@phillippirrp i feel some people are getting off this system due to current non-trending markets. Thats the nature of herds.
Well i want to ask 3 questions:
Have you tried other stochs setting , or to say, how you arrived at 14,3,1? Y not 5.3.3 or 14.3.3 etc.
Same for ma combo u use. Y not 50/100 etc?
It seems that in range bound market. 1h would offer more trades with lower tp targets ( in terms of pips). But would a trend trade first inialize in 1h rather than 4h. U say with time frames below 4h whipsaws increase. How less effective is 1h as compare to 4h. To me 1h seems gud.
Iām showing a chart with the 200 MA and 100 MA instead of my usual 20 and 50 EMA. The 20 EMA and 50 EMA have crossed upwards. Stoch is yet to reach oversold.
The interesting thing about this chart is that the 200 MA for the 1 hr, 4hr and daily time frame are all clustered on that purple dotted line. This gives me the impression that stoch will get oversold at that area and we can buy there. This seems a high probability trade to me.
Anyways, there are also GBPNZD long and NZDCAD short that Iām looking at but Iām probably going to go for GBPJPY.
To further add to Philā¦ You/we shouldnāt get too stuck up with the settings. Experimenting is the way to go.
What we have here is a system that is based on 2 moving averages and an oscillator, that is the āframeworkā to build upon.
Trading with 5,3,3 or 14,3,1 doesnāt matter much to your bottom line P/L as long as you stick to the āframeworkā rules of buying the dips in a rally identified when shorter ema > longer ema or vice versa. (I have chosen to trade with 5,3,3 because its easier on the eyes and the fact that I incorporate divergence into the system as well). So its simply a matter of choice.
Same goes with time frames as well. I distinctly remember taking my first Gold trade on a 30mins chart, early into this thread. It worked like a charm allowing me to ride close to $5 worth of a move.
So, if it of any help, you/we could either trade the system as is or modify the changes within the āframeworkā to suit oneās style.
this really isnāt a trend following strategy, its more of a swing trading set up, or a retracement set up. I agree that it can be used more effectively in trending markets but you donāt really address trendsā¦ at least not in the first several posts outlining the strategy. I like it, I like stochastic, its basically what I do toā¦ the thing is that stochastic almost never retraces back all the way to the os/ob level when the market is trending, there are lots of dips, troughs and peaksā¦ all tradable in a trend following environment. I would expect to see stochastic move from one extreme to the other in a range bound environment, I add support resistance to my stochastic and use signals that build off of those levels.
I believed that if people got read this thread from beginning to end will notice that got one member share his modified strategy into 1H chart. i done it into a EA presentation.pdf (1.31 MB). Can anyone help me test on it?
Because i got rare time to test it manually and it required much eyeballing on the chart.
If anyone can make it into EA to test will be better.
i also want to ask you, the stochastic line crossed signal line whether in OB or OS, are you going to wait that particular time frame closed then entry the position?
Your modification to this method looks interesting at the first glance.
To summarize, you wait for H4 to give a sell via EMAās and then go to H1 to trade when Stochs also confirm the signal.
This should work out pretty decently in my opinion. Eyeballed a few trades and found them to work out quite nicely. Of course it requires a bit more attention to details.
But good stuff nonetheless and thanks for sharing it.
Yes it does required too much eyeballing.
I personally eyeballing all pairs, and very hard to strictly follow the rules.
Today i follow my rules to entry EURJPY, earned 120pips.
And more to go on others pairs.
It does have failed pattern, therefore minimized loss at 30pips.
Could you post some examples of failed trades.
The way I would trade this method is to stick by philās method when looking to H1 (trading in the direction of H4). Therefore, failed trades would be most likely recovered as long as the system rules are follows.
Let me know so I can see how the failed trades can be reduced.
As this strategy is a trend following method as Philipās does,
From what i know, there are only two factors will causes failed pattern.
News release in opposite of trend.
sticky price level.
Others than these, i believed trend wouldnāt go too far.
i tested on 50 pips, but its too much.
Based on my eyeballing on demo, pips less than -30 still have the chance to reverse into positive trend.
Therefore, I set SL at 30pips to prove a failed pattern
But this strategy is safe when News release in opposite of trend due to SL of 30 pips.
(not consider those news have 1 second 100+pips movement effect, system wouldnāt be fast enough to close trade at 30pips)
The dangerous part is sticky prices level.
You can refer to my presentation page 9,10,11, the price level is fluctuate and loss at high pips.
My presentation is ideally trade based on EA (Reduce eyeballing effort).
Robot will only do what is set (Stochastic crossed signal).
Therefore, every points when stochastic crossed signal line it will entry long/short.
This will cause huge loss when price is sticky.
Philipās method is target long period, long holding and high pips.
I modify it into short period, small profit with risk minimized.
I targeting on constant small profit rather than big shot.
Because iām very little experience in forex, therefore i needed people to assist to make this strategy works.
Thank you for this forum and all of your posts. It took me days to read the thread and somewhat understand what was being written (I have never traded forex before and am very new to this). So please be patient when I say things that have been said already. I have just created a practice account with Oanda and browsed some currencies looking for setups. I was wondering if this is a potential trade and if I drew the fibonacci retracement in the correct places. (The low before the EMA crossover and the high after the EMA crossover). Also, do you draw retracement from current to past or past to current? Apologies I know this has been answered already, but I have forgot where it was written. Here is the screenshot
GBP/JPY
Yes its a valid trade, one Iām looking to take next week myself. So you are doing well. The fibs are perfect but you should draw the extension levels: 127.2, 161.8, 200, 261.8, 3, 3.618, 4, 4.618ā¦
Thank you PhilipPirrip. Iāve spent a lot of time reading yours and everyone elseās posts so your reply means a lot to me. For some reason Iāve tried but canāt change the extension levels. Oanda automatically sets the numbers to 0, .236, .382, .5, .618, 1, 1.618, 2.618, 4.236 and I canāt change or modify them to match your numbers. Iāll have to research on how to do this. Thank you very much again.
hi, iām also interested in 1 hour trading of this strategy, could you please share the ppt here so we can all view and learn from it?
Thanks in advance!
