I’m working on it yes. It is a very simple and effective idea. But I’m just polishing it here and there.
Anyone else take a huge profit on the eur over the weekend? It is going to be an interesting week with the eurozone meetings coming up.
What is your recommendation when it comes to big news events like this.
I.e take the big profit before it corrects itself?
Close out all trades before the news announcements?
Do nothing and trust the system?
Yeah if your in profit take it for sure. Better safe than sorry. If you’re losing however follow the rules of the exit.
Hi Philip,
Do you thing USDCAD is doing uptrend?
Stochastic crossed today morning.
RSI is just nice @ 50.
Very interesting Phillip.
I take it that you mean the 45 EMA on the M5? What parameter on the H1 ATR have you been trialling (15)?
Thanks
Going back to the original system on the 4 hour chart. Looking at AUD/USD it looks like it is going to give a signal in about 1hour 45 minutes. My question is even if the RSI is on the 50 of maybe at 50.5…would you still make the trade? It looks like it’s going to be a nice one.
I don’t see what you are seeing. I see a sell signal that triggered two candles ago with an RSI of 52, so not the greatest.
Now this system is the merger between my original pattern, the stochastic/rsi confirmation and the double stochastic strategy. Now we don’t get too many signals (which is a good thing) but its a high-probability set up.
Now, indicators we will need:
- 20 EMA (rather than the 50 since we are day trading and looking for the stronger moves)
- Stochastic A. Settings are 50, 5, 10. Overbought at 70, Oversold at 30
- Stochastic B. Settings are 5,2,2. Overbought at 80, Oversold at 20.
For longs:
- Price should be above 20 EMA.
- Stochastic A should be Overbought.
Now the signal is triggered when Stochastic B moves to oversold, then the main signal line crosses above its MA. If stochastic A is still overbought and price is closed above the 20 EMA you enter.
Exit: The first candle close in the Overbought territory of Stochastic B. Just take the pips and run.
Sell signals are the exact opposite. Trades can go anywhere from one hour to 10.
I will share charts soon. But for now I rest.
Good system… what time chart? 5 min, 15min, 1hour?
The one hour chart.
Does MA mean the main signal should cross above the 20 level for Stochastic B, in the case of this (long) example?
Every stochastic consists of two lines: the main signal line and the moving average (MA) of the main signal line. You enter when the main signal line crosses above the moving average. I hope its clear.
Cool, should we stick to major pairs, alll pairs or still testing it out?
This is the current week for USDJPY. You see we had a total of three signals, only one was valid.
The two vertical lines mark the area when Stochastic A was oversold. The first signal is the only valid one. Stochastic B gets overbought, the main signal line crosses below its MA. We enter at the close of the candle marked with a red arrow, make 23 pips in two hours and leave.
The second signal is invalid because stochastic B did not get OB (even though the trade made money.)
Now I give out a star to the trader who tells me why the third signal was invalid.
Price needs to be below 20 EMA
Price is about 20EMA
Because the price is ABOVE 20 EMA…now give me my star!! lol.
I couldn’t resist answering lol…although I have been a mute loyal follower for weeks. It is also an opportunity to thank you Philip for all your efforts and most importantly your patience…you should label you strategies as follows:
Saint Philip Strategy #1
Saint Philip Strategy #2 and so on…
Its invalid long because stochastic A was not overbought???/ i guess.
Well just editing this post to thank Philips and ask a babyish question. Should we discard the original daytrading/h1 system (it seems quite good)/how confident are you that this system is better than the original daytrading/h1 system and also applying original 4h system to h1? (u ust have checked this- just asking to share ur thoughts in a little detail as to what makes this system better
Two questions…
Are you using Stop Loss for the new system?
Also, what if you entered a long trade, everything was in line and the Stoch B was oversold and signaled over the MA. My questions is what do you do if Stoch B goes up after you have entered but them falls back down before giving the exit signal (overbought) and actually goes back down to oversold. Also, the candles are now closing below the 20 EMA. Stoch A is remains overbought.
Sorry if that was confusing, but it’s looking like a loser trade.
Well thank you for your question it is a good one. If I would rate the systems, I would do so based on my comfort level rather than their profitability.
The 4 hour system is my favorite. You know 4-8 hours in advance that you are about to enter a trade. This gives you more time to prepare. Its much more relaxed.
The new 1 hour system gives you that on a day-trading basis. You get few signals you take them and make 20 pips or so and take the rest of the day off. The old day trading system is too hectic for me.
So the short answer is you don’t have to discard anything. You need to trade the system that makes you most comfortable. Does that answer your question?