FX can be overwhelming at first and Metatrader doesn’t help much since I am still learning all that it has to offer. Below is a link to the post for the VT Indicator for this system. For Candles in MT just click on the candlestick button at the top of the page (see attachment). If you clicked on the button, which I’m sure you did, than the problem is that Metatrader in Zoomed too far out on a new chart. I had this problem also. Just right click on the chart and zoom in (twice) and it will look fine. (See Attachment). If you have any other questions about MT, which I’m sure you will because it is a tricky application, than just post a new thread about them so we don’t load up this thread with MT questions.
I answered you other question in my previous post about BE.
In looking at the last couple of days on MT (Thanks TopGun! I do like MT better than VT.), I noticed a pattern. To start off, when James’s system indicates buy, of course, buy say one lot. Then when it shows sell, instead of selling one lot, how about selling two lots. One to lock in the profit of one lot then the second lot to get in on the bear indicator.
James said in a post that once the trend starts ranging is when he exits and waits for the next move. There really is no “wrong” but I notice that you get all kinds of mixed signals when the pair starts ranging so that is when you lose the most. Thats why I try to use ADX or another indicator to know when it is range bound. Or just look at the long wicks on the candles and you’ll know the pair is temporarily out of steam :). I made 50 pips on the down move yesterday and now 40 on the up move but since I think it has more room to run I just trailed my stop 20 pips back and wait it out since I have nothing to lose at this point. Your idea would work but I prefer to either close it out and take profits or trail your stop to lock in some because a lot of times the pair will just consolidate and continue its move in the same direction like it did from 10:30 am yesterday to 4:00 am this morning. I would rather wait until I know which way it is going to go then immediately open a trade in the other direction because I lost a lot of trades trying that. You can’t take every signal.
Here I go with these long winded post again. I gotta stop doing that .
If you have MT4 there is a button at the top which switches the default bars to candles (the middle of the three buttons next to the Expert Advisor button at the top of the program), then [B]zoom[/B] in once or twice. At the most distance view everything looks like lines/bars. You will have to adjust each new chart you open for candlesticks… perhaps there is a way to make it open with candlesticks automatically, but you would still need to zoom in to see them.
I am with you on the pip-take front. Although i usually trade on the GBP/JPY, where i can stay in for days in the system that i use, i always enter at least one trade using James’s system a day.
I think it may still be a lack of confidence (Only started live at end of Nov) but i tend to jump on my pips when they reach the 25-35 mark on EUR/USD.
I have doubled my money this month doing this and my system on GBP/JPY.
Although on occasion i have watched with a touch of envy as the trend continues after i have exited…i still think getting out when ya plus pips is always better than running the risk of retracement, and as much as a trailing stop works wonders on occasions…where do ya draw the line?
Would ya say it is better to take ya 30 pips and walk away or set a trailing stop that could get sprung at, say 15?..but possibly earn you double that?
How do you decide what route you take on this system?
Thank you topgun for your insight. Don’t worry, you aren’t being longwinded. I appreciate your insight and your help in my continuing education of this crazy thing we call forex.
Could you please refresh me on which indicator “ADX” is please.
Thank you soooooo much Topgun and MDietrich (Is that you Marlene? )! I am now able to watch the candles since your posts! I REALLY needed that! I feel so embarrassed that I did not figure that one out on my own…
Stay as long winded on your posts that you want Topgun! You do not realize how [B]truly helpful [/B]you are, and have been to me personnally since I discovered this forum.
Your explanation on the B/E + 1pip concept cleared my understanding. I beleive I will apply this to my daily routine. This little psychological satisfaction must take away some of the frustration edge at the end of the day!
You mention using the ADX on the 4 hour chart to determine when in a trend or not and I like this idea as I also find in a ranging market this system can eat away at all those hard earned pips.
I was wondering if you use the crossing of the + and - DI lines to confirm trades or only use the ADX line itself to confirm trend?
For example would you only take long signals(based on PSAR and MACD) when the +DI moves above the -DI and only take shorts when the -DI moves above the +DI? Or would you simply look at the ADX to determine if there is a strong trend and then take your entry signals based solely on the PSAR and MACD on the 30 chart regardless of which direction is indicated by the + and - DI lines?
Your thoughts are appreciated and feel free to be as long winded as you like!
Sorry for not replying yesterday. Took the day off to golf .
I mostly use the 5/10EMA cross to exit and I sometimes use it confirm an entry just to be safe. I think James mentioned that somewhere in this thread that it is extra confirmation if you want it. I am still trying to to perfect a way to keep those 20 pips that I constantly lose while waiting for the big trend like you mentioned above but I really don’t think there is no perfect solution. Just put in your trade and walk away and that is when I catch the big moves when I am not around to watch it and break my own rules . I’m still earning just as much as everybody else.
I only use the ADX line but I as also add the 5/10EMA to my charts for extra confirmation on entrybut mostly as a good exit point. You will notice that when the +DI & -DI cross those two moving averages usually cross also on the 30 minute chart. ADX >= 20 trend, ADX >40 Strong trend. I prefer it to also be rising but even if it is falling you could still have a trend that is slowing up. When it is below 10-15 don’t like to enter because the price seems to bounch off of every s/r line it hits because their is no strenght in the move. Look the this tutorial which has a good example of ADX.
I also just want to note that there are many many different way to trade James system. The basic way works but I am just trying to find the best way to improve the signal by using the 4hr chart / ADX / 5/10EMA’s, etc… I am still experimenting to find the best way and so should you.
I’ve been experimenting with MA’s for exit signals too. I like the Hull moving average. Seems responsive but still smooth. I’m playing around with an 8 and 21 and so far it seems to help get out that little bit quicker than waiting for the MACD or PSAR to reverse. As others have mentioned I’m also using candlestick patterns and find if a signal is given that combines with a strong reversal pattern it is almost always a good trade.
lavieenred - I think the only reason I figured it out is because I like to zoom in closer because initially I was perplexed when the chart didn’t appear to change after selecting the candlesticks. I am Marcia (pronounce it Mar-see-uh) and have had more than a few people calling me Marlene instead, lol.
Anyone who is trading this method, could you post a specific trade showing what you were looking at as I am still a bit unclear on what you are looking at for the MACD … a change of direction of the line movement there along with the Parabolic SAR dot jumping to the other side of the candlestick?
Let me know how you make out. I have been watching this system on the GBP/JPY and it looks like it could be making 80-100 pips a day . That pair moves very wild but if you have enough clarification on the entry and you go with the trend than you can exit when the MA’s cross for some nice gains. I’m even looking at it on a 4hour / Daily time frame which could make 300-500 pips gains on that pair. Of course you need atleast 100pip stop loss & you ucan’t stair at it all day or the pull backs will make you exit early. Talk to ya later. Happy Friday!
Well, after looking at a couple of the images I get it … except my MACD has a slightly different appearance with a line and then bars, but I take it I just need a cross or change of direction of the bar/line of the MACD as opposed to the two lines in the examples along with the Parabolic SAR change.
Amazing what a couple of times reading through the whole thread can do for your understanding. Many thanks for the No Histogram MACD which helps greatly!
I have added one set of Bollinger’s to look at points where there would be a break, and when trending again. 5/10 EMA’s. EDIT: putting a direct link to page with image (how do I attach an image as others have done?): simple 30 minute system image
There are a couple of cases here where the MACD was already in a sell cross, but close together then drops along with Par. SAR change to sell, opening Bollingers and the 5/10 cross for sell. Seems like you could get in earlier by a bar and take a couple of trades that might otherwise be considered a wait and see. Seems they were better opportunites than the clear cross of MACD and change of SAR later in the same time frame.
I am just looking back right now but do any of you use Bollinger’s and what do you think of them as compared to another indicator to indicate breakouts?
.
)! I am now able to watch the candles since your posts! I REALLY needed that! I feel so embarrassed that I did not figure that one out on my own…