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The Steps System

  • #1
  • First Post: May 30, 2010 3:54am May 30, 2010 3:54am
Dear all,

This is a new system that I have been thinking of but it is still under testing. It depends entirely on price action. It is similar to fractals in someways and different in others

Rules

1- The bearish turning point occurs when there is a pattern with the highest high in the middle and ONE lower high on each side.
2- The bullish turning point occurs when there is a pattern with the lowest low in the middle and ONE higher low on each side.
3- The length of LAST candle's body (the candle on the RIGHT side) >= half of the length of the whole candle
4- Go long if there is "bullish turning point" after the close of the right candle
5- Go short if there is "bearish turning point" after the close of the right candle
6- Close each trade after the close of the first candle following the "right candle"
7- Stop loss is 5 pips above the high of the turning point when going bearish, or 5 pips below the low of the turning point when going bullish
8- Use daily or 4hr timeframe (preferable)
Make It Simple !
  • #2
  • May 30, 2010 6:19am May 30, 2010 6:19am
Here is an example:

Trade the candle following the Right Candle:
Attached Image
Make It Simple !
  • #3
  • Edited 6:58am May 30, 2010 6:28am | Edited 6:58am
Here are two examples:

The first one does not fulfill the criteria - even though the trade is successful - because the body of the right candle < half of the total candle length
Attached Images
Make It Simple !
  • #4
  • May 30, 2010 6:33am May 30, 2010 6:33am
Ashraf.

Could you post more examples and trades..

Dutchsignals
  • #5
  • May 30, 2010 6:37am May 30, 2010 6:37am
Quoting dutchsignals
Ashraf.

Could you post more examples and trades..

Dutchsignals
My pleasure
Make It Simple !
  • #6
  • May 30, 2010 6:40am May 30, 2010 6:40am
Here is a bearish trade:
Attached Image
Make It Simple !
  • #7
  • May 30, 2010 6:45am May 30, 2010 6:45am
Here is another one but this one has failed:
Attached Image
Make It Simple !
  • #8
  • May 30, 2010 7:06am May 30, 2010 7:06am
Another successful bearish trade:
Attached Image
Make It Simple !
  • #9
  • May 30, 2010 7:12am May 30, 2010 7:12am
And here is another failed bearish trade:
Attached Image
Make It Simple !
  • #10
  • Jun 2, 2010 6:50pm Jun 2, 2010 6:50pm
Ash,

Nice thread...may I ask how long you have traded this way, and profitability results?

Thanks,
BC
  • #11
  • Jun 5, 2010 2:57am Jun 5, 2010 2:57am
Quoting Bobcat2
Ash,

Nice thread...may I ask how long you have traded this way, and profitability results?

Thanks,
BC
Thanks...I started very recently using this strategy (less than a couple of weeks ago). So I need to wait for maybe a couple of months before I could say whether it is profitable or not
Make It Simple !
  • #12
  • Jun 6, 2010 4:08am Jun 6, 2010 4:08am
it should work well.. keep on working.. u can add 200 SMA as a filter let me know how it goes
  • #13
  • Jul 14, 2010 7:53pm Jul 14, 2010 7:53pm
I read 3 of your threads / trading methods with interest. Just that which one your would recommend based on successful rate?
tpat
  • #14
  • Jul 17, 2010 8:46am Jul 17, 2010 8:46am
Quoting tradpat
I read 3 of your threads / trading methods with interest. Just that which one your would recommend based on successful rate?
tpat
My favorite is "A simple strategy with no indicators" then this one. All of those strategies are based entirely on price action and rely on no indicator
Make It Simple !
  • #15
  • Jul 17, 2010 4:24pm Jul 17, 2010 4:24pm
Hi,

This is nice but such strategy with tight stop require trending market & you catch trend in starting blocks. Problem here when market is in ranging mode you get stopped too many times, like in asia so you end up loosing you pshychological edge.

May be you should add an indicator & rules to detect/ skip range.

Regards
13
Brokers are angels
  • #16
  • Aug 31, 2010 1:24am Aug 31, 2010 1:24am
I have gone through your other methods too and I must say their simplicity amazes me. Great work. I do not use indicators either and trade with momentum and as candles develop.
This method -- too -- seems really good.

Are you still using this method? how have been the results?

Also, one of the images you posted do not fall under the rules you mentioned. Rule# 3 to be precise "The length of LAST candle's body (the candle on the RIGHT side) >= half of the length of the whole candle"

In the image, the length of the right candle is not greater than or equal to length of the whole candle. Is this still a valid candle?
Pls correct me if I am wrong?

Also Ashraf999, could you pls tell where you from?

---------
Ali
Attached Image
  • #17
  • Aug 31, 2010 2:38am Aug 31, 2010 2:38am
Quoting pipnation
I have gone through your other methods too and I must say their simplicity amazes me. Great work. I do not use indicators either and trade with momentum and as candles develop.
This method -- too -- seems really good.

Are you still using this method? how have been the results?

Also, one of the images you posted do not fall under the rules you mentioned. Rule# 3 to be precise "The length of LAST candle's body (the candle on the RIGHT side) >= half of the length of the whole candle"

In the image, the length of the right candle is not...

sadly ashraf seems to have dissapeared off the face of this forum. mostly likely cause: this system not working too well.
  • #18
  • Aug 31, 2010 2:58am Aug 31, 2010 2:58am
for pipnation:
Quoting ashraf999
Here are two examples:

The first one does not fulfill the criteria - even though the trade is successful - because the body of the right candle < half of the total candle length
  • #19
  • Aug 31, 2010 3:46am Aug 31, 2010 3:46am
D3trax: Oops, my bad! Thank u for pointing out.

whatfx: This method seems promising to me. I have quickly gone through EUR/USD 4H chart and spotted some trades. Some good, some not so good.
i'll test the system on demo for next few weeks and see how it turns out.
  • #20
  • Nov 11, 2010 6:51am Nov 11, 2010 6:51am
Quoting pipnation
d3trax: Oops, my bad! Thank u for pointing out.

whatfx: This method seems promising to me. I have quickly gone through eur/usd 4h chart and spotted some trades. Some good, some not so good.
I'll test the system on demo for next few weeks and see how it turns out.
what were the results of your test ?
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