yeah, he’s told me about the hedging. I’d like to try it but my live account is with Oanda and you can’t hedge unless you open a second account. I need to move over to a UK account so I can do that cool stuff! Looking at a 4h chart just now, if you draw a trend line along the bottom of this long uptrend, price is hitting that trend line now, so it may be bottomed out and ready to head back up, unless it breaks through the trendline
Well first 12hrs of testing this method and i gained 134 pips… on demo lol
Mike G
Thats good results MG,
Yeah I like the method, im gonna be testing it until the end of the week and than sunday if i feel things are good i’ll try it on my live account.
Mike G
[B]R Carter[/B]
I have started to hedge retraces in Oil for my medium term positions.
If I understood you right you mentioned a similar tactic in this thread you are using.
I just wonder on what criteria you would decide to close a trade that is a hedged retracement…?
With that big move in Oil yesterday I hedged 3 retracements using 5:1 BB on 5m.
My entry was a wicked candle on outer 5:1 BB. Exits I had to second guess on 2 occasions because PA went way outside outer 5:1 BB to outer 20:3 BB…retraced and kept going…and turned around 2 candles later. So, I closed my hedge 2 candles too early because outer 5:1 BB got hit 2 candles before.
Switching to 15m didn’t help because I couldn’t track PA as accurately as on 5m.
I guess…one could use as a exit criteria 5m outer 20:3, 20:2 BB’s as well. 
[B]CAS[/B]
Were into some pretty advanced stuff here… the trick in hedging is the longer time charts for placing trades and using the shorter time charts for placing an obvious retrace hedge. Say 1h - 4h to place a trade and 15m to hedge.
If your more comfortable with the 5m and 15m I would forget the hedge and go with the following set up some of which it looks like you have already adopted from your posts… I expected nothing less.
5m chart. Bolls set to 20:1, 20:2 and 20:3. Centerline is nuetral. Price will mostly move within the 20:1 boll when not trending. [B]Place a trade [/B]at the 20:2 upper/lower boll line or at wicks in between the 20:2/20:3 boll lines. Place a stop at or just above the 20:3 boll upper or lower line. I open two trades at the above point and TP1 is the 20:1 boll line. TP2 is the nuetral center line of all the bolls. Hope this helps.
When PA is trending it will probaly be due to news in which case I will be out… I never trade high impact news. But if trending under (normal) curcumstances. I trade the 20:1, 20:2 and 20:3 in this way.
Say PA trending down. I place a sell at the center line of all bolls or the 20:1 upper boll max. TP1 is 20:1 lower boll line, 20:2 lower boll line is TP2. SL is 20:1 upper boll line.
It sure did, [B]Mr. Carter[/B].
Adding that [B]1:20[/B] BB on 5m and 15m gives me the extra “two lines” I need to time my exits and entries for that matter.
Your suggestions in regards to trade placements using 5m 1:20 are also very helpful.
Thank you very much. Much appreciated.
well I’ve got those three bolls on my 15m perhaps that will help me some during the overnight Asian. Occasionally drop down to 5m too. On my 1h, I’m doing pretty good. And I added the 5sma tunnel, actually made it a 7ma, seems to work better. We’ll see.
Wish I could trade actively during the day.
TalonD,
I notice that RC sometimes refers to your 1hr strategy.I have looked at most of your posts here but couldnt find it.Kindly give a hint or the post number about it.
Thanks in advance.
John.
Hi John4pips, it’s pretty simple. put up a 1h chart with a standard bollinger. The center line of the bollinger is a 20 period simple moving average. Then put up four moving averages, periods 3, 5, 7, and 11, the exact value doesn’t matter, I picked those because they are prime numbers and I’ve dealt with those a lot. Those should be linear weighted averages. make them all the same color. mine are red. you don’t want to look at candles. change to a price line. That way the candle wick spike don’t scare you out of a trade. The rule is when the red MAs cross center bollinger line going up, you buy, when they cross going down you sell. Try to recognize when price is going horizontal and avoid trading at those times, but even in those times if you have good entries and exits you may be able to break evenish. may loose some. but you’ll make the big gains on the trends. Trends tend to last a couple days, figure around 500 pips for 48 hours. I’ts been working pretty good for a while now but I also get messin around with the 15m and end up loosing my arse :rolleyes:
edit:
here’s a picture from tonight / today. I broke my rule and entered early rather than waiting for it to cross center bollinger. The big yellow line is where I had my trade. Made about 94 pips. It’s close to strong support though so I got out of the trade.
Forgot to mention, the blue line in that chart is a 69 average, shows a longer term trend. And another of my favorite numbers… err TMI :eek:
That’s the biggest problem with the 15m - knowing when to stay out
A 50%+ wick on the 20:3 or a 75%+ wick on the 20:2 seems pretty high probability. Trading with the trend will increase this further or rather…your TP points can be further.
I like RC’s idea of trading trends with retraces from the 20:1, eg up trend, take a LONG when PA reaches the bottom band of 20:1.
I believe that’s the theory but I haven’t tried it yet - similar to the three line whip but I haven’t had any success with that so far.
I suspect that a 7 is way to slow. It defies the purpose of the “tunnel of 5”.
The “tunnel of 5” is about speed and accuracy. The faster the better IMO.
I’m using it on a 1h chart though just as an indication of trend. I’m trying to stay in when it’s trending and out when it’s ranging. Also combined it with some haiken ashi candles. Here’s a pic. I scrolled back a little bit to get a clearer illustration. yellow 7 bands, and ha candles show some space between the yello 7 line and the candles, when the candles start covering both 7 lines, no space between them and mixed red and white candles then stay out.
sorry, colors don’t show up well in that pic, but I think you can distinguish which are the 7s vs. bollinger lines
R.C. I was going to email this to you and ask your opinion. but I’ll go ahead and post it here.
What is the lag like on the HA candles as opposed to the MA?
257 pip gain last night…i have nothing to say than that im purely amazed.
Cheers. MikeG
M. G. you traded the news? I think that’s where a breakout strategy might pay off.
SanMiguel, there is some lag but on the 1h it’s not that noticable and it helps hide some of the noise that might fake you out of a trade. I only just started playing around with it though so just a work in progress.
I would like to trade the shorter time frames bb bounces, hedges and such. like R.C. and Cass but with the day job it’s hard to do that.
[B]TalonD[/B]
Did you follow on your charts 1h, 15m, 5m, what happend to EU & GU this morning during news time…? 
Thanks very much…I rather go to the casino.