StewartR - I want my trading to be boring.

Quoting stewartr

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Hi Bakuli, It was a B trade for me. (Probably a B+) - but not good enough for an A trade and I am only trading A trades for the next 20 trades. Here's what I saw: Daily - Uptrend no supporting stoch no supporing price action 4 hour - Uptrend good Stoch no price action. 1 hour - Uptrend good Stoch no price action. The only thing that stopped me taking this trade was I was also looking for a Pin Bar or an outside bar on the 4 hour chart. Recap: A Trade is: 4 hour trend + stoch extreme + pin bar or outside bar + daily and 1 hour trend in same direction or daily and 1 hour stoch at same extreme. I have tried to post the screen shots but it wont let me add them for some reason. Hope this makes it clear how I am thinking. THanks Stewart

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Quoting stewartr

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There's been a few good winning trades in the last 24 hours. I didnt take any of them though. I am waiting for the strongest moves.

Risking 2 or 3% I only need a handful of trades per month to have a good living.

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Quoting Bakuli

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Hi Stewart,

Did you manage to find any A trades over the past week ? If you did, I look forward to you posting the charts. I manged 3 trades over the past week based on your method. Although not A grade ones, I still managed to get the 50 pips target I set for each one. I am liking your method as a compliment to my main trading which follows Jacko's method.

Look forward to your postings.

Happy trading!
Bakuli

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Quoting stewartr

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Hi Bakuli,
There have been some trades that I would rate as very good. But I havent seen any that meet my daily, 4hour and 1 hour criteria to be a true "A" trade.

I will post two examples that I thought were very good, but I did not take them because they were not "A" trades.

1. The AUDCAD chart attached.
4 hour was perfect. (trend + extreme stoch + price action bar). Daily uptrend confirming direction. 1 hour stochastic was good but trend was down. To be an A trade I want the stochastic on all three time frames to be at extremes OR I want the trend on all three time frames to be in the same direction.

2. The AUDJPY -
The 4 hour chart was perfect (trend + extreme stoch + price action)
The 1 hour chart stochastic was good but trend was not
The daily was 'all over the place'.

No trades taken

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Quoting stewartr

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Hi Bakuli,
A trades can come along every day when the 4 hour and daily trends are lining up. The last few weeks have seen large corrections on the daily charts - which show up as trends on 4 hour charts.

Only trading A trades keeps me out of the markets when the daily trends are reversing.

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Quoting stewartr

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Yep - that's right.
OR
the daily, 4hr and 1hr stochastics are all overbought/oversold.

It is rare to have the 1 hour in line with the 4 hour and daily though. It only happens in really strong trends.
I just noticed that my thread is called "I want my trading to be boring". Well this system is certainly that! :-)


I just keep reminding myself that my last 17 A trades netted 15 winners and 2 losses and that was in 4 weeks. Traded at 2% of equity, thats 26% in 4 weeks with only a 1:1 reward to risk target.

I just need the trends to line up again.........they will......and I'll be ready.

:-)

PS - in the mean-time I am amusing myself with 30 minute and 5 minute charts on the GBP on a demo account.

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Quoting Bakuli

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Hi Stewart,

Yeah ! It certainly is boring !!!

I have some scenarios below which I hope you can comment on to clarify the A trades further. Hope you won't mind answering it. Am I right in assuming that for an A trade to be qualified, you can have a combination of trends lining up and extreme stochs stoch from the 3 TFs ? Or do you actually require either ALL the trends to be in line or ALL the stochs to be overbought/oversold ? I am clear with the criteria for PA (so the scenarios below assume that the PA supports the intended trades)

I am looking for EITHER.

Scenarios :

Scenario A
Daily trend - Up
4 hrly trend - Up
1 hrly trend -Down

Daily stoch - Overbought
4 hrly Stoch -Oversold
1 hrly Stoch - Oversold

Question A - Does the above scenario qualify as an A trade (Long) ?

Nope - its very close though. I would call this an A- or maybe a B+. From my backtesting these types of trades will win around 70% of the time (assuming you have price action to trigger the trade too).

So these are very good......but not an 'A'


Scenario B
Daily trend - Up
4 hrly trend - Down
1 hrly trend - Down

Daily stoch - Oversold
4 hrly stoch - Oversold
1 hrly stoch - Oversold

Question B - Does the above scenario qualify as an A trade (Long) ?
Yep! If the Stochs are all oversold......and you have the 4 hour price action bar.....this is an A trade

Scenario C
Daily Trend - Up
4 hrly Trend - Up
1 hrly trend - Up

Daily stoch - overbought
4 hrly stoch - overbought
1 hrly stoch - overbought

Question C - Does the above scenario qualify as an A trade (long) ?
No. I would not trade this at all. The main trigger is the 4 hour trend + stochastic + price action. In Scenario C the 4 hour stoch would have to be OVERSOLD, (and I could ignore the stochs on the daily and 1 hour because the trends are all looking good).

Scenario D
Daliy Trend - Down
4 hrly Trend - Down
1 hrly Trend - Down

Daily stoch - oversold
4 hrly stoch - oversold
1 hrly stoch - oversold

Question D - Does the above scenario qualify as an A trade (short) ?
No - same as scenario C. I need the stoch on the 4 hour to be showing that a decent pull back has happened on the 4 hour chart.

Hope you don't mind answering the questions above. Thanks


So there's two options
4 hour trend up + stoch oversold + price action (pin bar or outside bar)
AND Daily and 1 hour trend to be same as the 4 hour

OR
4 hour trend up + stoch oversold + price action (pin bar or outside bar)
AND daily and 1 hour stoch oversold.

(There could be a hypothetical 3rd way too. You could have the price action on all three timeframes in agreeance too. You could have a daily outside bar on the daily and a pin bar on the 4 hour and a pin bar on the 1 hour..... I would call that an A trade too).

When the trends all line up (as they only do when the trends are strong) there's plenty of these trades available.

I hope that helps.

Have a good day,
Stewart
Bakuli

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Quoting stewartr

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I hear a lot of people struggling with the volatility. The markets are not in the strong trends we enjoyed in previous months. Some of the systems that were making people look like legends are now making them look like ordinary traders like the rest of us.

There is no magic potion that erases losers.

I sit on the sidelines waiting for the trends to line up again....then the fun begins again.

:-)

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Quoting stewartr

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Some of the systems that were making people look like legends are now making them look like ordinary traders like the rest of us.





:-)

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