Hi,
I tries to “backtest” the TW by scrolling into the past and pressing F12 and it seemed like there are rarely valid entries, because reality is very different from the perfect charts shown in the manual… I would still like to trade the system, but it seems like it doesn’t really work in reality… Any tips, suggestion, opinions or experiences ??
Hi regulus, which pair are you looking at, and which timeframe? I am only trading pairs that trend consistently rather than spike randomly, and have lately concentrated only on audusd where I still see lots of entries. I previously traded eurusd, but lately its refused to hold a steady trend so I’ve abandoned it.
There are some weak points in TW that I’d like to improve, and principally its how to deal with trend changes as well as areas that refuse to trend (like AU since the mega-spike last week). Where TW is strongest is with its take-profit signals.
I’ve looked at USDCHF and EURUSD mainly… I think the main Problem is that the Red Trend Signal Line does Crossovers and Trend Changes all the time. It doesn’t really stay above or below the candles.
I have tried different timeframes from 1M to 4H, with 4H i got slightly better results…
What timeframe do you use for AUDUSD??
I use H4 and Daily to establish the basic trend direction, and 15 minute for entries. I try to enter trends in favour of the H4 and Daily’s direction only, and consider a counter-trend trade only if the longer TFs are seriously overbought/sold, in extreme ATR territory and the M15 shows a clear reversal underway.
If the trendsignal is crossing over and under & failing to stay one side of the candles, that simply means there is no trend and you can’t trade it - not using a trend following system anyway. Your only choices are to sit out and wait for trending to resume, or chance your arm at the M5 where shorter intra-day trends might occur if the sideways range is big enough.
On the H4 though AU has been quite easy to follow over the last month or two …
I didn’t mention it on the chart, but you can see the long pullback entry recently just as the trend signal caught up to the candles. It finished with the doomed spike up to 1.035, then the smackdown which saw the signal line cross over. At that point you could have entered short immediately & done very well from it, and right now its pulling back for what may be a short entry point (can’t tell until it starts turning down again - don’t enter while its still wanting to rise).
The indicators in that zip file, I am not able to attach them to my Mt4 chart. What is wrong
Hard to say without more information. Did you follow the steps listed in previous posts?
Adding indicator to chart is not a science. I know how to add indicator to chart. I did the same but when I try to attach indicator to chart, nothing happens.
Is there anything in the Journal? I’m not sure what to suggest as I’ve never had problems & the indicators are pretty simple.
Ok problem solved now. Indicators attached now. Don’t know why they were not adding previously.
Now I will read that manual and I hope it will help a newbie like me to be a better trader
Ok, glad its fixed 
Just to help me in quick glance, Can you tell me which time frame and which pair is best for this system. What is ideal TP and SL .
Thanks
I don’t know that I can give quick answers to any of those questions! The time frame is really whatever you’re comfortable with & suits your personality and the time you can commit to trading. The concepts in the strategy apply equally to the monthly and the M5 timeframes. I am trading AUDUSD as it has the most sustained & non-spiky trending behaviour of any pair that I’ve looked at, but perhaps there’s other choices that are superior.
I have a section in the manual on stop losses, but basically its setting them about an ATR channel width from your entry point and keeping them at that approximate distance as you advance the stops when the price moves in your favour. The distance of the ATR channels will vary a lot based on your timeframe and the amount of volatility in the market.
Lastly taking profit is also covered in detail in the manual. Its a combination of the price reaching extreme atr channels and the rainbow stochastic showing a corresponding extreme oversold/overbought. You can see a clear example in the middle of the screenshot I posted on the previous page, where audusd’s downtrend ended 2 weeks ago. I also watch for the price running into resistance/support that stops the movement, and usually advance the stop closer to the price to protect profits in case of a reverse rather than choosing to exit.
Anyway, have a read of the manual & see if it makes sense
Thanks for your reply as I also like AU as there are less spikes and 1 hour time frame suits me.
Now I am reading the manual and will put questions after reading it.
Downloaded the zip and reading through the pdf and this thread. Looks good so far. Keen to trial it in a demo acct. Looking forward to discussing this more with you all.
I’m trading 15M time frame. What time frame did you use to check if there’s a crossover on trend line/middle line (pink)?
thanks
Hi cldchc,
I’m trading the H4 chart, using it to dictate trend direction (the trend signal line) and the entry points. Beside it I have open a M15 or M5 chart, which I use to try and fine-tune the entries. For instance if H4 says to enter short, I don’t go in if M15 or M5 say its oversold. Instead I wait until M15/M5 look like they’re ready to turn down and then enter, but its H4 that’s telling me what direction to trade and where the pullback entry points are.
I hope that helps! If you’re trading purely off trends on the M15, then you don’t need to refer to another timeframe, unless you check the M5 to fine-tune your entries like I’m doing.
I know I need to simplify this and improve the descriptions in the manual, but I’m still learning as I go
ok perfect. But in your manual i understand you trade 15M and use H4 to check trend. this isn’t right. Is it opposite? Do you trade H4 and check M15 to take best entry point with stocastic?
thanks
Yes, I need to correct the manual. When I wrote it I was trying to use too many timeframes, and the problem with that is when they all disagree with each other. As a result I lost money when AU switched from a downtrend to an uptrend 3 weeks ago, when if I’d stuck with H4 dictating the trend then I’d have done very well.
While you are at it you mentioned adding a section on Wolf Waves. Can you do that as well?
Definitely. The more I look at them the more I realise how frequently they occur and how powerful they are. I just need to find the time to write…