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Daylight Trading Strategy

  • #461
  • Jun 18, 2021 10:40am Jun 18, 2021 10:40am
Quoting oradba
Not a bad week. What a great strategy. Now to work on exit timing. {image}
Congrats,you are qualified to quit your job now lol....I'm sorry for the pain your broker has to endure,please send my regards
  • #462
  • Jun 18, 2021 12:01pm Jun 18, 2021 12:01pm
Quoting LauraT
+207 Dow. 1H aggressive -50 cross. {image} This is one where my entry could have been much better, had I waited for the retracement.
Hi Laura, for Barraka WPR, what did you set for:

1. Use -50 level as filter
2. Display only mid-line crosses

Aren't they the same meaning?

Thank you.
  • #463
  • Jun 18, 2021 12:36pm Jun 18, 2021 12:36pm
Quoting oradba
Looking at Barraka's contribution. Wondering why the highlighted entry wasn't pointed out (blue box) {image}
Hi,

It's not highlighted because when the MAs on the chart did not respect the rules (green above red) when the Williams cross happened.
It's actually a pretty rare occurrence, because the vast majority of the time when the Williams daylight happens, the chart MAs are already in the correct order.

The arrows / signals are displayed only on the WPR cross, so when finally the chart moving averages did cross, it doesn't trigger an arrow.
However the dashboard that I have provided does signal a chart cross, so you could always use that if you want.
  • #464
  • Jun 18, 2021 12:40pm Jun 18, 2021 12:40pm
Quoting Chroniclez
{quote} Hi Laura, for Barraka WPR, what did you set for: 1. Use -50 level as filter 2. Display only mid-line crosses Aren't they the same meaning? Thank you.
No, they are not the same thing:

- Use -50 as filter: only displays signals (whether standard or aggro) when the WPR cross takes place on the correct side of the midline. So, for a bull signal for example, the WPR red & blue need to be above the midline. And inverse for a sell signal.

- Display only midline crosses: This is a variation of daylight that Laura explained later on in the thread. The rules are different, and it's basically taking signals when the slow WPR (red) crosses the midline (-50) level. When you choose that option, there is no "daylight" involved, it's just a midline cross.
  • #465
  • Jun 18, 2021 12:42pm Jun 18, 2021 12:42pm
Quoting LauraT
EURJPY short. 1H aggressive mode. {image}
It seems that 10 or more candles before you placed your order(from the chart)
showed a clear signal for a sell order. Is my observation in order? If so, why did you
not go short earlier or was it when you saw the opportunity?
  • #466
  • Jun 18, 2021 12:58pm Jun 18, 2021 12:58pm
Quoting Glorybound
{quote} It seems that 10 or more candles before you placed your order(from the chart) showed a clear signal for a sell order. Is my observation in order? If so, why did you not go short earlier or was it when you saw the opportunity?
I guess I was busy with something else at the time
  • #467
  • Edited 2:56pm Jun 18, 2021 1:16pm | Edited 2:56pm
Greetings Laura, and, of course, many thanks for Daylight in its now several forms!

You did tease us a bit (especially post 211) with your success on H4, a TF I am familiar with and comfortable. I wondered if you have any further thoughts of the wisdom of those entries. The pressing question would be do you continue to favor the entry combination of of SM21 crossing the -50 line, plus available Daylight?

This combination surely looks strong to me . . . as far as I have gone with it.

Of course, the H4 will be especially useful to those who can't frequently check down to M5 or even M15, so there is a real 'market' for Daylight at H4.

Since everything is working on all TFs you likely wouldn't frequently look much at H4 . . . but others of us probably will! :- )

Thank you again for all you have done and continue to do for so many traders.
  • #468
  • Jun 18, 2021 3:35pm Jun 18, 2021 3:35pm
Guys,
Thread looks good. Well done Laura for all your hard work and patience. Just checking out the templates and indi's from Barraka and I have a question on how to avoid chop like on the AU H4 charts attached. I work through the London session and can just about find time to check the H4 charts so trading lower TF is out.
Its the consolidation thats proving difficult for me to detect and avoid.
Keep up the good work.
Attached Image (click to enlarge)
Click to Enlarge Name: f9c683ee551902c9850338d90a21abc1.png Size: 50 KB
  • #469
  • Jun 18, 2021 4:21pm Jun 18, 2021 4:21pm
Quoting Forest-Sea
Greetings Laura, and, of course, many thanks for Daylight in its now several forms! You did tease us a bit (especially post 211) with your success on H4, a TF I am familiar with and comfortable. I wondered if you have any further thoughts of the wisdom of those entries. The pressing question would be do you continue to favor the entry combination of of SM21 crossing the -50 line, plus available Daylight? This combination surely looks strong to me . . . as far as I have gone with it. Of course, the H4 will be especially useful to those who can't...
Hi,

With any timeframe, you have to do a little visual testing on various markets to see what works best.

Timeframes other than 15m are still relatively newly explored by me so I can't yet say I favour one approach over the other. By giving what I consider to be a solid set of options, I'm providing a starting point for people to go on and do their own research. Nobody should take my word for anything without testing it out themselves.

A key point to remember is this though. If market conditions are right on a particular timeframe, things will go very well indeed. If conditions are less ideal, it will be much trickier. That applies regardless of which approach or which timeframe is chosen. So the important thing isn't so much the approach or timeframe, but the state of the instrument at the time you trade. Fortunately, we have many markets to choose from and we aren't forced to trade any in particular.

If you take a look at GU on the 4H for example - from mid-May to mid-June we were stuck in a range that would make extracting profit very difficult. As soon as we realise we are in such a range we avoid trading it and move on to find other opportunities.
  • #470
  • Jun 18, 2021 4:29pm Jun 18, 2021 4:29pm
Quoting 40PipsAlan
Guys, Thread looks good. Well done Laura for all your hard work and patience. Just checking out the templates and indi's from Barraka and I have a question on how to avoid chop like on the AU H4 charts attached. I work through the London session and can just about find time to check the H4 charts so trading lower TF is out. Its the consolidation thats proving difficult for me to detect and avoid. Keep up the good work. {image}
It's really a case of trying to establish, as soon as you can, that you are in a range and then either avoiding that market in favour of another or seeing if switching up to the Daily presents a clearer picture.

A trader might be caught out once or twice by a range but they shouldn't be repeatedly caught out. Once we realise what is happening, we avoid it like the plague until conditions change.

Try looking at the Daily and see if that seems preferable. If you can only trade the 4H, there has to be an acceptance that sometimes the best action will be not to trade a particular market.
  • #471
  • Jun 18, 2021 5:23pm Jun 18, 2021 5:23pm
Quoting LauraT
{quote} It's really a case of trying to establish, as soon as you can, that you are in a range and then either avoiding that market in favour of another or seeing if switching up to the Daily presents a clearer picture. A trader might be caught out once or twice by a range but they shouldn't be repeatedly caught out. Once we realise what is happening, we avoid it like the plague until conditions change. Try looking at the Daily and see if that seems preferable. If you can only trade the 4H, there has to be an acceptance that sometimes the best action...
Yes -if your long fails and then your short fails, chances are you are in a range, so you mark the high and low and wait or get another instrument. Just my pennyworth.
every Saint has a past. Every Sinner has a Future
  • #472
  • Jun 18, 2021 7:29pm Jun 18, 2021 7:29pm
Attached Image (click to enlarge)
Click to Enlarge Name: XAUUSDH1.png Size: 70 KB


Gold 1HR aggressive mode, I guess you could argue that there was no Daylight...as I'm sure some will... however Dawn was approaching
From tiny pips mighty oaks grow
  • #473
  • Jun 19, 2021 1:02am Jun 19, 2021 1:02am
Quoting Barraka
{quote} No, they are not the same thing: - Use -50 as filter: only displays signals (whether standard or aggro) when the WPR cross takes place on the correct side of the midline. So, for a bull signal for example, the WPR red & blue need to be above the midline. And inverse for a sell signal. - Display only midline crosses: This is a variation of daylight that Laura explained later on in the thread. The rules are different, and it's basically taking signals when the slow WPR (red) crosses the midline (-50) level. When you choose that option, there...
Thanks for the reply Barraka.

Only one option can be selected as true right?
  • #474
  • Jun 19, 2021 2:18am Jun 19, 2021 2:18am
Quoting Chroniclez
{quote} Thanks for the reply Barraka. Only one option can be selected as true right?
If you choose "Display only midline crosses" as true, it will only display midline crosses, regardless of the "-50 level filter" option.
If you set it to false, it will display normal signals. Those normal signals can be refined using the "-50 filter" option.
It's quite straightforward, really.

Better still, just place the indi on the chart, and play around with those 2 settings you'll immediately see what it relates to, by looking at where the arrows take place.
  • #475
  • Jun 19, 2021 2:53am Jun 19, 2021 2:53am
Quoting Barraka
{quote} If you choose "Display only midline crosses" as true, it will only display midline crosses, regardless of the "-50 level filter" option. If you set it to false, it will display normal signals. Those normal signals can be refined using the "-50 filter" option. It's quite straightforward, really. Better still, just place the indi on the chart, and play around with those 2 settings you'll immediately see what it relates to, by looking at where the arrows take place.
Ah, that's what I thought too.

Thanks for confirming.
  • #476
  • Jun 19, 2021 6:48am Jun 19, 2021 6:48am
Quoting turnip15
{quote} Yes -if your long fails and then your short fails, chances are you are in a range, so you mark the high and low and wait or get another instrument. Just my pennyworth.
Exactly.
  • #477
  • Jun 19, 2021 5:14pm Jun 19, 2021 5:14pm
Hi
Thank you for your strategy. I am trying to backtest the aggressive mode strategy but I am having some problem in figuring out why some of the trades didnt work.
Can you please see the attached image and tell me why it didnt worked.
Attached Image (click to enlarge)
Click to Enlarge Name: 1.png Size: 116 KB
  • #478
  • Edited Jun 20, 2021 2:23am Jun 19, 2021 11:00pm | Edited Jun 20, 2021 2:23am
Quoting achal1995
Hi Thank you for your strategy. I am trying to backtest the aggressive mode strategy but I am having some problem in figuring out why some of the trades didnt work. Can you please see the attached image and tell me why it didnt worked. {image}
Switch your chart to H1 TF and later to H4 TF ...
You are in range from many hours and weak trend in opposite direction to your taken order, on H1 there are three in a row higher lows and higher highs, MA's in sub window are over the -50 and on H4 is the same situation. Your entry was taken in not optimal situation.
We have to be very picky in decision making ...
It is easy to explain what and why something happened, but have hope it helps you...
  • #479
  • Jun 20, 2021 3:03am Jun 20, 2021 3:03am
Quoting achal1995
Hi Thank you for your strategy. I am trying to backtest the aggressive mode strategy but I am having some problem in figuring out why some of the trades didnt work. Can you please see the attached image and tell me why it didnt worked. {image}
Watch out for impending 3star news events when u take the trade. The recent FOMC was a trade killer. Maybe add a news indi on the chart.
  • #480
  • Jun 20, 2021 5:44am Jun 20, 2021 5:44am
Achal's post above reminds me to mention something.

We cannot, and should not, blindly follow every signal we get. Whether you use market structure, higher timeframe analysis or something else, the aim should always be to form a bias and wait for opportunities that agree with your bias.

No strategy will give you 'buy here' type signals that magically deliver profit every time. Daylight is no different in that respect.

All we can do is try to stack the probabilities in our favour. We do this by taking setups that we believe, over the long run, will deliver a profitable edge.

I hope, very soon, there will be an additional tool which will greatly assist in quickly performing this analysis. Until then, please do try to be aware of the bigger picture at all times.
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