Need help on Microtrading in the 1 minute chart

Trading Systems
1

Hi,
As newbie.I like this trading strategy.I use with some advance indicators,which confirm about the entry time.
What i use here is the details:

1 min EUR/USD chart
Trader Dynamics Index (TDI)
Heiken Ashi with candle stick
20 Bollinger Band
5 EMA High & Low (Smoothen)
3 EMA Close.
& MA cross over alert indicator.

So according to the strategy.
Entry rule is When 3 EMA cross BBand Downward is sell time and when BBand crosses Upward is Buy time.

But my problem is,
What is the Exit rule in this Microtrading.
That is not specified.

Sometime i saw,i close the trade in short profit.And after some time,the trade gain more profit.But i didnā€™t get it,cause i already closed it.
I am confuse with the exit rules.

Please help me.To give an idea about the exit rules in this microtrading.

Thank you.
Hoping for help.

2

Wowā€¦

Okay, so if the entry only involves the BBand, and the 3 EMA, why do you need Heiken Ashis, a TDI, a 5 EMA, and an MA alert?

Confusing and unnecessarily complex if you ask meā€¦

As for your problem with profit gains.

You will NEVER catch all of a movement.

If you get in a trade, and get out not only with your skin, but a little of someone elseā€™s, it is successful.

Donā€™t rue the pips that might have been, but instead be grateful for the ones you banked.

With experience, you will learn to catch more of them, but a lot of times those last few pips turn out to be the most expensive ones.

3

This sounds like a combination of the Synergy system (TDI, 5 EMAā€™s) and Microtrading the 1M charts system (3 ema and Bollinger Bands.) Obviously Dean Malone has had good success with Synergy but itā€™s too much for me, I like to keep it simple.

Can you post your template and the TDI? I also trade the 1m chart with Heiken Ashi. Iā€™ll take a look and give you any suggestions I come up with.

4

Hi,first of all thank your for your reply.

[QUOTE=Max99;214977]This sounds like a combination of the Synergy system (TDI, 5 EMAā€™s) and Microtrading the 1M charts system (3 ema and Bollinger Bands.) Obviously Dean Malone has had good success with Synergy but itā€™s too much for me, I like to keep it simple.

Can you post your template and the TDI? I also trade the 1m chart with Heiken Ashi. Iā€™ll take a look and give you any suggestions I come up with.[/QUOTE]

Yes you are right.This the two combination of those strategies.
Actually when i was using Micro 1 min strategy,i find it incomplete.I am not sure about the exit rules,exactly when should i exit after crossing Bbands.

In case of Narrow BBands,EMA goes madly.lot of collapsing at that time.

Is exit rules is when the 3EMA crosses again the Middle BBands ??
In case of narrow bbands its really risky.

[QUOTE=Master Tang;214904]Wowā€¦

Okay, so if the entry only involves the BBand, and the 3 EMA, why do you need Heiken Ashis, a TDI, a 5 EMA, and an MA alert?

Confusing and unnecessarily complex if you ask meā€¦

As for your problem with profit gains.

You will NEVER catch all of a movement.

If you get in a trade, and get out not only with your skin, but a little of someone elseā€™s, it is successful.

Donā€™t rue the pips that might have been, but instead be grateful for the ones you banked.

With experience, you will learn to catch more of them, but a lot of times those last few pips turn out to be the most expensive ones.[/QUOTE]

Yes I was confused,thats why i putted all.Now i am trying to clarify my view and removing unnecessary indicators. Heiken Ashi & TDI is not using anymore.

Problem is the EMA cross over indicator which i am using is showing false signal most of the time.specially in less volatility market.

And Synergy Trading templates signal is also not working.For me 70% time it shows wrong Signal.

I included the templates.

5

What is your win/loss ratio?

6

That i am not confirm of.5 to 10 pip maximum,as we are trading in 1 min chart.More than that will be risky.

7

Wouldnā€™t use MA cross at all. MAs lag too much.

Better use RSI(4), BBands(10,1.5,1.5) and ADX(10).

The RSI and ADX can be put over each other, with ADX fixed to same scale as RSI.

Then observe how precisely those indicators (that is RSI and +DI/-DI) correspond to the highs and lows in the price, and how the price bounces between the BBandsā€¦

8

Add 20 more indicators. I swear itā€™ll make you rich.

9

Thanks for the reply.I have setted up my chart in that way.Its.I am using 10 BB band with 1 standard deviation as you said instead of 18 Bband.correct me if i am wrong. Can you guide me more with it? Like exit and Entry rules.

10

Use the ā€œBandsā€ indicator from ā€œCustom Indicatorsā€ and set the deviation to 1.5 - 1 might be too tight.

I have included a picture of my setup and what a high probability trade usually looks like (white circles and connecting lines). In general you have to observe how exactly highs/lows in those inicators correlate with highs/lows in the price, to get a ā€˜feelingā€™ what would be a good entry/exit and what not. (In the RSI/ADX pane, RSI is blue, +DI is green, -DI is red)
I try to buy/sell when price reaches out of the bands and the other indicators are adequate.

And I advise to have open a higher time frame in the same instrument, with the same setup, for reference as where the trend is going. So the best situation is where your M1 indicators are aligned with those in a higher TF, say M15 at least.

And there is imo one important thing with repect to the RSI, which further helps me gauge the probability of a trade. Itā€™s somewhat difficult to explain: I watch how long the RSI has stayed above vs below its median level (50) and how ā€˜farā€™ it has reached in that. Or to better say how extensive the enclosed area above/below the median was. These areas (above vs below) have to come in balance over time. So if over the course of say 100+ candles those areas get out of balance (one predominates over the other/ they diverge in size) the probability of a reversal (at least in the short term) increasesā€¦

3108.jpg421Ɨ659 77.4 KB

11

Thank you for your reply.Now the picture is clear to me.Your description really helped me lot.I am studying your picture.
1 min is really hard,cause it movies very fast.Yes 15min chart will be a stable thing to go.I will follow your rules.Thank you very much.:slight_smile:

12

Sorry - I forgot to mention that the RSI has to be applied to the median price (HL/2)ā€¦

14

As a very experience trader I do not like this strategy. Overall if you are micro-trading or scalping you will lose. Get another strategy

15

Than what do you suggest as an experienced trader? Atleast help him get on the road with a more informative post.

I donā€™t have much experience with scalping (quick movements are hard to grasp) but indicators are going to be your worse enemy. They are all (for the most part) going to lag and your signals will be way to late, especially on the 1min timeframe.

Something simple I might suggest is using only support and resistance lines and wait for breaks of or bounces off this line. Or maybe wait for price to make 3 lower highs/higher lows before jumping in.

16

it would take me forever to tell him what he needs to do.

learn about this stuff on your own should take you about a year to master everything:

Bank Reports
Chart Patterns like head and shoulders, pennants cup and handles, Double Tops and Bottoms
Support and Resistance levels at 00 and 50s
ATR
10 DMAs
Previous Sessions Daily Highs and Lows and how it works when Asia retests Euro/GBP
MACD
Trade management
Order Entry and Exists with precision and how to get the best fill
Money management is VERY important
Fiboacci
Economic Reports that Actually do effect currency and how they effect it - when it will make a difference in the chart and when it will not
Pivot Points
Tom Demark Trendlines
Price Created Support and Resistance
Japanese candlestick patterns
Flows and BIS status
Convergences
Stochastics
Top Down Trading
and when to use what and where

17

Looking at your posted charts, I notice itā€™s at a very slow time of dayā€¦usually. These kind of systems are MUCH better if you stick to 8:00 to 16:00 gmt. Mike, you forgot VSA. ā€¦maybe 2 years lol.

18

volume figures for forex are inaccurate - the only way to judge volume (sortof) is to trade during the peak times then you can just assume that there is volume

19

There is way more use for it than that, but letā€™s not kick up an old debate in hereā€¦entitled to your opinion.

20

If you feel the need to trade 1min charts you might try getting your direction signals from a longer time frame. Only trade with the flow. You can try using a simple MA cross on your 1min chart as a direction signal not an entry it would be way to late. The thing about this is use a very long MA on your 1min chart like 200/400. If the 200 is below the 400 only trade short as an example.

Your gonna have a hard time making any system work on a 1min chart but if you limit your trades at the very least to run with a longer TF trend you increase your chances. The numbers I threw out are just examples and not part of a system;)

21

Hi Somsri,
New to this forum but maybe I can give you some more ideas to check out. ^^

I would also use a higher time from to establish the direction you wish to trade in. What im testing at the moment is CowaBungas " 4h trend identification" so to speak on 15m chart to establish the direction I will look for Scalps. It seems to be working very nicely for me but will post again soon to confirm. =)

Btw thanks for the CowaBunga system to whom it may concern. =)

So the settings are:

5 EMA applied to the close
10 EMA applied to the close
Stochastics (10,3,3) (slow and simple settings)
RSI (9) (Simple)

If the 5EMA crosses the 10EMA to the upside and RSI is above 50 and Stochastics are moving up (and not overbought) we will be looking for Buy signals on the 1min chart.

And the opposite of all for Sell signals.

If this is unclear, on the CowaBunga thread it is explained in more detail. =)

Now for the Exits,
I dont know how you prefer to trade but I like to get in, grab a small profit and get out. So im using a general TP of 8-10pips. I mean even if the trade could have gotten a few pips more, you are then safe with 8-10 pips and can be on the lookout for another trade.

I dont know about you, but with my system (which is very much the same as yours =) ) I tend to have quite a lot of signals a day. Only use the optimal ones (why risk if u will have a better entry in a few minutes). So if you could get like 20-30 pips a day excluding spreads would be just fine. In my oppinion one doesnt need more with good Money Management to accumulate a nice profit in the end of the month. But thats just me =)

What you ofcourse also could do, is exit with half your position at 10 pips profit and then try to grab extra pips by firstly moving SL to Breakeven and then exit when whatever situation has been established. (Thats for you to determine ^^ )

Ps.:
If you try my idea out, just look at your 15min chart everynow and again to check wether the trend has changed or if the stochastics are in overbought/oversold now. Have come to notice that there are more false signals if this occurs.

Hope these bunch of words will help. =)
Good trading

Mischa (ScorpSFX)

1 Like