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Info on the Borihei-Dragon Scalping System?

  • #1
  • First Post: Jun 6, 2009 6:51pm Jun 6, 2009 6:51pm
Hi,

I am looking for some information on the Borihei-Dragon scalping system that can be viewed on many videos sites. Here's an example. The system uses the following indicators:

Bollinger Bands (20, 2) and (20, 1)
Heiken Ashi
Chinkou Span (Ichimoku)

Are there any available written rules for that system. I tried to find some but failed.

Thanks

Chamane
  • #2
  • Jun 7, 2009 4:32pm Jun 7, 2009 4:32pm
Quoting chamane
Hi,

I am looking for some information on the Borihei-Dragon scalping system that can be viewed on many videos sites. Here's an example. The system uses the following indicators:

Bollinger Bands (20, 2) and (20, 1)
Heiken Ashi
Chinkou Span (Ichimoku)

Are there any available written rules for that system. I tried to find some but failed.

Thanks

Chamane
Hey, Chamane

hard to find something regarding to this method.... lots of videos in japanese..... no set of rules....

But I listened to that only video you posted (after some wine glasses, to smooooooth the sound.... just kidding)

As far as I understand it uses Bolinger Bands (in fact a set of 2, the first with a 1 deviation, and the socond with the standard 2 deviation), Heiken-Ashi candles and Chikou span, from Ichimoku... ok, all that was said before.... I guess the trade signal wold be all indicators ponting at the same direction...

For long:

- Chikou-span above price
- Heken-Ashi colored blue
- Price above the median BB line

And vice-versa for short....



That's all I could figure after seen that video... If already concluded that, please disregard my analysis...

Hope that helps...

Cheers!

HT
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  • #3
  • Jun 7, 2009 4:51pm Jun 7, 2009 4:51pm
In fact, the Entry Point would be a little after that one, cause the Chiko-span, lagging, would not have crossed the price zone in the first chart...

I erased the Chiko-span line after the real entry point, just for clarification

Cheers!
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  • #4
  • Jun 7, 2009 7:26pm Jun 7, 2009 7:26pm
Quoting HouseTrader
In fact, the Entry Point would be a little after that one, cause the Chiko-span, lagging, would not have crossed the price zone in the first chart...

I erased the Chiko-span line after the real entry point, just for clarification

Cheers!
House Trader,

I really appreciate the effort. I think you are on the right track with all the indicators showing the same direction to enter a trade. But why two BB's? And that Chikouspan is lagging quite a bit. How do you use that indicator? When to exit? There are many questions left. The author seems to watch Chikouspan as the critical trigger. But I am not familiar with the beast at all. The best would be to find the author and ask her to explain her system right here. Or to find a translator and ask him to watch the many available videos showing market analysis in Japanese and to explain to us what it's all about.

Regards.
Chamane
  • #5
  • Jun 7, 2009 7:43pm Jun 7, 2009 7:43pm
Quoting chamane
House Trader,

I really appreciate the effort. I think you are on the right track with all the indicators showing the same direction to enter a trade. But why two BB's? And that Chikouspan is lagging quite a bit. How do you use that indicator? When to exit? There are many questions left. The author seems to watch Chikouspan as the critical trigger. But I am not familiar with the beast at all. The best would be to find the author and ask her to explain her system right here. Or to find a translator and ask him to watch the many available videos showing...
Well, in fact I wouldn't trade like that , personally... 1M is too much noise and stress to my gut... As far as I know (a little....) about Ichimoku the Chikouspan is used to nail the current bias of the market. Above the price, market tending to rise, below the price, to dive. Why they call a line price shifted backwards as a bias of the next direction, I truly don't understand, but I guess that's the interpretation of the Chikou-span.

kharvell has a thread on Ichimoku here, and there are a lot of information on all the components, clouds, S/R shown by this indicator, and of course, the use of Chikou-span...

A translator would be very very helpfull.......


Cheers!
Many share my views with me. But I don't share them with them...
  • #6
  • Jun 8, 2009 4:19am Jun 8, 2009 4:19am
I've been using this borihei dragon system.
I find it to be quite a powerful scalping method.

It's actually a breakout system.

Enter when chikou span(expressed as a dragon)breaks out the range of
bollinger band. Exit when the head of the dragon turns side and goes back
to inside of the band. I don't see the reason of 2 bbs quite well either.

Anyway I attached my variation of the template.
I also use stochastics and bb flat for confirmation.
Attached Image (click to enlarge)
Click to Enlarge Name: dragon1.jpg Size: 111 KB
Attached File(s)
File Type: ex4 BBflat.ex4   3 KB | 659 downloads
File Type: mq4 StochasticColor.mq4   5 KB | 638 downloads
File Type: mq4 Magnified Market Price.mq4   1 KB | 589 downloads
File Type: tpl boriheidragon.tpl   18 KB | 632 downloads
  • #7
  • Jun 8, 2009 11:57am Jun 8, 2009 11:57am
Quoting minmarty
I've been using this borihei dragon system.
I find it to be quite a powerful scalping method.

It's actually a breakout system.

Enter when chikou span(expressed as a dragon)breaks out the range of
bollinger band. Exit when the head of the dragon turns side and goes back
to inside of the band. I don't see the reason of 2 bbs quite well either.

Anyway I attached my variation of the template.
I also use stochastics and bb flat for confirmation.
Minmarty,

Your contribution is really appreciated. What would be the rules exactly? I know the author of the video (Ayunit) is using the 1 min and 5 min timeframes (higher timeframes were mentioned also). I suppose that when the conditions are met on 1 min you have to check the same on 5 min to enter a trade? All at the close of a candle?

For stochastic (30, 10, 10) I suppose you check that K>D for a long trade and vice versa for short, but what about the BB flat? I don't know that indy very well.

Thanks

Chamane
  • #8
  • Jun 8, 2009 1:11pm Jun 8, 2009 1:11pm
Quoting chamane
Minmarty,

Your contribution is really appreciated. What would be the rules exactly? I know the author of the video (Ayunit) is using the 1 min and 5 min timeframes (higher timeframes were mentioned also). I suppose that when the conditions are met on 1 min you have to check the same on 5 min to enter a trade? All at the close of a candle?

For stochastic (30, 10, 10) I suppose you check that K>D for a long trade and vice versa for short, but what about the BB flat? I don't know that indy very well.

Thanks

Chamane
Chamane, I guess Minmarty is using Stoch much more as a overbought/oversold status than a directional bias for the trade...

Maybe BB flat indicates the low/high volatility momentum, since a scalper must count on volatility to pump the price, keeping out of consolidation times..

Just wandering...

Cheers!
Many share my views with me. But I don't share them with them...
  • #9
  • Jun 9, 2009 3:37am Jun 9, 2009 3:37am
Quoting chamane
Minmarty,

Your contribution is really appreciated. What would be the rules exactly? I know the author of the video (Ayunit) is using the 1 min and 5 min timeframes (higher timeframes were mentioned also). I suppose that when the conditions are met on 1 min you have to check the same on 5 min to enter a trade? All at the close of a candle?

For stochastic (30, 10, 10) I suppose you check that K>D for a long trade and vice versa for short, but what about the BB flat? I don't know that indy very well.

Thanks

Chamane
Hi, Chamane

The author uses higher timeframes to confirm the main trend. The position
of the dragon in higher timeframes could be important too.
When the dragon is outside the band in higher timeframes, there is a better
opportunity to enter in the lower timeframes.

Regarding the use of BB flat and stochastics, HouseTrader's explanation is
right. BB flat keeps us away from sideway market. And volatility!
When it expands wider, it would tell us there is a great entry chance is coming.
When it starts to squeeze, we get ready to be careful when to exit.
As long as it keeps squeezing, just stay away to avoid gettin whipsawed.

Happy pipping, everyone!
  • #10
  • Jun 9, 2009 6:29am Jun 9, 2009 6:29am
Quoting minmarty
Hi, Chamane

The author uses higher timeframes to confirm the main trend....
Thanks. Now I can watch the system for a while. I tried to find information on BBFlat, but there isn't much out there. Anyway, I had a way of staying out of sideway market when BB bands were outside of Kertnel_ATR_Bands (20, 1.5) (see vertical lines). I'll be focusing on Chikou Span with 5 min and 30 min TF.

Thx also to House Trader.

Chamane

http://i42.tinypic.com/ipmtkn.gif
  • #11
  • Jun 10, 2009 6:53am Jun 10, 2009 6:53am
Quoting chamane
Thanks. Now I can watch the system for a while. I tried to find information on BBFlat, but there isn't much out there. Anyway, I had a way of staying out of sideway market when BB bands were outside of Kertnel_ATR_Bands (20, 1.5) (see vertical lines). I'll be focusing on Chikou Span with 5 min and 30 min TF.

Thx also to House Trader.

Chamane

http://i42.tinypic.com/ipmtkn.gif
Beautiful set up, Chamane.
Hope you're taming your dragon all right.
  • #12
  • Jun 10, 2009 7:11am Jun 10, 2009 7:11am
Quoting chamane
Thanks. Now I can watch the system for a while. I tried to find information on BBFlat, but there isn't much out there. Anyway, I had a way of staying out of sideway market when BB bands were outside of Kertnel_ATR_Bands (20, 1.5) (see vertical lines). I'll be focusing on Chikou Span with 5 min and 30 min TF.

Thx also to House Trader.

Chamane

You're pretty welcome, chamane...

wish you the best with your "pet"....

Cheers!

HT
Many share my views with me. But I don't share them with them...
  • #13
  • Jun 11, 2009 3:46pm Jun 11, 2009 3:46pm
Hello

It looks like this is a normal trend following system. Wouldn't it be easier to just work with a moving average crossover system, getting confirmation and trading in the direction of the main trend on a larger timeframe? Any thoughts as to why this system may be superior?

Thanks.
  • #14
  • Jun 11, 2009 7:30pm Jun 11, 2009 7:30pm
Quoting dimitrius
Hello

It looks like this is a normal trend following system. Wouldn't it be easier to just work with a moving average crossover system, getting confirmation and trading in the direction of the main trend on a larger timeframe? Any thoughts as to why this system may be superior?

Thanks.
As Minmarty pointed out, it is rather a breakout system. I am following it among other sytems and it seems to be working. How well compared to others, I can't tell right now since I am just beginning to play with it. Minmarty would probably have more to say about it.
  • #15
  • Jun 12, 2009 6:01am Jun 12, 2009 6:01am
Quoting dimitrius
Hello

It looks like this is a normal trend following system. Wouldn't it be easier to just work with a moving average crossover system, getting confirmation and trading in the direction of the main trend on a larger timeframe? Any thoughts as to why this system may be superior?

Thanks.
I feel this system is great whenever I could exit at the best spot.
  • #16
  • Last Post: May 17, 2012 1:26am May 17, 2012 1:26am
Hi,

Just saw the video on this method...it doesn't go into much detail which is what I like...simple. But as far as how I'm looking at this I think this will work for me as a simple scalping method to pull 15-20 pips per trade out of the market every day.

I have paper traded it for the last week and had a success rate of 62.5% Avg Win was 20.18 pips. Avg Loser was 3.01 making a RRR of 6:1.

Admittedly this is an extremely small data sample (so far) but it seems worth the effort to explore further.

Here is how I'm trading this method:
Indicators

  1. Heiken Ashi - default
  2. Chinkou Span - default (All other lines "grayed out")
  3. Bollinger Bands - 50 SMA on close (1 St. Dv.)
  4. Bollinger Bands - 50 SMA on close (2 St. Dv.)


Long Entry:

  1. Chinkou Span is above price (trailing 26 time periods behind)
  2. Heiken Ashi Candle is bullish (white on my screen)
  3. Price has had at least two consecutive closes above the MA


Short Entry:
Opposite of above

I place the initial stop on the opposite side of the BB (2SD) on entry and trail it as follows:

If an entire HA candle closes between the 1st and 2nd standard deviations, I move the stop to the opposite 1 SD. If an entire HA candle closes outside the 2nd deviation then I move the stop up to the MA. I trail the stop here until my target price is hit.

Target price is 2x the initial stop (depending on the BB structure)...i.e. if the opposite side of the BB (2SD) is 15 pips away I place a TP at 30.

I would genuinely like to start a conversation about this simple and effective method if anyone is interested. I would appreciate POSITIVE feed back. If you're going to write and tell me all the ways this won't work save your breath, I've already explored it. I am interested in any opinions that produce a viable method of trading.

My reasons for the above settings and method:

The 50 period MA applied to the Bollinger Bands seems to take the "whippiness" out of the 5 min chart. Thus keeping you in a trade a bit longer and allowing price to do whatever its going to do either stopping you out at a small loss, stopping you out at a small profit, or limiting you out at your target.

The idea of three trend indicators coming together on a small time frame chart makes sense to me. Ichimoku is a well know trending indicator and using just the chinkou allows quick trend and trend change recognition. The Heiken Ashi allows you to see very short term trend in price action, and finally the 50 period MA applied to a BB allows you to see when price is ready to break an tight ranges that may have developed putting you in right at the break, or conversely if the range is larger you can trade between the bands.

The alignment of these three indicators produces a very powerful indication that price will move in the indicated direction (at least short term) for quick profits with out all the nail biting.

I am going to continue exploring this method and will start live trading it with micro lots this coming week.

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