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DanUK's Advanced Trend Trading Strategy

good strategy...

thanks
Quoting TGpop
your method is exactly the same as mine
although my trade management is much different, i scale out and back in with bigger size
Hopefully that's a case of "great minds think alike" lol!
Quoting gododdin
Thanks Dan. Right now I find it hard to imagine a 1000+ pip trade! But I think I see the first one not too far over the horizon...

I would be glad of your thoughts on keeping trading records. I know that many traders say that keeping accurate records is essential but this is something I really struggle with, not because I'm disorganised or undisciplined but because I don't really know why I'm doing it and therefore it seems pointless. I kept records of every trade for months and months but I don't think I learned anything from them -...
Hi gododdin,

That's an interesting question. When I started out trading (in the T.A. world) I kept a journal to record trades and my reasoning/thought process - I think this is a good idea so you can see why/when things work and why/when they don't.

These days though I must admit I only keep the journal for bookkeeping purposes. Because I have a variety of trades on with different brokers I like to keep a separate journal for each currency pair and I record my positions as and when I open/close them - it just makes things easier!

I do recommend it though to anyone who wants to give it a try - it does help to have a historical record of trades - often you can look back at it and find how you have grown and even find reminders of little tips and tricks that you might have forgotten!

Regards,

Dan

PS.... hopefully that first 1000+ pip profit will be closer than you think!
Quoting yogibear
Hi Dan, just wanted to subscribe, as i've been trying to trade pretty much exactly the same way, although i've been operating in a vacuum!!
I look forward to your analysis, i think the only divergence is that i draw my S/R from a weekly chart, and only enter on the daily signals. Unfortunately, i can't access 4hr charts during the day.
A very promising thread, look forward to contributing.
I should add, letting go is something i struggle with. Most of my trades get stopped for 50 pips, or B/E. I've yet to see the fabled 1000 pip trade LOL
Hi yogibear,

Actually, I tend to start out from the weekly to draw what I call "key" levels of support/resistance. These are often the best places to trade from so your trading plan should fit in well with what I am doing here!

Regards,

Dan
Quoting Viv108
Great system!

Is this codable? Can it be turned into an EA?
I wish! My life would be sweeeeeeeeet then! But alas I'm afraid it is not (codable)!
Quoting GJP
Hi Dan, looks like your on to another winner mate. I have a question re - the placing of stop losses and the moving of them as the trade unfolds. You mentioned in an earlier post about placing a stop loss 80 pips from your entry and using 4h and daily charts.

Am I to take from this that if you entered a trade on a daily chart with a hammer/pin bar candle as your entry signal, you would not place your stop loss at the end of the nose of the hammer/pin bar. Looking forward to see this thread unfold.

cheers.
Hi GJP,

Thanks for the question. That particular trade I mentioned was off of the H4 charts and the 80 pip stop would have been placed just above the high of the trigger/setup. I would recommend the same for the daily - I place the stop just beyond the opposite end of the setup.

Hope that makes sense!

Regards,

Dan
Quoting Sylar

  1. Support & Resistance Levels
  2. Trendlines
  3. Fib Retracements
  4. Candlestick Patterns & Breakouts

Dear Commander

Do you ranked your selection entries based on above in order of merits from the most important to the least i.e.

You...



Hi Sylar,

Thank you for your questions...

Yes to a certain extent I do rank my entries… I don’t really grade them but I do consider in my mind how good the setup looks and I only take it if I feel comfortable with it – you know when you should skip a trade because you will get to “feel” that the entry is not quite what it should be; at that stage you know it’s better to stay out.

If I get a candlestick pattern at one of the “key” s/r levels and it is in the direction of the trend I will most likely take it without the need for any other confluence. However, if price is not at a “key” level I will need to see at least two factors (i.e. s/r + trendline or s/r + fib level) as well as the trigger to get in the trade.

Using the candlestick patterns negates the use of the anti-hedge strategy as far as I am concerned. With candlestick patterns a trade becomes void once the stop is hit – if I think the trend is still valid even though I’ve been stopped out for a loss I will look for another trigger to get back in.

I know the temptation to exit a trade early for a profit but I try my best not to these days… unless I have good reason to believe that the trend has actually changed. The reason is that you may never (until the actual change of trend) get the chance to get in at such a good price again – we are assuming here the trend is intact and in that case we really want to milk it for as much as it’s worth.

As an example (real not theoretical) let’s take the USD/CAD – daily chart, 1st April 2009, a nice little pin bar forms at an “area of interest” and we sell below… success; the trade moves 500 pips in our favor and then starts to retrace - fear and greed kick in and we close for 250 pips! Great, we made a profit, I’m not knocking it, but price never came back to our entry – if we had held on our trade would be worth almost ten times that now at around 2300 pips… not to mention the pins that formed on that retracement (that caused us to close out) would be worth another 2000 pips on top!

Hopefully that illustrates that the old adage to hold on to your winners is not just a cliché but actually a good piece of advice. Of course, everyone has to find what works for them – I’m just trying to show what seems to work best for me! But before you decide, please back test a few setups and see where you would normally have closed them out and then compare them to what you could have made if you held on; it’s an interesting exercise!

Regards,

Dan
Quoting zeCarvalho
good strategy...

thanks
Thank you!
Hi Commander

Thanks for the detail response.

In a nutshell one have to develop our own market "feel" (accomplished through countless hours of chart time) & candlestick patterns are the determing factor for our entries & SL.

Just to clarify if u have a nice pinbar set on the 4hr you would set your SL a few pips (5-10pips) below the pinbar... Would you look at the D1 chart to readjust your SL based on the D1 candlestick becos 6 candles on the 4H charts is equivalent to one D1 candle.

Regards
Sylar
"Thinking Heart & Feeling Brain"
i hope to be active in this thread here. your strategy is a mirror image of mines since we learned most our stuff from the same concept.

Trend trades..Trend lines.. Fibs..and im also using lately pin bars and outside bars on the dailies.

Im still mainly on the EUR but i am looking to branch out if the trade jumps out at you and its as easy as picking money up off the street.
Quoting DanUK
Hi gododdin,

That's an interesting question. When I started out trading (in the T.A. world) I kept a journal to record trades and my reasoning/thought process - I think this is a good idea so you can see why/when things work and why/when they don't.

[color=black][font=Verdana]These days though I must admit I only keep the journal for bookkeeping purposes. Because I have a variety of trades on with different brokers I like to keep a separate journal for each currency pair and I record my positions as and when I open/close them - it just makes...
Excellent Dan- you've confirmed what I was beginning to suspect - I think my records are sufficient for my purposes now, I just thought maybe I was missing something! I will let you know the first time I get 1k pips.

Looking forward to the next installment of your strategy...
When in doubt, sit on your hands...
Hi Dan,

Another great thread. The simple trend trading approach is very much aligned to my own thinking.

Just some areas I am seeking clarity on. If you have already provided this, then please excuse the question or point me in the right direction. (I get lost in all the posts!)

1)
Can you explain how you apply the fib tool to your charts? And when you will use it and won't use it? What impact would round numbers have above/below the key fib numbers?

Personally, I find the use quite subjective (much like trend lines) and hence some inconsistencies appear.

2)
Once in a trade, can you reconfirm your original stop loss approach? And explain when you move the stop loss to break even.

Many thanks!
Hello Dan,
Follower of your tread and trading style, I found this indicator on www.mql4.com . It combines several S/R levels over different timeframes. It takes a bit of trial and error to find the best settings, and they seem to be different for some pairs. Moreover, if installed on some 20 pairs (Alpari UK MT4), it uses quite some processor/memory resources.
Best regards,
Ludo Willems
Belgium
Attached File
File Type: mq4 Waddah Attar Super Support Resistance.mq4   14 KB | 564 downloads
Hey Dan are you in any long term trades right now? could you possibly give me a current performance result .eg EUR/AUD + 450 and il attempt to find your entry just want to practice spotting the patterns without being told
Hello Dan, do you see some pare ready for long term trade now or pare where signal is forming? Thank you for this great thread and for your help. have a nice day,
Hi Dan,

Great thread,many thanks.

Best wishes
Hi Dan,
Do you look for any particular "signs" in price action (other than your candlestick patterns) as it approaches your trendline, S/R zones which help you decide if or not they are likely to hold or be breached?

Thank you
Peter
Quoting lizpet
Hi Dan,
Do you look for any particular "signs" in price action (other than your candlestick patterns) as it approaches your trendline, S/R zones which help you decide if or not they are likely to hold or be breached?

Thank you
Peter

Good question, lizpet. I dont use candlesticks for entry. I use price patterns. I essentially do the same thing as DANuk, but instead of looking for hammer or engulfing bar, etc at concentrated point of interest, i look for a 1,2,3 formation at the point of interest. Whenever i trade daily and H4, i look for the 1, 2,3 formation on the 15mins. Whenever i trade weekly or monthly, i look for the 1, 2, 3 on the h1. occasionally on h4.

Using the low of the 1,2,3 formation as my SL, and the completion of the 1, 2,3 as my entry point.

To show you a recent example(a trade i took a couple of hours ago. In real time. NZD/USD long on H4/15mins. The fib levels, round number, s/r levels are very close to the 50% fib level on the H4 time frame. My entry was at the 15mins level. Hence h4/15mins. Then when price gets to the 50% fib on the H4, i zoom into 15mins and wait for a nice 1, 2,3 pattern formation. At the completion of the 1,2,3 formation at 0.7285 i entered long with SL at 0.7265(low of the 1,2,3 formation).

Here is the link to the trade:
http://www.forexfactory.com/showpost...postcount=7893

If you want to learn more about 1, 2,3 PATTERN formation, check out this link:
http://www.tradejuice.com/forex/fore...methode-mm.htm
Quoting Sylar
Hi Commander

Thanks for the detail response.

In a nutshell one have to develop our own market "feel" (accomplished through countless hours of chart time) & candlestick patterns are the determing factor for our entries & SL.

Just to clarify if u have a nice pinbar set on the 4hr you would set your SL a few pips (5-10pips) below the pinbar... Would you look at the D1 chart to readjust your SL based on the D1 candlestick becos 6 candles on the 4H charts is equivalent to one D1 candle.

Regards
Sylar
Hi Sylar,

If I enter based on a 4 hour candlestick pattern I will place my stop at the opposite end of that setup - I would only use the daily high/low for a stop if I entered based on a daily candle.

Regards,

Dan
Quoting bboyomega83
i hope to be active in this thread here. your strategy is a mirror image of mines since we learned most our stuff from the same concept.

Trend trades..Trend lines.. Fibs..and im also using lately pin bars and outside bars on the dailies.

Im still mainly on the EUR but i am looking to branch out if the trade jumps out at you and its as easy as picking money up off the street.
Good stuff! Welcome to the thread - I look forward to your input here!

Euro is still my fav too!

Regards,

Dan
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