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Trend Follower 5 Minute System

  • #3,001
  • Apr 23, 2009 10:53am Apr 23, 2009 10:53am
For this one, the pivot line is not a S/R, there is a less-clear S/R above the pivot line at around 98.20-98.25. The profit this time would be better about 15pip.
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  • #3,002
  • Apr 23, 2009 10:56am Apr 23, 2009 10:56am
This one I haven't taken, since it is approaching R1. But it turn out to be profitable.
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  • #3,003
  • Edited 12:02pm Apr 23, 2009 11:51am | Edited 12:02pm
Quoting abc997
This one I haven't taken, since it is approaching R1. But it turn out to be profitable.
Not bad abc997. Interesting scalping method. So as I can see if you took on every trade 10 pips of sure profit you could have on 4 trade 40 pips. I saw that every your trade was for sure in 10 pips plus profit. For one day it is huge amount of pips. This is about 200 pips per week. Think on that way. So using everytime just 10 pips, or putting stop loss on 10 pips sure profit is nice trade and if price go on move stop loss acordingly, if not you have your 10 pips. Excelent.
Now, add 2 good nice 5min signals long on eur/jpy and aud/usd you could have almost 200 pips just today.
Go on, or test that 1 min.
P.S. what was stop loss max and what rules did you take for stop loss???
  • #3,004
  • Apr 23, 2009 11:59am Apr 23, 2009 11:59am
Quoting pilatus
Not bad abc997. Interesting scalping method. So as I can see if you took on every trade 10 pips of sure profit you could have on 4 trade 40 pips. I saw that every your trade was for sure in 10 pips plus profit. For one day it is huge amount of pips. This is about 200 pips per week. Think on that way. So using everytime just 10 pips, or putting stop loss on 10 pips sure profit is nice trade and if price go on move stop loss acordingly, if not you have your 10 pips. Excelent.
Now, add 2 good nice 5min signals long on eur/jpy and aud/usd you could...
Thanks Pilatus!
Still doing experiment with it. It is a bit theoretical, because I cannot actually react that fast yet. Can you share your eur/jpy and aud/usd trade today? cheers!
Learning never stops...
  • #3,005
  • Apr 23, 2009 12:11pm Apr 23, 2009 12:11pm
Quoting abc997
Thanks Pilatus!
Still doing experiment with it. It is a bit theoretical, because I cannot actually react that fast yet. Can you share your eur/jpy and aud/usd trade today? cheers!
Of course. Pay atention on guppy and price movement before signals. What was you stop loss on those trades on 1min chart?? If you could make 10 pips stop loss and 10 pips take profit that could be nice scalping system....
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  • #3,006
  • Apr 23, 2009 1:38pm Apr 23, 2009 1:38pm
Hello guys,

I want to say thanks to thread starter for introducing this system (eventhough its been a while ago).

Im new to this system and I just started reading the thread (im only at page 20,but ill get to this point (page 200) soon I hope!).

I hope to join in the conversation with you guys in a few days or so.

Greets~

Jerome
  • #3,007
  • Apr 23, 2009 1:51pm Apr 23, 2009 1:51pm
I love those charts! Even if this system didn't work, still would stare at those lines all day long
  • #3,008
  • Apr 23, 2009 6:22pm Apr 23, 2009 6:22pm
Quoting pilatus
Hi buddy. Very simple, just click on minus or plus to zoom out or in. Look at picture. Now tell us that we can know, why did you make mistakes, so that everyone here can learn from same mistakes, thanks.
Hi Pilatus,

My mistake was just looking straight at a trade and deciding whether to get in or not based on only the system.

I did not do my analysis i.e. direction of major trend, where there were important S/R levels where price had maybe bounced and failed to break it and impotant candle stick and chart patterns that give us a great idea of what a particular currency may be about to do.

I believe incorparating them into my trading will help filter out more bad trades.

I've just got to try to find time to trade regular. What is Trading like after London Closes at 5 PM (GMT). I would assume volume falls and that won't help trending but are there still trends forming after 5?

Cheers
  • #3,009
  • Apr 23, 2009 11:34pm Apr 23, 2009 11:34pm
Quoting pilatus
Of course. Pay atention on guppy and price movement before signals. What was you stop loss on those trades on 1min chart?? If you could make 10 pips stop loss and 10 pips take profit that could be nice scalping system....
Thanks Pilatus for sharing! Great to see that you have another two great trades. Congradulation!

I can see both of your trades have some blueprint characteristics of your example trades, but they are not as perfect as the example trades you gave, I think. The consolidation prior to TrendFollower signals are only about 30-40 bar and the consolidation range is 30 & 50 pips. There are also semi-strong S/R (can be seen by looking at the price action around them on the HTF) backing the TrendFollower signals which are both rounded number values (as figures). I am not yet experienced enough to comment how useful this kind of S/R is. Did you use them as your S/R, or you use something else?

For M1, I have to say I have not been making consistent profit points out of it yet. My current intention is not to scalp, but to train up myself to use TrendFollower. I think both M1 and M5 have the same principle, but M1 gives me much more real-time practising opportunities. The stop-loss and profit-take is simliar to the orignal TrendFollower, but I divides the orignal values by square root of 5. For stoploss,
1. 2-3 pips (5/sqrt5) of the recent LOW/HIGH.
2. 9-11 pips (20-25/sqrt5) as the alternative stop loss (yes it is about 10 pips)
For profit-taking, I use Slope Direction line (and trailing).

A question, for both of your AUDUSD and EURJPY trades, I think they were reasonably safe entries, but did you expect both of them would touch the R2? I wonder how would you expect both of them to break the prior 24-hr high? I may percieve the prior 24-hr high as a clear resistance and may not trade against it.
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  • #3,010
  • Apr 24, 2009 12:12am Apr 24, 2009 12:12am
I want to share more rounded number S/R figures. Although the price is within a price-channel in the HTF, the rounded number S/R, (which has been formed in the HTF), seems to be quite useful. Any comment? (Be warned that these are M1 figures in Asian Session)
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  • #3,011
  • Apr 24, 2009 1:57am Apr 24, 2009 1:57am
If you look at the figure below, it seems not so attactive to take the signal, since the rainbow looks expanded, and it is heading towards a resistance line. Also, it is an Asian session.
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  • #3,012
  • Apr 24, 2009 1:58am Apr 24, 2009 1:58am
See what happen next...
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  • #3,013
  • Apr 24, 2009 2:01am Apr 24, 2009 2:01am
This seems surprising. But if we look at the HTF, it is much less surprising or even a bit obvious.
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  • #3,014
  • Apr 24, 2009 2:04am Apr 24, 2009 2:04am
On the H1 timeframe, we can see the price are exploring new low (days lows has been continuously breaking) and get a bit consolidation at the current R1. The Trendfollower signal is a good one to tell trend continuation after consolidation.
Learning never stops...
  • #3,015
  • Apr 24, 2009 2:16am Apr 24, 2009 2:16am
This one happen 1-hour later is similar (M1 Asian). Although rainbow is not contracted and price moved outside S3, trend on the HTF is strong and keep breaking new low - excellence for trend following.
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  • #3,016
  • Apr 24, 2009 3:10am Apr 24, 2009 3:10am
Didn't expect this one is so profitable... where is the S/R, is the 0.8960 the one? Or (H+L)/2 on HTF? Any comment?
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  • #3,017
  • Apr 24, 2009 3:18am Apr 24, 2009 3:18am
Hi

Thanks for charts

In an earlier post you said ""outside-channel" trend"

Would you mind explaining what you mean by this?

Thanks

Rob
  • #3,018
  • Apr 24, 2009 5:53am Apr 24, 2009 5:53am
Quoting rob24hrs
Hi

Thanks for charts

In an earlier post you said ""outside-channel" trend"

Would you mind explaining what you mean by this?

Thanks

Rob
Assume that you know what is price-channel, by outside-channel trend, I mean price movement which is trendy, and current price position cannot be framed within a price-channel of the recent days. In case you are not sure what is price channel, see http://www.investopedia.com/terms/p/price-channel.asp

cheers
Learning never stops...
  • #3,019
  • Apr 24, 2009 5:54am Apr 24, 2009 5:54am
Above R2;40pips before R3&W-R1&D-R2;
After a big upwards movement and rebounce;
MACD OK;
LAG OK;
Red GMMA is ok;
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  • #3,020
  • Apr 24, 2009 6:13am Apr 24, 2009 6:13am
Quoting abc997
Didn't expect this one is so profitable... where is the S/R, is the 0.8960 the one? Or (H+L)/2 on HTF? Any comment?
Not valid signal beacuse of the time, but very nice example of what we should look when is time by the rule.

So if it is end of week and trading is slowing down and I see that people are everyday better and better I want to share something with others here. So litttle education again.
When I started to follow this system I was amazed how this system can produce signal which gives us 300 pips and sometimes just 10 or 20. According to that I started to do a little research why that happen. The base for that research was support and resistance levels. That is why I all the time repeat here why is some level good and try to find out what could price do after rebound from some level etc. So I started to study suport and resistance levels. This study adduce me to some completely new area of looking on S/R levels. After I red some materials for S/R I found out that nice and very accurate way to find significant S/R is by volume of trading. "HMMM
how can I find volume in forex market that is impossible??" was my thinking...
After some times of trying to answer on that question and few very nice threads on this forum I found some solutions very important which most people do not know. That is that volume in forex trading is impossible to find, but is very possible to find out volume from futures instrument like EURO; GBP; YEN.
How that volume from futures can help us to trade fx spot.??
Very simple, price futures instrument which for this purpose I will choose EURO is moving same as price movement from fx spot which we trade. But we can have volume from euro futures and with that volume find out good S/R levels. Now someone would ask, why we need that volume level when we have our pivot points? That is true but not one time happen that price rebound from some level or just stop in the middle of the nowhere. No pivot points near......why??
Because price reached some level with good volume of trading from few days before or week.
Ok now some examples, but before that I Will mention few things to better understand what I am talking about. Very strong and significant S/R levels are levels on where was max volume of trading from past, like max volume of last day or week or even contract period of certain futures instrument. According to that, rule is, that if price is above max volume from yestrday we are in buy zone and if it is above that level we are in sell zone. Now I will show you some exmples of eur/usd and gbp/usd just to show you how those levels are respected. I used volumes from euro and gbp futures which rapresent in fx spot eur/usd and gbp/usd. Those levels(yellow) are max volume of day before. Will continue on next post.
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