It appears your ATR was at approximately 5 pips on your entry, so that may be comparable…I think we would need to sample several different trades per TF to make sure.
Yea the ATR looked good on that last trade, it was at 4, if we used 2xATR that would have put us at 8 pips (5 pip profit after spread), right on target with the fibs. For those who don’t know how to use ATR to judge stops/TP, simply drop the decimals. In the trade above, the ATR was actually at 0.0004, dropping the decimal brought it to 4. When we say 1XATR or 2XATR, it’s 1 or 2 times that number.
IE: The ATR is at 0.0023. Drop the decimals yield 23. 2XATR therefore is 2x23 = 26. You would then aim for 26 pips as your target or stop loss.
Hope that clears things up 
On the Daily time frames the ATR was pretty close, off by 20 pips and a few of the trades barely missed the target and reversed for a loss. Maybe go for 1.5X on the daily might be a better option for target 1. Using 1x ATR for stop loss also yielded a lot of losses as it didn’t give price enough room to move. Maybe use 1.5 or 2x for the stop may be advisable, further studies are required to iron it out.
Any more thoughts on the subject?
Is there one pair that has seemed to do the best for you?
Also, do you just select a pair and start running through different TF, until you see one that looks like it’s close to a setup?
What type of idicators are the ZZi and MegaTrend? is the CCI (consumer comodity index) the same as ZZ? Is the Megatrend some kind of MA?
Would you mind, W, posting a live statement? I would like to do some math with it.
thanks
Is this method more suitable to trade the asian session?
About the risk/reward ratio…
Does it still seem fairly good?
Is an 8 pip stop loss too small on a 15 minTF? The reason I ask is the GU pair looked like it had two very good opportunities before the market closed, on Friday on the 15 min TF, the ATR was around 13 pips, and using 2X and 4X ATR for 1st and 2nd TP, would have hit both TPs, but a 26 pip SL, would have been not that great of risk/reward…looking at how these trades panned out, an SL of even 5 pips wouldn’t have been hit…
Do have an average SL amount for each TF?
Should I just use the ZZ swing dots for SL?
Thanks
Pip,
I always have GBPUSD, AUDUSD and EURUSD on the 5, 15 and 30 min time frame up at all times. That way, if there’s a signal on one of the time frames I won’t miss it.
Once I sit down, I cycle through to the daily, 4H and 1H on those pairs then I leave it at the 30 min time frame.
I also use this system on USDCAD, USDCHF and GBPJPY on the daily.
I believe the ZZI and CCI are the same indicator, the only difference is the line will change colour on the ZZI once it hits the overbought/sold zones. As for the MegaTrend, I’m not sure. I think it’s an MA but has some type of calculations in it.
I’ll post up a live statement once I get one ready. I’m not at home atm
Not sure if it works on other sessions or not, I don’t see why it wouldn’t though.
Pip, the risk/reward ratio is still good.
Think about it, if you were using the ATR. If you used 1x ATR for your stops, that’s 13 pips x 2 trades you’re risking to make 78 pips (13x2)+(13x4). That’s a 1 risk to 3 reward ratio. If you used 2x ATR for your stops, that’s still decent, not great but still ahead of the game.
2xATR = 26 pips x 2 trades = 52. That’s a 1 risk to 1.5 reward.
The thing with the ZZ swing is it repaints heavily. You may use 'em then end up having the dot repaint. Just be careful using that indicator.
I find using the ATR AND drawing Fibs so they are really close to agreement as being the most accurate for targets and stops.
-Windsorftw-
Is it a good idea to wait until FOMC is over? I’ve been paper trading this and a lot of trades were hitting SL, but the markets are also very flat right now, plus this Friday is NFP.
Do you know how many trades you average per week?
thanks.
So, hindsight being 20/20, I see that had I been on the 15 min TF on the EU and GU pairs, and taken the sell signals, they would have coincided perfectly with the news, with definite, quick TP hits…with almost no needed SL amount.
Pip, I typically avoid news release days. As I trade the Asian session, there isn’t a lot of news going on, but there are a few things that can impact the markets. What time of day do you typically trade, Pip?
If you do trade news release days, you need to be very very careful. At least on the daily time frames you don’t really notice news releases too much. That’s another reason I like trading daily TF.
I can have access to the markets from 6am EST to 11pm EST, but I would like to not spend all that time in front of the charts…by trading for 3 hours in the evening, do you get many trades per week?
What appeals to me about this strategy, among other things, is the tight SL, which allows a still small amount of the account to be risked for better profit…what I am saying is if I can get more trades, the better, because I’m going to try to trade the same risk% of my account, and with a 1:3 RR ratio, if I can, so a 24 pip gain on a 5 min TF is the same dollars as a 300 pip gain on the daily…6 pip SL on the 5 min TF, 100 SL on the daily, but same dollars…but more trades is only better if the win more than they lose, so it doesn’t feel like over trading.
Wind,
Are you using the same system in post #1?
Pip,
I couldn’t agree with you more. I get about 5 to 6 good trades a week across GBPUSD, AUDUSD, EURUSD on the 5M time frame between 8:00pm EST and 10:00pm EST.
The daily charts are just extra pips in the bank. They don’t occur often, but often enough to yield some income.
Yes I am, I just have custom indicators that alert me when setups are occuring rather than sitting and staring at my screen waiting. Life is too short
What is your method setting for the mega trend indicator on the 5 min chart?
is it ok to share those?
thanks
Thanks for sharing the new system again, the previous system make my win ratio increase, will try this system.
thanks a lots.
Hello ,
I`ve been trying this system for few days , and in my opinion SAR can really save you from false signals. Here is example.
P.s sorry for my bad English.
Hi Windsorftw,
I was wondering do you pay attention to the daily pivot requirement?
With some brief visual back testing it cuts down the number of valid trade entries quite drastically.
Cheers,
Slip
