How is the system working for u so far ?
best regards
Hi,
I am new to this and was wondering if someone could explain to me what is meant by dividing a position into parts/opening 3 or 4 parts as part of a stop loss strategy. I understand that getting this right is important and would appreciate it if someone could explain the concept using an example.
Thanks in advance for any help offered.
How has your result been? I’ve just started on a demo today and i added stochastic to my indicator so i could know the trend direction at a particular point in time and take appropriate trade in line with the rules, provided stochastic is also pointing in the same direction.
I look forward to having a good result with this system and probabbly get answers to my questions on the system as regards when to enter and exit a trade. (though i would prefer to combine this with price action, fib, and trend line)
I’ve taken 2 trades today on the 4hr tf (Based strictly on the rules here)
- Short AUDNZD @ 1.2219
- Short GBPCHF@ 2.0377
I’m looking at a stop loss of 100-200
I’ll keep posting my trades and results here for necessary evaluation and improvement of this system.
I’ll also like to know what this really means. I have a feeling it could mean dividing your lots. e.g. instead of taking a trade with 1 standard lot (usually $10/pip for USD majors), you take 2 trades with 0.5 standard lots, or 5 trades wit 0.2 lots. Just a guess.
Somebody please put us through
Hi all, I am learning this method, hence I welcome comments on where I could have gone wrong in my understanding of the method.
My understanding from Topchess’ posts is that we wait for the lowest timeframe (TF) that we work on to agree with the higher TFs.
An example: Let’s say I decide to work off H4 TF, which is showing uptrend, while D1-W1 TFs show downtrend. Hence, I will patiently wait for H4 TF to show downtrend before entering a position. In short, it is a case of “waiting for lowest TF to agree with higher TF(s)”. [I am not even talking MN1 TF here.]
Let’s use an actual currency pair (AUDUSD) for discussion. Please see attached AUDUSD H4 chart. Based on above understanding, we will keep waiting for H4 to show downtrend again before entering a position, i.e. we are hoping for the downtrend to continue. [“Go with the trend”.]
However, let’s say the trend is reversing (from down to up). Then we will never catch the early move because D1-W1 will take some time before showing an uptrend. In fact, by the time D1-W1 show uptrend, the up move will have already been “well on its way”.
It seems we will always catch trend late (perhaps very late) using this method alone 
. [Of course, we can use other price actions/technical analysis to enter a position before this method gives a signal, but that means we cannot trade based on this method only.]
Thanks for your help Pipnailer, that kind of makes sense to me. Would you have different stop levels for each lot then so as not to have all your postions taken out in one go?
I would personally prefer to keep the stop levels at the same position at first, then move to break even as soon as i can, then adjust to different levels to lock in profit as the trade progresses (provided trade goes in my favour)
I’ve not really been following this method as i initially intended because something clicked in my head and am presently trying it out hence my not posting results as promised.
However the 2 trades i took with this system are not doing too badly
GCHF is presently at 2.0207-----thats over 100pips gain
AUDNZD is presently 1.2236-----thats 17pips deficit
Does anyone know how to set up these indicators for Dealbook? I’m going to install the MT4 and see if I can figure it out, but just wondering if anyone else has done it.
I looked at your entry for GBPCHF and my charts show the entry at 2.0334. That was on the 25th August.
Looking my chart shows the Weekly still in blue. I am on H4,D1,W1,MN1 charts.
If you are on the same charts then can you explain the discrepancy?
Thanks for your help in advance
Take a look at the date i posted the trade-it reads 21st August and not 25th.
I use Alpari uk, so that might also explain, but the trade was taken on the 21st and not 25th.
I started seriously testing this system yesterday with pretty good results. I think (for me) it works best on a 4 hr rather than 1 hr chart. I set up trades today (closed 3 manually due to large initial gain and in one case a mistake entry on my part - sold when I should’ve bought) before going to work with these overall results:
-25 pips (.5 lot - this was the mistake entry)
+30 pips - .1 lot
+12 pips - .5 lots = 60 pips
+19 pips - .1 lot
+30 pips - .1 lot
-24 pips - .1 lot
+26 pips - .1 lot
-19 pips - .1 lot
Net = +97 pips
Oh yeah…the -24 pip trade looked a little borderline, but I traded it anyway because that will happen from time to time regardless of if I catch it.
My basic rule of thumb is a 15 pip SL, 30 pip TP. I adjust these somewhat based on where in the range the basic candle is and where it’s ranged. I also tried the .5 lots when the overall was in my direction and the prior candle was opposite, figuring a little more potential. I’m primarily trading .1 lots to accurately simulate a mini account.
One thing I found somewhat helpful was to also overlay Bolinger bands with the HAS candles. I find the regular candles do a pretty good job of expanding to either outer band then coming back to the center. It seems to be a good aid as to proper timing of the entry.
Hope this helps. I will try to post daily for awhile.
After re-reading the post to this point I felt I should clarify. The profits I posted are using my own modification of the HAS outlined here. I use a 4 hr. chart to start with. I use the D1, W1, M1 with this to track the trend. I am mostly using this on a shorter term basis because the signals for all time frames moving to the same color are more rare than continued trends where all are the same. I base the strength of the trend on the size of the 4 hr HAS candle and time my entries based on the regular. As mentioned before, I also overlay Bolinger bands to help. If the last regular candle has shown a strong counter-trend, (and this means it moved toward or even reached the middle BB) I will place an entry with the HAS trend. The further from the outer BB the candle starts, the greater the potential for profit, so I set my stops accordingly. The HAS candles usually get smaller and the curve flattens before a change in one time frame’s color, so I try to be more careful or even avoid entries if this is showing. I tend to exit within 2 candles with a 10-30 pip profit using this technique. If the trend is still strong I can always re-enter. This is a work in progress and is by no means perfect. I got badly burned this morning by a huge dip in the USD/CAD. I am planning on spending the whole month working on this, so I’ll keep everyone posted.
After a day of several losses yesterday, I did some more revising of this idea. The same basics apply, but now I look at shorter time frames to time the entry (sometimes as short as 1 minute chart). Each of the charts have the same feel, in that you can see the waves, red to blue and back. Also, even if every chart from 4h down to the 30m show all four sub times as red, if the 5 min and/or 1 min show half blue, the trend is obvious (very short term) up. I follow this up-turn the same as on the main chart with the BB. Even though it’s ultra short for a 4 hr chart, I don’t want to enter on an up swing on the 5 min. If I wait for the “peak” and enter a sell there, there’s less chance of my SL being hit. Using this revised system this afternoon (Mountain time in U.S.) I placed 9 trades ending with 7 wins, 2 losses for a net gain of +178 pips in about 1 hour. Doesn’t seem too shabby to me.
Dear Bkr1969!
which BB (period) do you use? 21 is better?
Since I have some computer programming experience, I thought that I would write the indicator in full for Dealbook.
Before I was to do this, however, I looked very carefully into the structure of this indicator and did research into it.
[B]I sadly report that this indicator fails to do what it claims to do.[/B]
It was initially set up by Don Steinitz, a casino gambler and card shark who was always being kicked out of the casinos in the USA.
Knowing that it was being set up by a gambler already gave me reason to be concerned.
Don Steinitz had a computer program written for this indicator and sold it as a trading robot.
Traders lost a great deal of money with this program.
It simply does not work.
Don Steinitz has a reputation for being a scammer.
The problem with this indicator is that it is a colour based system instead of being a numeric indicator as all the ones on Dealbook are.
With colour based indicators a problem called [U]repainting [/U]occurs.
Repainting is the process whereby a whole batch of colours in a lower time frame change colour suddenly because the higher time frame colour changes.
[U]example[/U]
Suppose the 4 hour timeframe shows an incomplete red colour (going down).
The 15 min timeframe colours are also red.
The 4 hour colour goes green upon completion because the price action has gone up.
Then suddenly 16 of the last candles of the 15 minute timeframe will also change to green.
This process is called repainting and it renders this indicator in its present form effectively useless. :eek: :eek: :eek:
This is the reason why Don Steinitz stopped trading with it and it died out in use.
It has been resurrected here again on this forum.
In promoting his trading robot on a U tube Google promotion video he carefully avoids clicking the mouse to enter a trade but nevertheless, promotes the system as a potential gold mine.
My recommendation for those who want to trade trends is to go for an indicator that is proven and actually works.
I recommend the Starc bands.
Hello all,
I believe this is a good system, however, as someone mentioned before, it does lag on time. However, to “overcome” this I changed the indicator’s values to tighten calculations and enter earlier. I’ve set them to 2,3,3,2 with good results.
Also I only trade H1, confirming upper timeframes. Yes I do have sometimes large drawdowns (300 pips or so), but at the end all close positive.
When these drawdowns happen, I try to “hedge.” First I reconfirm trend of my trades, then place a second trade in the same direction as the prior. This results in lowering drawdowns and you can either close them when their balance accumulate zero or little positive, or just trade them both till in profit (this is what I do).
Cheers,
Hey all!
This system is incredible so far. I have just used it tonight for the first time to place some short trades and its amazing. So far, I’ve shown a profit from 7/8 trades or an 87.5% success rate! And the one that was for a loss was actually a total mistake (I was looking at the 1 min chart I think).
Anyways, results very good so far. Definitely gonna keep playing with this system. One thing I like to do is go by the 30 min chart to place short trades, then immediately jump to the 1 min chart and monitor what is happening.
Thanks again. Now if only we could implement this into a trading script! Imagine that! 
Thanks for your input, Tymen. I have definitely noticed the repainting effect and while it can cause failure, I still think that HAS type candles present a great base for a trading strategy. I have moved from this method to one called HAMA PAD. It, too, has some drawbacks, but I think it’s even better…provided one has the discipline to enter strictly according to the rules. This must be coupled with lots of experience (practice, practice, practice) and intelligence in knowing how/when to slightly bend those rules. (Sounds like a contradiction, strict adherence yet bending the rules). Most of all, proper money management is necessary. I’m hoping to “find my niche” with a method like this. Tymen, do you have any info or good links regarding these types of candles? You seem to be one of the more well grounded ones here and you tend to favor regular candles to multiple indicators. The only problem I’m having with your system is that I’m in the US, (GMT - 7) and, at least in this current market, don’t see many setups during the part-time hours I have to trade. Any info you or anyone else has would be greatly appreciated. I feel that forex is an endeavor where one can never learn enough.
To [B]Bkr1969[/B], [B]ForexPhantom [/B]and [B]Cfabian[/B] :
You people are in charge of your own destiny, of course, and what/how you choose to trade is your business.
I just fear that you may come out battle scarred and at a loss in the end if you continue with this system.
[B]I can only give suggestions based on what I know.[/B]
Therefore, my advice is general.
I would say that it is better to trade well known and proven indicators.
When you trade exotics, you are on your own - there is no proven experience to help you.
Its a bit like owning an exotic car, when it breaks down, where do you get spare parts?? :eek:
According to the hyperlink below, the best indicator around is the MACD histogram.
So what would stop you from using that in 4 different time frames?
This indicator is totally proven and has a history to back it up.
On the other hand, Don Steinitz changed his entry methods several times and, in the end, did not really know what to do.
There is no stop loss in this trading strategy - you will have to develop it yourself!! :eek:
I conclude by saying - be careful, trade with small amounts first, so that, if a loss occurs, you will not lose too much.
Finally, have a read of the following hyperlink :
Hey guys,
Tymen – I appreciate your concern. What gives you hesitation about this method? The indicators seem very good so far. I’ve been demoing this method and so far, in one night, I am up $429. 13/14 trades were winners and I’m getting ready to add another win to that list. It may be a fluke, but so far this is the best system I’ve ever come across.
Could you also direct me towards the other system you mentioned? I would love to demo it and see if my results are similar. I’m totally new to all this stuff so any help is greatly appreciated.
Thanks again guys. Have a great day.
Thanks a lot Tymen for your comments and insights. I believe we all are here to share experiences and to help each other to better trade.
I understand your point about HAS. I do find it very easy and intuitive to use, and the best all is you have multi timeframe on the screen. Have to say that I only trade closed dots, so it does not change on and off. So far experience is good. Need to manage drawdowns, but I believe all strategies inccur in them.
What do you think about what I do in terms of changing HAS settings to 3 periods instead of 6? I do see earlier signals, but want to know what your think as an experienced trader.
What you think about multi timeframe stochastics?
Cheers