The Most Profitable Trading Pattern You Will Ever Encounter

[PhilipPirrip]

As for a long trade would the GBPAUD qualify looking back around 3 candles from the close for the week?sorry Phil for these questions I’m just trying to wrap my head around your system.
If these are not valid signals can you please let me know where I am getting it wrong thanks

Both are valid signals. However this is a day trading signal. So since the day ended, the signal has expired as well.

[ItchyMojo]

Thank you for your second question as its something I have been thinking about. The stop loss is a close beyond the 20 EMA. Or a close below the reached before the entry.

Now the scenario you mentioned is something that bothers me as well. Since we are day trading I would say set a profit target of 20 pips and run. This reduces the chance of the dreaded scenario.

Please be so kind as to clarify the second sentence underlined in red.

[PhilipPirrip]

Hi Philip and other respected traders, i am new here and have been following this threads for a month and it had helped me a lot with my trading though it still need a lot of tune up and polishing. I admit that the original 4 hour system is very accurate and profitable. But i am much interested in the new 1 hour system. I have a question with regards to the 2 stochastic oscillators. What if we reverse the process, instead of waiting the stochastic A to reach oversold area for short, what if we take short position during stochastic A cross from overbought area, and stochastic B already in oversold region. From my observation and analysis, this seems to be more profitable and give more pips. Sorry if this deviates from the original system but just asking fellow traders opinion if the set up i suggest is valid.

It sounds interesting. Where would you place the stops?

[weenzah231]

It sounds interesting. Where would you place the stops?

I myself still wonder and analysing on where to place the stoploss…as for the take profit, it would be when stochastic A reach oversold area for short and overbought area for long. Do you have any opinion on this? Using this system so far, it had give me some green pips. Thanks again for your generousity Philip.

[harissi]

This is just amazing the information is very useful and it really helps a lot i wish i can benefit from this on the long run .

[chiniebwoy]

Morning Philip,
let me join in with everyone else in thanking you for this wonderful thread. You are a good man.
I read your 1 hour system over the weekend and was able to snag 40 pips on the GBPCHF pair. Thank you.
I di miss however, the set up on the EURAUD, EURCAD pairs. I think that’s one of the drawbacks for me with this system. If you are not monitoring charts on an hourly basis, you will miss a few trades.
On the 4hour charts, I’m monitoring the AUDCAD, AUDCHF and EURAUD pairs.
David

[CoinEclipse]

Hey there. I tried to create an EA to backtest this strategy. However, I’m really stuck due to my limited experience. Has anybody been able to succesfully code this? I don’t know how to do it because only 1 order can trigger every cross.

Heres what I created thus far.

if(fast>slow && fastprevious<slowprevious) bcrossovercount++;

bool uptrend=false;
if(fast>slow) uptrend=true;
if(fast<=slow)uptrend=false;

bool boverbought=false;
if(0<bcrossovercount<2 && stocurrent>stocupperlimit && stosignalcurr>stocupperlimit) boverbought=true;
if(stocurrent<stocupperlimit && stosignalcurr<stocupperlimit) boverbought=false;

if(boverbought=true && 0<bcrossovercount<2 && stocurrent<stocupperlimit && stoprevious>stocupperlimit) bdowncrosscount++;

bool boversold=false;
if(0<bcrossovercount<2 && 0<bdowncrosscount<2 && stocurrent<stoclowerlimit && stosignalcurr<stoclowerlimit) boversold=true;
if(stocurrent>stoclowerlimit && stosignalcurr>stoclowerlimit) boversold=false;

if(boversold=true && stocurrent>stoclowerlimit && stoprevious<stoclowerlimit) bupcrosscount++;

if(uptrend=true && stocurrent>stoclowerlimit && stoprevious<stoclowerlimit && 0<bcrossovercount<2 && 0<bdowncrosscount<2 && 0<bupcrosscount<2)
{
res=OrderSend(Symbol(),OP_BUY,LotsOptimized(),Ask,3,slb,0,"",MAGICMA,0,Blue);
return;
}

[SteVeXX]

FAILED PATTERN: AUD/CAD-4H

1. On 29th we got a trend change (cross of EMA) - UpTrend
2. On the 3rd we got a BUY signal. Cross in undersell
3. A few hours later the EMA’s crossed again so we got an invalid signal / trade

I didn’t manually close the trade when at the first green pinbar on the 6th because it’s against the rules.
We need to wait until we get a SELL (opposite signal)

So I waited until the 9th (#4) to get that SELL signal and manually closed the trade with a bigger loss, at about 50% of the Fibonacci, even when İ could manually close a few days earlier at about 90% Fibonacci. My loss would have been a lot less.

My 2 questions:

1. Did I handle this trade correct, following the rules ?
2. Why do you wait until we get an opposite signal, and not when there is a trend change ?
   Is there a bigger chance that there will follow again an UP trend, without getting a SELL signal ?
   In that case: do we stay in the trade or do we cancel too when we get a 2nd trend change (up again)?

[onomse]

Anyone watching gu, gj and gc?

[onomse]

@SteVeXX

FAILED PATTERN: AUD/CAD-4H

1. On 29th we got a trend change (cross of EMA) - UpTrend
2. On the 3rd we got a BUY signal. Cross in undersell
3. A few hours later the EMA’s crossed again so we got an invalid signal / trade

I didn’t manually close the trade when at the first green pinbar on the 6th because it’s against the rules.
We need to wait until we get a SELL (opposite signal)

So I waited until the 9th (#4) to get that SELL signal and manually closed the trade with a bigger loss, at about 50% of the Fibonacci, even when İ could manually close a few days earlier at about 90% Fibonacci. My loss would have been a lot less.

My 2 questions:

1. Did I handle this trade correct, following the rules ?
2. Why do you wait until we get an opposite signal, and not when there is a trend change ?
   Is there a bigger chance that there will follow again an UP trend, without getting a SELL signal ?
   In that case: do we stay in the trade or do we cancel too when we get a 2nd trend change (up again)?

Philip’s strategy works best when market is in a trend, audcad doesn’t appear to be in a trend, more range bound…
Hope this helps

[ananora23]

@SteVeXX

FAILED PATTERN: AUD/CAD-4H

1. On 29th we got a trend change (cross of EMA) - UpTrend
2. On the 3rd we got a BUY signal. Cross in undersell
3. A few hours later the EMA’s crossed again so we got an invalid signal / trade

I didn’t manually close the trade when at the first green pinbar on the 6th because it’s against the rules.
We need to wait until we get a SELL (opposite signal)

So I waited until the 9th (#4) to get that SELL signal and manually closed the trade with a bigger loss, at about 50% of the Fibonacci, even when İ could manually close a few days earlier at about 90% Fibonacci. My loss would have been a lot less.

My 2 questions:

1. Did I handle this trade correct, following the rules ?
2. Why do you wait until we get an opposite signal, and not when there is a trend change ?
   Is there a bigger chance that there will follow again an UP trend, without getting a SELL signal ?
   In that case: do we stay in the trade or do we cancel too when we get a 2nd trend change (up again)?

Hi SteVexx,
I suggest you include RSI readings to make your entry decisions…a very useful feature St Philips :51: developed in collaboration with many forum members here. So at the time you entered in this trade and if I am not mistaken the RSI was around 46… that alone is a clear indication that the uptrend is weak and should have somewhat deter you from entering.
I hope this helps

[PhilipPirrip]

@SteVeXX

FAILED PATTERN: AUD/CAD-4H

1. On 29th we got a trend change (cross of EMA) - UpTrend
2. On the 3rd we got a BUY signal. Cross in undersell
3. A few hours later the EMA’s crossed again so we got an invalid signal / trade

I didn’t manually close the trade when at the first green pinbar on the 6th because it’s against the rules.
We need to wait until we get a SELL (opposite signal)

So I waited until the 9th (#4) to get that SELL signal and manually closed the trade with a bigger loss, at about 50% of the Fibonacci, even when İ could manually close a few days earlier at about 90% Fibonacci. My loss would have been a lot less.

My 2 questions:

1. Did I handle this trade correct, following the rules ?
2. Why do you wait until we get an opposite signal, and not when there is a trend change ?
   Is there a bigger chance that there will follow again an UP trend, without getting a SELL signal ?
   In that case: do we stay in the trade or do we cancel too when we get a 2nd trend change (up again)?

Hey Steve. You did well and I’m sorry the trade didn’t work out for you.
If I were you, I would listen to ananora23 about the RSI. Had you used it, you would have known this particular trade was destined for failure.

On Onomse I’m hoping to find someone to write the system in Calgo. Once that done I will (again) run tests on each pair individually so I can tell you which pairs (historically have a good success rate). Because I know from the previous test that AUDCAD in particular was never good to trade. In contrast AUDCHF for instance was one of the better trades.

[BBalazs]

Would somebody be so kind to summarize the rules for the 4H strategy? The thread has over 130 pages, and frankly, I don’t want to bother reading through everything I just want to make an indicator in TradingView which displays the buy and sell signals.

[ForexForte]

[QUOTE=“BBalazs;710366”]Would somebody be so kind to summarize the rules for the 4H strategy? The thread has over 130 pages, and frankly, I don’t want to bother reading through everything I just want to make an indicator in TradingView which displays the buy and sell signals.[/QUOTE]

No, quit being lazy and put the work in.

No wonder ~95% of traders fail.

[PhilipPirrip]

No, quit being lazy and put the work in.

No wonder ~95% of traders fail.

We should not be rude to one another. BBlazs happens to be one of the good friends of mine and I don’t appreciate that.

[PhilipPirrip]

Would somebody be so kind to summarize the rules for the 4H strategy? The thread has over 130 pages, and frankly, I don’t want to bother reading through everything I just want to make an indicator in TradingView which displays the buy and sell signals.

Yes BB the idea is very simple. Although I’m not sure how the indicator will work.

Basically we use the 20 and 50 EMA, stochastic and the RSI. There are four steps required to enter a trade. I will tell you what they are for a buy and you just reverse them for a sell.

1. 20 EMA crosses above 50 EMA.
2. We wait for stochastic to get [B]oversold[/B]
3. we wait for the %K to cross above the % K.
4. We check that the RSI value is not below 40. (For a sell we check the RSI value is not above 60).

You then buy.

If you can create it with C++ or at least know books or website that can help me write it I will be indebted to you. I want that so I can backtest the data and tell you guys how different pairs fared historically with the system.

[inminorchords]

Hi Guys

Just looking at the MYFXBOOK stats, does this mean the system has been failing the past few months, the results don’t look good?

[BBalazs]

No, quit being lazy and put the work in.

No wonder ~95% of traders fail.

Thank you for the invaluable advice.

[BBalazs]

Yes BB the idea is very simple. Although I’m not sure how the indicator will work.

Basically we use the 20 and 50 EMA, stochastic and the RSI. There are four steps required to enter a trade. I will tell you what they are for a buy and you just reverse them for a sell.

1. 20 EMA crosses above 50 EMA.
2. We wait for stochastic to get [B]oversold[/B]
3. we wait for the %K to cross above the % K.
4. We check that the RSI value is not below 40. (For a sell we check the RSI value is not above 60).

You then buy.

If you can create it with C++ or at least know books or website that can help me write it I will be indebted to you. I want that so I can backtest the data and tell you guys how different pairs fared historically with the system.

I’m currently learning C++ programming. Are you using MT4 or CTrader? It shouldn’t be too difficult, but I promise nothing until September. Thank you for the rules, I’ll get to work

[BBalazs]

A couple of questions though. Does both line of the Stochastic has to be in the overextended zone for the signal to be valid? Are you using fast or smoothed Stochastic?