Keltner's channel

1. I watch daily chart
2. I have a Keltner channel with the value set to 80 (changed 20th Nov 2008 - before 20),
when the price breaks out, I make the trade in that direction
3. I have SL wide as Keltners channel
4. I watch the candle patterns, divergence, fibs, pivot for the detailed entrance
5. After the trade is set up I change The Keltners channel to 10 and finish the trade when the closing breaks the channel on the oposite side. Starting from 20 Nov 2008 - I protect my gains by trailing - or pivot, TL, Fibo, ema levels .
I re enter after retraces.
6. The system can be continous - for the exit it is not needed to change the value of Keltners channel - so while going out one can open opposite trade.


The system has been introduced in Murphy's "Technical Analysys"

I trade on mikro acc. accordingly to the Money management chart published on oneeuro (ff member) www

I sometimes trade other pairs according to the same money management chart.

SL is also taken from there.

I entered the short trade today
gbp/usd @ 6405

Hi Brother , thanx for sharing your strategy.. may i get your Template which used Keltner channel ?

They have meta trader 4 and I do not have Keltner there,
but at forex.com and they use Charts v1,0
and I watch channel there.

I finally got it

If I understand your first post correctly, you trade a breakout of the keltner in the direction of the keltner, set at 20, on a daily chart. And your next post says you shorted gbpusd today.

Can you post a chart of that? My chart shows price broke the lower keltner several days ago. Thanks

here u r

today there was not a break out which was as You say several days ago
but I opened short because we are downside of the channel and I think
- as the system is continous - it was right ?

the trades setup
it is around +220pps

of course it does not prove anything, but it is better than in (-)


P.S.
This blue channel is just a equidistant channel not a Keltners one!

to start this system safely, or any system, it is extremely important to trade accordingly to the MM rules.
I am not an expert so I took the data from www.babypips.com

at least $100.000 - standard account
$ 10.000 - mini acc.
$9.999-250 - mikro
less - demo

Those of the readers who have blown their acc. (including me) know what it is about.
This method will not work when an acc. suffers from undercapitalization.

What is the purpose of the equidistant channel.

I posted it by excident - no purpose - I was just observing the trend

Hello

Did you play this strategy for some time? for how long ? and with any success?

Do you know any weakness of this strategy ? False breakouts or did you try diffrent channels wide ?

Peter

I will answer on monday - I am in travel now.

These questions are very important, I have found this system in the Murphy's manual, it has been proved succesful in the times when computer trading was not used.
I simply want to try (test) this strategy and find out if it really can work.
Now I wait for the breakout off the channel.
As the system is described as continous - I tried to join the gbp/usd short trend, for which the breakout has been recorded on 2nd Oct. 2008 @ 1,7624
I entered short on 30 Oct. 2008 @ 6405
and I plan to wait in this position until the buy signal will occur.

The first weakness of the strategy is my weakness it means lack of patience,
it is really a long term run,
second - is the SL level wchich I established at the width of channel ( but I would like to discuss it - it was not described in yhe source book), so it needs to be aplied in accordance to the MM rules.

The false breakout - I am sure it will happen - that is why we use right MM.

I do not plan to test other width of channel (now it is set to 20) because, I want to test it as it is described.

I will post in the evening today the table with the width of a Keltners channel (set to 20) in pips for different pairs and the minimum requirements for the acc. according to right Money Management rules.

my test trade is about +380 pps

it does not prove anything yet.

sell euro/cad @ 1,4928
buy cad/chf @9956
both have broken out of the channel

according to the system I should have waited until the candle close
but in Poland we have nearly midnight

breakouts

I post the gains & loses of the test trades

gbp/usd +460 pps
eur/cad -36 pps
cad/chf +50 pps

cad/chf +50 pps

usd/cad
going to close outside the channel?