FX 1M Bounce system

.....Oh, yea the template.

Thanks to Siobi, mtuppers, kino, wahnone, and everyone else on this thread and others that have contributed!

This is just a rough template, so I'm sure it will be improved, but at this early stage I believe it has awsome potential. At least for dummies like me. (FX for Dummies)

Oh and remember that supersignals repaints (rides the price like a pogo stick) so be careful and wait for confirmation that it's a legit "pre-signal"!!!
....I gotta take my own advice there, boy!!!

okay dan, thanks for the upload. now for the rules, i can't find the post where you defined them again . can u link it or post the rules again please ?

many thanks,
tex

The rules are basically as mtuppers specified, with my own quirky little twists, which are NOT necessarily any better, but:

For me;

1) look at 50 ema or equivalent to get direction picture (maybe compare with other timeframes for extra confirm.)
2) get super signal alert (careful it jumps around as if on crack) Also check mtuppers thread for alternate indicator posted toward the end of thread. I haven't compared yet.
3) next bar or two, get stochastic cross alert - or at very least dinapoli stoch bounce as per my last $160 trade (there, there was no actual stoch cross arrow on chart) - and I entered too early against the rules anyway anticipating a reversal even before confirmation which cost me pips.
4) signal line changes color (this I guess may happen before #3 above, or at same time, or after) but it would be most wise if one waited for the current signal line color bar to close, as it can change it's mind.
4A) *Maybe optional*: 5 and 8 ema's cross as per wahnone's system (link in above post)
5) If going with trend, maybe wait for next super signal alert in opposite direction followed by #2 and or also #3 above. For me I take scraps from the table and scurry away, but letting winners ride may be better strategy.

If impatient like me and going against trend (50 ema or equivalent) go for very small gains if any.

I'm certain these "rules" of mine can be improved upon, but I think an ea should be coded, because I see this as really working very well.

As I stated, for now let's concentrate on this aspect of this system rather than the super signal repaint (price overshoot when markets moving) 2 pip system I mentioned before.

Below trade should go in the textbook (Fx for Dummies). Wish I had taken it live!!!

Cheers!

Ok, I'm just the crazy idea man, so someone else will have to verify, but it seems that while I was writing and daydreaming of keeping my humble house after all, there was another nice trade - or three if not adhereing to the 50 ema too strictly:

And all this only on the 1m? Imagine the 5 or 15m!
It should work on any timeframe, just an adjustment of pip value, drawdown, take profit, and stoploss.

It seems very robust to say the least!!!

Another bad trade! Hehehe.

(Didn't follow the rules.) I hate drawdown!!!!!!!!!!!!!!!!!!!!!!!!!!!

DID I MENTION I HATE DRAWDOWN??!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

...And cool sound effects too!!!!

I love that "tweet ding" or whatever that supersignals alert is!!




.........Alright, ............I'm ok now. Just some stress relief!

I know, I know, it repaints like mad, and makes the past look like pure heaven!...and the present position you just took, like pure hell!

But don't let that scare you away! Seriously!

Just wait for confirmation and look at trend, or lack therof and trade accordingly. ...Now if only I could do that consistently!

Edit: Like right now when market is consolidating (dying) especially as compared with before when you could do no wrong, don't trade this. You'll get a sideways signal line color change, and then it will change color again right away. Next thing you know, you are hedged because you entered a dead or dying market. ...Like I just did. And do not trade late Friday. ...Oh,... wait it's late Friday. LOL

dan, i will try out the system on monday when markets start again. will post results with screens then. i wish u a wonderful weekend over there in florida

I'll improve V104...V104 friday resulted +150 pip...!!!!!! tremendous result!!!

Thanks tex!

I think you will enjoy it once you get the feel for it.

And thanks Siobi for reworking v104. In my humble opinion, we need to get the stoploss as small as possible and get our entries as good as possible. Appropriate trailing stops will take care of the rest I believe.

As far as entries go, at times when there are alot of market players, I believe the system mtuppers came up with will get us into trades at the optimum time, regardless of timeframe, and regardless of exact rules whether his, my current ones on post #624, or any improvement thereof . If an undisciplined and stubborn trader like myself can have a "eureka" moment with this system, then I truly believe anyone here in this thread WILL have success with it, whether it's alongside or integrated in one of Siobi's ea's, which in and of themselves are already pretty impressive. ....But we must all aim for as close to perfection as possible, as I am NOT a gambler!

If traded at the right time, I currently believe that system will get us in at the peaks and valleys of the cycles and the rest is up to a trailing stop as per Siobi's ea's.

Equally as important I believe is drastically lowering the stoploss, since once hit, it will take back too much profit. The obvious problem has been once you lower the hard stoploss, it gets hit more often.
That's where entry optimization comes in, allowing for a more seldom hit stoploss.
It's always a balancing act, but with a very robust and accurate entry method, everything else should theoretically fall into place afterwards.

PS: With mtuppers entry, an alternate exit from the stated trailing stop may be an opposite super signal and signal line color change/5 and 8 EMA cross from wahnone's system - (or equivalent trend is over/new trend coming signal)

Oh, and one more thing, for those that downloaded my last template (FINAL3), although the template is named final1m, please take Siobi's general advice and use it on the 5m or up timeframes. It has worked well for me on the 1m also, but go for small pips on that timeframe. Also note that if trading the 1m I also have the 5m and 15m to it's right for a more general feel of where price is going.
That said, it should work well on the 15m. Testing by as many of us as possible will get us profitable in fairly short order, I believe.

Cheers!

Below is a chart I posted earlier, but is what we are always looking for.

Notice trade was taken on the 1m, but that notwithstanding, it is the foundation of what we look for on any timeframe.

Look at every indicator, but especially those in this sequence:

1)we get supersignals and stoch cross indicators at bottom and on top of each other (they don't have to come at the same time, but you should get supersignals, and then stoch cross arrow within one or two bars thereafter)
2)signal line is still down (red) so we wait for it to change to blue, but we note that 50 EMA (orange) is generally up
3)we have time, so we optionally check to see where stoch rsi and dinapoli stoch is at in bottom indi. window (they are down and starting to head up)
4)we get signal line color change to blue, but we may want to wait for bar to close to make sure signal line doesn't change it's mind
5)signal line color closed blue, so we either enter long now, or optionally wait for 5 and 8 ema cross as a further confirmation.

We get our 6+pips in minutes and with almost no drawdown whatsoever. (Notice I didn't have an optimal trade, but who's complaining under these conditions)

With my erratic trading personality, I need an automated system that looks for just these conditions on different timeframes (with adjusted take profit and stoploss levels of course) and different currencies, as this method would work across the board in my opinion.

Also note at least one other trading opportunity that existed before this trade I took, but that one would have gone against the 50 EMA, but it wasn't sharply up so can almost be considered semi-sideways (ranging nicely)

Any and all comments, additions, and modifications are always welcomed by me.

Happy pipping!

I believe that this method can best be traded when there are many market participants (tick volume I think) - which is not actual fx market volume which I don't think can be known, but that specific broker tick volume, which should give an "idea" of what's going on.

What else is new, right? Dead markets will not give strong signals and strong reversals - or trends for that matter. Big news excluded obviously, as most of us stay out then.

At this early stage, I believe that as long there is action in the market, this method will work with strong ranges and trends - as long as we know how to read the indicators under these differing conditions.

To that end, and on that subject the following is quite interesting (post #18 of the following thread):
(Although I'm no coder, I think if possible any ea should have that rule also coded in as an additional filter, or perhaps in the case of the method I posted above as an alternate and/or addition to a timefilter, by simply staying out when tick volume data is below a certain level.) Based on my short but positive experience with this system, I always have "volume" up on my chart, and also based on actual priceaction, I would stay out of a dead market.

http://www.forexfactory.com/showthre...=154339&page=2

v104 on FXDD:
v106 on IBFX:

Beautiful priceaction for this system!

Was away from this computer and couldn't get more of those lovely pips!!!

Notice price making nice transition from bouncing off 50ema, to piercing it, to going below it. All in gradual beautiful moneymaking little hops!

Almost hypnotic!

+13pip.. can be up to 38 pip!!!

I'm up 156 pips sence I closed V106 on 3-5-09. Making more than 50 pips daily running V104 auto. Interested in your improvements to V104. Thanks

hello dan,

i am setting up your template atm. do u have parameters changed in one of the indicators ? which settings do u use for the bollinger bands for example ?

thanks,
tex

Edit : Damn mate - that supersignal indicator is amazing ! i am impressed of the accuracy of the signals. i will try it out a bit now with my own "simple" template. your template is a bit "overwhelming" actually

LOL, tex.

I'm on desktop, will post further on my laptop.

LOL.

Just make believe you are a helicopter pilot in training, looking at all those quages.

Actually, the super signals will jump up and down every time there is a new high or low, so by itself it's more than useless, it's downright dangerous. As for the bollingers, I use 1m, 5m, 15m, and sometimes 30m to get a read of where price's path of least resistance may be. A lot of work for getting more than a handful # of pips per "good" signal, but I'm no coder so it is what it is. Default is fine, so it you see price approaching upper bollinger on 1m and 5m, for example, and indicators are agreeing, you know most likely it's good for a few pips untill it either touches or exceeds bollinger on at least the lower timeframe. Screen time with this template or any other worthwile one will take your trading to the next level.
Only question will be: Is the next level enough to make you consistently profitable? (EVERYTHING in this universe is relative.) For me, with my erratic personality, the answer is unfortunately no, not consistently. I will give up my winnings with some dumb ass move that I don't kill immediately, and I don't have the patience to take every single legitimate signal on the 5m or 15m for just 5 pips or whatever every single time like an ea would do. (With a set stoploss of maybe 2 or 3 times the TP - which in my opinion would still be more than profitable.)

Now, ...super signals is only an audible presignal for me to stop watching my Ufo Hunters or ultimate fighting - or whatever and start paying attention to the chart.

Usually when you get the further confirmations stated in my pervious posts, you can usually take anywhere from 2-10 pips per "legitimate" signal/confirmation, depending on tiemframe.

...So, knowing that almost every single "legitimate and logical" signal combination can net you a certain small # of pips, makes the automation of this unconventional system quite attractive in my less than conventional mind.

....Yes, I'm out there, so do not blindly follow my methods, especially given v104's recent results, numerous backtests notwithstanding.
...Actually Siobi stated that he's going to improve v104, so his results may be with his improved version. (Even though backtests are not the end all be all, they must be given some credence.)

....Maybe he coded in an auto update to the latest and greatest version!

...Because at this rate, we won't need to trade manually!!!

We WILL need to send him a small percentage of our live winnings though! (1-10% of account size on a progressive scale )

That would be the least we can do if indeed he comes up with a gem!!!