Hi all.
I am in search of a good manual system that will be suited to my lifestyle. I have a job and am a father/husband, so my time is limited, but I am obscessed with finding a way to supplement my income.
I have tried automated systems but want to close the door on that for good as it was leading nowhere. Ideally I would like if someone could help me find a system which generated a good/stable income to supplement my existing income.
I am not looking for extravagant/ridiculous gains or one that makes us of many indicators. The simpler, the better. I just want it to supplement my existing income.
I cannot trade full time and can only trade the following times :
South Africa is GMT+2
The London/US is in session during my time of being awake, hence then I can be involved.
I have an hour or two before work (an hour or two before the london session opens). By the time the London session starts I go to work.
During my day, I have about 5 bouts of 10-15minutes each, which I can use. I also have a lunch hour.
I go to bed when the US session closes.
Google is full of get-rich-quick systems, but I am not looking for something like that. I am hoping to find a more serious system here or be pointed in the right direction.
I am currently enrolled at the school of pipsology(very well prepared btw), and everyhing I thought I knew is now background info. I always thought I knew a thing or two, but boy, was I wrong!
I have thoroughly researched and applied automated trading the last few (+/- 4 years or so) but sadly have nothing to show. Yes there were good times, but they were erased by bad trades. Always the 3 steps forward, 5 back move. I somehow clinged on, believing one day I will come across the hg. What a waste of time! I wish I had come to my senses earlier.
May the green accounts be with you.
2 suggestions for you.
First is the 3 ducks system, there's a thread here. Very simple, a set it up and leave it system.
Second is described in my own thread "Balls Of Steel", basically looking for long term trending pairs that have volatile daily movements so you have to either use a very wide stop or no stop at all while you wait for the trend to move in your direction. Its not for everyone, but once you get used to it you can set your TP and forget about it
You can trade trend following systems on weekly charts and make your updates one time per week in less than an hour profitably. Take the following system:
Enter positions on breaks of the four week price range away from the 200 day moving average with a stop loss just outside the opposite side of the range, as the opposite side of the range moves with your position groom your stop each week to stay just a pip outside the range until it is taken out for a profit or a loss. This is Richard Donchian's old four week system. Run that system on as many pairs as you can in order to make certain you will be in any pair that has a good trend. Risk a total of 12% of your trading capital on all pairs (if you are trading 50 pairs, risk 24 basis points per trade; 12%/50=0.0024%).
Systems like that make money and require just an hour a week and will not matter the time of day that you update your orders. The best time would be Sunday nights, if I am correct your local time is 11:00PM when the forex week begins on Sunday night. Once a week, you could update your orders before bed beginning at 11:00PM on Sunday nights
You can also trade other price ranges (10 weeks, 15 weeks, etc.). In fact it is a good idea to trade a few systems simultaneously in different accounts to make certain you catch the big moves and don't get chopped in sideways expansions and contractions of the price range.
And if you find yourself unable to take position sizes small enough to risk just .0024% per trade, get another dealer that allows smaller position sizes such as Oanda.
Need a system to trade and have as a second job
Quote Originally Posted by Arbitrager on Acid View Post
You can trade trend following systems on weekly charts and make your updates one time per week in less than an hour profitably. Take the following system:
Enter positions on breaks of the four week price range away from the 200 day moving average with a stop loss just outside the opposite side of the range, as the opposite side of the range moves with your position groom your stop each week to stay just a pip outside the range until it is taken out for a profit or a loss. This is Richard Donchian's old four week system. Run that system on as many pairs as you can in order to make certain you will be in any pair that has a good trend. Risk a total of 12% of your trading capital on all pairs (if you are trading 50 pairs, risk 24 basis points per trade; 12%/50=0.0024%).
Systems like that make money and require just an hour a week and will not matter the time of day that you update your orders. The best time would be Sunday nights, if I am correct your local time is 11:00PM when the forex week begins on Sunday night. Once a week, you could update your orders before bed beginning at 11:00PM on Sunday nights
You can also trade other price ranges (10 weeks, 15 weeks, etc.). In fact it is a good idea to trade a few systems simultaneously in different accounts to make certain you catch the big moves and don't get chopped in sideways expansions and contractions of the price range.
And if you find yourself unable to take position sizes small enough to risk just .0024% per trade, get another dealer that allows smaller position sizes such as Oanda.
-Adrian
I have given this a go. Unfortunately the week is already halfway, and it has missed a few nice trades. I am battling a bit with understanding/setting up the MA. How many periods? How does it help filter?
Another question.. Is the sl placed just outside the range of the last candle/bar or outside a range of the imaginary 4 week candle?
Sorry, I tried finding the system on google, but it is not very detailed.
Thank you
Quote Originally Posted by rihan View Post
I have given this a go. Unfortunately the week is already halfway, and it has missed a few nice trades. I am battling a bit with understanding/setting up the MA. How many periods? How does it help filter?
Another question.. Is the sl placed just outside the range of the last candle/bar or outside a range of the imaginary 4 week candle?
Sorry, I tried finding the system on google, but it is not very detailed.
Thank you
The 200 day moving average is used by a very large number of traders throughout the world but you can use a slightly different one if you choose. What you are looking for is MDMA: a medium denomination moving average (that is my own term). The reason the 200 day moving average is so widely used is precisely because it is a medium denomination moving average. All the MDMA tells me is the direction of my trade, I only trade in the direction away from the MDMA. So if the price is above the MDMA I will only trade long and if the price is below the MDMA I will only trade short. The MDMA does not give entries or exits in my implementation, it only gives the direction of trade (long or short).
Donchian used what were ultimately called "channels" known today as "Donchian Channels" or "Price Channels". He entered into trades when those channels were broken in the direction away from the MDMA and closed trades when they were broken in the direction toward the MDMA. This method, I call Donchian Method Trading or "DMT". I explain how to place the entries and stops and how to groom the stops as the trade progresses in this blog post with a video.
The short answer is that I enter if the price moves a pip outside the channel away from the MDMA and I exit if the price moves a pip outside the channel toward the MDMA.
While MDMA and DMT give me the direction of trade and the entries and exits, they do not give me the position size or tell me what markets to trade. I try to follow the advice to choose "Position Sizes In Light Of Consequences Your Buffooneries Imaginably Net" (PSILOCYBIN, pronounced: silo-sigh-bin). The question of position size selection is the most difficult of all, that is where we must spend most of our time and effort.
Check out the thread about Donchian's methods here.
-Adrian