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Trend Follower 5 Minute System

  • #2,221
  • Oct 16, 2008 2:13pm Oct 16, 2008 2:13pm
Hi to all. Here is example of trade which I took and why I did it. First signal is EUR/USD short, guppy contracted. I took this signal as valid and good one because on second picture it is clear that price formed "head and shoulder pattern" which is known as trend reversal. So on this case indicates that price wants to go down.
Attached Image(s) (click to enlarge)
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  • #2,222
  • Oct 16, 2008 2:19pm Oct 16, 2008 2:19pm
First picture is GBP/USD short same. WHy? Valid signal, beggining of new move, same directon like EUR/USD which is correct correlation and most important thing, just before signal, we had retrace of support line of "duble top" pattern. It is known that "duble top" is trend reversal pattern and mentioned pattern is confirmed when price retrace from it support line.(picture 2). That is another confirmation how this system is powerfull.

So this is how I find sense of good signal. I do not consider to take a signal just because it occur. On this last 2 trades which I post, I took a little bit less than 300 pips.
For me it is enough for one week.
Happy trading.
Attached Image(s) (click to enlarge)
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  • #2,223
  • Edited 5:47pm Oct 16, 2008 2:26pm | Edited 5:47pm
Pilatus, thanks again for posting the EA for this system.
It is indeed a sweet system if I abide by the rules, it comes up with a winner every time so far. Still demoing it till I have the rules down second nature as I plan to open my first real account in the next couple of weeks.

That said, I have demoed several accounts over the last 3 months or so basically with nothing more than Fibos and a single moving average on 15 min time frames EUR/JPY CHF/JPY GBP/JPY USD/JPY and a great deal of watching the trend all day waiting for the reversals, fixed SL and 15 point trailing stops. The only loss I occured was teh $700 one the other day but even that came back to a break even after I removed the SL and let it run. Not a good idea to get so emotional about a trade, I know but I just wanted to keep my record clean. Ha......I know, I know,,,,,I will not be doing this on a live account.
The accounts have all gone from around 300,000 to over 1,000,000 yen.

Are you still trading successfully with this system Pilatus and what do you think about it as a main stem for using on 5 or 15 min charts?


And indeed Many thanks to Wicker for providing it in the first place.
Also, it is rather heartwarming to see someone who has probably made a decent living out of something like this, give back to the community in appreciation.
Starting to see instead of just looking.
  • #2,224
  • Oct 17, 2008 12:03am Oct 17, 2008 12:03am
Hi Everyone, i want to ask some questions about the system.

1)The original slope direction period is 80,this gives very bad signals for exit , but i tried period 20 in 5 minutes charts and i think it is better.What do u think about the period of slope direction.

2)Which script do u use for trailing stops?Can u give a link for it?

3)For example EMA give a signal and everything met at the signal bar.We open a position but after 3-4 candles EMA give a new signal to the opposite side. So do we have to close the position,or still wait?
  • #2,225
  • Oct 17, 2008 1:21am Oct 17, 2008 1:21am
Quoting pilatus
Hi to all. Here is example of trade which I took and why I did it. First signal is EUR/USD short, guppy contracted. I took this signal as valid and good one because on second picture it is clear that price formed \"head and shoulder pattern\" which is known as trend reversal. So on this case indicates that price wants to go down.

Thanks pilatus for sharing how to pick the good trades
it really very interesting
thanks again
  • #2,226
  • Oct 17, 2008 3:40am Oct 17, 2008 3:40am
Thanks for shareing I could really use the help and encouragement .Really cool thanks !Sorry about the spelling
  • #2,227
  • Oct 17, 2008 5:09am Oct 17, 2008 5:09am
Hmmm, I was just watching the CHF/JPY yet before my very eyes even though the Guppy was flat, the Red band was above the Green band, the Lagurerre was flat ( it is not flat on this chart as I messed up while prtscn but it was) and the trade was reported as flat, the CHF/JPY went up 50 pips.

Is something wrong with this setup, should I have jumped onboard early even though the RED band were still above the GREEN?

First time I have seen this on this system.
http://img253.imageshack.us/img253/5818/flathx5.jpg
Starting to see instead of just looking.
  • #2,228
  • Oct 17, 2008 3:08pm Oct 17, 2008 3:08pm
Quoting Rastaman
Pilatus, thanks again for posting the EA for this system.
It is indeed a sweet system if I abide by the rules, it comes up with a winner every time so far. Still demoing it till I have the rules down second nature as I plan to open my first real account in the next couple of weeks.

That said, I have demoed several accounts over the last 3 months or so basically with nothing more than Fibos and a single moving average on 15 min time frames EUR/JPY CHF/JPY GBP/JPY USD/JPY and a great deal of watching the trend all day waiting for the reversals, fixed SL and 15 point trailing stops. The only loss I occured was teh $700 one the other day but even that came back to a break even after I removed the SL and let it run. Not a good idea to get so emotional about a trade, I know but I just wanted to keep my record clean. Ha......I know, I know,,,,,I will not be doing this on a live account.
The accounts have all gone from around 300,000 to over 1,000,000 yen.

Are you still trading successfully with this system Pilatus and what do you think about it as a main stem for using on 5 or 15 min charts?


And indeed Many thanks to Wicker for providing it in the first place.
Also, it is rather heartwarming to see someone who has probably made a decent living out of something like this, give back to the community in appreciation.
well, I am trading sussessfully this system but without analyzing higher time frame I would certainly not. Not sure what you want to ask about 15 min but if you want to trade this system on hihger time frame than 5 min you must test it before.I think that could work on any time frame. In that case I will recomend you 30 or 60 min. IF I did not answer what you wanted to know be more specific.
  • #2,229
  • Oct 17, 2008 3:13pm Oct 17, 2008 3:13pm
Quoting nicotine
Hi Everyone, i want to ask some questions about the system.

1)The original slope direction period is 80,this gives very bad signals for exit , but i tried period 20 in 5 minutes charts and i think it is better.What do u think about the period of slope direction.

2)Which script do u use for trailing stops?Can u give a link for it?

3)For example EMA give a signal and everything met at the sgnal bar.We open a position but after 3-4 candles EMA give a inew signal to the opposite side. So do we have to close the position,or still wait?
.
1. this is not scalping system. Use it following the original rules.
2. Do not panic and move stop loss immediately. Wait and give a chance to trade to develop into a trend.
3. You dont go out in that case. All you have to do is to be patient and ride the trend/move.
  • #2,230
  • Oct 17, 2008 4:24pm Oct 17, 2008 4:24pm
Quoting pilatus
well, I am trading sussessfully this system but without analyzing higher time frame I would certainly not. Not sure what you want to ask about 15 min but if you want to trade this system on hihger time frame than 5 min you must test it before.I think that could work on any time frame. In that case I will recomend you 30 or 60 min. IF I did not answer what you wanted to know be more specific.

Sorry, perhaps I was not specific enough.
I was wondering why on the 5min chart above, the trend broke out even though the conditions for a breakout were not met. The RED bars were continually over the green yet price was going up and up. in fact, it went up 50 pips on that chart despite the facts above.

Maybe this was just a one off or am I missing something with this system.

Just looking at your chart, it seems the signals are not in agreement on that chart also, yet you traded it.
I am even more confused with the rules of entry for this system now as wicker states in the Entry criteria the following.

Trend Follower - The Rules
All the criteria must be met at the bar with signal or one after! If everything is not met at the signal bar or one after, leave it alone! It might eventually go the right way, but in the long term it will give more false trades. Only take trades where at the signal bar or one after all these rules apply! We enter the next bar after the signal.
Long\Buy
ENTRY: First We wait for a long signal alert
GUPPY MMA: The green lines must be above the red lines! Green, Red and Yellow lines must agree and head north. All the lines must be going in the same direction!
LAGUERRE: Laguerre line must cross the 0.15 from below and head up
MACD: This is important! When you get the signal MACD must be above 0
STOP LOSS: 5 points (+spread!) below recent LOW
ALTERNATE STOP LOSS: 20 points on default pairs and 25 point on more volatile pairs such as the GBP pairs and crosses. Choose whatever SL method fits you best
EXIT (combined): When you open a position you can then choose to close half of the position on the first pivot point and let the other half run till the slope direction line goes red
ALTERNATE EXIT: You can choose your own method and close positions at pivot points or when slope direction line goes red after a move, or when price (a new candle) opens on the other side of the volatility channel
Starting to see instead of just looking.
  • #2,231
  • Oct 17, 2008 9:24pm Oct 17, 2008 9:24pm
unbelievable system


are there any EA ( full automated) for this system?
  • #2,232
  • Oct 18, 2008 12:02am Oct 18, 2008 12:02am
Quoting at the best
unbelievable system


are there any EA ( full automated) for this system?

I think there may be a fully automated EA somewhere but the general consensus seems to be that this system needs to be traded manually.

Seems like a good system if I can only get the wrinkles above worked out.
Starting to see instead of just looking.
  • #2,233
  • Edited 1:23am Oct 18, 2008 12:14am | Edited 1:23am
I dont understand you sorry, what you mean by that "the trend broke out even though the conditions for breakout were not met"?? IF fx trading would be so easy that we can easily predict what is going to happen than we all would be rich people. I dont know why trend broke and I am pretty sure that no man on the world does not know why that happen. In fact we all know in that case that buyers win sellers and price went up. I have valid signal on my charts. Maybe you ask yourself why laguerre did not cross 0.75. at EUR/USD? But it did when signal occured. I took the signal and what is going to happen with laguerre after that I can not predict.
  • #2,234
  • Oct 18, 2008 2:25am Oct 18, 2008 2:25am
Ah, I see it now..
Sorry, I am going chart blind.

The trade signals were long, the upswing was very brief then the blue bars were compressed and it broke down.

Must get away from this computer and charts for a while before I restart demoing this system.

Will make sure I look at all time frames to get a better perspective of the larger picture.

Thanks again for all the input.
Starting to see instead of just looking.
  • #2,235
  • Oct 18, 2008 7:24am Oct 18, 2008 7:24am
Quoting pilatus
.
1. this is not scalping system. Use it following the original rules.
2. Do not panic and move stop loss immediately. Wait and give a chance to trade to develop into a trend.
3. You dont go out in that case. All you have to do is to be patient and ride the trend/move.

Thanks for your reply.Good Luck
  • #2,236
  • Oct 18, 2008 2:26pm Oct 18, 2008 2:26pm
I have a question. What ist the currently version at the moment? Ant what is the best?
  • #2,237
  • Oct 19, 2008 5:33am Oct 19, 2008 5:33am
Quoting grillz
pretty much no one is going to look at a word document in a web based forum. please study how to attach simple screen shot images to posts.
I agree that images are easier for all, but if you are really interested, sometimes you can find gems when you least expect it, I had a look just in case.......
Canadian by birth Australian by choice
  • #2,238
  • Oct 19, 2008 7:16am Oct 19, 2008 7:16am
Quoting pilatus
well, I am trading sussessfully this system but without analyzing higher time frame I would certainly not. Not sure what you want to ask about 15 min but if you want to trade this system on hihger time frame than 5 min you must test it before.I think that could work on any time frame. In that case I will recomend you 30 or 60 min. IF I did not answer what you wanted to know be more specific.
Hi Pilatus,

I'm new to this thread I read all the rules &and it seem to be very simple & easy to follow but patient & discipline are needed.
please explain more detail how do you analyze higher time frame if you are trading on 5mins TF?
so I can work out the way to trade this system properly.

Thank you,
Pete.
  • #2,239
  • Oct 19, 2008 7:42am Oct 19, 2008 7:42am
Hello.

First, I would like to thank Wicker for the simply wonderful system.

After spending time reading everything posted here I thought I would contribute back to the community. While it's not complete (should be done in a few days) I think it's a great help with the Wicker's system.

The problem I have with most of the current indicators for the rainbow system is that the chart screen gets too cluttered and everything gets musshed together and makes the charts harder to read.

Soooo..

I took the indicator created by pmurfin (great work by the way) and did the following..

The indicator is now in a seperate indicator window so it's not clogging up the chart display and makes it easier to read.

The indicator now has the ability to display ALL the chart timeframes at once, not just the current timeframe the chart is set to. I did this as I was finding that by seeing all the data across all the timeframes I could get a better feel for what was going on.

(the multitime frame ability can be turned on and off so one can just display the current chart timeframe or all.)

I also added the ability to show when the markets are open and closed
(again, an optional item that can be turned on and off). I included this as I was always forgetting when which markets were open when.

The last item added was just a simple indicator showing the bid/ask spread for the current pair (again, optional). I did this as I have a few account with different brokers with different spreads and I was always forgetting what the spreads were as they are different for each broker I use.

The indicator is coded so that one does not need to have any of the external indicators, you can just attach this indicator to a chart and go with it, it's all selfcontained. (but having the guppy indicators makes it nice)

I've attached pics so you can get an idea where I'm heading. THIS IS ONLY AN INDICATOR AND NOT AN EA, I'M NOT GOING TO PROGRAM AN EA FOR THIS.

This does do alets as well as e-mail alerts. If you have the multitimeframe enabled it will give alerts across all the timeframes.

This is still in beta, I have a few minor bugs to work out and I'll be releasing it hopefully in the next week or so.

Again, thanks, Wicker, great system and thanks pmurfin, you code base was a big help in making this work (you were credited everywere in the code for your contribution).
Attached Image(s) (click to enlarge)
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"I don't want to take over the world, just my own little part of it."
  • #2,240
  • Oct 19, 2008 8:29am Oct 19, 2008 8:29am
Thank you ByerRA.

I ve been learning this system for a while, and any tool that help us to make it easier to decide when to enter a trade in this system is welcome.

Hope you finish it soon and succesfully.
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