The Basic sytem - 5Min Chart with ALF5, ALF60 and ALF240, TVI_Histogram5 TVI15 in the two sub windows.
Basic System Entry Rules from post 1,
MainTrade
- ALF 60 Crossed Below ALF240
- Main Trend is Down.
- Trend Just Changed
Rule 1 if PA is below ALF5 and TVI5 is red, Short with stoploss of highest high(my interpretation) while PA was above ALF.
Rule2 Confidence in the trade: ALF60 is LESS THAN ALF 240 and stepping DOWN.
As the trend gathers strength, the PA will indicate this with as series of mini trends and consolidations.
This presents an opportunity to crete an AddOn trade.
Same rule of the basic system apply for an AddOn trade, so long as Rule 2 shows strength. Larger Step size.
Upon AddOn, Stoploss for all trades is ALF240. If there is a spike you loose. If there is a spike and you require a close above ALF240, then a hidden stoploss comes into play.
Anyone who trades the markets has to have faith in the system. The concept that ALF60 is less than ALF240 and both are stepping down and gaining strength offers the ability to increase "calculated risk" and therefore higher return.
In a trend, the trending is usually violent, impulsive and, even with constant vigil hard to predict. ALF moves with the market and flattens out when the market is not volatile. This is where the faith in the indicators comes into play. So long as the higher TF ALFs are behaving as required, this concept of adding on trades to and existing trend yields much higher returns. The market travels 100 pips, you make 300.
Requires patience, faith in the indicators, and ability to take calculted risk.
Stick to one system.
Pat
Basic System Entry Rules from post 1,
MainTrade
- ALF 60 Crossed Below ALF240
- Main Trend is Down.
- Trend Just Changed
Rule 1 if PA is below ALF5 and TVI5 is red, Short with stoploss of highest high(my interpretation) while PA was above ALF.
Rule2 Confidence in the trade: ALF60 is LESS THAN ALF 240 and stepping DOWN.
As the trend gathers strength, the PA will indicate this with as series of mini trends and consolidations.
This presents an opportunity to crete an AddOn trade.
Same rule of the basic system apply for an AddOn trade, so long as Rule 2 shows strength. Larger Step size.
Upon AddOn, Stoploss for all trades is ALF240. If there is a spike you loose. If there is a spike and you require a close above ALF240, then a hidden stoploss comes into play.
Anyone who trades the markets has to have faith in the system. The concept that ALF60 is less than ALF240 and both are stepping down and gaining strength offers the ability to increase "calculated risk" and therefore higher return.
In a trend, the trending is usually violent, impulsive and, even with constant vigil hard to predict. ALF moves with the market and flattens out when the market is not volatile. This is where the faith in the indicators comes into play. So long as the higher TF ALFs are behaving as required, this concept of adding on trades to and existing trend yields much higher returns. The market travels 100 pips, you make 300.
Requires patience, faith in the indicators, and ability to take calculted risk.
Stick to one system.
Pat