5 Min Keltner System

Hi

I want to share my Futures trading system with you,Ive had so much help from this BB I thought it about time I shared some thing of mine.I trade EOD on Forex and have posted the results under the ‘trading journal’

I have been day trading US Futures for 5 years and thought Id migrate over to the big boys

This system works very well on Futures mainly Russell 2000 I personally use it on 1min time frame. Please make note though this is not a system that only takes 2 trades a day ,this is a scalping system designed to rack up the points. When I trade it with ER2 I stop for the day at +$500 per contract traded.

On Forex it could be 20 –30 pips its up to you…but the aim is to consistently make money not sit in front of a PC all day.

I’m not sure how well it will lend itself to Forex but I think for a start it has to be used on a 5min time frame.

It can give as many as 30 signals a day for the whole session, the main advantage of this is……….. if you work shifts or odd hours you know you can still make some profit as signals will still be triggering. No need to upset the wife and let the tea go cold any more !

The system is simple to trade although on er2 I trade with a 1 tick spread with 3 pips on Forex I will have to adjust. I’m hoping by trading it I can make any changes needed along the way.

I will include my template at the end of this and the Keltner indictor but it essentially uses 2 indicators and I use it on £$

The system is simple on the eye and uses 1 time frame

Keltner bands


Length 10
Times ATR 1

Stochastic


15.3.2Use signal line only ..Colour main line to ‘none’
15.3.3Set line at 80 and 20

Long signal


Price closes below the bottom K line Stochastic below 20
Go long on the next up bar as long as stochastic still below 20

Exit


Move stop to break even if price touches middle K line (white)
Take profit if price touches top band line, again it flexible and up to you

Stops


Up to you… if going long it can be the low of the entry candle
Or any number of pips you prefer.

Visa versa for shorts.

Here is a screen shot of today up to time of posting on £$ 5min

In my Futures trading platform it is fully coded and traded through Interactive Brokers TWS via Ninja Trader .It could be traded through an EA but I cant code so for me its manual atm.

I don’t mind changing or adapting the system .To me if you don’t adapt or change with the markets you Die.

Thanks for sharing your system. What are the arrows for? Is there any other time frame that you recommand?

Thanks

Peace

hi

Np..the arrow are buy sell I have to trade manually atm so they are placed by me for reference

Paulus

Interesting system. I trade a variable of the same. Trade only Eur/Usd on the 5m tf. Utilize Stochastic set at 5-3-3, ADX set at 4, a 2sma and 5 sma with a weighted close. Trade from 5 - 11 a.m. pst and average about 10 trades per session with good results (90%). Look to take three (3) pips of net profit and trade 8 contracts per trade. Has been very consistant and profitable for the past eight months. Currently indure a 2 pip spread and have had very little difficulty. Can obtain confirmation by dropping down to 1m tf to time entry and exit. Never trade during "red" news announcements. Thanks for sharing. Keith

alot of useful info there Keith many thanks

very interesting about the pips profit but on 8 contracts .. you must cut losses very close to the bone..

I will double check all my signals today with your tgts

cheers

Paulus

ah ok eurusd only 2 pip spread .. m so green when it comes to forex ..thanks that 1 pip makes all the diff on £$ have 3 pip spread

Paulus

Without wanting to hijack the thread - Keith, could you elaborate on the above.

+ what do you do on those 10% of trades that don't work out? do you have a fixed stop?

Thank you.

Sure. I utilize a 6 pip MENTAL stop loss with my broker. For example, if I initiate a buy order at 1.5000, my stop loss is at 1.4996. (Buy at 1.5000 + 2 pip spread = 1.5002 buy point. Subtract 6 pip stop loss + 1.4996. Opposite is true of sell order. Sell at 1.5000 + 2 pip spread = sell order at 1.4998. Subtract 6 pip stop loss will be set at 1.5004. Hope that makes sense. Can review a perfect sell of Eur/ Usd recently at just five minutes ago on any chart on the 5m tf.

Trading 8 contracts with this system give me a risl to reward of about 1-2, which I have found to be pretty tolerable in forex trading. Am looking to achieve $240.00 per trade while risking $480.00 to do so. Obviously, at a 90% success rate this has provided a decent income from 7-10 trades daily. Appreciate all thought and critiques of my method, am never in a trade very long though. Always have my finger on the close the position trigger and NEVER walk away from the screen while in a trade. Six hours per day is not such a grind compared to many, many less rewarding careers. It is my opinion that you simply must be willing to do Some time at work in order to get paid.

Hi all. Like this strategy/s. So expat r u really full time forex with this? A lot of ppl wouldnt like the risk-reward ration u have but if it works it works eh? Do you ever get caught out with a big move against your favor? i no somtimes price can jump easily above your stop loss and take profit? interested to no more on this.
Also Paulus would your strategy not work on say 15m timeframe? less trades but it looks like you get more pips and better signals?

Negative. Have never been caught in a whirlwind move against me. Never trade within 15 min. before or 30 min. after hot news releases and this pair moved at a slow enough pace to simulate complete control. With regard to higher time frames, I would imagine there are many variations in which to seek more pips, however, as you said, this system has been very kind to me and I have not tried to fix that which does not seem to be broken. Am interested in any other input you may have and appreciate your concerns, ideas and input.

Hey Expat,

Could you please start a thread with some details of your system?

Are you a full time trader for a living?

What are your entrance rules, using the indicators you listed?
Thanks

Sorry for the delay in answering your question. Yes, I am a full time trader. Have actively participated in this battle arena for about a year or so now. Normally throw a couple of meager opinions out on the Eur/Usd forum every now and then. Lots of capable individuals out there with a wide array of trading styles, opinions and general guesses (at times). It is really enjoyable to read the banter between Americans and Brits at times as it is my opinion that many of them lose their perspective in bull or bear runs in this currency pair. I simply do not have the inclination to try to trade the news at all and am not patient enough to trade of the higher tf's than the 5 and 1m exclusively as I am obviously a scalper by nature. I do however respect and thoughtfully consider ALL individual styles as we all are simply seeking to take just a little bite of this enormous pie at regular feeding intervals. Thanks for chiming in and hope you stick around a while as your input in both appreciated and thought provoking.

here the 15min chart..the sigs look good although one of the reasons for this type of system is so that you can come to the PC in an hours window and grab some points.

If you want to sit and watch for the bigger moves then the 15min is the way to go..

BTW on futures I bring the stop to break even when we hit the middle ma line also if I have a signal that close on or within a couple pips of the line its regarded as a none signal...

Ive had $500 per contract on er2 many a time and stayed on to trade the whole session only to close up $700 per contract or up $200 per contract.. I try to get the average..if volatilty picks up and the $500 is getting easily hit time and time again quickly with good moves and signal then I increase the daily tgt

I should say that on Futures I trade in pairs of contract close one at +2 ( $200) and the other at +3 ( $300) when i re read my post it says per contract.

If after several trades im sitting at +4 for example and i get a signal i close both at 1/2 point profit and walk with 1 full point as its made my 5

heres the 15min chart

missed out a winning signal ..7pips

Paulus

Sorry folks, will try to answer as best I can. Will also check on starting a thread as I have never broached that possibility. As stated earlier, I trade daily so will work on this thread thing this afternoon. Entry signals are pretty straight forward. 2 sma should be approching or crossing 5 sma, stochastics rising above or below the 20 / 80 settings normal to this indicator and ADX should also be converging or crossing. I go with the current candle on the 5m tf and also have the 1m tf chart on the screen in order to confirm direction. The 1m chart will normally show the move 2 - 3 minutes ahead of the 5m chart. I will also try to learn about posting to actual screen shots of varios trades as this thread progresses and I figure out how to do so. It is, however, very easy to set up the indicators and back test this system at your convienence. I fully realixe that the indicators in use are lagging in nature, however, ALL indicators are lagging aren't they. You simply must be able to develope a feel for the pair you have chosen and this particular pair moves with decent volatility and yet does not move too violently. Hope this helps. Lastly, you can also trade the 1m tf with these same indicators, however, the results will be many more trades with around 70% winners. It seems, at least to me, that staying around 90% (5m tf) is good enough for the time being. I am very adaptable though and not adverse to ideas that can enhance results.

Tha last trade went for +11 as the bands tighten so the signals try up which is a good filter as I see it for those whip saw periods..

A short is setting up now and will wait for a red candle or doji to enter..

short triggered

looks good but seems to have a problem when there is a strong trend in place during london and US session.