JÄWÄ's 'Experimental' Price Indecision System

Trading Systems Free Forex Trading Systems
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last trades just closed at half TP, 50 pips, I had set the second trades normally reserved for full TP to half, also because it was past the 12:00, and set the SL about 10 pips below the price it was at at 12:00 EST and let them run…If they had stayed flat between SL and TP, I would have closed the trades right before the market close…this means my account has $103 profit since trading this starting Monday night…I will work on a “trades taken” list with comments.
I do think it’s over 1000 pips, and about 900 of those were since my bad loses yesterday morning…incredible…I’m sure if traded properly, this week would have been over 2000 pips since monday night, counting it as if trading 0.01 lots.

medisoft- this worked for me best when I was the most rigid, like a machine, with the rules…and better when I fully understood the rules and applied them.

646

HERE IS trades done on this strategy since monday night…I think the actual profit was about $100

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@seablue: feel free to ask as many questions as you have if not more :slight_smile:

  1. Trade EVERY signal, regardless of if you have a position open already, if for instance you have a sell order and then a buy signal comes, buy! Close out your sell (or sells if you have multiple) and place the buy order

The only exception is when you have two or more consecutive (meaning candle after candle) indecision candles, then you must run them through the filter as described on post #1

  1. If you have a sell order already placed, regardless of whether it has taken half profit or not you add a new sell order for the new sell signal, and move up the take profit and stop loss of the first trade to that of the second trade

  2. Priority:

  3. Star 2. Indecision candle.

Because the inside bar is not entered immediately it will never be a part of a conflicting signal, the priority only matters when an indecision candle and star formation occur at the exact same time and one says to buy and one says to sell, in this case ignore the signal with lesser priority entirely

If a star and indecision candle occur at once and they both agree (sell and sell, buy And buy) then place an order for each signal, meaning two orders will be placed

  1. If you have trades in and an opposing signal occurs immediately close out all current trades and place the new order for the new signal, there is no priority here, it is regardless of the type of signal

  2. I personally don’t because I don’t like the feeling of my money floating around, brokers do not guarantee stop losses on the weekend so if something horrendous happens during the weekend your account will suffer greatly for it, however you can look back even a couple months and see that 90% of the time price gaps in the direction of our last trades, so it’s a personal choice

@medisoft: I set the rules for ATR this morning and you base ATR off the signal you are using, which is always on the 4 hour chart

It doesn’t matter how many indecision candles occur in a row, you filter the close of the final candle with all the closes of the candles in all it’s of it’s previous consecutive signals

Like pipcompounder said you should always trade this system like a robot, ignore S/R, fundamentals, fib lines etc. my trading style and all of the data in it have already in it all the discretion needed, technical analysis always beats fundamental especially in this system, while fundamentals and 4 dimensional chart tools such as trend lines look at entire sets of data as groups technical analysis and even more so this system looks at every individual piece of data contained within those sets, therefore we can be much more accurate :slight_smile:

@pipcompounder: most awesome! And you’re right if we would’ve traded it 100% to the letter we’d have banked well over 2,000 pops and had we used the ATR, we’d have Atleast 3,000!

@everyone: I had an ultra amazing inspired moment just now where I realized If we reduce stops to ATR (14) x .75 we will LITERALLY increase our profit by 25%!! I’m testing it now to see if it is viable, looking good so far

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@everyone: I had an ultra amazing inspired moment just now where I realized If we reduce stops to ATR (14) x .75 we will LITERALLY increase our profit by 25%!! I’m testing it now to see if it is viable, looking good so far

I was wondering a bit about that myself…also can you test the full TP as actual 2X ATR (14), vs. 0.75 of that…just because how when we were previously trading, the half TP was 40 pip and full TP was 70, not quiet twice as much as 40?

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@pipcompounder: I responded on my phone then lost signal and it is still trying to send for some reason so if this gets doubled thats why…

The only thing I am considering changing is the stop loss

The previous 40sl 70 tp was specifically tailored for the market at the time i created this system, price was in a lull and the markets were mostly ranging so those settings were optimal

With the dynamics of ATR, ATR (14) x 2 is PERFECT for full take profits, and ATR (14) is perfect for half take profits :slight_smile:

But ATR (14) is just a little bit too much room for stops, i think we can easily cut it to ATR (14) x .75, that allows just enough room for our trades to breathe while still limiting loss if our stops get hit, im still doing a little more testing but i think this is how it will be:

ATR (14) x .75 = Stop Loss
ATR (14) = Half Take Profit
ATR (14) x 2 = Full Take Profit

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@everyone: changed ATR values :slight_smile:

651

I don’t catch this very well. Suppose you have 5 indecision candles (someone called them price action candles hehehe)

If the close of the last candle closes below the close of 2 of that candles, and above 2 of the other candles, what do you do? ignore the signal until the close of the last candle is above all the closes of the other candles for a buy or below for a sell?

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Do you think that smaller stop loss can result in more frequent stops?

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Try this:
draw a horizontal line on the close of the last indecision candle of the consecutive series, it could be 2 or 20 candles, doesn’t matter…than see if that line is above all other closes of previous indecision candles for bullish last candle, or for bearish last candle, see if line is below all other closes of previous indecision candles, if it is the extreme, and opposite direction of previous trade, then it’s valid to switch from buy to sell, or vice-versa…If it hits the bodies of any of the previous valid indecision candles, than ignore it, and leave open trades alone.

654

Great, that’s the way I’m doing it.

I think the stars are more reliable than indecision candles, isn’t it?

— MOD

do I need to check the close of the 4h candles or 1h candles?

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I only just traded my first star last night at 12;00 candle and it did great, but so did every other signal that I correctly interpreted…so I really don’t know myself…I was caught suprised again when SJ said today’s 12:00 candle was a star, too…I guess I need to study charts to ID them, so I catch them more often, that’s a lot of missed trades…and this week was chocked full of good trades, it seemed like every 4 hour candle was a trade (almost)…looking forward to next week using ATR :smiley:

medisoft- your checking 4 hour TF…the only reason we zoom into 1 hour TF is to look closer at an indecision candle to determine the trend direction.

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@medisoft: like pipcompounder said you take the consecutive 4 hour signals and zoom in to the 1 hour chart, then apply the filter :slight_smile: for the filter to work the final one hour candle in the latest signal has to close below/above (for selling and buying respectively) the close of the final candle in the first signal

and this system already is rarely stopped out as it is, and i backtested it over two months and the increased profit per trade is not overpowered by the occasional trade that is stopped out before reversing :slight_smile: it keeps stopped trade losses miniscule and increases our lot sizes, woot woot :smiley:

And yeah i would say stars and inside bars have a higher win rate than indecision candles although they aren’t any where near as frequent

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I wasn’t able to trade last week because I was out of town with work, but I just wanted to say that the new changes look really promising. Thanks for the hard work SJ and everyone else. Here’s to many pips next week.

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Great, that is what I understood on the first page. I’m checking all the 1 hour candles to see if they broke the close of all the previous candles… that could be called a support / resistance broke :wink:

I got A LOT of indecision bars from yesterday to today, and two stars. Both of the stars finished OK, but more than half of the indecision candles finished with a loss, that was because I was doing wrong the filter, I think. Let’s see what happens next week after I understood how to use the filter and with ATR.

May I ask you about Inside Bars? Do the rule to close all contrary/inverse trades when a Inside Bar is activated is still valid?

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@medisoft: could you post pictures of your indecision candles? With some of the 1 hour pics too? I can’t imagine that many losing trades unless some kind of mistake was made :3

And yes that is correct, once the stop order is activated from the inside bar you close all previous opposing trades

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I think I did some errors… The stars worked wonderful, while I had no inside bars, and I had problems on indecision candles.

I think that the problem was that I didn’t understood that I need the close of the last candle on 1H must break the close of all previous candles on 1H, the only filter I was doing is to check that the close of the last 1H broke the close of the first 1H candle on all the array of indecision candles.

The green circles are buys, the red are sells, the purples are loss, and the blue are profits. The background, darker candles are 4H, the foreground, lighter candles are 1H. Thanks

This are on AUDUSD

This are on GBPJPY

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@medisoft: ahh I think there has been some confusion, I’m on my phone so I can’t give picture examples or accurately analyze your pics yet but from what I can see the entries are handled incorrectly :3 this is the exact approach to indecision candles:

You spot a possible signal on the 4 hour chart, you measure the length of the long wick and make sure it’s 50% or more of the total candle length, you measure the body and make sure it is no more than 35% of the total candle length , if these two things check then you zoom in to the 4 one hour candles that make up the signal, if the close of the last of these 4 candles is lower than the close of the first candle, sell, if the close of the last candle is higher than the close of the first candle, buy

No filter is used unless there are multiple indecision candles IN A ROW, meaning that the signals must be consecutive, candle after candle

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And that on the 4 hour TF.

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Thanks, I adjusted my trading checklist to match this.

The identification method I was doing is OK, measuring the longer wick, that must be 50% or more than the full candle (high-low), and then the body size (open-close) must be 35% or less the full candle (high-low).

The problem I had is with multiple indecision candles in a row.

664

Hi again, thanx for answers, just get 3 half TP in half a day, Just very small $ as I am still testing but I am happy. I left 2.5 positive open trades over weekend as i fell asleep. I hope I interpret correctly, seems there are many signals in just a few hours.

Some questions,

  1. Indecision indicates buy. After sometime an inside bar (least priority) indicates sell. Do i sell and close my previous buy?
  2. As I am working full time, I set trailing stop of ATR for half position, hoping to achieve not far off effect of moving stop-loss to break even. Is it ok?
  3. Previously you said you only follow trend for inside bar, now?

Is the below rules correct?

  1. Take 4 candles before inside bar in 4h chart, (high + low) / 2. Buy if inside bar close above average, sell if close below.
  2. If 2+ signal in a row, and they contradict… Last candle must close higher than all previous close to buy (else no trade). Last candle must close lower than all previous close to sell (else no trade).
  3. 1st candle follow momentum, 2nd indecision, 3rd close half into 1st body (both not indecision candle)
    Take 4 candles before indecision, (high + low ) / 2. Buy if 1st candle close below average, sell if close above. Correct?
  4. Change all open trades TP & SL according to latest trade. If contradict trade, close all previous trades immediately.

Regarding your post #1 explaining multiple continuous signals, am I right?
1st 4hr candle indicate buy, we [B]buy[/B] at end of 1st 4hr candle.
2nd 4hr candle indicate sell [B]and 8th 1hr candle closes below all 1st -7th 1hr candles[/B], we [U]sell and close previous buy[/U].
3rd 4hr candle indicate buy but [B]did not close above 1st-11th 1hr candle[/B], we ignore this signal.
[B]We have a open sell position.[/B]