Trend Runner

Yes. I think is EURUSD. I took it too :slight_smile: Now is open more or less in par :slight_smile:

Iā€™ve read and re-read the S&R aspect of this system. I believe Iā€™m clear on the rules. However, since there has been lots of questions about this subject and since being wrong in the market costs money I think a picutre is worth a thousand words.


Candle A closes at 1.3035

Candle B closes at 1.3095

Per the rules (IF THERE IS A ESTABLISHED S&R INFRONT OF YOUR TRADE, LONG OR SHORT, PRICE MUST CLOSE AT LEAST 30 PIPS AWAY FROM THAT ESTABLISHED S&R.) Open a BUY trade at the close of Candle A

If any candle close is less 30 pips from support or resistance open BUY at close of Candle B.

Thanks for any comments.

Read more: http://forums.babypips.com/free-forex-trading-systems/53464-trend-runner-22.html#ixzz2TYsz0jdW

From my point of view. The best open in at close of candle A - 3 (the red candle of the first green dot).
If you miss this first entry point, the close of Candle A is ok because the first resistance AHEAD is 35 pips away.

Bye

Itā€™s very dangerous to buy at the close of a candle going against the trend (especially after 3 consecutive red ones). I think ILZ mention this in a previous post. ILZ, are you taking closed candles against the trend?

Based on the rules for this system, you would not enter long for candle ā€œA-3ā€. You can only enter long at the close of a bull candle regardless of any of the other limiting factors of the system. So you are correct in stating this is dangerous and in stating this does not agree with this system.

Close of candle A would be where I would go long.

I personally like to be able to see the bigger picture, not just a few candles.

It looks like an uptrend where price retraces a bit and heads back toward the 200 MA and Supertrend. Prior to candle A it was unclear wether price would turn south or resume up trend.

[QUOTE=ā€œrandytrader;491210ā€]Iā€™ve read and re-read the S&R aspect of this system. I believe Iā€™m clear on the rules. However, since there has been lots of questions about this subject and since being wrong in the market costs money I think a picutre is worth a thousand words.

<img src=ā€œ301 Moved Permanentlyā€/>

Candle A closes at 1.3035

Candle B closes at 1.3095

Per the rules (IF THERE IS A ESTABLISHED S&R INFRONT OF YOUR TRADE, LONG OR SHORT, PRICE MUST CLOSE AT LEAST 30 PIPS AWAY FROM THAT ESTABLISHED S&R.) Open a BUY trade at the close of Candle A

If any candle close is less 30 pips from support or resistance open BUY at close of Candle B.

Thanks for any comments.

Read more: http://forums.babypips.com/free-forex-trading-systems/53464-trend-runner-22.html#ixzz2TYsz0jdW[/QUOTE]

I took the following trades at 1 p.m. EST (May 17). I think they are good. I am attaching the screen shots as they will help me if I made a mistake.

Hi all, today Iā€™ve open two trade. One of them is in loss at the moment (EURUSD @sell):


In your opinion what Iā€™ve missed?

ps. Thanks for talk about consecutive bull/bearish candle. Iā€™ve missed that :slight_smile:

yes they are both correct

ilzalama,

Iā€™ve got to say man, this is an exceptionally simple and ridiculously profitable strategy!

I started using Trend Runner with very small trades (micro lots) aside my own profitable intra-day strategy that iā€™ve been using for years. I really didnā€™t expect much to come from it and really just used it for entertainment purposes - like I normally do when Iā€™m boredā€¦

Anyhow, i just wanted to say, I am really, really impressed with the results.

Its simple and profitable.

You gave all the information needed to trade effectively in your first post, and it works.

My only advice to those thinking of using it, is to make sure you really study PA/candle patterns to further enhance your profitability and entry points. There were a few times where the strategy gave the O.K to trade,[I] but[/I] the entry candle told a different story. Waiting until both the entry candle and Trend Runner signal gave the green light yields much better results - for me anyway.

I recommend keeping a cheat sheet of bullish/bearish candles and candle patterns in front of you.

Keeping an eye on the weekly and daily support and resistance zones also helps.

Iā€™m trying to tweak it a little to see if it can be traded on a shorter time frame when combined with some of my own intra-day strategy tools - but Iā€™ll get back to you all on thatā€¦

Anyhow, amazing system man! (Just closed 70 PIPS short on the GBP/USD!)

Monkey, all you say Is completely right!! but I can tell you If market is choppy or ranging, you will lose a lot of money, all the profits you made from when the market was trending plus some extra losses from new ranging market hitting the SLs.

Am I correct ILZ?

Esteban

He has already mentioned that this system is ideal for a trending market, so yes you are correct on that statement. However, to say you would lose all your profits and then some in a ranging market is a bit overstated. You may have to adjust your money management (SL placement, entry times, etc.), but Iā€™m sure it is still possible to be profitable with this. With that being said, you could use a different system that is specific for a ranging market and only utilize this when the market is trending. Up to you and what you are comfortable with.

Hmmm, can you give me an example Esteban of a entry signal during a ranging market that resulted in a significant loss? I didnā€™t experience any while testing this week, but then again I didnā€™t take every tradeā€¦

The strategy is a definite winner, but maybe some more parameters are needed to confirm valid trending vs non-valid ranging signals. I will take a look myself this weekend.

Iā€™ll also see if I cant figure a way we can get an entry/ exit signal on the 5m/15m/1hr combining 4HR Trend Runner and some tools from my strategy - see if we canā€™t profit and ultimately avoid losses when the 4HR is ranging.

Trend Runner is a beast as it is though. :smiley:

Very good tactic indeed, but I would like to ask all of you people, what do you do when you have to leave the computer? I think thatā€™s the only ā€˜ā€˜weaknessā€™ā€™, that it needs intense monitoring. But I am amazed by its consistency!

Monkey I cannot give you an example of last week, because last 2 week were all trending markets in most pairs, but you will see ranging weeks will come, If this strategy work all the time we all will become millionaires in a matter of time, there is no holy grail, and add if you can a 100% detect when a market will start trending or ranging you are millionaire already.

Actually, it requires very little monitoring. You can essentially check it every 4 hours when the candles close. You can adjust all stops then and enter new trades. If you can check it a couple of times in between to adjust stops, great.

Indeed.

Once in a range however, it might be feasible to try locate the boundaries (based on SR) and wait for a breakout, or , as was mentioned, switch to another strategy - which is where I was going, in trying to find a way to enter on a lower TF, while still maintaining parameters of the 4HR Trade Runner system. That way you could trade the range using Trade Runner on a lower TF - which [I]potentially [/I]could be very lucrative.

Holy grail is obviously never possible. The market is an emotional beast, driven by humans. Unless you were able to put together an system that traded on the thought patterns of traders, or the market was traded only by bots, coded on a the same trade algorithmsā€¦ its never going to happen. :slight_smile:

This is another aspect irvinfitness: How often you check to adjust stops?

Guys, letā€™s test the system in the past and wait for several months before saying this is insane. A couple of good runs means nothing.
This week everything was trending, except maybe GBP/JPY and EUR/JPY.
From my backtesting, ranging periods are crazy. Only solution I found is to wait for break out of S&R ONLY. Thatā€™s why I insisted about the S&R breakout. ILZ recently said that he jumps in any case, even if the market is ranging, which puzzles me a lot since there is an initial post saying that he likes to wait for S&R breakout. I have serious doubts that jumping in a ranging market might be even BEā€¦ Maybe ILZ could give us some past key examples of previous trades that he took in ranging markets. This would be enlightening. Thanks!

While I do agree with you, I did want to point out that it is a great system based [I]on my live usage so far (about 12 days on the main currency pairs)[/I]ā€¦ HOWEVER, I did mention you need to take note of PA - Candle formations, Daily SR etc. This system is not without its drawbacks (ranging market to name one), but it is simple and can easily be modified if needed.

I havenā€™t tried following the system blindly, but using the Trend Runner foundations, combined with experience and PA it has shown to be profitable to me - [I][B]so far[/B][/I].

Iā€™m still using my own system/strategy, and will continue to run this one on micro pips.