Simple & almost naked. The dream date or the dream system?

[PippinPips]

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.

Hi there SandyBeach,

Thanks for replying.

I have a bit of confusion as to post #1 and hope you can explain it for me.

"Place your stop loss and the last dot of the opposite color. "

Q1:What did Blizard meant by placing stop loss and last dot of opposite colour? I thought the dot appear itself?

Q2: You said you are not relying on Fibo. So how does your method works? Mind to explain?

Q3: For me, 1m Tend to lag for me. Thus, I prefer to trade at other TF. I have read the earlier few pages, one of post actually mentioned that this system works best for 1min chart. So, does the efficiency of this system get affected if I trade in 5m chart?

Thanks for answering my questions. I m a bit new in this area. So probably I have tonnes more questions to ask if you dont mind. Sorry if some of the questions are a bit stupid… Thanks in advance

[sandybeach]

Don’t worry PippinPips, i have asked loads of questions, nice i can help and return the favour All in good community spirit, the guys and gals at BabyPips are great and friendly so don’t worry about showing your noobiness You wont get flamed or trolled and i do it all the time here (asking noob questions) as to be fair i am a noob
Ok here goes:

Q1:What did Blizard meant by placing stop loss and last dot of opposite colour? I thought the dot appear itself?

> This screenshot below is from Blizard’s first screenshot on the first post. Now look at the last trade on the far right. As the current dot is blue we are using the trend line formed by the last two blue dots. You should see Blizard’s red line where he would enter a sell trade. The stoploss is the second red dot going back, as shown by the photo.
> Escentially if current dot is blue, then stoploss should be set at the value of the second confirmed red dot.
> If current dot is red, then the stoploss should be set at the value of the second confirmed blue dot.

[sandybeach]

Q2: You said you are not relying on Fibo. So how does your method works? Mind to explain?

> To be fair, you should use Fibo and pivots. These do help to reduce the chances of fake trades. I tend to only take trades going in the direction of the daily trend which eliminates almost all fakeouts, but it does mean i do lose out on good trades which the other guys here would take.
> Also i tend to go for the least amount of profit i can get. I am still new to forex trading, so im trying to just get good at the moment. Once i can get 0.1 pips profit per trade consistently, then i will be happy and take more chances.
> Also i set my minibars to 4, rather than 2 or 3 which Blizard and the other guys tend to use. Only reason is so i get less fakeouts, but as your see when you play about with the setting, you do get fewer trades. But this works for me, im sure others here prefer the minibars on 2 or 3 so you get more trades, but i prefer 4 as there are fewer trades, but the trades can be bigger. This is one reason why Blizard’s new Bollinger Band strategy has interested me, i reckon if it works i can get much more pips with no more risk

Q3: For me, 1m Tend to lag for me. Thus, I prefer to trade at other TF. I have read the earlier few pages, one of post actually mentioned that this system works best for 1min chart. So, does the efficiency of this system get affected if I trade in 5m chart?

> Yes and no, the general rule on any system from what i can understand is the higher the timeframe, the more acurate the data is your looking at, regardless of the indicator, when your at 1min, things change to quickly you can get fakeouts and whipsaws happening, you need to be really quick to get the profit, but your only looking for 1/2 pips max, the higher the timeframe, fewer trades your get in any 24 hour period, but the greater level of profit you can get.
> I prefer the 5 Min timeframe as the 1 min is very quick and i make too many mistakes, the 5 min gives me more breathing room, and i don’t have to watch the chart like a hawk ! With the 5mins you can generally get an idea of what might happen and you know if you have time to go have lunch, with the 1 min, no such luck.
Plus anything more than 1 hour and i am inpatient. I like the 5 min, as i could trade it during the London market hours, end at 1700 and sleep at night without any trades going on.
This strategy can work i with any timeframe. Generally higher the time frame = less chance of fakeout, greater profit per trade but fewer trades per 24 hour.

BUT Blizard’s new rules change this completly. I don’t want to comment too much about this until we have had a chance to properly test this today. But keeping watching this space

[PippinPips]

Don’t worry PippinPips, i have asked loads of questions, nice i can help and return the favour All in good community spirit, the guys and gals at BabyPips are great and friendly so don’t worry about showing your noobiness You wont get flamed or trolled and i do it all the time here (asking noob questions) as to be fair i am a noob
Ok here goes:

Q1:What did Blizard meant by placing stop loss and last dot of opposite colour? I thought the dot appear itself?

> This screenshot below is from Blizard’s first screenshot on the first post. Now look at the last trade on the far right. As the current dot is blue we are using the trend line formed by the last two blue dots. You should see Blizard’s red line where he would enter a sell trade. The stoploss is the second red dot going back, as shown by the photo.
> Escentially if current dot is blue, then stoploss should be set at the value of the second confirmed red dot.
> If current dot is red, then the stoploss should be set at the value of the second confirmed blue dot.

Wow, Thanks, I always thought the SL should be the last unconfirmed dot. Now I understand how it works.

[PippinPips]

Q2: You said you are not relying on Fibo. So how does your method works? Mind to explain?

> To be fair, you should use Fibo and pivots. These do help to reduce the chances of fake trades. I tend to only take trades going in the direction of the daily trend which eliminates almost all fakeouts, but it does mean i do lose out on good trades which the other guys here would take.
> Also i tend to go for the least amount of profit i can get. I am still new to forex trading, so im trying to just get good at the moment. Once i can get 0.1 pips profit per trade consistently, then i will be happy and take more chances.
> Also i set my minibars to 4, rather than 2 or 3 which Blizard and the other guys tend to use. Only reason is so i get less fakeouts, but as your see when you play about with the setting, you do get fewer trades. But this works for me, im sure others here prefer the minibars on 2 or 3 so you get more trades, but i prefer 4 as there are fewer trades, but the trades can be bigger. This is one reason why Blizard’s new Bollinger Band strategy has interested me, i reckon if it works i can get much more pips with no more risk

Q3: For me, 1m Tend to lag for me. Thus, I prefer to trade at other TF. I have read the earlier few pages, one of post actually mentioned that this system works best for 1min chart. So, does the efficiency of this system get affected if I trade in 5m chart?

> Yes and no, the general rule on any system from what i can understand is the higher the timeframe, the more acurate the data is your looking at, regardless of the indicator, when your at 1min, things change to quickly you can get fakeouts and whipsaws happening, you need to be really quick to get the profit, but your only looking for 1/2 pips max, the higher the timeframe, fewer trades your get in any 24 hour period, but the greater level of profit you can get.
> I prefer the 5 Min timeframe as the 1 min is very quick and i make too many mistakes, the 5 min gives me more breathing room, and i don’t have to watch the chart like a hawk ! With the 5mins you can generally get an idea of what might happen and you know if you have time to go have lunch, with the 1 min, no such luck.
Plus anything more than 1 hour and i am inpatient. I like the 5 min, as i could trade it during the London market hours, end at 1700 and sleep at night without any trades going on.
This strategy can work i with any timeframe. Generally higher the time frame = less chance of fakeout, greater profit per trade but fewer trades per 24 hour.

BUT Blizard’s new rules change this completly. I don’t want to comment too much about this until we have had a chance to properly test this today. But keeping watching this space

I see but I cant seem to spot any difference in terms of value 3 and value 4 for minibar. Nothing change in the chart whatsoever.

Anyway, I m currently trading m5 chart with EurUsd and GBPUSD… EurUsd managed to close trades with +10 pips but GBPUSD -3pips… Thought maybe it’s the spread problem? FYI, My broker charged me 4pips for a trade in GBPUSD.

So far I have only tried on these few fairs in Demo account. Wondering if it works for other pairs too? Also, I notice that with this system, we have to wait pretty long in order to place next trade if the currency went all the way LONG or short like 50-100pips… Is it my method wrong?

By the way, Thanks for replying again, sandybeach

[sandybeach]

Hey PippinPips

The trend line strategy does work on most pairs. Having a good spread is key. I am using hotforex and their spread for GBPUSD is 2.2 pips right now !!

Low spread is key to this strategy. EURUSD should have most movement and least spread as it is traded most during London market hours.

The minibar 3 and 4 does have a difference, i do promise it, there is not always a big difference but look back on the chart and compare the same EURUSD for minibars 3 and 4 and your see it

No your method is not wrong, if i trade EURUSD i only normall have 1 or 2 trades a day, which is fine for me, but with Blizards new strategy if it works i could have maybe 4 - 6 trades with triple the number of pips that we would of been gained. So you see why i am fascinated by it. More pips, same time.

Just practice, your not doing anything wrong, just ask if you have any questions

But i’ll post more on the results tonight, too early to tell.

[sandybeach]

No worries :), ill let you in on a secret i did the same yhing when i first saw This strategy

[PippinPips]

Hey PippinPips

The trend line strategy does work on most pairs. Having a good spread is key. I am using hotforex and their spread for GBPUSD is 2.2 pips right now !!

Low spread is key to this strategy. EURUSD should have most movement and least spread as it is traded most during London market hours.

The minibar 3 and 4 does have a difference, i do promise it, there is not always a big difference but look back on the chart and compare the same EURUSD for minibars 3 and 4 and your see it

No your method is not wrong, if i trade EURUSD i only normall have 1 or 2 trades a day, which is fine for me, but with Blizards new strategy if it works i could have maybe 4 - 6 trades with triple the number of pips that we would of been gained. So you see why i am fascinated by it. More pips, same time.

Just practice, your not doing anything wrong, just ask if you have any questions

But i’ll post more on the results tonight, too early to tell.

Thanks Sandybeach. You have been really helpful to newbie like me.

So how does Blizard’s new strategy works? Hope you can tell me a bit because currently I m trying the first method in first post but as I told you, it takes a wee bit of waiting time. As such, I would like to try another method during the waiting period. Hope you dont mind

Oh also, do you happen to know any other broker with lower spreads?

Thanks in advance. Have a nice day

[sandybeach]

Well the new method is not 100% defined yet, i do believe Blizard had it nailed first time round But it needs testing to optimise it and we need to make sure were doing the same thing to ensure were not fluking things.

Take a look at post 471 onwards on this thread, it gives all the details.

The basics is that by the dot forming outside of the bollinger band, the idea is that the price will always retract to the middle of the bollinger band, so by us entering when the dot is outside the band (with the second OsMA indicator), the price retracts and bounces in the other direction.

It allows us to enter more near the beginning of the trend and exiting more towards the bottom.

Im going to post my setups for today so everyone can take a look and comment. I am hoping me and Blizard have had similar results today, this would be very positive that this new modification works

Hey im a newbie also Just 6 months further along that you lol. Best advice watch the charts as much as you can, just EURUSD, so you can get used to what happens at what time of day !! and what happens when major news releases happen. Thats what i do

[sandybeach]

Ok guys these are my setups from today with EURUSD, 5 Min with minibars=“4”, also my my MT4 is GMT+2

The green arrows indicate sells trades which would have been indicated, blue buy trades and the yellow stars are the exits.

Trade 1 = Sell = +40 pips
Trade 2 = Buy = +12 pips
Trade 3 = Sell = +12 pips
Trade 4 = Buy = +30 pips
Trade 5 = Sell = +9 pips

These are all aprox, but not bad, aprox 103 pips.

If you notice for my second trade and last trade, both exited early (as per the rules were using at the moment), with a profit, but we could of let them go on longer to gain more profit. Perhaps this is where Fibonacci and Pivots would come into play to allow us to see its safe to let the trade go on for longer?

Blizard how did you get on today?

[blizard]

Hi Sandy, same results. 75-100 pips with all of 5 minute setups. None of my 1 hour entries were triggered today. I think you’re onto something with the 2nd candle confirmation on the OSMA SandyBeach.

thanks

[sandybeach]

Awesome thanks for confirming Blizard. It looks like you have done it again !

Also with the trend line strategy i did have a trigger on the 1 hour chart at 22.00 on the 23rd to 1600 on the 24th. for aprox 30 pips.

I take my hat off to you Your next challenge if you dare accept, make your system even simpler lol.

I pinched this screenshot from here:

How to Trade a Bollinger Band Reversal Strategy | eToro Online Forex Trading

What is interesting which i noticed works for yours as well, if get candles closing on breaching the edges of the bollinger bands, it can be an indicator the trend is going to continue in that direction.

Blizard look at your last sell trade, the candles breach the bottom of the bollinger band, so if we had let it go further we could of let it drop until we got green on the OsMA.

I guess if we wanted to double the trades we get, we could take trades which match the trend line strategy and which match this new one?

It would double our trades and hedge things a bit?

Or is this too complicated?

[sandybeach]

Blizard can you confirm one thing for me please?

With the new system are using the pivots and Fibs the same way as you would use them for the original strategy on page 1?

Thanks

[franckyz]

Hi,
I tryed the new rules “horizontal strategy” since few days with succes (but loss too…).
So, i see, you have modify your strategy with BB and OSMA.
I will try this tommorow on EURUSD.
If i understand, enter trade when ZZ point is out of BBand and Osma Color change ?
For ZZ, minibars for 4, what are the settings for Bband ?
Thks

(sorry for my bad english)

[blizard]

Hi SandyBeach, im no longer using any pivots or fibs. I feel the candles do the talking and the true support / resistance levels will show up anyways. I found that i would often cut my profits too short because the price was approaching a fib or pivot and the price would carry on past. In my opinion, they just complicate the system more than help.

thanks

[blizard]

Hi Franckyz, the BB setting are the default 20,2,0. Im currently using Minbars 3. But the 4 settings work just as well im sure. We haven’t really changed the trend line strategy. The only modification is with Higher Highs or Lower Lows of swing_ZZ dot, you draw the horizontal lines to indicate the support ans resistance levels.

The “Band” system helps to also catch tops and bottoms while we wait for the trend-line breaks. I hope that helps

thanks

[sandybeach]

Hi guys, sorry Blizard forgot to say yes my Bolinger Bands are default settings (20,2,0).

Just to clarify this is what i am doing for the Band System to enter and exit trades.

This is on top of trading the breakouts as mentioned before

So if i am correct to assume we are trading both methods

Entry for a Sell:

1. Swing ZZ dot must close outside Bolinger Band line
2. OsMA must change colour, enter trade on the openning of the candle that appears on the 2nd dark candle as in

“hotforex-demo446.gif”

Current OSMA is light green, should then change to dark green, wait for second dark green bar for confirmation.

3. Enter Trade.

Exit for a sell:

1. OsMA changes to light red, then it should goto dark red bar, when second OsMA bar is dark red, close trade.

Lets see how we get on tomorrow

[blizard]

thanks for the clarification SandyBeach, you are exactly correct.

[sandybeach]

Also some food for thought with this new strategy, take a look below, my MT4 is GMT+2 hours. Notice how the OsMA is not lining up exactly like it was during the day?

During the nights movement is slower, but i think we need to be a little careful when their not lining up, maybe if the OsMA does not give us the right colourings for say 4 bars we dont enter on that dot. So if we are buying and we dont have any light red / dark red OsMA like below. Would be safer, but we would of missed out on a nice trade below:

As a 24/7 strategy this works nice, but i think we need to be careful of the dead zone between 000 and 0500 and quiet periods like what friday is showing us, but were see how friday holds up for us later

[PippinPips]

@sandybeach

Ok guys these are my setups from today with EURUSD, 5 Min with minibars=“4”, also my my MT4 is GMT+2

The green arrows indicate sells trades which would have been indicated, blue buy trades and the yellow stars are the exits.

Trade 1 = Sell = +40 pips
Trade 2 = Buy = +12 pips
Trade 3 = Sell = +12 pips
Trade 4 = Buy = +30 pips
Trade 5 = Sell = +9 pips

These are all aprox, but not bad, aprox 103 pips.

If you notice for my second trade and last trade, both exited early (as per the rules were using at the moment), with a profit, but we could of let them go on longer to gain more profit. Perhaps this is where Fibonacci and Pivots would come into play to allow us to see its safe to let the trade go on for longer?

Blizard how did you get on today?

Wow. Awesome. Where can I get this bollinger band and OSMA thingy? I cant find it in my MT4