I’m a big believer in the KISS (keep it simple stupid) approach to trading and want to share a strategy that i think is simple and easy to trade.
I use MACD Histogram on 4hr TF.
ENTRY LONG: Wait for the MACD Histogram bar to turn green, when the fisrt candle closes wait for the 2nd candle to go around half way down the previous candle then enter.
ENTRY SHORT: Wait for the MACD Histogram bar to turn red, when the fisrt candle closes wait for the 2nd candle to go around half way up the previous candle then enter.
STOPS: Place a stop at the high/low of the first candle with the red/green histogram bar.
EXITS: I have a target of 30pips, but you could get more.
I think the entry and exits can be improved, so if anyone wants to throw any ideas out there feel free to do so.
I am also using…Waddah Attar Trend with the same rules as the MACD Histogram. I have tried to upload the indicators that i use, but for some reason it won’t let me. The names of the indicators are… MACD Histogram with filter and Waddah Attar Trend, so if you search for them on the net you should find the mq4 files for metatrader.
Yeah 30pips is my target, the risk reward will be off but i’m sure you guys could come up with away to better the exit strategy. 30pips is very easy to get with this and the 30pip TP has a very high success rate from what i’ve gone back over on the charts so even though it maybe a bit off it could still work.
If anyone has a idea for diffrent exit strategy then don’t be shy, like i said i think this can be made even better. This could get alot more pips if someone else or i can work out how to hold on to the trade. Maybe you could let your stop loss define your take profit, so say your SL is 75pips, go for a 75pip TP atleast it would be 1:1 ratio.
I don’t have any real numbers to give right now, but i havent had a loss with it yet i’m not sure how many trades maybe 15 or so trades.There were times when i could have grabbed alot more, sometimes a sh!t load more! but i was just looking for the 30pips. I will try and get some solid success rate numbers for you, and get back to ya later.
don’t worry about the numbers
i’ve just asked to get a general idea about the system.
i’ll try testing it myself (i’ll also try to make a simple EA for this) and we can see how that goes and post results here
From what i have seen they both work well. Waddah Attar Trend are the same the only diffrence is the Waddah explosion has a MA on it.
The setting are default.
Ok with the entry, basicly when you see the first MACD histogram bar turn green wait for that candle to close, then wait for the 2nd candle to go down around half of the first candle then enter. This is another part that could be made better, because there are times where there is no pull back and the trade is missed, so again any ideas on bettering the entries feel free.
Here is a pic, i zoomed in as far as i can so hope it’s a bit clearer to understand.
[QUOTE=jgadefelth;133214]why not on lower timeframes like 15minutew or 1 hour ?
Sorry i just realised that i didn’t answer that question. Well when i was trading the (ohhh god here it is again lol) Daisy Chain we were really only getting 30pips, if you were just going for the hyperinflated 150pips, so i wanted to get 30pips and was looking at the 4hr and thought to my self… man every candle moves atleast 30pips, how can i take 30pips from those candles. And thats what i come up with.
With a bit of playing around i’m sure the TP levels can be bigger, i just had tunnel vision for 30pips thats all lol.
well i thout of the loweer time frame because of it gives more signals and closer to stoploss I BELIEVE IN LESS IS MORE i like pair like gbp/usd big movements and acceptable spread
I was just having a look and that could work, yes the risk reward is at 1:1 but would get stopped out a whole lot more, so yeah it could work but i think what i need to do is to find out how to capture more profits that way it would bring the risk/reward to a more respectable level. So i will be trying to look and see if i can work out how i can do that, and anyone that has ideas jump in and let us know.
Thanks again for your input Jgadefelth, THIS IS HOW THREADS SHOULD BE, HELPING EACH OTHER!!!:D:D:D
few more questions:
-you’re using waddah attar to confirm the trend, or in some complementarity with macd?
-does the change have to cross 0 line in macd? (ie: you go long on second green only if first was above 0, and similar: you go short on second red only if the first red was below 0) when i look at the current charts there are examples of good trades from both sides of macd 0 line.
here is a eur/usd 4h from today… i noted places to enter.
possible sl depend on entry point, also i think that neither would be executed if one moves sl to break even.
i noticed that good results could be obtained and few misses avoided if you look for entry depending on a candlestick extremes.
for example on first trade low is way up, trend is up, you don’t wait for it to go down to enter. same is for all other misses on the image. so, if a low is above OC/2 (for long) and trend is long, entry is valid, and if high is below OC/2 (for short) and trend is short, entry is valid. problem is conclude low and we’ll be missing few pips to confirm direction.
(i just saw - second miss would be sl or very small profit on 4th candle if taken)
as for 3 sl signals, if the price vary (not going straight-forward), that could even be good trades, but we can’t know unless someone remembers how the candle was formed )
this is just a first glimpse observation in very short time - sorry about mistakes. i think that the main problem is entry point… hm… like in every other strategy
