Here are some nice 4HR trades.
thanks
Here on the 1 minute. The stop loss is nice and tight, the open of the previous candle. And the Risk to reward Ratio is 1 to 3+ This combined with Breakouts and the new rule for Horizontal lines for with HH and LL is good.
thanks
Here is the problem with fake outs, :28: Are higher time frames better? I see divergence in the OSMA, maybe thats the key?
I understand this new strategy, looks good and i do like having a tighter SL, does mean we could trade at risk 5%, with actually less risk.
PS Blizard i don’t blame you for wanting to enter at the best position ! I have been trying loads of indicators to do this, but haven’t mentioned any since they all failed !!
So Blizard i have this as a suggestion for entry and exits.
Also Blizard im not sure if you have realised this, but by us having a few options for entry and exits it does give us a fallback should one day one of these approaches fail (which i doubt, since the market will always be moving!)
[B]Entry rules:[/B]
- For a sell = The above dot outside Bollinger Band, current OSMA is light green, should then change to dark green, wait for 2nd green bar for confirmation. Reverse this for a buy trade.
IF ABOVE RULE NOT VALID AS DOT IS INSIDE BOLINGER BAND THEN:
- Use Blizard’s current entry with trend lines or the modified HH or LL horizontal trend line as mentioned before to enter trade.
For pure entry, we know method two works, and method one would allow us to get more of the trade, and give more opportunities and if the bollinger band misses it then the horizontal trend line would catch us most of the trade.
[B]Exit Rules:
[/B]
- Dot is outside of Bollinger Band
ELSE
- Current exit rules
This is my thinking on the subject. I just had a look back on todays 5min 4 minibar EURUSD and it does work and it would alow us to grab more pips.
The only issue i can see is as the current dot repaints, do we only enter when the new dot appears outside the bolinger or do wait for a new dot so the dot which is outside the bolinger band has a dot after it confirming that high or low?
Or do we just go with entering a trade one the dot appears outside of bolinger band and the OSMA changes colour? Can this work going forward?
I haven’t had a chance to test it yet, will try and watch it tomorrow. What do you think Blizard?
HI Sandy, thanks for the input. You are correct that the current dot will repaint and thats why we get the fakeouts and must add another filter(OSMA). With the current setup You would enter the trade as soon as the OSMA changes color and the dot is outside the BB. Your SL is placed at the open of the previous candle incase of the fakeout. If you get stopped out, double your position for the next entry. I think the 5 min should be the minimum time frame for this as the one minute has many fakeouts.
Another option may be to combine with the fib pullbacks to the “sweet spot.” I drew the fibs upside down to show extensions.
thanks
I think the general key is the higher the timeframe, less chance of fakeouts, not sure about divergence.
Im wondering if this works best on 5min and above ?
Blizard does the current OSMA bar repaint? If it does, maybe we wait for the second dark bar as confirmation? It does mean we loose a little bit of profit, but maybe better for stability and less fakeouts?
Also by using both the trend lines and this new BBand method, i’ll just call it “BBand for now”, the trend lines and BBands should give us alot of entries.
Maybe on the 5min charts, only using the dot outside the bband and OSMA color change for entry and then when the next dot exits the bband exiting then?
I think overall that might give us more trades, more profit per trade and fewer fakeouts, what do you think Blizard?
Or exit could be predetermined profit with a trailing stop, larger the timeframe, larger the trailing stop ?
Agreed Sandybeach. I dont think the OSMA repaints as long as the bar is closed.
Cool since we have our determined entry and exit points, were have to give it a go.
Just so were testing things the same i will be going on EURUSD, 4 minibars, i’ll look at trades in both directions, normally i would only go with taking trades in the direction of the trend, but im curious on this change, it may make we want to re-evaluate how im doing things. But i plan on ignoring the pivots and Fibonacci placements and base my entry and exits purely on what we have said above.
PS the only reason i go with taking trades in the direction of the daily trend is to help reduce fakeouts. It helps, but i do get fewer trades.
I guess were see how we did by end of tomorrow 
I have a feeling were going to have similar results only exception i think the pivots and Fibinocci will help to cut out more fakes.
Hi Sandybeach will you be trading the EUR/USD on 5 minutes? Also, ill be using the minBars “3” setting. On all time frames including 5 minutes.
One more thing i noticed is that many fakeouts can be eliminated if the “confirmation candle”(the candle that causes the OSMS to change color) closes above the open of the previous candle on a “buy” trade. This ensures a strong candle. The opposite is true for a sell trade, The OSMA must change color but the close of the candle must be lower that the open of the previous candle. Ill attach an image to explain.
thanks
Yes, EUR/USD on 5 mins, with minibars “4” setting. Im going to just give it a go with EUR/USD for forward testing tomorrow. Its good we both will be using slightly different settings.
If this is a pip maker, and we get more trades a day, it could easily account for any losses encured. Thats what im thinking.
I think just as were used to horizontal lines were changing lol. If this works well tomorrow, i say a week of forward testing should be good enough to prove if this a real enhancement.
I think it will be though
Nice find Blizard, how did you come across this? Were you just experimenting and it just clicked ?
Another interesting point is that the entries and exits seem most valid when combined with Fib pull backs to the sweet spot, and the 161% extensions.
Looks like your right on the money again 
I’ll watch the EUR/USD tomorrow just with going with the 2nd bar as confirmation with the candle closing as you mentioned above. Another great find !
My logic was to use the 2nd change of colour bar as confirmation? Just to ensure confirmation of the change.
Also my MT4 is GMT+2
But still 3 valid signals in 7 hours with aprox:
- 80 pips
- 30 pips
- 20 pips
I think this new change, really could produce very nice results on the 5 min chart. On the 1 hour… well about 250 pips since 0700 on the 21st of May. So good all round !
im excited all over again.
Dito, you know its funny, just when i was ready to go live you came out with horizontal trend lines, so i held off again so i could practice and just when i was thinking next week i’ll go live and give it a shot you gave us this gem
I am quite excited about this new method, just as it could give us more profit and i think its safer than using the trend lines when going against the trend. That is if we were to only use BBands and not use trend lines for entry/exit anymore.
Boy what a change.
No fake trades in the last 4/5 hours which is odd for me since its past my normal 1600 stop trading time (GMT time), Blizard this new strategy could work something like this:
During London / New York session times we will get 20 - 30 + even upto 50/60 + pip profit, overnight, just maybe 3 - 5 pips excluding hotforex spreads.
Thats my initial examination. But yes i am excited now just like when i first saw your thread and when it all clicked for me That was first moment of excitement when i thought “This could be my trading style for life” lol. Odd to think i might be using Bollinger Bands when i always avoided strategies with them in the past lol. Looks like no more !
The next few months look bright my friend!
What about years?
Even if thr bbands strategy failed one day i dont see how the trend line one could!!
blizard, just been looking at the EUR/USD overnight. Three profitable trades, including a nice new one on EURUSD just went ahead now, the MT4 chart below is GMT+2 hours.
Trades are:
-
- 10
-
- 30
-
- 2
- At the moment its +10 pips
I have noticed something. Now for entry we have the following, Blizard what do you think about exit? (im not taking into account Fib’s or Pivots at the moment), might be a good way to exit to try and get the most out of each trade?
How does this work for you Blizard, do you see something similar?
In a Sell:
- On “SwingZZ” Wait for Dot to appear outside of Bollinger Bands
- On “OsMA” Wait for light green bar to change to dark green. Enter on second dark green bar.
Exit:
- On “SwingZZ” wait for Dot to appear (does not matter if it is inside or outside of Bollinger Bands)
- On “OsMA” wait for light red bar to change to dark red. Close on open of second dark red bar.
Reverse for a Buy.
Hi there Blizard,
I m new in this forum and came across your thread. I have been reading the first few pages of this thread and also read the latest few pages.
My questions are:
- Do the system in post #1 still working because I have read the latest few pages and noticed you and sandybeach are talking about new system which makes me wondering if the original system is still working.
- After I downloaded the Swing_ZZ , where do I put it in order to use it?
Hope you can answer my doubts. Thanks in advance. Meanwhile, I continue reading the thread…50 pages of information is going to take a long long time to digest
Hi PippinPips, welcome to Babypips, in regards to your questions:
Yes Blizard’s original strategy on page one does work, using the horizontal trend lines on a HH or LL as described on the past few pages.
With regards to settings, this is where we differ, we all prefer slightly different settings, the lower the mini-bar number the more oportunities you will have for trades.
I prefer minibar=4 on the 5min chart, but yes this does work !!!
I tend to scalp just a few pips but Blizard and the others go for 5 - 15 pips per trade.
Yes i do understand the confusion, it is and is not a new system, its more of an evolution, once your caught up your see what has happened. Using the trend lines does work, but Blizard came across doing it differently so we could capture more of the high or low depending if were going on a buy or sell trade.
Im not discounting the previous method and i like to think of that as strategy 1, this strategy 2 with the Bollinger Bands.
The reason me and Blizard are pushing ahead with this new method (we are just testing now), is that from what i can see we are entering more at the start of the trend, rather than half way down, and it appears that using this new method, simply gives more profit, less chance of a fake out and would allow us to capture more profit in large movements. If i could get 50 pips in one of those wow !!!
My goal with this system is 15 - 20 pips a day and that has not changed and will not change. But this new modification could double the pips were gaining per day without actually increasing the chances of a fake out or loss.
I think meand Blizard are almost agreed on what should be the exact entry and exit routes, but when we add in pivots and Fibroniaci it does work better.
For the record im not using pivots and Fibronacci, but Blizard is and so far we are both getting positive results but were know by the end of todays session whether we should continue testing this modification.
If you drag the Swing ZZ onto your chart it should add it and your see the highs and lows and the lines connecting them like on the charts everyone has posted.