Simple trading but profitable

this is not a system that teach you how to trade in the market.
this is a tool or function that help you to know the market and deal with the market!!
then i will show you guys some real chart in the future market.

any body who can tell me if the market in the pic is downtrend or uptrend?
i believe no body can.

now lets close our eyes and draw a line in random.
then i believe everyone can tell me we are in the uptrend.

the trend is nothing without a reference

now maybe you will say"what are we doing? determine history??? its useless."

so now we set three lines.
to be honest i don't know which will be used,but i prefer the first and third lines.

finally, we get two successful trades

if you don't close the first short, its ok,because you will lose less than 10pips when price go north.
but the long will give you more than 9999999pips.!

close = hdeging for us.

you have no idea what are you talking about.

@LiunLiun , this tool = when is it da Best time to use - - - London session , Asia or NY session ?

Looks interesting. Appreciate the effort to share liunliun.
Thanks

I like this idea very much, liunliun. Thanks for sharing. Maybe I am too optimistic, but I can hardly imagine a realistic scenario where this method does not produce a winner in the end, especially if you use it on trending pairs with small spreads like EURJPY or EURUSD.

Do you use this method also during important news releases? I could imagine it would be better to avoid big news as price could cross your reference line from upside and downside more quickly than you are able to close and open new trades. But on the other hand such kind of events offer the biggest opportunity for big trends and breakouts.

Don't the buys and sells cancel each other out in the end and u just end up losing the spread??

It's not difficult to make an EA for this - just set the level and let the EA do the rest.. Might be better with futures.. cover positions and open new one rather than hedge. Price will mess around ticking back and forth multiple times at the level, bid will trigger but offer will not and vise versa - might get messy. ideally no spread and no commission but that dose not exist.

It's like the most simple grid system, with only one level.

it is my strategy so easy , be with the trend , in (daily frame)
looking for the flag on the 30m frame
wait till breakout
bay /sell after retest flag line
hold the profit on the nearest second line
put the loss above the flag line
..... enjoy with pips

So just to have an example where price bounces a bit.

If this level is 1.5850....

1st cross of line = buy at 1.5850
2nd cross = sell at 1.5850
3 cross = buy at 1.5850
4 cross = sell at 1.5850
5th cross = buy at 1.5850

Price then heads to 1.5882.... which gives 2 losing sell orders of 30 pips each and 3 winning buy orders of 30 pips each...so rouughly 30 pips profit....but this does not take into account commissions...etc...etc...keep it simple for now.

So do you set pending buy and sell stop orders as soon as it crosses the line....??? or wait for candle to close ?

just like bubayaga said, the issue with this way of trading have always been that price can whipsaw around the line a lot more than you may think, resulting in many many small losses before price takes off...if it does indeed take off.Cause sometimes even when price decides to run away from the line, it doesnt do so enough to recoup the small losses endured.

using the chart example in the post above, price crosses the line 5 times before moving 30 pips up..then returning to the same line Again. The problem is, it looks like price crosses the line 5 times only because it’s a 30 min chart, but if you look at these 5 candles, you’ll see that in each candle price crosses the line more than once, so what looks like 5 crosses of the line could really be 10,15 or even more crosses meaning even more losses (albeit small).

Another issue also that hasn’t been addressed by liun is when to take profit.
Anyway this way of trading has been discussed a few times
https://www.forexfactory.com/showthread.php?t=321847

https://www.forexfactory.com/showthread.php?t=22663
and in many other threads as well, it looks good and simple at first but when you put the whole idea to the test LIVE and not in hindsight, it turns out not to be the case...well you will find out for yourself when you try.

i actually think about trading like this before but it's just like a tunnel method, with the same lot

Hi linulium ,

I used that method before and had too many losses on a small timeframe (1min). Can you tell me how you enter you trades on the line? I mean do you wait for a 30 min candle to close above/below the line to enter a trade or close it?

You could probably use old mate tictac-nur's ea. set the "recovery zone" to 1 pip and Bob is your uncle.. Of course - minus the Martingale..

Hi Liunliun.
Could you please explain a bit the "balance line"

These would be my line-- -- marking top and bottoms-- until they get broken.

How do you spot them?

Just to add "The Market Can Remain Irrational Longer Than You Can Remain Solvent"


The idea is to "test" the market 'til we get supply/demand imbalance. The problem with this strategy is that, if you don't have a iron clad set of rules, especially in money management, you can deplete your bankroll in no time.

Another thing you should consider : You're probably trading with a "market maker" in other words, the broker is "making "the market for you, taking the other side of your trade. The broker is able to provide you with a "simulated feed" because they copy-cat from banks. What happens is that, if the bank(who provides a real-feed for the broker) at any particular moment, at any second, runs low in liquidity, the spread widens. Placing a stop-loss within 5-10 pips off that line is a recipe for disaster if you trade with a market maker.

I won't trade anything lower than a 4 hr charts(with a reasonable stop) with a market maker - still, by the time you're about hit a profit target, if there's not enough liquidity, you're going to have issues getting your order filled.

If you have the cash, a better option would be trading 6e mini euro(futures) that way you will have no problems based on spread as long as you trade within sufficient market volume. But is $12.50 per tick(pip) Don't get me wrong, you might get slippage in futures but at least if you trade during normal trading hours you'll be on a safer side than using a market maker.