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profitable Zigzag

  • #21
  • Mar 21, 2010 3:15pm Mar 21, 2010 3:15pm
Quoting Paulus
No i wont go this way I have tried this type of thing on the Asian and london break systems..from 5 to 10 ..10 to 15 its not for me.If you want a buffer try the 5ema as suggested earlier in the thread that will work

cheers for now

Paul
Thanks, Paulus, for this excellent thread. I found it because I have been noticing that the zigzag is an excellent signal and very versatile and I was searching FF to see if anyone had started a thread. You had just started this an hour before! Auspicious, hey?

It looks like the 5 ema is a pretty good filter.
I won't use stochs, MACD, etc as I have been burned too many times with them. Higher time frames, DeMark type diagonal trend lines, where price breaks them, etc. Lots of ways to filter... If you have MT4, you might try this one that I found on another thread. It seems pretty reliable.

Please keep this thread up, Paulus. You are one heck of a creative brain looking at charts...
Attached File(s)
File Type: mq4 trendline.mq4   4 KB | 1,757 downloads
Scarlett
  • #22
  • Mar 21, 2010 3:20pm Mar 21, 2010 3:20pm
Another way to enter could be above/below the first candle that fails to keep the trend going. A 1 2 3 entry or even a fib on a smaller TF for a small retrace and continuation. There are many ways to get in with minimal risk.
Scarlett
  • #23
  • Mar 22, 2010 10:43am Mar 22, 2010 10:43am
very quick powerful moves in some cases today and TM not able to keep the pace

I have seen 3 signals on EURUSD

Long went for a max of 30 pips
Short went for a max of 45 pips

and long from 1.3523

However if you go by TM we get around 0 and 0 lols for the 2 trades because as fast as it went up it collapsed..what i think is called a sudden explosive move

If these moves were news driven then I think a cap of at least 1:1 risk reward should be applied..

So... if long and the hard stop is 20 pips away take 20 as your TP etc etc

If these moves were not news driven then its just unfortunate,with strong power up moves and small tired retracements ZZ isnt going to put in a correction same with strong drops with small weak rallies..

Others I follow

usdjpy 1 short sig + 28 pips flat at mo
usdchf - 1 long sig for zero although went to 25 .currently short from 1.0616
SL at 1.0603
EURGBP 1 short sig -8 currently short from 1.9014 sl at 0.8981
eurjpy 1 long sig +4 currently 1 short sig +68

cheers

P
  • #24
  • Mar 22, 2010 12:46pm Mar 22, 2010 12:46pm
Quoting Paulus
very quick powerful moves in some cases today and TM not able to keep the pace

I have seen 3 signals on EURUSD

Long went for a max of 30 pips
Short went for a max of 45 pips

and long from 1.3523

However if you go by TM we get around...

Yes, it seems good to keep RR at minimum 1:1, since movements vary quite a lot from day to day.

Do you have any experience how this has performed historically?

Also, have you tried other opening times, like 7 GMT, when Frankfurt opens. Seems it can be good as well, though perhaps too many false BO's.

Regards

Archie
  • #25
  • Mar 22, 2010 1:58pm Mar 22, 2010 1:58pm
Hi Archie

Ive looked at Frankfurt you do get a few good moves but on the whole think they lack the real volume you initialy get in the London session start.

Ive looked at fixed TP and SL ..its a good way to trade 15 pips TP 15 pips or 10 pips SL but it really doesn't take into account the daily fluctuation in liquidity...thats where using TM hopefully comes in to catch the bigger moves

havnt got alot of history on in purely because i came across the idea trying to make another system and thread ( mech trend trading) more mechaincal..5min only because its not to slow to be boring but fast enough to be interesting..

signal update on the open positions

I have seen 3 signals on EURUSD

Long went for a max of 30 pips
Short went for a max of 45 pips

and long from 1.3523 ..this closed for 26 pips

USDCHF- 1 long sig for zero although went to 25
Currently short from 1.0616 .. this closed for 41 pips

EURGBP 1 short sig -8
currently short from 1.9014 sl at 0.8981..this closed for 33 pips
  • #26
  • Mar 22, 2010 2:15pm Mar 22, 2010 2:15pm
The 1hour signal in post 19 closed for 210 pips

P
Attached Image (click to enlarge)
Click to Enlarge Name: zz9.gif Size: 29 KB
  • #27
  • Mar 22, 2010 2:38pm Mar 22, 2010 2:38pm
Quoting Paulus
Good point..should always consider news events.. thanks


the reason I do not use TM initially is that I want a hard good supporting stop as my initial placement and thats normaly the last swing lo or hi.

With this system there is often a pull back after entry to place on TM would get you taken out to quickly

Ive shown the moves on an ABC etc principle

On the lower chart for the more conservative is a method of entry with the stochastic..

Using the same signal we get our trigger at A
We wait for a pull back to enter and use the stochastic...

Hi,

How do you set SL for the initial order for larger TF's like the 1H, since the opposite ZigZag can be very far away?

Archie
  • #28
  • Mar 23, 2010 10:37am Mar 23, 2010 10:37am
same swing lo hi just use your money management and 5% of bank rule..its the safest way to build your account ..esp with lmt history on a system like this...

Cheers
Paul
  • #29
  • Mar 23, 2010 10:45am Mar 23, 2010 10:45am
we have 2 choices here

Use TM and try to stay in for the longer moves..but may have to be prepared to see large gains closed out for break even trades

Or

Us a fixed TP with a smaller fixed SL..if we do this we need to tie down the entry alot tighter.

Il take a look

cheers

P
  • #30
  • Mar 23, 2010 11:18am Mar 23, 2010 11:18am
Im looking for a ZZ indicator that draws horizontal lines at the peaks ..its out there Ive seen it but cant find it

P
  • #31
  • Mar 23, 2010 12:42pm Mar 23, 2010 12:42pm
Quoting Paulus
we have 2 choices here

Use TM and try to stay in for the longer moves..but may have to be prepared to see large gains closed out for break even trades

Or

Us a fixed TP with a smaller fixed SL..if we do this we need to tie down the entry alot tighter.

Il take a look

cheers

P

Thank you very much for all your help!

Archie
  • #32
  • Mar 24, 2010 9:31am Mar 24, 2010 9:31am
still looking here still on ZZ 13 just looking at diff ways to control trades

so far

eurusd -15+49
usdjpy still in a trade and at +100
usdchf +52
eurgbp +11
eurjpy still in a trade and at +31

cheers

P
  • #33
  • Mar 24, 2010 9:55am Mar 24, 2010 9:55am
Quoting Paulus
still looking here still on ZZ 13 just looking at diff ways to control trades


P
Different ways to control trades?

Coming up on anything with that?
Scarlett
  • #34
  • Mar 24, 2010 12:23pm Mar 24, 2010 12:23pm
A quick update

eurusd -15+49-25
usdjpy still in a trade and at +100..now +148 and still in
usdchf +52
eurgbp +11
eurjpy +23

Entry as before but close on colour change of TM..

Im also looking at a better entry with a specific point to bring SL to break even to reduce the risk on false break outs

P
  • #35
  • Mar 24, 2010 1:14pm Mar 24, 2010 1:14pm
Hi,

It would be great to backtest this system, but I haven't found an EA that works without problems.

The test I would like to do, besides normal profitability, is smaller SL/TP values. I think that 20 pips can be ok, using 5M on EURUSD, but it's hard to say for sure. On 1H perhaps 50 pips or larger could work.

Also, I like the TM, because of the option to catch larger moves and give the trades some breathing room.

Archie
  • #36
  • Edited 7:48pm Mar 26, 2010 6:29pm | Edited 7:48pm
this is today....
keep it simple, you use a small version of botton box!!, the last small swing there is na hardly probability that break!!!!
So the rule is:
- last swing break
- the tM with same color
so u wait the close of candle to see it and not the limit order?
When the initial stop is big u prefer wait a retrace on TM and entry with small stop loss?
I have seen a similiar indicator that write above/down the swing the price

This last 2 days

Is funny that not analize the 18 may big caos in sidewinder
Attached Image(s) (click to enlarge)
Click to Enlarge Name: paulus giov 26 m.JPG Size: 77 KB
Click to Enlarge Name: paulus ven.JPG Size: 72 KB
  • #37
  • Edited 12:26pm Mar 27, 2010 12:16pm | Edited 12:26pm
For the other max and min during the day there is not a possibility that made a repaint the indicator?
like there is a min at 11.00 and 5 minute this min disappear and appear a new one at 11.05 ? so u get an entry at 11.05 and after the entry the min disappear again!!

like this i try to simulate in the past and try to see how it's move live
Attached Images
  • #38
  • Mar 27, 2010 12:22pm Mar 27, 2010 12:22pm
Quoting MatrixGunn
For the other max and min during the day there is not a possibility that made a repaint the indicator?
like there is a min at 11.00 and 5 minute this min disappear and appear a new one at 11.05 ? so u get an entry at 11.05 and after the entry the min disappear again!!
You should never trust an indicator until the candle closes and the information is "set".
Scarlett
  • #39
  • Edited 1:06pm Mar 27, 2010 12:30pm | Edited 1:06pm
Quoting Scarlett
You should never trust an indicator until the candle closes and the information is "set".
i just wait that when he go down he retrace and break the prec hilow

it's also intresting to have a Automatic trailing that follow the last TM

about break u mean close candle?
Attached Image
  • #40
  • Mar 27, 2010 2:16pm Mar 27, 2010 2:16pm
I see the Hayseed has come up with an indi now to plot lines at the high and low of the Zigzag. Great addition to this system.
Attached File(s)
File Type: mq4 ZigZag Ace.mq4   8 KB | 2,362 downloads
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