McElotDino-Trading 4h

Hello,

I would like to present you a trading approach that I have elaborated, that worked well on backtesting for 2008 and I would like to forward test and refine it with you on this thread.

It uses the three indicators attatched below on 4h timeframe. I tested this strategy on gbp/usd. Of course, it is possible to use it on other pairs also, you’d just have to modify the sl and tp.

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Rules:

Wait until elliot wave oscillator shows an arrow.

Wait for candle close.

Enter to the direction indicated by the arrow if dinapoli stoch has crossed and if macd shows the according color.

Don’t enter if dinapoli stoch and macd don’t confirm the trade.

Enter three positions:

1st sl -100 pips/ tp 100 pips
2nd sl -100 pips/tp 200 pips
3rd sl -100 pips/tp 300 pips or open

if 1st tp is hit move sl of 2nd and 3rd to +/-0
if 2nd tp is hit move sl of 3rd to +100

if you think downtrend is strong, then don’t tp 3rd, keep position open until reversal signal occurs.
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The idea of this system is only to check charts every 4 hours and eliminate speculations glued to the screen. It is pretty mechanical, so one can live life away from the computer.

Moneymanagement is important, since there will be losers. But on the monthly run the results will be profitable.


Best Regards

yesterday I've opened

3 positions gbp/usd at 1,8558
sl 1,6558
tp1 1,8458
tp2 1,8358
tp3 1,8258

let's wait and see

I took 1st tp manually at 1,8473 (+85 pips) because of slow price movement and my gmt sleeping hours
2nd and 3rd positions set to breakeven

sl triggered over night +/- 0 pips

total=+85 pips

Hi, Ahses! Thanks for posting your system! Can you explain the rules of entering positions according to indicators? Thanks!

hi trader83, the rules are posted above, 1st post.

Hi Ashes,

Could you elaborate the exit strategy for this system?

u-Tu

Hi,

Could you give the details of the parameter settings and also post a template?

Thanks

Hi,

the exit strategy is pretty mechanical. 1st +100 pips, 2nd +200 pips, 3rd +300 pips. although the third is up to your decision to leave it open if you think that the trend is strong to continue.

yesterday I closed 1st manually because I was facing my sleeping hours and I wanted to secure the profit.

Regards

I've opened this eurchf short trade at close of the 8:00 gmt+1 candle

note that on this pair I work in 50 pip steps

1st tp triggered = +50 pips

2nd and 3rd sl set to +/-0

Nice system. I do trade the 15minutes chart but I am just venturing into 4hr charts. Please, kindly elaborate on how many pairs you trade and possibly gimme some summary on how you manage the tp and sl for each of them. Thanks in advance.

I have just tested this on gbpusd, here I have used an approach of 100 pip sl/tp steps and it has worked out. I basically trade gbpusd with this strategy.

Since I'm interested a lot in eurchf on behalf of another system, I follow this pair closely, that's why I just entered a trade. Due to lower volatility in comparison to gbpusd I use a 50 pip approach on eurchf.

But the only pair I can provide my positive backtesting experience for is gbpusd.

Regards

When did the cross need to happen, exactly 1 period ago?

not neccessarily. as you see on the eurchf trade the dinapoli stoch has crossed before.

sl has been hit

total = +50 pips

Great to read that.
How many pips are you averaging per week with this system ?

Ashed i wonder if not this inproves your strategy a shorter stopploss 20pips

a target as u already have or mayvbe 80 skip all the other indicators except the elliot take buy when you got an arrow and then when the high is violated of the arrow bar the signal bar what do you think ??


best regards

it is a slow system, designed for people that work and have little access to the computer. that's why I'd rather talk about a monthly average than a weekly. on gbpusd the monthly average is about +700 pips

as you see, gbpusd is currently on the indicated downmove, but since the sl for 2nd and 3rd has already been taken we sit on the sideline now and wait. it can take days or even about a week for another entry.

Regards

a shorter sl is more likely to be triggered, especially on gbpusd. that would give the trade a very small frame to mature. since I'm not for re-entries the chance would have been gone after the sl.

Regards

yes but you come in on a different aprosh also you buy on price the cross off high that can be in a middle of a candle this aprosh throw you out when you whrong and keep you in when you right most of the time just have a look.

best regards

I have no doubt that one could manage profitable trades the way you've proposed.
the system here is designed for people that can check only every 4h at candle close. so they can move on with their life away from the computer.
that's why a larger sl is neccessary.

Regards

gbpusd shows a elliot wave reversal arrow, macd is green and dinapoli stoch has crossed. it all depends now on the close of the last candle.
in 4 hours we know more.

Regards