Gann Hilo DMI System

Quoting billbss

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I've gone back over a couple of months and this is my 2 cents worth:

Your profits depend on catching one or two huge runs a month.

I wouldn't radically change anything. I sure wouldn't add any indicators. There is a similar system on this forum that has added so many rules and indicators, that it's almost impossible to trade.

I think the time frame needs looking at. I see too many good trades missed because they start an hour or two before 0700.

I think your SL and profit taking definately need looking at. Most of those BEs could give you 20-40 pip profits.

As is, price has to move 150 pips before the trade will give you any profit at all.

A 75 pip SL seems too easy to hit. I think it needs to be increased, or you need to devise a method of reentry after being stopped out.

Many trades start with a 75 pip stop out then go on to move several hundred pips.

These are just my thoughts.

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Quoting billbss

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I've gone back over a couple of months and this is my 2 cents worth:

Your profits depend on catching one or two huge runs a month.

I wouldn't radically change anything. I sure wouldn't add any indicators. There is a similar system on this forum that has added so many rules and indicators, that it's almost impossible to trade.

I think the time frame needs looking at. I see too many good trades missed because they start an hour or two before 0700.

I think your SL and profit taking definately need looking at. Most of those BEs could give you 20-40 pip profits.

As is, price has to move 150 pips before the trade will give you any profit at all.

A 75 pip SL seems too easy to hit. I think it needs to be increased, or you need to devise a method of reentry after being stopped out.

Many trades start with a 75 pip stop out then go on to move several hundred pips.

These are just my thoughts.

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Quoting croesesFX

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masmp
the Gann hilo indicator you have posted .ex can you resend .mq?
thanks

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Quoting billbss

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I've gone back over a couple of months and this is my 2 cents worth:

Your profits depend on catching one or two huge runs a month.

I wouldn't radically change anything. I sure wouldn't add any indicators. There is a similar system on this forum that has added so many rules and indicators, that it's almost impossible to trade.

I think the time frame needs looking at. I see too many good trades missed because they start an hour or two before 0700.

I think your SL and profit taking definately need looking at. Most of those BEs could give you 20-40 pip profits.

As is, price has to move 150 pips before the trade will give you any profit at all.

A 75 pip SL seems too easy to hit. I think it needs to be increased, or you need to devise a method of reentry after being stopped out.

Many trades start with a 75 pip stop out then go on to move several hundred pips.

These are just my thoughts.

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Quoting TimeFreedom

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Bill,

Here is an idea for MM which I got from Daily95pips thread: http://www.forexfactory.com/showthread.php?t=44246

Use 3 lots.

Max Stop Loss: 100
Move to BE+1 once +50 and close 1 lot
Move to BE+50 once +100 and close 1 lot
Move to BE+100 once +150 and set 50 pip trailing stop

TimeFreedom

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Quoting Masmp_FX

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HI TimeFreedom thanks for your reply.

I started with something like that, but I will give you the example why i don't like that method, if you have a 300 pips traded that way, closing partially the position,

lets say,

1º exit 50 pips

2º exit 150 pips

3º exit 300 pips

based in your 3 lot investment exiting in partials it would be 3500 Eur

By exiting only at the final exit it would be 6300 Eur

Almost the double of the profit.

And when you hit a stop loss in the beginning of trade you face the 3 lot loss and not partial as your take profit.

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Quoting Masmp_FX

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"Most of those BEs could give you 20-40 pip profits."

can you suggest how to do that?

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Quoting billbss

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Let me look at the last few BE trades and see what my 3 bar method would have done.
I'll get back with the results.

Q?
If there is a trade in progress when 0700 arrives. Do you enter it if your indicators line up?

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Quoting billbss

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I agree with you. I don't like scaling out methods either. As you say, when you start off hitting a SL you lose on all three lots.
I'm sold on trailing the position with price action. I use the Gann three bar retrace to get out of a position.

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Quoting Ohka

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Let me add to this (and my remarks are also somewhat related to Masmp_FX's post #49:

I don't like to scale out either, but what does make sense in my opinion is to scale in, i.e. add to positions when a first position develops favorably.

What I do is this: if a position develops according to my game plan, at some point in time I will be able to trail my SL to break-even. From this moment on, the existing position poses no longer any threat to my account. From that moment on, if the indicators signal a trend continuation, I add to my position. Two requirements here: break-even for my first position needs to be ascertained and the new position (size / SL-distance) needs to remain within my set risk profile limit, meaning that the new position should not pose a greater risk than the initial position was. This second position gets a trailing SL, just like the first one. If the trend continues, I continue to add to my position in this way, but never before the existing position(s) have become risk-free.

Now on to post #49: Masmp_FX, there no reason to not add to a position that you kept one or more days, as long as a trend continuation is expected and your existing position(s) pose no longer a risk to your account.

Does this method sound logical to you guys & gals? For me it's the best way I could come up with to deploy my resources effectively.

take care
Ohka

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Quoting billbss

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I traded stocks this way. I used Bill William's alligator system, which calls for adding positions as your profits from your initial position increases.
It didn't work for me.
Too often I would turn a profitable trade into a loser. The original positions would be in profit but when the market turned the top positions would lose enough to nullify all or most of the profit.

If you think about it, it isn't logical to do that.
If you go long, you believe you are buying low and that price will go up. You believe you are getting in at a good price. As price increases, there is less and less reason to buy because the entrance price is getting worse.

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Quoting billbss

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I traded stocks this way. I used Bill William's alligator system, which calls for adding positions as your profits from your initial position increases.
It didn't work for me.
Too often I would turn a profitable trade into a loser. The original positions would be in profit but when the market turned the top positions would lose enough to nullify all or most of the profit.

If you think about it, it isn't logical to do that.
If you go long, you believe you are buying low and that price will go up. You believe you are getting in at a good price. As price increases, there is less and less reason to buy because the entrance price is getting worse.

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Quoting Ohka

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The way I see it is that the market first has to prove me right, before I commit more resources. As soon as an initial position is out of the danger zone - especially in the context of the sizeable profit target this system addresses - there's enough price action left to add a couple of positions (one at a time) and let them mature...

Especially with that modified entry method you found in another thread one could fairly quickly have a position 'for free', so that additional positions could be added when the trend development is still in its early phases.
Also please note that I didn't say I add to a position just because the initial one has become risk free. Each new position requires a re-evaluation of the current market situation, confirmation from indicators, whatever. The same screening that the intial entry got. If this new screening still signals 'three greens', I'm on short final and go for a touch down.

bye
Ohka

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Quoting Masmp_FX

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Hi Ohka.

Your method of adding positions for sure sounds tempting, many professional traders do that, I will put it in consideration in this system in a near future, I was thinking more of adding positions on a retracement that always happens, conserving the profit if it goes wrong etc.


Thanks for your reply Ohka

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Quoting Ohka

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that's what I do as well: as soon as my decision to increase my position is taken (as per my description above, ie. only adding after the prior position(s) has/have become risk free) I too look for a retracement to get a good entry for the next position. It doesn't always works out this way, but it's a goal to go after...

take care
Ohka

P.S. that EURAUD short I took yesterday afternoon (@ 1.6915) could have netted some 185-230 pips (depending on exit strategy). If I had only sticked to your SL guidelines... I like your system a lot.

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Quoting billbss

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I think the time frame needs looking at. I see too many good trades missed because they start an hour or two before 0700.

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Quoting Masmp_FX

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Ohka, Thanks for your insigth about the Eur/Aud, just did a quick check and saw very good trades, its a very wild pair too, the ones I like most.
I will do a study about that pair too.

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Quoting billbss

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Here is a pdf, I picked up somewhere, on the Gann 3 bar exit. It's chopped off at the end, but it tells all you need to know to use it.

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