Forex Strategy CAD1 - Page 2 - Pip Cop

philmypants · 2011-11-02, 01:30 AM

It's really quite amazing how on Sunday evenings when the order is placed how the orders fall on support and resistence areas in accordance with moving averages on the 4hr charts.
Phil

**rsmereka** · 2011-11-02, 08:29 AM

Quote:

Originally Posted by philmypants

It's really quite amazing how on Sunday evenings when the order is placed how the orders fall on support and resistence areas in accordance with moving averages on the 4hr charts.
Phil

Hi Phil,

I never looked at it that way. I do my calcs on a 1h chart. What moving averages are you talking about: SMA

, EMA? How many? What period(s)? Just interested.

I guess that is the foundation of the strategy. I like the way that the price eventually comes back to were it was.

Rick

philmypants · 2011-11-02, 11:22 PM

Quote:

Originally Posted by rsmereka

Hi Phil,

I never looked at it that way. I do my calcs on a 1h chart. What moving averages are you talking about: SMA

, EMA? How many? What period(s)? Just interested.

I guess that is the foundation of the strategy. I like the way that the price eventually comes back to were it was.

Rick

I watch the 4hr chart for this strategy. I always have a 25, 50, and 200 day sma

on my charts. In last Sundays case at 8 central the starting point

or later T/P was set and it was in an oversold position right off the start. ( a long way from the 50 day SMA

and the 14 day RSI was low almost at 30) The limit sell was a perfect place since it happened to be at the down trending 25 day SMA

.
So as it happened, the price is set and it triggers the sell right where odds are it will decline again and trigger the T/P. Textbook.

**rsmereka** · 2011-11-03, 10:58 AM

Quote:

Originally Posted by philmypants

I watch the 4hr chart for this strategy. I always have a 25, 50, and 200 day sma

on my charts. In last Sundays case at 8 central the starting point

or later T/P was set and it was in an oversold position right off the start. ( a long way from the 50 day SMA

and the 14 day RSI was low almost at 30) The limit sell was a perfect place since it happened to be at the down trending 25 day SMA

.
So as it happened, the price is set and it triggers the sell right where odds are it will decline again and trigger the T/P. Textbook.

Thanks for the MA info,

Actually, this week, the trade I call better than textbook. The trade was triggered very quickly and closed very quickly. Usually, the trade does trigger until Tuesday or so and closes on Wed or Thu. This week it was all over on Mon.

Rick

philmypants · 2011-11-21, 08:16 AM

A nice setup this week for the limit sell. If it does trigger it will be in an overbought area( rsi will be close or at 70) then the T/P will still be above the 25 or for sure the 50 day ma for it to come down for a nice bounce and get triggered as well.
All on the 4hr chart

Phil

**rsmereka** · 2011-11-21, 10:54 AM

Quote:

Originally Posted by philmypants

A nice setup this week for the limit sell. If it does trigger it will be in an overbought area( rsi will be close or at 70) then the T/P will still be above the 25 or for sure the 50 day ma for it to come down for a nice bounce and get triggered as well.
All on the 4hr chart

Phil

Hi Phil,

Yes. The short

was just triggered a few minutes ago. It looks classic but we will see what eventually happens.

Last week, a short

was triggered but the trade was weak and it waffled all week. I had to close it under the Fri rule at a 28 pip loss.

Rick

**rsmereka** · 2011-12-07, 10:56 AM

Reference

Rick

Merrygoround · 2011-12-07, 02:34 PM

This system must be similar to Nth degree, because that is exactly what they are doing over there. But IMO by pyramiding you turn this system from a low-maintenance system into an attention-absorbing system. And mabye you are redesigning it too.
In a manual system you need constantly to watch the trades: adapt the SL

to a more recent low/high, not only for the master trade but all add-ons too. Placing trailing stop with an EA can be considered, but indeed where to place the stops? ADX +45 is generally accepted. I would have placed it on the level where system said to do an add-on, so at least the prior trades were safe. But that requires some MQ4 programming skills, which I do not have.
This pyramiding trick could work in theory and would be a superior form of trading, a.o. because it is applicable to any chart, but I could not get it to work. It also requires vast amounts of time to test it properly and correct the defects.

**rsmereka** · 2011-12-07, 03:26 PM

Quote:

Originally Posted by Merrygoround

This system must be similar to Nth degree, because that is exactly what they are doing over there. But IMO by pyramiding you turn this system from a low-maintenance system into an attention-absorbing system. And mabye you are redesigning it too.
In a manual system you need constantly to watch the trades: adapt the SL

to a more recent low/high, not only for the master trade but all add-ons too. Placing trailing stop with an EA can be considered, but indeed where to place the stops? ADX +45 is generally accepted. I would have placed it on the level where system said to do an add-on, so at least the prior trades were safe. But that requires some MQ4 programming skills, which I do not have.
This pyramiding trick could work in theory and would be a superior form of trading, a.o. because it is applicable to any chart, but I could not get it to work. It also requires vast amounts of time to test it properly and correct the defects.

This strategy is not really like Nth degree (based on what I read). By adding pyramid trades, I don't think it necessarily is a high attention strategy. What I did today is to place the 3 pending orders and that's it. Just sit back and wait for the result. I don't go for micro-managing the trades. That gets too close to day trading. That is what Nth degree is, a day trading system.

I took a look at the ADX indicator

and could not figure out where to put the SL

.

I do know MQL4 but I don't know what you mean by:

Quote:

placed it on the level where system said to do an add-on, so at least the prior trades were safe

In a manual system, you do not necessarily have to keep monitoring the trades. This system has done well (not spectacular) for many months now.

I agree that it needs a lot of time to test. Especially when there is only one trade per week. It is also impossible to back test.

Rick

Merrygoround · 2011-12-07, 06:15 PM

Quote:

Originally Posted by rsmereka

This strategy is not really like Nth degree (based on what I read).
Rick

I was referring to the pyramiding part only, to increase profit. The entry and exit logic will be different.

The ADX at +45 tells you it is time to place a trailing stop or just TP

, not where to place the SL

. See this for example: http://forex-strategies-revealed.com...tion-technique. I learnt a lot from this site.

SL

could be placed at latest fractal, which acts as support or resistance

once broken.

Say, if you have a master trade that has a 50 pip profit and you want to do an add-on, then you place a trailing stop on the already profitable master trade before entering the first add-on. The same for the second add-on: the first add-on should have a minimal amount of pips in profit. Once that amount is reached, you put trailing stop on the first before doing a second add-on. That way part of the profit gets locked in and only one trade at a time (the one without trailing stop) runs risks of turning into a losing trade. At least that is the way I would do it.