I’ve always had this problem, now I choose to take 50% of my profits at a point where I feel the price has moved positively enough, found tension, and its time to exit and not get greedy. This 50% banked makes it easier to let the trade run as I feel I have already succeeded. Then I just keep moving the SL accordingly.
BTW, I have just began demoing this system this week, its a very rational and simple system to follow. Currently I trade it on 15m, 1hr, 4hr. Trying to find ideal TF.
I want this indicator…hehe… thanks!
2155,
My preferred timeframes are the Daily and the 4HR. These are the most steady timeframes because they hardly ever change direction on you during the first minutes of taking a trade. If I can’t find a set up on these 2, I drop down to the 1HR and 30min. Every once in a while I take a trade on the 15M, but I avoid the 5M and 1M like the plague!
I started off an action junkie and always blindly assumed the higher timeframes above the 30m would be too slow and boring for me, BUT I was pleasantly surprised to find the opposite. When we have price action and a bull or bear trend is starting or bouncing back, the action I crave is there for me. I usually trade the London session.
BTW, I think that is a smart approach to controling emotion by taking 50% off the table.
dobro,
It’s nice to see I’m not alone in on this. This forum is nice to come to. It’s a shame the original forum on FF has turned into a circus of people adding all kinds of other indicators. That defeats the purpose of keeping it simple. If it aint broke, dont fix it!
BTW–If you’re familiar with the food and culture out here, and want something in particular, I’ll send it out to you. Let me know.
Thanks for the kind words.
amish…
I lived in Pittsburgh many many years ago and PA is a beautiful state, I hope to visit again sometime. Back on topic - this thread is far better and concise for the strategy but if you read the posts from Sat. & today over on FF there is some good discussions about price action being more important than the cross - see Dean’s posts. I would copy and paste to this thread but I don’t think that is allowed or proper. Thanks for participating, d.
Hi AmishBuggyFX,
thanks for the insight, I think you may be right about the longer time frames. Price action / candles are always more reliable the longer the TF. I’m gonna go ahead and concentrate this week on demo trading the 4hr and 1hr charts for the Big E and see if I can improve my win ratio.
Been following this system for a while and it has served me well so far. I entered into the aud/usd trade right on the edge of it tipping downward towards 1.055, at 1.0660 or so on the 15th June. I came out early around the 200sma support at 1.0625 or so. I wish I hadn’t as it further dropped another 90 pips, but I managed to pick up a few further pips when I could see it moving down quickly again.
I have had a fair few trade ideas using this system and on paper I would have made a profit on all of them. I trade the 1-Hr and 4-Hr time frames as using these I find that there are less fake crosses of the tdi and stoc signals.
So far very impressed. My advice is to be extremely patient using this system and not to jump into every signal cross. When you are certain of a win, back it with a higher pip value and get out quick. dont go into 10 trades with one lot each, go into 3 certain trades with 3/4 lots in each.
i did have a picture to post but I need to make 5 contributions to these forums before i can submit a photo.
I went long on usd/cad 30M this morning and hit my 10 pip goal for today. No screen shot, late for work!
did anyone take the eu or gu longs this morning? They are moving beutifully also ej is moving too. Hey Dobro I think its okay to quote from ff I have done it before. Just inj fairness to the author link to his post. Youve been around here long enough I’m sure admin realizes this is an intellectual property thing and not you driving traffic or whatever.
Johnny, I took GU long. I’m staying away from all of EUR pairs for the next couple days. This whole Greece thing is making me uncomfortable. Also, I read something about Greece default could be the next Lehman Bros. The last Lehman Bros was too bloody for me.
So Amish do you shoot for only 10 pips of of 4h and daily? Is your method more about the “guaranteed” 10 pips and get out?
I see some discussion about taking partial profit but I would say take it a step further. Sometimes you can hit a homerun and make a killing. Here’s what I do.
A lot of the time I have a set t/p in mind and I open an order. If I cannot be there to trade than I take 100% at that tp level. However if I am able to manage it here’s what I do. I open the order and when I hit tp1 I close 50-60% and let 40% run. if it hits tp2 I close half and let the last 20% run. For stops when I hit tp1 I move stops to be at tp2 I may or may not move the stop up. That last 20% may move hundreds of pips with some breathing room. You would be amazed what 1 really great run can do with your 20%
If you risk 2% overall and your r:r is 1:1 than when you close your first 60% you have locked in 1.2% and you are letting 40% move towards tp2 now if tp 2 hits and you close half (again lets say 1:1) now you have added about .8% for a total of 2% on that trade but that last 20% if that sneaks back and closes for a loss you still made around 1.2% on the trade but if it continues and you managed to catch a big move you could conceivably add 100’s of pips. lets say for arguments sake the stop was 50 pips so your tp is 50 pips another words 50 pips = about 2% that last 20% or around .4% would move a total of 300 pips or 1:6 r:r. that last 20% would = about an additional 1.6% and the total trade value would be +4.4%
sorry for the complex post I am trying to explain this in simple terms.
initial trade 50 pip sl 50 pip+ tp
close 60% at +50 1.2%
close 20% at +100 +.8%
close 20% at +350(200 past tp2) + 2.4%
total on trade 4.4% risking only;
50 pips initially
than risk free
than +1.2%
and if you move your stop on the last 20% you would have locked in +2% with a huge potential.
Johnny, I took GU long. I’m staying away from all of EUR pairs for the next couple days. This whole Greece thing is making me uncomfortable. Also, I read something about Greece default could be the next Lehman Bros. The last Lehman Bros was too bloody for me.
Read more: 301 Moved Permanently
You have a good point. If Greece fails would that kill the Euro? Would the ECB step in with some intervention to stablize Euro’s value? Will all this bolster the value of the dollar? Very unpredictable. Maybe it is best to let things play out a little bit.
What do you mean one set moves one way and the other set moves another way? In what way do they move?
Hi johonnykanoo, I have two questions for you.
1- do you look to trends in bigger TFs? example: if the system gives a buy signal on h1, but the trend on h4 is bearish, do you take the trade anyway?
2- you were talking about a new indicator, it seems interesting, but I’m not able to send you emails…
Thanks for your help,
Andrea
hollywood welcome to the big e and babypips of course. the indicator is completely unrelated to this method. Sorry for any confusion and especially sorry to amish I know he is disapointed in another thread do to to many indicators being added.
Having said that if you leave me a visitor message with your email I will email the indicator to you.
As for the bigger tf thing it is a yes and no. This method doesn’t require it and I pull the trigger on a signal and I don’t look back but I am remiss not to notice the bigger picture.
As for my money management post above keep in mind 50 pips was an example. you could do the same thing with 20 pips tp and sl
close 60% at +20
close 20% at +40
close 20% at +80-100
these numbers are very easy to achieve on a 1hr tf.
With this method it is almost to confusing to check higher tf’s because they may conflict. Also keep in mind 4 h1 candles = h4 so by making the hi’s smaller you can see the bigger picture no problem.
big candles
small candles shows more of what is going on
you can see how the bigger candles tells less of the story. In a way the 2 charts are conflicting but not really. The big overview is down but in the last 60 candles or so the trend has been up so I would not fight to go short untill I saw a clear sign on the h1 and for me the clear sign would be a break of the last low which in this case is the 1.4200 level.
So another words I define a trend not by tf but by higher low and higher high and lower low and lower high.
In this instance if the higher low is taken out than I would consider the upward move as broken. Of course the bullish trend could continue and I would consider it an uptrend if the previous high got taken out. If this happened back and forth more than twice I would consider it a rangebound market.
I hope it is not to confusing.
Definitions
uptrend: Higher lows and higher highes
downtrend: lower lows and lower highs
end of uptrend: when the lower high is taken out by a lower low
end of downtrend: when the lower high is taken out by a higher high
Looks like you have a great system in place JK.
My initial goal is to get 10. If I adjust stops and go for more depends on what is going on in the news, or if I need to leave for work within the next 1/2 hour. If I can babysit the trade, I will move my stop loss to break even after it gains 10. Then after another 10, move SL to lock in the first 10 gained. Honestly, I haven’t been trading this way for very long. I like the way it is going so far.
My previous method of trying to gain as much as possible every trade eroded 50% of my account, so this “10 pip” system is my adjustment.
Today has had it’s way with me so far, though. I’ll be back tonight with my results, … the good ,the bad, the ugly.
Hi folks,
I have been lurking on Babypips for a long time and lately following this thread very closely. I am an automated trader so i thought this system would be great for an EA as it is purely algorithmic.
I have written the EA per the technical rules: TDI crossover, Stochs, EMA tunnel, etc.
The only thing i have left out is the Heiken Ashi candles because that doesnt seem to play into the algorithm. (Or does it?)
However, after trying several permutations, i still cannot get the EA to be profitable in back tests of the past year.
If anyone is willing to try it and tweak it, i would be happy to post it here. And if anyone knows MQL, maybe they can spot what i am doing wrong. Perhaps together we can come up with a profitable EA.
What do you guys think?
Hey everyone! Im still somewhat of a newbie, have been trading for about a year with off and on success…Im applying this method to my trading and seeing where it takes me! Trading is no joke and its been quite an uphill battle but Im determined to make this Forex trading thing a reality … anyway looking at the 4h Eur/aud, I think Ive spotted a possible set up … TDI touched the 68, after boucing off red for a while it finally crossed over Red, Stoch is at 80 and heading down…waiting till next candle closes to do anything…Anyone see this? Possible short signal? thoughts? Id love some feed back 
Also should we wait until TDI is ABOVE 68 then cross back down below ?
thanks,
J
for some reason sytems that get turned into an ea never seems to work out. I don’t know why and I don’t know how to code. Maybe someone else can help you with the code. Who knows it may turn into a great ea. Did you try pm’ing Steve Hopwood over at ff. This thread is hot there maybe he will be willing to help???
Jacob welcome to babypips. I just glanced at your ignal and a couple hours late it seems bt it looks like it moved down some. Not a bad trade. I personally get beat up when I trad this during Asia though but you are trading an AUD pair so who knows maybe it wasn’t a bad idea. looks like it move 20+ pips over the past 3 hours or so. Who knows how much more it may move.