5 Min Keltner System

Thx. See ya later. X

The bar that closed outside the keltner is two bars before your white vertical line. Are you saying the downbar has to occur within a certain time?

edit: Are you saying that if we do NOT have a downbar at the same time stoch ticks down then no trade?

yes thats correct..other wise taking it to the extreme you could have a series of doji candles with stoch coming down from OB into OS and then get a down bar...you cant go short ..

it has to happen with stoch ticking down at same time as candle is a down candle all happening from above the 80 line..ie bar before signal is above 80 then down tick with down candle..thats your signal

Paulus

See you and Ben dropping in. Seems some folks had the wrong stochastic setting and BEn helped figure that out and put folks on the right path. Closing shop now. Thanks again. X

That's my problem then --there are fewer of these actual signals than I was taking. Sometime tonight can you post a pic of your trades from today?

Hi

Its 11pm and im very tired lols so I can list my entry

+4+3-6+7+13-4+15+12-5+11+7 = +57

Here is a snippet chart of 2 signals with entry criteria..allot of signals may be filtered out from my 1st posting but we have to refine this system and as you lose losers you inevitably lose winners ..personally if I bank 20-30 pips a day Im a happy bunny...

Going in with a lmt buy or sell I found very easy an EA just to let you know when either a candle closes out side of the K lines OR an EA that tells you when both stoch are under the 20 or above the 80 would be helpful.

In my futures trading I have a baby listener by my pc I can then go downstairs or make a coffee even watch some Tv out of the trading room.When i hear my wave file I know I have 5mins to get to the pc and look...crude but effective.

I hope the chart explains the entries clearly for you I have also attached the DiNapoli stoch and my template.Enjoy this may not be the full and final version..as Edison once said...blah blah blah...lols

Paulus

Nice, thank you. What do you mean by the lower stoch "takes no further part"?

** Anyone loading this new template and indi, you have to remove the "[1]" in the indicator name.

lookin good!!

Hi Benq

I only use that stoch to help eliminate a few signals,its the fast top stoch that helps with entry.

by saying 'it takes no further part' just means that by the time it goes OB or OS its done its job for me in determining a signal or not..I dont watch it again untill the next signal..it has no input into the entry that all done by the faster top stoch

BUT ...... as you know I'm completely open to suggestions

Cheers

paulus

Here is the screen shot. trades with center of gravity cannot be back tested, as it changes its position to include most of the candles within its range after sometime. So if you check the below screen after sometime you will find that the COG has shifted. I use IBFX mini account and I set a target of 4 to 5 pips. I will post screen shots as and when i trade.
I take just one or two trades a day during asian session as I have a full time job.

Thanks SC Il take another look today with the CG .. yes would be good to see some more charts when you have time thats great


System so far +12 -3-5 didnt take myself was way to early but please considering the markets thin

Paulus

Hello. Paulus,
Do we need Stoh. Dinapoli goes over 80/20 area?
Thank.
Cha.

Hi Cha

yes i think so it quicker giving the signals the other is allot better to make sure we are really over sold or bought its worked well today with a slight change on tp and sl..will post later tonight or tomorrow morning

system on 56 pips which is good

Thanks for posting its all going into the melting pot

cheers

paulus

Hi Paulus,

Your system looks pretty cool. I just had your template up on a 15 minute chart (more by accident than intent). Have you ever tried to apply this to longer time frames? Here was a move of about 30 pips on GBP/JPY.

Thanks cC

No I havnt looked at other time frames,once i get the 5min firing on all cylinders I'l look at a few other time frames for those longer term bigger gains..

Thanks for posting the chart

Ive had a good result today on the K system ....

Rules i used today in the trading room

Longs

signal in normal way

1. Price closes below bottom K line
2. Stoch Di below 30
3. Stoch normal below 20
4. Stoch normal ticks up at the same time as an up bar

Entry

 

1. Set a lmt buy 2 pips below the close of the signal candle
2. Wait to get taken
3. Fix the stop 1 pip below the low of the entry candle
4. Set target is 10 pips

The fixed target worked well today ,even in trends as Im going counter trend the 10 pip tgt has a chance of getting hit.With a fixed stop if we enter with a lmt buy 2 pips below the close we are in effect getting in minus the spread and reducing our potential loss by 2 ticks

We are also increasing the chances of getting out with our target.

The draw back is the move can happen with out price coming down to your lmt buy.

Example

Signal at 10
Set lmt buy at 08
Low of bar 04 set stop to 03 ( stop is 08 - 03 = 5 pips)
target 10 pips so set at 18

Without lmt buy but entering with mkt order

Signal at 10
mkt entry at 12
Low of bar 04 set stop to 03 ( stop is 12 - 03 = 9pips)
target 10 pips so set at 22

Signals today

-2+10+9+10+10+10-8+10+10-7-5+5+10-7-7+10 ( not filled not counted) -2+1+10 = +57

Cheers Paulus

ps daily tgt of 30 pips hit early in the day

Possible improvement.

If anyone has the time, back test.

May want to trade this only in the direction of daily trend only and only between specific times.

Money management not best. May want a second entry (smaller or larger amount than first entry) at a better price in order to prevent spikes. Who ever has the time should back test.

Paulus,

Congrats on the system. Looks like it is coming along quite well! And thank you for all the clear, annotated charts. They really do help.

I just wanted to ask one thing. Where did the signal line on the 5,3,2 stoch go to? One minute it was there and then gone the next. Is that no longer a requirement?

Thanks,
Scott

Hi Scott,

Im an aggressive trader by nature on futures I go long on the next up bar after a down bar outside of the bottom K line..

When i moved over to Forex I did use both main and signal line but found I was using just the main line more and more as it got me in alot quicker.

In the next 20 mins I will be posting the week results with a chart showing a signal for clarification.

Cheers

Paul

Hi Jeta

Yes agree with you about the times ..I really don't know yet the best times to trade EURUSD I'm still getting my head around the fact its 24hr,but a very valid point and one I have to look at.

Again the daily trend I can see where you are coming from but this technically is a scalping system and the pull backs we get in a down trend im sure we can profit from,we also have to have a mechanical way of assessing the daily trend..possibly the CCI above 0.00 longs ...below 0.00 short but I think it will be very restrictive...but again a valid point

2nd entry yes possibly I enter with a lmt buy or sell so get in 2 pips better could enter a 2nd 1 pip below that perhaps again some thing I have to look at

thanks for the comments its all valid

cheers

Paulus

Hi All

We may of fixed the K trading system its taken 10 days or so but it now looks very promising.

I will post my template and the Stoch Di with this post also

SIGNAL LONG

1. Price closes below bottom K line
2. Stoch Di below 30
3. Stoch normal below 20
4. Stoch normal ticks up at the same time as an up bar

Entry

1. Set a lmt buy 2 pips below the close of the signal candle
2. Wait for the lmt buy to get filled
3. Fix the stop 1 pip below the low of the entry candle
4. Set target is 10 pips

RULE

1. Once we have our lmt buy order placed we wait for price to come down to our set lmt.As long as the calculated target has not been hit we leave this order open
2. To make things clearer if the close of the candle is 10 we set our lmt buy to 8 our prospective target is 18 as long as price hasn't hit 18 we leave our lmt buy open
3. If the target of 18 ( example above) is hit and we havnt been filled on our lmt buy of 8 yet then at that point we cancel our order and start looking for another signal
4. If we get a signal in the opposite direction whilst in a trade we reverse

The figures below are all signals generated and are manually back tested ,I live traded several ...as no EA is available the manual back test was the only option open to me.

The signals are taken from the whole session 0.00 to to 0.00 Monday 19th up to Friday 23rd



Monday
+10-2-2+10+10+10+10-5-3+10+10+10-11+10+10+10 =+87 pips

Tuesday
-3-1+10+10+10-8+10-7-6+10+10+10+10+10+10-5+10+10-2+10 = +88 pips

Wednesday
+10-3+10-2+10+10+10-8-5-5+10-4+10+10 = +54

Thursday
+10-4-3+10-3+10-7-7+10-5-5+10-4+10-2+10 = +30

Friday
-4+10+10-6+10-3+10-4-9+10+10-2+10+10+10 = +62

Im very happy with the above results esp the loser/winner ratio in terms of hits and size..it gives a fairly good risk return.This is done by taking the lmt buy and sell to reduce the losing trades and exit the winning trades quicker

A target of 30 pips a day is achievable I think and seems to be a good cut off point...no point in sitting in front of the pc all day !

A couple of signals a day were not taken as the lmt order was not hit before the signal hit its target so a potential 20 pips on average per day is missed by these trades but is outweighed I think by the tighter stops.

The chart I have posted shows a 'messy' signal to show you how the lmt buy order works there are other signals on the chart but not marked some winners some losers.

I have also included an example of your ticket once you are filled on the lmt price you can go into your account management and click on 'modify ticket' to adjust stop and tp to the exact pip

http://www.turboimagehost.com/p/3522...20/%3E%3C/a%3E