The Lindencourt DAILY Forex System

[Lost Marble]

There is a thread going on the Lindencourt Fx system and it is two threads which mix up the daily and shorter time frame MX system. If anyone has any experiences with the daily system please post here.

This is the free system they give away on www.lindencourt.net and not the paid system. It is basically a stochastic cross system in the direction of a 100 day moving average.

[joeytrader]

Good idea, Lost Marble. Perhaps, as a group, we can keep a look-out for up-coming trade set-ups, and post them here. In a way, it is like generating our own daily trade signals, so all members here on this forum can benefit.

[san1111]

I'm in also, because as I see there is potential in it!

[synergy]

Good idea! Let's pool our heads together.

[joeytrader]

Since a few other members think this may be a good idea, and I do not mind making a fool of myself, I guess I will take a plunge to try the first ones here then:

 

On my Alpari UK chart (please note, different brokers may use different cut-off time for their day candles, so may produce slightly different results from my charts), for end of day Friday 5 June, I see the following set-ups:

 

(1) GBPUSD: Sell order; SL=200+ pips; move SL to BE when price 100 pips in profit; TP=open, till stoch cross again

(2) EURJPY: Sell order; SL=200+ pips; move SL to BE when price 100 pips in profit; TP=open, till stoch cross again

(3) USDCAD: Buy order; Sl=150 pips; move SL to BE when price 100 pips in profit; TP=open, till stoch cross again

(4) EURUSD: NO trade, stochastic lines below 20

 

These are the only four currency pairs I normally trade. I have not checked others yet.

 

PLEASE, anyone with experience with Lindencourt Day chart trading, please double check my readings, especially for USDCAD, on my chart, the stoch just crossed, and just moved above 20. Are my readings here correct? I am still learning here.

 

When I get more confident about reading Lindencourt daily charts, I am willing to add more currency to my readings.

 

Depending on my schedule, I do not think I can be reliable in doing this everyday. But on the days that I have the time, I do not mind posting my readings here.

 

Obviously, I hope other forum friends can also contribute to watching and adding to the posts here on upcoming valid trades.

Edited June 5, 2010 by joeytrader

[joeytrader]

Lost Marble, I just realized I have not yet asked for your permission before starting to post Lindencourt signals on your thread here. Please tell us if this is a direction you would or would not like to go into. I am more than happy to take your lead here. It is your thread after all, and I do not want to hijack it. I would be more than happy to delete my previous post if this is not the direction you were thinking of going into.

[iwjw]

Hi traders,

if you don't know what to do during the weekend i've got something for you:

http://www.4shared.com/file/ZydaIRk0/LCD.html

It's an indicator for the Daily and an EA

I've compared the signals of the indicator with the trades given in the manual and most of them match

On trade 21/01/2009 was taken after a sunday candle met the rules and I don't have sunday candles. This made me think about the start of the daily candle and that there will be lots of different trade setups depending on your brokers midnight

The EA could only squeeze about 1000 pips out of the trades given in the manual whereas the auther got 2300+ pips.

This is step one of development and if you find it worthwhile we can look where to squeeze the system or maybe some1 finds a bug in the indi.

There are lots of parameters to play around with:

The only external property of the indi is whether or not to ignore the 20/80 rule on the stoch

What I've found out so far is that you leave a lot of pips on the table if you don't trade stoch above/below 80/20

The EA got several methods how/when to close a trade:

- simple TP/SL/TS

- close when price crosses predifined ma (TP/SL/TS should be set big enough)

- close when new daily candle opens-no matter what (worked great on g/u over some periods)

- close when stoch crosses

BT doesn't take much time 'cause there are not that much trades and it's on the daily

Would be nice to get some feedback how tests are going and what/whether to improve

 

edit:

just reread post #6

I'm also not intending to hijack this thread. So if you're going to talk about manual trading only I'll delete my post and move on

Edited June 5, 2010 by iwjw

[Lost Marble]

Lost Marble, I just realized I have not yet asked for your permission before starting to post Lindencourt signals on your thread here. Please tell us if this is a direction you would or would not like to go into. I am more than happy to take your lead here. It is your thread after all, and I do not want to hijack it. I would be more than happy to delete my previous post if this is not the direction you were thinking of going into.

 

Go ahead, we can all get to know the system better then.

[Lost Marble]

Hi traders,

if you don't know what to do during the weekend i've got something for you:

http://www.4shared.com/file/ZydaIRk0/LCD.html..............

 

It's an indicator for the Daily and an EA

 

Thanks for the indicator and EA. For some reason I cannot get the indicator to work. I think this system is better traded manually but I suppose that depends on where you live if you are using a GMT offset of 0.

[iwjw]

I'd like to find out whether the time when a new daily candle starts has major impact on the results.

Therefore I want to break down the system to H1 chart and us ma(2400) instead of ma(100)

But what about the settings for the stoch to get the daily values on H1?

Anyone can help me here?

 

edit:

looks like %K and %D simply have to be multiplied by 24

But what about the slowing?

 

edit2: I've set slowing to 72 also and it seems that it works

Edited June 6, 2010 by iwjw

[Lost Marble]

I'd like to find out whether the time when a new daily candle starts has major impact on the results...............

 

That's a very interesting thought. It would also solve my problem with those pesky sunday bars.

 

http://img708.imageshack.us/img708/5259/7june2010leurusd.gif

Edited June 7, 2010 by Lost Marble
image link

[iwjw]

That's a very interesting thought. It would also solve my problem with those pesky sunday bars.

I've made some small tests playing around with the starthour and indeed got some major differences...until I saw it's obviously because of the bad qualitiy of the historical data (missing H1 bars an so). The optimal hour 2010 didn't work in 2009

There is nothing in the manual that your broker's time has to be near GMT...let's say +/-2 hours or so. That tells me that the starthour should be irrelevant and therewith redundant. (Next thing is that many define start of new trading day is after the rollover swaps are calculated).That would reduce the system to stoch cross and above/below ma

Any thoughts?

Edited June 7, 2010 by iwjw

[iwjw]

I'm just thinking about not to take the trade on the signal candle but to wait until price breaks a support/resistance on H1 timeframe and the signal is still valid

But that would be difficult to code in an ea but for testing the easiest way

Edited June 7, 2010 by iwjw

[Lost Marble]

That would reduce the system to stoch cross and above/below ma

Any thoughts?

 

Surely life can't be that easy, can it? If it is I can throw away all the expensive software, trading platforms and other stuff I have accumulated over the years.

[iwjw]

Surely life can't be that easy, can it? If it is I can throw away all the expensive software, trading platforms and other stuff I have accumulated over the years.

 

you're right, life is harder if you have to sit in front of your computer waiting for a new daily candle to open....just kidding

What I was trying to point out is that it doesn't matter whether the signal occurs on D1 open or H1 open because there is no common time for a new D1 candle

[Lost Marble]

I agree, it doesn't seem to make much difference at what time of day the signal occurs. But it does seem more accurate on the hourly chart. If you had taken the EURUSD signal in the chart above (post #11) based on an hourly chart you would have gone short at 1.22870. On the daily chart you would have gone short at 1.22702 but you cannot base a system on one theoretical trade.

[joeytrader]

Still using Alpari day candle, for end of day Monday 7 May, this is what I have so far:

 

(1) GBPUSD: sale trade from end of day 4 May still open, currently in drawdown about -50 pips

 

(2) EURJPY: SL moved to break-even when in +100 pips profit, but today stopped out at BE

 

(3) USDCAD: buy trade from end of day 4 May still open, currently in drawdown about -80 pips

 

(4) EURUSD: no signal

[Lost Marble]

According to my chart for USDCAD you would have bought the open on the 4th June at 1.04007 and be about 150 pips in profit. I use ODL as my broker.

 

http://img94.imageshack.us/img94/1103/08june2010usdcad.gif

Edited June 8, 2010 by Lost Marble
image

[joeytrader]

According to my chart for USDCAD you would have bought the open on the 4th June at 1.04007 and be about 150 pips in profit. I use ODL as my broker.

 

http://img94.imageshack.us/img94/1103/08june2010usdcad.gif

 

Good for you. I am still new with using Lindencourt on the Day chart. So it is good to compare notes.

 

I do have a question, looking at your chart, by the end of day of 3 May, the Stoch was still under the 20 line, so I thought we are not supposed to go in until it rises above the 20 line, which was sometimes during the day of the 4 May. But could you tell right at the open of 4 May candle that the Stoch would be above 20 yet? And a related question, do we need to wait till the candle closes to place trade, or if at any time during the middle of a day, if the conditions are met, then we can enter a trade? Help me learn?

[Lost Marble]

Hi joeytrader

 

Firstly, you need to check your calendar, we are in June at the moment!

 

At the open of the 4th June the stochastics would have crossed. Whether the stochastic was below 20 is difficult to determine but as you say at sometime during the day this would have occurred and at the open it would have been pretty close. I think that with this type of trading the rules cannot be too hard and fast. If you had the cross and the market was going up, it was about the 100 day ma I think it was a buy.

[joeytrader]

Hi joeytrader

 

Firstly, you need to check your calendar, we are in June at the moment!

 

At the open of the 4th June the stochastics would have crossed. Whether the stochastic was below 20 is difficult to determine but as you say at sometime during the day this would have occurred and at the open it would have been pretty close. I think that with this type of trading the rules cannot be too hard and fast. If you had the cross and the market was going up, it was about the 100 day ma I think it was a buy.

 

Sorry about the May vs June, it as a typo. Me bad.

 

But I think you answered my question anyway. So at the end of June 3, the stoch was definitely angling up and almost at the 20 line. And with more experience at this, I would have taken the trade either at the start of June 4 candle, or definitely go in during the day of June 4 if I see the stoch crossing strongly up. Does that sound about right?

[Lost Marble]

That's right!

[joeytrader]

Alpari UK day bar, my reading of the end of day 3 (end of June 8) candle:

 

(1) GBPUSD: short trade from end of day June 4 still open, should already moved SL to BE, because at one point, at 100 pips profit; currently (June 9) at approx +23 pips

 

(2) EURJPY: no new signal

 

(3) USDCAD: with the correction from Lost Marble, the long trade from end of day June 5, should be now closed, due to stoch crossing back downward. net +70 pips

 

(4) EURUSD: no signal

 

Summary so far - Net closed pips = +70 pips:

 

(1) GBPUSD: n/a

(2) EURJPY: n/a

(3) USDCAD: +70

(4) EURUSD: n/a

Edited June 10, 2010 by joeytrader

[joeytrader]

Alpari UK day bar, my reading of the end of day 4 (end of June 9) candle:

 

(1) GBPUSD: short trade from end of day June 4, closed, due to stoch cross back up; since SL already moved to BE previous day when price at one point was 100 pips in profit; so now net = +0 pips

 

(2) EURJPY: no new signal

 

(3) USDCAD: no signal

 

(4) EURUSD: no signal

 

Summary so far - Net closed pips = +70 pips:

 

(1) GBPUSD: n/a

(2) EURJPY: n/a

(3) USDCAD: +70

(4) EURUSD: n/a

[joeytrader]

Alpari UK day bar, my reading of the end of day 5 (end of June 10) candle:

 

(1) GBPUSD: no signal

 

(2) EURJPY: no signal

 

(3) USDCAD: candle just closed below 100 MA, and stoch has crossed and are between 80 and 20, so technically a Sale Trade, with Sl=150 pips; move SL to BE if price 100 pips in profit

 

[However, if I were trading live, I may not be taking this trade, because (a) price is still very close to the MA, although technically it did close below it; and (b) the stoch was no where near the 80 line when it started to drop down, now to closing the 20 line. I think the best set-ups are those where stoch recently came below from 80 line, which this is not. But I will mark this down as a valid sale trade anyway, just for recording purpose]

 

(4) EURUSD: no signal

 

Summary so far - Net closed pips = +70 pips:

 

(1) GBPUSD: n/a

(2) EURJPY: n/a

(3) USDCAD: +70

(4) EURUSD: n/a