Dude can u help me, i am a newbie what i don’t understand is did u really take profit after getting 10 pip ?
I understand the winrate gonna be 90% bcs It has small tp only 10
The problem is if i go to 1:1 risk reward ratio with 10 tp and 10 sl of course that win ratio gonna be plunge bcs sometimes It hit SL first
If i didn’t use SL the win ratio has 90% but whenever i lose i gonna loss almost half profite bcs i don’t know where to stop
It confusing me really
I am playing losing trade bcs this problem in demo
@theRedHarry I am not sure RSI would have been a real help where you marked on the chart. In my opinion it wasn’t about the true market move, there were more high impact news that could make such effect. I’m not saying RSI is no good, but maybe not at that point. I also have RSI on chart, showing hidden and real bearish and bullish signals, but didn’t see any useful signal so far.
So you look for divergence between the rsi and stochastic for further confirmation? Is that how it works? Or the direction or crossing of the rsi/stoch? Or if it’s in overbought/oversold territory? How do you use it? Thank you in advance!
Surely one must know by now that the markets are not news driven, the news is only an “excuse” for the market to make said move. So that big move was already pre-determined.
That being said, with a divergence formed between the Stoch RSI and price, there is supposed to be a big move after it has formed because there is a difference in the movement of price and price itself. Remember that the RSI derives from price and the Stochastic RSI derives from the RSI itself.
There is also a downfall to using it though, when will you know that the top or valley in price have been reached, as price may move higher or lower giving a new high or low on the StochRSi.
As mentioned is that I will not use the StochRSI divergence as an entry. It will only be used after AT’s strategy gives an enrty signal, then the StochRSI will be used as an extra confirmation, to check if a divergence has formed.
But as I said, I have only backtested a few hours of chart data, not live tested it though- that will happen this coming week.
Just take note that I am using the StochasticRSI on Tradingview, and not the standard Stochastic or Rsi indi.
You look for a divergence between price movement (established highs and lows) and highs and lows formed by the indi. It has nothing to do really about the crossing of the lines, compare highs and lows formed between price and the indi. Then wait for an entry signal given using AT’s strategy (I use the coded indi on TV). Use the StochRSI only as an extra confirmation.
Got this on my charts, and it works as advertised. Thanks Daryl. I didn’t change any of the settings and it appears to work like the individual indicators we had lined up before.
The only part of this strategy that I don’t use is the PSAR. I personally don’t see it as beneficial. If I’m severely missing something, someone please let me know.
I also prefer the use of the MACD over the RSI/Stoch. I have been using crosses for potential exits on runners. A MACD cross is usually earlier than the entry signal for this strategy, so in that case its an added confluence. I have added a 100 EMA just to help distinguish a medium term trend. I tend to get chopped when price is ranging, and the 100ema helps me realize that.
As far as timeframes and other pairs, I’ve jumped over to GU and AU a few times last week and I don’t see any reason why this wouldn’t work on at least the majority of the majors. It will also work on the 1M chart, but I think that will potentially “force” more trades (for me) than the 5M. I’ll be looking at how beneficial this may be on a larger TF, 15/1H as I’d eventually like to spend less time with a chart open.
Here’s the chart showing both the ranging time prior to the news bump and the beginning of the bump with the We Trade Live Entry Exit indicator on MT4.
Would show an exit earlier than the PSAR on the big bump, but can be used to filter out based on volume and RSI.
**For newer traders, the idea is you first would look at whether the Green/Red line is above or below the 0.00 white line near the bottom of the picture. In the screenshot above, the Green/Red breaks over the white. So it is a Buy Signal for as long as the line stays green. It then turns red (exit). You do not enter a sell trade while it is still above the 0.00 white line. Then it turns green again and it is still over the 0.00 line so it is another Buy entry signal. When it turns red at the end, it is an exit signal.
You can ask the mods to let you change the first post. I’ve seen a couple really long and old threads where it seems the first post can be changed like forever. So I guess with that you could update the settings and maybe even update the post with the enhancements.
That’s what I’m personally doing. So, I wait for a signal then at the start of the next candle I put my stop loss just above the upper green line for a sell or just below the bottom green line for a buy and I then set my reward to risk ratio at 1.2:2.
This ensures a nice tight stop loss and a decent reward to risk ratio. It also reduces the necessary decision making process and therefore the chance of miscalculating something or getting carried away with your emotions.
