The IcYcLoUd TrAdInG SySteM

[BossHoss]

I am on META 4 and don’t see ADX as a abbreviation. Which indicator is this on META 4? Thank you for anyones help.

[Sweet_Pip]

I am on META 4 and don’t see ADX as a abbreviation. Which indicator is this on META 4? Thank you for anyones help.

Hi BossHoss,

It’s full name is the “Average Directional Movement Index” which you should find in your indicators list.

Hope that helps

[virtecs]

Yup money management tips pls.

My only MM technique is to limit my trade size but follow PSAR as exit singal strictly. The stops may be 100 pips away but the size makes it bearable. I then use a daily trend filter to get in the right direction. I want the system to be easy to manage where a trade can be left alone comfortably. I’m up about 500 pips for March.

Anyway, looking at all our posts, this shows that even with the same general system, people have their own styles so entry and exit point is not the same. Very interesting.

the way I’ve been using the Icy system is as follows. Same standard rules…so I only enter a trade if the psar dot is below or above the bb. However, I only enter a trade if rsi(14) is at or crosses the 50 at the location of the 1st psar dot. This weeds out some false signals.

As for money management, I usually set a stop lost between 40-60pips. If it fluctuates more than that, I’ve found it to usually reverse directions. But I keeps pretty good tabs on the market so if I hit my s/l and then reverses again towards the original direction, I can enter.

[jomni]

nice modification there.

[rickylube]

Icycloud system is working good for the last 2 month +1000 pips using a S/L and a limit on the 4H chart. Also using the ADX with the standard system.

Thanks again
Ricky

[jomni]

Currently long USD/JPY (opened April 1st).
Nice start for the month.

[Pip_Daddy]

As for money management, I usually set a stop lost between 40-60pips. If it fluctuates more than that, I’ve found it to usually reverse directions. But I keeps pretty good tabs on the market so if I hit my s/l and then reverses again towards the original direction, I can enter.

Can you be a little more specific as to WHEN you get in the trade. End of the candle that the first dot appeared on, some retracement first, etc.?

Thanks.

[1option]

Has anyone been trading this system lately? Curious to hear results.
Also, has anyone found a good way to differentiate between breakouts and fakeouts. I have noticed a lot of fakeouts lately testing this system.

[dobro]

1option:
I haven’t done too badly EXCEPT I am down over 200 pips for the AUD/USD that I entered last week. Decided I would use only a no-power-disaster situation default 300p SL and this is the result. Have had 3 or 4 small gains but the last 2 days have not shown me any good setups. Using ADX & RSI for extra insurance. Can’t figure what is propping up the AUD, their housing and credit situation is much like ours and they are more commodity dependent than the US. d

[jomni]

yes i’m experiencing fake outs as well during the past week.

[dobro]

yes i’m experiencing fake outs as well during the past week.

J.-
When the Daily TF ADX is trending down, say for 2 days, but the candles show an overall up trend, do you discount one or the other or do you just stay out?
Another question: if you trade 4H, do you still use the Daily for trend or rely more on what the 4H indicators show you?
Obviously I’m having trouble. d.

[virtecs]

Can you be a little more specific as to WHEN you get in the trade. End of the candle that the first dot appeared on, some retracement first, etc.?

Thanks.

I have an EA for PSAR that signals me when a change in sar direction occurs. When this happens I look at RSI. If rsi is VERY close to the 50 or has crossed the 50 then I will enter the trade. I don’t look for the end of the candle or retracement.

The only other references I use to enter a trade is I look at Stoch5,3,3 and MACD(default) to see where the market is there. If rsi is touching 50 but stoch’s look opposite of the direction and macd isn’t strong in that direction I might not enter the trade.

But I almost always enter if the first psar dot lines up with a rsi14 cross.

[Florko]

Can you post the link to the EA that signals the PSAR change? Or, include it here in this thread? I have tried a few others from this site and have had mixed results.
I am following the original rules from Icy (4hour, but using .012 and .12 on PSAR), but like you, like to also see the RSI 14 crossing with the first or second outside PSAR dot. Or, look for the Midddle Bolinger Band to go flat or in the direction of the trade before taking the trade. This seems to cut out some whip saws, especially the ones that happen after there has been a good run in one direction. I try to get in at a price close to the Middle BB on the 4 hour (to take advantage of the retrace), then most of Icy’s recommended pairs seem to go awhile before the opposite dot hits (75-300pips?).

[blackdog]

Hi FLORKO
once you are in the trade do you trail a stoploss or set a target
with maybe fibs.
Thanks

[Florko]

Hey Blackdog,
I understand the theory behind Fibs, but found it too hard to set up on my platform. As measured from the Middle BB, most pairs lately (this could change) are getting around 100 pips. Entering the trade, I will set TP as +100 from the middle BB price at the time that the signal hits. I try to get in as close to Middle BB as possible, and set the SL at -100 from entry price.

A valid signal for me has 2 conditions, first, PSAR dot on or outside the Bolinger bands, then delay the trade until the middle BB is flat or going in the direction of the trade. RSI 14 could work here as well.

As profit develops, then set stop loss price to the current Middle BB price.

Here is a choice, either keep the TP set as original (100 pip from middle BB price at time of valid signal), or remove it and watch for a trendline break (in trending markets). Keep adjusting the SL to the current Middle BB price.
One sign to watch for is when the PSAR dot crosses the Middle BB, the exit is coming soon.

If a new trade appears to be developing in the wrong direction, it crosses and closes on the wrong side of the Middle BB, then I will get out early before the SL is hit.

Setting up rules is easy. Following them can be hard. Keep the choices and decisions to a minimum to prevent confusion. Keep each individual trade to a small percentage of the overall working capital, as there are losers.
The combination of these rules is new to me, so do your own due diligence.

[blackdog]

Thanks for that FLORKO

[naziro]

hello

just curious if any one create an ea for this?

naziro

[grayghost]

@daedalus

I’m not saying this is a bad system or anything but a couple of my trading friends automated this system and ran it on 8 pairs over the past 6 years of historical data… Results weren’t that great. More than half of the pairs lost money and they lost more than the winning pairs.

BUT. That being said, I think there is some good logic behind this system. You’re essentially finding areas of consolidation and trying to get in on the breakout of it. I think with some additional parameters to help gauge the trend, etc… there might be something here.

Keep up the good work guys. If you have ideas on additional filters, etc, let me know and I’ll have them added to the system and relay the results.

I’ve seen a couple of other posts of this ilk. My own experience manually back-trading the Icycloud trading system confirms these opinions that the system needs one or more additional indicators to help gauge the trend and act as filters. The best trend indicators, IMHO, are the ADX and the Ichimoku. Some of you are already using ADX 14; I suspect you might benefit from a longer period, such as 34. A good value for Ichomoku is 7, 22, 44, as there are about 22 trading days in a month; the standard 9, 26, 52 tends to be a little unwieldy. I also think you should move the time frame to the daily chart, where signals are more reliable. You can make up for the lesser number of signals by depending on the greater probability of a win in order to mount larger trade.

The rules for a long entry (obverse for short) would be: Enter long if there are 2 PSAR dots outside the lower Bollinger Band, RSI > 50. ADX > 20 or thereabouts, and price has broken out of the Ichimoku kumo in the direction of the proposed trade. As is hinted by the chart below, this last requirement is the major one that would filter periods of consolidation. Price should also break resistance, either the last high or a recent significant high if that looks more controlling.

[Cowaboi]

I’ve seen a couple of other posts of this ilk. My own experience manually back-trading the Icycloud trading system confirms these opinions that the system needs one or more additional indicators to help gauge the trend and act as filters. The best trend indicators, IMHO, are the ADX and the Ichimoku. Some of you are already using ADX 14; I suspect you might benefit from a longer period, such as 34. A good value for Ichomoku is 7, 22, 44, as there are about 22 trading days in a month; the standard 9, 26, 52 tends to be a little unwieldy. I also think you should move the time frame to the daily chart, where signals are more reliable. You can make up for the lesser number of signals by depending on the greater probability of a win in order to mount larger trade.

The rules for a long entry (obverse for short) would be: Enter long if there are 2 PSAR dots outside the lower Bollinger Band, RSI > 50. ADX > 20 or thereabouts, and price has broken out of the Ichimoku kumo in the direction of the proposed trade. As is hinted by the chart below, this last requirement is the major one that would filter periods of consolidation. Price should also break resistance, either the last high or a recent significant high if that looks more controlling.

Good post. Appreciate you sharing these useful tips Likely to help move the method to a new level imho. Thanks.

[ajs5274]

I have been reading the posts and demo trading the Icycloud system with a few additions.

But that is for another time.

Please can you have a look at my chart and explain to me why my TP was not hit ?

As you can see the white pin bar reached at its lowest point 0.9293 and yet my tp at 0.9300 was not activated.