Just a quick note to let everyone know that, as you can see from reading the below posts we are making good progress with Houssam's Informed System idea, which is to leverage the power of the community to create a profitable trading system.

In addition to hopefully creating a system that makes money I also think this will be a great learning experience for me and everyone else who participates, so please feel free to join the discussion. If you don't feel like you have anything to add, then I encourage you to use this as an opportunity to ask questions, as we are all here to learn.

Best Regards,

Dave

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From Houssam:


Hi there all traders welcome to the community of trading.....
I am here to invite you to help me and help each other to develope a strategy and system so that we can apply it on every day market WE are going to put the rules and the shape of this strategey we are going to back test it,demo test it and even live testing it it is tthe strategey THAT IS DEVELOPED BY US TRADERS together we can come up into a great system here we can discuss everything about it we are going to divide applying it on all the major currencies each day we are going to discus the entry and exit the profit or LOSSES that this strategy generated so trades let's get our thoughts together and start making the INFORMED SYSTEM
with your help we can learn together and develope a nice strategy and see what will happen then....the seats for the developers are limited the first 10 membes who replies are the ones who are going to vote for the rules of the strategy that are going to be suggested by all of us the first 10 members that replies and the rest of you traders so let's get going and see who are going to take these 10 seats and remember this is not the end another strategies will be developed and another members will take chances to be voting for it and now we start congratulation the INFORMED SYSTEM developing has just begun
VERY VERY VERY IMPORTANT : THIS SYSTEM IS GOING TO BE DEVELOPED BY US TRADERS MEMBERS OF THIS COMMUNITY NO ONE KNOW YET IF IT IS GOING TO BE PROFITABLE OR NOT WE ARE GOING TO TRY IT TO GET INTO IT TRADING IS VERY RISKY AND IT IS ON YOUR OWN RISK THIS NOT THE SYSTEM OF ANY SINGLE MEMBER THIS IS THE SYSTEM THAT BELONG TO ALL OF US TRADING WITH IT IS ON YOUR OWN RISK ....
best regards and please if you have any question Dave,Jerry,Simon and me will be happy to answer it the race has just started
best regard
Houssam..

great idea houssam! i hope other community members choose to share their thoughts. i think this could be a very interesting experiment.

there are three ideas i always favor:

1. looking for what the current "big picture" trend is. i think moving averages can often be a great tool to identify this.
2. using support and resistance lines to identify key pivot or breakout points
3. checking to see if there is divergence when the market tests a key level (see this post by David to learn more about divergence)

just some ideas -- hope to hear more from other community members.

Thanks for answering Simon
i hope that this thread can become a good tool in the near future let's see who is going to join us for now

Hi Houssam,

Great idea and I think in addition to being able to hopefully leverage the power of the community to create a profitable trading system that this will be a great learning experience for everyone involved and who follows this thread.

Two "big picture" things that I will put forward at this stage to build on what Simon has said are:

1. Using multi time frame analysis to identify what the short, intermediate, and long term trends in the market are as well as major/minor support and resistance levels and chart patterns if any.

2. FXCM has a proprietary indicator they built called the Speculative Sentiment Index (SSI). Basically this is similar to the Commitment of Traders report in the futures market in that it shows the overall positioning of the small speculators that trade with their firm. From my experience this has been a good indicator to use when trying to determine when/if a major level in the market is going to break and would be a valuable addition to any forex trading system.

Looking forward to seeing how this plays out.

Best Regards,
Dave

Hey there David and Simon....
thanks for your replies...great ideas over here
soo as this thing went like this i mean i wanted to have our first 10 players first..but why waiting let's start this thing started right now it's better actually
well great ideas you have there Simon and Dave and for me i'd suggest we use ADX as it helped soo much in getting a good idea of the trend in the market and i guess it is hopefull....i am also with the multitime frame analysis and with the moving average ......what do you think about the ADX..
Houssam

Hey Houssam,

Sounds good I am all for getting started and hopefully others will jump in as we go.

I think the ADX is useful in certain scenarios and not so useful in others. With this in mind what do you think about nailing down some of the broad specifics of the strategy. If you agree with this then here are a few questions that should probably be answered:

1. Is this strategy going to be a daytrading system, swing trading system, position trading system or some combination of these?

2. Is this strategy going to be a trend following, counter trend, or range system?

3. Is there going to be discretion involved in this strategy or will it be purely systematic?

4. Will fundamental analysis be included in the strategy or is it going to be purely technical?

Once we have established this then in my opinion it will be easier to determine more of the specifics of what should be included. I will shoot Simon a PM to make sure he sees this and can give his thoughts as well.

Best Regards,
Dave

below are my thoughts on the questions that david has posed:

i would vote for anything besides daytrading. i don't think daytrading is a particularly good idea for individual traders; the little guy is better off trading larger trends, in my opinion.

i always vote for trend following, though i'd be interested in hearing other thoughts.

the more systematic it can be the better, in my opinion.

technical analysis -- although the one fundamental component i think is worth considering is restricting the system to certain markets. for instance, from a fundamental perspective, i think the international commodities and currencies markets are a great opportunity. the US stock market, on the other hand, doesn't strike me as a particularly good opportunity. perhaps we should identify what markets we want to trade with this system?

thoughts?

Hey there how are you both???...
well as for Daves questions...,
the swing trading in my opinion generate higher profits and as you trade on long tems then you will get less spykes and what we want is least false alarm system and more positive one this is one thing .....

for the second question i agree with Simon on this one as the market is often trending rather than ranging so i'm with the trend following..

well for the third question i also agree with Simon the more systemic the better..

and as for the fourth i really don't like fundementals i just don't understand them i don't know why the only fundemental news that i know about is rate discision :P which is something that i guess every body knows about it any ways for me i'm off fundementals

as for your question Simon we are into the FOREX market we are going to divide applying the system on it's major currencies between us
thank you all
Houssam
what do you think Dave..

Hello Guys...Jerry here..." Houssam,"sorry for my tardy input..been doing some home projects and been a bit busy....I would love to see what other traders do compared to myself...I ll just give you all a snapshot of what I do daily...you may have something better...I scan the charts every 4 hours....(Im just too busy to sit in front of the computer all day long...therefore..I tend to trade 4 hour charts...I check daily charts for the overall trend...4 hours to see if timing is close to getting right...(also..tends to filter out the news releases...doesnt change the prices..but doesnt disrupt the charts as much..)(By the way...there is SO much news out there...I cant imagine being in the right place at the right time always...)and 1 hr for entry timing...all the tools like trend lines, elliott wave, fibonacci, EMA's..( I use the 5 close and 6 open), stochastics, RSI, volume, ATR, momentum, 100 ema, bollinger bands,..to me are like tools in a tool box...no 1 single tool is going to be appropriate in all circumstances... so I try to reach for the tool that is needed at that particular time... I also dont enter a trade unless I can see 100 pips or more to be made..(Im not going to risk 50 pips to make 50 pips) with 100 pips + objective...even if you dont meet the goal...still may be some money on the table to protect by moving stops...My total 4x experience is 15 months...I feel like I have learned a lot...but acknowledge there is lots more to learn...Dave is probably the most experineced trader that I am aware of...so his opinion weights heavily on my thoughts..My brok(er is MB trading..(ECN Broker) and my charting is e-signal...I value all of your opinions as well...please let me know what you all do...maybe I will change something...Jerry

Hi guys!,
Great idea....

What do you think about this for scalping system....
looking for: Body of the candle must be outside EMA(3)-close.The candle must be a reversal candle for signal and enter the trade when open the new candle.

Best Regards

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