Thanks - nice simple formula for increasing profits.
Too many traders take a comfortable safe route in which the trade is just a discrete bet - at the end of the game you either won or you lost but its time to go home cos the game is over. Not right.
Buy & Sell are both on the first price bar to close with the True Trend showing a change of direction over the zero line.
Remember the signal period price bar must close before you take the trade and the trade is at the close of the current bar and open of the new price bar.
Stop loss
Each order in the trade has the same stop loss.
When buying it is the lowest price point of the previous move defined by the True Trend -1 pip.
When selling it is the highest price point of the previous move defined by the True Trend +1 pip + the spread.
Previous move defined by the True Trend?
Each time the True Trend crosses the zero line and closes with a positive reading that is the start of a new up trend. Each time the True Trend crosses the zero line and closes with a negative reading that is the start of a new down trend.
The trend lasts until the True Trend closes in the opposite direction. That the period length the True Trend was above or below the zero line is the previous move.
Take profits
The total position size for each set of trades is 1.8%
Order 1 = 0.6% risk.
Take profit distance = 2x the stop loss (twice times the distance of the stop loss).
Order 2 = 0.9% risk.
Take profit distance = 4x the stop loss (four times the distance of the stop loss).
Order 3 = 0.3% risk.
Take profit distance = no stop loss, exit is on the next zero line cross.
I too trade all of my systems on MT4 with expert advisors, except this one.
Use Oanda FXTrade because of the ability to use Units and therefore tiny position sizes when called for; there will be times when the stop loss is very far away and because you are risking 0.3% on 1 of the 3 orders the position size will be small.
Also the advantage of using the built in position size calculator and simply enter the number of pips makes life easy.
This should only take you two minutes a day to check for signal criteria and however long it takes you to place orders on days there are new trades to place.
Re: Do you have this for MT4?
Here is the True Trend .ex4 for those who want to follow on MT4
I would like to upload it here but I do not have permission to yet upload files.
I do trade all of my systems on MT4 with expert advisors, except this one.
Use Oanda FXTrade because of the ability to use Units and therefore tiny position sizes when called for; there will be times when the stop loss is very far away and because you are risking 0.3% on 1 of the 3 orders the position size will be small.
Also the advantage of using the built in position size calculator and simply enter the number of pips makes life easy.
This should only take you two minutes a day to check for signal criteria and however long it takes you to place orders on days there are new trades to place.
You should have no issues connecting to Oanda FX trade via TradingView with a Europe accounts, I am also using a European account.
Oanda MIFID impacts – European clients cannot trade through TradingView starting Dec 16
Recent announcement from Oanda.
“On 16 December 2017 Oanda is required to restrict API trade execution from 3rd party platforms for European clients (Motivewave, TradingView, Seer, MultiCharts, etc.). You may still use a 3rd party platform for trading analysis, however, you will no longer be able to execute trades on 3rd party platforms that execute trades via an API.
Yes, that is a creative and resourceful solution. If you are able to connect a demo account to TradingView and prefer to work off of there so long as the balance are the same (which can be done on the demo via deposit and withdrawals) it will be providing the correct number of units to then place on a live account.
If we get a large move say 600 points or above then the move ends and we get a buy/sell signal in the opposite direction.
Would the criteria change?
I may be completely wrong but could you have a stop say 900 points away and a take profit 1800. Which would be great but the chances of it getting there are remote.
Would you consider pullbacks and the weekly/monthly trend
Re the GBP/USD we have just had a buy signal but the low was on the 3rd October around 1000 points lower. I must re wrong but your stop would be 1000 away and take profit 2000.
I must be misinterpreting
Excellent example. And by the way all questions are good questions, it is the only way to learn.
Let’s take a look at your example.
The last trend change was on Oct 16, 2019 when the trend turned positive.
Entry 1.28299 (call it 1.283)
The lowest price from the previous move of the trend was on Sept 3, 2019 at a price of 1.19586
871 pips SL
1st order take profit = 1,742 pips
2nd order take profit = 3,484 pips
3rd order exit on next zero line cross
Seems extreme. But in three weeks price had moved over 1,000 pips. Which means volatility is HIGH.
Our position sizes will reflect that volatility and be small because of it.
Do I think we will move up 2000 pips for a full take profit on order 1?
Maybe. If I have learned anything in 19 years of trading is that the unexpected happens.
Is it possible we trade down 871 pips to a full stop out and los -1.8%?
Maybe, but I doubt it.
What is most likely in this case, which is abnormal, is that we get a zero line cross exit either in profit or at a loss and taking either a small gain or a loss and move into to the next trade.
That is the brilliance of the strategy. It is factoring in all types of market moves no matter how they occur.