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Tony's Two Candle trading system

  • #321
  • Edited 7:16am Jun 10, 2010 6:13am | Edited 7:16am
I observe further back for EU cross.... (Correction: EU not EJ)
If you enter a trade everytime an arrow appears on EJ H1, shooting for 10 pips and put SL on H/L candle with arrow, looks like you would won all the time.

(except for the trade with white circle.. which is ridiculous to enter a trade with that such tiny candle.... )

If you want to make 20 pips, just keep it after London open and before Asian starts.

Take a look....and please examine my sweetspots 10 pips levels on background.

Attached Image (click to enlarge)
Click to Enlarge Name: 2Candle-with-EJ_RSI5_2.jpg Size: 289 KB


Correction: EURUSD H1, FXPro Demo.
  • #322
  • Jun 10, 2010 6:21am Jun 10, 2010 6:21am
Quoting terminex
Is the arrow formed at the end of the candle?
What are the settings for the arrows?

thanks
For a big long Candle it seems the arrow formed up right on the same candle but for most candle is at candle closed.

Use the same setting Nightpiper use for EMA cross over signal, just set EMA1 = 1 and EMA 2 = 2.

Hope this helps...

Btw, I am on trade right now shooting for SHORT 20 pips... will see where it goes... It think it's going well because it's already pass 10 pips by now.

Update... Just closed with 20 pips as expected......
  • #323
  • Jun 10, 2010 6:39am Jun 10, 2010 6:39am
Quoting NiceGuy
For a big long Candle it seems the arrow formed up right on the same candle but for most candle is at candle closed.

Use the same setting Nightpiper use for EMA cross over signal, just set EMA1 = 1 and EMA 2 = 2.

Hope this helps...

Btw, I am on trade right now shooting for SHORT 20 pips... will see where it goes... It think it's going well because it's already pass 10 pips by now.

Update... Just closed with 20 pips as expected......
Do you mean like in the attached pic?
Attached Image
  • #324
  • Edited 7:10am Jun 10, 2010 6:48am | Edited 7:10am
Quoting terminex
Do you mean like in the attached pic?
Nope... I use the one on the attachment.

Really hope this strategy will go well in future.
Please test this one out guys... and share your result here....

Thanks

Attached File(s)
File Type: mq4 EMA Crossover Signal.mq4   4 KB | 655 downloads


NOTE : DAMN...that was EU not EJ on last post...... sorry for this stupid mistake... but I think it worked well too with EU ....
  • #325
  • Edited 7:18am Jun 10, 2010 7:05am | Edited 7:18am
This one is EJ....

For EJ, SL at H/L previous candle before candle with Arrow (or about 20-40 pips).
If we also shooting for 20 - 40 pips... tell me what you think....

Attached Image (click to enlarge)
Click to Enlarge Name: 2Candle-with-EJ_RSI5_2.jpg Size: 294 KB


EJ H1, FX Pro Demo.
  • #326
  • Jun 10, 2010 8:04am Jun 10, 2010 8:04am
nice work niceguy. My concern would be the SL at the PREVIOUS candle from the arrow (2x1hr candles could mount to a big loss). Still looks promising so I'll check it out. Did you decide which pair is best?
  • #327
  • Edited 10:34am Jun 10, 2010 8:29am | Edited 10:34am
Quoting kraven
nice work niceguy. My concern would be the SL at the PREVIOUS candle from the arrow (2x1hr candles could mount to a big loss). Still looks promising so I'll check it out. Did you decide which pair is best?
You are right Kraven...
Yes I'm concern with the SL too... but I think if we maintain a 90% of win like the way the chart shows to us above, we should give a bit room for SL. (I think this is where good experience on reading candle is come to play)

Honestly I am tired of reading people fighting over best R/R to use for a system. Seems so endless and so exhausting for me...

To avoid loosing big... I think we should just simply not entering trade if the arrow candle already move more than 50 pips (?) or whatever amount you cant accept losing , or enter it anyway with you own R/R SL.

Best Pair?

From my brief observation:
EU for 10 Pips
EJ for 20 Pips

Please test this, and for the moment lets' just forget adding extra indicator to this. Dont forget to share your result to benefit others....

  • #328
  • Jun 10, 2010 8:59am Jun 10, 2010 8:59am
posted this a while back, might work well with this
http://www.forexfactory.com/showpost...&postcount=274
Seek not to change the world; seek only to change your mind about the world
  • #329
  • Edited 11:16am Jun 10, 2010 10:55am | Edited 11:16am
Got people PM me asking why only shooting 10 - 20 pips.
Please keep it here guys...

Well, it is simply to keep what Tony proposing with the original strategy. This one supposed to be "Fast 10 -20 pips profits". Please read post #1st

I know some of the trades, especially the trades that goes along with the trends can be developed further.

So it's up to you....

Attached Image (click to enlarge)
Click to Enlarge Name: 2Candle-with-EJ_3.jpg Size: 212 KB


Marking the risky trades on chart with Red circle. Just using common sense here... If the price is already go too long in one move, it might not go further long.

Update: Just closed out 10 pips each with EJ and EU. The EJ trades is the one that shown on chart
  • #330
  • Edited 11:27am Jun 10, 2010 11:16am | Edited 11:27am
Just switched back on and had the E/J set up on the 1hr. Blue arrow under bar. Who'd have allowed +23pips then it crashed to a max loss of -50pips next candle (now) is coming down too.
The arrows may give a different perfect-no loss impression when you open the chart and apply, but live may be different. be cautious.

Time to call it a day +130pips. Will look into the EJ 1hr more tomorrow (all though Fridays are dodgey). Happy pips all.
  • #331
  • Jun 10, 2010 11:29am Jun 10, 2010 11:29am
Quoting kraven
Just switched back on and had the E/J set up on the 1hr. Blue arrow under bar. Who'd have allowed +23pips then it crashed to a max loss of -50pips next candle (now) is coming down too.
The arrows may give a different perfect-no loss impression when you open the chart and apply, but live may be different. be cautious.
Thanks kRaven... Yes Live would be so much different...
Not gona live until I am convinced enough with the system.

By the way... I dont have green arrow with EJ here

Attached Image (click to enlarge)
Click to Enlarge Name: 2Candle-with-EJ_4.jpg Size: 189 KB


must be the EU... nope I pass the green arrow for long on that one. It's too far away from the center (20 EMA).
  • #332
  • Jun 10, 2010 11:35am Jun 10, 2010 11:35am
Quoting kraven
Just switched back on and had the E/J set up on the 1hr. Blue arrow under bar. Who'd have allowed +23pips then it crashed to a max loss of -50pips next candle (now) is coming down too.
The arrows may give a different perfect-no loss impression when you open the chart and apply, but live may be different. be cautious.
yes the arrow repaint the next bar which we enter...so seeing the arrows in back test pretty much different from live.the reason is when arrow show up then the next bar turn againts us maybe around half of the signal bar we still see the arrow,but try refreshing it by moving it to other TF and back to our current TF.......arrow gone.unless current bar go back in the right direction then the arrow will show up again
Don't mind me.. i'm crazy
  • #333
  • Jun 10, 2010 11:39am Jun 10, 2010 11:39am
Not going with the latest signal for long on EU....

Attached Image (click to enlarge)
Click to Enlarge Name: 2Candle-with-EU_1.jpg Size: 201 KB
  • #334
  • Jun 10, 2010 12:25pm Jun 10, 2010 12:25pm
Going south with EU...

Attached Image (click to enlarge)
Click to Enlarge Name: 2Candle-with-EU_2.jpg Size: 208 KB


Yes I already know the arrow repaints.
That's the reason why I'm testing this.. to see how reliable the arrow is and find a way to take the advantage of it and to understand the weakness of it... I believe a good basic knowledge of candle movement patterns still required in every strategy...

If the arrow does not repaint... then I think we simply have a holy grail here...

Just test it and have fun with the process at the moment...

  • #335
  • Jun 10, 2010 12:40pm Jun 10, 2010 12:40pm
Arrows? Are you using Arrows/indicator/ea to show you entry? Thats not good.

In the same, this is the exact strategy I use, and have been using for 3 and a half years. It's basically a price action reversal system, using Dark Cloud, Pin Bars (a.k.a Hammers), & Engulfed candlestick formations. Not a complicated system at all, you just have to learn the basic of candlestick reversal patterns. No indicator/ea needed! The idea is to trade high contract position, with as little market exposure as possible. As I've always said, "its easier to make 10 pips than 100 pips"

You're on the right track, just lose the indicators.
  • #336
  • Jun 10, 2010 12:51pm Jun 10, 2010 12:51pm
Each to our own I suppose. I've tried candle patterns with only moderate success.

10pips can be as good as anything, it all depends on the consistancy of the win rate. Because if you have a 80-90% success rate, a good RR then you have enough faith to use large lotsizes.

Just had a last minute look at the EJ chart and the arrow was gone. But I agree with you Niceguy. Just cause it repaint doesn't make it useless, it just means back testing is useless.
  • #337
  • Jun 10, 2010 1:00pm Jun 10, 2010 1:00pm
Quoting Jhig
Arrows? Are you using Arrows/indicator/ea to show you entry? Thats not good.

In the same, this is the exact strategy I use, and have been using for 3 and a half years. It's basically a price action reversal system, using Dark Cloud, Pin Bars (a.k.a Hammers), & Engulfed candlestick formations. Not a complicated system at all, you just have to learn the basic of candlestick reversal patterns. No indicator/ea needed! The idea is to trade high contract position, with as little market exposure as possible. As I've always said, "its easier to make 10...
Thanks Jhig... You are the guy with trendline breakout trading system right?
I trade your system live and it works. But still need to learn much and still using a micro lots....

If this thing is live, I would only trade on top/ bottom of the trend as usual and make my 10 pips there...

Somebody come up with the idea of using the arrow.. so I test it to see how reliable it is...

Update: Last trade on EU, just burned good 30 pips...
  • #338
  • Jun 10, 2010 2:17pm Jun 10, 2010 2:17pm
anyone can tell me what bolliger band settings u guys are using?
  • #339
  • Jun 10, 2010 5:42pm Jun 10, 2010 5:42pm
Quoting Jhig
Arrows? Are you using Arrows/indicator/ea to show you entry? Thats not good.

In the same, this is the exact strategy I use, and have been using for 3 and a half years. It's basically a price action reversal system, using Dark Cloud, Pin Bars (a.k.a Hammers), & Engulfed candlestick formations. Not a complicated system at all, you just have to learn the basic of candlestick reversal patterns. No indicator/ea needed! The idea is to trade high contract position, with as little market exposure as possible. As I've always said, "its easier to make 10...
I second that.

Would be nice of Tony to drop in and say hi or something, don't you guys think? Anyways, thanks Tony for the system.

I just wanted to touch the issue of filtering for a sec. A lot of guys here are trying to come up with some sort of a filter to improve the hit rate. I just thought I'll share my idea as well.

From my experience, the best filter is the one that does not lag. Everything you put on your chart (adx, stochs, ma's, etc.) depends on the price itself, so how can it serve as a filter? So, what does not lag then? The price itself, nothing else. So, a good filter would be another timeframe, and only higher timeframe. You only look at lower timeframes to time your entry, and you look at higher timeframes to filter your set up.

Look at my screenshot. There's my H1 timeframe in the middle. Once I see a bullish setup for example (bear-bull-time to enter?) I immediately look at H4 and Daily (the two time frames on the bottom), if H4 is also looking bullish, I have green light, if it doesn't, I look at Daily, if Daily looks bullish, then I might consider taking this setup (though it will not be an A+ setup), then I look at 1min and 5min on the top, my timing time frames, and time my entry, they both have to start looking bullish as well.

This, in my humble opinion, is the best way to filter and time an entry. No need for anything else, just price itself. I do have stochs on the charts as you can see, but they are there mostly for fun, but if stochs are all UP on all timeframes, that adds to the confidence greatly. Some people trade multi-timeframe stochs with great success, but I still believe that price itself is the only real-time, non-lagging thing.
Attached Image (click to enlarge)
Click to Enlarge Name: eurjpymulty.jpg Size: 235 KB
Trax Tibidax Tibidox...
  • #340
  • Jun 10, 2010 6:13pm Jun 10, 2010 6:13pm
After one harvests the pips from the second candle, do the same rules apply for the next candle if it opens 5 pips in your favor (ie let it run)?
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