Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
GBP/USD freebie trading strategy
- Thread starter Newtron Bomb
- Start date
- Watchers 20
Newtron - Around what times do you consider the overnight range to be? i.e. Close of Wall Street till 6 or 7 am etc. I ask because the low this morning was around 7.10 am and would have given a false down BO signal if using 7 am as the end of the overnight range.
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
Lambchops,
I was still in bed at that time... and after i posted i went back to bed. :cheesy:
I would consider whenver you are typically in bed sleeping overnight
So i left an order in for my 1.6230 which as you know is above yesterdays high and straight back to bed i went. We also got a nice pullback at the round figure 1.62 and then shot through ordered was triggered and were now having the pullback at the entry level currently finding support from yesterdays high, although i think it may come a little further back... but who knows until it does :?:
Ive attached a shot of gbp with some levels i will be watching, also in the shot is eu$ with its expanding triangle a little clearer now
I was still in bed at that time... and after i posted i went back to bed. :cheesy:
I would consider whenver you are typically in bed sleeping overnight
So i left an order in for my 1.6230 which as you know is above yesterdays high and straight back to bed i went. We also got a nice pullback at the round figure 1.62 and then shot through ordered was triggered and were now having the pullback at the entry level currently finding support from yesterdays high, although i think it may come a little further back... but who knows until it does :?:
Ive attached a shot of gbp with some levels i will be watching, also in the shot is eu$ with its expanding triangle a little clearer now
Attachments
Last edited:
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
:idea: Just a note how if you had opened a position on the BO of the overnight range @ 1.6180 the next entry would be looking at 1.6250 (75 points higher) there is a pullback right before this level :!: :!:
Just something to consider :cheesy:
Just something to consider :cheesy:
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
In the big picture am bullish, now ives restarted this strat i will be trading gbp so its just beacuse the prices are rising that am long
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
Long gbp 1.6305
Long eu$ 1.1320
Long eu$ 1.1320
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
This is going to the moon.....
Resistance on RSI @75 only concern shaping up like a flat div... I suppose there is no question really... it is a ND top... will see if it holds of breaks the pattern... thinking about taking profits now
Resistance on RSI @75 only concern shaping up like a flat div... I suppose there is no question really... it is a ND top... will see if it holds of breaks the pattern... thinking about taking profits now
Hi Neutron Bomb,
Congrats on your mechanical system. Just a quick question - I think I understand it but would be pleased if you could clarify this point. When you put your stop & reverse 20 points the other side of the 100EMA & then trail it 20 points behind the EMA do you wait till you are stopped out & reversed or do you take profits earlier. From what you have said it would appear that one should wait to be stopped.
For example if the price is 16000 (nice round number for ease) and is just at the 100 EMA then you would place stops to buy at 16020 & stop to sell at 15980. Say for instance if the buy stop is triggered when the price hits 16020 then you change your sell stop to a sell & reverse at 20 points below the EMA & trail it up 20 points beneath EMA until stopped out & reversed.
Sounds nice & easy - I'll have to follow this for a bit
UBend
Congrats on your mechanical system. Just a quick question - I think I understand it but would be pleased if you could clarify this point. When you put your stop & reverse 20 points the other side of the 100EMA & then trail it 20 points behind the EMA do you wait till you are stopped out & reversed or do you take profits earlier. From what you have said it would appear that one should wait to be stopped.
For example if the price is 16000 (nice round number for ease) and is just at the 100 EMA then you would place stops to buy at 16020 & stop to sell at 15980. Say for instance if the buy stop is triggered when the price hits 16020 then you change your sell stop to a sell & reverse at 20 points below the EMA & trail it up 20 points beneath EMA until stopped out & reversed.
Sounds nice & easy - I'll have to follow this for a bit
UBend
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
And a spike top too finish i think...
I didnt really want to hold this over the weekend with my revsal stop miles away at the ema and with such a hansom profit in the bag for this week am out @ 1.6305
It could go higher but who cares i'll start it all over again on monday :cheesy:
For now its finding support at 1.63 and off rsi trend line, but if you look at yesterdays action it formed a 3 peak top right before it consolodated for the day and the time is almost as precise and this wsa also at the 1.62, coincidence :?: I think not :!: :cheesy:
Average entry 1.6126
179 points with the two losses factored in
eu$ still open
I didnt really want to hold this over the weekend with my revsal stop miles away at the ema and with such a hansom profit in the bag for this week am out @ 1.6305
It could go higher but who cares i'll start it all over again on monday :cheesy:
For now its finding support at 1.63 and off rsi trend line, but if you look at yesterdays action it formed a 3 peak top right before it consolodated for the day and the time is almost as precise and this wsa also at the 1.62, coincidence :?: I think not :!: :cheesy:
Average entry 1.6126
179 points with the two losses factored in
eu$ still open
Attachments
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
ubend
The mechanical method at the beginning of this thread is just that and i wrote it as basic as i could to account for those people who need a defined entry and exit. The parts I left out are those part which cannot be rule defined and this really comes down to experience... what i have described real time this week is what it has developed into now but even then there is not much difference... for example the entry levels i use arnt always placed waiting to be triggered as i mentioned i am trying to assess if it will continue or will it go against me... i have had some convenient levels to be fair which hs made it easy but having said that if you plan your trades well it is not uncommon.
To answer yor question, if rigidly followed you are waiting for a cross past the ema to close and reverse your position
My stop is trailed below the ema, but the moves this week have been quite a distance from it i have trailed it on or just above. This was really just to prevent me from putting several orders in throughout the day as the ema will catch up to the stop level... You have to read what is happening on the day. Rules are fine to start off with but you have to be flexible when you get more experience to maximise your gains and reduce your loss's
If i was to trail my stop today then i would be giving away a 100 points and that will do your nut in more than taking a few small loss's being whipped around the ema.
As you get more experienced and observe what the market is doing you will get to know its quirks and trade add them into YOUR trading strategy if you feel them useful
I like the continuity of adding to a position every x points as it means i can go to the gym or go back to bed for an extra hour in the morning, i have text alerts to notify me if am away when it moves through a level am watching.
If you want to screen watch all day then this is fine also and trade the pullbacks, the patterns, RSI highs and lows or what ever you feel comfortable with doing... today alone would have given you 6 entries for the BO or look at a small time frame for just day trading as JonnyT has said he can make more trading a smaller time... but the trade off is more screen time.
With all that said do you need to mess with something that makes you money :?:
The mechanical method at the beginning of this thread is just that and i wrote it as basic as i could to account for those people who need a defined entry and exit. The parts I left out are those part which cannot be rule defined and this really comes down to experience... what i have described real time this week is what it has developed into now but even then there is not much difference... for example the entry levels i use arnt always placed waiting to be triggered as i mentioned i am trying to assess if it will continue or will it go against me... i have had some convenient levels to be fair which hs made it easy but having said that if you plan your trades well it is not uncommon.
To answer yor question, if rigidly followed you are waiting for a cross past the ema to close and reverse your position
My stop is trailed below the ema, but the moves this week have been quite a distance from it i have trailed it on or just above. This was really just to prevent me from putting several orders in throughout the day as the ema will catch up to the stop level... You have to read what is happening on the day. Rules are fine to start off with but you have to be flexible when you get more experience to maximise your gains and reduce your loss's
If i was to trail my stop today then i would be giving away a 100 points and that will do your nut in more than taking a few small loss's being whipped around the ema.
As you get more experienced and observe what the market is doing you will get to know its quirks and trade add them into YOUR trading strategy if you feel them useful
I like the continuity of adding to a position every x points as it means i can go to the gym or go back to bed for an extra hour in the morning, i have text alerts to notify me if am away when it moves through a level am watching.
If you want to screen watch all day then this is fine also and trade the pullbacks, the patterns, RSI highs and lows or what ever you feel comfortable with doing... today alone would have given you 6 entries for the BO or look at a small time frame for just day trading as JonnyT has said he can make more trading a smaller time... but the trade off is more screen time.
With all that said do you need to mess with something that makes you money :?:
Newtron,
I just discovered this site and this thread. Thank you for sharing this strategy. I like it simple and easy to use. However, as a newbie in trading, I have some questions regarding this strategy and please excuse my ignorance and I hope I don't sound too dumb.
(1) I don't understand about "trailing stop 20 pips behind the EMA". Does it mean that the trailing stop is always 20 pips below the current EMA as you trail it?
(2) Is it true that there is no exit rule, but let it stop out?
Thanks,
leonlai
I just discovered this site and this thread. Thank you for sharing this strategy. I like it simple and easy to use. However, as a newbie in trading, I have some questions regarding this strategy and please excuse my ignorance and I hope I don't sound too dumb.
(1) I don't understand about "trailing stop 20 pips behind the EMA". Does it mean that the trailing stop is always 20 pips below the current EMA as you trail it?
(2) Is it true that there is no exit rule, but let it stop out?
Thanks,
leonlai
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
leonlai
(1) I don't understand about "trailing stop 20 pips behind the EMA". Does it mean that the trailing stop is always 20 pips below the current EMA as you trail it?
Yes this is what i meant by this. However, there are a lot of stop management methods that you can employ. This particular one was mentioned as you can easily set a simple rule for its definition.
There are some variations on the same method here
www.trading-forex-systems.com
(2) Is it true that there is no exit rule, but let it stop out?
With this simple method this is also true. When the market trend it would keep you in but it doesn't maximise the potential profit that you could have by taking profits at some other defined point, like taking profits on a target.
This method was posted to give some people a starting point and the basis to build and develop a trading method. In its simple form it will work but there are downsides to only using a trending method especially a lagging method such as this one. You should also consider other entry and exit methods as you learn more about trading and trading the forex markets. Again you may want to check out the link above for some additional methods and ideas that you can use as a part of a more complete method.
I hope this helps you in some way.
Happy Trading
Newtron Bomb
(1) I don't understand about "trailing stop 20 pips behind the EMA". Does it mean that the trailing stop is always 20 pips below the current EMA as you trail it?
Yes this is what i meant by this. However, there are a lot of stop management methods that you can employ. This particular one was mentioned as you can easily set a simple rule for its definition.
There are some variations on the same method here
www.trading-forex-systems.com
(2) Is it true that there is no exit rule, but let it stop out?
With this simple method this is also true. When the market trend it would keep you in but it doesn't maximise the potential profit that you could have by taking profits at some other defined point, like taking profits on a target.
This method was posted to give some people a starting point and the basis to build and develop a trading method. In its simple form it will work but there are downsides to only using a trending method especially a lagging method such as this one. You should also consider other entry and exit methods as you learn more about trading and trading the forex markets. Again you may want to check out the link above for some additional methods and ideas that you can use as a part of a more complete method.
I hope this helps you in some way.
Happy Trading
Newtron Bomb
Newtron, I too have just discovered this thread and like what I see.
Can you tell me if you are still only trading this Long. If so, how has it been going in the last couple of weeks.
Like loenlai, I too will probably have more questions.
Thanks in advance
Can you tell me if you are still only trading this Long. If so, how has it been going in the last couple of weeks.
Like loenlai, I too will probably have more questions.
Thanks in advance
Newtron Bomb
Guest Author
- Messages
- 1,602
- Likes
- 87
Delmonico
I dropped most of the indicators a long time ago so i couldnt tell you how it is working at the moment.
As i mentioed i earier in this post some where that i used this method as it was similar to one i was using trading the Ibex with at the time. I used it in conjunction with patterns and basic support and resistance.
Now i use a combination of methods on multiple time frames.
This is really just a bare bones strategy I posted it this way as i use a lot of judgement/opinions in my trading because i look for certain patterns. The method that is posted is hopefully rule defined and was aimed at the complete novice for this reason to give them a starting point.
What you should do is find something that you are happy with using be it MA's or patterns or other math indicators and learn how to use them. There is no single correct method that works all the time.
Price is king
Kind Regards
Netron Bomb
I dropped most of the indicators a long time ago so i couldnt tell you how it is working at the moment.
As i mentioed i earier in this post some where that i used this method as it was similar to one i was using trading the Ibex with at the time. I used it in conjunction with patterns and basic support and resistance.
Now i use a combination of methods on multiple time frames.
This is really just a bare bones strategy I posted it this way as i use a lot of judgement/opinions in my trading because i look for certain patterns. The method that is posted is hopefully rule defined and was aimed at the complete novice for this reason to give them a starting point.
What you should do is find something that you are happy with using be it MA's or patterns or other math indicators and learn how to use them. There is no single correct method that works all the time.
Price is king
Kind Regards
Netron Bomb
