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Day Trading vs. Swing Trading vs. Position Trading 86 replies

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Idyllic Trading

  • Post #1
  • Quote
  • First Post: Feb 18, 2011 12:03pm Feb 18, 2011 12:03pm
This is a system I have been using for a couple of weeks now and I decided to share with the FF community.

First a little background.

I have been trading for a few years now and for the most part have been a break-even trader. I am a bricklayer most of the year, just steadily booking small profits every day. Then I have a week when I turn into a stark raving mad lunatic and wipe out most of the years gains. At the end of the year I am pretty much where I started.

So this year I vowed to develop a system that allowed me to have more profitable days during my bricklaying period while simultaneously giving me clear signals to STOP trading when I enter my lunatic cycle.

Enter my idyllic trading method. I think this system makes it PAINFULLY obvious when there is no trade to be had so I can calmly sit and wait for a signal.

Platform: Metatrader 4

Indicators Used: AMA optimized, #4X 3 Semafor Alert, NonLagMA(55), SDX-TzPivots_v5,

Timeframe: 5 minutes

Risk Level: Low

This is a very visual system so we will be looking for visual confirmation of price action. I use pivot points as support and resistance, so I am particularly interested in price movement around pivot levels.

Rules:

Wait for price to reach a pivot level and look for a starburst - indicating that a swing low or market structure low is in place.

For long entries: price is moving away (up) from the pivot level and the No-Lag MA is green. Confirmation to go long will be a blue dot painted on the adaptive MA. Once the bar with the blue dot CLOSES. Enter long. Stop will be 1 pip below NoLag MA but no more than 21 pips.

For short entries: the exact inverse of long entries only we are looking for a red dot to paint to open a short position.

Managing Open Trades: Initially set target for 2x's initial risk. Once you get a feel for the system watch candles and if a bull candle forms then use the adaptive MA as a trailing stop.

Once price crosses adaptive MA in the opposite direction of your trade - get out immediately.

If NoLag MA changes color - get out immediately.

Points of interest: The AMA will not paint any dots in times of consolidation or chop so do not enter any trades when no dots are present.

Dots will repaint several times during 5 minute period so do not enter until bar closes.
Attached Image (click to enlarge)
Click to Enlarge Name: idyllicTrading.png Size: 65 KB
Here is another trade from this morning USDJPY
Attached Image (click to enlarge)
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Hi,

Could you post your indicators and template. I'd like to try it out.

Thanks

Jay
Quoting Dunebuggyjay
Hi,

Could you post your indicators and template. I'd like to try it out.

Thanks

Jay
I can post the indicators - but i need to figure out how to get the template copied. give me a few....
Quoting Dunebuggyjay
Hi,

Could you post your indicators and template.

Jay
see attached
Attached File(s)
File Type: zip idyllic.zip   47 KB | 4,895 downloads
EURUSD is setting up for an idyllic short. Wait for confirmation and remember it's Friday AFTERNOON! so play at your own risk.
This chart shows a typical setup that historically has cost me money. Price has mad a massive move up and stalls at R3 - It has to go down right? Well, maybe, but not just yet! I got no confirmation to go short so sat on my hands and lived to trade another day!
Attached Image (click to enlarge)
Click to Enlarge Name: ishot-40.png Size: 37 KB
Quoting enochben
This chart shows a typical setup that historically has cost me money. Price has mad a massive move up and stalls at R3 - It has to go down right? Well, maybe, but not just yet! I got no confirmation to go short so sat on my hands and lived to trade another day!
Looks like a worthy to try system man.
Let me thank you first for starting this thread. There is someone with a similar thread...., I think his name starts with "Dred...." something like that. I do not know what he is up to with the attitude he is asserting. When the traders ask for indicators he tells them to email him. But it turns out that the traders appear not to get the indi's he promised them.....Hmmmmmmm!! He will always yell at those in his thread, "Read the thread....., follow the rules", but there are no clearly set rules in his thread.

But anyway, congrats on starting this thread and posting your indies. I will try it out next week.

Peace man. There is so much trouble in the World now!!!
Quoting maxwell-eqtn
There is someone with a similar thread...., I think his name starts with "Dred...." something like that.
I know the thread you are referring to and there are some similarities....price action with indicators being the main one, but, I think my system is a wee bit simpler....

Thanks for the encouraging words...
Quoting enochben
I know the thread you are referring to and there are some similarities....price action with indicators being the main one, but, I think my system is a wee bit simpler....

Thanks for the encouraging words...

There is a question I would like to ask you. Look at the charts you have in post #1 and #7. The Red Semafor that was in post #1 suggests that we go short. So in post #7 we were expecting to go short; however, the semafor repainted and kept moving upwards, while we were looking for a Sell trade. We've missed lots of pips looking for a short trade when price action instead is moving upwards.

How do you trade situations like this???
  • Post #11
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  • Edited 3:59pm Feb 18, 2011 3:57pm | Edited 3:59pm
Quoting maxwell-eqtn
There is a question I would like to ask you. Look at the charts you have in post #1 and #7. The Red Semafor that was in post #1 suggests that we go short. So in post #7 we were expecting to go short; however, the semafor repainted and kept moving upwards, while we were looking for a Sell trade. We've missed lots of pips looking for a short trade when price action instead is moving upwards.

How do you trade situations like this???
I guess this is where price action and a little experience come into play.

First price is at R3 without getting into statistics here I just know from standard deviation that the probability of price going much higher is low so I will not go long at R3 - ever. If price does breakout from R3 I take comfort in knowing it is a rare occurrence.

To better answer your question, I handle it by looking for shorts only at those lofty levels and since I got no confirmation to short - I just sit on the sidelines listening to some idyllic tunes waiting for my next opportunity (in this case Monday)...

Also if you are familiar with 1-2-3 patterns you will see that the third high did not confirm a reversal.

Hope that helps.
Hi thanx for your good system.

This system is just for tf 5 min ?
We just enter when see blue dots or red dots ?
Quoting amir558
Hi thanx for your good system.

This system is just for tf 5 min ?
We just enter when see blue dots or red dots ?
I only have used on 5 minute charts.

Its a little more than just red and blue dots - there are a few other things you need before entering trades - please re-read the first post.
Quoting enochben

Also if you are familiar with 1-2-3 patterns you will see that the third high did not confirm a reversal.
To be more specific - a new extreme high was in place - for the sake of argument lest say it was 1.3700 or (1). next a higher low needs to print and we will call this (2).

id (3) will determine if a reversal is likely in play - if a lower high prints without surpassing (1) 1.3700 - the there is a high probability that prevailing trend is ending and will soon reverse.

If price does surpass (1) then we are looking at a continuation pattern.

Attached is a pdf that does a better job of explaining than I can.
Attached File(s)
File Type: pdf 123Reverse.pdf   95 KB | 1,713 downloads
can you explane about tp ?
Quoting enochben
This is a system I have been using for a couple of weeks now and I decided to share with the FF community.

First a little background.

I have been trading for a few years now and for the most part have been a break-even trader. I am a bricklayer most of the year, just steadily booking small profits every day. Then I have a week when I turn into a stark raving mad lunatic and wipe out most of the years gains. At the end of the year I am pretty much where I started.

So this year I vowed to develop a system that allowed me to have more profitable...

Hi E,

This seems like a reasonable system and I have tried something similar some time back with OK results.

However, I only respond because you seem honest in your way of writing. You say you have gone BE for some years and you are revenge trading from time to time, killing your account.

Relax, this is normal, as with any other sport. The thing is, you need to "know how" before you can perform and with no one around you who "knows how" its shit hard.



Lets break it down:

There are 2 Variables and 1 constant. The constant is the price (unchangeable), the variables are (SL & TP) and how many (lots) you are putting in which is both changeable. This makes the system you are trading really not that important as it is more or less a constant.



Before we go on, answer these questions:

1. How many profitable trades do you have VS loss?
2. How much do you loose when you loose?
3. How much do you win pr trade?
4. Brokers spread and minimum trade?
5. How many % are you aiming for a month?

Cheers,
Quoting Larseg

Relax, this is normal, as with any other sport. The thing is, you need to "know how" before you can perform and with no one around you who "knows how" its shit hard.

Before we go on, answer these questions:

1. How many profitable trades do you have VS loss?
2. How much do you loose when you loose?
3. How much do you win pr trade?
4. Brokers spread and minimum trade?
5. How many % are you aiming for a month?

Cheers,
First I know the shit is hard - one of my favorite trading axioms is

"its an easy way to make a hard living"

I was introduced to trading by a hedge fund manager who schooled me on ratio and risk. I know what I am supposed to be doing and I do it very well most of the time. My problem was (and hopefully fixed) confidence. I was always confident I knew when the market was going to turn (like my R3 example earlier) and although I was usually right, my pockets are not deep enough to withstand the new highs/lows that are sometimes made before the V reversal.

I always try to get 1:3 RR. I rarely lose more than 10 pips in any single trade. I usually trade just the euro with a spread under 1 - the only reason I have not been a profitable net trader is because of my "Id" telling me I am a market wizard so "risk all you got here".... oops, a little early... bye bye months of hard work!

I had been a purist - trading just price action with no indicators - just support and resistance lines that I drew myself. But, and a big BUT, I realized I do not have the discipline to be a purist. I need the lag that is inherent in all indicators to slow myself down and confirm that what my Id is telling me has a high probability of being correct. Which leads me to my idyllic trading method which I am thinking about renaming "the system for undisciplined traders"

ok - maybe a little too much honesty here... maybe it will help someone...
thought this was relevant:

A novice monk approaches his teacher and asks, “Is this a bull market or a bear market?”

The teacher replies, “If it is a warm day, and I say that it is winter, will you still wear your heaviest coat?”
Quoting amir558
can you explane about tp ?
Me thinks taking profits is personal. If you are a scalper take your 10 pips and get out, if you're a swing trader wait until you get a price extreme in the opposite direction.

Personally, I set my initial SL at 13 pips and once the market starts moving in my direction, I will use the adaptive MA to trail my stop. I usually add a little space to the AMA to get something like this.

SL = AMA + 1 + spread

Another thing about SL - don't fret small losses or break-even trades - they won't hurt you. The AMA should make it easy to limit your losses.
Quoting enochben
First I know the shit is hard - one of my favorite trading axioms is

"its an easy way to make a hard living"

I was introduced to trading by a hedge fund manager who schooled me on ratio and risk. I know what I am supposed to be doing and I do it very well most of the time. My problem was (and hopefully fixed) confidence. I was always confident I knew when the market was going to turn (like my R3 example earlier) and although I was usually right, my pockets are not deep enough to withstand the new highs/lows that are sometimes made before...

I can see through your writing that you are not profitable and yet you speak as you are.

You aren't ready to make a living out of this cause you won't listen to others.

Seriously your pockets aren't deep enough? and risk reward of 1:3 as a fixed term, what BS hedge fund manager would tell you that? Full of lies...

If you can't listen to others and are stubborn this will take you a long time to fix.
I still wish you Good Luck and you will need it, luck.
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