I created an intraday system since my hours at work have temporally change until are facility is repaired due to Hurricane Ike. I thought I would share it here for anyone interested in testing it. Use at your on risk.
Time frame: 1 minute
Indicators:
Price Channel Stop � set to 20
Heikin Ashi candles � default setting w/ colors change to red/blue & width set to 1 (more of a visual)
Stochastic � set to 100, 3, 3 with 50 level & main signal line only
Goal: 20 pips a day
Trading sessions: European & US to include overlay of both markets
Risk/Reward ratio: 1:1
Take profit: 20 pips after spread
Stop loss: 20 pips including spread
MM: Increase contract size by a factor of 1 after a loss and decrease by 1 after a win. This is an optional MM strategy.
Rules for trading
Long � Stoch main signal line must be at the 50 level or above, price channel must change from red to blue. Wait for the candle to close and if all indicators agree then enter a long position.
Short - Stoch main signal line must be at the 50 level or below, price channel must change from blue to red. Wait for the candle to close and if all indicators agree then enter a long position.
Note: Do not enter the trade until both indicators agree. You can continue to trade after 20 pips are made, however, you run the risk of having to open more contracts if you experience consecutive losses. I have continued to trade after 20 pips have been pretty profitable in past 2 days. Good luck to those who use this system.
Here’s an example of a valid entry. The red line is the signal when the candle closes at or above the 50 stoch level and the price channel turns from red to blue. The green line is the entry at the candle open. The t/p has hit in this example.
Pairs with a 2 pip spread or less. I need to fine tune the settings so it takes less trades with a greater chance of sucess (is that possible). Anyways, I am off this weekend and will be reviewing charts. I will revise the settings if I come across better setups.
Using as a visual only. I am going to switch my focus back to the ADR straddle system since I am back on days at work. Please continue to use if interested.
Thanks for uploading this. I’m always interested to try new systems. I’m having a little trouble understanding how to use the indicators with this system. So I want the bottom part of the graph to basically never be on the 50 line – I want it either over or under? What do you mean by the candle being closed?
