Forex Strategy CAD1

[rsmereka]

Originally Posted by Merrygoround

I was referring to the pyramiding part only, to increase profit. The entry and exit logic will be different.

The ADX at +45 tells you it is time to place a trailing stop or just TP , not where to place the SL . See this for example: http://forex-strategies-revealed.com...tion-technique. I learnt a lot from this site.

SL could be placed at latest fractal, which acts as support or resistance once broken.

Say, if you have a master trade that has a 50 pip profit and you want to do an add-on, then you place a trailing stop on the already profitable master trade before entering the first add-on. The same for the second add-on: the first add-on should have a minimal amount of pips in profit. Once that amount is reached, you put trailing stop on the first before doing a second add-on. That way part of the profit gets locked in and only one trade at a time (the one without trailing stop) runs risks of turning into a losing trade. At least that is the way I would do it.

Sounds like a lot of trade management,

There is also the issue of lost profit depending how much of a trailing stop is put on the trades.

I already only open the subsequent trades if the master is 60 pips in profit.

Rick

[Merrygoround]

If you want to hold on to trades longer than one day, I noticed in demotrading that the profit will be slowly melting away by the broker 's commission every 24 hours. For longer term trading there should be brokers who offer no commission . But most brokers that I found who charge no commision (roll-over fee), only have islamic accounts with those conditions. That is not what an regular trader is looking for.

How long do you hold on to an average trade according to this system?

[philmypants]

Originally Posted by Merrygoround

If you want to hold on to trades longer than one day, I noticed in demotrading that the profit will be slowly melting away by the broker 's commission every 24 hours. For longer term trading there should be brokers who offer no commission . But most brokers that I found who charge no commision (roll-over fee), only have islamic accounts with those conditions. That is not what an regular trader is looking for.

How long do you hold on to an average trade according to this system?

When you say commision I think you are reffering to the swap expense. It cost you when you are shorting but you gain when you are buying and holding. You get charged or credited if you are holding thru a certain time of day.

The position is held until the end of the week and sold at whatever it's at if the s/l or t/p wasn't hit.

I believe thats correct, if not Rick can clean up my mess.

[rsmereka]

Originally Posted by philmypants

When you say commision I think you are reffering to the swap expense. It cost you when you are shorting but you gain when you are buying and holding. You get charged or credited if you are holding thru a certain time of day.

The position is held until the end of the week and sold at whatever it's at if the s/l or t/p wasn't hit.

I believe thats correct, if not Rick can clean up my mess.

I think what Merrygoround is referring to is swap or rollover . It can be a credit or debit. It is the difference in the interest rates between the two currency 's. For example based on my current CAD1 trade. I bought $5,000 USD (in my live/real money GoMarkets account). The Canadian interest rate is currently higher than the US interest rate so I am charged swap for holding this money. The charge is added during rollover which most brokers do at 00:00 their local server time. On the other hand, if I bought Loonies, my swap would be positive. But there is a spread or difference between negative and positive swap . The house always makes it's money.

Rick

[educationiskey]

Originally Posted by rsmereka

This review is about the Forex Strategy CAD1 (that's what it is called by it's seller). This is a completely manual system. I purchased the system here (Ebay). I have no affiliation with anyone in conjunction with this review.

This manual system trades the USDCAD pair once a week. Without reveling the complete strategy, the system relies on the pair returning to it's former price.

I have been trading this system for 6 complete weeks as I write this for a winning rate of 83% (5 wins, 1 loss). I traded the first 6 weeks at 2% risk. Starting this week, I increased this to 5% risk.

This system is very easy to maintain. Two pending orders are placed once a week which takes about 5-10 minutes to do the calculations and place the pending orders.

The risk:reward is a very decent 1:1.

All order entry price, SL and TP are registered with the broker 's server so you can actually close down MetaTrader once the pending orders are placed (I don't).

This manual system is very inexpensive. Current price as of right now is $9.59. I paid $5.99.
Link: http://www.myfxbook.com/members/rsmereka/usdcad-manual/125400


Rick

Hi Rick

as you can see im a very newbie to the site...

ive been trading manually for years... Day trading (stressful)

end of day trading (long process scanning graphs with not many pip)

read your progress and must applaud you for your persistence in this game...

In a nut shell no1 has perfected a automated forex system we're aware of or we'd all me millionaires (sarcasm)

In relation to all your posts i decided to purchase CAD1 seeing as its a no brainier at the price

Instead of getting the information i purchased the buyer who i must say is the most honest salesperson i have ever met sent me this response...

"Hi,
In the past two months the strategy did not perform well, wiping out positive results. For January 2012 is picking up again. Overall this strategy has made an average of between 90 and 180 pips a month with only 15 minutes a week. You have the option of buying it now or to come back say by the end of February to see how is performing. I am now officially revising the strategy and Ebay listing description not to be traded from mid November till the end of December. Also, I am refunding you the money now but you have the option of buying it again under the new terms in a few minutes when I update the listing."

Also would u agree there isnt any point documenting a demo account as live accounts dont come close to the out come of the demo's...

Craig

[rsmereka]

Hi Craig and Welcome,

I don't know what the eBay author is talking about. My demo account has consistently done about 3.5-5%/month since June when I started. I also have been trading this system live although I am only in my second week, so far, the system performs exactly like the demo account when trading live.

I would expect this as this is a medium-term system. In my experience, this type of system has a close relationship between demo and live account and a close relationship between different brokers.

My opinion of backtests are that they are rough indicators and a demo account is a better, but still approximate but it depends on the system type. Short -term systems vary widely between demo and live and also between different brokers.

Rick

[Merrygoround]

This manual system got my attention again, since I started to experiment with manual trading on day TF.
I have found some sites that offer a manual trading system for free, granted it is basic, but the most important rules are explained there. I do not want to wheedle this CAD1 system's secrets out of anyone, but it seems to me that there are similarities with the strategies that I found: trading with resistance and support levels , and placing pending orders. If you trade with this strategy on several pairs with limited exposure, you could do great.
Furthermore I do not think that you need an EA anymore on such a high timeframe, provided your system is low maintenance. Aren't most high-level trading systems like that? Maybe you could build one for confirmation of your own trading ideas, or to give a heads up regarding a certain currency pair . But an EA can never replace a good pair of eyes. Manual trading requires taking responsability for your own trading, that is the big difference with "bot trading".
Retreating to higher timeframes reduces the noise, but does not eliminate it. The tricky part of daily trading still remains if you got the direction right. Based on indicators and chart patterns you can take an educated guess, but no more that that.

[educationiskey]

Merrygoround...

I use to Trade years ago and beginning of the year decided to get back into it... Was looking for alternatives to use to grow capital...

I've been trading most days Mon-Fri... Means getting up hours b4 the Markets open looking at diff pairs etc...

Believe it or not in 6 trading days i made 100% gains... this was obviously high risk.. the next 4 days trading i was -115% down...

Best way to trade is manually but at a low risk... My best advice would to be trade the eur/usd theres so much movement on there and if you know a bit about trading and keep educating yourself... with your own strategy i genuinely think you could make a nice little sum month to month... just have to will to put the time in!

[rsmereka]

Note that this system has not traded both the week of Feb 5-11 and the week of Feb 12-18. Neither one of the pending trades was triggered. Also, so far this week, nadda.

Rick