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PTT Method (Profitable Trend Trading) in Forex

  • #301
  • Sep 17, 2011 11:18pm Sep 17, 2011 11:18pm
thank you spyderman,

I understand it and I like the visual of the caterpillar as it moves along. I guess u could have 2 or more caterpillar sections that move their SL's along with PA. I'm happy with using just 1 SL and following 1 bar behind till price stops me out, but wonder if 2 or more SL's, spaced a certain distance apart, would let us take the SL on any retrace, but also keep us in a trade as the trend continues. Hmmmm.
  • #302
  • Sep 18, 2011 9:11am Sep 18, 2011 9:11am
Quoting alto
thank you spyderman,

I understand it and I like the visual of the caterpillar as it moves along. I guess u could have 2 or more caterpillar sections that move their SL's along with PA. I'm happy with using just 1 SL and following 1 bar behind till price stops me out, but wonder if 2 or more SL's, spaced a certain distance apart, would let us take the SL on any retrace, but also keep us in a trade as the trend continues. Hmmmm.
Yeah, exiting strategy is definitely a hard one for me. There's obviously no perfect answer...it depends on the particular trade at hand, but what you're talking about has merit. Lock in some pips but still have room for further movement.
  • #303
  • Sep 18, 2011 10:36am Sep 18, 2011 10:36am
Quoting alto
thank you spyderman,

I understand it and I like the visual of the caterpillar as it moves along. I guess u could have 2 or more caterpillar sections that move their SL's along with PA. I'm happy with using just 1 SL and following 1 bar behind till price stops me out, but wonder if 2 or more SL's, spaced a certain distance apart, would let us take the SL on any retrace, but also keep us in a trade as the trend continues. Hmmmm.
Another possibility is to use a trade manager with jumping stops and partial closes. As an example you could use the trade manager to move the stop to BE +2 after 50 pips. Then you could use a jumping stop of 75 pips after BE had been achieved. And you could set it to close 50% of the position when 150 pips had been hit. Hopwood's trade manager does all of that.
  • #304
  • Sep 18, 2011 10:48am Sep 18, 2011 10:48am
Quoting behman8850
Guys,
There are IB on eur/usd, Gbp/usd (Pinbar) and Gbp/jpy. Also Aud/Cad Pinbar!
I like the IB on Eur/Gbp. I know it's rangy when you zoom out. But it looks poised to bounce down off the 50.
  • #305
  • Sep 18, 2011 1:31pm Sep 18, 2011 1:31pm
Quoting nubchai
I like the IB on Eur/Gbp. I know it's rangy when you zoom out. But it looks poised to bounce down off the 50.

And there is an IB on E/J as well.
  • #306
  • Sep 18, 2011 8:31pm Sep 18, 2011 8:31pm
I never used to like how the market gaps open on sundays, but they do seem to favor this method. at least recently. u get to put in a stop order on fri. and if the market gaps in the right direction.. not only does it trigger, but your trade is already in profit. I like it.
  • #307
  • Sep 18, 2011 10:10pm Sep 18, 2011 10:10pm
Quoting flyer415
I was looking at some of the posts regarding size of the inside bar in relation to the previous bar.

I modded my original inside bar indicator to include a Percent_Prev value.

I have it defaulted at 50. use integers in your input.

this means that if the IB is less then or equal to 50% of the previous bar then it will be highlighted as a "good" IB. You can input any number from 10 to 100. If you put less then 10 it will default to 10 and if you input more then 100 then it will default to 100.

The purpose was so nubchai or others could have...

If possible can you add an email function to your indy?
  • #308
  • Sep 18, 2011 11:25pm Sep 18, 2011 11:25pm
Hey there, this thread uses 3sma instead: 30, 50, 100 in good alignment.

http://www.forexfactory.com/showthread.php?t=208630


Quoting KelvinM
The Method:

Here is the method that fits the requirements outlined in the Overall Philosophy post above. As with all trading systems, there are some good things about this method, and there are some not so good things, or things that need improvement.

What I needed to have in a trading method is the following:

 

  1. A way to define the direction of the trend
  2. A way to enter the trend
  3. A stop loss
  4. A way to add-on if the trend continues
  5. A way to exit the trend

So here is a method that delivers on all of the above...

  • #309
  • Sep 18, 2011 11:33pm Sep 18, 2011 11:33pm
How about a the use of the size of the average daily range as SL? Since most USD pairs are 100 pips in adr, use SL as 100 pips. Care to backtest this on a few pairs?


Quoting KelvinM
Good morning Vijidas,

This is a good question. The answer has to do with backtesting. I know that many people say to put your stop loss at the previous high (for a short) or the previous low (for a long). However, doing so would cause a loss of many pips with this method of trading, in comparison to a fixed stop of 30 pips.

For instance, on the attached screenshot, if using the accepted method of placing your stops at the previous high for shorts, notice that you would place your stop at the high of the bar with the vertical line drawn through...
  • #310
  • Sep 18, 2011 11:36pm Sep 18, 2011 11:36pm
Curious, i wonder if you setup a subaccount with the express and sole purpose of trading a failed inside bar that returned to entry point. Wonder how that will stack up.

Quoting KelvinM
Hello adowland,

Nice to hear from you. Glad you have benefited from Michael Covel's books too. I just read a book yesterday where the trader being interviewed said 'trend trading is basically dead' in this market. Every few years somebody else says that, but the fact is that this world is full of trends, markets trend, and people get involved in trends. Always have, and always will.

Anyway, to answer your question, yes if we are stopped out and then get another Inside Bar we enter again and continue on the trade. Someone might think that now we...
  • #311
  • Sep 18, 2011 11:59pm Sep 18, 2011 11:59pm
Vary interesting method K. I like the simplicity of trading with the trend.
  • #312
  • Edited 6:46pm Sep 19, 2011 4:31pm | Edited 6:46pm
Hi all,

I was just thinking about the use of a set 30 pip SL vs using 100+, ATR SL.. U could argue that an ATR SL makes good sense cuz it is more dynamic and adjusts to the current market, plus it will get hit less often. Then I started thinking about expectancy.. if the sl is 30 and the average pip gain of a good trend move is 300, then that is a 1:10 RR, or an expectancy of 10. If we instead use a sl of 100, or so based on ATR, then using that same 300 for a good move, we get a much smaller 1:3 RR, or expectancy of 3.

I wonder how that would translate into real world results? Is it better to take many small losses (30 sl) or a bigger sl hit less often (ATR sl)? In my experience, the bigger the sl, the better the win/loss, but also the greatr any loss can really hurt an accnt. I know of several huge or even no sl ea's/systems who win 99% of the time, but then bust with just 1 or 2 losses. I also learned that, no matter how good the system, no matter how often it wins, there will come a time when u will face a losing streak.. like 10 in a row.. and so it would be much better at that time to have a system with a smaller sl set. Just using the #'s from earlier, 10 losses X 30 pip sl = 300 pips vs 10 losses X 100 pip SL = 3000 pips. Of course, I am not saying the same thing would happen to both methods (using different sl) I also think it would even out in the long run and the pips won/lost overall would not differ too much. In the end, I think it's up to each trader to decide how they will trade and why.

alto

update: I had another 10% wash (GEC) on my accnt. cool!
  • #313
  • Sep 19, 2011 8:04pm Sep 19, 2011 8:04pm
Here is a detail actual live trading journal: danUk trend trading journal.

http://www.forexfactory.com/showthread.php?t=143593

He average 1000 pips. Here is january results
http://www.forexfactory.com/showthre...00#post2509900
you can check results at the end of every month and you can see the trades in their development.

It just makes sense to me to use the average daily range of the pair as SL...and, if i am using the daily time frame as entry....my average profit target will generally be more than 300 pips if i am riding the trend for as long as possible. I will expect profit in the higher 100s and lower thousands.

of course, this is just my opinion, and to be honest, i dont think inside bar setups are robust(in my humble opinion). But, hey, whatever works for you.

Just my two cents on this methodology.



Quoting alto
Hi all,

I was just thinking about the use of a set 30 pip SL vs using 100+, ATR SL.. U could argue that an ATR SL makes good sense cuz it is more dynamic and adjusts to the current market, plus it will get hit less often. Then I started thinking about expectancy.. if the sl is 30 and the average pip gain of a good trend move is 300, then that is a 1:10 RR, or an expectancy of 10. If we instead use a sl of 100, or so based on ATR, then using that same 300 for a good move, we get a much smaller 1:3 RR, or expectancy of 3.

I wonder how that would...
  • #314
  • Sep 19, 2011 8:48pm Sep 19, 2011 8:48pm
Hi dddd,

yes, that guy danuk sure can trade. Thanks for pointing to those threads. It's good to see that this type of trading really does work, and works well, for others, too. I have seen others who use psych levels in their trading, and it does make a lot of sense.. do u also use these levels in your own trading and what are your results? I think that trading with the trend is a common thing in FX and other trading venues and we all hear 'the trend is your friend' and similar things, but it is finding a method which makes sense to u and that u can actually do and remember that is one of the hardest parts. I am glad for any trader that can find a way to profit. For me, PTT is much easier to grasp.. the strategy and its implementation.. compared to all the other methods I've seen. (trend following or other) I am glad to have found it now (only took 11 years of trading/failing) and I hope to keep it up..

alto
  • #315
  • Sep 19, 2011 10:56pm Sep 19, 2011 10:56pm
Hello Kelvin,
I tried this system yesterday with good results.Maybe was a very easy day, i foud 3 setups eurusd,audusd and usdcad.Take only the audusd, moved about 80 pips.I move my SL to b/e +10 pip and got hit late night.
When do you move your SL ?
You take 50+ pips or just leave the trade?
Green pips to everybody!
  • #316
  • Sep 20, 2011 1:57am Sep 20, 2011 1:57am
Quoting tamiflu
Hello Kelvin,
I tried this system yesterday with good results.Maybe was a very easy day, i foud 3 setups eurusd,audusd and usdcad.Take only the audusd, moved about 80 pips.I move my SL to b/e +10 pip and got hit late night.
When do you move your SL ?
You take 50+ pips or just leave the trade?
Green pips to everybody!
See post #10 re stoploss.
  • #317
  • Sep 20, 2011 12:48pm Sep 20, 2011 12:48pm
Hi everyone billys back, I tried keeping in touch with blackberry but its a tad difficult .On the 20th we have about 6 ibs going although they all aren't true to Melvins thread but its a start. i have the whiff of pips in the air lol. How is the compounding or is it catapillaring, i do this a lot but you have to be EXTRA careful as it isnt for the feint hearted, happy trading happy days
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #318
  • Sep 20, 2011 11:17pm Sep 20, 2011 11:17pm
5th time's the charm, right? c'mon uj!
  • #319
  • Sep 21, 2011 1:35am Sep 21, 2011 1:35am
folks I need help

Is there a good COT extractor system out there? I need this data on my desk every week and then build out my charts and models.

Many thanks
  • #320
  • Sep 21, 2011 2:07am Sep 21, 2011 2:07am
Hello zuut,

I would like to help, but don't know what u mean by COT extractor system..?
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