Paulus - Traffic lights

Thank you Paulus for this great thread.
I like Tazmaan idea of the CCI24, I have tried it visually on the 5min, and even if it is not spot on on the minute, it might help.
In my opinion we should watch out for signal that come after a noticeable swing, when price consolidate and indicators might lag, basic price action.
I'll be testing this system live from tomorrow after playing around with it during this week end.
Happy pipping to all

hi paulus,

thank you for sharing your easy system, i really like it, cant wait for next week to begin ...


i was thinking about maximizing profits. i have added the 200sma on the 5and 15min chart, if the signal is long and price is above sma200, the exit is a short signal on the 15min chart. entry on 5 min by your rules, stop loss 10 pips, but after 20 pip gain, close out half and let the other half go until the contra-signal occurs. if the position gets stopped out, still banked +10 pips, but the possibility to gain 50 pips and more on the other half of the position.

i dont know if it works or not but will watch it closely next week

thanks paulus

Titus.

AUSGEZEICHNET !!! EXCELLENT !!!

Good observation and it works, trust me, have been using it already in another strategy that I used before getting to this one, BUT..........Paulus is not teaching that as he believes in the system to not swim with the sharks unnecessary.

So his rules work and pay you.
Your rules work and pay you more.

Personally I feel that Paulus can make more money adapting what you mentioned, while NOT risking getting bitten by the shark market change, thus not damaging his style, just needs to change his settings.

PS: following this style, you would have banked already min 20 pips when the reversal sets in.

I think this is a great system, just what I have been looking for.

Only one question: Has anyone ran any backtests to see which stop loss is the most profitable, ie. 10, 15 or 20? I agree with the take profit of 20 but seem to get stopped out at 10 only to see the trade continue to 20 pips profit.

Thanks

Is this with or without the spread factored in?

You have never used the Candle with 8 0r 10 tick/Candle Breakout? I have seen in Trade Navigator.

hi all

Just back from week end away just walked through the door left friday night will attempt to answer questions as soon a humanly possible

Then why don't you try with 20?

Backtesting has no value, stop getting fooled by smart brokers, test on demo if you don't feel secure about your own trading style.
THAT is where demos are made for.

Good luck.

Hi, Paulus, what is your opinion about correlation (so far)?
2. there is sentiments - ADX is absolutely useless, "trend chaser, not follower"; what do you think about it?
thank you

Hi Taz will set up the CCI 24 on the 5min and take a llok over mon and tues cheers for the heads up.

Pip - Brilliant I think it would help alot all on one will be easier keep me posted cheers....

Joem - its stacking the odds in your favour if yopu trade with the lobegr trend.. 15 for 5 min entry sems right ..the 30 or 60min for the 5min entry is too large and wont give an accurate representation of how things are unfolding in my opinion.

In an uptrend the rallies will be stronger than the pull backs we want to trade the rallies..in a down trend the pull backs will be weaker than the drops so we want to trade the drops its not a guaranteed thing but gives us that edge i think

vbro - a normal signal is when the CCI is going red through zero to blue for longs blue down through zero to red for shorts on the 15min ..as soon as the 1st 15min bar has formed and completed and is say red any signal on the 5min that is short is deemed to be safe as the down trend at this point has been running for 15mins what we want now is a pull back on the 5min which is defined as the 5min HA going blue then as the 1st red bar completes on the 5min we go short.... we are assuming that this will be the next push down on the 15min to continue the trend..hope that helps

cesare -thanks for the observations i agree with what your saying for me it has to be mechanical if you can come up with a mechanical rule for that and it helps great we will add it .. sounds good

Titus..used to use a simlar thing on Futures on the Russell 2000 trading 2 contracts one was called 'Account Builder',,say our 20 pips to grow the account the other was called 'Bonus runner' which captured more points I did put it on a blog not updated since Ive been trading Fiorex but here the link I will be interested in your findings

If you have 10mins it may be worth a read http://paulus10-trendseeker.blogspot.com/

rcbarlow - re the stop loss this can be personal to you if you wish to risk 10% of your account per trade your stop will be larger but technically so should your tgt to get that 2:1 risk reward I think.. On my end of day trading with Forex I use the last swing low as a stop for my longs last swing high as a stop for my shorts in day trading its not viable I think the last swing low may be 30 pips away so to realise a 60 pip tgt may be pushing it but on my eod I may be 100 pips from a swing low and my tgt will be 200 pips but I don't care if it take 10 days to get there with day trading I want to be flat every night,but Il be interested in any results you have

R Raygun I always take 10 pips from my fill price I set my sl and tp roughly then once filled modify my ticket to get the 10 and 20 exactly right..btw thanks for all the graft on the EA earlier very much appreciated appreciated thank you.

Fxxx - I cant use the adx to be fair there are very few indicators I like..I like the CCI macd RSI because Ive always managed to make money with them.They judge a pull back for entry really well I love the HA though I must say.

Cheers

Paulus

I tend to leave my 10 pip stop wher it is but for the more conservitive you may want to protect your account by moving your stop when ever we reach a danger area..in the case of a long we have just taken that will be the lat swing high ..this only applies if we are not above the high of the day.

here is my chart from friday and Ive marked where the danger areas are if you bring your stop to break even at this point you are protected in case the swap makes a double top and punches down.

the 2nd chart show a position in more detail its not a great example but hope you get the idea.

I used this on my futures trading

A example of a -10 pip loss that could of been a +0

This example is a perfect set up of what could happen..dont forget we are trading with the trend so idealy we are always going to have to break the last high for a long and the last low for a short.

please dont forget you will remove losers but you will also remove winners moving your stop like that but it is a safer way to trade

Paulus

Another thing I used to use on Futures was 3 successful signals in any one trend and Id stop trading that trend untill a new one developed.

I found it was rare to get 3-5 winning signals from a trend they get tired and round over or bottom out

If I had 3 winners from it then I had taken the best of the momentum and would stop trading ..I got out the water

Not sure with forex will try to keep a check on it

Paulus

My first trade of the week

Got +25pips, I like!
Price bounced back off a trendline I had on the 15min and I used as TP.

This chart shows the CCI24 on the 5 min chart, but I'm still using the 15min.

Happy trading all

hi freddy,

danke !

look first trade for today, i didnt take this trade, just want to see how this works out, but by now 100 pips plus, waiting for 15min. cci to cross zero line.

hi cesare,

nice trade

did you enter on the closed 15min candle? paulus mentioned that its not necessary that a 15min candle closes above/beyond zero line, the 5min candle has to, when 15min crosses. (hope thats correct)

Hi Titus, I have entered when the 5min crossed, the 15min CCI was already long since 7:45 UK time.
My entry was at 1.4515 (8:25 UK) including the spread, right at the zero bounce of the CCI8 on the 5min.

yes i see

that was a good one

I just gave back 11pips on a weak signal around a time that probably shouldn't have traded... I even have the session lines on the chart, I guess I tried to end the day early, I'll be back fo NY, not big deal, I hope... :-)

here is mtf-cci, maybe someone will find it useful