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The alternative method (50 pip candles)

  • #1
  • First Post: Dec 8, 2009 3:46am Dec 8, 2009 3:46am
Hi,

Here is my new method i want to share with you.

Our goal is not to follow the price and guess where the price is going, but to set a trap to the price and catch some pips once on 3 trades.

Each time the price move 50 pips up, i draw a green candle or a +.
Each time the price move 50 pips down, i draw a red candle or a -.

As Renko, this system does not take care about time, a candle is drawn when 50 pips are done whatever the time to reach it.

here is GBP/USD december :
-++++-+++---++--+---+---++--

or like this :
Attached Image (click to enlarge)
Click to Enlarge Name: 09-12-08 10 29 10.jpg Size: 29 KB
  • #2
  • Dec 8, 2009 4:02am Dec 8, 2009 4:02am
And where is a trap?
  • #3
  • Dec 8, 2009 4:12am Dec 8, 2009 4:12am
Each time the price reach a multiple of 50 (1.6350, 1.6400...), i set an order with a SL = 50 pips and a TP = 50 pips

If i buy, it is a +, if i sell it is a -

Here are my orders :

+-+-+-+-+-+-+-+-+-+-+-+-+-+

here is december :

-++++-+++---++--+---+---++--

Sometimes, the 2 lines correspond an i win when the 2 symbols are the same. If i loss, i play with 2 lots, if i loss again i play with 4 lots, after i start with 1 lot in all cases.

here is a uptrend :

++++++++++++++++++
You can see with my orders, i win 1 time on 2
+-+-+-+-+-+-+-+-+-+-

here is a downtrend :

-----------------------
you can see the same
+-+-+-+-+-+-+-+-+-+-

here is a range

+-+-+-
my orders :
+-+-+- perfect

another range
-+-+-+
my orders change like this
+-++++ i consider a range is 3 alternative symbols, in this case the 4th and next symbols will be the same as the 3rd until the range is finished.

Let's see the results for december :
-++++-+++---++--+---+---++--
+-+-+-+-+-+-+-+-+-+-+-+-+-+-

total = -50-100+200-50+100+50+50-50+100+50-50+100+50-50-100+200+50+50-50+100+50+50-50+100+50-50-100+200 = 850 pips

others months :
august = 2 400 pips
september = 800 pips
october = 750 pips
november = 950 pips

enjoy it !!
  • #4
  • Dec 8, 2009 4:31am Dec 8, 2009 4:31am
Following this method, i'm actually long on GBP/USD at 1.6350.
  • #5
  • Dec 8, 2009 4:34am Dec 8, 2009 4:34am
So you just trader round numbers and you double your lot every time your loose but not more then 3 times?
  • #6
  • Dec 8, 2009 4:40am Dec 8, 2009 4:40am
Quoting Dezil
So you just trader round numbers and you double your lot every time your loose but not more then 3 times?
Yes !
and adjust orders when there is a range...
  • #7
  • Dec 8, 2009 4:51am Dec 8, 2009 4:51am
Quoting zebulon
Yes !
and adjust orders when there is a range...
some example of adjusment??

For example we trade like this
1. buy(1lot) =loose
2. sell (2lots)=loose
3. buy(4 lots)=loose
so after thant we consider we are in range so we trade 1 lot again, but i didn't get hoy you adjust further orders in this case
  • #8
  • Dec 8, 2009 4:57am Dec 8, 2009 4:57am
adjustment = changing order in a range like that :

Quoting zebulon

another range
-+-+-+
my orders change like this
+-++++ i consider a range is 3 alternative symbols, in this case the 4th and next symbols will be the same as the 3rd until the range is finished.
  • #9
  • Dec 8, 2009 5:18am Dec 8, 2009 5:18am
Quoting zebulon
adjustment = changing order in a range like that :
sorry, didn't get all this + and -
maybe someone will
  • #10
  • Dec 8, 2009 5:30am Dec 8, 2009 5:30am
Quoting Dezil
sorry, didn't get all this + and -
maybe someone will
For the price : + is a green candle (50 pips up), - is a red candle (50 pips down)

for an order : + is a buy order, - is a sell order
  • #11
  • Dec 8, 2009 7:14am Dec 8, 2009 7:14am
one more candle (-), i loss

I'm short now with 2 lots at 1.6300

december = 800 pips
Attached Image (click to enlarge)
Click to Enlarge Name: 09-12-08 14 05 26.jpg Size: 27 KB
  • #12
  • Dec 8, 2009 7:20am Dec 8, 2009 7:20am
Quoting zebulon
one more candle (-), i loss

I'm short now with 2 lots at 1.6300

december = 800 pips
And why you went long on the last candle?
Market is like a puzzle, YOU have to fit the pieces!!
  • #13
  • Dec 8, 2009 7:23am Dec 8, 2009 7:23am
Quoting Chris_B
And why you went long on the last candle?
Yes, why?
  • #14
  • Dec 8, 2009 7:26am Dec 8, 2009 7:26am
Quoting Chris_B
And why you went long on the last candle?
Because this is the alternative method .
Each trade is opposite than the previous (except in certain ranges).
I 've started long at the beginning of the month, and short, long, short...
  • #15
  • Dec 8, 2009 7:27am Dec 8, 2009 7:27am
Quoting zebulon
Because this is the alternative method .
Each trade is opposite than the previous (except in certain ranges).
I 've started long at the beginning of the month, and short, long, short...
But isn't better to follow the trend? More probabilities...for me..

You are supposing that the price goes +50 and -50 forever...always in a range...
Market is like a puzzle, YOU have to fit the pieces!!
  • #16
  • Dec 8, 2009 7:34am Dec 8, 2009 7:34am
Quoting Chris_B
But isn't better to follow the trend? More probabilities...for me..
I think the probability the price will go 50 pips up or will go 50 pips down is the same.

I just know the price will move but i'm sure i don't know where !

I don't want to guess where the price is going at each candle, i just want each month more + than -
  • #17
  • Dec 8, 2009 7:50am Dec 8, 2009 7:50am
Quoting zebulon
I think the probability the price will go 50 pips up or will go 50 pips down is the same.

I just know the price will move but i'm sure i don't know where !

I don't want to guess where the price is going at each candle, i just want each month more + than -

Instead I think that if there is a trend...the probabilities are more likely to go in the trend direction..have you ever tried to suppose that the next candle is in the direction of the previous candle? I think that you can have a better result...but maybe I0'm wrong...maybe you have tested this thing for a long time..
Market is like a puzzle, YOU have to fit the pieces!!
  • #18
  • Dec 8, 2009 7:54am Dec 8, 2009 7:54am
Quite interesting approach.

But you are assuming that you are at the screen always, no?
What are you doing when you are not sitting at the screen and one of your 50 pip candles closed?
  • #19
  • Dec 8, 2009 7:58am Dec 8, 2009 7:58am
Quoting zebulon
I think the probability the price will go 50 pips up or will go 50 pips down is the same.

I just know the price will move but i'm sure i don't know where !

I don't want to guess where the price is going at each candle, i just want each month more + than -
Mmmm now i'm starting to understand better the system...it surely has his logic....have you backtested also before august 2009? And only with GBPUSD?
Market is like a puzzle, YOU have to fit the pieces!!
  • #20
  • Dec 8, 2009 7:58am Dec 8, 2009 7:58am
Quoting Chris_B
Instead I think that if there is a trend...the probabilities are more likely to go in the trend direction..have you ever tried to suppose that the next candle is in the direction of the previous candle? I think that you can have a better result...but maybe I0'm wrong...maybe you have tested this thing for a long time..
I've tested a similar system with a different rule :

if the 3 precedent candles are green or red, we are in a trend and then we are playing the trend and always buy or always sell, untill the trend is finished. But often, the end of the trend is near.
The results were not so good....
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