INGOT'S RAINBOW ... A Position Trading Strategy

[barrooo]

Thanks for the welcome, yeah the basic methodology seems straightforward i.e.trading with the trend.

I was hoping, however, if anyone had any particular experience, in terms of for example do you scale in or out of trades, or go all in/out. Also if particular pairs had a better chance of succeeding with this, and good profit targets for those individual pairs.

I'm currently backtesting it with a variety of parameters and will post results if anyone is interested, but obviously nothing substitutes live trading

[Millowena]

I prefer multiple contract entries, because the market will ALWAYS (almost) go in your direction a small amount that can result in a free trade when you bring your stop to BE on the first exit. I trail the second (and third?) parts of the position by a couple of ATR's with a larger target (that I think is attainable) for the second part. The third part, if there is one, is let to run without a target and with a big stop, in case this one is a "homer". FWIW

[sophielaroux]

Hi everyone,
Been a lurker for quite a while in the forum and this thread in particular. Thank you all, esp. ingot, for your insights!

Quick question for everyone--which broker/charting software do you think would work best for this LT Rainbow system?

I'm thinking of using Oanda but use a demo account from another broker that uses metatrader 4 for charts. Of course, if I could find an honest broker with tight spreads that uses metatrader, that would be ideal.

I would be starting out with micro lots.

Any advice?

With humility,
a newbie.

[Millowena]

I use Interactive Brokers, InterbankFX, CompassFX, and FXCM. No complaints. In a long term trade environment, the spread is insignificant.

M

[fboy]

Hi,

I've been reading this thread and Spudfyre's with great interest. Thanks to everybody here especially Ingot. I don't really understand why this thread seems to have stopped getting posts? It seems to good a concept to let it wither away. Anybody who has been using the Rainbow system, we'd be grateful to get an idea of how well they are getting on with it?

fboy

[sirlawrencek]

I have been reading through this thread with great interest. I fully undersatand the use of the MTF Stochs, is there some one who can tell me how the EMA rainbow is suppose to be used? I must have missed the posts where that was covered.

[4xStar]

Originally Posted by fboy

Hi,

I've been reading this thread and Spudfyre's with great interest. Thanks to everybody here especially Ingot. I don't really understand why this thread seems to have stopped getting posts? It seems to good a concept to let it wither away. Anybody who has been using the Rainbow system, we'd be grateful to get an idea of how well they are getting on with it?

fboy

Thanks to your post, I found this thread & checked out the rainbow and mtf stochs charts. I was familiar with the rainbow from trading equities a few years back but the mtf stochs was a new concept .. that is, I had seen it, but not like this.

In my thread, GPB/JPY Winning Strategies under Cross Currencies, I am introducing these charts to use with the guppy since so far I am finding a pretty good correlation which, properly understood, could even be predictive.

For sirlawrence, the best way to learn them is to set up the charts and just check out how the patterns behave with the various currencies. Some seem to have a higher correlation than others. Backtesting & familiarizing yourself with the patterns in realtime is the best learning tool.
I added a 1ma in a tan color to the rainbow chart .. this helps pinpoint where price is right now.
Check out my thread, above for information & templates on how I am using this on the 4 hour chart.

[sirlawrencek]

I appreciate the templates. I have added the template to my charts and will start using them on my demo account on Monday. This looks really interesting. I have been trading live on a 15 minute chart on Cable for about a month with varying success. Just doing a little back gazzing, it looks as though this would work on any time frame. I am interested in a shorter time frame because I am still new to Forex and can't afford large draw downs on my small account. I will let you know how it does. I will post my results a few times a week for any one who is interested.

Thanks again for every one who has done so much work on this.

[fboy]

4xstar, sirlarencek, Thanks for posts. Nice to know someone is here Look forward to updates. I am looking at this strategy to see how I get on with it. It seems the key is having the patience to waiting for ropes to begin forming and not jumping ahead of the gun.

[ybforex]

can anybody tel me wher to find the system ? for some reason I can not find it . in wich post # is it