Big guys running stops. I use mental stops only.
Rodney Jay i most say i donāt use stops when i am at home , but if i am out and i leave a trade running i do put a stop. I will say if you take a trade before a major event and your on the wrong side , you run the danger of having the stop been over run. This reason i donāt take trades before a major event , because i was burned too many times before .
That is the thing, I didnāt see any major announcements to trigger those dramatic spikes. I was thinking maybe I missed something.
BTWā¦ there are a couple strong triggers coming up.
EUR/AUD - Long
EUR/NZD - Long
EUR/USD - Long (second trigger)
GBP/NZD - Long
USD/CHF - Short
YES, thank you, I see them. 1:PM could be interesting.
What do you do when you are sleeping ?
Dear Philip
The couples who are ready for sale according to the four-hour chart are:
AUD/CAD
AUD/USD
EUR/JPY
stochastic is already in overbought zone .
We are waiting in the daily chart a bearish candlestick coupled with four-hour graph will give us the level of import of sell order.
I would like and your own opinion
Thank you very much
Dear Philip
Could you explain to me what you mean at this paragraph
<<The rules tell us a month close (lets make it a touch rather than close since this is monthly chart) of the 100% extension moves the stop to breakeven.>>
Thank you very much
Hi Phillip or anyone else that knows,
Can you post which page starts the discussion of your trading system on the 1hr time frame? Thanks.
That would be pg. 129, solo.
Phillip HIā¦
Thank you for sharing your knowledge with us on this platform. I just want to as what do you mean by "enter when stochastic crosses from other extreme"
Regards PC Mkhize
Not too sure if anyone still reading this thread. But after 8 months of tweaking and experimenting of this existing system along the way, I have managed to double my initial investment with a daily drawdown of 20-40%. The basic is still the same, but I tweak the TP, SL and money management to make it work. My method wonāt work if your broker has a margin requirement/call.
I would be interested in hearing about your strategy for SL and TP.
I traded the strategy profitably between June and August. I followed the original entry rules on the 4 Hr chart. I am still experimenting on the exit strategy. I was trading small position size so I would not use a SL and could handle big moves against me. I would prepare to exit my position when the MAās crossed in the opposite direction of my trade. I would not use a TP. I would start trailing a stop once I had a good move in my favor.
It means I buy or sell.
Iām having some silly trouble with the stochastic. Are you using the default MT4 stochastic? I use default and apply it to close/close, with K being 14, since it should be the slowest moving average, D 3 and slowing 1.
I donāt think I understand your question.
Iām not sure which parameters to use for the stochastic. In the first pages you suggested using a 14,3,1, so I guess that the slow moving average is the 14, the fast is 3 and the āslowingā parameter is 1?
Hi Philip,
You say this is the most profitable trading pattern we will encounter, yet I took a look at your fx book and according to that you are big into the negativeā¦?
My entry rules are based on the original entry rules on page 1.
SL - None
TP - Trailing stop, instead of the fib level (FL) as suggested, I used 0.786, 1, 1.272, 1.618, 2, 2.272, 2.618, 3, 3.272 and etc. Set TP at 1.
When the price crosses 0.786 after the end of a 4hr candle, instead of shifting SL to breakeven, I change SL to (price at 0.786 + price at entry point)/2.
Example, if I open buy position at 1.2 and price move above 1.25 (FL - 0.786) after the end of 4hr candle, shift SL to (1.2+1.25)/2 = 1.225.
Shift TP to next level (FL - 1.272).
When the price crosses 1 FL after a 4hr candle, shift SL to 0.786 FL and TP to 1.618 FL.
When the price crosses 1.272 FL after a 4hr candle, shift SL to 1 FL and TP to 2 FL.
And so on.
Sometime trades do close at TP, especially there is a spike within the 4 hrs.
[U]2 Special scenarios to consider.[/U]
- Difference in price at entry point and price at 0.786 is less than 40 pips (30 pips for EURGBP), set TP at 1.272 instead and price have to crosses over 1 FL instead.
- Difference in price at entry point and price at 0.786 (or 1 if you start at the special scenario above) is more than 100 pips (75 pips for EURGBP), when the gain is 100 pips or more after a 4 hr candle, shift SL to above your rollover fee (so that you definitely will gain, Iām able to check the rollover fee accumulated for a particular position, so Iām not sure if your platform can do that, if you cannot, put at 1 pip over breakeven instead).
Once your SL is on the positive side, shift SL by 1 pip positively after every 4 hr candle if price cannot cross over FL. (I got lazy, so I shift 6 pips positive every day instead at a particular time). The idea for this is that if I already have a couple of winning positions, the additional pips gain from this method will be more than enough to cover the rollover fees of the all the positions.
I make this modification because I realised that the initial FL could be few hundreds of pips away, so it is very likely that the price could shift 200 pips in your favour but not crossing FL, and after that drop to 100 pips against you. This will ensure that you will still gain some pips out of it. Rarely you will hit anything that is above 3 FL, so having more FLs in between helps to gain more pips.
There are some TP rules which I follow as well, when I have more than 1 position of the same pair (I donāt have SL, so I open position when the entry is right). But I think itās quite difficult to explain here.
[U][B]Changes to entry when I already have existing position.[/B][/U]
If Iām going to open a position which I already have in the [B][U]same[/U][/B] direction, I only open if the existing position is in a loss, otherwise discard this entry point. Change the FL of the existing positions to the current position (regardless if you open it).
If Iām going to open a position which I already have in the [B][U]opposite[/U][/B] direction, I only open if the existing position is in a loss but I close the existing position if it is gaining pips and discard this entry point.
There are also some money management rules to follow to ensure that your drawdown will never be above 40% at 99.99% of the time.
Itās an interesting strategy but I still finding ways to fine tune it, especially to ensure that I have maximum gain while not have too much free balance. Itās a delicate balance to try to juggle as, if you over expose too much, you wonāt have enough free balance to protect your current positions if there is a wild swing against you. Not foolproof though, I lost 10% due to SL during the wild swing of AUD in August (I was watching movie at that time so I did not check my account!). So other than that, pretty straightforward gain over 8 months of experimenting.
Ok, I was able to figure out what I was doing wrong and finally get the 14,3,1 Stochastic. I had two good trades yesterday on my demo account.
One question: Why do you use these parameters for the stochastic instead of the ādefaultā 5,3,3? Is it just because the 14,3,1 Stochastic works better with the 20 and 50 EMA?
It seems this strategy is not working anymore based on his myfxbook result. Its the same as Miami Billās strategy but he is using MTF-Stoch and it works very much.