Hi Cloudninee.
A quickie…
What time is your close of daily candle, and does your broker offer a practice account?
I am using OANDA and their daily close seems to be early in the morning.
Thanks,
Chris A.
Hi Cloudninee,
I’ve been testing this strategy op a paper account for a couple of months now with good succes.
I must say I am a fan of this strategy and am planning to use it on my live account soon.
Would you mind sending me the pairs you trade?
Cheers
Mees
Hello, thanks for sharing this. Been looking for a new daily system to trade, of this is on my list to give a look. Could you share your pairs with me too.
Much appreciated!
I don’t track stats, unfortunately, not my kind of thing, I simply track profits as that’s all that really matters at the end of the day. I know this is not ideal but I just don’t have the time to track everything else and isn’t really of my interest.
Hi Emily,
Wow that’s amazing to hear and well done.
I have DM you the pairs.
Thanks.
Hi Chris,
I’m using OANDA as well myself. They do offer demo accounts. The daily candle changes over at about 7AM my time (I live in Queensland of Australia). With daylight savings it’ll be around 8AM.
Just remember though another benefits of the daily chart is that you don’t have to always check the chart at exactly when it changes over as you typically will be setting up the trades for the following days, you can check it whenever convenient - preferably before the follow day’s London session starts as that’s when the market will realy move.
So for me, on a normal day, I typically get up to check the charts around 6-6:30AM my time as that’s also when I get up for coffee and exercise anyways. For any reasons if I can’t do this, I will just check around 9-10AM. You don’t want to trade too close to the change over time as the spreads will be huge. Either at least 15 minutes before, or an hour or two after is fine.
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Hi Mees,
That’s lovely to hear and I’m so glad so many people now are able to trade with good results based on the strategy.
I have DMed you the pairs.
All the best.
No problems and all the best testing it out.
I will DM you the pairs now.
A little tip for anyone still following this strategy or, are looking to improve upon it, this is something new that I have been doing for the last few months and have provided me with good results and better chances of taking contunuation trades.
One weakness of this strategy has been there often are less trades when prices are around them middle of the bollinger band, which essentially is a 20 Moving Average (MA). I have been turning off the middle of the band and replace it with a 20 EXPONENTIAL Moving Average (EMA). This sticks closer to price and on a good strong trend the price will often respects this line A LOT more.
Try this out and let me know what you think.
Also happy to answer any other questions you may have. All the best and good trading.
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Thanks for the followup tip!
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Hi Cloudninee, Wow! What a thread. Thanks for sharing your strategy. Very helpful! I have two general questions that I didn’t see discussed above:
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I love the idea that you only check the charts once per day. BUT, if you happen to take a look at another time, and you happen to see a good setup that wasn’t ripe the day before, do you go ahead and enter the trade, or do you still wait for your end-of-day trading window?
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In your very first post, you said that you look for “market structures” but I don’t really see that discussed in the rest of the thread. Does this refer to news events, pivot points, or something else?
Again, thanks so much!
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Hi,
Thank you for your comment.
Here are my answer to your questions:
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This rarely ever happens. I have a strict rule to ONLY EVER enter into a trade once a candle is nearly or has completely finished (30 minutes to an hour before to 2-3 hours after the market changes over). If you enter into a trade too early a doji can easily turn into an engulfing and an engulfing can easily turn into a pin bar and the like. I have done this before and been burnt by it too many times so I have had to learn it the hard way (by losing real money). The only ever time when I may do it is as there quite a few currency pairs to check and I happen to wake up late or run out of time, and I may have missed a trade. As said, as I have been trading this a while though and I only ever trade the strong and clear signals now, the setups scream out to me so I’d never miss.
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To be honest, I trade following price action setups and the bollinger band the most. Market structure to me like you said is mostly pivot points, the point where price turns and recent highs/lows to watch out for in case price reverses. Also, it’s valuable to know trend formation (3 point higher high for uptrend and lower low for downtrend) to know whether the market is ranging or if it’s trending, but to be honest, the bollinger band is kind of already doing this job. Other than that I don’t spend too much attention to it.
Hope you find this helpful 
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Very helpful. Thanks!
If it’s not too much trouble, I would like to see the pairs you trade. Would you mind sending those in a private chat? Again, thanks.
Sure thing, I have DMed it to you.
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Hi everyone,
I trust you are all well.
A lot of people have messaged me asking about continuation trades, so I have provided my trades taken this year so far on OIL (as this contain good examples of continuation trades).
People seem to have also been interested in knowing how long trade could go for, so below I have listed the open and close dates of trades, which can give you some idea on this as well.
I will try to keep posting images and posts like that as regularly as I can so that people can have a further understanding of the trades and setups I take.
Results on the above trades taken are:
Trade 1
Open: 2 February 2021
Close: 8 March 2021
P&L: 6R ($3,000)
Trade 2
Open: 9 March 2021
Close: 29 March 2021
P&L: 1R ($500)
Trade 3
Open: 27 April 2021
Close: Still running
P&L: 2R ($1,000) and SL at BE (risk free)
Trade 4
Open: 12 May 2021
Close: Still running
P&L: BE
Again, happy to answer any questions so feel free to shoot any my way on this thread or via DM
All the best and good trading.
4 Likes
I’m just perusing some of your trades - they are actually very similar to the way I trade, many of the price action patterns I follow, show up on your charts too.
You make your charts a little more complex than my own, but much of it is the same.
Anyway, you are doing a great service to the community - particularly with a full-time job, two part-time jobs, and mouths to feed.
There is obviously truth in the old adage, if you want something done, give it to someone who is busy.
Lol
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Thanks for sharing mate. Been demo trading this system successfully for the last 6 months. Going to start trading it with real money now. Let’s hope the success keeps going.
Good luck! Question: Have you used the exact same parameters as Cloudninee, or have you tweaked it? If you’ve tweaked it, how so?
Hi Cloudninee, I’m curious about your thoughts on a few of things:
(1) I’m going to experiment with adding pivot points to my charts as well as the Bollinger Bands. Would you recommend using the Daily Pivot Points, Weekly Pivot Points, or something different?;
(2) I just finished reading Trading in the Zone by Mark Douglas. Good book! In the final chapter, he suggests a trading exercise: pick a market, pick a system, then trade that system exactly the same way for 20+ trades to see if it gives you an edge. Along with the exercise, he says you should define every element of your system so it’s replicable (i.e., trade entry, stop-loss exit, time frame, taking profits, etc.). Here’s my question: How do you define your trade entry? I get it. Analyze the Bollinger Bands and, based on the price action, general trend, distance from the 20 day moving average, etc., decide when to take a trade. But, at some level, that’s still very subjective. Can you boil down your entry decisions to objective criteria?
(3) Are there any other indicators you think are helpful for confirming your entry decisions? RSI, MACD, Stochastics, etc.?
(4) Finally, more of a comment than a question: My next read is Understanding Price Action: Practical Analysis of the 5-Minute Time Frame by Bob Volman. Thanks for the recommendation!
Thanks!
Exactly the same except for 3 minor details.
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I don’t trade the middle bollinger band. Will look at that in the future.
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I use stochastic as a confirmation. It keeps me out of some good trades but I think it keeps me out of more bad ones. Settings are 14,3,3.
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I always use stop orders to enter the trades. I go a few pips below/above the signal candle. Keeps me out of some losers for a small sacrifice of a few pips on the winners.
It’s a great system. Highly recommend it. Good luck
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