Forex | FX Operator | Currency Trading

I was exploring some simple ways to trade the GBP/USD, and came across the [urlhttp://www.forexfactory.com/showthread.php?t=11937]Weekly Scalping[/url] thread at Forex Factory. This is something interesting to explore. I've actually tried to create a username at their site but somehow the administrator did not approve my registration. I registered with my fxoperator email and probably that's the reason.

Ok the weekly straddle looks like this:

Eg. Last week GBP/USD close @ 1.9601

Open two initial buy and sell orders +- 50 pips with a SL of 30 pips in each order at the start of the week:
Buy @ 1.9651 SL 30
Sell @ 1.9551 SL 30

When any of the above hit, move your entry point at the other order to previous weekly close, which is 1.9601. Eg, if buy is triggered, move sell to 1.9601 with a SL of 30 pips at 1.9631.

This buy and sell process will keep going till the end of the week. The reward is when the price action pulls away from the previous close, and it can be huge during some good weeks.

I like this system, should be trading it live since I have tested it and in the long run, only profits to be made However, there can be variations such as taking first lot at 60 pips leaving the 2nd lot to the original system and so on, so that u can be guaranteed breakeven for at least 2 trades which might be stopped out. I mean yea, u can always come out with ur own style.

System seems to loose every week on any currency traded even when optimised.

Am I missing something?

Code:

Inputs:expansionPoints(.0050), dollarStop(300); variables: closeOfLastWeek(0), longTradesThisWeek(0), shortTradesThisWeek(0); if dayOfWeek(date) = 5 and time crosses above 1500 then begin closeOfLastWeek = close; longTradesThisWeek = 0; shortTradesThisWeek = 0; exitLong("LX_EOW"«»); exitShort("SX_EOW"«»); end; condition1 = high > (closeOfLastWeek + expansionPoints); condition2 = low < (closeOfLastWeek - expansionPoints); if longTradesThisWeek = 0 and dayOfWeek(date) < 3 and condition1=TRUE then begin buy 1 contract next bar at market; longTradesThisWeek = longTradesThisWeek + 1; end; if shortTradesThisWeek = 0 and dayOfWeek(date) < 3 and condition2=TRUE then begin sell 1 contract next bar at market; shortTradesThisWeek = shortTradesThisWeek + 1; end; setStopContract; setStopLoss(dollarStop);

caventou wrote:

QUOTE:
I like this system, should be trading it live since I have tested it and in the long run, only profits to be made :p However, there can be variations such as taking first lot at 60 pips leaving the 2nd lot to the original system and so on, so that u can be guaranteed breakeven for at least 2 trades which might be stopped out. I mean yea, u can always come out with ur own style.

are you trading live? any updated of your recent trade?
would like to hear your thoughts on this straddle method.

I read this strategy before.

And I heard that some hedge funds' managers use this method too.

Tried before but was not used to the methodology.