Okay boys and girls, welcome to my new journal thread. The purpose of this thread is to chronicle the progress of a new strategy that I’m employing and to give back to the FF community from which I have gained much.
This is a manual strategy that I personally trade on the Daily and H4 time frames, however it can be scaled to others as well.
This strategy combines elements from the “Building an Equity Millipede” thread located here: http://www.forexfactory.com/showthread.php?t=245149
It’s a great read and an awesome thread, but if many of you are like me you may have found it difficult to implement. I think I may have found the system to accomplish that. It’s certainly not my own invention, in fact it is roughly outlined within the pages of the “Millipede” thread. However, as is typically the case with most systems we all use, I have tweaked it and modified it to work for me.
Some of the elements incorporated were gleaned from discussions over at stevehopwoodforex.com. Some great EA coding going on over there.
The goal is to have an short to intermediate return while preserving many positions for “unlimited” growth.
You don’t have to understand the “Millipede” concept to use this method, but it will help, and some of the points we discuss will only make sense if you understand the principles contained therein. For those who don’t want to consume that whole thread (it is quite lengthy) I have included a zip file of all of Graeme’s (the thread OP) posts.
The Strategy:
My method employs a filtered “Flying Buddha” technique. The basic methodology of the “Flying Buddha” is discussed in the attached document and is a must read to understand this strategy.
We’re not using a whole lot of indicators here. I’ve attached a template with my configuration as shown below. Many of the indicators are there for trade monitoring purposes and not necessary to the strategy itself. Use them if you want, delete them if you don’t.
The two main indicators are as follows:
Flying Buddha signals.
MA ribbon alerts set to a 5 and 10 MA
These two indicators help to filter one another.
The Setup:
The setup is run on a daily chart. I’m using the daily in this system because it’s easier for me to monitor. My daily bar starts at 4:00 pm local time so it’s a good time for me to watch for the new bars formation. I then stack on trades on the daily and H4.
We look for the “Flying Buddha” signal indicator to give us just that, an FB signal. As you read the attached file you will understand exactly what these are and why they can prove important.
We are not, however, trading on every flying Buddha, as they occur quite often and are not always…or even usually…an indication in a change of direction. Rather, we use the 5/10 MA crossover indicator to “confirm” the FB. Both of these indicators can be set up to give audible/visible signals when they are triggered.
So when we get a cross of the MA’s soon after a FB signal we have the setup for a trade. As we proceed you shall see that there is still some discretion as to entries. Looking at price action or perhaps current spreads I may not take every setup, but we’ll get to that as we go.
Lot Sizes:
Lot sizes, as always, are important. The attached template contains a nice lot size calculating tool. Based on our initial entry and s/l, along with our desired risk, we can set the lot size accordingly. I will then use that lot size throughout the “series” as I stack additional trades.
Stacking:
The stacking of trades are handled just like discussed in the attached pdf. Read it, and understand it, and then ask questions.
Trade exits:
Same as above.
Thread guidelines:
This is an open discussion, however I want to keep it on track with the original direction. We can discuss tweaks, but let’s keep on track. Be nice...or be gone.
Well that’s about it for now. We’ll see how this goes and what kind of legs it has.
This is a manual strategy that I personally trade on the Daily and H4 time frames, however it can be scaled to others as well.
This strategy combines elements from the “Building an Equity Millipede” thread located here: http://www.forexfactory.com/showthread.php?t=245149
It’s a great read and an awesome thread, but if many of you are like me you may have found it difficult to implement. I think I may have found the system to accomplish that. It’s certainly not my own invention, in fact it is roughly outlined within the pages of the “Millipede” thread. However, as is typically the case with most systems we all use, I have tweaked it and modified it to work for me.
Some of the elements incorporated were gleaned from discussions over at stevehopwoodforex.com. Some great EA coding going on over there.
The goal is to have an short to intermediate return while preserving many positions for “unlimited” growth.
You don’t have to understand the “Millipede” concept to use this method, but it will help, and some of the points we discuss will only make sense if you understand the principles contained therein. For those who don’t want to consume that whole thread (it is quite lengthy) I have included a zip file of all of Graeme’s (the thread OP) posts.
The Strategy:
My method employs a filtered “Flying Buddha” technique. The basic methodology of the “Flying Buddha” is discussed in the attached document and is a must read to understand this strategy.
We’re not using a whole lot of indicators here. I’ve attached a template with my configuration as shown below. Many of the indicators are there for trade monitoring purposes and not necessary to the strategy itself. Use them if you want, delete them if you don’t.
The two main indicators are as follows:
Flying Buddha signals.
MA ribbon alerts set to a 5 and 10 MA
These two indicators help to filter one another.
The Setup:
The setup is run on a daily chart. I’m using the daily in this system because it’s easier for me to monitor. My daily bar starts at 4:00 pm local time so it’s a good time for me to watch for the new bars formation. I then stack on trades on the daily and H4.
We look for the “Flying Buddha” signal indicator to give us just that, an FB signal. As you read the attached file you will understand exactly what these are and why they can prove important.
We are not, however, trading on every flying Buddha, as they occur quite often and are not always…or even usually…an indication in a change of direction. Rather, we use the 5/10 MA crossover indicator to “confirm” the FB. Both of these indicators can be set up to give audible/visible signals when they are triggered.
So when we get a cross of the MA’s soon after a FB signal we have the setup for a trade. As we proceed you shall see that there is still some discretion as to entries. Looking at price action or perhaps current spreads I may not take every setup, but we’ll get to that as we go.
Lot Sizes:
Lot sizes, as always, are important. The attached template contains a nice lot size calculating tool. Based on our initial entry and s/l, along with our desired risk, we can set the lot size accordingly. I will then use that lot size throughout the “series” as I stack additional trades.
Stacking:
The stacking of trades are handled just like discussed in the attached pdf. Read it, and understand it, and then ask questions.
Trade exits:
Same as above.
Thread guidelines:
This is an open discussion, however I want to keep it on track with the original direction. We can discuss tweaks, but let’s keep on track. Be nice...or be gone.
Well that’s about it for now. We’ll see how this goes and what kind of legs it has.
Attached Image (click to enlarge)
Attached Files
