Randy Candles

Trading Systems Free Forex Trading Systems
21

Hey John,
thanks for posting this idea. I found it while searching for some new scalping ideas on the 1min chart. I’m a big fan of extremely simple charts.

I’m still working on tweaking some rules that work good, but so far this is what I’ve got (input or other creative ideas definitely welcome):

SETUP for 1min chart:
3 SMA must be ahead of 25 SMA (identify trade direction)
trigger candle occurs (doji)
entry candle follows, large candle with a large wick pointing in trade direction

ENTRY:
immediate market entry once entry candle completes (so this would be open of 2nd candle after trigger candle)

STOP:
initially set to be 1 pip outside the wick of the trigger candle

TARGET:
first opposite-color closed HA candle that occurs
or
if another trigger candle (doji-type) occurs and closes

RE-ENTRY:
ok after a new setup appears

22

Good stuff, dusktrader. You have it down.

I would say my greatest issue (which, sadly, seems true of all my trading to this point) is that I too often take trades that don’t adhere strictly to the rules (trading on the wrong side of the 25 SMA, alert dojis with too small wicks, entry candles without long enough wicks, etc.) in order to “get” a trade.

If one is simply patient enough to take only the best signals when they come it is hard to find a loser with this system. I haven’t traded enough on the 1m charts to know how good the win rate is, but I’d like to get some feedback on this timeframe for those working it.

23

My issue (not really a problem) is that I currently only have a very small time window to work with – it is 5am-7am before the dayjob. That’s why I’m so attracted to the 1min charts. I really like the idea of being able to “box in” a strategy. I am craving trading activity but at the same time need to be able to flip gears on a schedule. I’m hoping that this strategy will give me a couple trades each day. Once I get the rules down pat I will start recording a more formal journal with screenshots and report back. (Right now I’m still in that tweaking/research mode to make sure the rules are even a good fit.)

So far my initial impression of this strategy is that it will do great on moderate-to-long running trends (thanks to Heikin-Ashi) but I’m a little concerned about what will happen during whipsaws – I’m not sure. (Screen)time will tell…

24

Yeah, and I’m seeing a lot of such whipsaws on the 1m and 5m charts. I get many more fakeouts on my 5m trades than on my 15m trades. You also have to be concerned with average TPs of 10-15 pips on the smaller TFs, with spread costs eating up a good portion of that.

I have to say I am gravitating more towards the 4H charts where the signals off randy candles are very reliable. In fact, I’ve only had a few trades off the 4H charts but all have been winners. The drawback, of course, is fewer trading opportunities per week.

25

Thanks alot :slight_smile:

26

Ok, I’ve just made it through a (very long) thread at forex-tsd forum. This thread was started in 2007 as way to revive Randy’s concept of RandyCandles, which he apparently introduced originally on forexfactory forum. For various reasons, the FF thread died off and someone else tried to resurrect it at forex-tsd. Later in the thread Randy himself (GoldenEquity) began participating and also contributed new information.

As of today, it looks like the forex-tsd thread has also died off, but nonetheless this method seems profitable for many traders who participated. If there was one theme I would walk away from after reading all that, it would be that: This method works well and and on a variety of timeframes. It can also be tailored using filters and indicators as the trader sees fit. The core concept of RandyCandles is solid.

I took some notes while reading the forex-tsd thread (I would encourage you also to do it because it has input from several successful traders using the method, including Randy himself). I’m not sure if I’m allowed to post links here at babypips but I will summarize a few key points for you (listing the username if applicable):

[ul]li “Pull up a 15m RC chart on the Eur/Yen and you’ll see that you could easily trade this pair for 1 hour at the NY and London open. Period.”
[/li]li “Each day I study the charts and drill down from the monthly to the 15m. So I have a pretty good idea of what I hope to accomplish that day if anything… For example, I only trade the EURJPY at the Asian/Aussie open. It moves…I’m only looking for 8-10 pip” (note: I believe summitfx now trades as low as the 5min chart)
[/li]li Uses an EA called “manageTP EA” to hide and manage takeprofits with IBFX live (to avoid stop-hunting by broker)
[/li][li]Favorite pairs discussed include: EURJPY, EURCHF, EURJPY (though many others are also traded)
[/li]li Developed his own highly-successful variation of the system. He likes these stoch settings (from what I can tell): 9/4/7 (1min); 9/5/7 (5min); 9/3/7 (15min) (NOTE: the settings changed throughout the thread, but these are what I noted down)
[/li]li Best times to get pips: Asian open, London open, US open and Sydney Open (see image I’ve attached)
[/li]li Looks at the Daily 10, 20, 50, 89, 100, 200 ma’s for support/resistance
[/li]li A very good philosophical discussion about the meaning of Zoro and ChiliPepper candles, albeit potentially not the author’s thoughts (but good insights nonetheless) on post #434
[/li]li Randy likes to EXIT on the long body candles with mostly-long wicks (perhaps due to the high possibility of snap-back retracement)[/ul]
[/li]
Overall, I feel like the time spent to read through this history thread was well worth it. I have gained many new ideas and learned what I do NOT want to try (LOL). But most importantly, I am greatly inspired by this method. I like the idea of a fresh new thread on this and hoping that we can create a SIMPLE edge out of it.


28

Good work, dusk. Yes, I spent weeks searching the web and studying all those threads. I didn’t want to try and burden everyone with all that information at once - nor did I wish to link to other forums here. Also, it can be fairly said that much of what got piled onto RCs in terms of additional indicators was redundant and (in my opinion) largely unnecessary.

But your brief synopsis of what some of the other traders contributed is spot on. You can see why this strategy so intrigued me that I did what I’ve never done in a year of joining here: start a strategy thread on my own.

One thing others here my gather from those other threads is what I really don’t do: templates and indis for Metatrader 4. Since I trade off the Trading Station II platform with Marketscope all my examples and templates are from that.

29

For the record, I plan to trade this with as naked of a price chart as possible. I want to be able to visualize raw price action patterns without too many indicator crutches. I’m purposely using O-anda instead of my MT4 broker so i hopefully wont be tempted (O is also great for scalping, so I hear…)

30

good info thanks!!

31

There was one other thing I forgot to mention - a lesson from goldenequity about one way to use fundamentals. I don’t normally put a lot of emphasis on fundamentals (other than news, for example) but this concept seems brilliant to me. I’d like to try to implement it on whatever pair I am trading with.

I had to re-read this a couple times for it to sink in, but it does make good logical sense. I’m going to quote straight from post #746 (by goldenequity):

[quote]I Primarily trade the GBPJPY by monitering both GBP and JPY currencies against the dollar.
To those of you who trade the GBP/JPY…
How many of you did well at the beginning of the week (especially Wednesday)?

If you review your charts, [B]see if you[/B][B] find that when the GBP/USD and the USD/JPY are in “sync”[/B] it becomes “easy(er)” to trade the GBP/JPY.
When they are arguing with each other and moving opposite each other it becomes difficult.

From a fundamental analysis, look at it this way:

If the “market makers” (i.e.“them”/“they”) are selling the GBP and [B]buying the USD /B, then the USD/JPY will be moving [B]opposite[/B] of the GBP/USD. It makes trading the GBP/JPY very difficult, for obvious reasons.

If they are selling the GBP and [B]buying the JPY[/B], you will see ALL 3 Charts (GBP/USD, USD/JPY and GBP/JPY also EUR/JPY) move together in the SAME direction.

The charts I posted, (within reason) began to synchronize and move the same direction at the same time in the beginning of the week (selling GBP/buying JPY), and strongly reversed on Wednesday(buying GBP/selling JPY), and they became disconnected on Thursday/Friday as the markets focused more on the USD.

They (market makers) were (simultaneously) STRENGTHENING (then weakening on Wednesday) the DOLLAR [B]and[/B] the YEN at the expense of the GBP.

When they are strengthening the DOLLAR ONLY, it will be at the expense of the YEN (typically) and the charts move opposite.

To put it simply from the technical analysis side, the best time to trade the GBP/JPY is when the GBP/USD and USD/JPY move in
the same direction.:slight_smile:

This is why it is [B]crucial [/B]to be able to simultaneously moniter the USD, even if you are trading the GBP/JPY.

Picking your points of entry and exit still requires all the things (RC’s/Waterfall patterns/Stretch Candle exits) as discussed before.[/quote]

33

One problem I have when learning new methods is forcing myself to keep things simple. The more I read and absorb, the more my brain wants to complicate. For example when you observe the history of how this evolved on forex-tsd, you start gathering tidbits and optimizing. Seems like this is not the time to be optimizing a system that I don’t even have under my belt yet.

For example, it seems like most of the experts trading this system are using something other than EURUSD. But so far all my testing has been on EURUSD so that is where I think I should stay focused. I think summitfx made a comment at one point that he only moves on to a new pair when he has mastered the last one. Too much new information/optimization at once might cause overload I think (at least for me).

I need to keep it extremely simple until I get some “traction.” Same thing for pips… I think I will target only a small handful on the 1min chart, about 10 (I do sometimes set a target, but it’s usually based on a recent price level, not just a flat number). The experts trading this system say that many more pips are possible, but until I get traction with ~10 consistently, seems useless to try for more. Once I can nail out the 10 over and over with consistency, THEN it will be time to look at optimizing. How many am I consistently leaving on the table? Is this pair performing well during my trade hours?

I also like the philosophy the user kermut was using. He said he targets 10 pips only, and then closes out his live position. But then in a demo account (or maybe just mentally), he sets his anticipates his targets and watches-and-learns.

You have to start somewhere.

34

I can tell you I’ve had some issues on the shorter TFs but must confess they are largely of my own making. If followed strictly, this system wins at a high rate. However, I find myself taking sketchy trades where price is still near the 25 SMA. This is due to impatience waiting for that perfect, “cherry” setup. It is difficult to avoid making ‘busy’ trades on the 5m and 15m charts when I’m sitting there for several hours during peak trading hours. I have found that I am making better decisions on the 4H charts.

And I keep my home chart very clean, just the HA candles, 3/7/25 SMAs and a 14,3,3 stoch for exits.

36

Jumped out without damage, indicators are slowly turning bullish … would just be gambling right now.

37

Hey MerchantPrince,
Thanks so much for this informative thread. Keep up the good work!

38

Hi,
Having read both pdf,s and the thread on the other forum just want to confirm. The original Randy uses HA candles and bar chart. The bars give the stems and the colour, hence where zorros and chilli come from, and the reference to waiting for the correct colour for the trend. I take it people on here are just using HA candles.

Yours

Mark

39

Hi all. I stumbled across this system. I read the pdf’s and looked over the set up on my MT4 and really like what I see so far. There have not been any posts here for a long time. Is there anyone here still using Randy Candles with success?

40

Real life issues forced me out of trading last November and I’ve only recently returned to trading. In fact, this reply will be my first post post on BP since then.

I have not yet gone back to RCs but I am trading the same style: taking trades in an ongoing trend after brief retracements.

41

I’m glad to see you’re back in the saddle. I will start posting my results with Randy Candles, but first I need to learn how to post screen shots of my MT4 account. I have a modest goal of 40 pips a week, and I am +20 so far this week. I work 50-60 hrs a week, so I only have a few hours each morning and night to trade. I think posting here will help me transition into a fulltime trader with criticism from other, more experienced traders.

42

I’d recommend Clip2Net, which will allow you to capture screenshots easily and edit them before linking them in a forum like this one.

43

Just saw this last week & made first trade yesterday, already +103 pips, beginners luck ? I don’t know but it does seem to be working up to now with plenty of opportunities, I use it on 1hr bars