name of the game is chase the trend :
did anyoe notice the cable is now CARRY trade
TEB
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DislikedThe simplest and safest method to use is the 80/20 rule with at least 2 time frames. Use the 4H as your lead indicator and follow the 4H with any or all of the 15/30/1H (or use the escalator)...longer the time frame the more risk of larger draw downs.
I am working on a consolidated document that will hopefully make it a whole lot easier to follow it all.Ignored
Disliked4 Hr is your main signal when it breaks 20. You definitely don't want the 4H above 80 or below 20 entering a trade. You then want at least one other or two is better time frames to be somewhere in the 20-38.2 zone headed up.
If you are using the 1H, better to wait for it to close. Having said that, the 1H is made up of 4 x 15M or 2 x 30M periods. Both of these give you the information of the partial 1H....so say they are both headed up and low in the low zone then it is probably pretty safe to enter before the 1H closes as long as it appears to be headed up.
One of the most difficult things to beat in trading stochastics is that "panic" that you will enter too late. Trades are lost almost always on too early an entry. This is the hardest part of using stochastics because you get to a point of anticipating their moves before they happen...and it burns you. To trade stochastics requires a zen garden next to your computerIgnored
Disliked
On another note, Spud, have you stopped looking at the Elasticity, Convergence, Tighting of the two stochs on the same window? I finally managed to get around to putting them on my charts last night, and WOW. With proper trade selection, it seemed to have a very good success rate. Whether it was the 4H or the 5M time frame - when both stoch converge in the 80/20 zone, after a period of elasticity, and move in tandem, with the close of the trigger candle being in the direciton of the trade (ie red for short and blue for long), the success rate is very good.
Ignored
DislikedI'm still studying everything that is in here, but trying to keep this thread focused on the simple ways to win and not get everyone confused.Ignored
DislikedThanks Spud thats great, A little help with establishing the trend for the day. It is 06-00bst GBP/USD,
Daily chart the 5/3/3 Turned just above 20 pointing UP now at 50.
14/3/3 Turned below 20, pointing up now at 37,
4 hour chart both the 5/3/3 and the 14/3/3/ are above 80.
The 1 hour chart very much like the Daily both comimg up from the 20 level.
Do I read that as an UP trend for the day but with a possible pull back first?
I really do appreciate your help.Ignored
DislikedI only use MetaTrader so I can't help you with another platform. However, I am sure there are others that use other platforms that can help? What platform are you using?
I'll put up some bad scenerios when I get a chance.Ignored
DislikedI trade for a large financial institution and personal accounts and have access to some powerful programs purchased or developed by me. I have tested this and other strategies at length. The EA for MTF stochastic's will reveal high win % (75% to 92%) and drawdowns of varying degrees (25% to 75%)depending on the stop loss and take profit paramenters you utilize. As the author has defined if you take small pip gains the win% goes up dramatically. The issue with this and all good trading plans is how you handle the money management and the psychology of investing. If you do in fact produce an EA just remember there are BIG issues with the backtesting of MT4 to the fact that most professional traders in this forum only rely on the EA to give them approximate estimates, then only live forward testing is good enough to satisfy the "real results" statistics.Ignored
Dislikedimho, what you suggest is useful to know, but I still think an EA is not worth the effort. As I am sure you know there is no "set it and forget it" program. All profitable trading robots require regular intervention by a skilled trader.
Instead of an EA to trade for you how about one that just gives alerts. Then the trader can make his own judgements about whether to enter or not.
I haven't found an EA that can be written to cover all the nuances of Stochastics. The meaning of the word stochastic is randomness. If we try to tune an EA to notice these nuances then you risk high drawdown. If we tune it to take only the pure technical setups you miss many other opportunities.
Personally I have a drawndown threshold of 20%. Since establishing this negative limit I have seen my trading improve dramatically. Beyond 20% is out of my comfort zone esp. with my hard earned pesos.
I think that what we should be focused on here is beefing up our skills with stochs which is what Spud has done masterfully from the beginning.Ignored
DislikedI trade for a large financial institution and personal accounts and have access to some powerful programs purchased or developed by me. I have tested this and other strategies at length. The EA for MTF stochastic's will reveal high win % (75% to 92%) and drawdowns of varying degrees (25% to 75%)depending on the stop loss and take profit paramenters you utilize. As the author has defined if you take small pip gains the win% goes up dramatically. The issue with this and all good trading plans is how you handle the money management and the psychology of investing. If you do in fact produce an EA just remember there are BIG issues with the backtesting of MT4 to the fact that most professional traders in this forum only rely on the EA to give them approximate estimates, then only live forward testing is good enough to satisfy the "real results" statistics.Ignored