The AshFX System - Version II

[AshFX]

Originally Posted by mmaurice

I have been trading the original AshFX Daily since Sept 1 across 19 different pairs.

Overall I am up about 13% since Sept 1.

I have missed a couple signals here and there but for the most part have been pretty disciplined.

I have been entering trades basically by the rules you have just presented. All indicators have to line up. Although, I dont pay as much attention to the Stoch, as long as it is going the right direction.

Looking at the new system, it appears the biggest change has been with the PSAR, going to 0.05 and then the exit rules.

With the PSAR that loose, it is going to signal more often. What was the justification beind loosening the rope of the PSAR?

The biggest change to the exit I see is to sell at the first sign of profit. It seems the risk/reward ratio will be reduced by taking the smaller profits. Has this new exit policy resulted in increased overall profit?

In a quick glance, it looks like you would be in and out of trades more often with this setup. From your experience, is this true?

The loosening of the PSAR was done after lots of testing, and this was found to be the best parameter. In addition, the previous system entered BEFORE the Awesome turned red/green. This system waits for the Awesome to come into line, e.g. look at Eur/Usd, so actually, you'll find there are slightly less signals.

And by "first sign of profit", this doesn't necessitate that the reward/risk ratio will be reduced at all, because we close at the end of the day, whether it's 30pips profit, or 300pips profit. The TP is based on price action, it's not fixed like it was before.

[Henry]

Originally Posted by AshFX

Relatively speaking, the system's drawdowns are actually manageable, because what's imperative, is to look at it's risk/reward ratio.

If a system's average reward is larger than the average risk as is the case here, then drawdowns shouldn't really be a problem.

So for example, maybe you might have a 200pip drawdown, but if the profit is 300pips, then really, the drawdown isn't actually "huge". A scalping system that has 10pip SL and 2pip TP has huge drawdowns, relatively speaking.

So the risk is in overtrading? What time do you check the charts? Office hours here coincides with the European session.

[db-trader]

Originally Posted by AshFX

The system doesn't get you into trades too soon, it waits for the Awesome, the original didn't wait for an Awesome confirmation to enter. This prevents many trades which don't go on to become trends, helps filter out some ranging.

The SL and TP have been explained, in the section entitled "Exit".

Version 2, for a while now.

Ash

thank you so much Ash, I've been looking forward to this all weekend and already set up my charts

[AshFX]

Originally Posted by Henry

So the risk is in overtrading? What time do you check the charts? Office hours here coincides with the European session.

I check the charts at the candle close.

What do you mean by the risk is in overtrading?

[Lazarus]

Hi Ash, thanks for system. Is there a misprint in the pdf file? In the entry instructions shouldn't the 80 say 20 and vice versa? Because just being below the 80 does not make a pair oversold, but being below 20 does?
Hopefully some screen shots will be posted eventually (I dont know how to do that). Also, would we rather exit when the AC changes color? The posted trades would have done better.
Thanks
Michael

ENTRY
Sell: When the first PSAR dot appears above the candle, AND stochastic is crossing down but is not
oversold (i.e. not below the 80 line), AND the AC is red, AND the AO is red, AND candle is red (bearish
candle). Only enter once the candle has fully closed.
Buy: When the first PSAR dot appears below the candle, AND stochastic is crossing up but is not
overbought (i.e. not above the 20 line), AND the AC is green, AND the AO is green, AND candle is green
(bullish candle). Only enter once the candle has fully closed

[dolphin]

Ash,

In the manual for the entry it says:

Sell:..."(i.e. not below the 80 line)"...
Buy:..."(i.e. not above the 20 line)"...

but according with the pic, might it be this way?

Sell:..."(i.e. not below the 20 line)"...
Buy:..."(i.e. not above the 80 line)"...

[tlcare]

Is template exactly the same as V1 template? Thx

[AshFX]

Originally Posted by Lazarus

Hi Ash, thanks for system. Is there a misprint in the pdf file? In the entry instructions shouldn't the 80 say 20 and vice versa? Because just being below the 80 does not make a pair oversold, but being below 20 does?

Originally Posted by dolphin

Ash,

In the manual for the entry it says:

Sell:..."(i.e. not below the 80 line)"...
Buy:..."(i.e. not above the 20 line)"...

but according with the pic, might it be this way?

Sell:..."(i.e. not below the 20 line)"...
Buy:..."(i.e. not above the 80 line)"...

Correct. I have updated that typo.

Thanks for letting me know!

[AshFX]

Originally Posted by tlcare

Is template exactly the same as V1 template? Thx

No, it's slightly different.

[db-trader]

Originally Posted by db-trader

thank you so much Ash, I've been looking forward to this all weekend and already set up my charts

I had been testing the system on the .05 setting as well and I found it lined up better with my AO and AC .

You're a star. Now I have to learn to trade longer times. I guess that's a learning curve. Btw this works nicely on all the
time frames