bringin sexy back - stochastics

One other thing that was not mentioned too much except by Melpheos and by Boxing to me. Don't get your charts overly cluttered with indicators. Concentrate on reading the stochs and seeing how they respond to price movement. If you get too many indicators on the charts, you'll get distracted.

I've been demo-ing for almost 2 years different strategies, but this one fits my character and trading style like a glove. I think STO's are the best.
I am thinking going live with it. Is anyone using it live? Which broker would you recommend for this strategy?

Thanks,
KT

JD,

Good to see you posting. I've been reading this for a few weeks, and it appears to have gone pretty quiet (just as I get up to speed!).

This system seems pretty solid, and I have been having pretty good luck even while working full time.

What times are you trading these days?

D

Hi,

I have observer in last couple of days that when I get an entry signal (for sell) on H1, 5 stoc in 15min and 30 min is near oversold region, what should I do in this situation, should I go ahead and enter or should I wait for 15/30 min 5 stoc to go up and cross down again? If I wait for 15/30 to pull back and give fresh entry by that time H1 5 stoc is nearin oversold.
I am confused by this scenario, please guide me.

Thanks

FXLearner,

JD can correct me if I am wrong, but I would be looking to the higher timeframes for confirmation instead of the lower. If on 1hr screen, look to the 4hr/daily.

D

That is correct, look at the 4hr/daily if trading off the 1hr. Try to avoid counter-trend trades that run against the 4hr. You may squeeze out a few pips but in the long run, you'll get steamrolled

JD thank you thank you thank you! This is probably the only confusing part of what is otherwise a very elegant and otherwise easy to trade system. Just so you know, I have read the whole thread once and recently started printing it out so I can study and highlight it. That will take a while

OK, I have these questions for you:

look to longer time frames for confirmation. If I'm trading 15, the one hour should be in the same direction? What I found happening to me is this: 15 was good 5,3,3 overbought/oversold opposite the 20 and 50 (either they were trending away from the 5,3,3 or pasted up in the margins) so that when the 5 crossed over, I went in. Unfortunately, the 1 and 5 may not have been with me at that moment. So I would immediately lose the spread plus 10+ pips and sometimes get stopped out. What I was trying to do was come up with a relatively sure fire way to nab 10 pips at a time so that I can trade multiple lots and really make a living at this. So either: 15 min is too whipsawy anyway or my stops are too tight or I should trade 1H with larger stops and take a valium for any drawdowns before it moves in the direction of the longer trend. I hope this makes sense.

Also the "magenta" stoch was a MTF 5 minute 5,3,3 stoch overlayed on the boxing indicator of the 5, 20, and 50 of the current time frame. So I though that if my green 5 crossed over and the 20 and 50 confirmed the trend that I would peek at the MTF 5M 5 to make sure it wasn't overbought/oversold in the OPPOSITE direction just at the moment I pulled the trigger, cause that would mean an instant drawdown of several pips over the spread. I hate that!

Thanks!!

FW

JD regarding the 99% success with spudfyre, which of the systems are you referring to, escalator to pips, the one with fibs, etc.

On the boxingislife thread, I seem to do best with a true slingshot trade, but this is not his "favorite' trade which is a stongly trending 20 and 50 stoch between the 20 and 80 lines.

So of the above, exactly which did you find most successful, by that I mean least likely to produce a losing trade or big drawdown?

gracias

I tried the system with fibs only a couple of times and won 2 and broke-even on 2 so I dropped that one. The escalator to pips is the one that I was referring to. I think my max dd on that system was 15 pips with a max profit of +80 pips. What I like most about the Sexy system is that you don't have to worry about picking tops and bottoms. You may miss some pips because you're not jumping on the first part of the move but it's consistent profits that we're all after right? so as long as at the end of the day we're positive, that's all that counts. Never cry over missed pips.

Correct!

So which boxingislife setup to you prefer, strongly trending 20 and 50 stoch with a 5 stoch pullback crossover, or a true slingshot: the 20 and 50 pasted against 0 or 100 with 5 crossing over at the other extreme?

do you still use the yellow 100 period stoch line or throw that one out?

Maybe you could give an idea of your thought process of your most common trade, ie:
-look at 4 hour
-drop down to 1 hr
-look for trending long term stoch
blah blah blah

so that I can better understand and emulate your success.


200 pips per week. Dude!

show us the way!

Getting kinda late in the trading morning but this may give up a few pips if it sets up right.

JD

Just looked at that trade you said was setting up. The M30 5 minute stoch may also turn down from oversold to back up the M15 chart - the 1H less robust pullback of the 5 stoch but may turn down around the 50 line. Is this the type of higher time frame support you are looking for when entering a trade on the 15? thanks.
FW

I'm not sure I understand what you're asking but that 15m setup didn't work out. The 30m and 1hr looks to be setting up though. My 4hr chart shows a sexy setup right now but I'm holding for a better setup on the smaller timeframes to avoid the drawdown.

JD, here's the chart, I believe this is the trade you saw, I did enter at the down arrow, but there is no volatility here and as the 5 stoch approached oversold, I whimped out and closed for +3 pips.

So my question is, why is this not a good trade? The twenty and 50 stochs are trending down, but it looks like they may have both just crossed over their signals (do you even look at these crosses anymore?). Is there another reason this trade didn't set up properly because this is the stuff I'm trading! 3 pips - not so good. Also, since you need some volatility to make pips, is there an indicator you use for that? Thanks. again.

FW

Nah I wouldn't have entered on that signal you got. here's the one that I'm in on..

JD

I see the great set up, but was there enough volatility then to nab any pips? I've been searching for an indicator to tell me when its volatile enough that you can see some movement. I'm now looking at bollinger band width. Does volatility play a role in your entries?

fw

I ended up having to hold that trade for a while longer than I normally would but I got +18 pips off of that one since it was so late in the day. And yes, what I'm using is ADX to measure volatility.

can u upload charts with examples?
How do u interpret adx to be sure it is HI volatility ??
I never used it before and im not sure if i read it correct.

I'm a little busy with work today but will upload charts as I can. As for adx, I just make sure it's trending above 25.

Hi,
In this attached chart is AUDUSD setting up for a sell trade (sling shot) when 5 stoc crosses back down? My only concern is the pair has not retraced enough. H4 is still supporting this.

Please comment on this.

Thanks