The Compounding System -
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thread: The Compounding System

  1. #11
    August 29, 2014:

    4th successful day for this particular compounding system.

    As per rules, M5 candle near at 1.31895 so

    - Opened Long position at 1.31895 with 0.1 (SL hit at 1.31795)
    - Since SL hit at 1.31795 so open short position at this respect with 0.2

    - Our TP hit at 1.31695


    Take Profit is achieved and there was no need to open any additional position.

    Results:

    First Long position = -10 Pips
    Second Short standing = 20 Pips


    End Result: -10 20=10 Pips

  2. #12
    I just had a quick visual backtest... what would you consider, maybe to add an 200 SMA as a filter. For instance, price below begin with short; price above begin
    I wanted to ask, just how was your fast visual backtest with this egy.

  3. #13
    quote I wanted to ask, how was your fast visual backtest for this egy.
    It had been silent okay!
    Believing that you want a big account for trading this egy!
    We definately have to take the New York available for trading it. London open would work as well most of the days but if you look at the LO on the 19th of August... this could have been a killer fo the account

  4. #14
    quote It was quiet okay! Considering that you want a big account for trading this egy! We have to take the New York available for trading it. London open would work as well the majority of the days but if you take a look at the LO on the 19th of August... this could have been a killer fo the account
    Yes just NY open and money management is very needed. I know traders have accounts and squandered all money. If we need small loss then there could be profit.

    For me personally I am using,

    $1000 = 0.01 (I am happy with my small profit)

  5. #15
    quote It had been silent fine! Considering that you want a account for trading this egy! We have to take the New York available for trading it. London open would do the job as well the majority of the days but if you take a look at the LO on the 19th of August... this would have become a killer fo the account
    Hi are you sure about Aug 19 LO due to my chart it hits TP in 2nd commerce. But we are not using LO

  6. #16
    Member lcoco's Avatar
    38
    Hello everybody

    What I'd suggest would be to avoid NY open when there is a red news within first hour of NY open. The reason behind it is obvious: Red newsmost likely slippage. You may be missed by you by 10-40 pips an never get to open trade that is opposite. Also perhaps buy if price is over daily open and sell when below DO.

    Just my 2c.

  7. #17
    Instead of slow ahead testing this egy it could be relatively easy to construct an EA round the theory and backtest it for a few years to understand how frequently the account gets margin calls or warms up. This strategy would be more informative and faster.

    That I would be very surprised if this Martingale strategy were the Holy Grail of all Forex wealth, but you never know...


  8. #18
    quote Hi are you certain about Aug 19 LO as in my chart it hits TP in 2nd trade. But we are not using LO
    aahhh... was my fault... did look at the Frankfurt open, sorry for the confusing!
    Depending upon the spread on LO it might have been a winner on the first transaction!
    When spread is greater than 0.3 pip then the next transaction was the green one

  9. #19
    Hello everybody What I'd suggest is to avoid NY open whenever there's a red news within first hour of NY open. The main reason behind it is obvious: Red newsmost likely slippage. You may miss you by 10-40 pips an never get to open trade. Perhaps buy if price is over daily open and sell when. Just my 2c.
    Thank you for involvement. I am analyzing using NY open but I am also contemplating two suggestions and likely we can add it afterwards.

    First suggestion comes from Mr.MA about using SMA200 to pick about initial commerce
    Second suggestion is from rew2k7 and I wish to modify this suggestion in future. If any major news coming at NY open we can use LO.

  10. #20
    Ladies and Gentlemen,

    I only finished a backtest using the simple standard method aahmad29 was providing us in place #1!
    I did run the backtest on an Armada Markets MT4 with 0.1 pip spread and the fxblue trade simulator beginning from the 1st of august to the 29th of august.
    I wanted to see exactly how this system is performing this month because as we all understand august is the month of this year with the lowest volatility.
    As you can see, I put up a $1000 account and my risk on every first trade was correct with 1%.
    The maximum compounds were 3 transactions! Which is really good in my eyes!
    And now there where only two trades that were running during the night.

    You can check the outcomes:

    http://www.fxblue.com/users/Jeffray/stats

    or here:



    https://www.cliqforex.com/attachment...1813101624.rar

    Just a sidenote in the conclusion. I found when my SL got triggered it difficult to click the button that was sell at precisely the same time, so I helped myself with setting up a pending order with TP SL directly on the SL of the current running trade. When TP got struck I deleted the pending order, when SL got struck and the pending order obtained
    triggered I did the same again and did set up a new pending order with TP SL directly on the SL of this running trade! Thats it

    When aahmad29 agrees I would love to run a backtest for august on EU again using London Open.
    Plus a different backtest with Gold (XAUUSD) for august too. Because a quick backtest looked also quiet nice!
    However, I will print it only if it is ok for you friend, because the egy is based solely on EU!!! And I do not want to flood your thread with unnecesarry stuff

    And now... Enjoy the rest of your weekend everyone

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