I am currently testing the system on lower frames and trying to determine optimal SL for such charts. So i’ve only recommended it be traded on H4 for the time being.
I am confident however that experienced traders will be able to make wonders on lower time frames just as good.
I will let short term traders know what results have been like once i have a few trades under my belt in varying market conditions.
As it is said: “Unless a man undertakes more than he possibly can do, he will never do all that he can.”
Regards,
E. Lang
[B]“Im assuming you are using Daily S/R levels.”
[/B]In many situations you are able to predict an exit or turnaround before the price stops you out, if you draw H4 and D1 R/S lines prior to beginning the trading session.
Profit taking can be different for everyone it can be 30 Pips, or 50 or 100, whatever you feel more comfortable with before moving your S/L to B/E or cutting it by half to minimize any losses that my occur.
Scenarios will occur when you will have 2 or 3 consecutive losses at B/E or closed out on spread, just keep on entering the signals and when one of them picks up you will compensate for all the small losses. This tends to happen in periods of volatile and spiky consolidation.
So, i definitely recommend the application of S/R and even Pivot Point, to better gauge exit levels in conjunction with the Ex/Op technique.
Regards,
E. Lang
[B]"I notice you call for 1ATR or 2 ATR as the SL.
There may be 60 pips difference in the two.
How do you determine which one to use?"
[/B]Anything between 1 ATR and 1.5 to 2 ATRs will generally be fine for a SL.
You will notice however that in almost all cases before your SL is hit a new entry signal in the opposite direction is presented.
When we have heavy consolidation we can get quite a few false signals, i don’t deny this, but you will always be on top at the end of the day.
Another way you can avoid hitting your SL is by entering a trade before the H4 candle actually closes. As long as you’ve determined based on your TA or your sentiment that the candle will remain below 50 at the close, you may as well trigger the trade prematurely so to say.
This will normaly give you a better chance of hitting safe zones like 50 Pips or 100 pips so you can move to B/E or move your SL up 50%.
When i test or create systems i don’t cherry pick trends off the charts.
I scroll through all the major price action and test the system in areas of intense consolidation. When a system works there it gets my mark of approval.
Another way to trade this system is using two time frames side to side.
One H4 chart and a 5 Minute chart.
You execute using the same rules on the 5 minute chart (2 x ATR)
BUT
Only execute a trade on M5, when you have a cross/touch of the Stochastic Indicator on H4 off the extremities of 20 and 80.
I think you will need to test it for a while to get the feel of things.
I have no doubt that many modifications will be made to this as more people begin to trade it.
Regards,
E. Lang
Elang:
Does this work on any pair? And what pair are you testing this system with?
My oh my,
Did you read through it at all lol ?
It’s written: GBP/JPY, EUR/JPY and NZD/USD.
But be my guest to give it a try on other pairs.
Your feedback will be appreciated.
Regards,
E. Lang
[B]“but i don’t understand how do you calculate your stop loss…1ATR is 11.6687 (the value of ATR in this moment on gpb/jpy) ?so,what should i do with this number? I’m a beginner in Forex,that explains all!
Thank you!”
[/B]Hello ******,
1.6687 would equal an ATR of 1.66[B]|[/B]87 or = 166 PIPS.
It is a little dodgy.
Regards,
E. Lang
ATR is Average True Range, Right?
and what type of Smoothing Type are you using
Wilders or Simple Moving Average?
Dear MasterPlan,
All indicators are set at default.
The only changes are made to the MAs (We use EXPONENTIAL)
Everything else is default.
ATR = Av. Tru. Rang. / Yes 
Regards,
E. Lang
well on my ATR its default at 14 and the smoothing type is wilders. Im confused :(.
And your saying all indicators are set at default.
MasterPlan,
You need to actually read the system rules posted in the thread.
It clearly states that ATR needs to be changed to 100.
Leave the smoothing at default.
If that is how it is when you load it, then its fine.
Take it easy lol.
Regards,
E. Lang
[B]This is a potential trade based on the dual frame method.
[/B]
[B]
E. Lang[/B]