AKS - I am just looking for 10 pips/trade. I will load up with lots, get my 10 pips and get out. I’m retired so I can watch the screen so if a trade is going my way I know how to adjust the TP!! I have never done very well with “Set & Forget” type trades. I believe JohnnyK trades for 10 too but not sure and I haven’t reread the thread. My only other choice would be possibly fibo or nearest S/R. Nearby S/R is where price has been recently.
I would say wait for price to (for a short trade) to close above EMA 5. If you want to trade safe you could use also this: after the trade gets to 1:1 risk/reward close half of the position and set stop loss (SL) to breakeven (BE).
If I’m at my computer i will close the short trade if price closes above EMA 5 even if SL is not hit yet.
Regards
I hope everyone had a good day. I just stopped in to drop a quick note. Sorry, no charts… just results.
I started off with a trade that went south on me in a hurry for -12. So I took a step back, looked around and saw the E/U dropping on the 15M, 30M, 1H and 4H, so I took a short on the daily for +32. I moved the stop loss to BE when it reached 20, and when it entered the 30’s, I was at my goal of 20 for the day, so I closed out a happy camper.
Thanks Dobro and Roggyfx.
Dobro- Set and forget is not working for me either- even though back test results look great. I can not watch trades constantly since I work and can not trade from work place. If I understand you right, you set an upper limit of 10 pips per trade and load it with lots in the interim- for example a 10 pip TP target would translate into (10+9+8+7+6+5+4+3+2+1)=55 pips. Is that correct? What is your timeframe? 10 pips per trade on an hourly chart?
Roggyfx- Thanks for your suggestion. I will try this, however I have been using an exit strategy similar to this (waiting for HA to change color) without any benefits. My fear is if I wait for the candle to close above or below the ema- will it wipe off the profit? I have been seeing that with my current exits. Please advise.
AKS - No, I just go for +10 pips on the 1H TF. 10 & out. I am still demoing this strat. so my next effort might be to set a +20 goal with a sound alert at +10. When the alert goes off take 1/2 profits, move the SL to BE+1, and see if it goes to +20. I do miss the big moves trading for 10 pips but if I can grab that many in every trade my acct. will smile. d.
Hmm … with this strategy the win % ration for 1:1 risk/reward is very high … so even if you are closing all the positions at this level it’s OK. Even 1:2 RR is more then 50% win.
But if you are looking at some more “tools” use: trend lines, fibo retracement and expansions. I also use two EMAs 21 and 55 to determine trend. Very helpful is also weekly and monthly pivot points.
Here is mine 1h EurUsd chart (i will delete the link after 1 month) http://clip2net.com/clip/m81565/1310037429-clip-39kb.png
- the green circle make a valid buy entry: candle color change + price closes above EMA5 + TDI cross upside below 50. Only Stoch is not in oversold. But the trade is counter trend. So we must be careful.
- the blue circle make a semy valid trade: candle color change + price closes below EMA5. But TDI crosed downside below 50 level + stoch was not in overbought area for quite a time. Why take this king of trade?
ad2:
- the trade is with the trend (EMA21 below EMA55)
- the bear candle closed even below the 1h raising trend line
Trendlines and pivots color explanation:
- purple: daily/monthly
- brown: weekly/4h
- orange: 1h
- blach: daily pivot
So the bottom line is: you can use the strategy purely mechanical. But to get the most out of it … use it with other technical tools.
There is another thing: if u miss the entry on 1h chart (if the trade is still valid). Switch to 15m chart and enter with the same rules in the direction of the 1h trade. Threre are always some pullbacks 
Good Morning All,
I looked at the 15M, and 30M on the usd/chf and noticed I missed a great move, so I went to the 1H and found the entry point I needed to take a long position.
Like Dobro, I’m looking for short gainers with higher lot size per trade.
I started off looking for 10 pips a day, but have upped my goal to 20. Today I hit 17 pips. I would have held on longer but I have to get ready for work, and I just dont like walking away from my computer while I’m in a trade.
Another BIG reason to get out is that a “non-farm” announcement is coming out in 45 min. Not a good idea to be in a trade during big news releases for the currency you’re in.
I came close to 20, and I’m fine with getting out “IN PROFIT”.
Happy Hunting Everyone!!
me too! At 07:48 CDT I bought the E/$ @ 1.42571 and hit 1.42670 in less than 15 minutes. It went on for another 10-12 pips I think but I’m loading the camper for a long weekend and just wanted my +10. R/R stinks but I am working on that too, much left to work out.
Amish - what is you SL plan for this strategy? d.
edit: This was on the 15M TF, perfect setup. The 1H wasn’t showing the best setup.
Thanks Dobro. Appreciate your suggestion and comments. I think that might be a good starter strategy after all(10 pips per trade).
Thanks Roggyfx. I use trendlines based off price action- not as a signal but as a ballpark guideline as to whether prices are headed. I normally do tend to avoid counter trend trades- but looks like we can still take it with small take profits. Question for you- 1. How do you determine the trend? I normally look at daily chart for the trend and take the color of the HA candle for the direction of price for that day. For example, if the price action is heading north but there is a retracement for a couple of days with Heiken Ashi turning red, I would go for short trades for those days on 4 hr chart (even though the long term trend is to be long).
2. If you trade on hourly charts, when do you trade? Office hours coincide with the peak trade hours- so I am wondering on how do I trade hourly if I have to.
Thanks for sharing your experience.
EUR/USD confirmed long on 4hr chart.
Marvin the Martian—“Give me all your PIPS earthlings.”
Update 07-08-11 Trade would have failed. Stop would have been hit. Glad I did not trade it. Maybe next signal will be a good one.
I use a 1:1 RR. I have my SL set at 20 and aim for 20 pips. When I first started this system I tried a few swing trades. There you have to have a really large SL because price sways up and down soooo much. Well, after a couple of those big SL were hit, it left a bad taste in my mouth. I have a small account as it is, and big swings like that are too much for me. I know you know, but I’m giving long answers for the noobs to our thread.
Have fun on your camping trip!
Sometimes the 4H and 1H chart show just the opposite signal, what to do in such conditions? Should I wait or look for more higher timeframe?
That depends on your trading goals and style. If you want to hold a position for a few hours or more, then look at the trend in the 4H and Daily. If you want to grab 10-20 or so pips, I go down from the 1H to the 30M and 15M.
I usualy trade the London session from my office. I have my own bussines so no boss above me 
I determine the medium term trend by EMA21 and EMA55. So if the trend is UP and we are approaching some 4h or daily resistance/trendline or some pivot/resistance (monthy or weekly) and some other confirmation will occur (i like most bullish/bearish divergence with stoch) i will take a counter trend trade. The trend in its basic definition si higher highs and higher lows for uptrend and oposite for downtrend. And could be diferent for diferent time frames. So even if on daily we have a downtrend we can trade corections up on 1h chart … 
My thoughts are this:
If you don’t have the time to look at the charts you have two options:
- trade the 4h charts or even daily. Just look at the chart every 4h if there is a setup, enter a trade, place your TP and SL and leave it.
- trade the 15m chart for some 10-20 pips in the direction od 4h and 1h charts. So if 4h chart is green and 1h chart is green look only to buy on 15 chart using the same rules.
That’s it.
Let take a look at EU now 9AM GMT:
Daily chart: http://clip2net.com/clip/m81565/1310115369-clip-25kb.png
We are in the middle of a triangle and the long term trend on daily is bullish. The candles are red so we could expect a retest of a bottom purple trend line. Because this triangle is forming from a previous obvious uptrend is called “bullish pennant” … Pennants: The Free Forex Encyclopedia. So there is more chance of a break up.
4h chart: http://clip2net.com/clip/m81565/1310116268-clip-28kb.png
What makes for me a valid signal: candle change color + price close above/below EMA5 shift2 + TDI cross. All other things depend on what the chart is telling me.
Look at the first blue vertical line. Could be a valid canlde for enter. But you on the next 4h candle price reversed
The second vertical line on the 4h candle is a good one. The price get back below the trendline. Although TDI crossed some time ago there is a good angle in TDI. And from there was a free fall. Price never closed above EMA5 for 260 pips. Take profit 1 on monthly pivot close half and move SL to BE for the other half. Booked 60 pips. Weekly pivot didn’t gave any resistance so next TP weekly support1. From here u can close or wait to get to the bottom trendline. I closed and will get in this 4h candle when closed. But there is a potential risk on 1h charts.
1h chart: http://clip2net.com/clip/m81565/1310117631-clip-27kb.png
There is a potential bullish divergence to form and remember we are in the middle of the pennant. And US Non-Farm Employment Change and Unemployment Rate coming out today.
And on the 15 min chart (http://clip2net.com/clip/m81565/1310117847-clip-15kb.png) we are oversold and i think some correction will occur.
Thanks Roggyfx. I do trade on daily with a system very similar to BigE and did not find that profitable so far. Looks like I will have to fine tune based on BigE system. 4H and 1H are difficult to follow- as one have to be present to monitor the trades. Thanks for the charts and suggestions. Appreciate it.
Hello, Are the arrows still repaints with all the TDIs presented ?
What about the TDI, is it repainting too ?
Thanks for all you did guys…
Nice to hear everybody is doing so well. Maybe 10-20 is a viable option. I find it is definitely easier to hit a smaller target than a bigger one. I never cared to much for swing trading either. I guess I am more of a scalper at heart.
Quincy welcome to babypips. TDI does not repaint as far as arrows I don’t use any so I don’t know.
Amazing move for the EUR/USD on 4h chart, begin July 8th @1.4326, already made about 400 pips… (demo accounts, so bad)
Thanks Johnny
Edit : 450 pips !!!
Hi All,
This strategy is a great basis for forming ones on strategy based on individual requirements. It is in fact the first one that i’ve seen that gives me any confidence forex trading can be profitable for retail traders.
I am in the process of testing it out and working out my R:R and S/L parameters.
I am looking at AUD/USD 1H chart at moment, and there appears to be a cross above 5MA which will coincide with with a TDI cross upward at 50 level. I will wait to confirm the above close and enter at next candle. July 13th @1.0612 01:00
- UPDATE:
first 20 mins of buying candle shot up + 25 PIPS. Unfortunately due to poor software of my broker (igmarkets.com.au) missed out on opening the trade. Oh well, a trade missed is better then a losing trade. Will wait patiently for next signal.
Will post an update