Thats exactly right :p. On those charts it looks like he is using HA candles which shows him the trend, if the previous candle is a bearish HA candle then look for shorts off the 2 LWMA high, vice versa for longs :p. Not 100% about what he says to do during ranging periods though. I’ve been trading GBPJPY in a range for a while now.
Well, GBPJPY was a win, GBPUSD was a loss so I’m BE for the day.
It’s trend follower, during a range you should be:
- ignoring it completely;
- using something else to trade the range like just a simple bollinger 20:2 or just SR and, dare I say it, you can even use oscillators during ranges - that’s when they work best.
I’ve found that the LWMA strat + the times I mentioned in a previous post = good pips. Have yet to have a loss on GBPJPY, 1 BE and many many wins.
So do you act on every touch/breach of the LWMAs or are there times of the day you choose to ignore them (I’m thinking of the second half of NY session). Scoob, I believe you said 6:30-9:30 am was best for you?
I’ve done some back testing and found that it’s best to take the breaks from 6:30-9:30 GMT. I only take one trade per pair per day. If GBPJPY gave me a long signal I’ll take it and take no more signals for the rest of the day. Late day trades usually don’t work out too well.
For myself Merchant I will take the trade automatically as long as the parameters are met and trade the direction of current trend. The only exception being not Sunday night… low volatility tends to screw around with the hi/ lo LWMA even on the daily.
RC why do you think the short on GBPUSD didn’t work today? Was there news today or something, or just one of those losses you have to take?
Are you both just trading off the Daily then? I was wondering about taking the direction from the Daily, but using the 4H for entry signals when the HA candles change color in that TF.
It’s a question of timing on the lower TFs and risk. Using HA candles, you’re going to be getting in late due to the averaging but perhaps that’s ok if you have a wider SL.
I’m only demoing RCs weekly HA, gonna give it another week or 2.
I wouldn’t use HA candles for anything else personally.
On the lower TFs just stick to SR or use the 20:2 boll with wicks like the good old days 
am sure RC has a take on this as well - I guess perhaps if you’re using a LWMA on the 4hr also?
My entry was 1.514 now at -24 after PA spiked through the hi LWMA. I will let this run however and see where it goes. Personally I think down… still plenty of space between hi/ lo.
No system I know of is entry pip perfect thats for sure! Its a percentages game when alls said and done… just make sure your on the plus sides of X number of trades. 
My preferred poison is the daily TF on this set up. I will sometimes take a much longer trade same set up on the weekly TF though.
Daily and up. HA candles are only to confirm the trend which shows you which direction to look for trades. If the previous daily bar (and preferrably current) are bearish HA candles then look for shorts off the 2 LWMA high. It is sort of like trying to get the best entry on the long term trend.
You can use any TF you’d like for entries if your entering when PA hits the 2 LWMA high/low on the daily. I’m using the 15m but just so I can see what PA is doing throughout the day. It’s the exact same as if I were trading off the daily.
So do you simply set Entry Orders at those high/low LWMAs on the Daily (at those certain periods of the day we discussed)? Or do you employ [I]price alerts[/I] at those points only - so that you can manually shift down to a lower TF (like the 4H) and place Market Orders when there is an HA color change (or price stepping outside the MAs/outer Bolls) in favor of your anticipated move?
It would seem manual would allow for more precise entries (and presumably smaller stops); the set-it-and-forget-it method of setting entry orders at the LWMAs would probably require stops equal to half the current channel, I’d guess.
Your thoughts?
Incidentally, RC, I’ve attempted my first draft of a Marketscope template of your Daily. The differences on mine were the lack of regression lines, std Bolls, HA candles instead of bars… and it’s on a white background. 
The MAs move quite a lot when price gets near them so it is best to set price alerts above the LWMA high and below the LWMA low. Once it is hit it is time to start looking at that pair. Once price hits either one in the right direction and show signs of reversing you enter the trade. No switching TFs needed.
1 win and 1 BE today.
I have an EA which alters the pending orders right at the LWMA but it’s based on the existing or previous HA candle. Obviously, there are a few charts this week that are flat or changing, which is causing some issues.
Closed:
GJ short 0(was +150),
GU long +170,
EChf short - 38,
EU long +170.
Remaining trades on about 6 pairs for Friday agrregate -60pips.
I like your idea of looking into the PA at the LWMA…
The above is just vanilla, set orders with trend and forget…all above on demo.
You can always set the EA to ask manual confirmation before taking trades, that’d be good :P. It would help make sure you’re getting the trades and the trades you want. SM which broker and charting software are you using to trade this strat? And, would you mind sharing that EA? I know of a good use for it :p.
I’ve attached a chart of my GBPJPY trade today. The grey box is 6:30-9:30GMT the arrows show where I entered the trade and where I exited the trade. The red lines are the 2 LWMA high/low daily. The green line shows my TP. Hopefully this will help you see how I’m trading this. Remember RC doesn’t include the time filter in his trading.
So, you’re waiting for a wick outside the bollinger and outside the LWMA and then entering…then exiting at what is essentially the middle band of the LWMAs (like a bolly but not)…
GJ trend is sideways to up though and this is a short?
Howver, if you’re going with the trend, it’s not much different to just entering at the Daily LWMA price.
Nice Merchant! Couple of things though… I personally don’t like to get that zoned in to a price bar. Secondly I actually don’t like having up a 20:2 on the daily… you get into a mindset like the 5m or 15m TF where you expect PA to go crashing through the hi/ lo boll and miss the hi/lo LWMA becuase you figure PA is no where near the boll hi/ lo.
Heres a screen shot of mine.