Midas Touch - technical strategies

This thread is all for one, one for all... Love all serve all type of deal.

Finding an edge on the marker is hard graft, so lets team up. Testing will be the midas touch, until years of testing and future trading is done the strategies i am about to describe are fickle to say the least.

 

1. This is a thread for technical strategies, we will be in entries when news comes about, good thing is our stops are a good distance away. I have one for news.. it will come later
2. Open to discuss and share anything on this thread.
3. I prefer using martingale / double up as a recovery method (THIS IS RISKY) So we will discuss and advise how to do this.

Time Frames

1. Strategy 41.1 - Hour 1
2. Strategy 41.2 - Hour 4
3. Strategy 51.1 - Hour 1
4. Strategy 51.2 - Hour 4
5. Strategy 53.1 - 4 Hour
6. Strategy 53.2 - 30 minute
7. Strategy 54.1 - 5 minute
8. Strategy 98 - News - 5 sec
9. Strategy 20 - Magic numbers - 30 minute
10. Strategy 50.1 - Engulfing / reversal - 15 minute
11. Strategy 50.2 - Engulfing / reversal - Hour 1

Brokerages, Platform

Pepperstone, Vantage FX (best spread, min 300)
FXOpen AU, Alpari UK (good brokers but minimum 5- 10 k)
I have tried Suisse and German, nice but spreads not ideal.
I am steering away from USD accounts, so only EUR and GBP.

MT4 only, ive used mt5 i like it but we will be doing multiple entries.
Use other platforms by all means.

Indicators will be mql based.

Leverage

Minimum 100:1, I use 400:1 (since we double up this will be required)
Trade more pairs and you can expect to dig into your margin and have drawdown of more than 30%
Depending of course on how many pairs and trade size risk.

Copiers

Link a trading account to your main account and adjust the settings to lower risk.
For example, you have 10,000 EUR

1. Open 3 accounts
2. Split funds 3 ways, 3000, 3000 and 4000
3. Link Acct 2 to Acct 1 (using trade copier, free program will post later)
4. Acct 2 has Half trade size setting, place 0.04 in Acct 1, and within milliseconds acct 2 has a trade of 0.02
5. Acct 3 is for second entries, more on that later

Why do this, well to preserve capital, no point risking it all in one account. Especially since the above has only been marginally tested (some more than others).

Also since we have a handful of strategies, you will soon be playing like me with several brokerages and several accounts.

Money Management

This is seriosna, i will create a excel doc for the general masses (see post 6) (Updated)


Wont be going over all of this today, i will edit this post and slowly make my way down the strategy list, trust something good comes of this.
I welcome comments, abusive or not any tips and cheers welcome!




Hoist up the main sails, lets head out to sea...

Strategy 41.1 & 41.2

 

1. Same strategy just different time frame.
2. Use minor products or those with minor range with 4 hour (eurgbp, usdcad etc)
3. Use template and indicators posted below to get you started, then change colours etc as you wish

Profile

1. Midas-A
2. Used for strategies 41 and 51

Indicators

Yes all indicators lag, but it takes the effort out of reading PA and data, just follow steps and it'll be hunky dory

 

1. Candlestick or ohlc bars
2. 5 simple MA, shift 2, set to 'high' (colour on chart currently 'darkgoldenrod')
3. 5 simple MA, shift 2, set to 'low'
4. 34 ema, shift 1, set to typical (colour on chart currently 'seagreen')

Thats it.

The other indicators are for strategy 51 (to be discussed later)

Lets get this one covered first.

Strategy 41

Template and profile

There is one template, and i tried to compress the profile, hope it works

Strategy 41.2 example

CADCHF long
Current trade

1- both 5 sma above 34 ma (will be discussed later what happens when cross over occurs)
2- range bar to confirm trend (will be discussed later)
3- bar closes over lower 5sma (in this example) and then
4- continuation, a bar closes over top 5 sma (can enter here if account size is big enough)
5- wait for pullback to 34ma and enter long

TP (take profit) see ATR 100 (in this example ~ 20 pips) (this is low, hence CADCHF is on 4hr, as on 41.1 it would be half that.. not worth the hassle)
Stop loss 3 x target.

Looking at above image, let me explain in more detail.

Just before the (1) both 5 smas (simple moving averages) crossed below 34 ema, this would be a signal to wait for short setup.
But first wait for a range bar like (2)
What qualifies as a range bar and why:

1. Well firstly range shows me genuine interest or response to news, so price can continue with this bar.
2. Use ATR 100 to simplyfy this approach, i use this on most of my strategies as it helps with different pairs/ products.
3. Notice in the image ATR 100, on the far right on the indicator there are two numbers; 16 and 20. This is showing the average range for the last 100 bars was between 16 and 20. I take 16 and /2 then add back to original number = 24. So im looking for a bar with a range 50% above the normal range.
4. In the image the dotted line on ATR 100 is supposed to be set at 24. Double click on atr line and add a level, the amount of decimals varies per pair/ product

Back to the image, what happened was there was no range bar go short, so move on to (1)

1. Both 5 smas are above the 34
2. Range bar
3. Retracement (bar closing over 5smas)
4. Continuation (Bar closing back over 5smas)

Now as mentioned before if your account size is big enough, enter at (4)



If price does not move 20 pips (using atr 100) as TP
but retraces to 34 ma then enter again.
Close both for no loss.
SL would be 3x ATR 100

Safer entry would be at (5) TP 20 pips (use ATR 100)

Martingale system

If this example is a loss, then next setup double or triple your original trade size.
Repeat process.

As promised the MM doc

Strategy 50.1 - Engulfing bar with range

Theory

This strategy looks for change of short term trend. When a product is at the low of the Asian session and now Euro session begins, look for a change to go long only.
If EU session was long look only for shorts in US session.

Indicators (3)

 

1. Sweetspot
2. ATR 100
3. ATR 1

Application



Install indicators, profiles and templates
Using XAUUSD as the example do as follows

Look at ATR 100, the levels on far right currently show 12-16 pip average for the last 100 bars.
So change setting of Sweet spot indicator to 200, which indicates 20 pip distance between levels.
(see image)

The target will be the next level, this is just an aid, if you dont want to bother with the indicator i fully understand.

Use the pairs in the profile as they generally have the best movement and spread, plus you get a nice bit of variety.

Guidelines

 

1. Note where price is in regards to previous session (also note where your sessions are, roughly) Trading EU and US session is best advised. So 9.00-16.00 gmt
2. If price is at previous session high, look for shorts / If price is at previous sessions lows, look for longs
3. Wait for engulfing bar, and followed by a second range bar (several examples will help clear up any issues)
4. Enter trade

In brief

 

1. Engulfing bar in opposite direction of recent direction
2. Confirmation with range bar

----



Any comments, suggestions are welcome

In the image above, XAUUSD example from 10 July 2014

Firstly not US session begins and at the high of Euro session, so look for shorts only

1 - Engulfing bar (with range above average - see previous posts on how to set levels on ATR 100)
2 - Confirmation bar with range above average
3 - Target reached (20 pips)

Profiles

Template

Indicators

That should be it.. best of luck with setup.
Hope to team up and share trade calls.
This strategy is more active, so wont bother adding all the other strategies just yet.

Final note... i would use martingale system with this. So when a loss is made, double or treble up and recover loss on next setup.

SL is x pips beyond two signal bars