So far so good indicatorless system...

Yes I have read through part of that thread, not the whole thing. I know it's on indicator free trading, however this can be accomplished many ways.

The method behind the madness is simple, what this system attempts to do is capture the market during a time when it's range bound meaning it hasn't made up it's mind if want's to trend up or trend down. During this time the market creates points of support and resistance, applying a little physics behind it we assume that once the market makes up it mind it will "stay in motion until acted upon" meaning if the market decided to trend up it will start trending upward until it hits another point of resistance. Before the market starts trending, while it's in it's range bound status we setup two automatic buy ins, one buy in is set X number of pips above resistance for LONG and the other is set X number of pips below support for SHORT. This allows us to be bought into the market when it makes up it's mind and decided to start trending. The reason I put "X number of pips" is because it depends on the currency pair as to how far away you need to set your buy ins, some pairs fluctuate more than others, this is part of the discretionary part of the system however once you determine what you fee comfortable with it doesn't have to be disctretionary.

So now that the market has moved one direction significantly your bought in, let's say the market trended upward, you now move the other buy in you had set for SHORT to a discretionary point below the rising price, keep it a safe distance away that will allow for market fluctuations as it rises. What I do is set it to break even or higher depending on what price is doing, once price has created a few more time frames on your chart you will see it hits another point of resistance, it will then bounce off of it and create a new point of support, then I would place my sell out X pips (usually 2) below the new support line thus if price decided to come back down your sold out for a profit automatically. The reason I do this is I don't see the point in setting a theoretical target for price to hit, why would you do that, what if price missed your target by a few pips then plumeted to most peoples stop losses where they lose money? Doing it the way I mentioned allows you to maximize your profit by following price with a manual trailing stop loss. Granted this requires you to sit in front of your computer more often so it's not for everyone.

Thanks for the explanation. It's good to see a methodology that uses price action for BOTH entry and exit.

Richard,

Thanks for that explanation, now it makes more sense. So really this is just a breakout/straddle system.

I don't know if I like the 3min chart idea. MT4 doesn't even have that timeframe. But again, breakouts work on all timeframes and if you chose a higher timeframe you woulnd't have to sit in front of the comp either....

I must say I've never actually attempted this type of thing. I've played around with session-specific breakouts (ie trading at the same time every day - "market open breakout") but not with what you're working on. So I take it the basic idea is to move SL to breakeven as soon as practicable, right? That way you'd stop out of a lot of trades that will ultimately go your way but you also minimise your losses....

I like this... might experiment with it and maybe write up an indicator. I'll call it the "Indicatorless indicator".

Best wishes

Lighty

hi richard,
Can you please share us your template /indicators here?
Lets see the possibilities and who knows make an EA.

Best Regards,
Marcelo Marques

Richard
If you don't mind me asking? What times or sessions do you usually trade? What pairs do you trade? and How many lots do you normally trade with? Currently I trade off the 1min chart and use the 5minute, 15 minute and 1 hour for direction.

Chris

lol this is old, I don't use this anymore. However I trade EU only, 1tick and 10sec chart, lot size...that's not important but it's a pretty decent size I used to trade London open but cannot get up in the middle of the night to do that anymore so I trade ny open and london close.