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Attachments: PTT Method (Profitable Trend Trading) in Forex
Exit Attachments

PTT Method (Profitable Trend Trading) in Forex

Candlestick trailing stop in ea is causing stops to get hit larger than 30 pips. Which most likely means initial stoploss is being set correctly at 30 pips, but then candlestick is overriding it sometimes widening it. Run a backtest and notice if you have stoplosses of more than 30 pips, which shows you the error pretty quickly.

Kelvin, thanks for sharing this nice simple method.
Hi Kelvin and thanks for the insights

How you deal with the situation whereby you set a sell stop which gets activated, and then stopped out (either same day / later day). I understand that you then establish a new sell /stop at the same level after being stopped out.

But what happens when a stop is activated during the day, and price then moves back and through the original entry price in the same day, and continues in the originally expected direction? Would you just have to miss that entry, or do you check to see what price is doing during the day so that you can re-enter a new sell /stop order at the same level?

Appreciate your comments on this.

Regards

Greetings Kelvin,


After lurking in FF for months, your thread with your ideas attract me!

I do have some queries for you. No issue on the entries but on the exit.

A way to Exit the Trade.
I use the previous bars high (in a down trend) and the previous bars low (in an uptrend) to exit all the trades I have open in a particular run.

Appreciate your help to explain more clearly? I cannot make out..... previous bars high in a down trend.

Thanks Kelvin for your willingness to share.
Quoting snowhyte

Greetings Kelvin,


After lurking in FF for months, your thread with your ideas attract me!

I do have some queries for you. No issue on the entries but on the exit.

A way to Exit the Trade.
I use the previous bars high (in a down trend) and the previous bars low (in an uptrend) to exit all the trades I have open in a particular run.

Appreciate your help to explain more clearly? I cannot make out..... previous bars high in a down trend.

Thanks...
Thanks Kelvin for the great thread. I am subscribed.
To answer the question snowhyte, I believe Kelvin's just saying that the exit is taking when your stop is hit. You've been moving that stop with the trend each day so that would give a good indication to exit the trade.

I hope that's right Kelvin.
Great.
I get your idea.
Thank you

[quote=KelvinM;4898092]Hello Anton, thank you for your contribution. Your analysis is right on, and you have described well the typical method of placing a stop loss.
I don't think that this has been asked yet.
How do you deal with multiple IB's if the original order was not hit?
For example:
1) On Monday you put in a sell stop on an IB.
2) price goes up on Tue and Wed with another IB

Do you cancel Mondays order that was not hit or leave it in place?

Thanks!
Attached Image (click to enlarge)
Click to Enlarge Name: multiple ib's.gif Size: 22 KB
I think A/D divergence would be a fine complement of the system. Can't find mine. Can someone upload a A/D indicator showing divergence?
Quoting DaTrader
I don't think that this has been asked yet.
How do you deal with multiple IB's if the original order was not hit?
For example:
1) On Monday you put in a sell stop on an IB.
2) price goes up on Tue and Wed with another IB

Do you cancel Mondays order that was not hit or leave it in place?

Thanks!
I'm going to go ahead and answer my own question here: Post #29

Quote
Hello Bobcat2, thank you for your comment today. I leave my orders in for 1 week and then reassess the market conditions after that time.

The reason I do that is because in any trend you have several days that the market is counter-trend trading, and then resumes the original trend direction. We do not want to miss the resuming of the trend, and an Inside Bar order can remain a good place to get back in the trend for a week or so of the market running counter-trend.

I've attached an example of what I mean. The red arrow down is an Inside Bar...
Attached Image (click to enlarge)
Click to Enlarge Name: Multiple IBs.jpg Size: 139 KB
Question on the sunday IB's. How should the inside bars on Sunday on IBFX be handled. There only a couple of hours in duration so naturally they're going to be small. Do we treat them as their own bar or add them in with Friday's?

Thanks
Quoting spyderman
Question on the sunday IB's. How should the inside bars on Sunday on IBFX be handled. There only a couple of hours in duration so naturally they're going to be small. Do we treat them as their own bar or add them in with Friday's?

Thanks
Read post #10 again
Quoting finnsol
Read post #10 again
Yes, I've read the post and I understand he says "including sunday bars" but I was looking for clarification that he "meant" include that as an ib even if it is only a two hour bar. It seems to me in that case that you would always have an ib on Sunday, especially with the low volatility.
Hi kevin,

Amazing thread. I know you trade off daily charts, however i like to trade off 4 hour and 1 hour charts. what size stop loss would you recomend trading your strategy off these charts?

Thank you,

Bren
Really Great thread KelvinM.

I'm already familiar with many of the trend trading concepts you bring up. I read them in Ed Ponsi's book: Forex patterns and probabilities. He pretty much has the exact mindset as you on trend trading.

His methodology however was just using a set of moving averages that had to line up in sequence and have 10 daily bars not cross over them, and and entry upon retrace, so I found I rarely if ever got an entry and gave up on the whole idea as I could not find a different methodology with the same mindset until now.

For a while I've been looking for a trading method that I can just check at the start of the next daily candle and ride out a strong trend, as from many failed attempts at live intra day trading with various methods I've come to the conclusion I suck at day trading and am mentally more suited for getting in and holding and locking in profit when and if it comes...............also getting up at 5-7 AM and either not finding a trade or not doing well in a trade sucks really hard. And I've often thought how great it would be if I could get a good method working that I could just check the charts every new daily candle open.

Anyway......................Here are a few questions that I hope you will answer for me:

Questions for you and your thread:
1. Will you use an a week old IB as a stop trade, if price is still in it’s range and you haven’t previously, and everything still lines up with the rules?
2. How many times will you reenter after -30 (3 strikes and you’re out rule? Or just keep entering if price stays around there?)
3. After stop how soon do you place next stop trade……wait till next day? Or as soon as stopped out?
4. How many pips close to 50 ema to consider it a bounce ? do you just eye it?
5. Do you trade this with all pairs or just a few of them?
6. Are there some pairs you purposely avoid and if so why?
7. 30 pip stop for all pairs? Or is it a function of ATR??? I can see AU working pretty good with a 30 pip stop after an IB, but some pairs like GJ would probably stop out 30 almost every time?
8. 30 Pip stop + spread????
9. That 6000 pip gain, did you actually achieve that live? Or was that just a back test scenario?
10. How long have you been trading this live and how have you been doing with the current rule set?
happy to read your thread..make sense for everybody..keep it up..
Hello all,

This thread really made sense to me. After 3+ years of wandering around the FX world and trying different EA's and manual strategies, I'm hoping this is the one that'll stick. Most things I've read and learned about trading seemed to always point to trend trading as the real deal, but high profit scalpers or easy money made through EA's and such are just too tempting to ignore and have kept me distracted from a good, slower, trend method till now.

Anyway, here is my first trade. It looks to meet all conditions, obvious downtrend (well below 50ema), recent IB, and it even bounced off of 50ema (8/4). I just put my sell-stop at the low of the IB with a SL of 30. So far price made one fakeout and moved down and back through my SL, so I just put a new, exactly same sell-stop with the same values. Hope I'm doing this right. Good luck to all that are attempting this PTT method, too.

alto
Attached Image (click to enlarge)
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nice one alto, we'll see how it works out.
the ea has this pending trade, however other than that it's worthless. It's already been taking longs on GJ this week, so even the basic 'trade with the trend' rule isn't being followed.
Would love if a quality coder could tackle this simple method.
  • Post #77
  • Quote
  • Edited Aug 31, 2011 2:32am Aug 30, 2011 6:04pm | Edited Aug 31, 2011 2:32am
Just wanting to guage opinion. I have attached a screenshot for gbpchf. An inside bar has formed. The general trend for quite some time has been downwards and although price has currently broken through the ema this did happen once before around begining April and yet the trend resumed. Using this method would this IB be one that I should be trading or because the ema has been crossed should I wait for a recross and another ib.

Paul
Attached Image (click to enlarge)
Click to Enlarge Name: inside bar forming.JPG Size: 137 KB
Quoting alto
Hello all,

This thread really made sense to me. After 3+ years of wandering around the FX world and trying different EA's and manual strategies, I'm hoping this is the one that'll stick. Most things I've read and learned about trading seemed to always point to trend trading as the real deal, but high profit scalpers or easy money made through EA's and such are just too tempting to ignore and have kept me distracted from a good, slower, trend method till now.

Anyway, here is my first trade. It looks to meet all conditions, obvious downtrend (well...
I'm also watching this trade and have my pending stop loss set on today's low.

I just can't bring myself to count that 2 hour mini IB from Sunday evening.
Quoting paulbt38
Just wanting to guage opinion. I have attached a screenshot for gbpchf. An inside bar has formed. The general trend for quite some time has been downwards and although price has currently broken through the ema this did happen once before around begining April and yet the trend resumed. Using this method would this IB be one that I should be trading or because the ema has been crossed should I wait for a recross and another ib.

Paul
eurchf would also apply in your question as well, same situation
Yesterday there was IB on usd/chf I sold at 0.8115 TP at 0. 8070 made my easy 45 pips this morning! Vola!! LOl
This system is good . I had it on usd/cad too. I have sold it at 0.9756 still waiting for it!
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