Dear Teb, i like your system but maybe it would help people a lot more if you could show entries you take on both charts (5 min, 30 min) as i think pictures speak louder than words.
[quote=TEB63;3605304]Its hard not to win pips with this system ... if you do MTFs
This is one of the systems I use (a lot)
here it is an 30 min & 5 min charts
its hard not to make pips with this system.
I use 5 ema and 12 ema
(but if you like use 5 & 8 or 5 & 10 ema it doesn't really matter)
MTF is the point (Multi time frames)
I use the 20 RSI at 50
(if you want a letter win rate put 45 and 55 on the higher chart RSI )
Hi Teb, what do u mean by better win rate (I suppose) put 45 and 55 on the higher chart RSI? What do u mean by that? I am applying it to the 4 hr and 1 hr time frame due to my work. Thank you
[quote=freedomsg;3637904Hi Teb, what do u mean by better win rate (I suppose) put 45 and 55 on the higher chart RSI? What do u mean by that? I am applying it to the 4 hr and 1 hr time frame due to my work. Thank you[/quote]
I will take a stab at answering this....I think what Teb is saying is let the RSI break the 45 line (for shorting)(rather than the 50 line) on the higher time frame.
This will show that the currency is truely in a downtrend
(obviously the opposite is true for bull trend ...breaking the 55)
Currently on the 4 hour EURGBP we have the RSI just toying with the 50 line....but if it breaks the 45 line...well we will indeed be in business in a resumption of the downtrend (see image)
I too often trade the 4 hour - 1 hour....(although I then refine the entry on the 5 minute
My standard disclaimer is....Teb is the guru of this method...but I thought I would attempt a response
Thanks Pgpb. What is yr TP and Sl on the 4 hr/ 1 hr tf? Is there any indicator that show the average ADR of the day? I am in at uj at 1.5352 and it seem like not going anywhere. Thanks
Thanks Pgpb. What is yr TP and Sl on the 4 hr/ 1 hr tf? Is there any indicator that show the average ADR of the day? I am in at uj at 1.5352 and it seem like not going anywhere. Thanks
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I use the attached ADR indicator....I got it from another thread on FF
As to SL and TP.....it is pretty much up to you....and something that requires your own discretion....I know that Teb talks about trading multiple lots.....taking profit on the first one quite early and letting the other run
IMHO this is a momentum stratagy.....if price goes in our direction it is going to go....so I like to keep stops relatively tight....but I also like to win larger than I lose......I have heard it said that money management is the Holy Grail of trading....something I am slowly getting my head around
Regarding your USDJPY trade....I wish you luck. I would not have traded that pair because it looks like it is ranging on the 4 hour...but I hope it goes your way
One thing that I do (and this is perhaps veering away from Tebs 30 min 5 minute stratagy) is I think hard which pair I will trade the 4 hour one hour stratagy....and one of the first things I will do is look whether the pair is trending or not on the 4 hour.....for instance the USDCAD has a nice trend down.....so I would look to take short trades on that
Using 5min/1min, 2 lots, and 10 pip SL, and using discretion only with respect to exit.. ie.. staying with 2 lots and not using 1 out at 10 etc., my results so far..
32 trades
27 wins
Net pips = 167.5
Most consecutive wins 9
I'm using 5/8 cross and both RSI's below or above 50.. that's it.
Excellent system TEB!!
"I know how hard it is for you to put food on your family." George W. Bush
I use the attached ADR indicator....I got it from another thread on FF
As to SL and TP.....it is pretty much up to you....and something that requires your own discretion....I know that Teb talks about trading multiple lots.....taking profit on the first one quite early and letting the other run
IMHO this is a momentum stratagy.....if price goes in our direction it is going to go....so I like to keep stops relatively tight....but I also like to win larger than I lose......I have heard it said that money management is the Holy Grail of trading....something...
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Ya.. u r right ... i need luck actually. Well sl hit. Lick my wound and go to bed. Singapore time 23 36. Another lesson learned. Thanks pgpb
Using 5min/1min, 2 lots, and 10 pip SL, and using discretion only with respect to exit.. ie.. staying with 2 lots and not using 1 out at 10 etc., my results so far..
32 trades
27 wins
Net pips = 167.5
Most consecutive wins 9
I'm using 5/8 cross and both RSI's below or above 50.. that's it.
Excellent system TEB!!
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So you are entering mechanically, but using discretion / price action to exit?
Hi pgpb, what does all the numbers and colors in the adr means? thank u
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If you set the ATR indicator to 5 and 25
ATR (average trading range) of last 5 candles is higher than the ATR of the previous 25 candles, it simply means that trading activity has increased. If the ATR indicator is reading red (rather than green) it means the ATR of the last 5 candles is NOT greater than the previous 25 candles...which means trading activity is down. You could use this indicator as a method for deciding whether or not to jump in. The indicator also shows how much room the currency pair has to move. It calculates the average daily range....and if the pair has moved a lot in the day already....then it will show a very small (or negative it the pair has moved more than the daily range)
......BUT I caution you to get to excited about this....it is ONLY an indicator....price action is where it is at....reading bars and candles. (I do like the part that shows how much room the pair has to move...but I do not get too hung up on the ATR reading
(I have now exhausted my knowledge of this indicator )
So you are entering mechanically, but using discretion / price action to exit?
Basically, the reverse of the entry/exit rules?
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Yes David.
My experience trading various short term systems has not been good with respect to winning percentage or pips based on using money management techniques that take a lot off the table at 10 pips and allow the other to do what it is going to do etc.
Using a 5 min/1min TF, I have found that I can usually garner at least 5 pips per trade with about 75-80% accuracy consistently.
10-12 trades a day (NY session) with 2 lots nets me a decent return.
"I know how hard it is for you to put food on your family." George W. Bush
Using 5min/1min, 2 lots, and 10 pip SL, and using discretion only with respect to exit.. ie.. staying with 2 lots and not using 1 out at 10 etc., my results so far..
32 trades
27 wins
Net pips = 167.5
Most consecutive wins 9
I'm using 5/8 cross and both RSI's below or above 50.. that's it.
My experience trading various short term systems has not been good with respect to winning percentage or pips based on using money management techniques that take a lot off the table at 10 pips and allow the other to do what it is going to do etc.
Using a 5 min/1min TF, I have found that I can usually garner at least 5 pips per trade with about 75-80% accuracy consistently.
10-12 trades a day (NY session) with 2 lots nets me a decent return.
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Hi Marco,
Can you explain your entry rules? Do you enter at market on cross of 5/8 EMA or do you prefer pullback to 8 EMA or some other entry rule to achieve your returns? Appreciate you sharing your experience with this strategy.
I focus on the 5 minute chart, watching to see when the 5/8 cross occurs and making sure, for example, if the cross is down, that the RSI is below 50%.
I then use the 1 minute chart for entry at market, if likewise, the 5/8 has crossed or is crossing down, and RSI is below 50%.
I also make sure price action is not near a pivot point, or strong support at entry in the case of a short position.
I have a 10 pip stop, and allow the trade to play out.
Usually, when the 5/8 and RSI are lined up on both charts, i will get a minimum of 5 pips, and often, price will take off a bit and it is not uncommon to get 10-15 pips or more.
Since I know I will have 10 or so trades before the day is over, I'm not looking for a big "kill" here, and I am quite glad to cash out with 5 or so for the moment.
And if I'm up 5 pips or more, I don't allow price to whip back through and take me out for a loss.
And FWIW, the 8 period moving average is a SMA (close) and not EMA.
Do I cash out frequently and miss some bigger moves.. yes.
But I trade 2 full lots and a few pips here and there at about 75-80% play well for me.
"I know how hard it is for you to put food on your family." George W. Bush
If you set the ATR indicator to 5 and 25
[left]ATR (average trading range) of last 5 candles is higher than the ATR of the previous 25 candles, it simply[font=Times-Roman][size=3][color=#ff6600][font=Times-Roman]
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Hi Pgpb, thank you for yr time and willing to share yr knowledge with me. I appreciate it. How many candles are u looking at when u are loking at the 4 hr TF. It may paint to u differently if the numbers of candles we looking at are different. Thanks
