Looks like someone in the forums is gaining some fanatics! For the second month in a row, forum user pipwoof has come away victorious! July’s Best Forex Trading System is none other than the…
For winning July’s Best Forex Trading System contest, pipwoof’s name will be featured once more on the Best Forex Systems Hall of Fame. Not only that, but the Triple Threat Exit Strategy will also be up on the BabyPips.com home page for a whole month! Last but not the least, pipwoof gets to donate $50 to his chosen charity among our Golden List of Charities. If that’s not a good deal, human, then I don’t know what is.
Pipwoof’s system incorporates his Daybreak System to help generate signals. The major difference comes in the exiting strategy. As the name suggests, the system has three stop loss strategies to help you keep your pips.
According to pipwoof, combining the Triple Threat Exit Strategy to the Daybreak System has helped him generate 31,000 pips over four pairs (EUR/USD, GBP/USD, AUD/USD, and GBP/JPY) in just over 18 months!
Mother of beep beep boop beep beep! Could this be the holy grail?!?
As mentioned above, the system uses the same entry signals as the Daybreak System. For entering trades, the main rules are simply:
- Go long at the previous day’s high plus one pip.
- Go short at the previous day’s low minus one pip.
- On Mondays, go long at Friday’s high plus 11 pips or go short at Friday’s low minus 11 pips.
Meanwhile, pipwoof uses the following rules in his Triple Threat Exit Strategy:
- Put three stop losses on every trade, one for each position (the size depends on your risk tolerance).
- Place the initial stop loss on all three positions in the nearest quarter psychological level (00, 25, 50, 75) above/below a 25-pip allowance. For example, a short at 1.0213 would yield a stop loss of 1.0250.
- The initial stop loss is the only one set in stone at the start of the trade. SL2 is trailed every succeeding 25 pips, while SL3 is trailed every 50 pips.
As detailed as this system is though, there’s still plenty of opportunity for discretion. For example, pipwoof allows moving all the other stop losses to breakeven (initial entry price) once the first profit target has been reached. He also leaves it up to traders to decide whether they should keep the trade open over the weekends, or if they want to close and simply re-enter the trade on Monday.
Will the Triple Threat Exit Strategy earn more pips once I mechanize it, or is the discretion part of the system the secret to its success? Find out in a couple of weeks, Earthlings! Next week I shall reveal my plans on mechanizing the system!