exit short trade. Momentum shifting to the upside
Status: Exit at 9599
Result: +82 pips
Thursday, December 21, 2006
Wednesday, December 20, 2006
Holding the Cable Short
The Cable has moved in our direction. Momentum is still to the downside and trend strength is still good. I will continue to hold.
Status: Hold
Equity up +46 pips
Tuesday, December 19, 2006
Shorting the Cable
Ok, momentum is still shifting in favor of the Dollar and even though we had a huge Sterling rally today, I'm getting a short signal.
Status: Short at 1.9681
Status: Short at 1.9681
Monday, December 18, 2006
Momentum in favor of the GBP
Notice that momentum has been towards the downside of the Cable and that the trend strength is picking up. Today would be a good day to go short but my chart shows that price is resting on support right now. My gut tells me that the pair will still fall, but I want to wait for confirmation. If the momentum continues and the pair breaks its support, I may enter short tomorrow.
Status: Waiting to attack
Sunday, December 17, 2006
Big Pippin's Pipnals
Alright, so I'm going to start something new. I've been backtesting a strategy and so far it seems to be working out pretty well. As a result, I am now at the forward testing stage. I've gone back and tested 6 months of data from February to August 2006 and in 6 months time the system pulled in 516 pips. I tried to pick a choppy time in the market so I could see if the system could withstand the normal range bound environment and at the same I wanted the system to still be profitable in the rare trending environments.
Although I'm not going to reveal the system, I can give you general information on it. The system is a momentum catching system which also attempts to measure the strength of the momentum. When I see a momentum move, I look at the strength and if I see that the strength is building, I enter the market. I exit when I see the momentum strength dip too low because it's basically telling me that the trend may be over.
I tested this system again from September to the current date and the system pulled in 996 pips. There were only 12 trades and the system gave a 58% win ratio. My average win was 194 pips and my average loss was -73 pips. Max drawdown was -192 pips and my max win streak was 593 pips. From September to November we had more of a trending environment which is why the pip gain was higher. So from my testing so far it seems like the system does well in both market environments.
So I will post my momentum charts as well as my trend strength charts. I am only trading the Cable for now and I trade off of a daily chart. You can see from my results that there aren't that many trades but I like that because it keeps me from having to stare at charts all day. Below are what my momentum and trend strength charts look like:
So you can see that I try to enter when I see momentum rising and trend strength gaining. I exit when trend strength drops too low. I will post a chart like this everyday so you can see where momentum and trend strength are at that current time. One rule I have is that I won't enter or hold a trade before the weekend because there is too much risk of something happening and me not being able to do anything until the market re-opens. I usually will have a trade on Monday or Tuesdays and hold it until the end of the week.
Well I think thats pretty much everything I can say about it now. I hope the forward tests work as well as my back tests. I am going to make this a 6 month project. If I'm happy with the results then I'll continue forward. If not, then it's back to the drawing board! Wish me luck!
Although I'm not going to reveal the system, I can give you general information on it. The system is a momentum catching system which also attempts to measure the strength of the momentum. When I see a momentum move, I look at the strength and if I see that the strength is building, I enter the market. I exit when I see the momentum strength dip too low because it's basically telling me that the trend may be over.
I tested this system again from September to the current date and the system pulled in 996 pips. There were only 12 trades and the system gave a 58% win ratio. My average win was 194 pips and my average loss was -73 pips. Max drawdown was -192 pips and my max win streak was 593 pips. From September to November we had more of a trending environment which is why the pip gain was higher. So from my testing so far it seems like the system does well in both market environments.
So I will post my momentum charts as well as my trend strength charts. I am only trading the Cable for now and I trade off of a daily chart. You can see from my results that there aren't that many trades but I like that because it keeps me from having to stare at charts all day. Below are what my momentum and trend strength charts look like:
So you can see that I try to enter when I see momentum rising and trend strength gaining. I exit when trend strength drops too low. I will post a chart like this everyday so you can see where momentum and trend strength are at that current time. One rule I have is that I won't enter or hold a trade before the weekend because there is too much risk of something happening and me not being able to do anything until the market re-opens. I usually will have a trade on Monday or Tuesdays and hold it until the end of the week.
Well I think thats pretty much everything I can say about it now. I hope the forward tests work as well as my back tests. I am going to make this a 6 month project. If I'm happy with the results then I'll continue forward. If not, then it's back to the drawing board! Wish me luck!
Friday, December 08, 2006
Blog Has Moved
Hello everyone. As you know I have moved my posts and am now posting at BabyPips.com. I am very excited because we have just launched our new Version 2 which has many cool new features. Here are just some of the new additions to the site:
- The much anticipated College Lessons
- Interactive quizzes after each lesson
- New Forex Blogs (including mine)
- New Forex Forums
- ForexPedia (a massive Forex encyclopedia)
The site allows for more interactivity between traders and I hope you can be a part of this awesome community. Together we can share ideas and synergize our efforts to become the most bad-azz traders in the Forex :)
Happy trading everyone!
- The much anticipated College Lessons
- Interactive quizzes after each lesson
- New Forex Blogs (including mine)
- New Forex Forums
- ForexPedia (a massive Forex encyclopedia)
The site allows for more interactivity between traders and I hope you can be a part of this awesome community. Together we can share ideas and synergize our efforts to become the most bad-azz traders in the Forex :)
Happy trading everyone!
Tuesday, December 05, 2006
Pippin Aint Easy Is Moving!
Hello everyone,
Starting December 4, 2006, I will be moving locations. From now on you can find my posts at:
http://www.babypips.com/blogs/pippinainteasy/
Thank you for all your support and I hope to see you at my new home.
Happy trading!
-BP
PS: If you have a trading blog and would like to be added to my linkroll, send me an email at bigpippin (at) babypips (dot) com. I will only link you if you are a legitimate trading blog. No vendors will be allowed.
Starting December 4, 2006, I will be moving locations. From now on you can find my posts at:
http://www.babypips.com/blogs/pippinainteasy/
Thank you for all your support and I hope to see you at my new home.
Happy trading!
-BP
PS: If you have a trading blog and would like to be added to my linkroll, send me an email at bigpippin (at) babypips (dot) com. I will only link you if you are a legitimate trading blog. No vendors will be allowed.
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