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Trading System Using Relative Strength-Part 2

  • #1
  • First Post: Edited Nov 14, 2008 8:44am Oct 16, 2008 4:39pm | Edited Nov 14, 2008 8:44am
To all of those still interested in exploring ES Traders great method of using Relative Strength of Currencies:

With all due respect to ES Trader, I would like to invite all those who have contributed to this method and those who have a continuing interest in its evolution to continue to explore.

I am by no means an expert in Forex but continue to study and learn daily. Recently a thread was started here at FF by Beach Bum located here: http://www.forexfactory.com/showthread.php?t=109599 which has some great postings by Pipsqueak on post #14, 39,41, 46 & ForexHarry #42, 43, 81. There are also some good discussions by Capitalist 88.

Let's continue to learn as this method is, according to the Professionals, the closest we will come to becoming successful Retail Traders.

Here is the link to the original thread by ES Trader: http://www.forexfactory.com/showthread.php?t=113181
Here is an additional link with a different variation of this method, by Kang_Gun: http://www.forexfactory.com/showthread.php?t=123284
Respectfully submitted,
1Trader2
AKA Trader 1 in other forums...
  • #2
  • Oct 16, 2008 5:24pm Oct 16, 2008 5:24pm
Paris,

Every trade is positive pips when I reverse! In my last three session, all lasting less than an hour, I have achieved over $600 today!

Mitch
  • #3
  • Oct 16, 2008 5:54pm Oct 16, 2008 5:54pm
Quoting 1trader2
To all of those still interested in exploring ES Traders great method of using Relative Strength of Currencies:

With all due respect to ES Trader, I would like to invite all those who have contributed to this method and those who have a continuing interest in its evolution to continue to explore.

I am by no means an expert in Forex but continue to study and learn daily. Recently a thread was started here at FF by Beach Bum located here: http://www.forexfactory.com/showthread.php?t=109599 which has some great postings by Pipsqueak on post #14, 39,41, 46 & ForexHarry #42, 43, 81. There are also some good discussions by Capitalist 88.

Let's continue to learn as this method is, according to the Professionals, the closest we will come to becoming successful Retail Traders.

Respectfully submitted,
1Trader2
AKA Trader 1 in other forums...
Count me in!!
I think we can make this work in any market condition if we all work together.
I like the MTF ideas and think they should be explored more.
I also think that more money management techniques should be discussed.

Once again thanks to ES for opening the door for all of us and i hope he comes back.
  • #4
  • Oct 16, 2008 5:54pm Oct 16, 2008 5:54pm
Quoting mitchp
Paris,

Every trade is positive pips when I reverse! In my last three session, all lasting less than an hour, I have achieved over $600 today!

Mitch
There have to be times when reversing is right, and it is easy to see why.

A currency could have gained strength for a few hours and be ready for a retrace. Trading in the direction of the strength will lead to dd if the price retraces, so reversing is trading into the retrace.

Spotting when the market is about to retrace would be the key to reversing. Does this call for eyeballing individual charts before placing individual trades within the basket?

Or, are we over-complicating things? Shooting for 100 pips, I haven't lost a basket trade using ES's system since finding it last week.

It is a shame that Kris threw a hissy fit and took his bat and ball home. As well as cutting off the rest of us, he also shut himself off from some seriously clever and creative minds here. I hope others will find this thread and keep the discussion going.


  • #5
  • Oct 16, 2008 5:58pm Oct 16, 2008 5:58pm
hi guys,
reverse? maybe yes!
An example.
4H & 1H

Lubo
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If I know how, I tell You!! Few but Good!!
  • #6
  • Oct 16, 2008 6:28pm Oct 16, 2008 6:28pm
Quoting mitchp
Paris,

Every trade is positive pips when I reverse! In my last three session, all lasting less than an hour, I have achieved over $600 today!

Mitch
Thats interesting mitch !! But tell us on what basis you decide whether you'll go with the signal as is, or whether you'll reverse? How would you know what to do when?

There's no way of speculating in advance before you take the trade whether trading in the suggested direction would work or whether you should reverse and trade the other way?
  • #7
  • Oct 16, 2008 6:32pm Oct 16, 2008 6:32pm
Those of you who are trading live/demo IBFX mini what lot size do you use and how many lots?

Can anyone suggest a suitable SL and TP for this system? I was thinking about a 50 pip stop but that seems rather tight.
  • #8
  • Oct 16, 2008 6:38pm Oct 16, 2008 6:38pm
I have been using 4hr TF to show to main trend and using 15mins TF to do entry. Tp 10 pips with no stop loss.

I only enter once for each currency shown on the 4hr TF. After 4hrs, wait for 15 mins, if the currency on the 15 mins TF flag out same direction as in the 4hr TF, trade with 10 pips TP with no SL. Check it every 15 mins until u have the same direction with the 4 hrs and trade it. Once all the currency on the 4hr has been traded once, stop trading and wait for another 4hr.

So, every 4 hr u will get 10pips * the number of currency shown. How good is that ? I am using ibfx. If this method works now (during range), it will work even better in trending.
  • #9
  • Oct 16, 2008 6:42pm Oct 16, 2008 6:42pm
Quoting fugly
Can anyone suggest a suitable SL and TP for this system? I was thinking about a 50 pip stop but that seems rather tight.
I have added a module to my trade manager that allows me to treat the whole basket as if it were a single trade - sl, tp, trailing stop etc. I am just not sure yet that the ts routine is accurate; I will post it here when I am.


  • #10
  • Oct 16, 2008 6:54pm Oct 16, 2008 6:54pm
Quoting j84_2
I have been using 4hr TF to show to main trend and using 15mins TF to do entry. Tp 10 pips with no stop loss.

I only enter once for each currency shown on the 4hr TF. After 4hrs, wait for 15 mins, if the currency on the 15 mins TF flag out same direction as in the 4hr TF, trade with 10 pips TP with no SL. Check it every 15 mins until u have the same direction with the 4 hrs and trade it. Once all the currency on the 4hr has been traded once, stop trading and wait for another 4hr.

So, every 4 hr u will get 10pips * the number of currency shown. How good is that ? I am using ibfx. If this method works now (during range), it will work even better in trending.
Is that imaginative or what? I shall try this myself.

  • #11
  • Oct 16, 2008 7:00pm Oct 16, 2008 7:00pm
j84, what trade level are you using?

Quoting j84_2
I have been using 4hr TF to show to main trend and using 15mins TF to do entry. Tp 10 pips with no stop loss.

I only enter once for each currency shown on the 4hr TF. After 4hrs, wait for 15 mins, if the currency on the 15 mins TF flag out same direction as in the 4hr TF, trade with 10 pips TP with no SL. Check it every 15 mins until u have the same direction with the 4 hrs and trade it. Once all the currency on the 4hr has been traded once, stop trading and wait for another 4hr.

So, every 4 hr u will get 10pips * the number of currency shown. How good is that ? I am using ibfx. If this method works now (during range), it will work even better in trending.
  • #12
  • Oct 16, 2008 7:06pm Oct 16, 2008 7:06pm
real quick here is what I traded off of today. be gone for a day or so after this.

note. the lines on the CCFp indicator on the 30 min are pretty accurate. If price is up they are right with it.
The daily chart is a bit of a mess at the moment.
Close inspection shows imo this can be traded successfully. When any trending is going on it should be fairly clear what to do.
Its early and still work to be done here but looks promising.

I find the reading of the lines in the bottom indie (CCFp.) to be of significance. Don't over look them


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  • #13
  • Edited 7:20pm Oct 16, 2008 7:07pm | Edited 7:20pm
Set to level 1. I am doing testing and it has shown interesting result. Will continue to see what happens.

Quoting tommyd
real quick here is what I traded off of today. be gone for a day or so after this.

note. the lines on the CCFp indicator on the 30 min are pretty accurate. If price is up they are right with it.
The daily chart is a bit of a mess at the moment.
Close inspection shows imo this can be traded successfully. When any trending is going on it should be fairly clear what to do.
Its early and still work to be done here but looks promising.

I find the reading of the lines in the bottom indie (CCFp.) to be of significance. Don't over look them

I think going forward, trading using multiple time frame (Higher TF for trend and lower TF for entry) is the way to go ?

Which is the best higher TF to use for tracking trend and which is the best lower TF to do entry ? I am trying out 240 mins and 15 mins. For those using 15 mins to do entry, please wait for about 2 mins for the indicator to settle down. If u have notice, 15 mins indicator make changes sometimes but only within 2 mins
  • #14
  • Oct 16, 2008 7:26pm Oct 16, 2008 7:26pm
Thanks, J84. But what are you doing with those that do not hit the 10 pip tp? You have no sl, so when are you dumping them?
  • #15
  • Oct 16, 2008 7:27pm Oct 16, 2008 7:27pm
1.00 pm gmt: I took out the basket of trades suggested by FerruFx's indi, 4H level 2.

1.25 pm, hit the basket ts and made +90. Dd hardly existed after the first few minutes.

Nice.

  • #16
  • Oct 16, 2008 7:34pm Oct 16, 2008 7:34pm
Quoting BenQ
Thanks, J84. But what are you doing with those that do not hit the 10 pip tp? You have no sl, so when are you dumping them?
I am not sure at the moment because so far from my testing, all has been hit, sometimes within mins sometimes more than an hour. They will get hit anyway from what i see. I notice that most of them will get hit within an hour and some are been negative but if u consistently trade that way, ur total profit on ur account will be positive although u are still holding some negative position.

If ur account has positive number and u don't like the looks of the negative position been hold for hours, can u just close it. U end up having postive account at the end of the day.
  • #17
  • Oct 16, 2008 8:01pm Oct 16, 2008 8:01pm
Thanks for opening a new thread. I'm sorry ES closed the old one too.

I've just started playing with reversing the trade calls. It seems to work but it would be great to understand why it does. This system obviouly has merits and is nice and simple. So understanding when to take the original calls and when to reverse them would make it almost perfect.

Sandy
  • #18
  • Oct 16, 2008 8:14pm Oct 16, 2008 8:14pm
Quoting nubchai
Thanks for opening a new thread. I'm sorry ES closed the old one too.

I've just started playing with reversing the trade calls. It seems to work but it would be great to understand why it does. This system obviouly has merits and is nice and simple. So understanding when to take the original calls and when to reverse them would make it almost perfect.

Sandy
It's good to see everybody back.

1Trader2
  • #19
  • Oct 16, 2008 8:17pm Oct 16, 2008 8:17pm
Quoting j84_2
please wait for about 2 mins for the indicator to settle down. If u have notice, 15 mins indicator make changes sometimes but only within 2 mins
Yes generally it takes few seconds but max very few minutes to update all pairs involved in the calculation. When all pairs have received their own first fresh tick for the new bar, the show will start!

FerruFx
MT4/MT5 EAs/Indicators/Alerts coder
  • #20
  • Oct 16, 2008 8:23pm Oct 16, 2008 8:23pm
Quoting 1trader2
It's good to see everybody back.

1Trader2
Thanks 1Trader2 to reopening this thread. I am really disappointed by the closing of the original thread. This system is great (thanks ES) and as all systems, it needs some finetunings. It isn't a reason to close the thread.

FerruFx
MT4/MT5 EAs/Indicators/Alerts coder
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