inside bar have to close down?

You do have a lot of conditions, such as not entering near 00/50 etc. levels, and referring to the trend direction on the 1 hour chart. which means it is very much a discretionary approach with subjective decisions to be made, across the board.

Do you only take trades in the direction of the 60-min trends on the 15-min chart, or do you trade both ways on the 15-min?
What happens if the 60-min is flat/sideways/trendless?

Thanks.

Hi Jim, how long have you been trading this system and what's the performance?

Stochs tend to work better when you use them as a divergence from price action rather than as a straight proxy.

They can go oversold/overbought and can stay that way for a long time before ‘hooking’ in the reverse direction. And you’ll potentially find a number of false ‘hooks’. You’re almost certain to get an inside day or two before you get one that works. Which is why I ask about how long and the performance of this system.

There is also growing evidence that you need to consider revising the overbought and oversold levels dependent upon the current phase of the underlying: Basically, adjusting the levels to Bull or Bear phase of operations. Have you tried this or experimented with it at all?

You say this works in trending and range bound markets – with just stochs and the same stochs settings? Stochs have significant limitations in trending markets and work better in flat or choppy markets. How are you defining choppy and how do you do so in sufficient time for your system to recognise it?

You say the shadow of the IB must be inside the prior bar as well – that’s the definition of an Inside Bar – where the range is completely inside the range of the previous bar.

I’ve always found it a strange dichotomy that Stochs are based on the assumption that prices tend to close toward the top of the range in an up trend and toward the low of the range on a down trend, but is constructed and tuned primarily around a non-trending scenario.

As I say, a slippery one, but divergence is the way to go if you feel the need to tweak this system.

buying low selling high with an oscillator whether it is RSI, Stochs., MACD etc. may produce 7/10- winning opportunities (of varying sizes).
But like Bramble says, it is the ones that get/hook you in and price keeps on going in the opposite direction for an extended periods of time, basically rendering the indicator useless during this time period.
You may be "hooked" into several consectutive long trades in a falling market, all resulting in losses. The stoch indicator kept getting you in, but its reading beared no resemblance to price.

eg. Stochastic may read 20 at 1.3270. Price falls to 1.3220, during this time the stochastic has also been falling, but it only falls so far, B4 it starts rising again, and thus baring no resemblance to the previous price..........

If the idea of this approach is to keep losses small, and look for optimum/inside bar entries, then OK, the inside bar aspect "might" make a significant difference.
But based on the instructions of what has been posted so far, i am sceptical about any bold claims of consistent profits of 40-100 pips per day.

Thanks.

Hi everyone
To answer all your questions and so i dont repeat my self have a look here it should cover all your questions.


http://forums.babypips.com/free-forex-trading-systems/1487-between-40-100-pips-per-day.html


James

jim123 said:

Hi everyone
To answer all your questions and so i dont repeat my self have a look here it should cover all your questions.


http://forums.babypips.com/free-forex-trading-systems/1487-between-40-100-pips-per-day.html


James

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Hi James

Well i registered with this website, and have begun to view the thread, and was quite shocked that 22 pages/3 weeks into the thread you had only posted one dodgy screenshot showing how your system works.

Its all a bit too sketchy for me :| .

If it does work, i appreciate your generosity, but -

Why did you decide to register at T2W to post the link to this other website in the 1st place, if you did not plan to continue this thread?
Why do you want everyone trading your "holy grail" system?

Thanks again.

PS. i don't mean to sound ungrateful, or to be belittling your efforts, but if i was to mysteriously start spammin websites advertising my free system on another website, my conscience would dictate that -
What i am presenting must be top quality, otherwise i am wasting peoples time!

I also see there is a significant fee to join your skype chat-room.

Hi there

I choose to put the link in simply because the questions that have been asked in here so far have been asked all before so to save time and my poor fingers the link should answer around 99% of questions.

And your 2nd question happy to share.


Jim

JTrader said:

I also see there is a significant fee to join your skype chat-room.

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Hi there i would hardly call it significant but the system is free so the choice is yours.



Jim

Hi Jim

please don't think i am being a prat just for the sake of it!

i have skipped through over half the 60+ page thread link you posted for the other rival website.
So far you have posted around 6 "sketchy"/not very clear/fairly amateurish screenshots.

We have also established your commercial interest in getting people to join your skype chatroom.

PS. That website is also very awkwards btw, as threads are in reverse order, and viewing screenshots, then pressing the back button, takes you to the page prior to the one you were just viewing.

The poll in his thread over at babypips is encouraging with 16 claiming to have made money Vs 3 that have lost. I've just started reading the thread over there, seems ok so far.

OK, i'll go steady on James, after expressing my initial doubts.

Hopefully in the next week or so, my doubts will have been proved ill-founded, and any followers who report back here will be making the 40-100 pips EVERY DAY :arrowu: :idea: .

Good trading all.

jim123 said:

Hi everyone
To answer all your questions and so i dont repeat my self have a look here it should cover all your questions.


http://forums.babypips.com/free-forex-trading-systems/1487-between-40-100-pips-per-day.html


James

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James, if you've taken the trouble to 'repeat yourself' by starting this thread on this site, you can repeat yourself some more here, or not. I'm not hiking over to some other site. Good luck with your system.

TheBramble said:

James, if you've taken the trouble to 'repeat yourself' by starting this thread on this site, you can repeat yourself some more here, or not. I'm not hiking over to some other site. Good luck with your system.

Click to expand...

And if you do go to the trouble of expanding on things here, please post more screenshots & trade explanations than you did over at babypips :idea:.

I think screenshots of trades, with a line or 2 of accompanying text, are the best way to gain a good understanding of how something works.

Thanks a lot.

I've put this system on a few charts, and been watching 'live' for an hour or so friday before I was dragged screaming and kicking on a shopping trip by the other half up to the north of the island.

1st thing I have noticed is that running the same chart with 2 different sb's highlights the first problem.

It is; to enter within a pip or two of an IB and a signal from the stoch.
The sb's I used were cmc and IG and where one chart would form a IB, the other chart would not. So dependent on who you used, you would either be in the trade or not. This is short time frame stuff I must add. Sub 10 mins. Seeing as 15 mins is the proposed time frame it may work differently.

Will have to look at it more on monday given the chance, but the signals taken with the trend do look; (at first impression) pretty good.

Time as ever...

options said:

I've put this system on a few charts, and been watching 'live' for an hour or so friday before I was dragged screaming and kicking on a shopping trip by the other half up to the north of the island.

1st thing I have noticed is that running the same chart with 2 different sb's highlights the first problem.

It is; to enter within a pip or two of an IB and a signal from the stoch.
The sb's I used were cmc and IG and where one chart would form a IB, the other chart would not. So dependent on who you used, you would either be in the trade or not. This is short time frame stuff I must add. Sub 10 mins. Seeing as 15 mins is the proposed time frame it may work differently.

Will have to look at it more on monday given the chance, but the signals taken with the trend do look; (at first impression) pretty good.

Time as ever...

Click to expand...

Hi there is normal thats why i suggest use your own broker and we all trade off oanda demo i find them the most accrute charts.also 15/30 mins are the best charts for day trading i find.


Jim