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Price Action Trading with Indicators! The Freebie System

  • #4,701
  • Edited 2:08pm Aug 19, 2011 1:48pm | Edited 2:08pm
Quoting DrDave
Yeah, just got a bit of a spike below it.

But then H1 made it though the rally, and like I told you yesterday, H4 was next to rally. So did you go long yet on H4, using H1 for entry? Or even using M30 with a BOLOSO long.

I finally installed an ADR indicator that draws LINES on the price window for where the ADR high and low are. Now I have NO EXCUSE for not taking them into account. LOL

I put on both 7 and 14 period.

DrDave
Nopes. No smaller tf trades for me today. My weekly goal was done on tuesday so I would have been lookin for D1 only for longer trades. The majors look a bit messy now with the contradicting zzdots, so I have stayed out of the game today. Took USD/CHF short though from D1 just a while a go. Actually all the swissies look pretty good now.

Added: Whar to choose? This is a good example of the potential use of FA I think. To find a currency which is the weakest against swissy. My FA project has been on hold a while (to be able to make a profit with forex in general), but I think that now might be appropriate time to concentrate on that one.
  • #4,702
  • Aug 20, 2011 2:31am Aug 20, 2011 2:31am
Quoting fxtrain
I know now is not the best time to trade, but the setup looks good. Correct if I am wrong. Is this a good setup?


Thanks. Many pips to all of yall,
Looks good to me.
  • #4,703
  • Aug 20, 2011 3:22am Aug 20, 2011 3:22am
Quoting jibjib210
We probley have different time zones? I matched my time zone to London time to match Paulus' charts.

I took the trade when the heiken ashi closed green.
Yes I noticed yours closed green, probably a different close price on that candle to mine which made it go green. I would also say though that Paulus only trades in the main session times of London and New York.
  • #4,704
  • Aug 20, 2011 1:12pm Aug 20, 2011 1:12pm
Ok, I said I was going to post this so here it is, as complete as I can make it. If you have questions after reading it, read it again and look at the charts, especially Paulus' posts. If you still have questions or think something in the rules is wrong, I got this all from him, and if he says I got something wrong, I'll fix it. Note that he said he did occasionally take a trade that did not fit the rules completely. Also he said he "grades" the trades as an A, B, or C trade, which I don't understand. Also you might consider not taking some trades if the Daily Range has moved too far, just like Dredd says. If there is anyone here trading Paulus' rules and making money, please PM me.

RULES:
1. Uses zz3semafor for trend determined by the last 3, but only if there are at least 2 more dots after it. If only 1 dot, then trend is considered to be still in the previous direction.

1a. Open new trades only during London hours.

1b. M5 TF only.

(Long/Buy trades)
2. If more than 2 dots after the 3, the last low dot (HL) must be higher than the previous low for a setup, otherwise wait.

Trigger:
3a. If the last HL is between 2 cam/pivot lines, and within a 5th, or 20% of the distance from the the low line to high, then when the next HA turns red to green, including the HL candle itself, buy on open of next bar.

3b. if the last HL is more than 20% above the next lower cam/pivot line, then any higher cam line becomes the test line. On any bar where HA turns green and either:
1) the open (regular candles) is below the test line and the close is above it, or
2) the tail is below and open & close are both above it, or
3) the tail is within 20% above the test line,
buy on open of next bar.

3c. If the bar where HA turns green is above the highest cam line (H5), then it must touch (within 5 pips) the line for an entry signal or the same rules as 3b1 and 3b2.

4a. Place SL 1 pip below the HL.

(reverse all conditions for Short/Sell trades)

5. If distance to the next higher cam/pivot line is greater than 3x risk, then the target is 3x risk. If the distance is less than 1x risk, or above highest cam line then target is 1x risk. Otherwise, the target is the next higher cam/pivot line.

6. Close any open trades 3 hours after London close or if any trade hits 1:1 profit before London close.
  • #4,705
  • Aug 20, 2011 11:12pm Aug 20, 2011 11:12pm
Quoting Whistlepips
Ive been thinking should I trade against the yellow dot or not as that red arrow in your picture, but havent had time to analyse it further. You cant backtest it properly because the dots repaint.
Yes, you can backtest it, but you're right, that you can't just look back and decide if you would take the trade. If you run the Strategy Tester in Visual mode, you can see exactly where the dots are in "real" time, and yes, they do change so that needs to be taken into account when making the trading decisions. You can't take a trade Now based on what the dots Will Be after they stop changing.
  • #4,706
  • Aug 21, 2011 1:02am Aug 21, 2011 1:02am
http://www.youtube.com/watch?v=VA-Qt5rwKCg&feature=related

Still LOVING MY GOLD TRADES! thought i would show the HATERS SOME love? lmao
  • #4,707
  • Aug 21, 2011 3:11am Aug 21, 2011 3:11am
Quoting ericjschroed
Yes, you can backtest it, but you're right, that you can't just look back and decide if you would take the trade. If you run the Strategy Tester in Visual mode, you can see exactly where the dots are in "real" time, and yes, they do change so that needs to be taken into account when making the trading decisions. You can't take a trade Now based on what the dots Will Be after they stop changing.
Yea. You are right and I have done that, but takes some time by it. Not so fast than going through charts would be if there wasnt that repaint issue.
  • #4,708
  • Aug 21, 2011 1:55pm Aug 21, 2011 1:55pm
Quoting Whistlepips
Yea. You are right and I have done that, but takes some time by it. Not so fast than going through charts would be if there wasnt that repaint issue.
Yes, and I have just proven again that backtesting on a 4 digit broker is 10x faster than on a 5 digit broker. I still have one account that is 4 but they are getting hard to find. 5 is bad enough but I've heard some are 6! right now it takes me 2 hours to run a one week backtest on my 5 digit, so 6 would be 20 hours! I can only hope that in MT5 there is some option to pick how many digits to use. And it would sure be nice to be able to advance 1 bar at a time like in ForexTester (which unfortunately requires Pascal coded indis and EAs) and then choose to continue by pips.
  • #4,709
  • Aug 21, 2011 7:36pm Aug 21, 2011 7:36pm
Quoting ohammond
Yes I noticed yours closed green, probably a different close price on that candle to mine which made it go green. I would also say though that Paulus only trades in the main session times of London and New York.
Yes I understand that, trade when the market is most volatile. Though I took that trade at 3:50 am my time which was 50 mins after London opened. It was a good trade I guess I just got unlucky.
  • #4,710
  • Aug 21, 2011 7:55pm Aug 21, 2011 7:55pm
Quoting jibjib210
Yes I understand that, trade when the market is most volatile. Though I took that trade at 3:50 am my time which was 50 mins after London opened. It was a good trade I guess I just got unlucky.
Well then something is definitely wrong, the trade on my chart would have to have been taken at 3:50 am GMT and as you trade with IBFX they are also set to GMT so it was actually taken 4 hours before London opened, I can't see anywhere else on that chart, the same patterns after London opened.
  • #4,711
  • Aug 21, 2011 8:15pm Aug 21, 2011 8:15pm
Quoting ohammond
Well then something is definitely wrong, the trade on my chart would have to have been taken at 3:50 am GMT and as you trade with IBFX they are also set to GMT so it was actually taken 4 hours before London opened, I can't see anywhere else on that chart, the same patterns after London opened.
O wait no nvm it was 3:50 am London time so that trade did not occur when London was open. My mistake.

Just sold USD/CHF long.
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  • #4,712
  • Aug 22, 2011 1:14am Aug 22, 2011 1:14am
USD/CHF hit SL missed my TP by 5 pips. Happend 2 trades in a row when I tried to go long.

Am I doing somthing wrong? I dont set TP very far either only 1:3 R&R.
  • #4,713
  • Aug 22, 2011 1:31am Aug 22, 2011 1:31am
Quoting jibjib210
USD/CHF hit SL missed my TP by 5 pips. Happend 2 trades in a row when I tried to go long.

Am I doing somthing wrong? I dont set TP very far either only 1:3 R&R.
Firstly, going by the chart you went short not long, another thing is 1:3 is very big, if it went 1:2 I would have moved the stop loss to 1:1 and then seen what happened. At least move your stop to break even you should never let a winning trade turn into a loser. Yes give it room but at least try to get 1:1 return.
  • #4,714
  • Aug 22, 2011 1:32am Aug 22, 2011 1:32am
Quoting ohammond
Firstly, going by the chart you went short not long, another thing is 1:3 is very big, if it went 1:2 I would have moved the stop loss to 1:1 and then seen what happened. At least move your stop to break even you should never let a winning trade turn into a loser. Yes give it room but at least try to get 1:1 return.
Ok will keep that in mind. That just kills my day. Went from having 10% ROC to -5%
  • #4,715
  • Aug 22, 2011 1:48am Aug 22, 2011 1:48am
Quoting jibjib210
Ok will keep that in mind. That just kills my day. Went from having 10% ROC to -5%
Read through Dred's posts about his trades, you will see he always protects his profit when he can.
  • #4,716
  • Aug 22, 2011 1:58am Aug 22, 2011 1:58am
Quoting ohammond
Read through Dred's posts about his trades, you will see he always protects his profit when he can.
Yea but i was reading Paulus' style of trading and he said never move your TP and SL.
  • #4,717
  • Aug 22, 2011 2:19am Aug 22, 2011 2:19am
Quoting jibjib210
Yea but i was reading Paulus' style of trading and he said never move your TP and SL.
Yes I know he does, thats all well and good, but you should always go for at least 1:1. I have never seen the point of being - as you said yourself - 1:2 up and then to a minus, especially at this time of day when markets are opening and the first orders of the day are going in, you never know which way its going to fly so why risk it.
  • #4,718
  • Aug 22, 2011 2:22am Aug 22, 2011 2:22am
Quoting jibjib210
Yea but i was reading Paulus' style of trading and he said never move your TP and SL.
And also forgot to say, again Paulus wouldn't have been in that trade because he starts trading at 8am London time which was only 20 minutes ago.
  • #4,719
  • Aug 22, 2011 4:03am Aug 22, 2011 4:03am
Quoting jibjib210
Yea but i was reading Paulus' style of trading and he said never move your TP and SL.
If I'm not mistaken, Paulus looks at all the major pairs, and maybe some others. So he has so many charts to check, I think it is probably a matter of what is practical. It is not practical both to keep looking for new setups and to babysit an open position. It's also less stress if you just "set-and forget".

DrDave
To free Gazans of Hamas, use whatever it takes.
  • #4,720
  • Aug 22, 2011 1:47pm Aug 22, 2011 1:47pm
2 More trades 2 More Losses

Any thoughts on the trades?
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