Hey Talon,
Yes that was a short entry, and as you can see it was a losing trade
Hello Surindm,
I have been trading for almosy 5 years. And yes, this is the system I use with good results.
Looks interesting. I like high win rates.
you said entry is a few pips below middle band? In the second picture the entry arrow looks like it’s pointing at the lower BB band. Wouldn’t the entry be higher up near the center line? Do you go ahead and set a pending order when it touches the outer band ?
Actually the arrow is just to indicate the entry candle not the entry point. If you are looking for short entries, you wair for the candle to touch the high Band and then put a sell order some pips below middle BB. So the exact entry point would be:
The picture didn’t seem to tmatch the description, now it makes sense.
Here is another example of entry. In this case the price doesnt touch the upper band , but it come CLOSER (cyrcle). So you take the trade on the break of the middle band:
Hi Gas
Thanks a lot for your updates and me too check few charts and noted that it was very nice. I am targeting two trades for next week ie EURUSD and EURJPY in 4 hr chart. I have a small thing to know which is the % normally you risk per trade and maximum risk of the account at any given time for all open trades. Do you trade correlated currencies at once?
Eg: EURUSD, EURJPY Thanks a lot
Happy Trading
Hello surindm
As I always say, you choose the risk you want. Since you are trading 4h and daily charts you won´t have too many trades open at the same time, probably 2 or 3 trades open, so a risk per trade between 2-3% is good, but is up to you, if you want more risk you can use 4-5% per trade, in the long term it will make more money but pe prepared for bigger drawdowns.
Yes I trade correlated currencies at once.
Hope that helps.
Hi Gas
Thanks a lot for your quick reply
What do you think of my focused trades for next week? I feel those will be correct set ups. Would like to know your view
Thanks in advance
Happy trading
Hi gasanvill, interesting thread, thank you for sharing. One quick question (which I realize is a little tangential, apologies): you say that you use SMAs to indicate S/R levels. Have you ever tested the system with EMAs? I use EMAs for much of my trading, and wondered whether you had actively rejected them for this approach, or whether you just like SMAs.
Many thanks!
Yes good trades to short, becasue the daily trend is down. Actually Im short EJPY since early August (good daily entry). Just wait for the right set up to short, dont force the trades, if you dont find a good set up then dont take it. Be careful if you short on the 4h becase the market is oversold, so dont stay too long, I have a rule for 4h entries: the trade last no more than 1 week. For daily enties the trades last 1 month.
Hey Simon,
Actually I dont use moving averages as entry triggers so yes you could use EMAS also. They are just a tool to filter trades. For example if you have a set up that indicates to go long, but you have near resistance (200sma on daily chart), then obviously you dont take the trade. For me makes no difference using EMAS or SMAS if you are using them only as a reference. If you use moving averages for entry triggers, then definetely some backtesting is needed.
Thank you for the detailed response, makes sense, EMAs are just S/R levels for me, too, so work well with what you are describing.
Interesting last post from you, also - I am in a medium-term Short on EUR/JPY, too, but did not get in until 29/08 - nice efficient Entry, nailing it in early August!! Interesting insight into your ‘duration of trade’ rules, too, I had not thought of it in those terms, before. Always learning on this site!
ST
Yes, duration of trade also helps you to trail your stop better:
For pairs liker AU, EU UCHF, NZDUSD you can move the SL to BE faster, becasuse they are not too volatile. But with pairs like GBpJPY or EUJPY, you can use my rule of duration of trade and wait 5 or 6 days to move the SL to BE in 4h trades, and 3 or 4 weeks to move the SL to BE in daily trades, because if you move it to soon then you will get stopped out.
Yeah my system gets you in the trend as early as possible. Actually if you take a look at daily chart of EURJPY, I took the trade on early June and early July, but I got stopped out at BE. Finally I got a good entry on August.
Many many Thanks for your kind support
No problem. Let me know if you have more questions
OK guys.
I will be posting more entries this week, and answering questions if you have. I will be talking about exit rules and trailing stops for mys system next week.
2 long entries:
I like your method, it’s long term and respects the trend! I made a template with your indicators.
Hi Gas
I am thinking to short AUDUSD and NZDUSD in H4 chart when the middle band getting crossed. And to go long USDCAD at the middle band (H4 chart) What do you think?
Thanks in advance
Happy trading
I like AUS and NZD trades, also Im looking at EUr/usd and eur/jpy. Lets see what happens at London open
USCAD I only take trades on daily chart.
Hope that helps.