H4 Hull MacD Risk Management

My first intention is to NOT waste anyone's time. I will attempt to make my explanation as simple as possible. After reading the first few posts, you should know if you have interest, or not. For those that decide to have a closer look, please don't be shy about doing your own testing and publishing your findings.

I would like to keep this as simple as possible. What I've been working on does NOT take many trades (Perhaps 1-2 weekly, per pair), and it will miss some trades as well. The saving grace is the fact that losses should be minimized.

All are welcome. Constructive Criticism is Always Appreciated. I only ask that any comments are made out of respect.

Thanks,
Darryl

I’ve been testing H4 charts (Only) for some time, and plugged in a specific trade using Hull MacD, with settings of 22, 34, 9.

The reason I like H4 is it seems to pick up daily momentum quite consistently.

Once I get a signal, I put in a pending order 10 pips beyond signal candle. If the order is not taken within the time span of 2 more H4 candles, I cancel the order, assuming the momentum has ceased.
• In my observations, it's not unusual for stop runs to be less than 10 pips (except on Gbp pairs), so this 'Filter' eliminates many losing trades.

For now, I open to trading all pairs except these:
• GbpXxx
• EurNzd
I do still like to trade EurGbp, provided no major Gbp news is approaching.

Some testing, points to these set ups being OK to hold over the weekend. If you choose to do this, it would probably be best to reduce the size of these trades.

OK, now to the meat and potatoes:
• Initial SL averages about 35-55 pips. TP is set to 150, just in case a big move happens whilst sleeping. This can allow me to manage trade once I’m back at work on the charts.

To offer further explanation of how to enter a trade, take a look at chart posted above.

• As soon as MacD_Hull, paints a different colored bar, on close of candle (color change is not Green to Red, but once thicker Red turns Amber, or thicker Green, turns pale Green), this gives you your Signal Candle.

• Now, simply enter a pending order 10 pips beyond High or Low of candle. Of course always be aware of pending news which could spike price enough to take you into a losing trade.

• As mentioned above, if pending order fails to trigger by the close of two more candles, cancel you order. Here I assume momentum has not continued.

• I have not seen a good place for a second entry opportunity yet. Chart below shows what I mean. (btw chart below is H1, only because it shows perfect set up, and I was too lazy to continue looking )

Another situation that I would avoid taking a trade on a signal candle, is if that candle was exceptionally larger than most others.

If the first bar following signal candle, was a retrace, and a 10 pip breach occurred a reasonable length of time following, I might reconsider because overall momentum could be robust enough to support further movement.

I made this ChfJpy Entry last Wednesday (Nov 15). I spotted trade late so actually got a much better entry @ 114.35. Real entry, 114.16, would have also been a great trade.

Depending on how volatile a pair is, I may take 1/2 off @ about 40+ pips. Less volatile, maybe 25-30 pips. Also might move SL at this point.

very interesting...........subscribed and good luck with your thread!

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Thanks. I'll be posting set ups, during the week if they show up. Thursday & Friday are US holidays, so I doubt I'll post much after late Tuesday.

I had 8 trades last week. One was BE. The other 7 netted 360 pips. I used 2 positions on each and took off some between 25 & 50 pips. Several Euro pairs set up late on Friday, but most were already significantly beyond their daily range, so I did nothing. Good thing too. They would have all lost me $.

subscribed!

NzdUsd Pending:

UsdJpy may be setting up later today.

Here are 5 of 8 trades from last week. All opened on Wednesday, and closed by Friday. This is from a small live account, using Oanda's proprietary platform.

Ujsdjpy trade Triggered as $ strength grows. Will be watching NzdUsd closely.

Added 2nd UJ position because I had trade size halved to accommodate profit taking entry.

CadJpy just showed up on my radar. It will be another 2 hours before I would put in a pending order. Your H4 charts may differ from mine. I usually use NY Closing charts (US Eastern Standard Time) for analysis. Since no US brokers use this time I have a TradersWay demo.

First Chart is H1 to show more price detail. 2nd is H4.

AudJpy setting up. Pending order set.

Weekly Trend Line visible about 60 pips to the north.

NzdChf Unlikely Set up. Price going the wrong way.

NzdJpy Possible. Watching Nzd closely. It appears to be fairly strong today. Could just be profit taking. Yen remains weak.

Thanks for the Headsup!! Let me ask, I know you set your TP to 150 pips............but do you ever get out early...and or move your SL to BE?

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Yes and Yes.

I still like using S/R for my areas of interest. Once i reach somewhere between 25-50 pips profit, I remove 1/2 the trade, and adjust my SL to either BE or somewhere much closer to entry, so as to still have profit, should price retrace to knock me out.

Setting initial TP to 150 allows for runaway price whilst I snooze. If you look at post #5, I ended up closing that @ +87. During that fall in price, I trailed my stop at about 55 pips.
Price had already gone beyond other resistance zones, and it was Friday. I ended up missing out on about 40 pips, but I don't really care. I can't trade in hindsight.

Canceled NzdJpy after failure to breach Buy Stop, after 8 hours.

Am waiting for this to fill, CHF pairs weak today.....and NZD is above the Daily Pivot Line