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Attachments: MTF The Escalator to Pips Strategy
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MTF The Escalator to Pips Strategy

  • #1
  • First Post: Jul 2, 2007 4:28pm Jul 2, 2007 4:28pm
Attached is a copy of the current version of the PDF for Escalator to Pips trading strategy.

Current Version released on April 4, 2007
Attached File(s)
File Type: pdf Spudfyre's Escalator to Pips.pdf   237 KB | 14,854 downloads
  • #2
  • Jul 2, 2007 9:35pm Jul 2, 2007 9:35pm
Hi Spud,

I have been a keen reader of ur posts and methods, and thank you for dedicating the non-trading time to help/teach/guide the less experienced traders.

Your escalator to pips manual still uses 5,3,3 stoch. Is that correct? I thought I remember you mentioning somewhere you use the 14,3,3 exclusively now, and not the 5,3,3.

Could you pls clarify.

Regards,
Gurbinder.
  • #3
  • Jul 3, 2007 6:45am Jul 3, 2007 6:45am
Quoting kermut
Hi Spud,

I have been a keen reader of ur posts and methods, and thank you for dedicating the non-trading time to help/teach/guide the less experienced traders.

Your escalator to pips manual still uses 5,3,3 stoch. Is that correct? I thought I remember you mentioning somewhere you use the 14,3,3 exclusively now, and not the 5,3,3.

Could you pls clarify.

Regards,
Gurbinder.
Thank you for pointing that out. You will have success with either the 5,3,3 or 14,3,3. I personally prefer the 14,3,3.
  • #4
  • Jul 3, 2007 9:46am Jul 3, 2007 9:46am
Thanks for the clarification spud.

Regards,
K.
  • #5
  • Jul 3, 2007 7:27pm Jul 3, 2007 7:27pm

hey spud i use all 8,3,3 setting. im not waiting for all 4 indicators to pointing down. 3 is enough for me...E.G= if 3 indicators pointing down i check my multi time frame ADX...if 5 minutes adx pointing down with values over 45 than i enter trade...

Attached File(s)
File Type: mq4 ToR_1.02.mq4   16 KB | 2,870 downloads
"Analysis Is Hard But Trade Is Easy"
  • #6
  • Jul 3, 2007 8:12pm Jul 3, 2007 8:12pm
Quoting Se[V]eN

hey spud i use all 8,3,3 setting. im not waiting for all 4 indicators to pointing down. 3 is enough for me...E.G= if 3 indicators pointing down i check my multi time frame ADX...if 5 minutes adx pointing down with values over 45 than i enter trade...

Yes, the Escalator to Pips method is built on a (very) conservative approach to build a high win percentage. Later in the MTF Stochastics thread there are various other methods of trading that still hold true to the foundations of Escalator to Pips but trade with combinations of stochastics like the 15M and 4H or the 30M and 1H. We can mix and match time frames all we like, the more we use the higher the percentage we'll win....but the percentage gain falls off steeply after 3 time frames are used....so the 4th may gain you a 1% gain in win%.
As I put the Trading Manual pages down it will be easy to recognize the Escalator to Pip methodolgy spreads throughout MTF stochastic trading, be it 2 time frames or even using 18 different stochastics! (but that is for later)
  • #7
  • Jul 3, 2007 10:56pm Jul 3, 2007 10:56pm
Hey Spud I Have Read Your Post About Stochastics How Do I Set These Time Intervals??? The K_period Should Be 14 Yeah And The D_period 3 And K_slowing Period Should Be 3 Also So Where Do I Set The Time Intervals Of 15m, 30m, 1h And 4h??? Pls Help Me Out I Am Very New In Forex. I Basically Use The Rsi As My Main Indicator But I Always Hear That Stochastic Is The Best.
  • #8
  • Jul 4, 2007 6:29am Jul 4, 2007 6:29am
Quoting bksujal
Hey Spud I Have Read Your Post About Stochastics How Do I Set These Time Intervals??? The K_period Should Be 14 Yeah And The D_period 3 And K_slowing Period Should Be 3 Also So Where Do I Set The Time Intervals Of 15m, 30m, 1h And 4h??? Pls Help Me Out I Am Very New In Forex. I Basically Use The Rsi As My Main Indicator But I Always Hear That Stochastic Is The Best.
If set the time intervals up in your price charts. If you are using MetaTrader, check under "View", "Tool Bars", "Periodicity". You will require 4 different price charts.
  • #9
  • Jul 7, 2007 8:46am Jul 7, 2007 8:46am
Quoting bksujal
Hey Spud I Have Read Your Post About Stochastics How Do I Set These Time Intervals??? The K_period Should Be 14 Yeah And The D_period 3 And K_slowing Period Should Be 3 Also So Where Do I Set The Time Intervals Of 15m, 30m, 1h And 4h??? Pls Help Me Out I Am Very New In Forex. I Basically Use The Rsi As My Main Indicator But I Always Hear That Stochastic Is The Best.
just thought I'd comment on the use of RSI too.

I don't like a chart crowded with a lot of indicators. I think trading should be simple to comprehend and frankly if you've got your head on straight it should be simple to execute (this does not mean that it is still not tough to do, but it is simple). So I just have RSI and Stoch on the bottom half and an MA setup on the top half of the chart.

Anyway, I have added RSI, but not to confirm or filter the Stochs. I see the MTF Stochs and a couple of MAs as my main method of technical analysis. For me the RSI just added a trend reveral feature. I use an RSI set to 28 period only on the H4 GBP/USD chart. Instead of using a trigger line (like the typical 80/20) I use a reversal zone: upper trend reversal zone set between 67 and 80 & lower trend reversal zone set between 33 and 20.

This zone does not give you a specific turning point of reversal, but it is a good warning area that a trend reversal on the H4 chart is pending. The Stochs and MAs give a more fine tuned point of entry. I see the use of the RSI in this way as a radar and the MTF Stoch as a rifle scope.
  • #10
  • Jul 27, 2007 12:13pm Jul 27, 2007 12:13pm
Spudfyre, what a great job u've done n a deep research in stochastic! Well done dude!

I have a question to ask:
Does this strategy only allow us to trade Short when the 4H TF Stoch is above 80 and is coming down / Long when 4H TF is below 20 and is going up? How about the 15M, 30M, and 1H TF all line up except the 4H TF? Do we take the trade too?
  • #11
  • Aug 4, 2007 5:51am Aug 4, 2007 5:51am
Quoting maxcruiver
Spudfyre, what a great job u've done n a deep research in stochastic! Well done dude!

I have a question to ask:
Does this strategy only allow us to trade Short when the 4H TF Stoch is above 80 and is coming down / Long when 4H TF is below 20 and is going up? How about the 15M, 30M, and 1H TF all line up except the 4H TF? Do we take the trade too?
I can say to you that you can take that trade... but close profits after less pips, because H4 can change direction of price soon. Usually H4 or H1 can be for example over 76.4 for a long time and price keeps going up and up and up... H4 or H1 tries to go down but again turns up.... and all between the 76.4 and 100 range... it would be worse if you take that trade and the H4 already crossed 76.4 But if it is still above 76.4 it doesn't mean that it has to go down.
  • #12
  • Aug 11, 2007 7:26am Aug 11, 2007 7:26am
I am learning this mechod, it looks very good . But I am new to this method.
my question is when I enter trade. Should I wait a M15 BAR close then enter in next Open price or in realtime (as soon as finding the condition is met).
  • #13
  • Edited 9:16pm Sep 21, 2007 7:49pm | Edited 9:16pm
http://s43.photobucket.com/albums/e3...escalator2.gif

It's easier to trade this strategy now. Thanks to mladen for creating this wonderful indicator.

Lime = uptrend
Dark Green = overbought
Red = downtrend
Maroon = oversold

Download the Stoch Bars indicator @:
http://www.forexfactory.com/showpost...3&postcount=14

Download #MTF Stochastic v2.0 @:
http://www.forexfactory.com/showpost...&postcount=957

Attached are some templates:
Attached File(s)
File Type: tpl Spud Escalator To Pips Stoch5 M15.tpl   46 KB | 3,478 downloads
File Type: tpl Spud Escalator To Pips Stoch14 M15.tpl   45 KB | 3,001 downloads
File Type: tpl Spud Escalator To Pips Stoch5 Stoch14 M15.tpl   54 KB | 3,198 downloads
  • #14
  • Sep 21, 2007 10:50pm Sep 21, 2007 10:50pm
Thanks for posting this Banzai. Very nice. Looks like I've got some reading to do on this method.

Quoting banzai
http://s43.photobucket.com/albums/e3...escalator2.gif

It's easier to trade this strategy now. Thanks to mladen for creating this wonderful indicator.

Lime = uptrend
Dark Green = overbought
Red = downtrend
Maroon = oversold

Download the Stoch Bars indicator @:
http://www.forexfactory.com/showpost...3&postcount=14

Download #MTF Stochastic v2.0 @:
http://www.forexfactory.com/showpost...&postcount=957

Attached are some templates:
  • #15
  • Sep 22, 2007 12:14am Sep 22, 2007 12:14am
Thanks for sharing your knowledge, Spud. Great method!
  • #16
  • Sep 22, 2007 6:17am Sep 22, 2007 6:17am
Quoting banzai

It's easier to trade this strategy now. Thanks to mladen for creating this wonderful indicator.

Lime = uptrend
Dark Green = overbought
Red = downtrend
Maroon = oversold

Download the Stoch Bars indicator @:
http://www.forexfactory.com/showpost...3&postcount=14

Download #MTF Stochastic v2.0 @:
http://www.forexfactory.com/showpost...&postcount=957

Attached are some templates:


fantastic
would be nice to have an alert when all the blocks are green or red
  • #17
  • Sep 22, 2007 9:32am Sep 22, 2007 9:32am
I just manually bactested the GBP/USD from July 20 through Friday.

I used all four bars being the same color.
I set my stop loss at -20 pips or the last low fractal, whichever was more. I included a 4 pip spread.
My exit was a break of the last fractal. For example, on a long trade, I exited on a break of the last low fractal.

Results
80 trades- 51 winners for 63.8%
Net profit = 1984 pips

The worst string of losers was 6. That happened only once.

If this indicator proves to repaint- none of this means anything.
  • #18
  • Sep 22, 2007 9:39am Sep 22, 2007 9:39am
Quoting billbss
I just manually bactested the GBP/USD from July 20 through Friday.

I used all four bars being the same color.
I set my stop loss at -20 pips or the last low fractal, whichever was more. I included a 4 pip spread.
My exit was a break of the last fractal. For example, on a long trade, I exited on a break of the last low fractal.

Results
80 trades- 51 winners for 63.8%
Net profit = 1984 pips

The worst string of losers was 6. That happened only once.

If this indicator proves to repaint- none of this means anything.
Anyway you post a chart to show us how to exit on a break of the last low fractal. Thanks.
  • #19
  • Sep 22, 2007 9:51am Sep 22, 2007 9:51am
Hi Banzai, the stoch bar indicator you posted does not appaerr the same as yours.It only shows a 15m stoch with over bought/sold areas in diff colours.or am i doing something wrong?
  • #20
  • Sep 22, 2007 9:58am Sep 22, 2007 9:58am
The vertical line to the left shows the long entrance.

The arrow to the right shows the low fractal that was broken to exit the trade.
The bar above the X is the bar that broke the fractal and caused the exit.
Attached Image (click to enlarge)
Click to Enlarge Name: SpudGBP.JPG Size: 193 KB
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