Quick apology I haven’t been able to plot the alert levels for past few days due to other commitments but I have copied in the beta tester resulst from the EURUSD trade, nothing on GBP I’m afraid:
ANALYSIS EURUSD TRADE 20.02.12
Entered the trade @ 1.3223 (alert 14.2.12 1.3215) at 10.:38..
Closed the trade at 12.10 pm @ 1.3262 for 40 pips profit (max loss 6 pips)
I will take a look at todays chart to see how the levels interacted but will be difficult to blog any results as hindsight is a wonderful thing and we need to know what we would have done without the benefit of subsequent candles!
I forgot to blog Friday’s losing trade at -30 pips, I have copied latest e-mail from author below in light of the recent performance of the system
Last Week’s Performance:
Mixed performance last week – but increased opportunities means that we should soon be big and up and running with solid returns.
Date Trade Rate Time P/L
Monday No Trade – – –
Tuesday SELL 78.15 09:45 –
Wednesday BUY 78.60 01:15 -45
Wednesday BUY 78.20 15:02 –
Wednesday SELL 78.40 15:31 +20
Thursday No Trade – – –
Friday SELL 79.32 13:15 –
Sunday BUY 79.62 22:05 -30
This Week’s Opportunities:
I have been running some alternative ratios in the background over the past couple of months and testing is on-going. As I have said in the past I am reluctant to jump to any conclusions as to the whether this is the right decision or not – after all the track record and testing of the system is based on the current system.
However, if market conditions have indeed changed then it would be prudent to adjust the system accordingly – watch this space for updates.
Market wise – I think the current risk on rally is coming to an end. We have all the news, good and bad, out in the open now and it seems difficult to imagine what will drive prices materially higher.
SO I think we will see markets consolidate at around these levels – USDJPY may find some resistance ahead/around 80.00 for the time being also.
The slide continues, a 7 point loss since the last update. new bank :
I will give this until the end of February, update and re-assess
A nice upward move off yesterday’s GBPUSD alert level. Not an easy one to predict and I have actually found that this system seems to work better in the choppier markets as they play between alert levels. However, as predicted there was a hive of activity from the 15670 alert level. There was also a nice hook off the 15770 level, however, i took this as a sell and price action shot through bullishly. Break even day for me 1st trade winner 2nd loser but I am sure many members would have made decent money today.
Another +20 winner from yesterdays range
Date 06-02-12 07-02-12 08-02-12 09-02-12 10-02-12 13-02-12 14-02-12 15-02-12
GBP 5825 (22) * 5925 (08) 5790 (01) 5760 (07) 5810 (13) 5680 (06) 5670 (01)
5780 (07) 5905 (13) 5880 (12) 5770 (10)
5740 (14) 5640 (19)
I am hoping this displays ok, the brackets represent the hour the alert level became valid, e.g. 08 = 8am
Generally if the market is “attacking” the alert from below e.g. a rising market you would take a sell at the alert level (25 pips sl recommended). If attacking from above then take the buy. I am not going to give anymore away at this stage as i think this is enough information to judge the potential of the system without revealing the method of identifying the alert levels. please note I will only show GBP/USD although you get the same info on the EURUSD with the daily alert e-mails. Please only use this to paper trade as there is more to the buy/sell options when alert levels are hit, i just don’t want to give too much away. What I do with the levels above is draw horizontal lines on the charting package or set alarms at these levels. Alternatively if the market is below you could just set a sell at an upper level with a 25 pip tp and 25 pip sl. This would allow those with day jobs to set and forget 1st thing in the morning and allows for a 1:1 risk:reward.
Just thought I would show the beta tester results this week: (Note the alert with date after is the date the alert was identified, alerts can be valid for weeks). Beta tester uses a 1hr chart until an alert level is hit then switches to smaller time frames for the trade itself. To newbies this will look compliated but really isn’t once you have read the manual.
13th Feb: 1 hr. 7 o’clock – spiked above 1.5790 (alert 08.02.12) but closed below at 1.5788
Switched to 10 minute chart…8.00 and 8.10 candle, macd increasing …took the trade at 08.23 @ 1.5805
At 8.30 switched to 5 minute chart…next three candles sideways… 8.50 candle spiked above 1.5825 (alert 06.02.12) but closed below at 1.5822 and price and macd started diminishing….closed the trade at 1.5820 for 15 pips profit. (max 5 in loss)
14th Feb: 1 hr – 2 o’clock … hour chart showing definite down trend…both macd and stochastic to downside….
Switched to 10 minute chart…. 2.10 to 2.50 ‘ perfect hook’back above 1.5710 (alert 30.1.12)….took the trade at 3.03 @ 1.5699 …came close to the next alert at 1.5655 (30.1.12) and decided to come out at 1.5674 for 25 pips profit (max in loss 1)
From Jon: N.B a “perfect hook” is where an alert level is reached and the market retraces and tucks up underneath or above the level (dependent on which direction the level is hit from). This is usually a sign that the market will then bounce off the level E.g if the alert level is 1.5700 and the market comes it it from 1.5650 it would then hit the level retrace, come back up hit again then retrace for a larger move to the downside creating a hook.
What I may do is add the alert levels to the blog, this gives nothing of the strategy away but will allow blog followers to watch or mark up the alert levels (with a horizontal line) to see what happens at these key levels. When you see how acurate they can be, sometimes to within the pip, things get very exciting.
Just to say I haven’t forgotten to blog this, I am in the process of revisiting the system and deciding the best way to blog it as the system is open to interpretation and I want to give it a fair go. At the moment I am siding with just trading the GBP/USD but am unsure as to set a profit target and quit or trade throughout. What I may do is set a target and then report the beta tester results as well so we get a true reflection of two sides of the system. Anyway I will make a decision by the end of the week and start the blog asap.
Sadly after two positive trades we hit full loss this morning. The USD/JPY rocketed (comparable to its usual movements) after an announcement that the bank of Japan was beefing up its asset-buying programs. There were two bullish pin bar formations on the 4hr charts but the system was followed accurately and takes no notice of news reports so as we were I guess.
Another (quick for once) +20 pips from yesterdays range