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Consistent Alpha * Long Term Trading

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  • Consistent Alpha * Long Term Trading

    Hi everyone,

    I've started this tread for everyone to discuss about my trading strategy and answer to any questions you might have. You may find my signals with the name "Consistent Alpha" in ST https://www.simpletrader.net/signal/...Alpha-2xR.html


    Trading Methodology:
    My trading strategy is based on price action on higher time frame such as Daily and Weekly charts. I do not trade anything below Daily time frame but I do use lower time frame charts such as 1 hour and 4 hour for my analysis. I execute all my trades manually but it's all rule based so it's not a fully discretionary strategy. Although I'm a technical trader, I do take note on the fundamental sides especially the high impact news.

    If there's any high impact news within the next 24 hours, I will not take any trade. PPI, PMI, CPI, GDP, Unemployment (Except US NFP) and others economic data will not affect my trading decisions. I'll only stop entering new trade on days with really high impact news event such as Interest Rate Decision, NFP and the speeches of the head of central banks. The number of trades I take each month is quite low averaging in 6 trades. I only trade in trending market and ranging market with clear defined range. In times when the volatility is low or when market chops around, there could be no trades for a week or two.
    Instruments & Brokers:
    The signal I offer in simpletrader.net trade around 40 instruments including Gold and Silver. I do not trade all of them at the same time but monitor if there's any setups popping up. I use several brokers in my own trading such as ICMarkets, FXCM, etc. (To split up brokers risk) but for following my signal, I recommend using ICMarkets as I'm using it to provide trading signals in ST.
    Risk Management:
    Stop Loss is always set before entering any trade to limit the losses and only risk 2% on each trade. Proper risk management is key to long term success. I don't do any hedging or martingale. If the market is not moving in our favor, I will simply cut out the losers and move on to the next opportunity. The average win rate of my strategy is around 45%-50% and offer 1:2.2 RIsk:Reward ratio. I'll only trade when there's setup that offers minimum 1:2 Risk:Reward ratio. With a 50% win rate strategy, it's very normal to have 4-5 losing streaks. On the other hand, we could also have 4-5 winning streaks. Instead of focusing on those 4-5 losing streaks, I think about the next 1000 trades that I'm going to take.
    Growth & Drawdown:
    Expected growth is around 4%-5% per month and a max drawdown of -20% could happen based on the results of our research and testing. However it never went near to the -20% mark and on average the drawdown is less than 10%. Due to the nature of this long term trading strategy, there could be losing months in between of winning months but the winning months will outweighs the losing months in the long run.
    Risk Multiplier:
    For traders and investors with higher risk and reward appetite. The risk multiplier can be set to 1.5 or 2.0 (Depends on personal risk tolerance). It's highly not recommended to set anything beyond 3X risk multiplier and best to keep below 2X risk multiplier. (FYI, I've another signal in ST that offers 2X risk multiplier).
    myfxbook Links:myfxbook Portfolio Links:
    I've been trading the same strategy successfully over the last 4 years with no modification to the core strategy. The best way to get consistent profits year in year out is to stay consistent in our actions and taking all trades regardless whether it has been profitable in the last month or we just got 5 losing streaks. The worst time to stop taking trades and following your strategy is during drawdown period. Treat trading as a long term investment and it will surely provide consistent cash flow over the long term. I don't get bothered by any single trade whether it's a loser or winner as long as I followed my rules.

    If you've any questions, feel free to ask it here. Wish everyone good trading and may success be with you always.

    Tony
    Last edited by AlphaTrader; 11-03-2016, 05:53 AM.

  • #2
    Originally posted by AlphaTrader View Post
    Hi everyone,

    I've started this tread for everyone to discuss about my trading strategy and answer to any questions you might have. You may find my signals with the name "Consistent Alpha" in ST https://www.simpletrader.net/signal/...ent-Alpha.html


    Trading Methodology:
    My trading strategy is based on price action on higher time frame such as Daily and Weekly charts. I do not trade anything below Daily time frame but I do use lower time frame charts such as 1 hour and 4 hour for my analysis. I execute all my trades manually but it's all rule based so it's not a fully discretionary strategy. Although I'm a technical trader, I do take note on the fundamental sides especially the high impact news.

    If there's any high impact news within the next 24 hours, I will not take any trade. PPI, PMI, CPI, GDP, Unemployment (Except US NFP) and others economic data will not affect my trading decisions. I'll only stop entering new trade on days with really high impact news event such as Interest Rate Decision, NFP and the speeches of the head of central banks. The number of trades I take each month is quite low averaging in 6 trades. I only trade in trending market and ranging market with clear defined range. In times when the volatility is low or when market chops around, there could be no trades for a week or two.

    Instruments & Brokers:
    The signal I offer in simpletrader.net trade around 40 instruments including Gold and Silver. I do not trade all of them at the same time but monitor if there's any setups popping up. I use several brokers in my own trading such as ICMarkets, FXCM, etc. (To split up brokers risk) but for following my signal, I recommend using ICMarkets as I'm using it to provide trading signals in ST.

    Risk Management:
    Stop Loss is always set before entering any trade to limit the losses and only risk 2% on each trade. Proper risk management is key to long term success. I don't do any hedging or martingale. If the market is not moving in our favor, I will simply cut out the losers and move on to the next opportunity. The average win rate of my strategy is around 45%-50% and offer 1:2.2 RIsk:Reward ratio. I'll only trade when there's setup that offers minimum 1:2 Risk:Reward ratio. With a 50% win rate strategy, it's very normal to have 4-5 losing streaks. On the other hand, we could also have 4-5 winning streaks. Instead of focusing on those 4-5 losing streaks, I think about the next 1000 trades that I'm going to take.

    Growth & Drawdown:
    Expected growth is around 4%-5% per month and a max drawdown of -20% could happen based on the results of our research and testing. However it never went near to the -20% mark and on average the drawdown is less than 10%. Due to the nature of this long term trading strategy, there could be losing months in between of winning months but the winning months will outweighs the losing months in the long run.

    Risk Multiplier:
    For traders and investors with higher risk and reward appetite. The risk multiplier can be set to 1.5 or 2.0 (Depends on personal risk tolerance). It's highly not recommended to set anything beyond 3X risk multiplier and best to keep below 2X risk multiplier. (FYI, I've another signal in ST that offers 2X risk multiplier).

    myfxbook Links:


    I've been trading the same strategy successfully over the last 4 years with no modification to the core strategy. The best way to get consistent profits year in year out is to stay consistent in our actions and taking all trades regardless whether it has been profitable in the last month or we just got 5 losing streaks. The worst time to stop taking trades and following your strategy is during drawdown period. Treat trading as a long term investment and it will surely provide consistent cash flow over the long term. I don't get bothered by any single trade whether it's a loser or winner as long as I followed my rules.

    If you've any questions, feel free to ask it here. Wish everyone good trading and may success be with you always.

    Tony
    Thanks Tony,

    What's with the pricing? You've got 2 weeks for $43, then $68/mnth.

    So the 2 week trial is more expensive than the monthly subscription amount?
    Would you like free lifetime access to our forex trading room?

    Open an account at Blueberry Markets and save the $97/monthly fee.

    Click here to find out more.

    Comment


    • #3
      Originally posted by Nick View Post
      Thanks Tony,

      What's with the pricing? You've got 2 weeks for $43, then $68/mnth.

      So the 2 week trial is more expensive than the monthly subscription amount?
      Thanks for pointing it out Nick, someone noticed me about that before but I forgot to make the changes. I have deleted the 2 weeks trials. It just isn't enough to test out a long term strategy in two weeks time.

      Comment


      • #4
        Seems like a good strategy and gains, any reason why you cant show 3-4 years of history if that's how long you have been trading?

        How much capital are you trading on?

        Comment


        • #5
          Originally posted by Waleed121 View Post
          Seems like a good strategy and gains, any reason why you cant show 3-4 years of history if that's how long you have been trading?

          How much capital are you trading on?
          Hi Waleed, thanks for your compliment. I've changed a few brokers over the past few years due to different needs. I used to trade on lower time frames, range from 1 hour to 12 hour TF and I've slowly increased the number of instruments over the years from 20 instruments to 40 instruments but the strategy is still the same. For the signal I'm providing, it trades 40 instruments and nothing below Daily TF but still employ lower TF charts for analysis. I used to mitigate broker risk by making only 20% of the capital into the trading account while keeping the 80% of capital in the banks and top up my trading account when I have losing streaks. I still do this to my current trading account but have increased it to 50% so that I do not need to top up my trading account anymore and have a more precise track record. I'm not trading on huge capital, only 54k including my friends and family capital (only 25k have been connected to myfxbook and can be seen publicly). Wish you good luck and good trading.

          Tony

          Comment


          • #6
            Are you Betatrader with another alias?
            System look very similiar.

            Comment


            • #7
              Originally posted by Porter View Post
              Are you Betatrader with another alias?
              System look very similiar.
              Hi Porter, no I'm not Betatrader. I don't think he trades the same way as I do, maybe the only similar thing in our system is our trading time frame, swing trading?

              Comment


              • #8
                Hi Alpha,
                Just subscribed to your signal.
                I'm a fan of swing trading and the way you trade is very much in line with what I like to see.
                Keep on keeping on and thanks for offering your signal.

                PS - it's a little amusing that you and betatrader have a similar style along with similar usernames. maybe a joint signal one day?

                Comment


                • #9
                  Originally posted by FXLION1 View Post
                  Hi Alpha,
                  Just subscribed to your signal.
                  I'm a fan of swing trading and the way you trade is very much in line with what I like to see.
                  Keep on keeping on and thanks for offering your signal.

                  PS - it's a little amusing that you and betatrader have a similar style along with similar usernames. maybe a joint signal one day?
                  Hi FXLion,

                  Thanks for subscribing and your compliment. LOL, maybe all swing traders think alike?

                  Comment


                  • #10
                    I experienced a closure of the last USDCHF trade more than 3 hours after the trade was closed at Master account. This made me lose about 40 pips more that Master's 55 pips loss.
                    I checked with technical support, and they found that the problem was due to Master's disconnection.
                    How can we be sure that it does not happen again?

                    Comment


                    • #11
                      Hi Anthon123, sorry to hear about that. I've checked about it. It's due to disconnection and the technical team from ST has suggested me to host the ST EA on their VPS as well. I'll look into it and make sure it won't happen again. Hopefully it doesn't cross the 3%/6% loss on your side.

                      Comment


                      • #12
                        Hi Anton,
                        Are you copying alpha ' s TP's and SL's in your settings? It's always best to do so when copying a signal like this just in case a connection goes down on either your side, ST's side, or Alpha ' s side. Those levels/orders are absolutely critical in the makeup of a swing trading system's profitability and risk reward per trade.

                        Alpha - Thanks for the email! I like the professionalism.

                        Comment


                        • #13
                          Hi FXLion,

                          Thank you for your compliment, I'll try my best to keep all subscribers updated all the time.
                          BTW, does your USD/CHF trade closed at 0.6960?

                          Comment


                          • #14
                            Originally posted by FXLION1 View Post
                            Hi Anton,
                            Are you copying alpha ' s TP's and SL's in your settings? It's always best to do so when copying a signal like this just in case a connection goes down on either your side, ST's side, or Alpha ' s side. Those levels/orders are absolutely critical in the makeup of a swing trading system's profitability and risk reward per trade.
                            I do copy the TP, but not the SL, for following reasons:
                            - Copying the SL made me several times having a loss when the master had a win. Because of price quotes' differences between my broker and master's, the SL was hit for me, but not for master. Then, the trade turned back and hit the TP on master, while I was out because of SL. This is extremely painful. So, for short-time/scalper signals, it's openly recommended to NOT set the SL (for example, in Smart2/Smart Scalper topic);
                            - Having a visible SL allows brokers to do "stop-hunting";
                            - During my 3-years with SimpleTrader, I never had a single case of master being disconnected for several hours, so I believed the risk of such event was very low.

                            This said, I agree that Consistent Alpha signal is rather a long-term one, so it makes sense to copy the SL for this signal.

                            Comment


                            • #15
                              Originally posted by AlphaTrader View Post
                              Hi Anthon123, sorry to hear about that. I've checked about it. It's due to disconnection and the technical team from ST has suggested me to host the ST EA on their VPS as well. I'll look into it and make sure it won't happen again. Hopefully it doesn't cross the 3%/6% loss on your side.
                              Hello, thanks for your attention.
                              As I mentioned, I was closed at 0.9722 instead of 0.9690, 32 pips more, so it does not went over 6%. But since the previous trade was also a loss, and the current CADJPY sell does not look too promising either, it does hurt a bit.
                              As usually, joining the signal during a losing streak

                              Comment

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