Part 2 EURUSD Trend magic System | Page 9 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Trend Magic Indi with Alert 20 replies

MTF Trend magic 6 replies

Trend Magic Email Alert Help 6 replies

Please help with Trend Magic indicator! 3 replies

Trading: Part Science and Part Art 28 replies

Attachments: Part 2 EURUSD Trend magic System
Exit Attachments

Part 2 EURUSD Trend magic System

  • #161
  • Oct 18, 2010 9:35am Oct 18, 2010 9:35am
Quoting KumoDragon
Do you think you could post some charts of your entries and why you took them? I would like to see.
Sure thing...attached is an hourly EUR/USD from Friday. I took the short signal from the very large inverted hammer (note TM is blue). The TM turned red afterwards (when it changed it only served to tell me to stay in the trade). I set the short at 1.40736, my first stop was set at 1.40171 (actually the FIRST stop was at the high of the previous candle) and again at 1.39210. I stepped away from my computer for a few hours, when I returned the EUR/USD had just formed a bullish inverted candle (very nice one). The decision was too easy, I didn't use TM's exit strategy (that would have cost me around 45 pips!), I set my stop at the high of the bullish candle and within 15 minutes the stop hit and I banked 202 pips! I hope this helps!
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 38 KB
  • #162
  • Oct 18, 2010 9:43am Oct 18, 2010 9:43am
Quoting Colostarr
Sure thing...attached is an hourly EUR/USD from Friday. I took the short signal from the very large inverted hammer (note TM is blue). The TM turned red afterwards (when it changed it only served to tell me to stay in the trade). I set the short at 1.40736, my first stop was set at 1.40171 (actually the FIRST stop was at the high of the previous candle) and again at 1.39210. I stepped away from my computer for a few hours, when I returned the EUR/USD had just formed a bullish inverted candle (very nice one). The decision was too easy, I didn't use...
Do you only trade the H1 chart?

I ask because I'm wondering if that would be a better idea for me. I'm trying out trendmagic because I'd like to learn a method that when I get up at 6 AM I can find 1-2 trade and stay in till 11 Am for the bigger parts of the US session.
  • #163
  • Oct 18, 2010 9:54am Oct 18, 2010 9:54am
Quoting KumoDragon
Do you only trade the H1 chart?

I ask because I'm wondering if that would be a better idea for me. I'm trying out trendmagic because I'd like to learn a method that when I get up at 6 AM I can find 1-2 trade and stay in till 11 Am for the bigger parts of the US session.
Normally I trade the 5 minute. This particular day the news that hit caused volatile movement. The 5M chart became too erratic to attempt a trade, so I switched to the hourly. At that point I was not concerned with TM, the very large bearish candle SCREAMED short entry (get a copy of Bill Williams book trading Chaos 2nd edition). The angulation formed from the alligators mouth had my mouth watering! Again the TM had NOT given a short signal, the hammer and alligator did! The TM changed color later and made me feel better about riding the wave and staying in the trade...I'm glad I did it was a good day! Most of the trades I make with TM are from the 5M chart though, you can scalp the crap even out of a ranging market! It's phenomenal! If you get a chance take a look at the Daily chart on the EUR/USD with a TM template...I am still waiting for a color change on that..VERY POWERFUL!
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd daily.gif Size: 18 KB
  • #164
  • Oct 18, 2010 1:02pm Oct 18, 2010 1:02pm
Quoting Colostarr
Normally I trade the 5 minute. This particular day the news that hit caused volatile movement. The 5M chart became too erratic to attempt a trade, so I switched to the hourly. At that point I was not concerned with TM, the very large bearish candle SCREAMED short entry (get a copy of Bill Williams book trading Chaos 2nd edition). The angulation formed from the alligators mouth had my mouth watering! Again the TM had NOT given a short signal, the hammer and alligator did! The TM changed color later and made me feel better about riding the wave and...
While reading through the whole thread and trying out the TM and BBMACD indicators on H4 and Daily time frames, I was wondering why no one mentioned trying this system on these timeframes and there it was on the last post this system looks very powerful on an eyeball backtest, however the repainting issue keeps coming back on this thread too... i would recommend everyone to demo forward test this to gain more comfort.

Just finished reading Michael covel's trend following and this systems seems to be in sync with the book and trend following.

My 2cents. Try this on higher timeframes and you can cut out all the noise such as economic news. However your money management and your account size should permit that.
  • #165
  • Oct 18, 2010 1:41pm Oct 18, 2010 1:41pm
Quoting premierpips
My 2cents. Try this on higher timeframes and you can cut out all the noise such as economic news. However your money management and your account size should permit that.
Trading it on a higher TF also requires patience which is a very difficult skill to master (speaking from experience). But yes, you are right. TM is very well suited for trend following.
If you don't risk, you don't ever have to lose.
  • #166
  • Oct 18, 2010 1:46pm Oct 18, 2010 1:46pm
Quoting bug
Trading it on a higher TF also requires patience which is a very difficult skill to master (speaking from experience). But yes, you are right. TM is very well suited for trend following.
well said i prefer to enter, set stops and close the trading terminal. i check my trades twice a day and get back to my real life...

i guess you need to give the trade a few days for it to bloom/start growing. otherwise, you might start doubting your trade in the initial few days...
  • #167
  • Oct 18, 2010 1:54pm Oct 18, 2010 1:54pm
Quoting premierpips
well said i prefer to enter, set stops and close the trading terminal. i check my trades twice a day and get back to my real life...

i guess you need to give the trade a few days for it to bloom/start growing. otherwise, you might start doubting your trade in the initial few days...
Yes, that is definitely the case for me. Recently I've started doing a lot more work on identifying and quantifying longer term trends. The fiber is especially well-suited for trend trading, as is obvious from the last few years of price data (leaving aside the QE spikes in Dec 08 and March 09). I still like intraday trading because that's just who I am but I am seriously considering opening up another account for trend trading.

BTW, I've also read Covel's book. It's not what you would expect from a book focused on trading, but is good at making the case for trading trends. I personally think it was a bit of an overkill in terms of repetition. I didn't like the condescending and somewhat callous tone either. From a pure practical perspective it's still good, though.
If you don't risk, you don't ever have to lose.
  • #168
  • Oct 18, 2010 2:18pm Oct 18, 2010 2:18pm
Quoting bug
Yes, that is definitely the case for me. Recently I've started doing a lot more work on identifying and quantifying longer term trends. The fiber is especially well-suited for trend trading, as is obvious from the last few years of price data (leaving aside the QE spikes in Dec 08 and March 09). I still like intraday trading because that's just who I am but I am seriously considering opening up another account for trend trading.

BTW, I've also read Covel's book. It's not what you would expect from a book focused on trading, but is good at making...
i agree. covel's book is a good read for someone who is already sold on trend following. if one is looking for a system, then they'll definitely not find it in the book. in fact, the kindle version of the book was offered for free on amazon. i guess there weren't many buyers before to sum up - i would vouch for trend following but probably not for the book.

good luck with the 'long term' account

on another note, ive seen a lot of threads here in the 'factory' about adding alerts to the TM indicator. has anyone come across one that works well?
  • #169
  • Oct 18, 2010 2:42pm Oct 18, 2010 2:42pm
Well, I had a bit better luck today. 2 Trades, -39 short Loss, +48 Long win.

The short could have been avoided had I just waited for the candle to close. The TM turned red and I got in before the candle closed, and then it of course turned back on me blue.

I got in the long when things were in color agreement and I saw a L/H/LH form. That entry was still a bit late, could have had 80, if I had got in at the optimal spot.

From there I just trailed it as per the first post.
  • #170
  • Oct 18, 2010 2:56pm Oct 18, 2010 2:56pm
Quoting KumoDragon
Well, I had a bit better luck today. 2 Trades, -39 short Loss, +48 Long win.
Not to preach or anything but I would remind you of what Indrek said a couple of posts back - enter with a solid stop loss, or, if the risk is too big, don't take the trade at all. That 39 pip loss could've been a 20 pip loss.
If you don't risk, you don't ever have to lose.
  • #171
  • Oct 18, 2010 3:16pm Oct 18, 2010 3:16pm
Quoting bug
Not to preach or anything but I would remind you of what Indrek said a couple of posts back - enter with a solid stop loss, or, if the risk is too big, don't take the trade at all. That 39 pip loss could've been a 20 pip loss.
Ya I know. At the time the last lower high looked a might too close.

I'm not used to trading methods that have such tight SL. A SL of 20 or less gets me starting to worry I'll get stopped out just by normal movment and have the trade go my way anyhow.

Do you generally find the last high before entry on the 5M holds up as a SL that doesn't get taken out on breath?

P.S. I don't mind good advice at all.
  • #172
  • Oct 18, 2010 4:34pm Oct 18, 2010 4:34pm
As per the TM and BB there was a potential short on the EU at 20:30, which is 3:30 in the afternoon here.

I saw it but ignored it because of the time of day.

Would anyone else who is trading this method have taken it, and why?
Attached Image (click to enlarge)
Click to Enlarge Name: eulpotential short.gif Size: 18 KB
  • #173
  • Oct 19, 2010 12:00am Oct 19, 2010 12:00am
I haven't had ANY re-painting issues, nor will I try to find any. Doing this creates doubt in the traders mind, and makes you second guess an entry! The TM is a moving average, and to my knowledge it WILL repaint while that candle is active. I have yet to see TM repaint a closed candle. While TM is a great system, there are other basic trading principles that everyone should ALWAYS apply, News, daily and weekly pivot points, hammers, inverted hammers, double tops, bear or Bull traps the list is endless. Don't become a slave to just ONE system. I found that TM augments other systems very nicely (as an example Bill Williams method "Trading Chaos", there is a thread in this forum that covers this method). Just don't loose sight or get "tunnel vision" for just one method! Be a smart trader and stick to basics first! Don't make a system harder than it needs to be. Just my 2 cents!

Quoting premierpips
While reading through the whole thread and trying out the TM and BBMACD indicators on H4 and Daily time frames, I was wondering why no one mentioned trying this system on these timeframes and there it was on the last post this system looks very powerful on an eyeball backtest, however the repainting issue keeps coming back on this thread too... i would recommend everyone to demo forward test this to gain more comfort.

Just finished reading Michael covel's trend following and this systems seems to be in sync with the book and trend following.

My...
  • #174
  • Edited 12:13am Oct 19, 2010 12:10am | Edited 12:13am
That was a BEAUTIFUL signal! You ignored it because you didn't stick to the systems most basic entry rule, when TM and BB change color at the same time it's an ENTRY. Because of that very basic and simple fact, I would have MOST definitely taken that signal! Who cares what time of day it was ? You need to keep it simple, TAKE AN ENTRY SIGNAL, set your stop loss and wait (PATIENCE!). As a general rule I almost always set a limit or stop 5 to 10 pips beyond my stop loss price. If the market is trending you'll make good on the signal, if it is ranging, hopefully you can recover your losses and then some. For future reference when TM gives you a signal TAKE IT! Hope this helps!

Edit: it looks to me from your chart that you ignored roughly a 60 pip move...knowing what you know now, would you have taken that signal ?

Quoting KumoDragon
As per the TM and BB there was a potential short on the EU at 20:30, which is 3:30 in the afternoon here.

I saw it but ignored it because of the time of day.

Would anyone else who is trading this method have taken it, and why?
  • #175
  • Edited 4:57am Oct 19, 2010 4:21am | Edited 4:57am
Hi

Are you trading today? My 1st positinon is bad on EURUSD -20 pip
http://kepfeltoltes.hu/101019/1_www....toltes.hu_.gif
  • #176
  • Oct 19, 2010 4:43am Oct 19, 2010 4:43am
Quoting dicsdob
Hi

Are you trading today? My 1st positinon is bad on EURUSD -20 pip
Might help if you show a chart and maybe get some advice.
  • #177
  • Oct 19, 2010 6:30am Oct 19, 2010 6:30am
Got up at 6 am 11:00, looks like EU has a lot of volatility on the 5M anyone know why?
  • #178
  • Oct 19, 2010 6:40am Oct 19, 2010 6:40am
China hiked rates. AUD/CAD and EUR/USD going crazy right now. Not recommended to enter for a while!

Quoting KumoDragon
Got up at 6 am 11:00, looks like EU has a lot of volatility on the 5M anyone know why?
  • #179
  • Oct 19, 2010 6:44am Oct 19, 2010 6:44am
"News that China's central bank is set to raise interest rates sent shockwaves around the currency markets Tuesday, with the U.S. dollar soaring while others, most notably the Australian dollar, fell hard. "

Incidentally the AUD is recovering...USD is still going down. I entered a sell signal on TM about 15 minutes before the news release. I have 40 pips locked in right now, waiting for more movement!
  • #180
  • Oct 19, 2010 6:49am Oct 19, 2010 6:49am
Quoting Colostarr
China hiked rates. AUD/CAD and EUR/USD going crazy right now. Not recommended to enter for a while!
Lol, too late +24 right now.
2 traders viewing now