Best Thread The 3 Duck's Trading System

[Captain Currency]

I was thinking this. I saw this system as more a one shot a day thing in the morning (GMT).

Yes shadowninja, so did I!

 

[shadowninja]

Well, never fear, this system has served me well. I seem to be able to win about 40-50 points a day via one of the major FX pairs, so thanks once again for letting us know about it.

 

[nine]

Thanks for the reply Captain Currency,

I am looking for a couple of longer term strategies to complement my normal short term index trading (in pre European hours) so your point about looking to open the trade in the early Euro morning fits my needs well (I can snug a stop until around 1 pm and then its bed time).

MarketBreaker,

If you are looking for a short term orientated forex strategy you may like one I found at FF. The picture looks like below and its described in this thread:

Details here

 

[marketbreaker]

Thanks for the reply Captain Currency,

I am looking for a couple of longer term strategies to complement my normal short term index trading (in pre European hours) so your point about looking to open the trade in the early Euro morning fits my needs well (I can snug a stop until around 1 pm and then its bed time).

MarketBreaker,

If you are looking for a short term orientated forex strategy you may like one I found at FF. The picture looks like below and its described in this thread:

Details here

Thanks for the tip nine, happy trading!

 

[a_gnome]

Hi Captain, thanks for posting the thread.

I've a question: in your original description of the method you advocate starting off with the 4h trend, then the 1h and finally the 5 minutes. In your examples, you wait patiently for the two longer TF's to line up before looking for a cross of the 5 min to line up the 3rd duck. However, in some of MarketMaker's trading examples, he's found situations where the two shorter TF's are lined up in the opposite direction to the 4h and and he's then waiting for the 4h to confirm.

Now I would have thought that it should be the way that you described it rather than the way MM is implementing it. After all you are in the end relying on the persistence of the trend on the longest TF to keep things going. If the 4h is going to flip then you don't have the continuity of the trend on your side, which is your edge. Those are just my thoughts on the matter and I'd very much appreciate yours.

 

[chump]

all you need to remember is the longer timeframe subsumes all below it therefore when you trade against the longer timeframe you are in effect swimming against the tide...this means moves against you will be more prolonged than the moves you are trying to trade with...not impossible to trade,but why make life hard for yourself.

 

[Captain Currency]

Hi Captain, thanks for posting the thread.

I've a question: in your original description of the method you advocate starting off with the 4h trend, then the 1h and finally the 5 minutes. In your examples, you wait patiently for the two longer TF's to line up before looking for a cross of the 5 min to line up the 3rd duck. However, in some of MarketMaker's trading examples, he's found situations where the two shorter TF's are lined up in the opposite direction to the 4h and and he's then waiting for the 4h to confirm.

Now I would have thought that it should be the way that you described it rather than the way MM is implementing it. After all you are in the end relying on the persistence of the trend on the longest TF to keep things going. If the 4h is going to flip then you don't have the continuity of the trend on your side, which is your edge. Those are just my thoughts on the matter and I'd very much appreciate yours.

Hello gnome,

Yes you are 100% correct in your understanding of the "system" - larger TF first, then work you way down. If a trader cant follow that then Iam amazed

 

[Captain Currency]

all you need to remember is the longer timeframe subsumes all below it therefore when you trade against the longer timeframe you are in effect swimming against the tide...this means moves against you will be more prolonged than the moves you are trying to trade with...not impossible to trade,but why make life hard for yourself.

Hello Chump,

Yes agree with your points also - All I can do is show a trader a system and tell them how I use it, If they are intent on trading it differently - what can i do?

I think one of the best replies I got to the system was from a trader called Tess, she said: Tess: I guess those who quickly appreciate exactly what it is you're gently nudging folks towards, will pick it up & run with it


Kind Regards

 

[ampro]

all you need to remember is the longer timeframe subsumes all below it therefore when you trade against the longer timeframe you are in effect swimming against the tide...

...not impossible to trade,but why make life hard for yourself.

Exactly, why indeed.

I think option's comments in post #12 on here, about sums it up nicely.

If there's the slightest chance of ripping a nice, simple strategy or set-up to pieces, most folks will find it

I'm not sure if it's down to greed, boredom, stubborness or what - but you can bet that once a thread with a sensible, common sense approach sprouts up, within a couple pages it usually gets blown to smithereeens.

 

[nine]

Exactly, why indeed.

I think option's comments in post #12 on here, about sums it up nicely.

If there's the slightest chance of ripping a nice, simple strategy or set-up to pieces, most folks will find it

I'm not sure if it's down to greed, boredom, stubborness or what - but you can bet that once a thread with a sensible, common sense approach sprouts up, within a couple pages it usually gets blown to smithereeens.

Its not that ampro.

I remember, years ago, in another career having completed a maintenance manual for some equipment I'd designed. It was 27 pages long and told all you needed to know.

When they finally extracted everything they needed to know from me it was nearly 200 pages long. The same applies with trading strategies: there is assumed knowledge and because different people have different backgrounds and experiences they will fill the gaps differently.

I always find that when I explain something to someone I end up understanding it a great deal more clearly than when I started.

 

[chump]

Ampro,
Let me tell you my thoughts (and apologies to Cap for the aside)... too many would be traders think it is about picking the 'exact' top and bottom segments of price moves...
so they have this idea X % probs x Max move = I'm a genius ......the rest of us understand X% higher x Meat of a move x money management = I'm not a genius ,but I'm putting more money in the bank because my expectancy is HIGHER 'knowing' I am trading with the flow rather than trying to find the edge of it.

So the geniuses keep tinkering trying to sharpen their edge meanwhile the rustle of notes hitting their accounts get's quieter and quieter. So what is a good system for the reasons stated above won't do...it's got to be sharpened

 

[Captain Currency]

Hello Ampro,

I can always rely on this trader to put my thoughts into a common sence text reply :idea: Good to see you posting - hope you got a kick outta seeing you name on reuters!

Kind Regards,

 

[ampro]

......the rest of us understand X% higher x Meat of a move x money management = I'm not a genius ,but I'm putting more money in the bank because my expectancy is HIGHER 'knowing' I am trading with the flow rather than trying to find the edge of it.

And how many times are they prodded & encouraged to adopt the principle you've so adequately described above, on thread after thread after thread?!

A gentle stroll around the popular trading forums anytime you choose, will constantly shine the torch on these ridiculous & mind numbing strategies/systems, which are based primarily around shaving 5 or 10 pips from a shunt via 1 & 5 min charts, sprinting against a headwind.

The costs, wasted mental energy & sheer lop sided risk balances will nuke 99% of them in double quick time.

I'm not suggesting folks can't execute via short end timeframes for specific purposes, but to base a complete strategy around them is suicide on these instruments. Well, in the wrong hands anyway.

Captain,

I know you were mentioned in dispatches, but are you referring to chump in your last comment there re: Reuters? I must have missed that reference?!

Or am I having a blonde moment

 

[Mark R]

Money Management

Hi everyone,

I havent posted on a thread before but have been following this one since it started and follow the logic behind it(and haven't "adapted" it either!) The simplicity of it and clarity of the signals is excellent-thankyou Captain Currency!

I do feel that I'm struggling with money management at the moment though- can anyone point me in the direction of any resources on this subject?
any help would be much appreciated!
rgds

mark

 

[BSD]

Mark, corny title but a very good read on money management:

http://www.amazon.com/Trade-Your-Way-Financial-Freedom/dp/0070647623

This is also good:

http://members.aon.at/tips/moneyMan.htm

 

[rnl16616]

There is a lot of good information at Babypips: http://forums.babypips.com/

 

[BSD]

Btw, Captain, being a firm believer in keeping things simple I like the system you trade, I do something quite similar myself.

One of the first stories about trading I ever heard was how Richard Dennis turned several hundred USD into hundreds of millions through in essence doing nothing much more complicated than going long when prices rose and shorting when they sank.

http://www.tradingblox.com/originalturtles/system.htm

I quite believe that weak minds seek complexity only to mask their lack of understanding.

 

[ampro]

I do feel that I'm struggling with money management at the moment though- can anyone point me in the direction of any resources on this subject?
any help would be much appreciated!

There's a whole sackful of information hidden amongst the threads on here Mark.

Use the search facility at the top of the page & it will pull up all sorts of bits & bobs.

You could also simply google it too - that'll sure keep you quiet for a day or two.

 

[Captain Currency]

Hello Traders,

I have to confess that I have not read a trading book in about 3 years!
I think one gets to a point where they know what action or steps they need to take themself. Even when I read the last book 3 years ago I was saying to myself " I know this stuff already"

There was one little book I read and got a lot of enjoyment its called "Winning at Betfair fo DUMMIES" You probably wont learn anything from it, but I just thought it was a clever little book.

Looks like the ducks are trying to cross under the 4hr 60 sma at the mo!

Kind Regards,

 

[shadowninja]

Can't see anything to trade at the mo.

ETA: removed. conditions changed.