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Trading system using relative strength

  • #1,241
  • Edited 8:36am Oct 16, 2008 8:22am | Edited 8:36am
From what I have experienced so far with this approach I am going with this.

It can work very well, It might be a very good semi scalping method.

Can't just enter blindly following 4 hr recommendation.

I have been experimenting using 4 hr & 1 hr or 30 min tf and really going with the shorter TF's entering and taking what it gives over a short period of time .
Looking at the 4 hr recommendation then going to a 1 hr or 30 min to see if the timing is there for an immediate upward move. I want to find pairs that are beginning to or in a cycle moving with the 4 hr.
Much of the time the lower TF's are against the 4 hr and I want to stay out of those situations.
The drawdowns that can arise by leaving the trade on for hours to me are simply unacceptable which do happen as the timing of the 4 hr is just not good enough to avoid the DD's. (10 pairs down 50 pips per pair adds up fast)

Case in point. at the top of the previous hour made about 300 pips in 10 minutes on 10 pair. Closed out re opened 4 pair & made 95 pips in less than 10 min.
now 17 minutes into the next hour it would all be gone and in negative territory big time.

There are times to be in and times to be on the sideline.
Choose you spots.

My advise, use the 4hr / Daily to decide when it is time to be looking to be in the market, enter in trending times, stay out in chop.
Look at the longer terms and trade the pair(s) that are trending, stay away from the pairs that are in chop.
I want to make money, not trade a lot.
  • #1,242
  • Oct 16, 2008 8:34am Oct 16, 2008 8:34am
Reverse trades are working well!!! if it says buy, i sold and vice versa! Paris
Attached Image (click to enlarge)
Click to Enlarge Name: chart photo.gif Size: 101 KB
  • #1,243
  • Oct 16, 2008 8:37am Oct 16, 2008 8:37am
Just closed all trades with +382 pips profit! Paris
  • #1,244
  • Oct 16, 2008 8:43am Oct 16, 2008 8:43am
Quoting Paris Hilton
Reverse trades are working well!!! if it says buy, i sold and vice versa! Paris
Heh.
  • #1,245
  • Oct 16, 2008 8:45am Oct 16, 2008 8:45am
Too funny!! I just love it!! Keep up the good trading, Paris. You might be onto something.

Quoting Paris Hilton
Just closed all trades with +382 pips profit! Paris
  • #1,246
  • Oct 16, 2008 8:49am Oct 16, 2008 8:49am
Hi everyone. I have been a quite reader until recently. Once I got everthing setup, I started trying this out. Not much luck yet. I can not be present for the UK session so I have tried during the day (7:00 AM to around 10 PM central time). So far not a single winner but killer losses. I know I might not be doing this at the very best times but I thought I would do it just in case someone is wondering how this would work during the day. Just yesterday at the 7:00 PM CST candle (IBFX) I entered and 15 min. later I was -2800 pips in the tank.

As far as taking the opossite signals, that is an idea I played with before and it might work sometimes due to the indicators lagging behind the price. By the time the indicator catches up with price (during a range), the price reverses direction as soon as the signal appears. The attachment bellow is from my trade entered at the opening of the 7:00 AM CST candle using this signals.
Attached Image (click to enlarge)
Click to Enlarge Name: untitled.JPG Size: 145 KB
Please pull my head out of my ass, I am running out of oxygen...
  • #1,247
  • Oct 16, 2008 8:50am Oct 16, 2008 8:50am
Good morning,
Looks like this thread should be wind down to close.There has been all kind of changes made to original Idea.Infact some one wants to trade opposite of what signal says. That says a lot ! May be it will work or may be not or may be just one time phenomena.Who knows?

May be it is another system that goes into dustbin filled with "holy Grail systems"

Thanks.
Kris
  • #1,248
  • Oct 16, 2008 8:52am Oct 16, 2008 8:52am
Quoting Paris Hilton
Just closed all trades with +382 pips profit! Paris

Congrats Paris!
  • #1,249
  • Edited 9:15am Oct 16, 2008 8:54am | Edited 9:15am
Here's an approach that might work for those who want to stick with one time frame and no TA.

1. open two accounts with the same broker
2. enter basket of trades as you are now doing using CCFp indicator.
3. when trades begin to move positively a certain amount, you enter the real trade in the second account. This way you are catching the momentum of the market. Some experimentation may be necessary to determine how much the pair has to move before you enter the real trade.

Trades are entered individually, not collectively. Exits could also be done individually when an acceptable profit has been achieved.

Its worth a try.
  • #1,250
  • Oct 16, 2008 8:54am Oct 16, 2008 8:54am
Hey bro,

take it easy.

I appreciate and am grateful for this thread and system.

I'm sure many are as well along with me, and keep up the good work.

Thanks

Quoting ES Trader
Good morning,
Looks like this thread should be wind down to close.There has been all kind of changes made to original Idea.Infact some one wants to trade opposite of what signal says. That says a lot ! May be it will work or may be not or may be just one time phenomena.Who knows?

May be it is another system that goes into dustbin filled with "holy Grail systems"

Thanks.
Kris
  • #1,251
  • Oct 16, 2008 8:54am Oct 16, 2008 8:54am
Quoting ES Trader
Good morning,
Looks like this thread should be wind down to close.There has been all kind of changes made to original Idea.Infact some one wants to trade opposite of what signal says. That says a lot ! May be it will work or may be not or may be just one time phenomena.Who knows?

May be it is another system that goes into dustbin filled with "holy Grail systems"

Thanks.
Kris
ES I wouldn't close it down. Good systems evolve and give rise to variations. That's normal. I'm sure there are people still using the original form of the system.
  • #1,252
  • Oct 16, 2008 9:03am Oct 16, 2008 9:03am
I went thru all the pages of this thread and for what I understand Ferrux's indicator follows the original rules when set to trade level 1. Doesn't it? If not, may be that explains why I am not doing good. Can someone please clarify this for me?

Also, I'll like to clarify that when I say that oposite signals might work, I don't mean to say that for this system but for many others I've seen. It simply follows the logic that indicator lag behind price and therefore it is bound to happen.
Please pull my head out of my ass, I am running out of oxygen...
  • #1,253
  • Oct 16, 2008 9:08am Oct 16, 2008 9:08am
Quoting Pluto2
To make your fantastic indi simpler;
why not display the letters for sell pair in red and buy in green,
no need for the arrows, sell or buy beside it.
I think that all Red or Lime will be too much. It's why for an easy reading, I plotted an arrow before the symbol to show also the color ...

... and I like the the actual design

FerruFx
MT4/MT5 EAs/Indicators/Alerts coder
  • #1,254
  • Oct 16, 2008 9:14am Oct 16, 2008 9:14am
Down 850 pips since 7:00 AM CST
Please pull my head out of my ass, I am running out of oxygen...
  • #1,255
  • Oct 16, 2008 9:16am Oct 16, 2008 9:16am
Quoting tommyd
From what I have experienced so far with this approach I am going with this.

It can work very well, It might be a very good semi scalping method.

Can't just enter blindly following 4 hr recommendation.

I have been experimenting using 4 hr & 1 hr or 30 min tf and really going with the shorter TF's entering and taking what it gives over a short period of time .
Looking at the 4 hr recommendation then going to a 1 hr or 30 min to see if the timing is there for an immediate upward move. I want to find pairs that are beginning to or in a cycle moving with the 4 hr.
Much of the time the lower TF's are against the 4 hr and I want to stay out of those situations.
The drawdowns that can arise by leaving the trade on for hours to me are simply unacceptable which do happen as the timing of the 4 hr is just not good enough to avoid the DD's. (10 pairs down 50 pips per pair adds up fast)

Case in point. at the top of the previous hour made about 300 pips in 10 minutes on 10 pair. Closed out re opened 4 pair & made 95 pips in less than 10 min.
now 17 minutes into the next hour it would all be gone and in negative territory big time.

There are times to be in and times to be on the sideline.
Choose you spots.

My advise, use the 4hr / Daily to decide when it is time to be looking to be in the market, enter in trending times, stay out in chop.
Look at the longer terms and trade the pair(s) that are trending, stay away from the pairs that are in chop.
I want to make money, not trade a lot.
Great posting!

It's exactly how a multi TFs trading system works.

The Level in the CCFp-Diff might be a good filter to avoid choppy markets.

FerruFx
Attached Image (click to enlarge)
Click to Enlarge Name: CCFp-dashboard.gif Size: 54 KB
MT4/MT5 EAs/Indicators/Alerts coder
  • #1,256
  • Oct 16, 2008 9:16am Oct 16, 2008 9:16am
I would not forget this method so soon.
The core idea is a Very Good idea. That should keep this thread alive as some will take that seed & evolve it.
Just the basis of compairing the strength of individual currencies in my mind is simply a must as a way of looking at deciding what pairs to trade.
It seems illogical to not think in this manner.

Why on earth would a trader not want to be aware of that. (like I have been before this thread)
Oh I had heard of it , expressed something like as Currency Intermarket Relations or something that glazed my eyes over when I heard it.

Thanks for bringing this subject to my attention EStrader
  • #1,257
  • Oct 16, 2008 9:29am Oct 16, 2008 9:29am
My 8:00 orders all exceeded a loss of -$300 and my global stop loss EA killed the trades. Again fxdd fwiw.
  • #1,258
  • Oct 16, 2008 9:30am Oct 16, 2008 9:30am
Out at -1000 pips. Oh well. Will continue trying.

Where there is a will, there is a way.
Please pull my head out of my ass, I am running out of oxygen...
  • #1,259
  • Oct 16, 2008 9:31am Oct 16, 2008 9:31am
Quoting tommyd
Just the basis of compairing the strength of individual currencies in my mind is simply a must as a way of looking at deciding what pairs to trade.
Almost all the personal works I've done since 1 year are based on strength of individual currencies.

Since a friend (thanks FxC...) pointed me on a well known spreadsheet, I can't do without this way of viewing the market.

FerruFx
MT4/MT5 EAs/Indicators/Alerts coder
  • #1,260
  • Edited 10:21am Oct 16, 2008 9:40am | Edited 10:21am
My run finally crashed with a series of 5 consecutive 100 pip stopouts.

I had a look at the charts again, and noticed something else, the pairs seemed more likely to reverse at the cross, not when they are stronger/weaker than each other.

Some analysis of the losing trades show that they didn't have a chance of breaking the 30 pip move to breakeven, so the solution thus far is to tighten the stop, trade on the cross, and aim for smaller profits.

This next run has a 10 pip TP with a move to breakeven + 1 and trailing stop at 6 pips with an initial stoploss of 20 pips. We'll see what happens =D
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