INGOT'S RAINBOW ... A Position Trading Strategy

Grob

Try getting metatrader via another MT broker demo. Try an Alpari demo as works for Cosgrove and copy your indicators/templates accross.

Go into Stochastic settings go to levels and add in the two levels you want.

Hope this helps

Pelican

To echo pelican,

I downloaded the north finance demo myself and I think that their data feed and price do not play well with longer timeframe charts that include weekends. I would switch to a different demo platform. I know that Alpari’s doesn’t act like that, and I think that FXDD’s and IBFX’s are fine too.

Do you need to have a huge account in order to do longer term trading?

I have gotten the impression from reading on this forum that longer term trading stategies are reserved for the people who have huge accounts.

I plan on opening an account of about $5,000.oo us.

Should i stick with the shorter time frame strategies?

In the babypips school this is listed among the disadvantages of long term trading:

“Bigger account needed to ride longer term swings.”:o:o

AW the indicators wont open :frowning:

+++Updated+++

I made some improvements and fixed a few display issues. The major improment is the ability to show multiple time frames in a single chart. The original Stoch Thread newsgroup by Spudfyre (see link on first page) eventually began to discuss seeing multiple time frames on a chart. However, I wasn’t that thrilled with their implementation of the idea.

Their indicator kept the same value across a higher timeframe which results in a stair step look which can be confusing to follow. Instead, the version I wrote will display the higher timeframes as a line chart. This way you can be on a 4H chart and see the stochastics for the 4H, the daily and the weekly at the same time. You can then really get a sense of what the overall trends for the time periods are doing.

There are 3 additional indicators with a suffix of “_multiTF”. So attach those to the chart and they will use the original ones behind the scenes.

There is a new input for specifing Timeframe. In other MTF indicators I’ve seen, you have to put in the actual number of minutes per time period. Who knows how many minutes there are in a week off the top of their head? I sure don’t. So instead, you just enter the chart code you’d like ie. M30 or D1 or W1. If you want it to automatically change when a chart changes just input “Chart”. I think that’s a lot more user friendly.

There’s a new template file that shows an example of how the charts go together. Let me know if there’s problems or anything else that you’d find useful.

Very nice work.

Wow, cgjedi, you’ve done a lot of great work here. Thanks for sharing this with us.

I’ve seen the stair step look on charts and I also found it very confusing.

The new input for specifying the time frame sounds great.

I can’t wait to try it.

Thanks and you’re welcome. I just found this thread a few days ago - just in time to read that Ingot54 was going to be leaving. When I read the Stochastic Threads by Spudfyre, I noticed that when he left that forum last summer, it didn’t last too long and he hasn’t been heard from since.

I hope discussion continues on this forum because I really think this strategy has great potential and would like to hear what people are doing with it.

And maybe with these new indicators, Ingot54 will be persuaded to stick around a little while longer too. :slight_smile:

Hello everyone,

Doing my own analysis I came up with these 2 ideas:

GPY/JPY looks like its ripe for a long trade as the daily chart shows a nice tight rope. The Weekly chart also shows a tight rope forming in oversold territory. Still gonna wait a day or two on this but to me it looks like its a good candidate to go long in a day or so.

EUR/JPY also looks like its ripe for a long trade. Daily chart shows a very nice tight rope in oversold territory, and the Weekly chart shows a nice rainbow long trend. Still going to wait a couple more days on this but if all goes right, it looks like another good candidate to go long.

Thoughts anyone?

hi Dirk,
I would just like to comment about your chart #1 for the EUR/JPY. That chart in my opinion confirms the power of Ingots rainbow strat.

If you look at the tight rope formation (about the 28th of DEC), that woulda been a nice ride down some 300+ pips, and it still hasn’t come out over the 23.6 line even though that might be considered trading against the trend.

Though I am still very VERY new to this, but that looked to me like a picture perfect short opportunity, please feel free to correct me. I’m just beginning to demo play with this, but when i see something like that, it gives me alot of confindence going forward.

Cheers and thanks for posting up your set-ups.

Cdawg, yes, that would have been a nice short if you were in on it, but if you were playing by the rules of this system, you probably shouldn’t have been. The trend on the weekly was up when that short signal occured so you probably should have ignored it.

The up-and-coming long signal looks pretty good, but who knows how long it will take to get there.

If EURUSD and USDCHF are up and down respectivly at the end of tomorrow, there will probably be firm exit signals, and I will be taking partial profits on my trades with them. Stops have already been moved to breakeven, so I’m going to let the rest of my position ride for a while trailing it manually.

I’ve excited the EUR/USD, USD/CHF and EUR/GBP as i’m still trying to get set up on a decent version of MT4 and i thought it was better to bank the profits. The good thing about this method is you can see the LTF stochs pulling the higher ones towards the exit point and that’s almost reason enough to close if you are sitting on 600 pips!

I will be trying out Cosgrove’s method of entering multiple lots in the next trade (thanks for the idea!)

I agree with the trades you highlighted Dirk - have been watching for a while now but the difference with this method is you just need to sit and let things unfold slowly.

[B]cgjedi[/B] - thanks very much for the work you have done on the template. It would be interesting to hear how you are interpreting the MTF stochs on different timeframes and what kind of set-ups you are looking for (if different to what already has been discussed)

cheers

Looks like the euro and swissy were profitable for the day, and still in overbought/sold, so I’m still in those trades with 3 micro lots. Tomorrow may be a different story though!

PS: The swap is KILLING me!

Are you guys trading solely using MTF Stochs?

I have written MTF Stoch & MMA in VT Trader but I don’t have any idea what the rules of engagement using MMA.

Anybody have any idea or are we still waiting for Ingot?

ramrocket, I don’t think that we’re using the MAs to enter and exit, just to verify trend. I guess if you overlayed the candles on them, you could see which MA the price liked to pull back to, but I think that’s about it. Feel free to brainstorm on other uses though!

Ingot, the next time you’re around, could you comment on what the “Color Stochastic v102” EA is? Way back on post #10, your charts show this EA working in the upper right corner. I never noticed this until now. What is it doing and is it available somewhere?

Thanks.

Please, dont be an idiot. The site is about learning to trade not looking at misleading ‘hot tips’.

Do you know if the “report post” buttons work? Otherwise, just ignore the spammer guys.

It’s a good thing I waited on these trades as it looks like there is still some bearish movement left in the pairs. Still have some nice looking ropes, but now it’s just a matter of waiting to see if it will bounce back up above oversold territory.

Hi Dirk
maybe wait for the rope to cross the 23.6
before entering.Although Its the exits that i am having trouble with.