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Trade the Slope System

  • #21
  • Edited 10:45am Oct 20, 2007 10:33am | Edited 10:45am
Quoting alcastro
HI,

I like the simplicity of your long trade system. I also have a day time job and therefore have to limit myself to the dailies.
I was doing a quick backtest on your system and noticed that many times, if you wait until the slope line flattens, after you have entered a trade, you may end up giving many pips, or even losing some. Have you considered using trailing stops? in that way you may lock some pips as you follow the trend and get out either when the slope line flattens or when you get stopped out.
Which pairs do you usually trade? Which have proved to work best based in your experience?

I am waiting for your short term system too. Might be good to grab some pips during the small periods of time when I am in front of the computer.
Hi,
As i was told to trade 4 major pairs i only trade EUR/USD,GBP/USD,USD/JPY,USD/CHF. All of them works good. I tried once GBP/JPY and stop lose of 100 was hit. I never tried again anyother pair.
I don't use trailing stop. I ajust my SL/TP everyday. Yes you will loose some profit. But again, if you know more about pair you are trading you can use trailing stop. Or even close your position after you have gain a nice profit rather then waitng for the slope to go flat. For example, if you are happy with 300 PIP profit close your position even if the slope is still showing down trend. You know what i mean.

Or enter more then one lot. Exit one by one when you desire TP hit. I mean you would need a good money mangement knowledge otherwise this system might not help.

Thanks
EMATRADER
  • #22
  • Oct 20, 2007 12:28pm Oct 20, 2007 12:28pm
hey bro,
i have a daily job too.so i prefer daily than 4 hour.so i can sleep tight at nite don't have to monitor 24 hours LOL.
so i check it everyday when it start new candle on daily,right?
i will try it and will let you know the result..
thx yo

Quoting ematrader
Hello,

Yes you are right. But its depend which time frame you want to trade. I trade mostly from H4 and daily cuz i have day job. For for you if you want to trade from H4 chart. Lets says on H4 you just saw downtred. Then you have to wait for best entry point. Wait untill H1 and M30 have turn down along with H4. If you want to trade from 30M chart. Comfirm it by looking at 15M and 5M charts just like for H4 charts.

EMATRADER
  • #23
  • Oct 20, 2007 12:51pm Oct 20, 2007 12:51pm
Quoting ematrader
Hi,
As i was told to trade 4 major pairs i only trade EUR/USD,GBP/USD,USD/JPY,USD/CHF. All of them works good. I tried once GBP/JPY and stop lose of 100 was hit. I never tried again anyother pair.
I don't use trailing stop. I ajust my SL/TP everyday. Yes you will loose some profit. But again, if you know more about pair you are trading you can use trailing stop. Or even close your position after you have gain a nice profit rather then waitng for the slope to go flat. For example, if you are happy with 300 PIP profit close your position even if the slope is still showing down trend. You know what i mean.

Or enter more then one lot. Exit one by one when you desire TP hit. I mean you would need a good money mangement knowledge otherwise this system might not help.

Thanks
EMATRADER
Example:
We should exit when the slope changes color on the 30m chart if we trade the 4h one or the 1h charts if we trade the daily one. So we don't lost nice pips waiting the 0 degrees of the slope.
I'm right?
  • #24
  • Oct 20, 2007 12:53pm Oct 20, 2007 12:53pm
Quoting layanto
hey bro,
i have a daily job too.so i prefer daily than 4 hour.so i can sleep tight at nite don't have to monitor 24 hours LOL.
so i check it everyday when it start new candle on daily,right?
i will try it and will let you know the result..
thx yo
Hello again,

If you want to trade from H4 that how you would find a setup.

Thankx

EMATRADER
Attached Image (click to enlarge)
Click to Enlarge Name: EXAMPLE.JPG Size: 183 KB
  • #25
  • Oct 20, 2007 1:28pm Oct 20, 2007 1:28pm
Hi Ematrader,

Thanks for introducing this simple system. As i have full daytime job, i mostly trade during the US session. I will forward testing it with demo acc. BTW, how you deal with if the currency pair is in a ranging or consolidation? How about major news release, do we still hold open position or just close it before news and open after that?

Thanks in advance.
  • #26
  • Oct 20, 2007 1:54pm Oct 20, 2007 1:54pm
Quoting mattrader
Hi Ematrader,

Thanks for introducing this simple system. As i have full daytime job, i mostly trade during the US session. I will forward testing it with demo acc. BTW, how you deal with if the currency pair is in a ranging or consolidation? How about major news release, do we still hold open position or just close it before news and open after that?

Thanks in advance.
Hello,

I don't enter in a new trade if there will be a major news release i'll wait till the news impact is over. However if i'm in a trade already from few days i won't close it i'll simply move my stop loss very close about 10min before the major news release. So incase the news goes in the favour of my trade i'll gain some extra pip in no time. When the pair is in a range ... lets say you want to trade from the daily chart. If you see a new downtrend on it but the pair is in range. 85% of the time you will not have the same slope on H4,H1 and 30M they will move in the opposite direction. However, few times they will not and you might loose that trade which is about 15% of the time.
Hope this help. Looking forward for your demo results.

Thanks
EMATRADER
  • #27
  • Oct 20, 2007 2:26pm Oct 20, 2007 2:26pm
Quoting ematrader
Okay guys here is the system for long term. The second part for making profit from small move will be posted this weekend.
Please let me know you comments about this system and results.


Have a nice day.

Hello ematrader,

I think the Slope indicator file corrupted, It is not showing any data. Can you please reupload it and make sure it is ok?

All the best
  • #28
  • Oct 20, 2007 3:40pm Oct 20, 2007 3:40pm
Quoting savio
Hello ematrader,

I think the Slope indicator file corrupted, It is not showing any data. Can you please reupload it and make sure it is ok?

All the best
I got it from my folder, which i am using it with trendfollower system. Hope it is the same.
Attached File(s)
File Type: mq4 Slope Direction Line.mq4   4 KB | 2,117 downloads
  • #29
  • Oct 20, 2007 3:44pm Oct 20, 2007 3:44pm
Quoting ematrader
Hello,

I don't enter in a new trade if there will be a major news release i'll wait till the news impact is over. However if i'm in a trade already from few days i won't close it i'll simply move my stop loss very close about 10min before the major news release. So incase the news goes in the favour of my trade i'll gain some extra pip in no time. When the pair is in a range ... lets say you want to trade from the daily chart. If you see a new downtrend on it but the pair is in range. 85% of the time you will not have the same slope on H4,H1 and 30M they will move in the opposite direction. However, few times they will not and you might loose that trade which is about 15% of the time.
Hope this help. Looking forward for your demo results.

Thanks
EMATRADER
Hi EMATRADER,

Thanks for your explanation, it does give me some ideas how to trade this system. Whatever the result is surely will let you know.
  • #30
  • Oct 20, 2007 3:58pm Oct 20, 2007 3:58pm
Nice simple method, the slope indicator looks like a moving average that changes colour when the trend changes i.e up or down.There are several methods like this on various sites and I've observed that more and more traders are moving towards simple "price action" systems such as this.
  • #31
  • Oct 20, 2007 5:39pm Oct 20, 2007 5:39pm
Man I will tell you what... You could not have posted this indicator and your method for trading it at a more perfect time for me than now. I have been reading the 25-50 thread by Effi Lang. Nice somplistic system. I think I would adapt a few things from it and may even demo tha system using this trading methodology using multiple TF's but that's another story

OK so getting back to timing. I have been trying to find a way yo get m trading system down to a "SYSTEM" (you really new traders should read that again ) but I just could not solidify my rules. Now with this methodology I can finally do it

Now look we all know there is no holy grail. So again you new folks reading this, understand this one concept "the most successful traders had mre lsing trades than winning trades" the only difference between them and us is they came to the market to reamin there for a long time and they no how to cut there losses and le the winners run.

Now what ematrader has shown everyone here is not magic. Hell it's not even new, not by a long shot! This is the same methodology that has been used and dictated for years.

Ask yourself this question:

When trading a market that trends better than anything else out there, WHY WOULD YOU TRADE AGAINST IT???!!!

This system is an easy to follow trend following system that let's you capitalize on market moves by determining the trend with a higher TF and timing your entry with the lower TF's. This helps prevent (not always) gettign caught in an intra-trend move. In other words if the dominant trend is down it will help prevent entering in a short position while the market is retracing.

I think a few things could be done to help optimize this system for others.

For example one thing to help more conservative traders is to (as ematrader said) identify areas of S/R if you are looking to enter the market short based on the primary daily trend (entry based on 1H charts) You would look for price action setups entering trades using stop orders on breakouts. Check the chart in the next post for an example.

I have a few other thoughts as well and will post when time permits but wanted to put my thanks out there to ematrader for sharing this system and to those of you who will help to optimize this.

Additionally I as well as ematrader (I assume) would not like to see this system transformed into something unrecognizable as this thread develops. Optimizations from this point should remain about entry exit and money management IMHO.

Ok my fingers are really tired now...lol

Oh ematrade... Just out of curiousity what other details can you share about your friend? I know he has been trading for 5 years and showed you this system, but does he work for a brokerage, how did he come about this system? That kind of stuff. A little history about a systems origins is always an interesting little story.

OK I'm really done now...lol
Nothing is impossible, with a willing mind!
  • #32
  • Oct 20, 2007 5:58pm Oct 20, 2007 5:58pm
Quoting ematrader
Hi,
As i was told to trade 4 major pairs i only trade EUR/USD,GBP/USD,USD/JPY,USD/CHF. All of them works good. I tried once GBP/JPY and stop lose of 100 was hit. I never tried again anyother pair.
I don't use trailing stop. I ajust my SL/TP everyday. Yes you will loose some profit. But again, if you know more about pair you are trading you can use trailing stop. Or even close your position after you have gain a nice profit rather then waitng for the slope to go flat. For example, if you are happy with 300 PIP profit close your position even if the slope is still showing down trend. You know what i mean.

Or enter more then one lot. Exit one by one when you desire TP hit. I mean you would need a good money mangement knowledge otherwise this system might not help.

Thanks
EMATRADER

Hi EmaTrader,

thanks for answering the 1st. of my questions. just a friendly reminder that you are owing me the 2nd one: the short term system. I am looking forward to it.

  • #33
  • Oct 20, 2007 5:58pm Oct 20, 2007 5:58pm
OK here is the example I spoke of in my last post.

This is the GBP/JPY pair. I am showing the 1H TF. The UP ARROW on the left side indicates the bar on the 4H charts when the D1 and 4H agreed. The 1H agreed a few bars befor that.

The second arrow indicates when the D1 changed. So looking for an entry on the 1H instead of placing a market order just to get in the market. We can help our selves by letting the market prove to us the trand is valid.

You can see the market pulled back slightly just before it made a nice move down. Notice the bars in the black area inside the greenish square. You will see the end of the pullback (last bullish bar)followed by am inside bearish bar. Now it is perfect acceptable to enter on a break of that bar short. But I am a little more conservative than that and like the market to prove itself. So take notice of the next bar. It is a nice long bearish bar, indicating the move may be on and the intra-trend that I spoke about in my previous post is over. So O place a Sell Stop order at 243.00. This is about 20 pips beloe the low of that bar. You can see the next bar entered me into the trade.

Ok great so now what? Well I like to add to my winners so as long as the trend is still intact (and it is) I look to see if there might be another opportunity to enter an additional order.

Notice where that low area is just in front of that previous pullback. That is an area of support. So again the market makes a small retrace based on that previous area of support now forming a double bottom. So I place another sell stop about 20 pips below the low point of that support area. And what do you know I an entered again. But entered by allowing the market to prove itself.

This is not a full post about trade management. But I wanted to show some alternatives to entering these longer term trades based on some price action.

Hope this helps someone. In another post I may share how I woluld manage my stops and possibly another entry idea.

EMATRADER.... Sorry man I am not trying to hijack your thread. I swear I'm not. I just got on this roll of typing this evening. Now I really gotta stop and go do something else for a while...lol

OK I'm off for a little while at least
Attached Image (click to enlarge)
Click to Enlarge Name: example.gif Size: 32 KB
Nothing is impossible, with a willing mind!
  • #34
  • Oct 20, 2007 9:46pm Oct 20, 2007 9:46pm
Quoting alcastro
Hi EmaTrader,

thanks for answering the 1st. of my questions. just a friendly reminder that you are owing me the 2nd one: the short term system. I am looking forward to it.

Hello,

You can download short term system from my first post.

Thankx

EMATRADER
  • #35
  • Edited 10:46pm Oct 20, 2007 10:17pm | Edited 10:46pm
Quoting Trader_V
Oh ematrade... Just out of curiousity what other details can you share about your friend? I know he has been trading for 5 years and showed you this system, but does he work for a brokerage, how did he come about this system? That kind of stuff. A little history about a systems origins is always an interesting little story.

OK I'm really done now...lol
Hello,

He is a professinal forex trader. He works for large financial company. Thats all i can tell you.

Thanks
EMATRADER
  • #36
  • Oct 21, 2007 6:03am Oct 21, 2007 6:03am
Quoting ematrader
Hello,

He is a professinal forex trader. He works for large financial company. Thats all i can tell you.

Thanks
EMATRADER
That's what I kind of figured. With this type of trading methodology, it is either being explained or in your case passed on by an individual with years of personal trading experience or by someone who is working in the field trading active accounts.

Thank's for providing what you can.
Nothing is impossible, with a willing mind!
  • #37
  • Oct 21, 2007 11:38am Oct 21, 2007 11:38am
Quoting ematrader
Hello,

You can download short term system from my first post.

Thankx

EMATRADER

Hey EMATRDR,

thanks for both systems. i am looking at both. How do you use the PP levels? To set you TP and SL?

Here is what I have for trades for Monday (using daily), please let me know what are your thoughts and i have understood your system:

US/CH: I have a sell-stop order @1.1646. This is a conservative entry-waiting for market to confirm bearish tendency. All the TF's are signaling short (in my charts, if what i am doing is right)

GB/US: no entry. The trend is well on its way. So it will be a late entry.

EU/US: I have a Buy-Stop order @ 1.4329. But I will hold until I get a confirmation from the 1 HR TF. If it does not happens I will hold.

What are your thoughts?

Alcastro
  • #38
  • Oct 21, 2007 12:10pm Oct 21, 2007 12:10pm
Quoting alcastro
Hey EMATRDR,

thanks for both systems. i am looking at both. How do you use the PP levels? To set you TP and SL?

Here is what I have for trades for Monday (using daily), please let me know what are your thoughts and i have understood your system:

US/CH: I have a sell-stop order @1.1646. This is a conservative entry-waiting for market to confirm bearish tendency. All the TF's are signaling short (in my charts, if what i am doing is right)

GB/US: no entry. The trend is well on its way. So it will be a late entry.

EU/US: I have a Buy-Stop order @ 1.4329. But I will hold until I get a confirmation from the 1 HR TF. If it does not happens I will hold.

What are your thoughts?

Alcastro
I am using IBFX. For E/U I am showing the indicator long on the daily and 4hr. Short for the 1hr and 30 min.

I agree....on G/U all four time frames are long. It finally broke 500 could it test the high of 652 back on 7/24?

U/CHF...I am flat on the 1hr...short on the other three
  • #39
  • Edited 1:43pm Oct 21, 2007 1:32pm | Edited 1:43pm
On all 4 pairs trend H4 and daily trend are mature now.
We will have to wait for a new trend on our base chart or find a late entry.
However, i don't enter a new trade on Sunday afternoon becasue market is very quit and some time it makes false moves. I would rather wait for atleast London open.

USD/CHF a possible uptrend this week.
Attached Image (click to enlarge)
Click to Enlarge Name: 12.JPG Size: 266 KB
  • #40
  • Oct 21, 2007 1:49pm Oct 21, 2007 1:49pm
Quoting ematrader

USD/CHF a possible uptrend this week.

Maybe U/Yen too? Daily long....4,1,30 all short. It's resting around the monthly pivot.
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