Hello guys.
I have been enjoying FF for a few years now and its time to give something back. For some months I have been trading a system I call trendrider. The system does not give you 100 signals a month but should give you a fair chance on catching the largest moves in the market. Around 70 percent of the trades make money –some big, some small – 10 trades break even – And around 20 percent of the trades will stop you out ( too keep the guys you normally take money from alive). My favourite pair is USDCAD but the system should work out fine in all major pairs.
I have been trading forex on and off for about 5 years and the last year of trading has dragged me out of the muddy river of loosingness. I still have a long way to go to get where I want to be, but every single day gives me more experience and I believe that experience makes you a better trader. I hope this post can inspire some people to be better traders. I will try to answer any question as good as i can. This is my first Thread here so please bear with me in the biggining.
So, here we go.
The system is multitimeframe.
I start with the daily charts. I measure if a pair is in a daily trend very easily. Plot 1 standard deviation Bollinger Bands and 2 standard Bollinger bands on a charts. It the should look like the first thumbnail attached
As you can see the euro pound has been in a massive uptrend since oktober. When price closes at or near the channel define it as a trend. In this case an uptrend. Offcourse if the candle is bearish and closing outside the channel I no longer consider it as an uptrend. But if you take the first of December as an example you can see that it is plausible to give it an uptrend definition.
On to the next part.
I use the 4 hour chart to show me the current momentum.
I use triggerlines but you can use a regular 5/8 cross if you want to. The point is to see the smaller moving average above the larger in the direction of the trend. It tells me that momentum is with the daily trend on the 4 hour as well.
Entry
To place the trades we use 1 hour chart. We want the price to retrace back to the lower Bollinger band with 2 standard deviations. Then we might get our entry order. What I want to see at the Bollinger band is buying pressure. How do we see buying? Well from price action. Pinbars, outside bars, 2 bar patterns, big bars etc. It`s pretty basic stuff if you put in some effort to learn it. Read the james16 thread and become an expert, or buy Pring on Price patterns for an introduction. You can also visit www.james16group.us for some instant insight.
Well back to the example.
The price reaches the bb with some dramatic pa after making a new high. The price shoots up and make a strong close. Some calls the pattern a proxy pin others call it a 2 bar low. Its clearly someone buying the pair, that is the point. I will enter long when the price breaks the high of the 2 bar pattern with at least 2 tics. In this case my long was 0.8494, I put the stop under the lows of the bar formation. Risking roughly 60 tics on the trade.
Exits - Exits – Exits.
We want to stay in the trade long enough to let it prove to us that it wants to trend. So we want the pair to make a new high, then retrace and then go up and make another high. When that has happened you move your stop 10 tics under the last low. Sometimes its ok to set stop in be after a strong really. No one wants the stop to be taken out after being up 150 tics on a trade. That’s ok. That’s the name of the game.
You continue the trailing method until the stop is taken out sometimes it happens quite fast but once in a while you find yourself sitting on a train for weeks. Every trade has its own life. Sometimes its ok to take some of the table when the pair goes totally bananas, and sometimes you want to cash in the total at a strong S/R level. I suggest you let the trend decide.
Im sure im missing out some info. But I hope you guys will look at this with open eyes and hopefully we can take this strategy forward together. It makes money, but it takes patience and discipline –as with any good strategy.
I wish everybody a fantastic holiday
T
I have been enjoying FF for a few years now and its time to give something back. For some months I have been trading a system I call trendrider. The system does not give you 100 signals a month but should give you a fair chance on catching the largest moves in the market. Around 70 percent of the trades make money –some big, some small – 10 trades break even – And around 20 percent of the trades will stop you out ( too keep the guys you normally take money from alive). My favourite pair is USDCAD but the system should work out fine in all major pairs.
I have been trading forex on and off for about 5 years and the last year of trading has dragged me out of the muddy river of loosingness. I still have a long way to go to get where I want to be, but every single day gives me more experience and I believe that experience makes you a better trader. I hope this post can inspire some people to be better traders. I will try to answer any question as good as i can. This is my first Thread here so please bear with me in the biggining.
So, here we go.
The system is multitimeframe.
I start with the daily charts. I measure if a pair is in a daily trend very easily. Plot 1 standard deviation Bollinger Bands and 2 standard Bollinger bands on a charts. It the should look like the first thumbnail attached
As you can see the euro pound has been in a massive uptrend since oktober. When price closes at or near the channel define it as a trend. In this case an uptrend. Offcourse if the candle is bearish and closing outside the channel I no longer consider it as an uptrend. But if you take the first of December as an example you can see that it is plausible to give it an uptrend definition.
On to the next part.
I use the 4 hour chart to show me the current momentum.
I use triggerlines but you can use a regular 5/8 cross if you want to. The point is to see the smaller moving average above the larger in the direction of the trend. It tells me that momentum is with the daily trend on the 4 hour as well.
Entry
To place the trades we use 1 hour chart. We want the price to retrace back to the lower Bollinger band with 2 standard deviations. Then we might get our entry order. What I want to see at the Bollinger band is buying pressure. How do we see buying? Well from price action. Pinbars, outside bars, 2 bar patterns, big bars etc. It`s pretty basic stuff if you put in some effort to learn it. Read the james16 thread and become an expert, or buy Pring on Price patterns for an introduction. You can also visit www.james16group.us for some instant insight.
Well back to the example.
The price reaches the bb with some dramatic pa after making a new high. The price shoots up and make a strong close. Some calls the pattern a proxy pin others call it a 2 bar low. Its clearly someone buying the pair, that is the point. I will enter long when the price breaks the high of the 2 bar pattern with at least 2 tics. In this case my long was 0.8494, I put the stop under the lows of the bar formation. Risking roughly 60 tics on the trade.
Exits - Exits – Exits.
We want to stay in the trade long enough to let it prove to us that it wants to trend. So we want the pair to make a new high, then retrace and then go up and make another high. When that has happened you move your stop 10 tics under the last low. Sometimes its ok to set stop in be after a strong really. No one wants the stop to be taken out after being up 150 tics on a trade. That’s ok. That’s the name of the game.
You continue the trailing method until the stop is taken out sometimes it happens quite fast but once in a while you find yourself sitting on a train for weeks. Every trade has its own life. Sometimes its ok to take some of the table when the pair goes totally bananas, and sometimes you want to cash in the total at a strong S/R level. I suggest you let the trend decide.
Im sure im missing out some info. But I hope you guys will look at this with open eyes and hopefully we can take this strategy forward together. It makes money, but it takes patience and discipline –as with any good strategy.
I wish everybody a fantastic holiday
T
Attached Image(s) (click to enlarge)
