PivotPoint TrendRider

I have thought of a new trading strategy I would like you guys to check out.

Here it goes.

It is based on pivot points (4 hour pivot point calculation).

We are only concentrating on the mid-pivot (not R1, R2, S1, S2).

Timeframe: 5 mins

Buy If: The open of current candle is 5> pips above the pivot point AND the low of the previous candle is 2> pips below the pivot point.
Close buy order as soon as the price hits 1 pip below pivot point.

Sell If: The open of current candle is 5> pips below the pivot point AND the high of the previos candle is 2> pips above the pivot point.
Close sell order as soon as the price hits 1 pip above pivot point.

This strategy may have lots of false breakouts. The stop loss on each trade is about 10 pips max depending on spread. The take profit will be much larger, usually around 30-50-100-200 pips depending on the strength of the trend.

Therefore it is a very good risk:reward ratio, and with incorporating money management into it (risk 2-5% of account balance per trade), it is a sure winning strategy in the long run, as any succesful trader would tell you.

The logic behind the strategy is simple, when price crosses above pivot point, it means we have the maket is bullish, and vice versa for bearish.

The reason I am disclosing this strategy is simple, like many of us here, I do not have time fore and do not want to spend long hours in front of my computer, therefore I would request if somebody would create an EA for this strategy.

Remember, this strategy will make a few small losses before making 1 big profit to cover all the previous losses.

What is the signal to exit a trade if in profit? An EA will need something to tell it to exit, or you’d want to exit manually?

Sweet Pip:

2 Exit Strategies when in profit:

Trailing Stop Loss of 40 pips

OR

When price hits 1 pip above (if a sell order (below if buy)) the pivot point.

E.g. We could sell on a cross below the pivot point, 4 hours later we could still be in profit and a new pivot point would have been generated, below the original pivot point we sold at, so if it hits the second pivot point, we’ve closed at a profit, and if it hits 1st pivot point (the one which we sold at), then it will close at a 6-8 pip loss.

Attach a 4 hour pivot point indicator on a chart, and tell me if you can visualise my strategy.

Hey f1trader, did you got someone to build an EA for you yet? your strategy looks interesting…

Nobody is working on the EA yet, if you are willing to code an EA, then I know some very good ways to trade pivot points.

Hi,

I can code this EA, have you tested the results of this startegy. How long have you been trading this startegy. If you can share some results that would be nice.

I am a big fan of pivots and have had reasonable success with them. Can somebody code this in JavaScript so it can be used with FxSpyder?

By the way, I have been using the current free PivotPointTrader available on FxSpyder on several currencies for the last 3 months and it is profitable. The only problem is that they don’t give all the details of its inner workings.

anybody? :smiley: