Results for the week that the system produced if following the exit rules. Which I still struggle with.
W- 19
L- 6
Pips - 339.1
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Ok, guys I have actually switched to no indicators and going just price action. Have been studying and back and foward testing for a while now and went live with it this past week.
But this strategy worked well for me so hopefully someone got a little use out of it. May start a new thread with my price action as well.
Hey guys, just a quick update. I have passed and now a funded trader with FTMO using above strategy and price action as well. Thanks for the kind words.
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Hey guys. I’m going to pick this thread back up while I still have my PA thread too. This strategy is a little less subjective. And has been profitable for me(look at the post above for examples). Just wait for the signals then take the trade and use proper trade management as you go.
I have changed a few things I do different now.
- The RSI settings for overbought and oversold have changed from 70/30 to 65/35. But we still don’t take a trade til it has crossed the 50 line. I just like to open a trade if the value has come from the overbought/ oversold area then crosses the 50.
- Still use same exit strategy as before.
I have a demo account open at the moment for this strategy but have traded this one live and passed my first FTMO with it. Have even posted trades from my account as well in this thread. Also have some backtesting posted in here somewhere.
I moved over to price action due to wanting to be able to read a naked chart and trade. Just something I wanted to be able to do. And do enjoy trading that way but also like having this strategy in my pocket when needed or just want to change it up.
A few trades I have took today.
CADCHF
CADJPY
EURJPY
XAGUSD
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Hi, Congratulations on being an FTMO funded trader!! i love your charts and the strategy you have employed.You have had quite a progression. I just wanted to ask if you mind, sharing the values you use on your RSI as well as MACD indicator(fast length, slow length and the signal smoothing) i’d like to try out your strategy as well. Also what’s your rationale for determining your SL and TP?
The values are set at the default.
*I identify Support/Resistance(S/R) off the daily chart and color those lines green.
*Identify S/R off the 4HR chart and color those lines blue.
*I use two indicators RSI and MACD with the default settings.
*I trade using 4HR charts.
For me to open a buy position…
The RSI has to be crossing and the candle closed above the value of 50.
The MACD line has to be above the signal line showing it’s starting to diverge
The price can’t be pushing up against a resistance zone. I put more emphasis on the Daily S/R zone than I do the 4HR S/R zone but still respect it.
For me to open a sell position…
The RSI has to be crossing and the candle closed below the value of 50.
The MACD line has to be below the signal line showing it’s starting to diverge
The price can’t be pushing down against a support zone. I put more emphasis on the Daily S/R zone than I do the 4HR S/R zone but still respect it.
If all 3 are met than I open a position.
*I set my stop loss at the last candles high/low depending the direction I’m taking. If the candle isn’t big enough and too tight I will set it at the last swing. (I have them on my chart I posted)
*I set my TP at the next S/R zone, but with each closing of the candle I move my SL to the high/low of the candle(depending on the direction of trade) that just closed given that the candle has some body to it. And only if the candle is going my direction, meaning if I have open a buy and the next two candles are in profit I move my SL to the low of the latest candle that closed. Let’s say the next candle the price moves down a little but doesn’t stop me out. I leave my SL at the last candle going my way not the one that just closed. (goodness hope that makes sense lol, I have shown it on my chart as well).
*Also have to be mindful of whipsaws, so I look at what the price has been doing and if it’s in consolidation I wait for it to make a break out and than open a trade once all the signals have been given.
*I also remove my Stop Loses during the swap just so the spread doesn’t take me out of the trade. Add them back in at 6pm eastern time.
I also have a example chart posted at the beginning.
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Thank you for the detailed explanation. i have only one question, what time do swaps occur? Are they also frequent occurrences or are they once a week kind of events?
Each day at 5pm and ends at 6pm(eastern time). You’ll notice the spreads widen during this time.
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Hey, thanks again for responding. I saw that you said " when it comes to deciding when to take a trade you put more emphasis of the Daily S/R zone than the 4HR S/R zone but you still respect it. " Perhaps i may have misunderstood it, but it sounded a bit contradictory. Could you expound on that.
For sure, meaning if price is approaching a zone I have marked with the 4HR chart. I going to make sure my stop is in profit incase it reverses at that location.
If price is approaching the 4HR zone and I have now got signals from my RSI and MACD. I’m not going to enter since I’m close to that zone. I know it may push through but I’ll wait for a better set up.
If price has pushed through the 4HR zone and then I get signals to enter, I will.
You just have to look back and see how that zone has held up in the past. But I only go back 3-4months, I feel like the latest zones are more important. But if price has pushed on through and I don’t have a zone marked and price hasn’t been at that spot for a while I will go back as far as needed to find the next zone.
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Thank you for the clarification, i’m going to backtest the strategy ,paper trade it and perhaps implement it down the road, i’ll update you sooner or later on the progress. Thank you for taking the time, to answer my questions. Wish you the Best of luck on your Trading!
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Thanks, I have also started backtesting again. I should be done tonight or tomorrow. I’ll post in here as well.
I mostly use my price action right now but looking to fire this one back up along with my other.
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I’ll get the latest back testing posted this weekend. I’m at the beach this week and it slipped my mind to post before I left.
I have also asked the mods to revise the first post of the thread with a few changes to the strategy. Give it 24hours and I’m sure they’ll have it changed.
Here are some trades from last week using this strategy. Was a good week.
AUDCHF : Full TP : 36.7 pips
CADJPY : Trade in process but with SL in profit. : 40.1 Pips
EURAUD : This guy slapped my SL before heading off to the TP : -23.5 Pips
EURCZK : Hit the SL
EURNOK : Trade still going but with SL in profit.
EURNZD
EURPLN : Full TP
EURUSD : Trade still going.
GBPNZD : Trade still going.
GBPCAD : SL in profit : 8.1 Pips
GBPJPY : Hit full TP : 143.3 Pips
NZDJPY : SL in Profit : 38.5 Pips
USDCHF : Hit Full TP : 33.6 Pips
USDJPY : Hit Full TP : 79.9 Pips
Tota W-L and Pips for last week into this week, counting locked in positions as well but not the trades that are running but still negative or ones with no profit locked in yet.
W = 11
L = 2
Pips = 446
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Fantastic results, i see you dont mind taking trades in the mid of the range (between s/r) as long as price was over-bought/sold. I started this week, already have some profits. I plan to run live test 1month-2months using 4h charts, 12 majors, and CMDs like oil, gold, silver, perhaps will add also indicies dow, nq, dax.
What i like is that its very time efficient alerts on RSI do the job (crossing 50) and then to inspect each alerted pair, every 4h . May I now how many markets you observ and what is your daily routine? Its crazy if its more than 30 :D, maybe a bit less with this strategy due to filtering, but in your price action strategy (pure candles) i think you mentioned something about ~40 
considering that it takes time to take decision to analyse candles might take a lot of time. How do you manage it? Like I said with momentum strategy Rsi filtering simplify it all and even 40pairs are doable :D. I plan to inspect charts and trade 3-4 time a day (after every 4h closes).
I do trade the same pairs. 43 currency plus oil, gold, xauaud, and xaueur. It takes about 25 mins to get through. Once you get a handle on things it’s not really that bad. Plus only working every 4hrs for 20 mins 5 times a day. I’ll take that lol.
My routine.
Weekend - Review charts, mark zones on daily and then 4 HR. So my zones are marked and ready for the week. I may even go ahead and mark the next zone above and below price just incase it breaks the closest zones.
Sunday night(5pm, eastern time) Market opens for me. No trades are usually taken. Like to let the market move a little before entering.
Monday - 5am - is when I start looking for trades. Takes about 20mins.
Then 5am, 9am, 1pm, 5pm, 9pm, are my times I look at charts for trade setups. Monday- Thursday.
Friday - manage any trades I may have open, the last trade entry is Thursday at 9pm. Close any trades around 3-5pm on Friday.
Yes I will take a trade mid range on this strategy not my PA strategy though. Since this tells me more of momentum and I’m not looking for patterns here. Usually my stops are a little tighter on this strategy along with trailing them.
I hope it really works for you my man. I started teaching my son this one as well.
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Update on this weeks trades. Sorry I always seem behind in this thread.
EURCAD : Has hit SL, but made some profit.
GBPNZD : Full TP
USDHUF
USDMXN : SL already in profit
USDNOK : I have moved my SL at BE since this was such a big candle after the entry.
USDRUB
USDSEK : Full TP
This has been a busy week so far. This strategy does produce a good bit of trades so make sure to spread your risk across and make sure your lot sizes are managed correctly to your account balance.
I have had days were the market just seemed to reverse and all the trades went to crap lol. So make sure you manage your risk.
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Update on the trades from this week, most have been closed now. Only posting the statues of the ones that were still open after my post above.
USDHUF : Hit SL
USDMXN : Full TP
USDNOK : Full TP
USDRUB : Full TP
Weekly results so far for 8/15/21-8/21/21
Majors/Minors
W = 2
L = 0
Pips = 120.2
Exotics
W = 4
L = 1
Pips = 2751 (There value per pip is a little different)
Started on tuesday, so far 17-19.08, had 1 nice win and 4 losses, iam at BE, so MM is in check. 2 losses are made by mystake (should’t take them, one was horrible had wrong lot size set), I have 21 pairs and 4 commodities. I believe if i would start earlier i would have much better results, right now i barrely get any signals, bcs market is so trendy. and almost nothing crosses 50line :D. Patiently waiting. ps Alg do you adjust risk or you keep fixed lot size (to keep same amount $ per pip?). Thats what i do, in some cases this will cause inbalance between profit and risk. Thats how you backtested though, right?. And second question how to handle risk% in totality if i’m gona have 5 positions opened at the same type (eventually this will happen). If you trade with fixed $ per pip no mattere how far is SL i guess you keep risk per trade in low level so when multiple trades are taken you do not risk more than like f.in 5% in total!!. I keep my risk per trade in avg. it should be about 0,5% (assuming that usually Sl will be 20-30pips away), this way i can have 4 trades and risk is near 2% +/- . I never traded like that before, sure the safest is to always adjust so no matter how far is SL risk is always the same, but as I understood in case of that strategy this is not prefered and its better to just keep same $ per pip only.