I just watched your 2nd video on youtube “The finest in trend trading”. I thought it was very interesting…I’ve watched all of your other videos also. I’ve watched a few tutorial videos to try to learn to back test with MT4 but they don’t look and act like yours. I would like to ask you to do a video on how to do such a back test…with all the settings and everything. Or perhaps point us to the video that has already been created. I think that would be a great addition to our trading tools. Thank you very much.
I agree with PTB the more videos the better. I couldn’t get it to trade on the trendline. LOL I couldn’t get it to trade on the backtest at all.
Looking forward to learning more about BB DNA and the improved trading idea brought to us by graviton!
Thank you Loppan and Graviton for your cat posts!!
I will now show the final long trend diagram >>>
Explanation
This diagram appears complex but it is really very simple.
To save space, I have shown every major wave as a single dark blue line.
The red sections are the little waves superimposed on the major waves.
There are 7 major waves forming a trend of going up the beach.
After that there is a retracement and the cycle starts again.
Here we see many cycles because the tide is going out and hence the cycles form a trend of going out.
So…
The red little waves are the very short timeframe. (15 second trend)
The blue major waves are the medium timeframe. (20 minute trend)
The cycles (tide) is the long timeframe. (6 hour trend).
The blue major waves are showing a trend up the beach (7th wave is highest).
This represents going LONG.
The blue major wave cycles (tide) is going out.
This represents going SHORT.
Analysis
If you traded the major wave timeframe (20 min), you would be guided by the tide timeframe (6 hour).
Then you could enter at point B or if you are clever, enter at point C.
Then as the water goes out, point R becomes a retracement point which is expected to happen.
You would then exit at either points D or E or any of the waves after that.
You would be trading SHORT and you would make a profit.
You would stay in the trend for 6 hours.
Now if you traded the little wave timeframe (15 seconds), you would be guided by the major wave timeframe (20 min).
Then you could enter at point B or if you are clever, enter at point A.
You would then exit at point C.
You would be trading LONG and you would make a profit.
You would stay in the trend for 20 minutes.
Finally (not recommended), you could trade the little wave timeframe (15 second) and be guided by the tide timeframe (6 hour).
In that case, you could enter at points A or B, stay in the trade for 6 hours and exit at points D or E.
You would expect strong retracements along the way (point R).
You would be trading SHORT and make a profit.
From this set of diagrams we can set some rules for trading trends…
[B]When choosing a home timeframe to trade with, always choose a timeframe 4X-6X greater to tell you which way to trade.
Stay in the trade for a time equal to the length of the higher timeframe.
To do this we are depending upon the axiom - the trend is your friend.
We assume that the probability of the trend reversing during our trade is low.
If, however, upon entering, the trend in the higher timeframe suddenly reverses, we can expect our stoploss to be hit.[/B]
Hopefully, these rules help to remove the confusion when looking at all the timeframes and seeing conflicting trends.
Remember, in theory, there are an infinite number of timeframes!! :eek: :eek: :eek:
Now to the task of developing a 5 stage entry method for the GFT and similar platforms where the entries are averaged.
I am going to do this tomorrow because I am feeling quite sick right now.
I have already developed the approach on paper so it should not be difficult to post it as a method here.
Just before I finish for tonight, I would like to answer that post regarding the chart showing the many timeframe charts below it.
This is easily done with the GFT platform as a standard practice.
You simply take one chart, put the BB on it, then copy/paste it many times and change the timeframes to finish.
Here it is >>>
Very succinctly stated Tymen. I don’t have any questions or anything to add. Hopefully others will have good questions as we proceed as I often learn from others good questions. Hope you feel better soon.
A Huge WELCOME Back Tymen
I am enjoying great success with the BB DNA method and like to learn more about both the methods
The decision about the methods is good, It will certainly improve overall trading
GREAT START WITH NEW APPROACH…
Great to have you back and a big thanks
Glad you had a safe move Tymen, and welcome back.
Unfortunately, I have been working hard getting the land ready for seeding, and haven’t had time to do any major amount of demo trading. So, I can’t say whether it’s a success or failure. However, in the trades I have taken, The entry method is usually quite successful, but I must work more on discipline on the exit.
If I may, I have several cats on the farm. I call one Goof. He always follows me around like a dog would. Comes when called, gets in my way, and does silly things repeatedly. For example, he is constantly jumping on drops of cutting fluid that fly off the metal cutting bandsaw. Then he shakes his paw off because it just got wet. Or, he’ll climb on my chest and sit there wile I"m doing mechanical work underneath machinery. He then goes and lays down in the grease or oil on the floor, and then gets mad about it being there, and he gets even madder when I have to bath him, and soap the oil and grease off of him. He doesn’t seem to learn. but for some reason, he’s a lovable cat.
I’m glad you found some people to go to church with, and I hope it works wonderfully for you.
I was thinking about something the other day as I was riding aroudn in the tractor. I have a number of books on tape, and listen to them a lot. Perhaps these two books might help some people with trading. The Science of Getting Rich, and Pycho-cybernetics. Just a thought that I was thinking…
Also, people doing trading should buy an uninterpretable power supply, or battery backup, and plug all their internet equipment, and computer into it, or get a few and plug one battery backup into the other. Not only will it protect your trading account, it will keep your computer from possibly being damaged as well… For trading, a computer is a very important tool, and it should be treated like a fine tool with all the protections of one…
Have a most wonderful day!!! Thanks you for sharing.
Hi tymen,
I wish you feel better soon.
Once you do, would you mind to replace A B C D E and R to the real money chart,
looking at your pretty diagrams cant imagine anything then a beach.
btw, I dont have any cats, there is no such money that can make cat talk :rolleyes:
Good to see that your back Tymen. Have been using the 2 contract strategy on the 4hr timeframe along with the 2 candle CBL strategy for entries for some weeks now on my live account with an 80% win rate(using micro lots by the way). I use GFT also as a broker and welcome any suggestions that will further improve the management of trades. I did some demo ing with the “trailing out” order type option when setting up a stop buy/sell but its a little tricky. Very interested in your opinion here.
Best wishes always
Paul
Thank you to [B]Sijeeva, Amosfella, Paulmccarthy [/B]and [B]RenaLa [/B]for the welcomes.
I see, Amosfella, that you are a farmer - yes, that’s the type of area I have moved into - just starting to experience some of the things you talk about.
I like your cat experiences.
My one cat likes to sleep on top of me while I am sleeping!!
Hello Tymen, I thought it was about time for me to stop lurking and post a message to thank you for your time and effort with this thread.
I have read the thread from start to finish and I can’t wait to see what other great lessons you have got planned for us. I have also been following Graviton’s thread and been in the excellent chat room set up by MP I think?
I am new to forex (6 months) and i can honestly say that i have been shown stratagies and methods on these 2 threads that have changed the way i think about forex trading.
I read a post somewhere on here or Grav’s thread about playing an active part makes the learning process better, so i will try and be as active as possible here but please go easy on a noob as i WILL get things wrong!
Good to see you back
Now I have read all the posts from yesterday, commencing with the one of [B]Graviton[/B].
Despite my recovery from illness last night, I am, unfortunately, doing very little posting right now. :o :o
This is because I am still settling in.
Tonight I arranged correct lighting over my computer - very important.
Yes, Amosfella, I understand what you are saying about surge protection and a backup power supply - I am working on both.
I will attempt to put in more time tomorrow as things settle down here.
[B]Here are some important points to note for now…[/B]
As regards the Bollinger DNA method, I say to [U]only trade[/U] [U]with the trend.[/U]
DO NOT counter trade the trend.
This means you must [U]wait for a BB squeeze area,[/U] then wait for an extreme candle.
The CBL entry method I prefer is to use[U] 2 candles[/U] (except when the 2nd CBL candle is bigger than the extreme candle - then use only one).
I usually enter when the price action crosses the CBL - I do not wait for a close.
Waiting for the close could result in the price action [U]too close [/U]to the mid BB to be of any use.
However, if you do prefer waiting for the close (recommended by Darryl Guppy), then be consistent and do that all the time.
Going to a timeframe [U]lower than your home timeframe[/U] to effect an entry is fraught with danger.
You may get an entry on the lower timeframe but on your home timeframe no such entry is indicated.
Thus you could end up hitting a stop loss instead.
All of the 4 types of price action - OO, OBB, OM and the untradeable RO, can occur on the BB squeezes.
So… it is possible for the price action to hit the mid BB only, then retrace. (OM, then RO).
Or it can just hit the opposite outer band. (OO).
Or it can walk the opposite outer band. (OBB).
[U]These are the trades to take.[/U]
[U]The trades to avoid[/U] are the ones where you wait for an entry as the price action walks the BB in what appears to be a bubble.
It may be a bubble [U]or it may not[/U]…and turn out to be a sausage instead - in which case you lose.
I developed the single candle CBL using a close and smaller candle to try to discriminate between a BB bubble and a BB sausage.
A lot of the time this works.
But you only need a few times [U]when it does not work[/U] to ruin your trading, and the resulting losses will set you well back.
[B]So, therefore, avoid, trading from these BB walks - this is counter trend trading and gives poor results.[/B]
With 4 majors and other favourite pairs to trade, and umpteen timeframes to trade those pairs, [U]there is sure[/U] to be a squeeze happening somewhere [U]anytime[/U] you open your charts.
So trade those squeezes and nothing else.
[B]In addition, use the rules given in blue above to determine the trend.[/B]
DO NOT set a CBL and enter in a squeeze where the CBL causes you to trade against the trend set in the higher timeframe.
[B]This should just about wrap up the rules for trading the Bollinger DNA method.[/B]
Tomorrow I will try to set up the GFT 5 contract entry method as per [B]Graviton’s [/B]inspirations.
This will cater for the averaging of the entries which the GFT and other platforms do.
This method is very subject to you trading with the trend.
It should, therefore, work very well with the macro method to be explained fully later.
Yes, this was on my thread - I stated this because I am a school teacher and understand fully the significance of audience participation.
That is why we do maths exercises!!
A good decision you have made to participate!!
No worries being a “noob” - all my students at school were “noobs”!!
tymen, I have a question
when you trade on the daily charts do you use 2 CBL method to enter? how do you set SL ?
Sometimes (in case of sausage) retracement doesn’t touch the Middle Band so it will turn against you
I don’t trade the daily as such but rather use it as a higher timeframe to determine trend.
In any case, yes, you would use the 2 CBL method to enter.
The stop loss is set at the extreme wick point away from the CBL of the extreme candle.
The number of pips in the stop loss, therefore, varies.
Hi Tymen,
Since the squeeze has become an important part of this method could we have a little refresher, maybe with a chart or 2 on entries in a squeeze?