5 Min Keltner System

Late in here but I hope this gets a reply, this looks a standard indicator system and with NinjaTrader I've tried programming 100s of indicator combinations before finally accepting all indicators are moving averages and none of them will work consistently.

That is unless you get your exits right. Paulus's knack seems to be cutting losses very short, so he gets the good trades and even when a strong trend knocks his Stochastic signals for six, he's out with tight losses. This is fundamental technique I really would like to master, I think I've got the stop loss rules sorted, but when I see the images here:
http://www.charthub.com/images/2008/04/17/System_1_4

I can't quite figure what the two number for each trade mean, eg. 0.3-0.3. Are you taking half profit and leaving half open somehow? Please could someone possibly let me know if how these numbers work and if there is any discretionary/mechanical multiple profit-taking,

Thanks,
Jeremy

Hi all,
Looooong time lurker on FF over the years. Just wanted to know if anyone ( especially the Author ) still use this system, or variants of it?

I think it has a lot of merit, particularly when used with confluent traditional T/A like S/R and fibs.

I have noticed that in stronger trends it wouldn't be too good - but am playing around with ADX as a filter to stop me taking signals ( i.e. ADX above 20 and rising - be cautious, especially if there is no S/R around ).

I'm also looking at something I can trade during Asian session, or possibly very late U.S. session.

Hi sir i a new member and new to trading also, Here i see many experienced persons please assist me as your student, i try many indicators and i lost more in that because of repainting, Can any one share best of your strategy with me/// thanks in advance

Hi All,

I do not trade it because it is the first news I have on it.

I have read all the thread and I agree with one post that states that this system works on ranging markets. But if there is a trend, then the trades triggered are counter-trend, which increases risk (obvious).

But considering that most of the time the market is ranging, then it is interesting to have this in mind.

As soon as I get home I'll make some tests.

Best Regards,

gonso
--------------------------------------------------------
There are three kind of people:
- the ones that can count
- and the ones that cannot count.

Yesterday I made some backtest. The results were quite good:
4 good
3 breakeven
0 bad

The only thing is that I am very scared with countertrend trades.
Any experience out there?

Best Regards

gonso

hello gonso

I'm looking at using this method and I believe I have found a way to substantially lower the risk involved in these "counter trend" trades. It goes as follows:

I am looking at eurusd 5min tf on the 14th of this month, starting at the 1720 candle. During this trend upward we see several signals to short, none of which would have reached the initial TP level specified by the rules of this system(1720, 1845, and 1955 jump out at me as entry points). Finally at the 2025 is a signal to short where the TP level is reached before the stop.

If you notice during this time PA never touches the bottom of the Keltner channel. The rule should be if you have a losing trade to ignore all signals in the same direction after that loosing trade until PA reaches the bottom(or top for long) of the Keltner channel, giving an indication that the recent trend is over.

A more strict rule could be as follows: After a losing trade, the next trade MUST be the opposite order of the losing one.

Applying these rules in the example above we would have a loser at 1720, then the next trade we would take would be at 2145(since PA touched the bottom band earlier). Applying the more strict rule would put a pass on the 2145 short but would take the 2215 long.

Another thing to possibly look at is the angle the bands make. The angle is high(either + or -) during these trends. One could just pass on all trades until the angle is small, lets say within 15 degrees from 0. Let me know what you think.
-Dan

--peej
Can you add an email alert option to this indicator. I know that it has been awhile but I believe that the method can be refined. Just trying to cut down on some screen time. I have had luck using an entry buffer of 2pips. In other words, I enter 2pips above/below the close of the entry candle.

Hello all..Hope this thread is still active .

Thanks Paulus for all your efforts .

I have been trading this basic method ( only using stoch 15/3/2 and keltner ),

for a month now and find it VERY dependable .

I use it on a Renko chart , and the signals are clear . I enter when the stoch

crosses the 20/80 . I have also discovered how to trade it in a trend .

Has any one else used a renko chart with this ...an EA attempt would be

interesting ..........Thanks

Hey Chappy, whats your renko box size?

I have been using a 3 or 5 renko box ..

Hey Chappy......I am glad to hear about your success. We all need to compare notes. Can you post an illustrated screenshot? I will work on one and do the same. Maybe there is something that we can take away from each other. I was able to get an email alert added to the original indicator which saves me some screen time. I am able to get email alerts on my blackberry via my yahoo email account. What have folks come up with in the way of tips.....

Hi please can you guys upload your templates and a screenshot..thanks in advance

I use the same indy's and template that Paulus shares in post #1 .

However I install it on a renko chart , set to 3 or 5 .

I view this method as a scalping set-up .

As Paulus explained it can be used almost any time of the day for a few hrs

to capture pips . Don't be greedy , take a few and wait for the next signal

There will be many signals during a session and a choppy or range bound day

is preferred .

This mornings trades , I just used the stoch as trigger .

Have to be quick . the signals come rapid fire ..

I only use the line graph ..bars scare me out of too many trades ..lol......

I've played around with the system and renkos this morning - semisuccessfull.

How much is your stoploss?

If/When I use a sl , it is a few pips above/below the last swing ..

please post your chart if possible ..thx

This system seems to be working well when we have rangebound movement. I guess we could look at a currency strenght meter and pick a pair which is similarly strong at that moment.

My setup with 5 pip boxes:

http://shrani.si/t/1O/kB/8HZbVC/1.jpg

I saw 14 signals today in the first 6 hrs of london.

Every one went for 10+ pips.....

Wow nice chappy.

I see your set up is different to that of the original in this thread - why is that and how is it different?

Also, has anyone else thought about using Bollinger bands instead?

Thanks!

Well , the only real difference is that it is on a renko chart (3 box size ) ..

I have the keltner set to 1.5 , but actually have only been using the stoch (15/3/2 ) for entry and exit .

Put it on a renko chart and see what you think ..

A renko setting of 5 will give fewer but more dependable signals .

As Paulus has said a bollinger band doesn't work as well , as it expands and contracts .