Enter EUR/USD short 1.3591.
SL: 1.3645 TP: 1.3510
SL: 1.3645 TP: 1.3510
- #5,629
- Edited 5:26pm Jul 5, 2007 3:48pm | Edited 5:26pm
Hello Phillip,
I'm a candlestick pattern fan. Especially Engulfing and Star pattern.
And i found that your MACD setting confirm good signal.
So I try to combine your MACD and my favorite pattern and backtesting it for the last 5 month. And I found the result is amazing even when we follow it blindly (ignoring S/R, Trendline, MA's).
I attach the results of the system which I develop using you MACD setting and combined with Engulfing and Star pattern. Any suggestions will be appreciated.
Aldhy
Using what you showed us, I 'transplanted' it to the EURUSD Daily Chart and...adding the ultimate filter of all, viz. TREND DIRECTION (which in EU's case is definitely UP!!Hence I only took BUY signals and left out counter-trend/SELL signals completely) discovered the following:
1-As of the 1st Jan 2007, there were 13 BUY signals, of which only 2 were losing trades and one (#7) was BE!
2-There were +945 pips up for grabs during this period.
For traders unable to sit in front of their computers all day,this is onehelluva bonanza! But in your 4hr examples, you used SL =30 and exit when price shows contra signal.I used tight SL=50 and exit also on contra signal.This tight SL would've made a difference to Trade #12.
if we let #7 run ,because the stop loss wasn't hit we could've made about 70 pips, but to stick to prescribed exit rules,let's call it BE.
NB-Position traders (add to their profitable positions) would've flourished using your filter!!
Once again, thank you for showing us your discovery!
TP counted at best result,just like your 4 hr examples.
I'll try and get around to checking this out on other pairs as well.
Thanks for the great indicator,Mister Ed!
I see now that some of my Bullish Engulfing Patterns weren't Bullish Engulfing Patterns after all!!
Got most of them though, the others were also just touch and go!!LOL!!
Candlesticks are,in my opinion, still the best indicators of market emotion, as Phillip calls it.
You can check out http://www.candlestickforum.com for free info on candlesticks!Especially the 12 major candlestick patterns.
Wishing you many pips!
Doji Star
I see now that some of my Bullish Engulfing Patterns weren't Bullish Engulfing Patterns after all!!
Got most of them though, the others were also just touch and go!!LOL!!
Candlesticks are,in my opinion, still the best indicators of market emotion, as Phillip calls it.
You can check out http://www.candlestickforum.com for free info on candlesticks!Especially the 12 major candlestick patterns.
Wishing you many pips!
Doji Star
- #5,634
- Jul 5, 2007 7:14pm Jul 5, 2007 7:14pm
Hello sindutzz and thank you for the examples you showed all of us using Engulfing and Star candlestick patterns as a kind of a 'filter' for Phillip's MACD system!Well done, you're to be commended for your efforts,like Phillip said.
Using what you showed us, I 'transplanted' it to the EURUSD Daily Chart and...adding the ultimate filter of all, viz. TREND DIRECTION (which in EU's case is definitely UP!!Hence I only took BUY signals and left out counter-trend/SELL signals completely) discovered the following:
1-As of the 1st Jan 2007, there were 13 BUY signals, of which only 2 were losing trades and one (#7) was BE!
2-There were +945 pips up for grabs during this period.
But in your 4hr examples, you used SL =30 and exit when price shows contra signal.I used tight SL=50 and exit also on contra signal.This tight SL would've made a difference to Trade #12.
if we let #7 run ,because the stop loss wasn't hit we could've made about 70 pips, but to stick to prescribed exit rules,let's call it BE.
NB-Position traders (add to their profitable positions) would've flourished using your filter!!
Once again, thank you for showing us your discovery!
TP counted at best result,just like your 4 hr examples.
I'll try and get around to checking this out on other pairs as well.
DojiStar,
you read my mind!!!! After reading Sindutzz post (I was at my office) I was planning to do exactly what you did: take an E/U chart, see how this filter performed on the daily. So thank you very much for your efforts and for saving me time!!!
Being a daily trader due to my full - time job, this could be an excellent way of applying Phillip's method. I am going to do the same excercise with the Cable and the us/Jp, and if the results are as promising as I believe they will be,I will forward test it for some time and jump into the live arena again.
- #5,637
- Edited Jul 6, 2007 1:29am Jul 5, 2007 7:48pm | Edited Jul 6, 2007 1:29am
DojiStar,
you read my mind!!!! After reading Sindutzz post (I was at my office) I was planning to do exactly what you did: take an E/U chart, see how this filter performed on the daily. So thank you very much for your efforts and for saving me time!!!
I'm posting daily charts for GBUSD and USDJPY.Remember, though, these are only 'following the trend' trades. I might also have made one or two mistakes and I didn't go into great detail, how many pips won/lost, etc.Just shows winning trades and losing trades.GU results disappointed me though.Also like,last time,SL is = 50,
Also posting USDCHF trades, BUT i made a mistake with the trend-direction!!
It turned out to be profitable, though.Keep me posted as to your results.Good luck and many pips to you.
I know this seems a little cliched and most of us have heard it a thousand times before, but,I think the best thing we as traders trading Phillip's wonderful strategy can do is try and let our profits run!ESPECIALLY ,of course if it's running with the trend.If I had a EURO (heck,even a yen!) for every time I grabbed profits instead of letting the sucker run,I'd be a full-time trader by now!!We need to bring out the position trader in us all and keep our 'trend-following' profitable trades open a tad longer.Hopefully this will allow us to add to our position as the trend runs.This is easier said than done,but this is what I'm striving towards.
EXAMPLE: I went long EU on 13 June,22 June and 29 June 2007,but I grabbed the profits(all in vicinity of 50-70 pips).Had I kept all of those positions open, only to close them during choppy EURO and Sterling interest rate news today,for instance,I'd be standing on just over 600 pips total profit after just three trades.
But,alas,I grabbed my +-150-170 pips and ran...Of course any profitable trade is a good one in my opinion, but when I see how much I;m leaving on the table it makes me ...well...sad/angry/upset,etc. because you know very well you should be minimizing your losses and maximizing your profits to stand a chance in this game
Anyway, enough of the rant,we're improving little by little everyday right?good luck to everyone
EXAMPLE: I went long EU on 13 June,22 June and 29 June 2007,but I grabbed the profits(all in vicinity of 50-70 pips).Had I kept all of those positions open, only to close them during choppy EURO and Sterling interest rate news today,for instance,I'd be standing on just over 600 pips total profit after just three trades.
But,alas,I grabbed my +-150-170 pips and ran...Of course any profitable trade is a good one in my opinion, but when I see how much I;m leaving on the table it makes me ...well...sad/angry/upset,etc. because you know very well you should be minimizing your losses and maximizing your profits to stand a chance in this game
Anyway, enough of the rant,we're improving little by little everyday right?good luck to everyone
- #5,639
- Jul 5, 2007 10:31pm Jul 5, 2007 10:31pm
Then this ought to make your day,Alcastro!
I'm posting daily charts for GBUSD and USDJPY.Remember, though, these are only 'following the trend' trades. I might also have made one or two mistakes and I didn't go into great detail, how many pips won/lost, etc.Just shows winning trades and losing trades.GU results disappointed me though.Also unlike,last time,SL is no longer = 50,but = Weekly ATR value of that pair.Something I learnt from Jacko,the trend-trade master.
Also posting USDCHF trades, BUT i made a mistake with the trend-direction!!
Keep me posted as to your results.Good luck and many pips to you.
DOJI, you are absolutely right...you made my day!!!!! Just when I was ready to spend a loooong night backtesting !!!
And you are right again...G/U looks bad. I'll backtest it and see if my conclusion is the same.
Thanks for this.
- #5,640
- Edited 2:00am Jul 6, 2007 1:27am | Edited 2:00am
CORRECTION: stop loss on "backtesting" Daily MACD system with candlestick filter was actually 50 not the weekly ATR as I said before.Interesting also that in many cases when using Engulfing and Star Candlestick "filter", NOT THAT THE SYSTEM REALLY NEEDS A FILTER,but sometimes I feel I do,the profits were booked within the first day or two.
Sorry,But it was W-A-Y past my bedtime when I posted this as I don't really have time other than to work,eat and sleep.Then I come home and repeat the cycle,every now and then I just throw in the occassional forex trade and Phillip Nel Daily Wrap-Up!!
,the profits were booked within the first day or two.Sorry,But it was W-A-Y past my bedtime when I posted this as I don't really have time other than to work,eat and sleep.Then I come home and repeat the cycle,every now and then I just throw in the occassional forex trade and Phillip Nel Daily Wrap-Up!!