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mrdfx Oct 19, 2019 12:05pm | Post# 1

Follow the Candles
 
4 Attachment(s)
Hey FF! So like myself, many traders are reversal traders, always looking for tops and bottoms trying get in as early as possible, but we know that is not as easy as it seems and many times we land up with fake reversals or temporary pullbacks, chasing and adding to losing positions etc etc..

Now I'm sure most of us have heard the sayings that the "trend is your friend", "follow the trend" and "trade with the trend" etc so I gave this some serious thought and came up with an idea that I have been working on for over 3 months. I know that there are probably 1000's of trend based strategies and perhaps mine is not unique, but it has been showing positive results with minimal time and effort. I wanted to create a strategy that is easy to follow and with as less chart and screen time needed (max 10 mins) kind of like a set and forget approach.

So here goes! The first thing you need is the Trend indicator LuXingMod AUD indicator, this is a free indicator I found here on FF, it simply shows all the pairs candle direction for each time frame if it is green/up or red/down, simple. I've attached it to this thread.

Now what is the entry criteria and when do we open and close an order?

1. First we will edit the indicator settings to only show the H4, D1, W1, MN bars/candles as we are only looking at higher time frame trends.
2. When? On a Monday night after the first daily candle of the week is closed we will look for any pairs where is a confluence between the trend and all 4 time frames.
3. Any pairs that have the same confluence on all 4 time frames we will open an order in the same direction.
4. I normally wait for the first H4 candle to be fully formed so more or less 3 hrs after the Monday daily close.
5. The open time is not set in stone as I have opened the orders less than 3 hrs and after 3 hrs and still had success. (We can experiment on an optimal open time.)
5. When do we take profit? You take profit when you are happy with it or you can set your own TP in pips or %. I have set a 5% TP.
6. What about a stop loss? Well this is a personal preference, but I'm setting a max of 10% so if my account goes -10% of my account equity I'll close up for the week.
7. Can we set a trailing stop to trail profits? Sure that would be a good idea after reaching your TP.
8. This whole process should take you max 10 mins to look for valid pairs and place your orders.
9. Anything else? No that's it, simple right?

This is a really easy strategy guys, not much in it, we are simply following the overall main trend of the market. This is a weekly basket style approach where we will hold orders for 2-4 days depending on the market. This strategy does not take into account fundamentals or high impact news events so if you want to be extra cautious you can exclude any valid pairs that might be affected by related news events for the week.

If you guys have some ideas on how to improve on the strategy I'm open to listening, however I will not encourage ideas that will completely deviate from the original strategy as its really simple and I don't want to complicate things.

So I'm a fan of EA's and think they are great tools if used correctly so I had an EA made for me based on this strategy. The EA is pretty straight forward I think and should be easy enough to understand. The EA is also pretty customizable so you can also trade it on other sessions and time frames, you only need to configure the settings accordingly.

I have put a 30 day expiry on this EA to protect it from being sold or commercialized etc. At the end of every 30 days I'll upload a new version here on post 1.

*Due to some members comments I felt the need to state publicly that the Follow the Candles EA is FREE and always will be! The is no hidden commercial agenda or plans to sell the EA at any time.!*

Please guys lets stay on topic and try not to deviate too much from the original strategy. I will not tolerate any arguing or keyboard warriors, those that can't participate in a respectful friendly manner will be removed.

Green pips to you all! Cheers! :-)
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Trend indicator_LuXingMod_AUD.ex4
Trend indicator_LuXingMod_AUD.mq4
Follow The Candles EA.ex4

mrdfx Oct 19, 2019 12:11pm | Post# 2

On Monday night after the first daily close candle of the week I'll post and share my valid pairs for the week.

tenthman Oct 19, 2019 1:12pm | Post# 3

The indicator doesn't load properly on my chart . The indi might work correctly for me if you showed the template you are using. Thanks.

thisara1 Oct 19, 2019 1:15pm | Post# 4

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The indicator doesn't load properly on my chart . The indi might work correctly for me if you showed the template you are using. Thanks.
Manual added curruncy pair indicator input,,,
thank you share strategy mrdfx
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Go5 Oct 19, 2019 1:51pm | Post# 5

On Monday night after the first daily close candle of the week I'll post and share my valid pairs for the week.
Ok, so how do you calculate your lotsize?

tenthman Oct 19, 2019 2:32pm | Post# 6

2 Attachment(s)
{quote} Manual added curruncy pair indicator input,,, thank you share strategy mrdfx {image}

Nope ... not the problem. Something else. Here's the screen shot from the H4 and Day1 AUDUSD

I'd show you the settings for the indicator but I can't seem to be able to figure out how to do that. Thanks anyway.
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tenthman Oct 19, 2019 2:40pm | Post# 7

{quote} Manual added curruncy pair indicator input,,, thank you share strategy mrdfx {image}
If the indi loads correctly on your chart, would you be so kind as to post your template?

thisara1 Oct 19, 2019 2:40pm | Post# 8

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{quote} Nope ... not the problem. Something else. Here's the screen shot from the H4 and Day1 AUDUSD I'd show you the settings for the indicator but I can't seem to be able to figure out how to do that. Thanks anyway. {image} {image}

change here
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tenthman Oct 19, 2019 2:48pm | Post# 9

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{quote} change here {image}

Nope ... that just moves the rectangular gibberish to the right. If it works for you, just send the template.
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tenthman Oct 19, 2019 2:51pm | Post# 10

{quote} Nope ... that just moves the rectangular gibberish to the right. If it works for you, just send the template. {image}
Unless your saying I have to manually load all 28 pairs. It was pre-loaded with just the AUD pairs. I'll try that and let you know. Thanks.

tenthman Oct 19, 2019 3:09pm | Post# 11

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{quote} Unless your saying I have to manually load all 28 pairs. It was pre-loaded with just the AUD pairs. I'll try that and let you know. Thanks.
Ok ... here's what it looks like now. Not the nicest, but I think I can work with it.
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MrGreen95 Oct 19, 2019 3:23pm | Post# 12

The problem in this system is that when the trend will start to change, it will takes time (and so stops losses) before it turns in a red/green dot on a monthly and weekly chart

mrdfx Oct 19, 2019 4:30pm | Post# 13

1 Attachment(s)
The indicator doesn't load properly on my chart . The indi might work correctly for me if you showed the template you are using. Thanks.
Here are the settings I'm using. You need to play with the X and Y as it is dependent on your screen resolution.
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mrdfx Oct 19, 2019 4:33pm | Post# 14

{quote} Ok, so how do you calculate your lotsize?
Well lot size would depend on your account size and risk tolerance?

For testing over the last 3 months I have been using 0.01 only to count the profitability of profit in pips, but going forward I will probably use 1% risk per pair and increase the risk over time if it does well.

fx-lover Oct 19, 2019 4:46pm | Post# 15

{quote} Well lot size would depend on your account size and risk tolerance? For testing over the last 3 months I have been using 0.01 only to count the profitability of profit in pips, but going forward I will probably use 1% risk per pair and increase the risk over time if it does well.
We can't calculate risk if we don't know stop loss in pip??

hibra68 Oct 19, 2019 4:49pm | Post# 16

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I would like to help.

I'm trying something new, its not a system yet.

I'm manually keeping track of sentiment.

I downloaded "sentiment indicator" from fxssi website.

The only thing is it doesn't show historical data on sentiment. So I cant really back test it to see how price reacts to change in sentiment.

The idea is to go against the herd.

For example if the indicator shows 60% or above buying it will say short and vice versa.

I started 2 days ago and i'm just loggin percentage values for each pair everyday.

For example I want to see percentage value to go from 85% to the other side -60% and see how it effects the price movement.

And we can take trades based on the candle system. If all green and the sentiment is 60% or above sell than we buy.

There could be other filters added: For example don't take trades that go against each other.
If we have a buy signal for EurUsd and a sell signal for Eurcad don't take both signals only the better one. You don't want to sell one Eur and buy the other Eur.

I will post the indicator here but I don't know if it can be copied.

If you are not able to copy it from here, download from this link. https://fxssi.com/fxssi-sentiment-lite-mt4
FXSSI.Sentiment.Lite.ex4
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Go5 Oct 19, 2019 5:09pm | Post# 17

{quote} Well lot size would depend on your account size and risk tolerance? For testing over the last 3 months I have been using 0.01 only to count the profitability of profit in pips, but going forward I will probably use 1% risk per pair and increase the risk over time if it does well.
Empirical it is then, until obtaining some formula, taking into account the risk, average weekly excursions (favourable & adverse) per pair and the number of pairs traded every week.

flashpaul Oct 19, 2019 5:46pm | Post# 18

This is the way I love to work. Thank you to open this thread. Go on.

Macd-rsi Oct 19, 2019 10:27pm | Post# 19

general rule:
probability = 0.80 = 80%
if 7 consecutive candles are green, #8 will be red. and opposite is right!

Anthony1994 Oct 20, 2019 12:47am | Post# 20

{quote} Nope ... that just moves the rectangular gibberish to the right. If it works for you, just send the template. {image}
How can I get this indicator

tenthman Oct 20, 2019 10:32am | Post# 21

{quote} How can I get this indicator
Finally a question I can confidently answer ... at the very bottom of post #1.

hibra68 Oct 20, 2019 11:23am | Post# 22

3 Attachment(s)
All the charts below went from below 60% to above 60% recently on the Sentiment indicator.

Also the carts are all green on all 3 timeframes.
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mrdfx Oct 20, 2019 11:57am | Post# 23

I would like to help. I'm trying something new, its not a system yet. I'm manually keeping track of sentiment. I downloaded "sentiment indicator" from fxssi website. The only thing is it doesn't show historical data on sentiment. So I cant really back test it to see how price reacts to change in sentiment. The idea is to go against the herd. For example if the indicator shows 60% or above buying it will say short and vice versa. I started 2 days ago and i'm just loggin percentage values for each pair everyday. For example I want to see percentage...
Using sentiment, contrarian trading, "trading against the herd" is an old trading approach that's been explored a few times here on FF if I recall. I remember a guy named neilsdigest had a thread talking about it where I participated a bit, also Ill-b-back has a thread on it. I can't remember why I stopped exploring this approach but there was a reason...

It is something that could be looked at as an added filter.

nozzer Oct 20, 2019 12:06pm | Post# 24

depending who you believe,neilsdigest wasn't above board,good luck with the thread though

hibra68 Oct 20, 2019 2:06pm | Post# 25

{quote} Using sentiment, contrarian trading, "trading against the herd" is an old trading approach that's been explored a few times here on FF if I recall. I remember a guy named neilsdigest had a thread talking about it where I participated a bit, also Ill-b-back has a thread on it. I can't remember why I stopped exploring this approach but there was a reason... It is something that could be looked at as an added filter.
It is not a system as of yet.

I don't have a way of looking back at the history of sentiment, so I am doing it manually. And perhaps in a month or 2 I could get some idea as to how price reacts to sentiment change.

If anyone has an idea about plotting the sentiment history or code it somehow it will be great.

The indicator I posted earlier updates every 60 min . It is suppose to be the average of the following.
FXSSI, INSTA,SAXO,OANDA,FIBOGROUP,IGG,DUKAS,FXBLUE,FXFACTORY,MYFXBOOK
There is also something called "current ratio" and it also shows the average of the above but only shows 11 currencies+gold+usd index.
This can be downloaded from the fsxxi site but you have to sign up for the demo.
I dunno the difference between the 2 indicators but for now I am keeping track of the sentiment indi.

I will post next week the progress.

hibra68 Oct 20, 2019 2:09pm | Post# 26

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Here is how the current ratio and sentiment look together.
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membank Oct 20, 2019 2:32pm | Post# 27

Very interesting will be keeping my eyes on this looking forward to hearing more can I ajust the pairs that I trade which is about 7 pairs thanks

ancapreb Oct 20, 2019 2:59pm | Post# 28

Nice thread, your system seems really interesting.

Just one question, if you don't mind. I don't use MT, I use tradingview...

Which indicator do you use to determine the trend?

Thank you!!

tenthman Oct 20, 2019 9:44pm | Post# 29

1 Attachment(s)
Finally got the indi to look halfway decent ... been working on this all afternoon.
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MrDarren Oct 20, 2019 11:20pm | Post# 30

interesting system, i want to try !

looccaa Oct 21, 2019 2:06am | Post# 31

interesting system

Klausi Oct 21, 2019 4:06am | Post# 32

Very nice Idea! Is there a trademanager were we can set basketprofit and stop in %?

Greets,
Klausi

goodways100 Oct 21, 2019 4:16am | Post# 33

Will be following. Looks interesting. Thanks for sharing.
Regards

flashpaul Oct 21, 2019 7:47am | Post# 34

In my personal opinion, one simple way to follow this strategy is to enter in a retracement of a trend.

Example:

MN bullish, W1 bullish, D1 bearish. Well, enter with a buy at the end of the day and set a stop loss at the open of the D1 candle.

MN bearish, W1 bearish, D1 bullish: enter with a sell at the end of the day and set a stop loss at the open of the D1 candle.

If the trend is strong, letīs wait for an inverted candle in low TF (H4 or H1) to enter again in the main trend.

Of course, the next D1 candle may be the continuation of the retracement and we need the help of an oscillator that can show an overbought or oversell condition or a recovery strategy of the loss.

looccaa Oct 21, 2019 8:10am | Post# 35

In my personal opinion, one simple way to follow this strategy is to enter in a retracement of a trend. Example: MN bullish, W1 bullish, D1 bearish. Well, enter with a buy at the end of the day and set a stop loss at the open of the D1 candle. MN bearish, W1 bearish, D1 bullish: enter with a sell at the end of the day and set a stop loss at the open of the D1 candle. If the trend is strong, letīs wait for an inverted candle in low TF (H4 or H1) to enter again in the main trend. Of course, the next D1 candle may be the continuation of the retracement...
we need the help of an oscillator that can show an overbought or oversell condition or a recovery strategy of the loss

mrdfx Oct 21, 2019 9:34am | Post# 36

depending who you believe,neilsdigest wasn't above board,good luck with the thread though
I was not talking about the person I was referring to his contrarian strategy thread which did have some good nuggets of knowledge.

mrdfx Oct 21, 2019 9:35am | Post# 37

Nice thread, your system seems really interesting. Just one question, if you don't mind. I don't use MT, I use tradingview... Which indicator do you use to determine the trend? Thank you!!
The indicator is on the first post?

mrdfx Oct 21, 2019 9:37am | Post# 38

In my personal opinion, one simple way to follow this strategy is to enter in a retracement of a trend. Example: MN bullish, W1 bullish, D1 bearish. Well, enter with a buy at the end of the day and set a stop loss at the open of the D1 candle. MN bearish, W1 bearish, D1 bullish: enter with a sell at the end of the day and set a stop loss at the open of the D1 candle. If the trend is strong, letīs wait for an inverted candle in low TF (H4 or H1) to enter again in the main trend. Of course, the next D1 candle may be the continuation of the retracement...
Thanks for your suggestion however this seems like a completely different approach from the original strategy. This strategy is trading the main overall trend not retractments. I also don't see how adding an oscillator will help in this strategy.

mrdfx Oct 21, 2019 9:38am | Post# 39

Tonight I'll be posting my valid pairs which will be traded for the week.

T4Trade Oct 21, 2019 10:59am | Post# 40

good thread,thanks for sharing!

I am little skeptical about going against the sentiments,going against the sentiment means going against the trend, that is what market makers do, so we are trading in line with MM,that is very popular concept given by BTMM lately.

but MM can manage to go against the trend, do we manage to take the sl or hold the trade against the trend unless we have a very big account or any hedging or martin strategy? so going against the herd is a good concept ,but it is not as simple as 123.

if anyone has seen you tube clips of VP , nononsenseforex.com.he suggests to go with market sentiment if it is 80%.

I have got a better suggestion,one can enter safely after the pullback following the trend at leat 4h time frame,i would suggest to go with the trend of higher the time frame and not against it.

good luck in shaping this strategy.


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