Trading TheStrat / Rob Smith's Method

I only trade Actionable Signals on the Strat. ( 2u/2d or 2-1-2 reversals or 2-1-2 Cont. My favorites are red 2u or green 2d on the 15M.
I do not use Oliver's method to trade - it only helps showing me the trend. The best times to trade is market openings.

[quote=BlueBull;15241464]I only trade Actionable Signals on the Strat. ( 2u/2d or 2-1-2 reversals or 2-1-2 Cont. My favorites are red 2u or green 2d on the 15M. I do not use Oliver's method to trade - it only helps showing me the trend. The best times to trade is market openings.[/quote

Well the 2 1 2 pattern (color change as he calls it) , is a major part of his method. And the 20 sma is a good reference point . Plus going from the narrow state to wide state and back is an effective HTF view . As you mentioned it shows the trend. I think STRAT signals and O. V. 's simple method can be applied together.

Sometimes the strat and the OV system work very well together, but he is mainly trading 2 minute candles with NY opening. And if you take a look at Gold this morning on the 15M chart, the strat is far better than OV. I find the 20 SMA helpful on the H! chart but not on the 15M. The Actionable Signals on the Strat is extremely reliable, but never in a tight sideways market. The best indicator in the world will not work.

O.V. has several videos describing Forex trading where he uses other time frames from 5m to Daily. He is also primarily a stock trader and the principles he uses work in both markets. Vids are on YouTube. .

Good day,

I managed to get working copies with the help of chatgpt of the strat basic indicators for MT5, please check them out, I had a couple of bugs sorted out, please try it out

Regards

I updated and tested the strat indicator for mt5, You can select either top or bottom of the candle, how many bars you would like to have numbered as well as the colours, default is red for 1, white for 2 and aqua for 3.

I also created a bar clock, which is showing the time left on the bar, also time in Beijing, London and New York for MT5.

I updated and tested the strat indicator for mt5, You can select either top or bottom of the candle, how many bars you would like to have numbered as well as the colors, default is red for 1, white for 2 and aqua for 3.

I also created a bar clock, which is showing the time left on the bar, also time in Beijing, London and New York for MT5.

Good day all fellow strats, please find attached a screen shot of Gold for today. I have tried all sorts of moving averages and have settled on the 5 ema and the 20 ema. There are so many strategies build around them it becomes a self fulfilling prophecy. Also the angle of the moving averages are important. If the 5 ema is flat but the 20 ema is pointing upward, just wait for the 5 ema also to cross or point upward. Initially I understood that most actionable signals are 3-1-2 reversals or continuations, or 2-1-2 reversals or continuations, or the rev strat etc. But that is not true. About 90% of bars on any chart, any time frame are 2's. Either 2 up or 2 down. And 2-2 bullish or bearish continuations are also actionable. ( By doing a google search AI will confirm that they are indeed actionable). By adding the 5 ema and the 20 ema it helps me to measure the strength or the momentum of the move. And close to the 5 and 20 are your best chance, similar to Oliver's method. But you don't have to wait for a color change. just two green 2 up's or two red 2 down's will do, depending on the angle of the ma's. If you do not trade the 2-2's there are so many moves that really moves without you. Where all the simple methods are cashing in. I have also attached a market opening times indicator, Regards

Good day, hope you are well. Love your enemies, bless them that curse you. In the same way you must love your mistakes and get to know them intimately in order never to repeat them. Please find attached a screen shot of a mistake of mine trading Gold on the 15M, hoping that somebody can learn from my mistake, The yellow dotted line is 7 am NY. Normally price starts to move during that period. At 7:45 am NY you can see a red 2 up, followed by a 3. At 8:45 am it made a green 2 down, but a spinning top. I decided to take it regardless. (Against the moving averages and a spinning top), price went against my position almost immediately. I was lucky to get out of it with a very small loss. During that time you start loosing all objectivity and you burn a lot of emotional capital. When I managed to salvage the position with a small loss, I was so happy and didn't see the big picture anymore. You will see that Friday's low (the red horizontal line) is just below that green 2 down conflict candle. Early in the Asian session. Friday's low was taken out and I assumed that that was it, why will price go lower again? Well you should know what assume stands for and it delivered again.

1. You can see that twice in the NY session big downward moves was started with 3's with very small (one or two points higher than the previous bar.
2. Both of the big moves was with the trend (represented by the 5 and 20 ema).
3. Never assume that the target was hit (The low in Asian session) (In hindsight the target was the weekly low, and then further down to a daily low of a while back)

I lost out on a nice massive 250 pip or a 10R move (risk only about 25 pips). Just one move like this and you don't have to work the rest of the week. Hoping that someone else can also learn from this. If you would like to add to my analysis please feel free.

Edited : I see somebody posted about trading a 3 a while ago, according to the strat purists it is not an actionable signal. But I disagree, some of them you can not and should not trade, but yesterday on gold, you had two of them on the 15m, and they were absolutely tradable. In Oliver's words the most important part of any candle is location, location, location. IMHO the 3's must be studied and then based on that we can make rules.

Regards

Good day BlueBull!
Could you please show some screenshots of the trades? I'm very interested in right this version of Strats, but see not so much situation like this on XAUUSD M15. Will be thankful

Your best deals, with the best potential and smallest risk will be when the 20 sma is at an angle. Today started like that on Gold at 6 GMT, on the hourly. After NY opening there was one opportunity like that on the 15m and then 2 on the 5m. It happens on all time frames.
However IMHO all the indicators are secondary.
My job as a trader is to find and trade the "hot hand" (Peter Crowns DIBS).

Trading the "hot hand": Trading the strongest/weakest market is actually really simple. For
example, yesterday (25/03/2008) the Eur/Usd was up more proportionately than the Usd/Chf was
down. This was because the Usd/Chf wasn't even a down day. Definitely off its highs but not
down relative to last week's close. The Eur/Usd was up, up and away! So that is the market you
buy. I have attached a pdf of the best of Peter's work.

Hello all,

what about the oscillator

any one here has a MT5 version of the oscillator

thanks

Hi All,

I have a query regarding the STRAT method. Till now I am clear with FTFC where M - W - D - H1 are to be trading above / below their respective opens - which confirms FTFC.

Now Execution in H1 is where i am stuck. I would explain a scenario & would like to get the responses.

Buy Scenario:
1. Wk started and trading above the Current Month open
2. Current day has started and trading above Wk & Monthly open
3. On the current day - the first H1 candle of London session has closed bullish along with M-W-D time frames too.
4. This confirms FTFC
5. Now comes the Strat patterns
6. if the first green H1 candle of London session is a 1 & previous H1 candle is 2 - i place a buy limit order on the high of 1; awaiting a 2-1-2 pattern.... IS this the way to trade Strats based on FTFC and the pattern that forms in H1 ?
7. If this is not the right way - I request to be explained or be guided so that I can fix this understanding glitch

Thanks & Love all!

Good day, Please find attached some indicators for MT4, I will split them in two, as I can't post them in one shot

Some more useful indicators plus a template

I have also created with the help of Grok an EA to calculate the lot size. Create a new EA , Name it BarSize Risk Calcultor. delete the code in there and copy and paste the code below, and then compile it. You can attach it to all your charts, You don't need a smiley face, as it doesn't trade - It only helps you to check out the risk according to the last bar. You can change the risk (between 0.1 and 1% - I recommend 0.5%)

//+------------------------------------------------------------------+
//| BarSize Risk Calculator v1.08 FINAL |
//| Perfect lot size – 4 corners – NO TRADING – 2025 |
//+------------------------------------------------------------------+
#property copyright "2025"
#property version "1.08"
#property strict
#property indicator_chart_window
input double RiskPercent = 1.0; // Risk per trade in %
input double RewardRatio = 2.0; // Reward:Risk ratio
input color TextColor = clrWhite;
input int FontSize = 11;
input bool ShowPanel = true;
input color PanelColor = C'20,25,35';
input int ChartCorner = 0; // 0=TopLeft, 1=TopRight, 2=BottomLeft, 3=BottomRight
string prefix = "BSRC_";
datetime lastbar = 0;
//+------------------------------------------------------------------+
int OnInit()
{
ObjectsDeleteAll(0,prefix);
Print("BarSize Risk Calculator v1.08 loaded – Risk ",RiskPercent,"%");
return(INIT_SUCCEEDED);
}
//+------------------------------------------------------------------+
void OnDeinit(const int reason)
{
ObjectsDeleteAll(0,prefix);
}
//+------------------------------------------------------------------+
void OnTick()
{
if(Time[0] == lastbar) return;
lastbar = Time[0];
double range = High[1] - Low[1];
if(range <= 0) return;
double points = range / Point;
double rangeMoney = points * PointValue();
double riskMoney = AccountBalance() * RiskPercent / 100.0;
double lot = riskMoney / rangeMoney;
double minlot = MarketInfo(Symbol(),MODE_MINLOT);
double maxlot = MarketInfo(Symbol(),MODE_MAXLOT);
double step = MarketInfo(Symbol(),MODE_LOTSTEP);
lot = MathFloor(lot / step) * step;
lot = MathMax(minlot, MathMin(maxlot, lot));
int digits = (step==0.01)?2:1;
lot = NormalizeDouble(lot,digits);
bool valid = (lot >= minlot);
DrawAll(points, rangeMoney, riskMoney, lot, valid);
}
//+------------------------------------------------------------------+
double PointValue()
{
double tickvalue = MarketInfo(Symbol(),MODE_TICKVALUE);
double ticksize = MarketInfo(Symbol(),MODE_TICKSIZE);
if(ticksize==0) return(0);
return(tickvalue / ticksize) * Point;
}
//+------------------------------------------------------------------+
void DrawAll(double pts, double money, double risk, double lot, bool valid)
{
ObjectsDeleteAll(0,prefix);
int y = 20;
int w = 300;
int h = valid?250:170;
if(ShowPanel)
{
ObjectCreate(prefix+"BG",OBJ_RECTANGLE_LABEL,0,0,0);
ObjectSet(prefix+"BG",OBJPROP_CORNER,ChartCorner);
ObjectSet(prefix+"BG",OBJPROP_XDISTANCE,8);
ObjectSet(prefix+"BG",OBJPROP_YDISTANCE,10);
ObjectSet(prefix+"BG",OBJPROP_XSIZE,w);
ObjectSet(prefix+"BG",OBJPROP_YSIZE,h);
ObjectSet(prefix+"BG",OBJPROP_COLOR,PanelColor);
ObjectSet(prefix+"BG",OBJPROP_BGCOLOR,PanelColor);
ObjectSet(prefix+"BG",OBJPROP_BACK,true);
}
L("t","BarSize Risk Calculator",y+=5,clrAqua,FontSize+3,"Consolas Bold");
L("1","Prev bar: "+DoubleToStr(pts,1)+" pts",y+=28,clrSilver);
L("2","= "+DoubleToStr(money,2)+" "+AccountCurrency(),y+=22,TextColor);
L("3","Risk "+DoubleToStr(RiskPercent,2)+"% = "+DoubleToStr(risk,2)+" "+AccountCurrency(),y+=28,clrOrange,FontSize+1);
if(valid)
{
L("4","LOT SIZE",y+=32,clrLime,FontSize+8,"Arial Black");
L("5",DoubleToStr(lot,(lot<1)?2:1),y+=38,clrLime,FontSize+20,"Arial Black");
L("6","Reward:",y+=40,clrAqua);
L("7"," 1R = +" +DoubleToStr(risk,2),y+=22,clrSpringGreen);
L("8"," "+DoubleToStr(RewardRatio,1)+"R = +" +DoubleToStr(risk*RewardRatio,2),y+=20,clrLime,FontSize+1);
L("9"," 3R = +" +DoubleToStr(risk*3,2),y+=20,clrGold);
}
else
{
L("X","LOT TOO SMALL",y+=35,clrRed,FontSize+10,"Arial Black");
L("H","Lower Risk% or add funds",y+=30,clrOrange);
}
}
//+------------------------------------------------------------------+
void L(string name,string text,int y,color col=clrWhite,int sz=0,string f="Consolas")
{
if(sz==0) sz=FontSize;
string n = prefix+name;
ObjectCreate(n,OBJ_LABEL,0,0,0);
ObjectSet(n,OBJPROP_CORNER,ChartCorner);
ObjectSet(n,OBJPROP_XDISTANCE,25);
ObjectSet(n,OBJPROP_YDISTANCE,y);
ObjectSetText(n,text,sz,f,col);
}
//+------------------------------------------------------------------+

I don't know how many people know, but Sara Strat has recently, (about three months ago) created an excellent training series. Here is the first of the series

Your Screen should look like this, The I-sessions is only for H1 and below, server time on my broker is gmt +2. Please change according to the server time

Hi If you add some charts to your questions, we can all have a look, and see how to help you. I have placed a youtube video of Sara Strat, of a training series she made three months ago. I am sure that your question will be answered in one of her videos. IMHO there is nothing better than the strat, I threw out all MA's. The Time Frame Continuity indicator helped a lot. The Best time to trade is the London NY overlap. From 07:00 am NY time until 5PM GMT when London closes.
https://www.youtube.com/@SaraStratSniper/videos Regards

Please watch this video, You can modify the Fibonacci to show only the 50%, because that is where you want to place your stops. Then instead of the Fib extensions, you can modify it to look more like a Risk : Reward tool. So delete all the extensions and put the reward levels in there. Since You put your SL at 50%, you can put R1 at 1,6 (!.5 plus spread) R2 at 2.1, R3 at 2,6 R4 at 3.1 etc.
After watching the video please look at PA of Gold of yesterday, in the London NY overlap. In the early NY session (starting at 7 am NY time) price took out the previous low of the London session, then it came up to make a new high. That's a broadening formation. (Please also watch Sara's videos about broadening formations and Stop Losses). Now we know we are at exhaustion risk, and no Fundamental Announcements, we can look at the Charts starting at the Daily, Thursday was a red 2 down, (but only by a few pips) So Friday traded as a inside bar for most of the day, then early in NY it almost made a new low, then it went up again, but not enough energy to make a new daily high. But as strats we must trade what we see. This was a typical broadening formation. So by using the modified Fib, you can place it on the H1, and M30, to look for a possible entry, Then look at the M15, for a 2up/2down reversal, At 15:00 (GMT +2) on the M15 at exhaustion risk there was a green 2 up, but with a nice upper wick, not a shooter but still good enough. The bottom of that m15 candle was slightly above the m60 and m30 entries. That's good confirmation. Also taking the deal on them15 reduce the risk significantly. R4 on the m15 was at the target (prev day low). Price overshot a lot, and massive returns was possible. I am attaching a m15 chart with the fib's of the H1 in Red and the fib of the m30 in Magenta. I am sure this will spark a new interest in this thread and method