ForexMorningTrade System

[traderathome]

i hit stop loss 4 wins 3 losses gbpusd did not trigger

looking forward to monday trading good night and great weekend bye

 

[ComeBackJeffrey]

A friend pointed something very interesting out to me today:

If you made 5% per week and compounded it, over a year you'd make over 1000%...

I don't mind risking 5% on a trade with this system...

Regards
Dean

Yeah, and if you start with $500 and compound your 5% per week, do you realize how much you'd have in three years? I know the answer 'cause I ran the numbers.

Just over $1,000,000.

Purely hypothetical, of course. FMT won't trade 5 times a week. So your million could take twice as long.

Drag, huh?

 

[bluedancer]

Trailing stop strategy 3 + 5% risk
---------------------------------------
Total trades - 386
Total wins - 197 (51.04%)
max drawdown - 16%
max consecutive losses - 8 (happened once in May 2009)
Total profit - $78,678.76

5% risk per trade without trailing stop strategy
-------------------------------------------------------

Hi! Thanks for this as well. ok to get a clearer picture, can you explain these 8 losses in a row? How many were 20 pip losses?, and how many 40 pip losses?

Thanks!

 

[PONKO]

PONKO,

I see you trade EurUsd with FMT at London breakout, how well is it doing compared to GbpUsd ? Do you use same settings ?

thanks !..

Hi hammy,
I´m testing manually FMT with EURUSD London (GMT+2 BROKER/07:30) but I´m using Small TP and SL. Yestarday I tested EURUSD in NY with bad results and I had to recover inmediately with other system and in the oposite direction and I decided to test this morning with only 1% risk adjusted to 20pips SL and TP but because of the near Fundamentals in UK I decided to close manually the position with 15 pips. Remember that Mark recommend to trade this system only London Market and all of us know the most of the time the movements in GBPUSD ar much biger than in EURUSD. If you compare those movements with the 2 graphics open in the the same screen you can notice that very easy. Sorry if I extend to much and remember that this is my modest opinion and maybe you know perfect what I´m saying.
Best and have a great weekend..I finish working and I´m going to the beach...
Best of the best
Ponko

 

[hammy66]

Thanks PONKO, yes, I completely agree with your assessment. I was using EurUsd for the NY breakout but I think I will switch to London breakout time with TP=25 or 20 and SL=30.

good luck !

 

[bluedancer]

What do people think of this idea: after a run of losses trade a higher risk on the next trade. In my strat test over the last 2 years theses were the runs of losses:

singles - 39 times
2 losses in a row - 14 times
3 losses in a row - 9 times
4 losses in a row - 5 times

I have not duplicated anyone's results that had 6 or more losses like others have. This strat test was done on the basic EA 40/40 gbp/usd. Sept 1-08 to Sept 8-10

My idea is to increase risk for every first trade after 3 losses, if a 4th loss occurs, keep the high risk for 2 more trades, or until there are 3 wins in a row, then back to regular risk. Or just increase the risk for the first trade after 4 losses in a row, if there are more losses, keep the high % risk until you get a run of 4 wins in a row.

Over the same period here are the runs of wins in a row:

singles - 25 times
2 wins in a row - 10 times
3 wins in a row - 14 times
4 wins in a row - 5 times
5 wins in a row - 8 times
6 wins in a row - 3 times

any thoughts on this idea?

Blue ~ happy like the sky

 

[bluedancer]

Question for Mark,

With the Sept 7 fix of the EA for slippage, do you recommend we manually adjust the TP and SL to the Ideal Price? or does that happen automatically?

Thanks, bluedancer

 

[traderathome]

Mark is awesome

Good support replies my emails fast:cheesy:

All the best.

Additions of few new features be plus plus in performance:drunk:
Featurs:TP management

 

[JOHNCO]

Metatrader5 is coming out in the near future. Will FMT be upgraded to function on that platform?:idea:

 

[Sunnypip]

Am loving the FMT concept. Just as it has been marketed, it is not really necessary to supervise the entire trade. I wondering if we could get an email feature, an email that alerts the trader when the trade opens, and one for the trade close.

This will keep my mind clear whilst at my "real" job..

 

[cb2]

Hi Lotterbe,

regarding the Money Manager “ManageTPv2-4”. If your using the FMT EA to automatically place the trade can you have the ManageTPv2-4 EA on the chart as well ie., 2 EA's on the one chart or do you manually launch a FMT trade

 

[lotterbe]

Hi Lotterbe,

regarding the Money Manager “ManageTPv2-4”. If your using the FMT EA to automatically place the trade can you have the ManageTPv2-4 EA on the chart as well ie., 2 EA's on the one chart or do you manually launch a FMT trade

You can't have more than one EA on a chart. So I have 2 gbpusd charts running, one with the FMT EA and the other with the money manager EA. The money manager is linked to FMT via the Magic Number setting, so it manages all open trades with the FMT's magic number.

 

[cb2]

Legend

 

[lotterbe]

Ok,

Trailing stop strategy 2 + 5% risk
---------------------------------------
Total trades - 386
Total wins - 180 (46.63%)
max drawdown - 15.45%
max consecutive losses - 9
Total profit - $90,989.64

that was so fast - thanks!
Interesting results - even thought the total wins is less than strategy 3, the overall dollars is more. I guess this shows that it is better to let the trade have more breathing space to finally make it to target.

 

[Dean31]

What do people think of this idea: after a run of losses trade a higher risk on the next trade. In my strat test over the last 2 years theses were the runs of losses:

singles - 39 times
2 losses in a row - 14 times
3 losses in a row - 9 times
4 losses in a row - 5 times

I have not duplicated anyone's results that had 6 or more losses like others have. This strat test was done on the basic EA 40/40 gbp/usd. Sept 1-08 to Sept 8-10

My idea is to increase risk for every first trade after 3 losses, if a 4th loss occurs, keep the high risk for 2 more trades, or until there are 3 wins in a row, then back to regular risk. Or just increase the risk for the first trade after 4 losses in a row, if there are more losses, keep the high % risk until you get a run of 4 wins in a row.

Over the same period here are the runs of wins in a row:

singles - 25 times
2 wins in a row - 10 times
3 wins in a row - 14 times
4 wins in a row - 5 times
5 wins in a row - 8 times
6 wins in a row - 3 times

any thoughts on this idea?

Blue ~ happy like the sky

HI -
This sounds similar to the binary system. Basically the system goes like this:
Based on the fact that you will get 2 winners in a row.
Your system's risk/reward must be 1:1, like 40 pip Stop, 40 Pip Profit
You trade in "Rounds" and you always end a round with 2 consequtive winners, ending the round with $40
When you get your first winner, you add up all the lot sizes of all the previous losers of that round and trade that lot size
You will then break even, plus you have the one winner, you close that round with one winner of $40.

A friend of mine did a test to see what would happen if we traded this way over the past 2 years on the back test.

The results are as expected - very good. 144% without compounding.

Also - it is assumed that even though you may have a losing month in terms of pips - you'll probably still make a profit as losing trades are recovered quickly with 2 consecutive wins.

Regards
Dean SA

 

[Dean31]

Just to clarify - the 144% return was for 2009.
2010 made 92% so far.
We never compounded or increased the lot size at all (except to recover losses obviously as the system requires) - used $2000 starting bal and traded $1 per pip.

Dean SA

 

[Dean31]

According to my calculations - if you used the binary system for 2009 and 2010 you wouldn't have had a losing month and should've averaged 240 pips profit per month for 2009.

Regards
Dean SA

 

[tkbieber]

Y'know FMT, after d price turned around missing TP by 1 pip, i closed d trade at BE. Now looking at results of +40pips, d trade took about 8 HOURS TO BEAR FRUIT. Talk about STRESS / PATIENCE. Initially when price started to go to TP level, i tot i could recover my loss yesterday, but when it retraced sharply, i took it out at BE. Should i set TP to be lesser?

The back test that I ran since Jan 2010, I get way better results by using a take profit of 27 pips and sl at 40. However, if you risk less you can have even better results by having a SL around 100 -120 pips. I don't like this much draw-down as I need to risk much less per pip so I don't get margined out. Stick with TP of 27 and SL of 40 and you will get more wins.
I risk $.50 cents per $200 which back testing for last month would have got me from 50-60% gain. Not bad!

 

[lotterbe]

Interesting thoughts - but personally I don't like the idea of increasing my risk to try and recover losses. What if there were even more losses with the higher risk?

It may look good on paper or on backtested results, but I'm sure I would panic if I saw losses turn into even bigger losses, and then would probably back the risk off only to start getting winnners again. Then what to do...

It certainly would call for a lot greater discipline than the default system, with potential catastrophic results. Don't want to be negative, just cautious...

 

[tkbieber]

I'm sorry, but this system does not look very impressive.

Humm, try using money management and this system rocks! I risk .50 cents per $200 in my balance. Had I traded all last month using my settings of 27 pips tp and 40 sl, total wins were: 405 pips
Total loss -160 pips

That is a total win of 245 pips.

Leveraging .50 cents a pip per $200 in my balance that's an astounding 61% gain for the month of August. :clap:
Take another look at it.