Trading profitably using Recent Strength

IDEAS THAT WORK BEST WHEN

AUTOMATED

What am starting here is an attempt towards automating a system that I believe has come close to achieving adaptive capabilities, capable of withstanding any market conditions & still remain profitable.

I have already shared an EA which I believe has a decent outlook profit wise. Am looking to combine this EA with a proven market filter, to achieve better results.

This thread will heavily rely on a thread started by David aka Hanover who is the developer of the Recent Strength indicator. http://www.forexfactory.com/showthread.php?t=163158

Introduction

I have already shared a video explaining how the FXI-RSIScalp indicator & FXI-RSIScalpEA works. Both of these tools were shared freely by Jason fielder .I happened to have come across a filter that works best with this system.

This strategy is now being traded manually with greater success using a “market fell filter” Recent Strength developed by David aka Hanover, And to their honour,step forward and take a warm round of applause .

Before I explain how am tweaking this system & using Recent Strength as the overall filter, I will let you watch 2 videos explaining how; FXI-RSIScalp indicator works & how this indicator have been automated to this EA FXI-RSIScalpEA.

The first video explains how FXI-RSIScalp indicator works

Inserted Video

Second video explains how FXI-RSIScalpEA works.

Inserted Video

I have NEVER used this EA, I have shared it as a reference point to programmers who may have interest in this idea.

To achieve even better results. Am humbly welcoming MT4 coders to contribute their wisdom towards combining “the power” of above system and a “Market fell filter” Recent strength indicator.


Am welcoming traders to READ FIRST this thread before attempting to trade a strategy I have described on the attached document. http://www.forexfactory.com/showthread.php?t=163158

Find attached tools & a description of a strategy.

FXI-RSIScalp indicator & tools
FXI-RSIScalpEA
System description document.

Hi Kilbed83, I'd like to test this out but I can't get the indicator to work. I installed the runtimes in my ibfx 4 folder then installed the indicator as usual, but when I try to attach it to a chart nothing happens.

Please let me know if you have any tips or ideas how I can make it work.

Thanks,

Cory

Hi

I have updated post #1 Let me know if its now working

Cheers

The following are pairs to focus on; EURUSD,GBPUSD,USDJPY,AUDUSD,USDCHF,EURGBP,USDCAD,NZDUSD,GBPJPY,EURJPY,EURCHF,GBPCHF
The beauty of Recent Strength let's you trade more pairs with confidence.

The first screen-shot is showing a EURCHF sell trade that was triggered today by RSIScalpSignal indicator, on the 1H chart.The second screen-shot showing RS confirmation before a trade is entered.

If you have this RSIScalpSignal indicator already running on your charts ,check to see if this signal was triggered


Benji

This trade was triggered hours ago on 1H chart, as shown below.

Across all 12 pairs this strategy focuses on, this trade was confirmed by Recent strength during the last 24Hrs of trading.Trading this strategy requires you have at least 24 Charts open (12 1H & 12 4H) at any given time for possible RSIScalpsignal signal alerts,And for quick RS confirmations, its necessary to have it running throughout on a separate chart.


Benji

I think this thread should be in the "Trading Systems" forum, it would get more exposure overthere.

Your contribution received with many thanks.

Yes, am also looking to eventually have this thread in the Trading System forums,but before then this strategy needs to further prove itself to this community over a long period of time that it's "Got the Teeth" to withstand any market condition and still remain profitable. It is for this reason it's needs to be fully automated,& put on forwarding-testing before it can achieve a "Solid system" status

My contribution therefore is to give excellent ideas to programmers to code, in the long run we will have combined excellent ideas with excellent coding, towards achieving a common goal that is to profit from the market.Even better contributing positively to this community.

Benji

This NZDUSD trade is happening this very moment on 4H chart. Has already moved to breakeven +2. See screenshots below.
This trade has ended this week profitably,having all trades triggered ending into profit & one trade let to run over the weekend, to rocking in more profit


Benji

What is the secret to making a lot of money in forex?
- First it is to identify the currency that has the biggest chance to appreciate.
- Second it is to identify the currency that has the biggest chance to depreciate.
- Third is to match those two.

First problem. Did the US Dollar appreciate or depreciate last week? Most likely we wouldn't be able to answer that question, because it could've appreciated against Australian Dollar and Japanese Yen, but it could've depreciated against Canadian Dollar and British Pound.

Second problem. If we already know the past by having data for last week, and we still can't say which forex currency was the strongest and which forex currency was the weakest, then how in the world can we even try to predict the future that has no data yet?

Solution. Recent strength can't predict the future but at least it can help us know the past, across all timeframes. Therefore the challenge is finding how to use this data and profit.

I sought wisdom from David who is amongst the biggest contributors to this community,who is also the developer of RS. This is what he commented on his RS thread “Traders either trade renewed strength, or temporary weakness."Renewed strength" usually results in a breakout-type trading style, while "temporary weakness" is pullbacks.

Toward heading to his advice I came up with this strategy that could attempt to capture both "Renewed strength" & "temporary weakness".If you notice the above screenshots all trades were taken on pullbacks, maybe next week we might see a good example of “breakout type style”

Benji

This is a EURJPY breakout type trade which happened few hrs ago.See below Screenshots.

Benji.

Below are screenshots showing GBPUSD trade,triggered today.These RSIScalpsignals may be triggered at different times depending on your broker trading time. Am currently using GoMarkets (GMT+2) as my preferred broker.

Benji

This USDCAD trade happened few hrs ago on 1H chart. This is one of those trade exited at breakeven +2.

Who said 2 pips is not profit .

Cheers

Hi There. Interesting. Very interesting. I was wondering on the same issues a couple of days back. I recently funded my live fx a/c and started small trades. Eventually I realized that I was missing a very basic fundamental of the market. The ccy co-relation.
The solution to the first problem : Not for the week but a day and the lower tfs is there. Second : It works in the present tense also. But the trading itself is quite manual and I should say the results are nothing like you can imagine. Great way to catch the current momentum.
BTW, I did not figure out where the rsi scalper system is located. May be I over looked and will see properly again. You may direct me there anyway. Also will check the trades u posted. I am new here in the forum. I noticed the threads run into 4 digit pages. Quite a lot and says about the quality of the forum too. I have checked David's (Hanover) indicator posts. Quite a coding he's done. Great Stuff.
I will get back to you again tomorrow and we'll discuss further on this. Keep up the good work. Nice quote u have. Here's a similar one. ' Aim for the stars, even if you miss, you'll at least land on the moon.'

McNish,

Welcome to FF community,a place where learning continues.

Find more learning from these post below.

http://www.forexfactory.com/showthre...91#post4837291
http://www.forexfactory.com/showthre...80#post4837380

On post #1 I have posted a description of the scalping strategy am focusing on here.On the same document i have explained how am using RSIScalpsignal indicator together with RS to profit from the market.

Benji

Hello Ben,
I read you two posts. Also very true that the RS indi is a very data intensive and sensitive one. I loaded it but the terminal hung a couple of times. But I have seen it in action on my machine when I ran just this one indi on the terminal and no other app at all on my machine. But that is a very rare occurrence. Usually there are more than plenty apps running at the same time.
However, and this may sound as an overstatement coming from me as I don't have any experience coding mt4 indi's, David could make an attempt at fine tuning the code such that it's not so resource intensive. I say this because I have seen a very similar indicator, or shall I say tool (it's an MT4 coded indicator too) in action without the intensity and machine load as that of RS. In fact, it's THE TOOL for any fx trader worth his money. And it's more in the form of a GUI than and indicator hence I prefer calling it a tool. You are on good rappo with David thus you may convey this to him personally.
About the query. I loaded the RSI scalp indicator. Now, u suggest that the it works best with H1 or H4 tf's. I agree. I checked on lower tf's and it was not that effective. But I'm used to working on the lower tf's. So how do I make it work on the H1 or H4 tf while I'm myself in the lower, say 5m tf? And that goes for all my charts. They are all in either 15m or 5m tf's. How do I set it to go off and give me signal only for H1 or H4 while I myself am in 15m or 5m tf?
Please guide me here. Regarding the tool I mentioned. I'm pretty new to the forum and I don't mean to break any rules. I wish to share this tool with the fellow members of FF but I can't seem to do it the clean way as maybe sharing a link or e-mail could be banned.
Dear moderator, I know this post will be monitored and as you have read this, please find a way out for me. It is not my tool neither a tool of any fellow members of FF. But like Cobra here said,

http://www.forexfactory.com/showthre...47#post2351647

Sincerely a FF member.
Cheers !!!

Hi McNish, first of all the recent strength indicator works great on both machines I run it on (one is at my work and isn't that fast), so the problem might be on your end. Hanover (David) is a very professional programmer and I've never had a problem with any of his indicators, so chances are it is pretty efficient.

As far as the "tool" you are trying to share, which I am assuming is THV or something similar, it sounds completely irrelevant to this thread. If you want to talk about a different system or tool, it is really rude to do it in a thread for a separate topic. I'm not trying to be mean, but because you said you are new I wanted to let you know common courtesy is to open your own thread or comment in the thread of that indicator, and realize that people who want it will look there.

Thanks and good luck to you in your trading journey.

Cory

Hello Cory,
I knew I would be doing something wrong somewhere. I appreciate u directing me to the right place. I will find such a place eventually. However, I was looking up Ben's system and the tool I talked about has a relevance to his system. Thus my discussion is not completely out of order. Still I'll find a better place to do it. And like I mentioned, it's not from any member of FF. In fact, just yesterday, I downloaded the THV system and was learning on it. Nonetheless, thanks for reply.
Cheers, Manish.

The screenshots below are showing a GBPJPY pair trade setup. This is the first loss of the week.

Loosing is also apart of the game. Therefore money management is very important.Infact a good money management strategy has the potential to amplify a good system, for overall better results.

Hello Ben,
Can U please clarify the query I put to you last time. I'll repeat it here.
I loaded the RSI scalp indicator. Now, u suggest that the it works best with H1 or H4 tf's. I agree. I checked on lower tf's and it was not that effective. But I'm used to working on the lower tf's. So how do I make it work on the H1 or H4 tf while I'm myself in the lower, say 5m tf? And that goes for all my charts. They are all in either 15m or 5m tf's. How do I set it to go off and give me signal only for H1 or H4 while I myself am in 15m or 5m tf?
TY, McNish.

Different systems use different strategies to profit from the market.The system am using here works best on 1H and 4H timeframes as described on a document on post #1. I have NOT tested this system on lower timeframes. Its also good to note different systems use different timeframes.This strategy just happens to work best on 1H and 4h timeframes. Choice of a timeframe depends on how best a given strategy can perform.

Given the variables this strategy uses, It would be pointless for me to force it to work on lower timeframes i.e 1m,5m,15m, or longer timeframes like Daily, weekly or monthly.

Alternatively, you can research further with these tools and find out what can work on lower timeframe.The main goal is to profit from this market,you are welcome to use whatever tools you may come across. If you find something that works,Use it!! the market will reward you .

Benji.