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Over The Rainbow

  • #1
  • First Post: Edited Sep 19, 2008 7:30pm Sep 18, 2008 4:25pm | Edited Sep 19, 2008 7:30pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Over The Rainbow v1.0

I used this system for many years with great results. It is the simplest sys in the world, it uses just price action, no indicators, oscilators, lines, fundamentals or anything you can think of, just the good ol trend and break outs in price.
I placed a Color SMA(55) for the unexperienced to see the trend better. This is my version of the Rainbow
It works in any pair and any time frame. Later we will fine tune, you can add many things to it.

In this first setup we have a downtrend:
1m EUR chart with Color SMA55 (Type2)
After a top, we take first position on a 1,2,3, then add positions at every support break and exit all positions on the break of latest resistence.

This example...about 125pips in less than 3 hours
Attached Image (click to enlarge)
Click to Enlarge Name: 01 chart2.gif Size: 34 KB
"Money is only a part of wealth" Q.
  • #2
  • Sep 18, 2008 5:42pm Sep 18, 2008 5:42pm
Thanks for the rainbow thread that I have read in the first complete version...

I appreciate your contibution and I'm happy to meet someone 'human' in this world of traders...

Concerning the system you present, I tested it a few months ago on eurusd in 15 minutes and this system has been systematically losing ...
My money management was to size each order so the potential loss is fixed and constant for each order.
I pursued this test over several days, which can be matched to a period of range ...
But it turned out to be systematically loser on the test period.
So...
  • #3
  • Sep 18, 2008 6:17pm Sep 18, 2008 6:17pm
Hi 4xq, hope the EMA 55 is apply to close. This was what i finally resulted to myself but i was using MA IN COLOR u gave in the other thread. God bless. Nerry.
  • #4
  • Sep 18, 2008 8:22pm Sep 18, 2008 8:22pm
Quoting 4xq
Over The Rainbow v1.0

I used this system for many years with great results. It is the simplest sys in the world, it uses just price action, no indicators, oscilators, lines, fundamentals or anything you can think of, just the good ol trend and break outs in price.
I placed a Color EMA(55) for the unexperienced to see the trend better. This is my version of the Rainbow
It works in any pair and any time frame. Later we will fine tune, you can add many things to it.

In this first setup we have a downtrend:
1m EUR chart with Color EMA55
After a top, we take first position on a 1,2,3, then add positions at every support break and exit all positions on the break of latest resistence.

This example...about 125pips in less than 3 hours

Please could you attached the Color EMA indicator? Thanks
  • #5
  • Edited 1:09pm Sep 19, 2008 1:48am | Edited 1:09pm
Quoting 4xq
In this first setup we have a downtrend:
1m EUR chart with Color EMA55
After a top, we take first position on a 1,2,3, then add positions at every support break and exit all positions on the break of latest resistence.

This example...about 125pips in less than 3 hours
4xq,

At what price did you enter your sell order? And also, when you say "we take first position on a 1,2,3", are you talking about the 1-2-3 chart pattern?


Topgun
"Success is not a fantasy, it's a formula." - MTI
  • #6
  • Sep 19, 2008 6:23pm Sep 19, 2008 6:23pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Xtian
Thanks for the rainbow thread that I have read in the first complete version...

I appreciate your contibution and I'm happy to meet someone 'human' in this world of traders...

Concerning the system you present, I tested it a few months ago on eurusd in 15 minutes and this system has been systematically losing ...
My money management was to size each order so the potential loss is fixed and constant for each order.
I pursued this test over several days, which can be matched to a period of range ...
But it turned out to be systematically loser on the test period.
So...
Needs a trend, won't work in range
"Money is only a part of wealth" Q.
  • #7
  • Edited 7:28pm Sep 19, 2008 6:24pm | Edited 7:28pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting NerryE
Hi 4xq, hope the EMA 55 is apply to close. This was what i finally resulted to myself but i was using MA IN COLOR u gave in the other thread. God bless. Nerry.
MA in color type2, I presumed is EMA, but is SMA, sorry...doesn't have other setting, for open, close.....
Type1 Exponential moving average,
Type2 Smoothed moving average,
Type3 Linear weighted moving average.
Type 4 seems to be LSMA in the code
Attached File(s)
File Type: mq4 MA in Color.mq4   4 KB | 1,462 downloads
"Money is only a part of wealth" Q.
  • #8
  • Sep 19, 2008 8:25pm Sep 19, 2008 8:25pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Over The Rainbow v2.0
Look at the next 2 TF up for the trend to be the same

I placed s/r levels and vertical time lines for you to see in detail
From NY open...3.5 Hours...one pair (eur)...4 trades...~340pips
Maybe it is working...

Q.
Attached Image (click to enlarge)
Click to Enlarge Name: 02 fri.sep19.2008.eur.gif Size: 56 KB
"Money is only a part of wealth" Q.
  • #9
  • Sep 20, 2008 4:56am Sep 20, 2008 4:56am
Thanks for this exemple.

What are the conditions of closing trades?

When I tested this method, and I closed my position and reverse when prices fall below the last lower high in the case of long positions and the last higher low in the case of short positions. Under these conditions, some days of high volatility, it wins, but other days "standards", it loses ...

It was of course just during the NY + London session...

What system do you use for ranging market ?
  • #10
  • Edited 8:11am Sep 20, 2008 5:55am | Edited 8:11am
Attached Image (click to enlarge)
Click to Enlarge Name: ff.gif Size: 38 KB


I like your system very much.
It is the simplist 1.2.3 one I have seen


you would you take trade one?
do you wait for the min. to end or take on the break.

Using the 55 Ma...
does price have to be on the side of it you want to trade
esp on the 1 min ... or will buy coming throgh the 55.
Now would you trade if the 2 highter charts prices was on the right side
but on the lowest one it was not?
what if all is the same as above-
& the 55 on the lowest chart is pointing in the right way would you trade?


teb63
  • #11
  • Sep 20, 2008 9:05am Sep 20, 2008 9:05am
very nice system.
few questions - what is the initial SL of the first entry?
what happens if we break the previous high/low after a min or 2? we get out immedietly and maybe risking missing the entire trend? or letting it run few more mins or pips?
I looked for an example from the 18/09 to see if i understand the concept.
from 18:00 broker time we are allowed to take a short positon.
first entry is shory 1.4381 and then we enter again short 1.4365 and we get out after the break of line 2 i quess 1.4370 including spread. just few pips from this strong trend. am i correct about the management of this trend and how could we join it later because it was a storng trend we missed here according to the rules?
Attached Image (click to enlarge)
Click to Enlarge Name: eurma.gif Size: 36 KB
  • #12
  • Sep 22, 2008 12:48am Sep 22, 2008 12:48am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Topgun_1
4xq,

At what price did you enter your sell order? And also, when you say "we take first position on a 1,2,3", are you talking about the 1-2-3 chart pattern?


Topgun
#1 @ 1.4410...2-3 pips after breaks the support....and yes, 123 chart pattern
"Money is only a part of wealth" Q.
  • #13
  • Sep 22, 2008 1:00am Sep 22, 2008 1:00am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Xtian
Thanks for this exemple.

What are the conditions of closing trades?

When I tested this method, and I closed my position and reverse when prices fall below the last lower high in the case of long positions and the last higher low in the case of short positions. Under these conditions, some days of high volatility, it wins, but other days "standards", it loses ...

It was of course just during the NY + London session...

What system do you use for ranging market ?
It loses in a range, sideways market, it needs a trend...If I trade this sys, I stay out if is no trend on the higher 2 TF...it is as good as winning
"Money is only a part of wealth" Q.
  • #14
  • Sep 22, 2008 1:12am Sep 22, 2008 1:12am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting TEB63
Attachment

I like your system very much.
It is the simplist 1.2.3 one I have seen


you would you take trade one?
do you wait for the min. to end or take on the break.

Using the 55 Ma...
does price have to be on the side of it you want to trade
esp on the 1 min ... or will buy coming throgh the 55.
Now would you trade if the 2 highter charts prices was on the right side
but on the lowest one it was not?
what if all is the same as above-
& the 55 on the lowest chart is pointing in the right way would you trade?


teb63
yes, your trade entry 1 in by the simple 123 and just broke the SMA too
I need in all 3 TF price to be on the same side of SMA55 and on 1m to close the bar 2-3 pips after the break of s/r
"Money is only a part of wealth" Q.
  • #15
  • Sep 22, 2008 1:35am Sep 22, 2008 1:35am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting HUnter123
very nice system.
few questions - what is the initial SL of the first entry?
what happens if we break the previous high/low after a min or 2? we get out immedietly and maybe risking missing the entire trend? or letting it run few more mins or pips?
I looked for an example from the 18/09 to see if i understand the concept.
from 18:00 broker time we are allowed to take a short positon.
first entry is shory 1.4381 and then we enter again short 1.4365 and we get out after the break of line 2 i quess 1.4370 including spread. just few pips from this strong trend. am i correct about the management of this trend and how could we join it later because it was a storng trend we missed here according to the rules?
I use 21 pip for EUR...other pairs are different
It breaks the entry (previous s/r) almost all the time shortly after that, that's why we put a SL in case of a trend reversal, but if we have the 2 higher TP trends in the same dir, it usualy 1m will go that way too even if breaks a bit the entry.
In your example we miss a part of the 1m trend, but we re enter again after first exit, @ 1.4355 and start building positions again...as i see the 5m and 15m trend continues until time is 0.00 and probably longer as I see the MA slope is down. We can use trend lines too, of corse, for fine tuning
"Money is only a part of wealth" Q.
  • #16
  • Sep 22, 2008 1:51am Sep 22, 2008 1:51am
So the system is in fact 3 ducks in a row, with more advanced entry and exit strategy? Three duckies is using 60SMA, if I remember correctly...

R

Quoting 4xq
yes, your trade entry 1 in by the simple 123 and just broke the SMA too
I need in all 3 TF price to be on the same side of SMA55 and on 1m to close the bar 2-3 pips after the break of s/r
  • #17
  • Sep 22, 2008 1:58am Sep 22, 2008 1:58am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Xtian
Thanks for the rainbow thread that I have read in the first complete version...

I appreciate your contibution and I'm happy to meet someone 'human' in this world of traders...
So...
Thx X, you're welcome and I'm always happy too to meet good people
Dan
"Money is only a part of wealth" Q.
  • #18
  • Sep 22, 2008 2:10am Sep 22, 2008 2:10am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Rocroy
So the system is in fact 3 ducks in a row, with more advanced entry and exit strategy? Three duckies is using 60SMA, if I remember correctly...

R
I don't know about duckies, just that they taste good with cabbage
Duck on cabbage is an excellent recepie... 3 of those is a feast
I just use SMA55 because I use fib numbers and shows the trend pretty accurate, and 123 is an very old method used in commodities before the PC was invented, I used it drawing charts by hand and getting the numbers from the newspaper
"Money is only a part of wealth" Q.
  • #19
  • Sep 22, 2008 2:25am Sep 22, 2008 2:25am
take a look at this trade from now.
long above 1.4500 and again long above 1.4516 and the price went back to 1.4498 hit the stop and went back up.
maybe the management of the trade should be different beause a good trade here ended up with a 20 pips sl according to the rules. maybe enter 2 lots above 1.4500 and move to be after breaking the next 1-2-3 like here.
what do you think?
Attached Image (click to enlarge)
Click to Enlarge Name: stop.gif Size: 57 KB
  • #20
  • Jul 18, 2010 10:32am Jul 18, 2010 10:32am
BumP...bit late, but better now than never. Maybe we can get more simple trading methods again like this one.

Thanks to the thread opener for sharing a useful but simple method. Eye opening.
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