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THV system, final edition

  • #16,721
  • Jan 9, 2010 4:09am Jan 9, 2010 4:09am
Quoting novice198
Hi Castlebrook,
From your query to MissPips it seems you are watching M5 charts and when the conditions are met you are going back to M1 chart for a good entry. Is my understanding correct ? If it is then do you watch the trade on the M1 chart or M5 chart for the exit till you hit the target pips or stop loss?
Cheers
Novice
This is a long answer so grab a pot of Yorkshire tea and settle down to read. Then find some examples for yourself to test.
Firstly yes, I get a heads up on the 5 min chart and then go to the 1 min for entry. Here's the procedure with an example...

TIS Execution Procedure

The pre-session routine is done and the intra-day routine is in effect as detailed in the Trading Plan. (See my earlier posts) In particular note the trend on the 15 min and 1 hr charts. Trading with the trend is preferable. Also note whether or not there is enough ADR left in the direction you intend to trade.

Trading Long

1. Monitor the 5 min chart. The heads up is the 5 min IC histo turning green (top Histo). (This is what I need the alert for)
2. Next look at where price is in relation to the 20 sma. Is it above or below? Price above the 20 sma is better/less risky when the trade is taken. Are the 20 sma and Coral lined up correctly? For a long the 20 sma should be above the Coral when the trade is taken.
3. Now move to the 1 min chart. “Stalk” the price action and only take a long trade when the (Ichimoku Cloud (IC) and price is above the Coral. Looking at the 1 min chart price must be above the Coral and both top IC histos must be green when you trade.
4. Both the 1 min fast and slow Trix must cross each other and both be green. (Best and most secure trend confirmation is when the fast Trix crosses above the zero level).
5. If the 1 min fast Trix is overbought wait for the next wave when the fast Trix turns green again.
6. On the 1 min chart you can see the 5 min Trix. Safest long trades are when at least one (usually the fast trix) is green. Ideally both are green.
7. All the time monitor the 5 min chart to see if the price is above the 20 sma . (Also the safest trade is when the second Histo, the 15 min Histo has turned green so both Histos are green.)
8. If more than 10 pips to resistance take the trade long. Again this is not an absolute rule but most conservative.
9. Place a stop loss as detailed in the plan, ideally below the last 5 min Swing Low if not too far away and is within your money management rules.
10. Exits can be a flat 10 pips, Sweet Spots, trendlines, pivot points or other support and resistance. It is also possible to scale out with 50 % at the first target and 50% at T2, whilst bringing the stop closer to breakeven. Please read the section on ADR.

Trading Short

Exactly the opposite but change up for down, long for short, below for above, green for red etc...

More aggressive trades can be taken (going for only 10 pips) by ignoring points 2, 6 and 8. In other words you’re not concerned with where price is in relation to the 20 sma; you’re not concerned about the colour of the 5 min Trix and you are not concerned about trading into support or resistance.

Trade example (Short)

EUR/JPY
1. Downtrend. (Not shown) Heads up on 5 min chart when the 5 min IC Histo turns red at 0700 hrs. (They both turn red at the same time which is better)
2. Price is moving below the 20 sma and the 20 sma is below the Coral which is good for a short.


3.Looking at the 1 min chart (below) price falls below the Coral and both top IC histo lights are red. (0701 hrs
4. Both the 1 min fast and slow Trix have crossed each other and both are red. (Also fast trix crossed Zero line)
5. 1 min fast Trix not oversold.
6. Both 5 min fast and slow Trix are red.
7. Back to the 5 min chart, the price is below the 20 sma . Both IC histos on 5 min chart are red which is good.
8. There are more than 10 pips to support so the trade is taken short at 129.74.
9. A Stop Loss is placed above the Swing High at 129.91 (total 17 pips which is good).
10. A limit order is placed at the Sweet Spot 129.50 to exit the trade. Please note if you are purely scalping for 10 pips then you’d exit at 10 pips profit.


Just try a few examples for yourself. This seems long winded but with practice you look for these 10 points almost by instinct and it takes SECONDS. Don't forget after the heads up on the 5 min chart you may have to wait for the price to cross the Coral on the 1 min chart.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: trade exampleeurjpy11 part1(5) test.png Size: 49 KB
Click to Enlarge Name: trade exampleeurjpy11 part2(1).png Size: 35 KB
  • #16,722
  • Jan 9, 2010 4:24am Jan 9, 2010 4:24am
Quoting Emp
Hi Nobitacu

do you mind sharing your latest rules?

I am still testing the system via demo account, some of my trade are not successful, perhaps due to low volume.
My rules as follows:
1) Trix touches zero
2) Price above (long) or below (short) coral and cloud.
3) M1 and M5 must have same trix colour.
4) TP 10 pips, SL 20 pips.
5) H1 main trend line.
6) Not forgetting important SR and Pivot levels and also round numbers.

Pls comment if necessary. Thank you Sir.
Hello Sir,

All my latest rules are posted on my rules post which can be located by clicking on my signature link.

1. With the zero line, for myself, it don't really have to have happened for me to enter, as this rule is not a set THV rule as stated from the manual, but as an extra confirmation of the direction, so that's what I look at it as, an extra confirmation for me if met. However, more often than not, soon after I enter, the Fast Trix will often cross over the zero if it hasn't yet at the time of my entrance.

2. Correct, all THV rules must still be followed/confirmed for entrance.

3. What I look for with Trix color is this, and this is also stated on my rules post. Right as I see all rules will be confirmed on the M1 (if I'm entered on M1 chart), I quickly look at the M5 Fast Trix to see if it is also of the same color of my trade direction, I don't look at the Slow Trix. If let's say I'm going Long on my M1 chart, and I see the M5 Trix is still crossed down, however, the Fast Trix has just recently changed color to Green, then for me that's good to go. I don't enter the trade if I see that the M5 Fast Trix is still the opposite color, or the M5 Trix overall has just crossed into the opposite direction of my trade.

4. Correct with TP and SL, on M1 entrances of EURO however, I use only 15 pips, and 20 pips for M5 entrance. For Cable, I use 20 pips for both M1 and M5 entrance, but really, it all comes down to what you're comfortable with. Just remember however with the TP. I do take TP earlier if there happens to be a support/resistance/pivot that is in the way before the price where I would have wanted my 10 pips TP target, otherwise, sometimes price will bounce off the pivot and not reach the 10 pips TP.

5. A very good extra confirmation to use if you like.

6. Yes, these numbers must be known where they are before you enter your trade, which also falls under what I've said about it on 4.

I'll try to post some trades as I finished them, right after my vacation is officially over to show some example screenshots of trades I placed, which will start this Monday's NY Session. I don't really trust the movements right after the end of the year Holiday and New Years, so I wait a bit before starting again in January. We can't and won't win every trade, it's impossible, but hopefully we'll win more than we lose in pips after the week is over consistently, which is all I'm going for. There are so many ways for which the THV can be traded if wanted, or can simply be traded with only using the THV default rules, which already works great on its own. All in all, as you trade the THV more, I'm sure you'll end up with your own method/rules of trading it on your own that fits your own trading personality.
  • #16,723
  • Jan 9, 2010 6:41am Jan 9, 2010 6:41am
Quoting castlebrook
This is a long answer so grab a pot of Yorkshire tea and settle down to read. Then find some examples for yourself to test.
Firstly yes, I get a heads up on the 5 min chart and then go to the 1 min for entry. Here's the procedure with an example...

TIS Execution Procedure

[font=Times New Roman][size=3]The pre-session routine is done and the intra-day routine is in effect as detailed in the Trading Plan. (See my earlier posts) In particular note the trend on the 15 min and 1 hr charts....


Thank you for your detail explanation! Just a question,

Which are your set of the MTF CLOUD INDICATOR? Do you use a 2,5,8 set, or the deafult 2,3,5 set for the ichimoku cloud?!
  • #16,724
  • Jan 9, 2010 7:44am Jan 9, 2010 7:44am
Quoting castlebrook
This is a long answer so grab a pot of Yorkshire tea and settle down to read. Then find some examples for yourself to test.
Firstly yes, I get a heads up on the 5 min chart and then go to the 1 min for entry. Here's the procedure with an example...

TIS Execution Procedure

[font=Times New Roman][size=3]The pre-session routine is done and the intra-day routine is in effect as detailed in the Trading Plan. (See my earlier posts) In particular note the trend on the 15 min and 1 hr charts....
Thank you for the details of your trading method. Would you please post the 1m template shown above.

Thank You and Regards,
Cigarguy
Keep It Simple
  • #16,725
  • Jan 9, 2010 10:35am Jan 9, 2010 10:35am
Quoting iqyusan
Here is my temporary real trading result for THV system. use m1 and m5 for entry, and use other higher TF for trend ....and discipline MM of course.....

Thank you THV Team .....
nice job dude! Did you add more rules or indis? What session did you trade?
passion and discipline
  • #16,726
  • Jan 9, 2010 11:17am Jan 9, 2010 11:17am
Quoting Sailorx
Thank you for your detail explanation! Just a question,

Which are your set of the MTF CLOUD INDICATOR? Do you use a 2,5,8 set, or the deafult 2,3,5 set for the ichimoku cloud?!
2,3,5
  • #16,727
  • Jan 9, 2010 11:22am Jan 9, 2010 11:22am
Quoting cigarguy
Thank you for the details of your trading method. Would you please post the 1m template shown above.

Thank You and Regards,
Cigarguy
I can't get back to my desk for a few days (away on hols) but I've posted it before so it's here on one of my posts a few weeks ago.

Cheers!
  • #16,728
  • Jan 9, 2010 12:21pm Jan 9, 2010 12:21pm
Did some one test eur/jpy and usd/jpy in Asia session? And whith what result?

Thank you and have a good week full of succes!
passion and discipline
  • #16,729
  • Jan 9, 2010 5:07pm Jan 9, 2010 5:07pm
Quoting iqyusan
Here is my temporary real trading result for THV system. use m1 and m5 for entry, and use other higher TF for trend ....and discipline MM of course.....

Thank you THV Team .....
iqyusan,

what is your trading plan to achieve this result? I ask because it appears that you are averaging over 50 pips per trade (19 trades with over 1000 pips netted) whereas most are only targeting around 15 - 25 TP and thus would be averaging less than that amount across all (winning and losing) trades. Sorry if I misunderstood something in the result that you posted. Also, sorry if you are already posted your trading plan somewhere in the thread....if you did, kindly just reference that posts and I will read for myself. Thanks.
Trading Foreign Exchange....But Only By The Grace of God!
  • #16,730
  • Jan 10, 2010 12:03am Jan 10, 2010 12:03am
Sorry, noob question:

1) How do I get the 20 SMA?
2) 1st IC histo means M5 fast and 2nd means M5 slow? I am using TH4 Trix MTF
3) What is ADR? How to determine?
4) What is sweetspot? How to determine?

Thank you sir for your help.

Quoting castlebrook
This is a long answer so grab a pot of Yorkshire tea and settle down to read. Then find some examples for yourself to test.
Firstly yes, I get a heads up on the 5 min chart and then go to the 1 min for entry. Here's the procedure with an example...

TIS Execution Procedure

[font=Times New Roman][size=3]The pre-session routine is done and the intra-day routine is in effect as detailed in the Trading Plan. (See my earlier posts) In particular note the trend on the 15 min and 1 hr charts....
  • #16,731
  • Jan 10, 2010 2:55am Jan 10, 2010 2:55am
Quoting Emp
Sorry, noob question:

1) How do I get the 20 SMA?
2) 1st IC histo means M5 fast and 2nd means M5 slow? I am using TH4 Trix MTF
3) What is ADR? How to determine?
4) What is sweetspot? How to determine?

Thank you sir for your help.

Have a read of the full trading plan post 15399 page 1027. That's a start.
1. 20 sma from MT4 indicators
2. 1st IC is 5 min second one is 15 min (on 5 min chart) You don't have a fast and slow Ichimoku Cloud
3. Use the THV Info Bar in the download. It gives ADR for you on screen.
Average Daily Range (ADR)

The average daily range of a currency pair will usually be completed between 4 hours before the end of the Tokyo session and the end of the London session. This is important. I trade intraday so I need to know the ADRs of the pairs I’m trading. This is because I always want to know how much further a pair could realistically move given its ADR compared to today’s range. This information is useful for profit targets and stop placement.

If the ADR of cable is say 210 pips and at 1pm GMT it has moved only 100 pips then chances are another move of size is still to go. (Usually with the trend) We can use this to our advantage in our trading. This is because once a day (at least) a currency pair will make an extended run towards its ADR. We just need to decide which way. This will depend on time of day, how early/late it is in the session and the current trend. The extended run is almost always due to a news item.

If only half the range has been done for example, I could scale out of a position hoping for the big run to ADR. I usually scale out at 10-20 pips on the 5 min chart and 20-30 pips on the 15 min chart or so to reduce risk. Then bring stop loss to break even plus 5.

If a pair like the EUR/USD has an ADR of 150 pips and during a given day it has been trading at the top of this range with the session end approaching it would not be prudent to open a new long position because this would not be a high probability trade.

In addition if the ADR is greatlyexceeded in an extended move, then watch for a pullback to the average range area. This is sometimes good for counter trend trading after London closes.
I use the ADR calculated over the last 5 days as my ADR. I also watch the 20 day ADR too as a possible extreme and as a test of volatility. Software is available on the internet to calculate the ADR for each currency pair.

See trading plan for more details
4. See trading plan. Human psychology
Sweet Spots

00, 20, 50 and 80 are sometimes called Sweet Spots. These can be good support and resistance levels. The market tends to slow down or consolidate at these numbers especially with the GBP/USD and EUR/USD (most of the majors too). They are good for profit targets and also excellent points to enter the market. Sweet Spots are ideal technical areas for placing stops especially if they coincide with recent highs and lows. These are used extensively in our methodology in preference to pivot points.
Why do Sweet Spots work? – Well we know the forex market price action and levels are the sum of the human psychology of those people taking part in it. (See Trading Psychology in Chapter X) As humans we like order and we like round numbers. Just think about it.

10, 35, 65 and 90 are mid range numbers (MN). These are weaker but can be used as entries or targets.

Also I'm writing a book at the moment and here's my thoughts on systems...
Some Thoughts on Trading Systems

To be a successful trader you need to use your judgment. A trading system is a style of trading, not an automatic turnkey operation.
To benefit from a system, you must test its parameters and fine-tune them until that system becomes your own, even though originally it was developed by someone else. Winning takes discipline, discipline comes from confidence, and the only system in which you can have confidence is the one you have tested on your own data and adapted to your own style.

You are under no obligation to buy or sell. You have the freedom of standing aside, but most traders throw away this awesome advantage. People get sucked into the excitement of the game. They jump in instead of waiting for the best trades. Remember, the idea is to trade well, not to trade often.

Finding a profitable trading plan once you have grasped the basics of forex trading is not the most difficult part of trading. The real difference is the ability of the trader to stick to the plan and trade it consistently, without fail, time after time.
The reality is that 90% of traders simply cannot do that and that is why they fail. Sticking to a trading plan/system and trading it consistently with discipline is what separates the winners from the losers in the end.

It is not about the plan or the system; it is all about you as a trader

Have a good read of the above plan.
  • #16,732
  • Jan 10, 2010 3:01am Jan 10, 2010 3:01am
Quoting castlebrook
This is a long answer so grab a pot of Yorkshire tea and settle down to read. Then find some examples for yourself to test.
Firstly yes, I get a heads up on the 5 min chart and then go to the 1 min for entry. Here's the procedure with an example...

TIS Execution Procedure

[font=Times New Roman][size=3]The pre-session routine is done and the intra-day routine is in effect as detailed in the Trading Plan. (See my earlier posts) In particular note the trend on the 15 min and 1 hr charts....
Castlebrook
I know that the IC histogram is some where in the thread but can you please repost the IC histogram and the 5 min trix red in your picture and your template.
Thank You
Barry
  • #16,733
  • Jan 10, 2010 4:51am Jan 10, 2010 4:51am
wow! i'm done. i'm finally finished reading this thread. i spend time since about april 2009 and i decided don't post any messages until finish reading. thank Cobra and all team for THV system. while i was reading the v3 was changed to v4 and and now i'm going to install new version and start real trading...
  • #16,734
  • Jan 10, 2010 5:00am Jan 10, 2010 5:00am
Hi everyone, a coral version of an sma20 is available at this link

http://www.forexfactory.com/showthre...210461&page=24

if anybody is interested. From STRATMAN . Cheers

jean
  • #16,735
  • Jan 10, 2010 5:04am Jan 10, 2010 5:04am
Great Stuff! Thanks.

Quoting castlebrook
Have a read of the full trading plan post 15399 page 1027. That's a start.
1. 20 sma from MT4 indicators
2. 1st IC is 5 min second one is 15 min (on 5 min chart) You don't have a fast and slow Ichimoku Cloud
3. Use the THV Info Bar in the download. It gives ADR for you on screen.
Average Daily Range (ADR)

[color=black][size=3][font=Times New Roman]The average daily range of a currency pair will usually be completed between 4 hours before the end of the Tokyo session and the end of the London...
  • #16,736
  • Jan 10, 2010 7:21am Jan 10, 2010 7:21am
Quoting dj0ker
wow! i'm done. i'm finally finished reading this thread. i spend time since about april 2009 and i decided don't post any messages until finish reading. thank Cobra and all team for THV system. while i was reading the v3 was changed to v4 and and now i'm going to install new version and start real trading...
GoooD LucK!
  • #16,737
  • Jan 10, 2010 8:54am Jan 10, 2010 8:54am
Hi Castlebrook,
Once again thanks for your patience and the detailed trading plan. I really appreciate your work in documenting your trading plan and making it available to public, which IMHO should be a “Must Read” for all new traders. Presently, I plan to use the MTF system with MissPips 6 light strategy. Once I am comfortable with it then I will try your TIS system. At this stage I don’t want to try too many systems and get totally confused.
Cheers



[quote=castlebrook;3352371]This is a long answer so grab a pot of Yorkshire tea and settle down to read. Then find some examples for yourself to test.
Firstly yes, I get a heads up on the 5 min chart and then go to the 1 min for entry. Here's the procedure with an example...

TIS Execution Procedure

The pre-session routine is done and the intra-day routine is in effect as detailed in the Trading Plan. (See my earlier posts) In particular note the trend on the 15 min and 1 hr charts. Trading with the trend is preferable. Also note whether or not there is enough ADR left in the direction you intend to trade.

Trading Long

1. Monitor the 5 min chart. The heads up is the 5 min IC histo turning green (top Histo). (This is what I need the alert for)
2. Next look at where price is in relation to the 20 sma. Is it above or below? Price above the 20 sma is better/less risky when the trade is taken. Are the 20 sma and Coral lined up correctly? For a long the 20 sma should be above the Coral when the trade is taken.
3. Now move to the 1 min chart. “Stalk” the price action and only take a long trade when the (Ichimoku Cloud (IC) and price is above the Coral. Looking at the 1 min chart price must be above the Coral and both top IC histos must be green when you trade.
  • #16,738
  • Jan 10, 2010 9:18am Jan 10, 2010 9:18am
Hi MissPips,
With your guidance I have managed to load the SwissArmyHisto on my 1thv 4mtf template. I deleted the both indicator windows THV4 TRIX MTF and inlieu included the SwissArmyHisto in the two windows. Thereafter, I have amended the default settings to show the original 4MTF settings in classic mode ( the third label in the window is missing). I have also been able to configure the alarm settings in order to get the alarm when 5m (fast), 5m (slow) and 15m (fast) are all showing same colour (this has to be tried when the market opens tomorrow). I have retained the THV4 Cloud MTF indicator as well as the THV4 Trix V1.0. Now my question is that do I have to change these indicators to some other indicators for the Alarm to work or will it work on the current setting.
How does one reply while quoting a message. I tried while replying to Castlebrook and I think I made a mess of it. Is there a limit on the number of screen shots that I can upload on this site?

Cheers
Attached Image (click to enlarge)
Click to Enlarge Name: SwissArmyHisto_THVClassicModeSettings.PNG Size: 35 KB
  • #16,739
  • Jan 10, 2010 9:28am Jan 10, 2010 9:28am
Hi EMP,
You can download the pipware-compass indicator from Stratman's website. The pipware-compass is smoothened 20SMA.
Cheers
  • #16,740
  • Jan 10, 2010 10:22am Jan 10, 2010 10:22am
Quoting novice198
Hi EMP,
You can download the pipware-compass indicator from Stratman's website. The pipware-compass is smoothened 20SMA.
Cheers
Thanks, I have created my own simple moving average using period 20. Is it the same? I hope so.
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