Nanningbob 4H trading system

Thanks Bob. This addition should add some protection against those long runners that don't want to reverse. Take the small profit and wait for the stronger reversal later. Just to add my two cents, I've been looking at another way to decide when to add a L2 or L3 to a trade that goes against you. As I described in earlier posts, I like to trade this system manually with a TP set at 50. I'm entering when I'm seeing first that red, white and blue are at extremes. Price is at top or bottom 1/3 of chart and RSI(8) shows divergence. My idea of when to enter another level is wait until divergence happens a second time instead of just jumping in at a fixed 150-200 pips step. This may help keep DD smaller by trying to reenter at a spot that is more likely to see some reversal. The chart below shows an example. I waited until close of red candles to confirm divergence. First level trade was a no go but second level trade was a winner.

Hi Bob

keep up the good work. I am glad you are using steve`s mptm. do check his other threads, in particular the Scooby BOJ thread it has great insight especially with regard to xxxjpy pairs. Also his schlossberg thread has exciting new ideas.

kind regards

Not a bad idea. I am going to put that on my chart and try. I just need to know if the one trade and stop EA will work??

Yeah gonna have to read more of his stuff. That MPTM ea looks dynamite, may solve maybe 70-80 % of my DD problems. Almost all big DD runs could have closed for a small profit if I had had a break even SL setup. If it works well you could play more MA crosses with that EA backing you up. ON a 4H chart most crosses will go 50 plus pips.

Also, I need something like what he has for my follow the trend system I have been trying to develop. Looks good to me.

Thanks to magnumfreak this indicator will come in handy. It's supposed to divide your chart into equal thirds and update every tick. With markets closed now, you'll have to refresh if you scroll or change the scaling.http://cdn.forexfactory.com/images/attach/mq4.gif Thirds.mq4

Aha, that is what I was looking for, now add some features and away we go.

hi bob just finished reading your thread. G/J lookin like a great setup for a long. wishing every1 many pips!

I'm not making many trades with this system lately, things just dont seem to be setting up properly.

Added a aud/usd sell last night and sitting on -32, and still on a usd/cad trade at -300, should have bought a second level a long time ago but it just didnt look like setting up for a reversal (and it hasn't!).

Nice day as far as profits go but still waiting for retracements on some pairs to get out on. Thinking of using my profits to take out the eur/jpy and nzd/jpy. Maybe after the jpy session, see how it goes. I want to dump 3 of my L1 instead of two so maybe wait a bit more. Forex is such a waiting game. Took all those 50+ pip profits yesterday. I know Monday will almost never move the markets much. Wed. is a big news day so I want to unload some of this deficit.
TAKE PROFITS
aud/cad +18
aud/usd +86
chf/jpy, L2 +43
eur/cad +54
eur/jpy, L3 +68
usd/chf L4 +68
STRADDLE TRADE

CLOSED FOR LOSS
eur/aud -23
OPEN TRADES
aud/jpy, -83
chf/jpy, -476 L2 -43
eur/jpy, L2 -600 L4 0
eur/usd -57
gbp/jpy -64
gbp/usd -148 L2 0
nzd/jpy, -487 L4 -107
usd/cad -202 L2 0
usd/chf -396 2L -269 L3 -64

TOTALS
total for day +314
for the week +314
for the month +1263
Carry over -2996
primary trades
BUYS gbp/chf
SELLS aud/nzd
Secondary trades
BUYS
SELLS eur/nzd

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility.
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin.

The system doesnt determine the market, the market has a mind of its own. What we try to do during these times is breakeven. So that is what I may end up doing here. We are in these long non retracing trends, which are unusual in that they are going for weeks at a time. What it means is businesses arent doing business and that is not good no matter what the politicians are telling us. When countries are trading prices moves up and down with each major transaction but we are seeing that this is not happening. So we will try to ride this out until better days come.

I am adding this to my chart but RSI 8 divergence looks good to me. I was taught on MACD divergence but you rarely see that on a 4H chart. RSI divergence looks like a winner though. Here is a pic. Notice A1 higher highs on price action but lower highs on RSI. B1 Double bottom on chart but higher lows on RSI. Looks good Toothman, great idea. Entrance then can be anyplace above or equal to A1 or Lower than or equal too B1. Try to enter as close to the highs or lows you can get. Not a bad idea. Or a pending order at the break in the S/R level at this point.

I put gold lines where S/R is so anyplace around that line would be a great entrance instead of the cross. You would manually enter the trades for now. I will be thinking of an entrance EA and how to do that. I have an idea on how to code that.

Would love to find an EA that would trade on RSI divergence but the only thing I could ever dig up was indicators that would alert on macd or stoch. divergence. I'm almost to the point that I'd pay a good programmer to do this for me. The one thing I'd add Bob that I like to do is wait for a candle close in the opposite direction to confirm divergence. Good luck with the coding on the entrance EA.

Yeah, I understand it's the markets fault etc!!!

Things are looking weird, that is for sure.

The RSI 8 divergence is good, I have been using it for a while myself.

Yeah, there is no such thing as a system that works all the time. There are thousands of threads started that show some system that will work for most of the time or during certain market conditions but there are none that are 100%. What I have tried to do with this system is to be honest about its shortcomings and showing how to get out of those bad periods. I have not enjoyed the great success since about mid December and that is because we are getting these long unretracing or minimum retracing trends. To me if I can pass these tests without major damage or breakeven to my account then I have the system down pretty good. Once again just like yesterday I am sitting on a bunch of 40-50 pip profits and I wonder, do I take them or will price finally break? I mean I could bank another 200+ pips now or do I let them ride. This is really difficult decision to make when the market just isnt reversing now. Yet I need a good move to get out of my jam. I need several currencies to do 150-250 pip runs which usually are not hard to get but recently its been tough. I dont think I have pocketed very many 100 pip runs lately and usually you get quite a few in a months time. Well we will see what happens.

mayb u could try going with the flow. applying trending systems during trend time and then reverting back to your system when it counter-trends again. though im not trading your system(4hrs is too long for me, conflicts with my personality) but i have adopted your recovery system n its a god-sent. i made 3 trades today all went against me(mayb my system sux) but applying ur system let me got out with +ve $$ even tho its -ve pips.

many cheers to u and i hope the countertrending days will return for u! happy CNY.

I like this system, as Ive said numerous times before!!!

Lots of trades to be taken last night on the USD pairs, however I only took the aud/usd for +50, after it came back down and hit my trailing stop. I usually dont use trailing stops for that reason, but I needed to lock in some profit.

whoo boy!! I love it when a plan falls together, Great day. Took all my profits and protected my Jan profit (remember I carried a large DD from Jan) and have protected my Feb profit. That is how you eliminate a big DD. Ok. new day. Maybe should have stayed in the JPY trades but I had my out and took it. I based all my decisions on S/R lines and the 50MA. Price will either bounce off the 50 or go through. I didnt want to find out if it bounced because if it does you could have a big drop again which is what happened to me last time. Ok now the funny thing is I saw no new trades today so I am going to go relax. I took my 800+ pips and used them to eliminate my DD. I may take some trades crossing the MA 50 later today. I am probably going to spend the rest of my week getting version 3 ready. I am demo testing it now.
TAKE PROFITS
aud/jpy, +67
chf/jpy, +43
eur/jpy, L4 +132
eur/usd +74
eur/nzd +92
gbp/jpy +144
gbp/usd -24 L2 +118
nzd/jpy, L4 +59
usd/cad L2 +60
usd/chf L3 +68
STRADDLE TRADE

CLOSED FOR LOSS
gbp/chf -13
chf/jpy, -363
eur/jpy, L2 -420
nzd/jpy, -339
OPEN TRADES
aud/nzd +10
usd/cad -130
usd/chf -324 2L -197

TOTALS
total for day -302
for the week +12
for the month +961
Carry over -641
primary trades
BUYS
SELLS
Secondary trades
BUYS
SELLS

OK my top 11 pairs and alternates:
This gives me 2 of each: aud, cad, chf, gbp, nzd,
4 of each eur, usd, jpy

aud/cad - aud/nzd this matches minor or commodity currencies together. As I have stated before minor currencies can get squashed by the larger currencies.

chf/jpy - eur/jpy - eur/usd - eur/cad - eur/nzd

gbp/jpy - gbp/usd - usd/chf - usd/jpy

Alternatives: the aud/jpy, eur/jpy, are all similiar so choose one. The Aud/jpy is not as volatile as the gbp/jpy if you want less movement but still like some volatility but it will do long trends more. The most important thing is you dont want to be heavily investment into any one currency. If the EUR/NZD is too volatile for your tastes you can replace it with nzd/chf or nzd/jpy. I just happen to like the eur/nzd pair and the way it flies around the chart.

Most volatile pairs: eur/nzd and gbp/jpy can be replaced with aud/jpy nzd/jpy nzd/chf for less volatility.
I no longer trade usd/sgd. It is going to 25:1 leverage, simply not worth using up that much margin.

Thanks for the good word. I have tried trend trading and all I did was get my brains bashed in. LOL Counter trading is the only way I have stayed profitable month after month. I know price will retrace, it is a given, but the trend once you see it, it may be done and then .............. SL time again. I am glad you like my recovery system, I have never tried using that with a trending system. Maybe that is the answer for that too. hmmmmmmmm. Will consider it........... maybe ...............Good luck.

CNY boom boom bang bang all night long. They start shooting fireworks off 5 or 6 pm and stop around 6 or 7 the next morning. We having nothing like it in the USA. I worked for Disney World for 12 years and I thought they had some of the best fireworks shows in the USA. They are puny compared to what goes on here. Unbelievable. Good luck trading.

Here is a pic of the eur/jpy trade that was so much trouble. After watching these kind of trends, I have come up with a way to handle them and will publish my ver 3 hopefully this weekend. I found a way to pick up the trade at all the orange arrows and you are going to love it. Demo the EAs etc now making sure everything works. Anyway a trend trader will be jumping up and down saying follow the trend, follow the trend. The problem is when did the trend start? How long will it last? and when and where should you get out or get in? In my pic I made a critical decision that the trend would continue once it passed the 50MA (white arrow). Well it didnt and I ended up with a big DD. I could have exited my trades there (eur/jpy, chf/jpy, nzd/jpy) for small losses. Instead I stayed in (followed the new trend ??) and got into trouble. I am again at this decision point and this time I closed out the trade. A trend trader has to decide to continue following the trend, but which way? Follow it up if it breaks the 50MA or play the bounce and follow the trend?? Tomorrow all over the world so called trend trader gurus will say didnt I tell you to follow the trend, see how it broke the 50MA and continued. See the H&S on the bottom and how it broke the previous swing high. You need to get in. OR See how price bounced of off the 50 MA and continued on the trend. Sell the rallies, how many times do I have to say sell the rallies. So what is it trend traders? answer me this? Is this a sell the rally for the DT will continue or buy the new trend, it broke the previous highs and has the candle and chart pattern buy, buy, buy or Get the picture. (see the aqua arrow) tomorrow they will have the answer. I want the answer today. My viewpoint is I stay out of the middle of the charts, dont know what will happen there.