Please review my STOP AND REVERSE Method ( UK)

[adz]

Between 6.00am and 7.00am look at today's current candle.

Lets say price is above its open so the candle is bullish.

Enter long with a stop 10 pips below the open and a profit target of 2or 3 x risk.

If you are stopped out ( candle is now bearish) enter a short with a stop 1 pip above the current high of the day and a target of 2or 3 x risk.

If stopped out enter long again with a stop 10 points below the open and a target of 2 or 3 x risk. At time of entry , price would have just passed the highest point of the day .

If the third trade fails quit for the day.

If the candle was bearish at the start of the morning just reverse everything.

Any suggestions, comments or feedback are welcome.

Cheers

 

[trendie]

Between 6.00am and 7.00am look at today's current candle.

Lets say price is above its open so the candle is bullish.

Enter long with a stop 10 pips below the open and a profit target of 2or 3 x risk.

If you are stopped out ( candle is now bearish) enter a short with a stop 1 pip above the current high of the day and a target of 2or 3 x risk.

If stopped out enter long again with a stop 10 points below the open and a target of 2 or 3 x risk. At time of entry , price would have just passed the highest point of the day .

If the third trade fails quit for the day.

If the candle was bearish at the start of the morning just reverse everything.

Any suggestions, comments or feedback are welcome.

Cheers

Great concept.
Now, do the drudge number-crunching and evaluate what the outcome would be over the past 5 years, past 3 years, past 1 year.

Also, what market are you looking at? Or does it apply to all.

Having great ideas is the 1% inspiration.
Do you want us to provide the 99% perspiration?

PS: the idea has merit.
1: you can be wrong 2 or 3 times before you quit for the day.
2: if the next day the target of 3x is fulfilled, you have recouped yesterdays losses.
3: early morning trades, so can be traded "part-time".
4: there are many "opening range" breakouts styles, so its not unique as a concept, just a variation of whats already there.
5: if you believe the big guys set the tone for the day, the breakout has underlying logic to it, as long as the bars are of the opening range, or close to.

Good luck with your research.

 

[adz]

Your post reminded me to mention that open trades should be closed out at the end of the day. However, leaving the trade open will of course have its advantages when the market continues in the right direction.

I assume this method could be applied to any 24 hour market.

What prompted you to mention opening range breakout methods ? In my mind there would be no range or break out to be considered.

As far as research goes would it be possible to back test this without having to do it manually ?

cheers

 

[neil]

Your post reminded me to mention that open trades should be closed out at the end of the day. However, leaving the trade open will of course have its advantages when the market continues in the right direction.

I assume this method could be applied to any 24 hour market.

What prompted you to mention opening range breakout methods ? In my mind there would be no range or break out to be considered.

As far as research goes would it be possible to back test this without having to do it manually ?

cheers

Do it manually to avoid conscious or otherwise curve fitting results. Post live trades in a thread of your own (this current one will do).

I fear you may find your idea has been done to death in many similar ventures on here and on other sites (I cannot mention these other sites because Steve will shout at me again). But give it a go with live posts and see how you go.

At worst you will get it out of your head and allow you to consider other approaches. At best you may vary or add to your approach to entering trades and learn about trade management and, most importantly, about yourself as a neophyte trader.

 

[adz]

Fair enough !

I will log my trades here !

Trade day 1 24/05/13

Short - 10 pips
Long + 58 pips

TOTAL + 48 pips
TIFOS 3h 25 m (Time in front of screen)

 

[neil]

Fair enough !

I will log my trades here !

Trade day 1 24/05/13

Short - 10 pips
Long + 58 pips

TOTAL + 48 pips

LIVE plus chart with stop loss would be nice as per other live trade thread on t2w
(Lord Flashearts thread)

 

[trendie]

LIVE plus chart with stop loss would be nice as per other live trade thread on t2w

It would also be useful to know beforehand whether you're gunning for 2 or 3 times risk. Otherwise cynics might suggest your returns were hindsight derived.

 

[adz]

Im not here to prove whether or not my system works or to please any cynics. Far more important than how much money I make is how much time i spend at the screen. That is why i included the TIFOS.

Todays trade was taken on the EUR/USD. Potential cynics have the system outlined if they wish to confirm the results.

cheers

 

[trendie]

Im not here to prove whether or not my system works or to please any cynics. Far more important than how much money I make is how much time i spend at the screen. That is why i included the TIFOS.

Todays trade was taken on the EUR/USD. Potential cynics have the system outlined if they wish to confirm the results.

cheers

Fully accept your point of view and perspective.

Since you have been a member for 4-5 years, you know how some threads get trashed.
Unless you cater for the inevitable people who will ask "if you're risking 10 pips, and your target is 2 or 3 times, risk, how come you're claiming 58 pips return on your winner, instead of just 20 or 30?", you ought to consider such things.

I too couldn't care less, but have been here long enough to know that potentially good threads get lulzed to death.
Just saying.

 

[adz]

A 2 x risk would have left me 10 points up
A 3 x risk would have left me 20 points up

However, the 10 point risk was on the first trade which failed.

The second trade had the stop placed at the low of the day with a 25 point risk and therefor a 50 point TP at 2.1. For the second trade the stop was placed at the low of the day as im sure I outlined in my first post.

cheers

 

[D70]

A 2 x risk would have left me 10 points up
A 3 x risk would have left me 20 points up

However, the 10 point risk was on the first trade which failed.

The second trade had the stop placed at the low of the day with a 25 point risk and therefor a 50 point TP at 2.1. For the second trade the stop was placed at the low of the day as im sure I outlined in my first post.

cheers

Hope you can persevere with this for more than a month.

I assume you are including spreads? So it's 25 point risk from entry price to stop, and likewise, 50 points including spread for profit. I guess as long as you are consistent, it doesnt matter.

Why all the screen time? You can enter first order with stop & limit. You can also enter your 'reverse' order to with an alert? Just an idea.