MMTT system

hi. i´m have being reading forexfactory threads for a long time, but this is my third post here.

i just want to post my system and see people reaction to it.

THE BASICS:

1- i use a channel created by two moving averages in the dailly channel as my first reference to take a trade. those 2 MA are 2period linear weighted MAs, one aply to high price and the other to low price.

2- when price go above the upper MA i´ll look for a sell. when price go bellow the lower MA i´ll look for a buy.

3-the entry signals are taken in the 5min charts by spoting higher lows and lower highs price´s formations.


i use a multitimeframe MA so i can see the dailly channel in the 5min chart.



and i use this indicator to spot higher lows and lower highs more easly

basicly this system is a countertrend trading system and a nonbrain trading system.

it´s called countertrend trading because i only trade retraces oF the current trend. of course some of those retracements in a small timeframe are in fact the continuation of the trend in a higher timeframe(TF) but anyway i trade retraces of the current 5min trend. so this is countertrend trading.

it is a nonbrainer system because basicly we don´t need to do any technical or fundamental analysis of the market to trade it. no S&R, no fibs, no pivots, no nothing of those things pros use and that make them richs... so with this system all you need to know is open a trade, set the SL, change it at any time and close a trade.


WHY COUNTERTREND???????
the aswer may not be very technical but is my opinion...
everytime a look at a chart i can´t tell if the existing trend will continue or not. i think no one can do it... it´s impossible to predict if a trend will continue or not.

BUT... i can tell you without a doubt that there will be a retrace on the price action, no metter how strong is the existing trend sooner or later there will be a retrace. i don´t know when, and i don´t know for how much pips, but i know it will happen. the problems is: HOW DO WE CATCH IThttp://forums.babypips.com/images/smilies/biggrin.gif

NOW THE SYSTEM:

this is a pure price action trading system... i just put a couple of indicators on the chart to give it some colour http://forums.babypips.com/images/smilies/biggrin.gif

there are no MA cross, no macd, no stochastics, no RSI... just your eyes and some guide lines.


for metatrader4 users i´ll recomend to use those 2 indicators posted above. they will make the simple even more simple

BBands Stops1.zip
MTF_Moving_Average.zip

i also recomend a broker with no sunday candle. Alpari.uk is the only one i know... probably there are more. you can do like me and keep the eyes on that broker platform and them trade in your own.


the settings for bbbandstop are: 10;1;1;1;1;10000 you can change the orange colour to red too.

the mtfmovingaverages settings are: first: 1440;3;2;2 colour blue the second: 1440;3;3;2 colour dark pink.


http://forums.babypips.com/images/st.../wol_error.gifThis image has been resized. Click this bar to view the full image. The original image is sized 1024x616 and weights 59KB.http://i842.photobucket.com/albums/z...ma22/fasdg.gif
your chart should look like this.

http://i842.photobucket.com/albums/z...ma22/fasdg.gif

the blue horizontal line is a dailly linear weightned Moving average with 2periods aply to high.

the pink horizontal line is a dailly linear weightned moving average with 2 periods aply to low.

the red dots and the green dots are a diferent representation of the normal BolingerBands with settings 10:1. the red dots appear when BB is pointing down the green dots appear when BB is pointing up. a easier way to look at a BB.

we will use those 2 horizontal lines as two different things: first they will be our support and resistance lines. second they will be our overbought and oversold zones.

so by the basics rules of trading we should look for a sell oportunity at a resistance line when price is overbought; that will be our blue line. and we should look for buy at a support line when price is oversold; that will be our pink line.


so when price touch or cross the pink line we will look for a buy setup, and when price touch or cross the blue line we will look for a sell setup. this is the first condition for having a setup: price must get out of the channel created by those 2 lines.

5MIN TIMEFRAME ENTRYS.

this is the timeframe i use. advantage: faster entrys with lowers SLs. disavantages: a lot of fakeouts and whipsaws. (there´s no perfection)

WHAT TO LOOK AT THE 5 MINS CHART.

all we want to see in the 5min chart is a price action pattern that is called higher low/ lower high (HL/LH)

this is something you can easly see in any timeframe and at any pair at any time.... unlless price is in consolidation and moving sideways. (those will be our worst nightmares)

http://forums.babypips.com/images/st.../wol_error.gifThis image has been resized. Click this bar to view the full image. The original image is sized 1024x616 and weights 67KB.http://i842.photobucket.com/albums/z...22/fasdg-2.gif
this is an egsample of the today eurusd chart. i had put all the HL and LH that happen today in eur usd. is easy to see them in this picture and understand how they look like. (most of the days it will not be that clear)

http://i842.photobucket.com/albums/z...22/fasdg-2.gif

so in this picture the setup we are looking for is a setup to go long (to buy), because price had went outside the channel by the pink line.

and the signal to buy (the oposite for sell) is the formation of an higher low in the price action.

to catch this higher low we use the dot colors. you can see after the new bottom the price went up (green dots) then price had retrace (red dots) and them price go up again (another green dot).

that´s the entry signal. a swing in colors of the dots (green, red, green) and most important a formation of a higher low.


so we enter the trade at the close of the candle with the new green dot (only at the close of the candle) and we place the SL at the bottom of the previous HL. in this case is bellow that hammer candle above the "higher low" words.


and that´s the easy part of this system: enter a trade.... now we need to see the hard part: minimize the losses and let profits run

first and most important: HOW TO CLOSE A LOSING TRADE

this will be hard to explain and maybe will be hard to understand by pictures and explanations but is very simple and all it takes is 4-5 experiences on your own to get it right.

http://forums.babypips.com/images/st.../wol_error.gifThis image has been resized. Click this bar to view the full image. The original image is sized 1024x616 and weights 64KB.http://i842.photobucket.com/albums/z...22/fasdg-3.gif

this is my gbpjpy 5m chart from yesterday. the red horizontal line is london open at 8am GMt time.

in this pair, following the rules, i took 3 trades. 2 losses and 1 winning.

first the rules to close a trade.

1- we open a trade in the 5min chart and we set the SL in the previous high or low.

2- we only move our SL when the dots in the 15min chart turns into our colour. (red to buy, green to sell) that means we open the trade in the 5min TF, but them we will track them in the 15min chart. so if price hit that new SL the trade will be closed.

3- when price go against us before the 15min dot change the colour we close the trade if the 5mins dot change the colour against us.

4-when we open the trade in the 5mins chart and the 15min dots is already in our colour.... we will probably lost... unless the 15min trend is already steady and clear we should avoid to enter this setupus.



ok!!! confused??? it tooks me 30mins to write this post...my brain is smokinghttp://forums.babypips.com/images/smilies/redface.gif

it was easier if i can do it in portuguesehttp://forums.babypips.com/images/smilies/biggrin.gif
i´ll post egsamples to make it more clear

http://i842.photobucket.com/albums/z...22/gsdaggg.gif
http://forums.babypips.com/images/st.../wol_error.gifThis image has been resized. Click this bar to view the full image. The original image is sized 1024x616 and weights 71KB.http://i842.photobucket.com/albums/z...22/fasdg-4.gif

this is gbpjpy yesterday. you can see the 3 trades i took.

1st one is a 7 pips loss in a trade with an original SL of 40 pips. that was a risk/reward ratio of 1:-0,17. that means if you risk had risk 1% of your account in this trade you would have a lost of 0,17%.... that´s losses control.

in the 1st trade price follow the direction of the 5mins dots until the 15mins dot change the collour. after the 15min dot change colour i forget about the 5min chart and i start to use the 15mins dots as my SLs. in this trade that SL cost me 7 pips.

___________________


in the second trade i lost 18 pips with a original SL og 35 pips. that was a 1:-0.5 rr ratio. in this trade the 15min dots were already in the same colour as the 5mins dots and i´ve never won one of those setups.

in this case i set my initial SL at the previous low and i´d close the trade when the 5mins dots changed colour again.

______________________

in the 3th trade i made 120 pips with a original SL of 30 pips. that was a 1:4 rr ratio trade.
in this case i use the previous low as initial SL and them all i´ve done was trailing the SL with the dots in 15 min chart.

IMPORTANT: why this low is a higher low? because the previous high is a higher high. that means if the previous high had made a lower high we should not consider this low as a higher low.

ok! i think i´ve covered everything you need to trade this system.

some more important rules/recomendations:

1-use a broker with no sunday candle

2-this works in london session, and it may works too in asian session but this one i don´t know.

3-i don´t open anymore trades after 4pm GMT time, for a lot of simple reasons, the most important is if you open a losing trade you´ll not have time to make the money back and if you open a winning trade it may last for hours and make you stay at the screen for more time than you want too.

4-forex is not a hobby!!! if you don´t have the time to do intraday trading this system is no good for you!!!

5-this works with a constant risk% of your account per trade. if you keep a constant pip value no metter what the pair and what the SL the results would be worst.

6-this will give you a lot of losses in a straight so keep your risk in a level that make you feel confortable with.

the possible returns with this system is bigger than the average...

risking 1% per trade and trading 8 pairs í made between 50-80% return per month in the last 5 months

so... no one had interest in this strat???

Hi,
Nice, simple strategy. Since when do you use it?

Brian

Me, I'm interested. Please go on.

Could it be, that the thread is in the wrong area - Trading Systems might be better - and more readers......?

Regards

Forex37

i´m using it for 6months in a live account.

and unfourtunelly i couldn´t post the thread in other place because i´m too new in this forum.

me and some other persons that trade this system use to go to a free chat room to trade together. i don´t know if i can post the link in here.

any way risking 1% per trade just today i made 7% returns on my account. monday and tuesday i made 4% in each day and yesterday i lost 4.5%.

those are the average of my results with this system. one losing day per week, and in average 3-4 % return per day. last week i made 14% profits just in 4 days...


i think i´ve posted everything needed to trade it in the first pages of this thread. but if there´s any question i´ll aswer.


as you may notice my english is weak, and i´m apologize for that

Which currency pairs do you follow?
It can be very good, if you can catch a bigger move with relative low risk.

gbpusd, gbpjpy, eurjpy, eurusd, usdchf, eurgbp, usdjpy, audusd

this system is not easy to aply when you trade 8 pairs at the same time, because it can make you a lot of straight losses.

like i said yesterday i had 11 straight losses in those 8 pairs... and i managed to loss only 4.5%.

today i made those 4.5% in just 1 trade.

if this system rules don´t are well aplyied with a good MM it can lead to some serious drawdown.

the system rules are easy to follow but trading multiple pairs can be very hard emotionally

I like the method, interesting.

Try adding a median line using applied_price 4 (H+L/2). Price seems to react to this line as well, breaks through & retests it.

Also try adding 10 period SMa of highs and 10 period SMA of Lows as a filter.

Your stoploss is other side of the 10 SMa High/Low, should be between 10-20 pips on average.

hmmm, doesn't look like such a bad system to me.

never try use the 10 period sma. but the median ma i use. just to visual aid