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Straightforward Bands with Stochastic

  • #21
  • Jun 15, 2023 4:09pm Jun 15, 2023 4:09pm
Quoting Ethan1991
Hello everyone I take the strategy to a indicator {file}
does it look profitable
  • #22
  • Jun 15, 2023 4:33pm Jun 15, 2023 4:33pm
Look at this criteria -

when bands finally set apart, wait for price to come back and touch the 72bands, but make sure the 12 bands don’t. Draw a short trend line, use stoch, or whatever and enter 1:1 with 72bands

try to touch every candle with trend line

but only take the first retest and wait for bands to touch again before taking another setup.

this is like a super safe break and retest, making sure you’re on the right side
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  • #23
  • Jun 15, 2023 4:43pm Jun 15, 2023 4:43pm
There’s tons of great setups on M1, not finding many losers
  • #24
  • Jun 15, 2023 5:17pm Jun 15, 2023 5:17pm
Based on observation on a 4-hour EURUSD chart, I modified the strategy slightly. The edits appear in the first post of the thread, and I'll explain here.

First of all, we'll miss a lot of good buy signals if we wait for both Stochastic lines to drop below 20 in an uptrend.
And also, for sell signals, if we wait for both Stochastic lines to rise above the 80 level, we'll miss good opportunities.

Instead, for long signals, wait for only the K% line to drop below 65, then see %K cross above %D.
For short signals, wait for only the K% line to rise above 35, then see %K cross below %D.

//| For long trades, we look for the %K value to cross above
//| the %D value after the %K value has dropped below the 65 level.
//|
//| For short trades, we look for the %K line to cross below
//| the %D value after the %K value has risen above the 35level.
Open to new approaches.
  • #25
  • Jun 15, 2023 5:24pm Jun 15, 2023 5:24pm
In a lot of trends I looked at on 4-hour charts, there are 3 or 4 good signals within each trend. So the EA I've been working on sets MAX_TRADES to 4.

Since I'm new to MQL5, I had to do a little research to find simple code that issues an alert just once per signal (I coded it to play MT4's alert.wav 20 times with 2-second pauses between each chime - this should be enough to wake a person up if they're sleeping within earshot of their computer; if not, the delay and number of repeats are coded as parameters the trader can set to desired values), rather than chiming incessantly as long as the signal is seen.

Speaking of the EA, it is not yet an automatic trading EA. It just gives audible alerts when the signals are seen.
Open to new approaches.
  • #26
  • Jun 15, 2023 5:39pm Jun 15, 2023 5:39pm
You can see the good entry signals in the latest EURUSD uptrend. 15 Jun 2023.
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Open to new approaches.
  • #27
  • Jun 15, 2023 5:59pm Jun 15, 2023 5:59pm
Quoting MetaCoder
In a lot of trends I looked at on 4-hour charts, there are 3 or 4 good signals within each trend. So the EA I've been working on sets MAX_TRADES to 4. Since I'm new to MQL5, I had to do a little research to find simple code that issues an alert just once per signal (I coded it to play MT4's alert.wav 20 times with 2-second pauses between each chime - this should be enough to wake a person up if they're sleeping within earshot of their computer; if not, the delay and number of repeats are coded as parameters the trader can set to desired values),...
Interesting, looking into it now - thanks for your hard work!!
  • #28
  • Jun 15, 2023 8:24pm Jun 15, 2023 8:24pm
Quoting MetaCoder
Based on observation on a 4-hour EURUSD chart, I modified the strategy slightly. The edits appear in the first post of the thread, and I'll explain here. First of all, we'll miss a lot of good buy signals if we wait for both Stochastic lines to drop below 20 in an uptrend. And also, for sell signals, if we wait for both Stochastic lines to rise above the 80 level, we'll miss good opportunities. Instead, for long signals, wait for only the K% line to drop below 65, then see %K cross above %D. For short signals, wait for only the K% line to rise above...
for a buy, when price drops below 65...if it continues to drop below 35 level as well, do we still take a cross?
  • #29
  • Jun 15, 2023 8:26pm Jun 15, 2023 8:26pm
Looks like you've got an excellent 1-minute strategy!

"...wait for price to come back and touch the 72bands, but make sure the 12 bands don’t..." - seems really good!
Open to new approaches.
  • #30
  • Jun 15, 2023 10:58pm Jun 15, 2023 10:58pm
Quoting LongHillAve
{quote} for a buy, when price drops below 65...if it continues to drop below 35 level as well, do we still take a cross?
Yes definitely.
Open to new approaches.
  • #31
  • Jun 16, 2023 5:44am Jun 16, 2023 5:44am
Quoting MetaCoder
A trade entry approach I recently saw looks quite good. It was presented on a 4-hour chart. It goes like this. //| 1) Create two pairs of moving average indicators as follows: //| a) 72-period Simple Moving Average of the highs //| b) 72-period Simple Moving Average of the lows //| c) 12-period Exponential Moving Average of the highs //| d) 12-period Exponential Moving Average of the lows //| //| This sets up two bands or channels. //| //| When the 12-period moving average band sits above the //| 72-period band, we consider the trend to be up. When...
Thanks for your thread. How is your stoch build (close/close or high low) and how about the stoch MA method?
  • #32
  • Jun 16, 2023 8:49am Jun 16, 2023 8:49am
It's a simple low/high stochastic.
Open to new approaches.
  • #33
  • Edited Jun 17, 2023 10:40am Jun 16, 2023 3:52pm | Edited Jun 17, 2023 10:40am
Playing around with TDI 50 level crosses instead of Stochastic, just find it to be more accurate.


This trade was nice, as price made a nice indecision candle, and on the TDI the Red line crossed the Blue line and the 50 level all on the same candle.

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  • #34
  • Jun 16, 2023 3:55pm Jun 16, 2023 3:55pm
I'm not going to review al the trades from the prior day as well, but all winners. Helps we were in a trend
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  • #35
  • Edited Jun 17, 2023 10:40am Jun 16, 2023 5:07pm | Edited Jun 17, 2023 10:40am
We have on setup on the 15th, and one on the 14th. EURUSD was on a nice uptrend, and this system caught 2 really nice bounces. These setups are the only ones i'm posting from now.

USING TDI Red/Blue/50 cross instead of Stochastic cross

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  • #36
  • Jun 17, 2023 1:32am Jun 17, 2023 1:32am
This looks good. Thanks for posting.
  • #37
  • Jun 17, 2023 10:42am Jun 17, 2023 10:42am
Don't think we have to wait for price to come back to 72 bands if we use TDI crosses, because its so accurate. We can take every cross as long as bands are separated like original system. The problem with the stochastic, is that there's many false entries. Also, you're always guaranteed one loser at the end of every trend. The TDI cross is more robust, and a better filtering condition. Take a look at it MetaCoder when you can.
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  • #38
  • Jun 17, 2023 1:49pm Jun 17, 2023 1:49pm
You are onto something for sure, LongHillAve.

Any signal will sometimes lead to losing trades. On the other side of things, great entry opportunities can be missed.

So far this thread has been defining entry signals but not a full strategy.

I haven’t thought much about trading for years, until the last week. At the moment I’m considering a longer term trading style where I might stay in positions for up to a month, as long as trades are staying in profit or until I see great exit points.

Looking at 4-hour charts over the last few years, I see places where the market quickly goes against these entry points. That’s just how things are because all kinds of things happen.

If you’re scalping short term, LongHillAve seems to have a great understanding of superb entry points for that style so the data he is presenting is worth looking at!

The style I’m thinking about is to add to winning positions as new signals appear in the direction of the winners, and use trailing stops as smart as I can. Also, I would place initial stops near recent highs and lows to get out of positions when the market goes against the signal. And then patiently wait until my EA alerts me to the next signal.
Open to new approaches.
  • #39
  • Jun 19, 2023 2:44pm Jun 19, 2023 2:44pm
This strategy as defined so far is good for trend following.

I’ve been putting time into examining how it can be extended to address sideways market action as well.

At first I thought it would work to think in terms of detecting when sideways action is happening versus when trending action is happening, and to “shift gears.”

I now think there is a way to interpret the trading signals in a blended way that would work well for all market action.

This started when I saw signals that catch major market reversals.

Stochastic crosses at high and low levels are worthy of attention. With confirmation (I’ll explain), they can get us into the market at significant tops and bottoms, in the profitable direction.

85 and 15 for the %D value look like good Stochastic crossover levels.

Confirmation is %D passing below 80 and above 20. There are fake-outs so have yet another alert for movement to 75 and 25, or don’t alert at 80 and 20 but do alert at 75 and 25. The crossover entry then involves a sequence of two events:

  1. Stochastic crossover.
  2. %D break below 75 or above 25.


This signal gave many entries into big reversals where a major bottom or top was caught.

Sometimes the market will stop out such an entry, only to later repeat the signal for a great entry. So, welcome the stop-outs, don’t expect a repeat, but do take the trade if the signal repeats.

IMPORTANT: If already in a profitable position, such signals suggest these possibilities:

  1. Use as an exit and wait for next signal.
  2. Use as an exit and re-enter. If the profitable position was opened under trend criteria, you’ll probably open in the opposite direction.
  3. Tighten the trailing stop.

This signal should generate an alert irrespective of band separation.

Sometimes it happens during band separation and indicates trading with the current trend.

Other times it happens counter to the trend suggested by band separation.

Other times it happens when the bands are not separated.

Open to new approaches.
  • #40
  • Jun 19, 2023 2:49pm Jun 19, 2023 2:49pm
The trend following signals described in the first post are still valid. When these signals are seen, the market is doing something very different from when the reversal signals are seen.
Open to new approaches.
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