PTT Method (Profitable Trend Trading) in Forex

it is possible to add your own highs and lows to charts to compensate for your brokers timings so you'll see what the others can see

Several of mine triggered too although I use a slightly different definition for trend. I don't go by which side of the 50 ema price is on (although it does help to recognise trend), I use higher highs lower lows and trend lines for that. The EURUSD and AUDUSD are doing really well at the moment. Hit my stop a couple of times but now im in it up 170pips so far. My entry was on the Sunday candle break. I agree about modifying the exits a bit. I do want to give these as much room to move as possible but I would be gutted if it reversed that much.. Trailing stops are my preferred choice.

Hi all,

It looks like the market overall has turned now. Many pairs are bouncing off the ema50. Hopefully trends will resume and we can catch some good moves. Here's the trades I got for now..

alto

Hi Alto, thanks for showing us what you have on. I can't see all of these set ups on the daily candles...are you seeing IBs on the pairs you listed? Or are you taking entries on a different candlestick pattern (like hammers / pin bars?) I use an Alpari and Oanda account which have different daily closes so maybe thats the reason.

I think alto's charts are similar to mine. I'm using Alpari (GMT+2) and FxOpen (GMT+3). My order for EUR/JPY is 105.10 short, almost the same as alto's although I don't understand why EUR/USD is 1.3760 short (mine is 1.3683).

Interested to see if this strategy really works regardless of the difference in opening time...

Anyway, on my side, USD/CHF and GBP/USD have been triggered. I hope they will bring many many pips "this time"!

Hello guys!

I've read this entire topic and watched various reactions to trend trading. It's pretty interesting.

Well, I'll recommend some books, for those really interested in trendfollowing philosophy:

 

1. Market Wizards - Jack Schwager
2. The Way of The Turtle - Curtis Faith
3. Trend Following - Michael Covel
4. Trade your Way to Financial Freedom - Van Tharp

last book is the best. I usually say that if i could take only one book of trading, would be the Van Tharp's book. Beyond concepts, it is full of practical trading techniques and other recommendations of a more specific to each technique.

One hint: don't get extremely focused on the entry method. LONG term trendfollowing (the most profitable, practiced by the great traders of these books) will be right only 20-40% of the time. Are the short losses and long profits (determined by the markets, not by the trader) that make this approach profitable in the long term.

Plz, read Tharp's book. I'm certain that you'll learn something that will change the way you see the markets and trading career.

Hi all,

I am on MBT which is probably very different from other brokers, but also I do not trade a pure IB method, or any other candle formation or breakout, etc. It's more of my tech analysis on the D1 chart and when I see a bounce off of the ema.. or some other formation.. like the big triangle right now on uj. I do also use IB lows/highs as entries, but sometimes use the IB from 4-5 candles back as it looks like that's where price turned. Hope that kinda explains why i seem to pick all different entries.

so, as u can see, my balance is now at $359, from a start of $400. now, i did take out $40 at the start of this month which would make things about BE so far, but I am getting a little antsy for things to start winning again like it did last month. (actually i don't mind the pace of things as I can learn some patience, but I do want to see the overall profitabilty of PTT as time goes on) I know that a trend following system might have losses or little ups and downs for 11 months in a row, and then win big in month 12 and so end up with a nice annual ROI, but is that really what we can expect with PTT??

Hey all,

I just found this on the web and thought it was worth sharing..

http://originalturtletrader.com/originalturtlerules.pdf

i think we all heard the great story of the turtle traders and PTT is a method along the same lines so it's a good read. I found the section on exits the most interesting. don't know if I quite agree with giving up 10, 20, even 60%+ gains just to catch that 1 or 2 big 100%+. of course, 100 or 200% ROI sounds really nice, too.

I think that the sweet spot that a typical good trend can bring in is about 10%. I have my close all ea set for 20% and usually end up closing trades per kelvin jumping stop method with a 20% wash happening about every 2-3 weeks. although this month has scence neither wash nor winning trend trade. perhaps it would be most profitable to try and catch the 1 or 2 big ones?

Hey Alto, thanks for the pdf file. Its a really good read, if not a little bit frightening about the way those guys waited for 1 or 2 trades a year that made their profit....that doesn't sit well with me to be honest. Still, accepting a bunch of losses in a row as part of the norm has done wonders for my stress levels. Trying to be right 60 or 70% of the time before and losing most of the time made me think the the market was attacking me personally. If I can just be right 1 or 2 times out of 10 that gives me huge profits then this has to be the way to go.

yeah, its a valid way to trade (of course, given the turtle's track record), but I don't think I'm to that level of confidence in my trading yet. I mean, I still miss a trade here and there and what if THAT was the 1 that would've won big, making up for all the little losses.

I also meant to comment on what was said in that turtle trading method.. in there, under the part about exits, it talks about letting a 10-30% gain slip by, or letting a 100% gain fall to 60%.. I don't know about that.. in all the results I've seen, any gain of 50%+ is about the highest ANNUAL gain u will see, although there have been some 100+% years. I think that IF I could be patient and lucky enough to see a floating profit of 100%, I would surely close that straight away.

Hi all
Anybody got any trades open ? I haven't seen any for a while now. There are some promising looking pairs.

yay! uj is finally winning some pips for me! it only took 8 tries so well worth it, right? cuz of the expectancy? Anyway, I agree that there are some good looking pairs right now. It looks like there are several good trends just beginning and I am waiting for a retrace (IB or similar PA) to set my pendings. ok.. c'mon uj!

Yes I'm in U/J aswell.

thank u uj for the 15 pips. i put in another stop order just below uj as I think it will drop some more. so not a big gain, but it ends a pretty good losing streak and I'm glad to get back on the winning side. The end of the month is almost here.. doesn't look like a great month for PTT.. nothing like last month. oh well, let's see where things stand at the end of this year.

Anybody got any trades open ?

I was waiting for the announcement. It has come out and a deal has been done.

Now we look for trades...

Got a trade in progress on the Aus/Usd +35 pips so far, pending trade on Usd/Cad

This is the first PTT trade I've taken where there was a bounce off of the 50ema, in fact multiple bounces, Wonder if that will make the trade stronger ?

Half of position taken off for 1:1. Other half running at +90 pips.

great trades...

Olu

Got a trade open in Usd/Cad now. I did not take the break of the inside daily bar , but waited for price to break through support at 0.9975, which it seems to have done. I'll be taking some of the trade off at 0.9910 because of trendline support.

Half the trade closed and stop to BE. Not so confident here, but I've made some nice profit and the rest is a free trade.

Usd/Cad second half was stopped out at BE +5. Second half of Aus/Usd is at + 217 pips.
I'm trying a trade management EA and have set a jumping stoploss of 40 pips.