X50 - M5 trend following

Just for fun I googled x50. You may want to bookmark this blog.

http://tradiary.blogspot.com/

Cheers
CanuckCT

My last post for today....I see 6 points of interest for EJ today.

The first is after the news and the cross of MACD...that trade would have been a loser - I'll be discussing earlier entry on a setup like this one because it could have been a winner.

The 2nd is a winner. The 3rd is re-entry based on stoch and is a winner. The 4th is re-entry based on stoch and is a winner. The 5th and 6th are crosses of MACD and are winners. All of the entries could have been made with little heat and close for 10-20 pips and trades # 3 and 5 for a lot more.

Take the chart of your favorite pair and do the same thing. then you will start to trust the setups. I know it looks a bit different in real time...look for separation in AS for confirmation.

Cheers
CanuckCT

Any way of getting a pop up to notify the trader of when MACD crosses the 0 line? If I could code I would

Maybe if you smile nicely at Skyline he might write something for you. Great programmer.

Hey CanuckCT. I think this is a very good system. Been watching it from the beginning and testing it in demo mode. Being a newbie, I find it very easy to follow and like the results so far. Thank you for sharing it.

I was wondering if the indicator that show up in your chart showing whether the rhythm is strong bull/bear, or weak bull/bear is an indicator, like part of the EJ Pivot. Maybe I am missing something. Your response on how I could get this on my charts would be greatly appreciated.

Thank You

Can someone tell me what was wrong with taking this one? Closed at -8 pips.

Nothing wrong as I can see.
Remember sometime you win, sometime you lose

I have same opinion with Skyline, you're doing right. I think you just unlucky coz enter when market in sideway. Thats one reason why i don't like use this method in some major pair, low range of movement. Compare it with GBP/JPY.

If you had taken the very next signal on that pair and stayed with it, you'd have made you 8 pips back and then some..........but I agree with the previous comments. You can't win every trade.
Cheers
CanuckCT

See post #1 and post #63
Cheers
CanuckCT

My view from looking at the chart would be the following:

Candles :are showing signs of a small resistance area...

MACD: Is coming up from a shallow position so possible stall ( or zero bounce) due to lack of momentum...

Stoch: is on or above 78.4%....therefore showing possible turn or weakness in momentum..

Absolute Strength: Blue solid line starting to curve and dotted line breaking out to high from the turn up...
and blue line did not return completely to the bottom of the window, showing a partial bounce there again showing low volume..to complete the move and showing a great posibility that it will stall..

Just my thoughts...

Glenn

Two charts to look at...both very profitable trades. Entry on GC was early. More on that later.
Cheers
CanuckCT

The other thing about this chart is the 14-3-3 stoch. Primarily it's the 5-3-3 that leads the way and the 14-3-3 follows. If you look at this chart...the 14-3-3 is a bit flat and somewhat directionless. I know sometimes it looks different in real time. But the best entries have 5-3-3 and 14-3-3 moving together and at least pinted up and above 50...still -8 is not a bad trade as long as you jumped on the next signal as it was a good one. It you sit for long and overanalyze the loser, you miss the next good one. It's M5 and things do happen in 5 minute intervals.
Cheers
CanuckCT

[quote]
CanuckCTEC and GC
Two charts to look at...both very profitable trades. Entry on GC was early. More on that later.
Cheers
CanuckCT
Hi Ben

I dont trade either of these pairs.....but just looking at the AS indicator on these charts I would say theres a nice short move in about 10 to 15 mins.
both stochs are overbought as well.

Glenn

The only thing I have to add is that I never take a trade heading into ""00" or ".50" as these are generally strong resisance areas. ".20" and ".80" are also SR areas. This trade was right at the .50 mark. If you look back you can see that it was consistently a SR area.

Hi Glenn,

Not seeing those shorts. MACD never crossed zero line and the stoch and macd have to be in place before I look at AS indicator. The stoch crossing 50 is important only when MACD cross zero within the next bar or two, that's how I view it.

One other item...was talking with a fellow trader who was not having success. Was getting stopped out and in his case stops were too tight as 3 out of 4 trades would have been winners had his stops been wider. I regularly have 20-30 pips of heat on GY or GC and 20 pips on AU or EU or EC. That's reality. If your stops are tighter than that, you'll probably going to have problems. I'm waiting for candles close to make decisions on a trade and will only jump early if it's real obvious that the trade setup is going to be in play. If MACD crosses back on the next candle, then you probably entered too soon and need to be wary. Part of the system is the crossing of MACD, so when it crosses back immediately, you may lose.

The other thing, if you have a losing trade, and everyone does, that's not the time to jump to another pair. If you jump to another pair and that trade is a loser and then you jump to another pair and that trade is a loser...you get the idea, then it's not the system that is not working. Often if you had stuck with the same pair you would have been ok. The other night in the chat room was a prime example. We had a couple of losing trades in the room. The setups were good, but the trades didn't work and it was probably due to the time of thenight. So we signed off. About 20 minutes later, I was still waiting for something to happen, there was a huge short that everyone would have easily recovered the losses we had sustained in the room. I caught it and probably others did too.

I focus on 4 or 5 pairs only, watch more than that, and if I have a loser on one pair then I'm looking for the next trade on that pair. If markets are ranging on M5 then you are going to get creamed. And it does happen. I too am looking for some guidelines for this for my own trading.

If a 20 or 30 pip loss is more than you can stand, then your money management needs some work and you need to trade smaller lots. That will keep you in the game for when you catch that runner.

The other thing, if you are up 8 to 10 pips and then the trade goes against you, it's not a losing setup, the problem was you didn't take profits quickly enough. You can't catch a runner on every trade. Not going to happen.

I could post just losing trades but what's the point to that. I'm winning 3 out of 4 trades with this method and it's all I trade. And I'm only taking 4 to 5 trades per day as time permits. Looking back today there seems to be several winners during the morning NY session...but there were losing trades also. If you had stuck with a pair you'd have been ok and looked for re-entry signals.

This post is not intended as a rant in any way, and especially not at you Glenn, just trying to fit it all into one post.

I do encourage folks to post some of their losing trades as that can generate some discussion if you want. I'll rather be lookin at the good setups so I can pick them out than to focus on losing trades. We should be focusing on money management for handling the losing trades.

I don't mean to be harsh in my comments, but if the system's not working for you, you need to keep looking.

My 2 cents.

Cheers
CanuckCT

[quote=glenn5t;1816966]

Hi CanuckCT,

I was in your trading room this morning and someone had mentioned perhaps using a different one where you can share charts live and post charts also. Tradingrooms.com is such a site that allows this and is also more user friendly. Just a suggestion. Thanks for starting this thread. System seems to work well.

Hi

thank you CanuckCT for sharing your system.
could you please tell me clearly about Stop Loss in your trades

See post#116 paragraph 2.


T4K

You might try looking at ATR 5 and see what the range for the previous 5 candles is and use that for your stop. I have a default stop in Oanda for all trades at 30 pips but my mental stopis lower, around 20, for some pairs.. Sometimes I take it out for GY if I believe in the trade and think it's a pullback, sometimes I don't. Sometimes I'm stopped only to see the trade go my way. Sometime I exit well before stop is hit. I guess I'm all over the place so not very good for advice on this matter. But 20 to 30 is where I am and I give the trade time to work. it's really quite satisfying to take 15 to 20 pips of heat and then see the trade go your way. When you are -15 and the 5-3-3 stoch is turning in your favour, that's a good sign to stick with it.

Lots of ways to deal with stops and I'd really like to hear what others are doing it.

Cheers
CanuckCT