Yeah I’m thinking of trading yen pairs as well, since the USD pairs don’t move very much during the asian session in which I trade, other than the AUD/USD.
Reaper, what is your criteria for your entries? In other words, what does the THV system have to show you on the screen for you to make an entry?
I really am starting to like the yen pairs more, there seems to be more opportunity although they are, like I said, a very expensive game to play, usually own at least 30 pips from the moment of entry.
As for entries I use the Trix lines, basically if I’m going short I’ll wait for them to cross above the gray 0 line and head down and vice versa for long positions.
If you don’t like the Trix, the MACD indicator is good as well, sometimes I prefer to use the MACD, even though it says the same thing seeing it visualized differently makes it clearer to understand.
Now my personal opinion with the yen basket is this, I do not wait for one of the yens to move down from a peak (going short) and then enter all of them. I get WAY more pips personally waiting for them to individually peak and enter one at a time, like I said with big spreads this really helps.
Also, when looking at the 1h charts, I have much better success rate when I have 2 strong downtrend/uptrend HA candles than 3 smaller HA candles. It often makes for a great trade because such a strong movement will get your pips easier and quicker then three smaller HA candles. Usually with three I have to cut it short and leave with 50-100 pips.
This is all my personal experience but so far it’s working for me. I really don’t think the 150 pip rule should be held strongly, there have been times where I’ve been trading and I’ve seen the the trend slow down/stop at a pivot point and I collected with a lot less pips if it doesn’t break through. Things like this need to be taken into consideration, as easy as this system may be there still needs to be some basic knowledge and forex rules to take into consideration. If I had set my TP at 150 and just left it alone I would have a lot more losses then wins right now, in the end collecting 30 pips or staying out of a trade is much better then losing 150 or more.
Ah I see, so to cliff note your entry method:
Identify main trend on 1h chart by 2 or 3 consecutive HA candles.
Enter on 1m or 5m chart:
-Long - When green trix lines cross each other below the 0 level
-Short - When red trix lines cross each other above the 0 level
Am I right?
Also, do you use the Trix indicator on the 1h chart or do you just look at the candles to confirm trend? And what determines your exits?
Yes, I prefer 2 strong HA candles over 3 weak candles
Yes, you can also use the MACD if you’re comfortable with that instead.
No I don’t look really pay much attention to the Trix on the 1h timeframe.
If you would like I’ll take some screen shots one my next trade and I’ll let you know what went through my mind during the trade.
As for exits, it really depends. Like I said when it’s close to support (if going short) and it won’t break through then I start looking for exits, heavy retrace that breaks through resistance and I’ll start looking for exits. Also I’ve been testing a strategy, when I reach 150 pips I’ll put a trailing stop and see how it goes.
That’ll be great!
I have some difficulties understanding the system. When 4 of the 5 pairs or all 5 pair have at least 3 candles is trending the same way, do you enter in the same direction the 4 or 5 pairs is trending?
ReaperKK,
Are you modifying the system to the cobraforex system? I am not sure why you are using trix lines.
The rules are this pretty much, when 4 of the 5 pairs (pairs in the basket being EUR/USD, GBP/USD, EUR/JPY, GBP/JPY, AUD/JPY) are moving in the same direction for 3 HA candles or more on the 1h chart then you look for an entry on the 1m chart in the same direction as the 1h chart.
If you’re going long then you are going to enter long if 4 (preferably 5) pairs are going long for 3 HA candles. You switch over to the 1m chart and look for the Trix line to be crossing over UNDER the grey 0 line going long to enter. Now the original rule was that once one pair crosses and starts heading long on the 1m chart then you should enter all the pairs. I personally disagree with this and enter them one at a time, like I said from personal experience, pairs rarely move on the 1m exactly the same.
You exit when you collect 150 pips.
The reason I use the cobrafx system is because that is what template that I was introduced to the Daisy Chain with. I know it’s a scalping system but it’s still good, the news indicators are great so you’re not trading around news time, there are many more reasons.
Just because I prefer the cobrafx layout, it’s not necessary to be successful, it’s just what I’m used to and what makes the market easy for me to visualize. I know a few people on this forum that were doing great using their brookers charting system, so demo and see what works for you.
I just closed the yen basket with 267 pips profit, I’m going to go back take some screen shots and kinda give a walk through so I should have a new post within the next 2 hours.
I’m going to try and post each one of my daisy chain trades (win, loss, break even) on here until September 1st, I’ll be busy with school then I want to post as much info as I can, and answer as many questions as I can.
Take note though, I’m 22, I’ve had my account since March of 09 and I’ve only been profitable since June. I’m a very very very new trader but I’ve invested a lot of time this summer learning (60+ hours a week) so please don’t hesitate to post questions and constructive criticism and I’ll try to answer as well as I can.
Thank you… i am sure your efforts wll be HIGHLY appreciated by this forum.I currently use Nick B method, Jame16 pin bar strategy… I am very much interested in this daisy chain system…
Alright here we go, trade 1:
Some info;
I’m with FXCM UK Micro, I enter my trades through their platform. I use FXCM Demo MT4 account so I can view charts through there. I really like FXCM trading platform so I like trading through that but I like MT4 because it’s great for charts.
I’ll be drawing on the charts with MS Paint.
The time zone that I’m in is NY EDT time, now my MT4 account runs 5 hours ahead so if you see the time there it’s actually 5 hours behind (I haven’t bothered to look at adjusting the time)
I’m using the cobraFX layout that came with Danny’s trading a few months ago, also I’m using MACD on the 1m charts instead of the Trix lines, I’m feeling more comfortable with the MACD right now.
It’s not necessary to use the same charts especially for 1h charts that I’m using, I just like the visual representation of the charts with cobraFX.
My TP is 150 pips, if I believe it’s trending strong then I’ll move my SL up to 150 pips and a trailing stop of 10 pips (the minimum with FXCM)
SL is 200 pips, usually if things are getting sour I’m able to get out earlier than 200 pips but that is what it’s set at from the beginning just in case of power loss, internet loss, or whatever else may happen.
I will usually make posts about my trades after the trade is closed so I’m going to edit the charts with paint so I can represent them as they were going.
There are 6 pairs in the yen basket, I’m starting to prefer the yen basket because it correlates better. The downside is that it costs a lot more in terms of spread to get in. The yen basket is USD/JPY, AUD/JPY, CHF/JPY, EUR/JPY, GBP/JPY, CAD/JPY
Now lets get to the trade:
Usually when I wake up in the morning I like to look at the yen basket, so far statistically it’s been profitable for me in the morning more so than the evening.
Alright so I see a sharp drop at the end of the 8am candle and into the 9am candle (the yellow arrows are pointing to the 9am candle) It’s strong, it’s breaking through resistance lines, I think it’s time to look for a possible entry. I don’t trade is the HA candle body is closes higher than the previous candle if I’m going short, and lower than the previous candle if I’m going long.
I start looking for an entry and I find one when the MACD is crossing over, the only one I’m not satisfied with is USD/JPY but I still enter because it’s roughly following the other pairs
Now I sit and watch the charts, mainly the 1m ones. I’m looking for warning signs to get out early like the pairs moving past resistance, usually I’ve noticed that when it’s trending down look for resistance lines, that is one thing that I prefer with cobra fx they allow you to see the lines without having to draw them, I usually get worried if the 1m chart starts setting higher highs when I’m going short.
Now I’m going to try to work out a better way to make future posts because it’s very difficult to show what 6 pairs are going while making it easy to follow.
Here is a snapshot of my FXCM platform on my exact enter and exit times. When I reached 150 pips I set a SL at 150 and with a trailing stop of 10 pips per pair so that is why the closing times are different. I only do this when I feel that the trend is really strong and I can snag a few more pips.
I grayed out my account number as this is my real account and well I don’t want that to be public, but here are the times so you can go and look at your charts.
Like I said I’m going to see if I can make my posts a little more clear but until then feel free to ask any questions.
Wow nice pips Reaper!
Thanks for sharing your knowledge, it is very well appreciated, guess I’ll have to work double duty and trade the yen pairs during both NY and Asian session because they’re just ranging during the asian sessions in the last few days, so no trades for me:o
I have quite a few questions… But lets go one by one… I appreciate your patience.
I also trade with FXCM UK micro account.
So your trading platform is differrent than your charting platform, right ? Do they allow you to use the DEMO MT4 account for unlimited time ? Is the price feed is same on both trading platform and Demo MT4 ?
Is "cobraFX layout " same as THV V3 template ? if not, can you share that template to the forum ? Is sharing that layout not violating copyrights, right ?
No problem, I’ll try my best to help.
Yes, it is different just because FXCM doesn’t off MT4 for micro accounts.
I sign up for a new demo account every month and enter the new credentials in MT4.
Yes the price feed I have found is the same give or take 1-3 pips.
Yes it’s the same, there are braintrend dots added on to the template but I don’t use those.
I’ll compile the indicators I’m using but I’m not sure if I’m allowed to post it because if I remember correctly you have to ask for permission to repost.
Here is a link to the thread on the FF forums.
Thank you !! Makes sense… Appreciated.
Thanks. If this is the one, I have copied those indicatrs to use on my charts today. I will sign up for a demo MT4 account today and I will add THV template today. Thank you for your explanations… Appreciated.
Your Sl is per each pair or for all the pairs ? if it is for all the pairs, how do you divide it among 6 crosses ?
In one of your post, I read that you enter into each pair based on that pair’s MACD line/trix line crossover… How about closing ? You close one at a time or all at one time… if you reach a profit target of 150 or 200 or whatever ? Thank you for all your help. I appreciate your patience.
I average and go 34 pips per pair, now lets say that one or two pairs are going against me sharply I’ll move their SL higher if I feel confident that it’ll move back in my direction but if it’s 200, I’m calling it quits, actually 34 a pair is 204 but close enough.
As for closing I look at the total amount of pips gained, if I have 150 I’ll close all out, if I think it’s going to keep moving I’ll set a trailing stop. Not all pairs move at the same pace as you can see from my screenshot (some are 62 pips others are 30). You’re looking for an aggregate total of 150.
If a trade is moving against me and I’m trying to cut my losses short I’ll look at the MACD for an exit in each pair.
I hope I’m explaining it clearly :).
Thank you for all your explanations for my questions. yes. You are clear.
Now I am at work. Once I compile the template on my charts… I will have a more clear picture…
Did you demo trade this ? if yes, how long ?