Can there be a strategy that only works on particular timeframes? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Is there a profitable strategy that works 80% of the time? 25 replies

Is there any hedging strategy that works in the long run? 26 replies

This particular script works with one broker, not with other? 0 replies

How to change timeframes in Mt4 to timeframes which are not supported (like 10 min.)? 5 replies

Attachments: Can there be a strategy that only works on particular timeframes?
Exit Attachments

Can there be a strategy that only works on particular timeframes?

  • #1
  • First Post: Oct 24, 2018 6:25pm Oct 24, 2018 6:25pm
Hello,

I'm testing some strategies based on price action but I'm noticing that some of them only work in particular time frames.
Example: It works great in H1 but medium to poorly in H4.

With that said, I have two question

1- Is normal to have strategies that works only in especific timeframes, or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term?

2- A strategy with works in multiple timeframes have better chance to be a good strategy in long term?
The best way to figure it out is by backtesting it yourself
  • #2
  • Oct 25, 2018 9:49am Oct 25, 2018 9:49am
Quoting tunermw
Hello, I'm testing some strategies based on price action but I'm noticing that some of them only work in particular time frames. Example: It works great in H1 but medium to poorly in H4. With that said, I have two question 1- Is normal to have strategies that works only in especific timeframes, or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term? 2- A strategy with works in multiple timeframes have better chance to be a good strategy in long term?
Not sure how long you've been trading for, but there's no such thing as a strategy in isolation. It's the trader and the knowledge he/she has accumulated that makes a successful trader, not the strategy. Therefore, if you're making money on one time frame, then that should be enough for you. If not, then look to other time frames as a way of building a more complete picture, but they should always complement each other, not conflict. The key is finding the right combination.
  • #3
  • Oct 25, 2018 11:32am Oct 25, 2018 11:32am
Quoting cat
{quote} Not sure how long you've been trading for, but there's no such thing as a strategy in isolation. It's the trader and the knowledge he/she has accumulated that makes a successful trader, not the strategy. Therefore, if you're making money on one time frame, then that should be enough for you. If not, then look to other time frames as a way of building a more complete picture, but they should always complement each other, not conflict. The key is finding the right combination.
Well I'm forex about 3 years, and accomplish nothing. It becomes really confusing to know whats works or what didnt.
The best way to figure it out is by backtesting it yourself
  • #4
  • Oct 25, 2018 1:18pm Oct 25, 2018 1:18pm
Quoting tunermw
{quote} Well I'm forex about 3 years, and accomplish nothing. It becomes really confusing to know whats works or what didnt.
I like an honest man. Have a look at my thread ' Trader's Academy ', I think there is a lot of very useful stuff on there from different people, and if there's anything you want to ask me I'll help if I can. If it's any consolation, very few people are consistently profitable after just three years, so keep at it...trading ain't easy!
  • #5
  • Oct 25, 2018 4:18pm Oct 25, 2018 4:18pm
Quoting tunermw
Hello, I'm testing some strategies based on price action but I'm noticing that some of them only work in particular time frames. Example: It works great in H1 but medium to poorly in H4. With that said, I have two question 1- Is normal to have strategies that works only in especific timeframes, or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term? 2- A strategy with works in multiple timeframes have better chance to be a good strategy in long term?

One of my beliefs is that markets look and act much the same across timeframes. If you took charts of the same market under different timeframes and just removed the axis labels so you couldn't tell which TF was which, they typically look much the same.

If you accept this then it follows a price action strategy should work similarly across all timeframes (ignoring the generally relatively bigger impact of costs in lower timeframes for the purposes of simplifying this argument).

If you have a strategy that appears to produce quite different results under different timeframes I'd suggest your sample size is perhaps too small. Do a longer test, you'll almost certainly find the results will converge.

Which TF you use is largely a matter of personal preference of how quickly to you want things to happen (things happen quicker in lower TF), and what magnitude of moves you prefer trading (higher TF will generally involve bigger absolute moves).
  • #6
  • Oct 25, 2018 6:31pm Oct 25, 2018 6:31pm
To really find out the answer, if you have spare room on your computer, run the strategy on different time frames in different MT4 terminals. That is if you are really dedicated to your strategy and want to get to the bottom of things rather than rely on the experiences of other traders.

Of course that is easier if your strategy is carried by an EA but if you are trading manually and your strategy doesn't call for a lot of trades, then it's no big deal, just take a look at the terminals once in a while and access the charts for your entry times.

You will also feel like a detective. Right? Trading isn't always about making money.
  • #7
  • Oct 27, 2018 3:31am Oct 27, 2018 3:31am
I think it can definitely be timeframe specific. Regarding a price action strategy working specifically on the H1 and not the H4, a potential explanation is that the price action pattern only has time to form on the H1 after an event or in a market session. For example it might form on H1 as everyone piles in over the frankfurt/london session, but theres only 2 x action-packed H4 candles there, so its all over before the same price action pattern can form on the H4. Another example is the systems that have a price action entry trigger on a lower timeframe after a different price action happens on a higher timeframe, or price action that only occurs on a very low timeframe after a news release.
  • #8
  • Oct 27, 2018 3:50am Oct 27, 2018 3:50am
Quoting tunermw
Hello, I'm testing some strategies based on price action but I'm noticing that some of them only work in particular time frames. Example: It works great in H1 but medium to poorly in H4. With that said, I have two question 1- Is normal to have strategies that works only in especific timeframes, or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term? 2- A strategy with works in multiple timeframes have better chance to be a good strategy in long term?
i understand what you talking about because i experienced the same before.... so answer is yes.... some strategies working great on some time frames and bad on others --- startegy can work so good with pair and so bad with other pair ... sometimes you can adjust your MM to make strategy working perfect with other time frames ---- based on my research you can have strategy working so good with 5M TF and so bad in 4H tf.. so the best thing if you have idea try to find best tf and best pair and test it very well and check previous data so you can judge on things properly . and sometimes you need to adjust few things to make your strategy working good with other time frames
  • #9
  • Oct 27, 2018 4:25am Oct 27, 2018 4:25am
If the strategy works on one time frame then it should also work on the other time frames.

Think of it this way, if you're able to flip a small and light coin with your fingers, then you should also be able to flip a larger coin with larger fingers, and even a larger heavier coin, with even larger and stronger fingers. So you'll just need to adjust the parameters of your strategy to account for the different time frames.
  • #10
  • Oct 27, 2018 9:10am Oct 27, 2018 9:10am
Of course there are strategies that work only on specific time frames. Various scalping strategies are a proof of that, usually people don't apply them to the large time frames.
  • #11
  • Oct 27, 2018 12:30pm Oct 27, 2018 12:30pm
Quoting JsCave
{quote} i understand what you talking about because i experienced the same before.... so answer is yes.... some strategies working great on some time frames and bad on others --- startegy can work so good with pair and so bad with other pair ... sometimes you can adjust your MM to make strategy working perfect with other time frames ---- based on my research you can have strategy working so good with 5M TF and so bad in 4H tf.. so the best thing if you have idea try to find best tf and best pair and test it very well and check previous data so you...
Yeah good point, I agree with you on how some strategies work on different timeframes but not others. In my experience, timeframe seems to have some effect.

But I dont quite understand how a strategy may work on some pairs but not others. Forex pairs charts look the same to me, sure they are a few outliers like TRY pairs, but generally most pairs to me have same price action charts. Can you explain further on this, thanks.

Quote
or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term?

good questions, OP
well i dont think so . I think that as long as you master a good strategy that works on a specific timeframe or 2, it can work for a long time. You may have to tweak it and improve it a bit over time, but that doesnt have to do with other timeframes. But because the markets charts can change with different world conditions.
That my theorising anyway.
  • #12
  • Oct 27, 2018 4:23pm Oct 27, 2018 4:23pm
All strategies must have
1. Context
2. Entry/Exits (Orderflow)

Intraday Trading I recommend
1. 1HR and Above
2. 5M (1M and TICKs if high IQ and very quick)

but its all redundant if you believe in macds and fibs and havent the faintest clue how to read volume, liquidity and auctions properly.
  • #13
  • Oct 27, 2018 4:29pm Oct 27, 2018 4:29pm
Quoting tunermw
Hello, I'm testing some strategies based on price action but I'm noticing that some of them only work in particular time frames. Example: It works great in H1 but medium to poorly in H4. With that said, I have two question 1- Is normal to have strategies that works only in especific timeframes, or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term? 2- A strategy with works in multiple timeframes have better chance to be a good strategy in long term?
Yeah because not all brokers have the same H4 Candlestick close. This is May be the issue.
Grind until you no longer have to introduce yourself. 4:30am club
  • #14
  • Oct 27, 2018 7:38pm Oct 27, 2018 7:38pm
Quoting tunermw
Hello, I'm testing some strategies based on price action but I'm noticing that some of them only work in particular time frames. Example: It works great in H1 but medium to poorly in H4. With that said, I have two question 1- Is normal to have strategies that works only in especific timeframes, or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term? 2- A strategy with works in multiple timeframes have better chance to be a good strategy in long term?
It’s very much possible if you are working with indicator or technical tool based trading strategy! But, if you are a news trader or price action based trader, then you can work with any time frame.
  • #15
  • Oct 27, 2018 8:01pm Oct 27, 2018 8:01pm
Quoting Fxmd
{quote} Yeah because not all brokers have the same H4 Candlestick close. This is May be the issue.
For real? It's news for me. How this is legal?
The best way to figure it out is by backtesting it yourself
  • #16
  • Oct 27, 2018 9:51pm Oct 27, 2018 9:51pm
Quoting tunermw
{quote} For real? It's news for me. How this is legal?
It’s because some brokers open based on NY time and some use GMT. So H4, H8 and H12 candlesticks may vary in shape, but over all price levels will remain constant. So if your watching for wicks or engulfing patterns for example or waiting for Candlestick close/open, you may get different results with different brokers and time frames.
https://forums.babypips.com/t/different-h4-and-h8-candlestick-chart-at-fxcm-than-others/51907/
https://www.fxtradingrevolution.com/...-chart-dilemma
Grind until you no longer have to introduce yourself. 4:30am club
  • #17
  • Oct 27, 2018 10:12pm Oct 27, 2018 10:12pm
Quoting tunermw
Is normal to have strategies that works only in especific timeframes
In the case of Export Advisors -- then "yes", of course, they behave differently in different time frames. An Expert Advisor is a simple algebraic formula where the indicator settings are equivalent to the constants in an algebraic formula. For a formula to work with a particular set of input values, then you adjust the constant (i.e. indicator setting) accordingly. Different time frames have different data, so the indicator settings must be adjusted.

Also, there is the issue of GMT+0 and GMT+2 broker servers. GMT+0 servers are 2 hours behind and, so, their data is different. This only affects the H4 time frame.
  • #18
  • Edited Oct 31, 2018 12:36pm Oct 30, 2018 9:24pm | Edited Oct 31, 2018 12:36pm
It is a math matter. A trend trade on a lower time frame is a range trade on a higher time frame. If you use a strategy that only relies on one time frame for its signals, then you will likely either be trend trading on every time frame, or range trading on every time frame. Because of the size of candles, trend trading on a higher time frame can be costly if it is not trending.

I use a multiple time frame strategy where I trade the higher time frame range as a lower time frame trend. If the higher time frame trends, then I trade its signal and ignore the lower time frame ones. Even this strategy will not work for every time frame pairing because the moving averages would be aligned differently between the two different time frames. If you trade 5M/15M you have a variable of three. If you trade 15M/1HR, you have a variable of four. If you trade 4HR/Daily, you have a variable of six. The same strategy can work, but you have to modify the math to fit the variable between time frames.

Personally, I do not consider it very wise to rely on only one time frame. It is too easy to be out-of-touch with the market movement and get yourself caught in a head fake or consolidation area that would have been easily seen occurring on a second time frame. Good Luck.
You cannot be extraordinary by being normal
  • #19
  • Nov 9, 2018 2:46am Nov 9, 2018 2:46am
Some strategies really can only work with special conditions and the timeframe is one of this important conditions. Different timeframes have different trend and patterns formations.
If you tested it, and know that it works only for one time frame, so trade it:-)
P.S. Strategy with ability to work for all timeframes is less accurately.
  • #20
  • Last Post: Edited 6:18am Nov 9, 2018 4:50am | Edited 6:18am
Quoting tunermw
Hello, I'm testing some strategies based on price action but I'm noticing that some of them only work in particular time frames. Example: It works great in H1 but medium to poorly in H4. With that said, I have two question 1- Is normal to have strategies that works only in especific timeframes, or this divergence in results between timeframes is a proof that this strategy will not going sustentable in a long-term? 2- A strategy with works in multiple timeframes have better chance to be a good strategy in long term?
This is a simple - and I believe well known multi timeframe strategy. Look for a trend on the 4HR on a currency pair or index and take entries on the 15min pullbacks using whatever ma's you find act as support/resistance on the 15min. Here is an example of the pa on EUR/USD over the last couple of days.
Attached Image (click to enlarge)
Click to Enlarge Name: EUR 15.PNG Size: 36 KB
Attached Image
0 traders viewing now