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Attachments: Daylight Trading Strategy
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Daylight Trading Strategy

  • #1,381
  • Sep 6, 2021 4:37am Sep 6, 2021 4:37am
Quoting LauraT
{quote} Nice start. Don't be afraid to take partial profits off the table and leave a little on to see where it goes. Good remedy for those unable to hold onto winners or where time/patience is an issue.
Dear Laura,
My problem is not entries with your strategy I have superb entries with the setup, but the problem is the exit. We have optimal entries but how about optimal exits, I have tried to find exits but I always lose a massive amount of pips.

Please Laura can I have your take on this.
Below is Dow Jones from Asian Session to European Session.

Ist Screenshot is the entry on Dow
2nd Screenshot is Trade hitting my TP and just continuing with the trend even as I am writing this I should have not exited , Although my TP was close to a resistance level. But still how can we really milk the market??
Attached Image(s) (click to enlarge)
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  • #1,382
  • Sep 6, 2021 5:23am Sep 6, 2021 5:23am
Quoting jamzzz
{quote} Dear Laura, My problem is not entries with your strategy I have superb entries with the setup, but the problem is the exit. We have optimal entries but how about optimal exits, I have tried to find exits but I always lose a massive amount of pips. Please Laura can I have your take on this. Below is Dow Jones from Asian Session to European Session. Ist Screenshot is the entry on Dow 2nd Screenshot is Trade hitting my TP and just continuing with the trend even as I am writing this I should have not exited ,...
If you are able to actively manage your trades, you will not have any need to automatically exit at a resistance level. Instead, you can watch how price reacts when it reaches that level, as it will sometimes just blow right through.

In terms of staying in a trade for the maximum amount of time, what you might find helpful is to use the Daylight Standard settings on the 5m timeframe and trade the cross of the -50 line. See chart below - you would still be in the long trade.

Attached Image (click to enlarge)
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  • #1,383
  • Sep 7, 2021 1:35pm Sep 7, 2021 1:35pm
Quoting LauraT
{quote} If you are able to actively manage your trades, you will not have any need to automatically exit at a resistance level. Instead, you can watch how price reacts when it reaches that level, as it will sometimes just blow right through. In terms of staying in a trade for the maximum amount of time, what you might find helpful is to use the Daylight Standard settings on the 5m timeframe and trade the cross of the -50 line. See chart below - you would still be in the long trade. {image}
Thanks Laura you are the best, I always love your insightful advice. I will update you on my quest to find the perfect exit.
  • #1,384
  • Sep 14, 2021 2:59am Sep 14, 2021 2:59am
Quoting LauraT
Hi everyone, When I released Roadmap ( https://www.forexfactory.com/thread/...o-read-markets ), I was conscious that it was a strategy which required a fair amount of discretion/judgement. I still receive many messages from people who are successfully trading using Roadmap, which is great. However, I wanted to also provide one of my other strategies for those who might prefer a more rules-based approach. Welcome to Daylight. This is a strategy with clear entry rules, various exit options and no non-standard indicators....
Arrows are not showing, please send me the tpl with arrow
  • #1,385
  • Sep 15, 2021 5:25am Sep 15, 2021 5:25am
ME and daylight and US30 on M5 chart
Attached Image (click to enlarge)
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  • #1,386
  • Sep 15, 2021 8:35am Sep 15, 2021 8:35am
Quoting Ndabezinhle
ME and daylight and US30 on M5 chart {image}
Perfect Sell entry, but missed spike for a perfect exit. Daylight rules met , profitable trade on overall
Attached Image (click to enlarge)
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  • #1,387
  • Sep 17, 2021 10:35am Sep 17, 2021 10:35am
An easy 42 pips on eurusd:
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  • #1,388
  • Sep 17, 2021 10:37am Sep 17, 2021 10:37am
A buy earlier on us100
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  • #1,389
  • Sep 20, 2021 1:30pm Sep 20, 2021 1:30pm
So Gold H1 today. Having a problem getting the chart image I want but we have been in a downtrend until higher low when it broke the daily open to the long side and retested it. Still below 200MA though. Williams had crossed 50 with daylight. Laura do you think its a sound decision to go long after the retest? I note price has reached ADR high but fell short so far of yesterday's high. If I had taken the trade I think I would take profit after the close of the candle which left a wick falling short of yesterdays high.

https://charts.mql5.com/30/50/xauusd...ding-ltd-2.png
  • #1,390
  • Sep 21, 2021 3:47am Sep 21, 2021 3:47am
Quoting Zimbinga
So Gold H1 today. Having a problem getting the chart image I want but we have been in a downtrend until higher low when it broke the daily open to the long side and retested it. Still below 200MA though. Williams had crossed 50 with daylight. Laura do you think its a sound decision to go long after the retest? I note price has reached ADR high but fell short so far of yesterday's high. If I had taken the trade I think I would take profit after the close of the candle which left a wick falling short of yesterdays high. https://charts.mql5.com/30/50/xauusd...ding-ltd-2.png...
Yes, looks fine.

ADR is much more a factor for currencies. Gold and indices etc adhere much less to it, so I'd be comfortable ignoring it if the other conditions were right.
  • #1,391
  • Sep 21, 2021 1:24pm Sep 21, 2021 1:24pm
Quoting LauraT
{quote} Yes, looks fine. ADR is much more a factor for currencies. Gold and indices etc adhere much less to it, so I'd be comfortable ignoring it if the other conditions were right.
Many thanks Laura & for info about ADR.
  • #1,392
  • Sep 29, 2021 1:59pm Sep 29, 2021 1:59pm
There is often divergence before good price move. I am wondering whether to make it a trading rule that there is divergence on M15 or H1 before pulling the trigger. So Gold H1 chart

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  • #1,393
  • Oct 4, 2021 10:29am Oct 4, 2021 10:29am
Quoting LauraT
Here's a trade I'm currently in. The first two arrows are potential entry points if you were awake. The third arrow is my entry, which I took soon after I got to my trading desk. {image}
This is first page stuff, so I hope this wasn't covered before, but why aren't these set ups I found (marked in black in my image) valid for example? Why the spots I marked do not have a red arrow above them? I assume those were just overlooked? because they seem valid to me
Attached Image (click to enlarge)
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Another thing about the same image, if we were to take the first set up it would've been a loss right? Because at the point directed by the black arrow it would've hit 2 exit points, hence two reasons to exit the position
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Of course I don't expect Laura to answer it, I welcome any input from anyone using this strategy
  • #1,394
  • Oct 4, 2021 12:05pm Oct 4, 2021 12:05pm
Quoting 2muchbutter
{quote} This is first page stuff, so I hope this wasn't covered before, but why aren't these set ups I found (marked in black in my image) valid for example? Why the spots I marked do not have a red arrow above them? I assume those were just overlooked? because they seem valid to me {image} Another thing about the same image, if we were to take the first set up it would've been a loss right? Because at the point directed by the black arrow it would've hit 2 exit points, hence two reasons to exit the position {image} Of course I don't expect Laura...
Its better you stick to at least H1 if not you will just be whipsawed out of good trades, you still need price action though is the market ranging or setting up LHs and LLs or vice-versa? Based upon your analysis you take a loss or stick with the trade.

Anything below H1 you will be taken to butchers by the Market no matter how good you are. Be patient and stick with the larger timeframes and you will get spectacular trades. Slow and steady bags you pips.

But for Indices you can still use M5.
Just in case you are still confused on the state of the market, view a higher timeframe.
  • #1,395
  • Oct 4, 2021 1:02pm Oct 4, 2021 1:02pm
Quoting 2muchbutter
{quote} This is first page stuff, so I hope this wasn't covered before, but why aren't these set ups I found (marked in black in my image) valid for example? Why the spots I marked do not have a red arrow above them? I assume those were just overlooked? because they seem valid to me {image} Another thing about the same image, if we were to take the first set up it would've been a loss right? Because at the point directed by the black arrow it would've hit 2 exit points, hence two reasons to exit the position {image} Of course I don't expect Laura...
On the places you have marked for entry, there was no daylight on the bottom indicator, the one that would have been a loss on the second image you could either stay with it because the bottom indicator hadn't crossed, or you could have taken the loss and then won the next two.
  • #1,396
  • Oct 4, 2021 2:14pm Oct 4, 2021 2:14pm
Attached Image (click to enlarge)
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I'm not an expert on divergence, so i don't know if this example strictly counts as divergence, but together with 50 cross it's worked for at least 20 pips now locked in. A bit late to the party perhaps.

So Gold M15
  • #1,397
  • Oct 4, 2021 4:14pm Oct 4, 2021 4:14pm
Quoting Zimbinga
{image} I'm not an expert on divergence, so i don't know if this example strictly counts as divergence, but together with 50 cross it's worked for at least 20 pips now locked in. A bit late to the party perhaps. So Gold M15
I am not expert myself but I think your missing the whole point of divergence, divergence occurs when an indicator diverges from the market structure i.e. the market is an uptrend whilst the indicator diverges into a downtrend and vice-versa.

Attached is GBP/USD Tick1000 was making HHs then Daylight started making LHs, giving you a heads up for the massive downtrend to later come into play.
Second Chart is XAU/USD M15 with the same logic

Thats my view on Divergence Please correct me if I am wrong.
Attached Image(s) (click to enlarge)
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  • #1,398
  • Oct 4, 2021 4:39pm Oct 4, 2021 4:39pm
Quoting LauraT
{quote} Yes, looks fine. ADR is much more a factor for currencies. Gold and indices etc adhere much less to it, so I'd be comfortable ignoring it if the other conditions were right.
Dear Laura,
I painstakingly tried several twists and kinks to Daylight and I think I have come up with something workable. it just beats your current settings with entries and exits. I didnt cherry pick this chart, Its just the same thing over and over again in my backtests. Have a look at it and let us have your view please.

Attached is GBP/CHF H1 of now
Attached Image (click to enlarge)
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  • #1,399
  • Oct 4, 2021 4:47pm Oct 4, 2021 4:47pm
Sorry I forgot to point out
GBPCHF H1 Chart on the left is my update to Daylight
GBPCHF H1 Chart on the right is Daylight standard settings
  • #1,400
  • Oct 4, 2021 4:47pm Oct 4, 2021 4:47pm
Quoting jamzzz
{quote} I am not expert myself but I think your missing the whole point of divergence, divergence occurs when an indicator diverges from the market structure i.e. the market is an uptrend whilst the indicator diverges into a downtrend and vice-versa. Attached is GBP/USD Tick1000 was making HHs then Daylight started making LHs, giving you a heads up for the massive downtrend to later come into play. Second Chart is XAU/USD M15 with the same logic Thats my view on Divergence Please correct me if I am wrong. {image} {image}
That's useful, thanks for that.
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