Methinks you thinks too much.
Numbers. Let them speak for themselves. Your words. Not mine.
Numbers. Or it didn’t happen (as they say in the classics).
(Exactly why I am contributing to the perpetuation of this thread is unclear to even myself so don’t lose any sleep over my comments though).
My method is really simple and covers basics of trends theory.
It is trend following strategy which is based on failures of last tops/bottoms.
Other rules:
Why such rules?
Let’s start one by one.
Because:
NO ROCKET SCIENCE!
I also use trend-following trades based off top/bottom failures but on the daily time-frame rather than intra-day.
I find it useful to use some defining features so that I only (hopefully) get into the higher probability trades -
e.g. in a downtrend, after a new low, I look for two or more consecutive (or nearly so) daily bars with a higher high and a higher low than the lowest bar right before them: so I don’t get in short on a one-bar pull-back or at a new low.
I count a downtrend as price being below the 50EMA, which is sloping downwards.
No TP. Initially I use the high of the trigger bar as the stop but I size the position using entry + 2xATR20.
However, as soon as the trade is in profit I am looking for another sell signal for a pyramid trade and use the new trade’s SL for both.
As you say, there’s no need for rocket science.
A very common question for people who want to invest in the stock market is: how much can I earn on this? The correct answer should be: only certain thing is how much you can lose, profits are only a potential reward. The stock market is not a full-time job, you’re not sure that you’ll get any money every month. What’s more, it may be that you will suffer losses.
The stock market is a variable environment, which is why the results differ. The average annual rate of return does not mean that every year we earn the same, it is only average. Therefore, if you want the stock market to be the only source of income for you, you must have a very large financial cushion to be able to sleep well and wait for good times.
If, however, you expect specific results from the stock exchange, know that this is the beginning of the end of your adventure with the stock exchange.
Hi,
last week was full of macro data and lot of uncertainty. I lost 260 pips but it is nothing unusual.
Finally!
After 5 months of profit, a period of losses came. In fact, this is the moment that shows the actual strength of the strategy.
Over the past 3 weeks, We have returned the profit that I generated in less than 10 days in May. The most interesting thing is that one good day is enough to make up for a worse period. Will it be the same this time? time will tell 
In such moments I see the advantage of automatic strategies over manual trading. I am sure that if I was involved in trading, I would probably start combining with the strategy. Trading using automated strategies, I am a bit out of the way, watching what the computer is doing and I know that sooner or later the markets will favor me because I know the statistics of my strategies.
On average, I have 4-5 months of loss each year.
And now substantive …
As you have noticed, I publish “trading rules”. I decided to create them because many novice traders have wrong expectations in relation to the market.
I know that they may seem trivial, but in the end you’ll admit it’s right, even if you disagree with me now.
Write me your opinion! I will gladly get to know other views
Rule # 3 Understand the project you want to invest in.
Do you know in which market it works? What competition does he have? What makes it different?
By investing your funds in any project you are actually a shareholder in a given company. Do you think that any fund would buy companies without checking what they buy? You must act in exactly the same way.
Maybe there is something that will not be consistent with your approach. Maybe the investment horizon will be too long? or maybe the risk is too high?
It’s better to know all about it at the beginning.
Also remember that a given project does not work in a vacuum and encounters different problems just like any other company, and despite the best efforts of the creators, something may go wrong. Also, try to assess the environment in which the project competes. Why should it go? Where is his advantage? The creators of the project will always look optimistically into the future, does your objective eye share their enthusiasm?
It’s better to reject two good deals than to lose on one very bad. Therefore, before you make a transfer, understand the industries, understand the project.
Warren Buffett did not invest in technology companies for a long time, because he did not understand them, did he lose it? No, he earned and slept peacefully because he invested in what he knew.
Okay, I am starting to track your progress from the very begining really, thanks in advance for everything you may have for us. I see a very good start then some small loss, but “I just don’t understand why these big trading houses and firms don’t just toss out their millions and millions and millions of USD worth of software and hardware and the rest and just go out and buy some cheap computers and install MetaTrader and run a few EAs. Man those dudes are dumb.” LOL
Nydorenn, thanks for your answer.
Losses are a normal thing in trading. But many people treat it like a taboo.
I often see various topics on the forums where someone starts to lose and it meets with a wave of criticism and he leaves the thread. Loss is a natural thing, and the ability to persevere them is what made you a trader.
Blockquote
“I just don’t understand why these big trading houses and firms don’t just toss out their millions and millions and millions of USD worth of software and hardware and the rest and just go out and buy some cheap computers and install MetaTrader and run a few EAs. Man those dudes are dumb.”
This is major misunderstood of the market participants reasons to trade.
We, as a retail traders, are not supposed to be better than BIG TRADING HOUSES and FIRMS. We are supposed to profit by following their moves / sentiments which are intraday trends.
I showed the relation below 
:
I am starting work on another strategy. I want to share my results with you and I will gladly get to know your ideas.
Initial outline:
Time horizon: daytrading
Trade type: for false breakout or for impulse exhaustion
Stop loss for the last top / bottom
closing the position: at 18:00 (at the end of the day)
Trend following
In the next post I will describe the assumptions of the entry.
I think you misunderstood my post.
My point is that people think they’re going to create an EA that’s going to generate huge profits on a percentage basis that is W-A-Y more than what the big trading houses and firms are able to accomplish with their hundreds of millions of investment in automated trading. It’s just not going to happen. Simple as that.
And that’s going to be your problem right there just by the way. Too obvious.
Thank you for the explanation.
Now I understand your point of view.
So as I said, retail traders are not supposed to be better than the BIG ones.
The %s can be higher only if retail take higher risk which often results in margin call.
Also there is a difference in portfolio management for retail and for trading houses.
For the stop loss - thank you for your opinion.
Don’t you think that m30/h1 tops and bottoms are strong enough to hold?
I don’t know really i.e. I only trade daily charts. But my guess would be no. Maybe look at the tops and bottom PRIOR to the previous tops and bottoms??? Just a suggestion.
My experience with all trading system that have you place stops on this basis is to place them “a few pips” or “a few points” above or below the previous high or low points. Problem is: what is “a few” and how much is “enough”. So better in my opinion to trade with much wider stops but smaller positions sizes. But it’s just my opinion (albeit based only on my own experience).
I really appreciate it. Thank you
This problem can be partially solved by backtests but we do not find the perfect solution only with a statistical advantage.
Exactly. Too many people try this and end up curve fitting a system. All that happens is that it works for a certain period and then it doesn’t.
Strange as it may sound: I’ve never back tested any system in an automated way. Only ever by printing charts out and sitting with a pen or pencil and tracing trades through. And if it looks as though it may have a bit of merit then I’ve just gone for it. That business of tweaking little parameters here and there to the last pip or point will drive you insane.
Another trading rule:
4 Never invest all funds in one project.
As Warren Buffett says - “never put all eggs in one basket.” Despite the sincere desire of the originators, there is always something that might go wrong. Your task as an investor is to ensure the safety of capital. If you focus only on one project, in fact you become its biggest believer, because the fate of your funds depends on this project. If you diversify your portfolio for various assets and wisely share funds, you are able to withstand the loss of part of the capital, because other projects will allow you to make up.
Be independent, share funds for various projects, thanks to which your capital has a better chance to survive and multiply 
Another thing to consider:
04 I understand that the results should be considered in a one-year horizon.
Every beginner trader thinks that one can be profitable on the stock market everyday. That is why he sets goals of 1% a day, 100 USD a day, 10 pips a day. When it turns out that maintaining such targets becomes unrealistic, it goes to a higher interval. In the week of 1000 USD, etc. But this also will fail.
Why?
Well, because as in any business, the same is true of the stock market cyclicality. There are better and worse times. A lossy month? Normal thing, and 3 or 4? Also. Why? Because on trading you need to look long-term. The investor’s goal is to patiently wait for a great time for his strategy and to survive the worse time and so on and on. Best of all, sometimes it takes 1-2 months a year to get a magical average of 100 USD a day.
Well, but right? This is only average … and as it turns out, a person looks at what is in the middle, and forgets that the extremes determine the final result.
That’s why the best investors are not those who earn every day, or every month, but those who are patient and can use opportunities. Because one good trend will pay for everything and will make your results much better than your dream of 1% per day.
