Just stumbled upon a system that I decided to try on MT4. I have seen it on many screenshots and videos but it looked too complicated to even describe but now I know a bit and this is it:
Basically using MACD, Stochastic, and RSI as confirmations according to the line graph[price action right?] going up or down with relation to the Bollinger Bands ‘tightening’ and 2MAs below it if buying and Parabolic SAR dots below also.
Well here’s the pic to illustrate what I think I meant to say if it’s wrong:
Is this a good strategy? Did I understand it wrongly?
Thanks BPers! I look forward to your kind feedback. ;D
P.S.: I just added $100 instead of the $100k to simulate what I would initially enter in live account. Earned 17 cents on 0.01 lot. Changed it to 1.00 earlier and haven’t had a good set-up for another trade.
I know you’d like someone to go into specifics and help you with this strategy and analyse it and stuff, but life is too short, I’m sorry it’s garbage, scrap it and look for something good and popular, no need to look very far
Looks to clutterd for me. Also since you opened an account why dont you reply in about 6 months and let me know lol. That was a joke but not really. I can say thats not how I trade but I cant say its wrong. Also if you are just starting out you are going to make mistakes that will cost you. It does not mean you strat does not work it just means you are a newb. Good luck with it
You have three oscillators all showing the same thing…why make trading more complex than it should be.
Typically use one oscillator and one price indicator. Trading is really not rocket science, so trying to make you charts look that way will really not help!
I my experience, something that appears to be too complicated usually is, particularly in trading. Looking at that chart, the thing that leaps out at me is that Price is almost an afterthought, only a small portion of the screen is devoted to actually showing current Price, and then it is hidden behind various lines and graphics.
There is often a debate on here regarding whether indicators are at the core of the most effective strategies, or whether they are irrelevant and just get in the way of a good chart. However I think that there would be many on both sides of that discussion who would echo Jezzode’s post - why have three graphics showing you essentially the same thing taking up over half of the screen?
I basically prefer a naked chart, in my opinion S&R and PA are all one needs to trade effectively, but I get that other approaches work, too. I put the odd bit of RSI on a Daily or 240 chart occasionally (sorry, PPF!) so I get that indivators have their advocates, but that chart looks as though the developer of the system was almost trying to automate things: s/he was not able to read Price and actually trade live with any confidence, so they added indicator after indicator until it became a purely mechanical ‘when all these eight factors say this, do this’. E
ven if you want to end up as a trader who enters trades based purely on what a number of indicators are telling you, personally I would learn on a naked chart and then scale up towards your indicator idyll, as in that case you might at least understand [I]why [/I]the indicators are saying what they are saying, so you will be in more of a position to apply some discretion to it all.
But basically, I would strongly advise going with something far simpler, and a chart that focusses on what Price is doing right now. I don’t see anyone developing any meaningful feel for the markets learning on a five minute chart with that much clutter on it, and without a feel for the markets you won’t make money over the long haul, imho.
Apologies if this sounds patronizing or preachy - you asked for opinions!!
That’s great feedback Simon, thanks for taking the time!
“so they added indicator after indicator until it became a purely mechanical ‘when all these eight factors say this, do this’.”
I think so too. I shall ditch this system after hearing the feedback. A naked chart really is cool, cause you don’t need nuthin but your skill.
I’m still learning at the School of Pipsology. So, I just took a break and went hands-on trying to find systems. I actually made 441 pips on that system earlier. I think I did. Well I bought at 1.30811 and closed at 1.31252, so I profited $4.41 since I’monly using $100 demo money to trade at 0.01 volume.
Thanks that’s very useful! Will definitely remember that…
New problem…
I can’t close the damn trade. I started with a pending order so that I can enable TP and SL. The order worked and now the trade won’t close. It says ‘Off quotes’ -___-
Arrgh, its enough to make you go nuts…but that’s just me [I guess]. The chart’s more about indicators than anything else, it may help if you can de-clutter the screen, analyse the trades and go ahead with a strategy that works for you. And FYI, using one too many indicators is going to cause a lag when it comes to placing trades…
