Owl Main System

Indicators:
- Heiken Ashi Moving Average (HAMA)
- T3 Moving Average with T3 period 14 to filter whipsaw
- Round numbers as they form support and resistance levels, also help filtering (you don't enter right below them for a long trade or above for short, you wait them break first).
- Market info (daily high/low, range, candle clock, spread)

Timeframe:
Probably can use any, I personally use H4, H1 and M15, depens on if I like to sit in front of charts all day or I have something else do to. Mostly I babysit my trades, so M15 keeps me entertained enough and I even don't look H1 or H4 for direction, because if intraday trend changes direction, it first appears in smaller timeframes, not larger ones.

Entry and exit:
Probably charts explain best, but 1 thing - don't doubt using BE+1 around 25 pips, it might hit SL (yes, annoying), but you can enter again if charts say it's still going where we thaught it would:

The most important part was left out.

It's because I don't use certain fixed SL, my gut feeling and observation tell me the best one at the moment, sometimes it's only 10 pips, other times 35 pips.

For EUR/USD, GBP/USD, USD/JPY 25 - 35 should do well in M15 if there ain't sudden noise or unexpected spike and max 50 for EUR/JPY and GBP/JPY. Larger than 50 pip SL-s say there is something wrong with your choice of entry points.

And aslo indicators, so you don't have to go look for them:

Thanks for sharing everything you have said make sense I will be paper trading monday

Thanks for posting this, Swamp Owl. This is a very, very simple and straightforward system that really appears to work well. I look forward to testing it next week.

Swamp Owl, Thanks for the system, hope you continue to post some of your trades durning the week..

All the best from Ireland

Rebel.

As I was away from the computer, I missed the first long entry of the night on the EUR/JPY. So I entered on a long break of the pullback candle. I entered at 112.49, and have TPs set at +25, +75, and +125. SL will move to BE+1 at the +25 level.

Very nice, Tommy C, let's hope it works out, I'm long too.

Personally I wouldn't have entered where you did, thin market now and .00 and .50 are the areas EJ likes to hoover around.

I prefer to enter ASAP as trade is valid by the rules but as long as no candle has closed on the other side of T3, entering can be considered. Or adding more positions if other(s) are BE-protected already.


This EJ trade I entered little early.
For very newbie traders it's ofcourse NOT ADVISED thing to do and I'm bad example myself now entering only with HAMA signal and not waiting confirmation, but I explain why I did it:

- it's YEN weakness.
It was all over on AUDJPY, GBPJPY, USDJPY etc charts and I already had entered UJ by all my rules.
There are 2 currencies on pair (surprise!) and if you are sure that one of them is weakest one at the table this moment, other one of that pair isn't (EUR was going up against GBP and USD, EURGBP and EURUSD both up), it's just logical entry.

Again - if you are total newbie, don't make exceptions until you know basics of forex.

Anyway, my trades tonight (I might exit them soon):





Edit: because I go to sleep, I'm closed: 90 pips EJ and 44 pips UJ. Nice start for a week.

Good luck and green pips!

I did get into that trade a little late, but I have hit +25, and have closed 40% of my position. SL is now at BE+1, so I am in a free trade now.

Update: Price came down and stopped out the rest at +1. Oh well. If I hadn't missed the first entry, I would have had a lot more. Still, +25 is better than a sharp stick in the eye.

I can definitely relate to your story. I spent years experimenting with different trading ideas and getting absolutely horrible results. For some strange reason, I would get major trading ideas after I would suffer major losses. That is the only thing that kept me going really. Somehow, the pain of a loss would kick my brain into hyperspeed and I would come up with some incredible ideas. After my third year of trading, I finally found a system that is profitable, it has been an incredible journey!!! If I had taken those same losses in a demo account, I don't think I would have progressed at all.

Swamp Owl,

Thanks for sharing your system. Looking forward to getting to know how the pieces all fit together. Do you prefer a single TP or multiple TPs as per Tommy C's offering?

Thanks,
BC

Well, I missed the earliest entry opportunity into the EJ long, but it looks like it might be setting up for a short in the near future....

Yes, there are many pieces, to cover all would end up a book, but who needs or reads ANOTHER trading book?

On a pair I start with one position and trade max 3 pairs at the time, but if those trades taken are @BE already, I add positions on pullbacks later.
Going in with several pos in one pair once (at the beginning) might end up with several losses too in this moody market, so I find eliminateing that chance less stressful.
Example:
enter EJ long 110.10, SL @BE around 110.35, pullback occure around 110.50 round level and I see HAMA and T3 doing good, EUR not showing much weakness (and maybe Dow going up), I buy above 110.50 more, expecting at least 111.
I also exit second (third) trades earlier, as first is nice and safe anyway.

Nice thread Owl ! Please keep posting your trades and explanations, it's great !

Nice simple system with not a whole lot of indicators. Several rather small live test trades have gone well.

Hi again!

I did little HAMA modification just to separate HAMA "candles" better, using not very zoomed charts like I do, it gives more clear picture of what's going on and also helps with the rule:
- don't trade almost flat HAMA with thin "candles", that don't want to grow little longer with next candle opening (very low volume - between NY close and Tokyo opening, bank holidays etc).

Maybe ADX can also help you out (Average Directional Index - you find it on your MT4, leave default settings), it will quantify a trend's strength regardless of whether it is up or down and with very low volume ADX falls.
It's best to trade when it's over 30 and it's not advised to trade at all when it falls below 18, it's dead market, no trending and any noise can wipe you out.

There is the same trade on EU with the hammer pullback but I don't know if it's gonna work out the configuration is not as not as nice as on EJ

This moment I wouldn't (and I don't) take this EU trade, not much movement on market, it's just sitting there, new candles can't close above previous ones.

There be better trades during London.

5 min charts provide several opportunities, once the trend is in place (hama same color for the last 4-5 bars minimum, xpma above hama for longs and xpma below for shorts ) trades can be taken on pullbacks to hama/xpma. the pullback/bounce is stronger if the xpma and hama are overlapping. the second trade would have been a loser, the other would have banked some pips.

ps: i cut the price and time by mistake on the screenshit, for those interested this is a screenshot of the euro/usd june 1st/2nd.