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ALF revisited - simple, effective daytrading

  • #1,041
  • Jun 30, 2010 12:40am Jun 30, 2010 12:40am
Hi GEOFFREY62, here it is the indi...

ServerUang
Attached File(s)
File Type: mq4 Profit_Loss_Info v.1-mod.mq4   6 KB | 644 downloads
  • #1,042
  • Jun 30, 2010 8:33am Jun 30, 2010 8:33am
Look at this indicator.
Attached Image (click to enlarge)
Click to Enlarge Name: 88.gif Size: 19 KB
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File Type: ex4 EntryExit.ex4   4 KB | 492 downloads
  • #1,043
  • Jun 30, 2010 9:38am Jun 30, 2010 9:38am
A question for the 15M ALF traders.....

I'm finding that I'm killing myself and letting profits turn into small profits or even losers sometimes. I had like three trades in two days that if I had just set a TP of 20, I would have hit it, before my SL which is also 20.

Today I'm trying to let a trade get to 20 and lock that in with postive SL and if it keeps going great, if it doesn't I have 20.

Twice today it went to 20, but not quite far enough for me to lock it in with a postive SL. (At ibfx, has to be 3 pips from price, so +23) Luckily both times since I couldn't lock it in I just got out with about 15 each time.

Anyways........ so my question.

Are the 15M ALF traders finding that 20 pips is consistently hit often? I'm thinking I may do better just setting a tp of 20 pips, instead of trying to hit home runs every time, if ALF on the 15M has lots of 20 pip winners.
  • #1,044
  • Jun 30, 2010 9:55am Jun 30, 2010 9:55am
Quoting KumoDragon
A question for the 15M ALF traders.....

I'm finding that I'm killing myself and letting profits turn into small profits or even losers sometimes. I had like three trades in two days that if I had just set a TP of 20, I would have hit it, before my SL which is also 20.

Today I'm trying to let a trade get to 20 and lock that in with postive SL and if it keeps going great, if it doesn't I have 20.

Twice today it went to 20, but not quite far enough for me to lock it in with a postive SL. (At ibfx, has to be 3 pips from price, so +23) Luckily...
Hi Kumo

Your question is a very good one....and I do not see it discussed often on FF....it really is a question of money management......I am not sure if I have the answer, but I do know that my winners need to be larger than my losers......so I always try to have larger winners than losers...but if I have a 20 pip stop loss .....how often can I get a 30 pip winner...I have adapted ALF with a system I use to trade in the direction of the trend......so I only take ALF trades in the direction of the trend.......and ....I only trade currencies that have a trend formed on the 4 hour
My favorite trades are those that go into profit right away.....but very often I will see a trade go against me by 10 or 15 pips
I don't have the answer to your question....but I do think your question is a good one

PGPB
  • #1,045
  • Jun 30, 2010 10:05am Jun 30, 2010 10:05am
Quoting pgpb
Hi Kumo

Your question is a very good one....and I do not see it discussed often on FF....it really is a question of money management......I am not sure if I have the answer, but I do know that my winners need to be larger than my losers......so I always try to have larger winners than losers...but if I have a 20 pip stop loss .....how often can I get a 30 pip winner...I have adapted ALF with a system I use to trade in the direction of the trend......so I only take ALF trades in the direction of the trend.......and ....I only trade currencies that...
Ya, that's the krux of the problem. Sure if I get a whole lot of 20 pip winners vs 20 pip losers, no problem. But, If I could find a way to get the big runners it would make up for more of the losers and make for a better overall method.

BUT, if I hold on for the big runners I'm in danger of counter movement not being just being a small retrace and taking me out.

I'm finding the posive exit part of trading with ALF very iffy.

A candle turns opposite color and you get out, sure you've got small loss or small profit, but sometimes its just tottally reverses and goes way in your favor.

If you use the line it can play just past it and go way in your favor.

I guess I'm trying to find the best way to determine when to get out of a trade wether it's in profit or in loss.
  • #1,046
  • Edited 10:15am Jun 30, 2010 10:15am | Edited 10:15am
Quoting KumoDragon
Ya, that's the krux of the problem. Sure if I get a whole lot of 20 pip winners vs 20 pip losers, no problem. But, If I could find a way to get the big runners it would make up for more of the losers and make for a better overall method.

BUT, if I hold on for the big runners I'm in danger of counter movement not being just being a small retrace and taking me out.

.
Trade two lots....the first lot you take the 20 pips (or what ever you can get) ....the other lot you move your stop to break even and let it run.
  • #1,047
  • Jun 30, 2010 10:27am Jun 30, 2010 10:27am
Quoting pgpb
Trade two lots....the first lot you take the 20 pips (or what ever you can get) ....the other lot you move your stop to break even and let it run.
Ya I thought about that, but uuurgh I hate doing that. I'm more of a one trade a time guy.

And then if the initial entry goes south, thats two trades I have to try and close quick.

I'll think about it, maybe the only way to go.
  • #1,048
  • Jun 30, 2010 10:47am Jun 30, 2010 10:47am
Quoting KumoDragon
Ya I thought about that, but uuurgh I hate doing that. I'm more of a one trade a time guy.

And then if the initial entry goes south, thats two trades I have to try and close quick.

I'll think about it, maybe the only way to go.
Step one....find a solution that is profitable
Step two ....increase your trade size
Step three ...quit your day job (I am not there yet by the way)

You can close a portion of your trade.....I do not know how.....anyone???
That way you place one trade.....and then close half of it when you have hit your first take profit
  • #1,049
  • Jun 30, 2010 12:32pm Jun 30, 2010 12:32pm
Quoting Pippopotamus
not generous.
As your chart clearly shows - you closed most of the trades prematurely. Otherwise it would be a good month. So, do not blame the month, blame your trade management.
  • #1,050
  • Jun 30, 2010 12:56pm Jun 30, 2010 12:56pm
Quoting Pippopotamus
Is based on stats derived from hundreds of trades across 6 currency pairs. However, I will take into consideration what you have written.
H4 definitely needs bigger stops. I am a H4 trader myself and I have also tested ALF. I found out that it does not work on higher timeframes because it is reacting too fast. Supertrend is a perfect choice for H4 instead. It does not stop you out so easily.
  • #1,051
  • Jun 30, 2010 4:56pm Jun 30, 2010 4:56pm
for months along with Price Channel. I abandoned ST for ALF. Back testing proved ALF better. My stops are where they should be. Hundreds of trades over 6 currency pairs are the basis for their placement.
Vincit qui se vincit.
  • #1,052
  • Jun 30, 2010 5:54pm Jun 30, 2010 5:54pm
Quoting Pippopotamus
for months along with Price Channel. I abandoned ST for ALF. Back testing proved ALF better. My stops are where they should be. Hundreds of trades over 6 currency pairs are the basis for their placement.

Pippo:

would you be so kind to share your data for UJ pair? This is the only pair I trade manually with Alf.

thanks,
jacob
  • #1,053
  • Jun 30, 2010 7:13pm Jun 30, 2010 7:13pm
Quoting losingtrades
Pippo:

would you be so kind to share your data for UJ pair? This is the only pair I trade manually with Alf.

thanks,
jacob
I do not trade Usd/Jpy. Easy enough to check. On H4 charts only 10-15 trades/month. Start research Jan. 2009. That is where my studies start from.
Vincit qui se vincit.
  • #1,054
  • Jun 30, 2010 8:06pm Jun 30, 2010 8:06pm
Quoting pgpb
Step one....find a solution that is profitable
Step two ....increase your trade size
Step three ...quit your day job (I am not there yet by the way)

You can close a portion of your trade.....I do not know how.....anyone???
That way you place one trade.....and then close half of it when you have hit your first take profit
5 wins in a row today using ALF to scalp in the 15M for a total of 59 pips.

Made up for my losses I incurred by holding on to long and trying to hit home runs every trade.

As long as I don't let winners turn into losers I think I'll do good with ALF scalping.

The entries from from a strong cross or open past the ALF line seem to be almost always good for at least a few pips.

I think manual trade managment will be key for this to be profitable, no strict +20 or -20 risk/reward ratio here. Just eyeing it and taking profit or cutting losers short as per judgement.
  • #1,055
  • Jun 30, 2010 10:01pm Jun 30, 2010 10:01pm
Quoting pgpb
...
You can close a portion of your trade.....I do not know how.....anyone???
That way you place one trade.....and then close half of it when you have hit your first take profit
I can do it on my IBFX demo & live accounts by reducing the "volume:" figure after double clicking to close a trade.
Then amend the original/remaining trade SL to BE+1or 4.

But still not sure about the logic of having twice the risk on the table to start with, for what could be basicly a half trade.

I dont usually split my trades. Either close the lot early or set SL to BE+1or4 for the whole trade.
ie bank it, then "NEXT" or set SL in the green, then its "free" - well not really.

cheers scalpz
Target 2 : Stoploss in the green
  • #1,056
  • Jun 30, 2010 10:09pm Jun 30, 2010 10:09pm
Quoting KumoDragon
5 wins in a row today using ALF to scalp in the 15M for a total of 59 pips.

Made up for my losses I incurred by holding on to long and trying to hit home runs every trade.

As long as I don't let winners turn into losers I think I'll do good with ALF scalping.

The entries from from a strong cross or open past the ALF line seem to be almost always good for at least a few pips.

I think manual trade managment will be key for this to be profitable, no strict +20 or -20 risk/reward ratio here. Just eyeing it and taking profit or cutting losers...

K:

I agree...this alf is excellent for short term trades, smaller pip gains. i am using 5M on UJ...studying chart hard and making observations and notes so i can learn to predict what will happen.

your 5 wins for 59 pips are small wins each but big in total. It is not about making a trade for 100 pips...how often does that occur...never for me.

but, small wins add up and a pair can become somewhat more predictable for short time frames and periods by studying the patterns over time.

  • #1,057
  • Jun 30, 2010 11:31pm Jun 30, 2010 11:31pm
Quoting losingtrades
K:

I agree...this alf is excellent for short term trades, smaller pip gains. i am using 5M on UJ...studying chart hard and making observations and notes so i can learn to predict what will happen.

your 5 wins for 59 pips are small wins each but big in total. It is not about making a trade for 100 pips...how often does that occur...never for me.

but, small wins add up and a pair can become somewhat more predictable for short time frames and periods by studying the patterns over time.


You are getting there my buddy...
Master Reversal Candles and Divergence...
After that 100 pips a day is not impossible anymore.

But the question is... Do you really need that much?
Why risk more?


  • #1,058
  • Jun 30, 2010 11:50pm Jun 30, 2010 11:50pm
This one might help you to squeeze more pips with alf...
Attached Image (click to enlarge)
Click to Enlarge Name: Alf_EU_16.jpg Size: 110 KB


Banked 26 pips on tokyo today...
  • #1,059
  • Jul 1, 2010 12:38am Jul 1, 2010 12:38am
Hi everyone, I'm new to this post but have been read some of it. 1st thank you for this system I have made some pips with it. I Like. What I have done that LOOKS good is overlayed the Hieken Ashly and set the chart on fore ground along with a 21 Ema, smooth, shift 1, median Price.Then add t/l's as a guide on the 15M. stop set just below t/l. I scalp a little between swings when the setup allows. Ive attached my template for anyone interested.
Attached Image (click to enlarge)
Click to Enlarge Name: alf.gif Size: 49 KB
Attached File(s)
File Type: tpl alf.tpl   4 KB | 424 downloads
  • #1,060
  • Jul 1, 2010 3:25am Jul 1, 2010 3:25am
I am not sure how to interpret this, but when the GREEN arrow appears, the PA is over the ALF around the HIGH of the "candle A," then it suddenly reversed.

The RED arrow appears when the "Candle B" is about at its lowest.
Attached Image (click to enlarge)
Click to Enlarge Name: forex.jpg Size: 88 KB
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