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Thread: Winners And Losers Trading System

  1. #1
    I've a buddy that was making $8000 in Foreign Exchange daily starting out with just 10K in demo account with IBFX.

    I questioned him how he did it and his method was rather simple. I wanted to create it as an ea, and so I wrote out the logic to the app here:

    EA Title: Winners and Looses

    User adjustable Factors:
    A - Lot Size Of The two Groups
    B - Minimum Profit Run (In Pips)
    C - Trailing Stop (In Pips)
    D - Loosing Side Stop reduction (In Pips)

    Action Rules:

    At the time the EA is triggered Do the next
    - Open One Buy Trade Of Lot size A
    - Open One Sell Trade Of Lot size A

    - Wait till the buy or the market has moved B pips in its favor
    Example:
    for the BUY Side, the price Would Need to move UP B pips
    for the SELL Side, the price Would Need to move DOWN B pips

    THEN employ a trailing stop loss whose value is C to the profitable commerce

    Let Profits add up before the stop loss is activated.

    Once the stop loss is triggered for the profitable commerce change the loosing trade by adding a trailing stop loss equivalent to D

    When the remaining trade stops out then begin the cycle over again.

    Additional Requirements: None... although It would be good to reveal values of the open positions in the currency pair chart


    Does anyone want to take a crack at this one?

  2. #2
    Scott I think what happens is the hedge's trailing stop changes the minute that the positive transaction closes.

    You're betting that the momentum will continue in the opposite direction so the trailing stop will shut at above breakeven or positive.

    Example)

    Hedge opens at 1.3000 EURUSD. Price moves to 1.3100, then back to 1.3080 (near long w/ tracking stop.) The momentum has become negative, and the trailing stop is initiated on the hedged position. If it reverses back to 1.3100, the stoploss triggers and you lose 20 pips on the commerce. But if it continues back to 1.300, the trailing stop will accompany and you will pick up profit on both sides.

    Quote Originally Posted by ;
    Perhaps I am just dumb, but it is the D cease I am have trouble with. .

    The entire thing hinges on that and I am not so convinced. What if the market continues in the path of the closed transaction?

    Could someone do an example using amounts for every factor? It simply does not seem safe to me...

  3. #3


    In case there wasn't any glimmer of hope...

  4. #4
    I don't see how this would profitable...

    When the profitable trade gets stopped out? Doesn't that imply that the one thing you'll need is that a losing trade? Will your stop loss be in?

    Additionally, what guarantee do you have that your profitable trailing stop will not just be hit and subsequently reverse in the favorable direction again?

    Perhaps you have ever done any testing on this system?

    It seems fine in theory, but in training, how is this working out? I know you have got a friend of a friend, or whatever, but you know the rules. . .why don't you trade it on a demonion and post your own results?

  5. #5
    Quote Originally Posted by ;
    I don't see how this would profitable...

    When the profitable trade gets stopped out? Does not that imply that is a trade? What direction will your stop loss be in?

    Additionally, what guarantee do you have your profitable trailing stop won't only be hit and then reverse in the favorable direction again?

    Perhaps you have done some testing on this system?

    It sounds fine in theory, but in training, how is this working out? I understand you have got a friend of a friend, or anything, but you understand the rules. . .why do not you exchange it on a demonion and post your own results?
    Same old, same old....another Holy Grail....just awaiting the PM to link me to the site for members only area.

    Consistently sounds awesome on paper....people who've been around understand the market will do whatever it needs, when it needs!!

  6. #6
    The stop loss is set on the remaining trade to decrease the amount that it is negative. By placing a stop loss on the loosing trade as the price supposes you already have the momentum of the price action heading for you reducing the reduction on your staying position - In theory all you've got to overcome is your bid/ask spread in order to get the net effect of this trade profitable.

    This system is a poster child for automated trading as you can always enter the trades through the EA more effectively than it is possible to manually. Thereby reducing slippage...

    Note - The Trailing Stop Loss is not employed to the loosing trade until the profitable trade has been closed in your trailing stop loss on the profitable side. Price action momentum is currently reducing the reduction of the remaining pair.

  7. #7
    I get it. The only way to lose on the trade is if the price moves D pips from you after you close the initial position. In this instance, the losing hedge cancels your closed trade and internet -D pips.

    When the losing hedge moves for you, and your trailing stop on the loser is breakeven, in worst you break .

    Otherwise, you receive profit.

  8. #8
    Quote Originally Posted by ;
    I do it. The only way to lose on the trade is if the price goes D pips from you once you close the initial position. In which case, the hedge cancels your closed exchange and internet - based D pips.

    If the losing hedge moves for you, and your trailing stop on the failure is breakeven, at worst you break .

    Otherwise, you receive profit.
    If the profitable side is a lengthy, by way of example, price is going up, up, upward, let us say 120 pips in profit then price begins to fall and strikes are stop loss. Let's say C is 40 pip trailing stop. So we're at 80 pips in profit at the side trade and a 80 pip loss on the side transaction. We handle the 80 pip reduction trade (with D) and hope price continues to fall (in this example) for some internet profit pips. Do I have this right?

    Jim

  9. #9
    r
    Guest
    Sounds like an interesting egy. Except the likely rare event where the loosing place keep loosing following the winning place is closed. In that case you lose a predetermined amount of pips. Well thought.

  10. #10
    Jim that is my understanding. Megaleads can confirm we have it right.

    Quote Originally Posted by ;
    So if the profitable side is a lengthy, for example, price is going up, up, up, let us say 120 pips in profit then price starts to drop and hits are stop loss. Let's say C is 40 pip trailing stop. So now, we are at 80 pips in profit at the extended side trade along with also a 80 pip loss on the short side transaction. So now we manage the 80 pip loss trade (with D) and expect price continues to drop (in this case ) for some net profit pips. Do I have this right?

    Jim

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