Hello and good day,
Here is a little something that I came across while studying my charts the other night in order to place my orders. I first looked at it using the Daily Pivot points for GJ on the M5 TF, but since converting to the daily charts, I just couldn't go back to watching the M5 chart, even though it looked good.
I have only recently placed my first trade orders, and I have no way of backtesting this system, but it is relatively easy to see how many winners and losers are on the daily chart pretty quickly.
I am going to start trading this, but keep in mind that this is untested by me except visually. Maybe it has even been done before. Regardless if anyone has any ideas as to how to make this a better system, please feel free to pipe up as I am still learning how to make this better as it is very easy to implement.
Pairs and Pivots
AU = Weekly Pivots
EU = Weekly Pivots
GU = Weekly Pivots
UCAD = Monthly Pivots
UCHF = Weekly Pivots
UJ = Monthly Pivots
GJ = Weekly Pivots
ECHF = Monthly Pivots
EGBP = Monthly Pivots
NU = Weekly Pivots
EJ = Weekly Pivots
GCHF = Weekly Pivots
EA = Weekly Pivots
ECAD = Weekly Pivots (this could easily go to monthly, but for now I'll start it here)
ACAD = Weekly Pivots
AJ = Weekly Pivots
NJ = Weekly Pivots
AN = Monthly Pivots
I will add additional pairs later. Also, these pivots might need to be changed for example if the Yen started giving us more movement, we may need to switch to the Weekly Pivots of vice versa for some of the other pairs if there movement decreased. I don't know if I will trade all these pairs. I am hoping to eventually, but I will at least start out with the top 6 pairs above
Chart
Daily Chart
Rules
First you will want to put the most recent Weekly or Monthly Pivots on your chart for the current week or month.
Then you will want to make permanent lines where the pivot lines are as we will not want to change these lines until the price closes above R3 or below S3. (It may actually be better to change these pivots every week or month as normally would happen, but I can only see on the screen using the same pivots for the whole screen. We will have to keep an eye on this)
Once the lines are permanent you can remove the pivot indicator. Once again for the time being we will only replace these pivot lines with new ones if the price closes above R3 or below S3.
Thought Process
The thought process behind this is that if price action travels halfway between any two pivot points either up or down that it will go the rest of the way to the next pivot point.
Entry Positions
Under most circumstances you will only need to monitor your trades once per day. You will miss a trade here or there if price moves very fast, but for the most part you will be able adjust your orders without missing too much.
You should now be able to place 5 or 6 pending orders based opon wherever the current price falls in relation to the current pivots you just put on your chart.
You will place as many buy stop orders as you can from the halfway point between two pivot lines with a take profit at the next higher pivot line and a stop loss at the next lower pivot line. There will be no buy orders placed above R3. Remember that if the price closes above R3 you should repaint your pivot lines and place all new orders based on the new lines. Make sure that you also input your take profit and stop losses at the time of the order.
You will then place as many sell stop orders as you can from the halfway point between two pivot lines with a take profit at the next lower pivot line and a stop loss at the next upper pivot line. The will be no sell orders below S3. Remember that if the price closes below S3 you should repaint your pivot lines and place all new orders based on the new lines.
As you can see this gives us a 1:1 ratio which means that we will need to have more wining trades then losing trades for us to make a profit. To me it is pretty evident that this happens.
You will need to monitor your trades each evening in order to add an additional buy or sell stop that you were unable to put in before if the price moved enough for you to be able to.
You should also always wait for the the price to touch or come within a few pips of touching a pivot line before placing any new orders in the other direction.
Attached is a spread sheet that will allow you to place the value of each pivot and then it will automatically calculate your T/P and S/L settings. These are based upon my spread features and can easily be changed if yours are different. Make sure you follow the chart and put the S2 value in the S2 spot on the chart and so forth.
Also attached is a Pivot Point Indicator. I think it has a minor hang-up so if anyone else has a version that doesn't contain a glitch, we'd love to see it.
I hope that you enjoy testing this system with me, as I am really excited to add it to my portfolio.
Enjoy and if you have any questions or comments, I will be around.
Damon
Here is a little something that I came across while studying my charts the other night in order to place my orders. I first looked at it using the Daily Pivot points for GJ on the M5 TF, but since converting to the daily charts, I just couldn't go back to watching the M5 chart, even though it looked good.
I have only recently placed my first trade orders, and I have no way of backtesting this system, but it is relatively easy to see how many winners and losers are on the daily chart pretty quickly.
I am going to start trading this, but keep in mind that this is untested by me except visually. Maybe it has even been done before. Regardless if anyone has any ideas as to how to make this a better system, please feel free to pipe up as I am still learning how to make this better as it is very easy to implement.
Pairs and Pivots
AU = Weekly Pivots
EU = Weekly Pivots
GU = Weekly Pivots
UCAD = Monthly Pivots
UCHF = Weekly Pivots
UJ = Monthly Pivots
GJ = Weekly Pivots
ECHF = Monthly Pivots
EGBP = Monthly Pivots
NU = Weekly Pivots
EJ = Weekly Pivots
GCHF = Weekly Pivots
EA = Weekly Pivots
ECAD = Weekly Pivots (this could easily go to monthly, but for now I'll start it here)
ACAD = Weekly Pivots
AJ = Weekly Pivots
NJ = Weekly Pivots
AN = Monthly Pivots
I will add additional pairs later. Also, these pivots might need to be changed for example if the Yen started giving us more movement, we may need to switch to the Weekly Pivots of vice versa for some of the other pairs if there movement decreased. I don't know if I will trade all these pairs. I am hoping to eventually, but I will at least start out with the top 6 pairs above
Chart
Daily Chart
Rules
First you will want to put the most recent Weekly or Monthly Pivots on your chart for the current week or month.
Then you will want to make permanent lines where the pivot lines are as we will not want to change these lines until the price closes above R3 or below S3. (It may actually be better to change these pivots every week or month as normally would happen, but I can only see on the screen using the same pivots for the whole screen. We will have to keep an eye on this)
Once the lines are permanent you can remove the pivot indicator. Once again for the time being we will only replace these pivot lines with new ones if the price closes above R3 or below S3.
Thought Process
The thought process behind this is that if price action travels halfway between any two pivot points either up or down that it will go the rest of the way to the next pivot point.
Entry Positions
Under most circumstances you will only need to monitor your trades once per day. You will miss a trade here or there if price moves very fast, but for the most part you will be able adjust your orders without missing too much.
You should now be able to place 5 or 6 pending orders based opon wherever the current price falls in relation to the current pivots you just put on your chart.
You will place as many buy stop orders as you can from the halfway point between two pivot lines with a take profit at the next higher pivot line and a stop loss at the next lower pivot line. There will be no buy orders placed above R3. Remember that if the price closes above R3 you should repaint your pivot lines and place all new orders based on the new lines. Make sure that you also input your take profit and stop losses at the time of the order.
You will then place as many sell stop orders as you can from the halfway point between two pivot lines with a take profit at the next lower pivot line and a stop loss at the next upper pivot line. The will be no sell orders below S3. Remember that if the price closes below S3 you should repaint your pivot lines and place all new orders based on the new lines.
As you can see this gives us a 1:1 ratio which means that we will need to have more wining trades then losing trades for us to make a profit. To me it is pretty evident that this happens.
You will need to monitor your trades each evening in order to add an additional buy or sell stop that you were unable to put in before if the price moved enough for you to be able to.
You should also always wait for the the price to touch or come within a few pips of touching a pivot line before placing any new orders in the other direction.
Attached is a spread sheet that will allow you to place the value of each pivot and then it will automatically calculate your T/P and S/L settings. These are based upon my spread features and can easily be changed if yours are different. Make sure you follow the chart and put the S2 value in the S2 spot on the chart and so forth.
Also attached is a Pivot Point Indicator. I think it has a minor hang-up so if anyone else has a version that doesn't contain a glitch, we'd love to see it.
I hope that you enjoy testing this system with me, as I am really excited to add it to my portfolio.
Enjoy and if you have any questions or comments, I will be around.
Damon
Attached File(s)
###Auto Pivot.mq4
15 KB
|
918 downloads
Attached File(s)
Pivots.xls
30 KB
|
898 downloads
"Keep your eyes on the helpers" - Mr. Rogers