1min Tricolour

This is another system I use I have only 3 or 4 that I use through out the day

Dredding pivot system on 5min
The 1min triangle breakout

and this more mechanical system

uses 1 chart on the 1min time frame

On the chart we place

Price in candle form
I then have a 21,34 and 55 Exponential Ma's these are Fibonacci numbers
I then multiply by 3 to give me the trend on a 3 min chart we end up with

63 .. 102 .. 165 exponential ma's on our 1min chart

This gives us a trend direction

63 above 102 above 165 we look for longs
63 below 102 below 165 we look for short

We then need pull back on a larger time frame than the 1min............ and we need a pull back on the 1min time frame for our entry

For this we set up 2 stochastic

The fast or entry stoch is set to 15.3.9 low/high
The slow or pull back is set to 30.6.18 low high

We set OB OS on the fast/entry at 20 80
We set OB OS on the long term pull back 10 90..we want confirmation of a strong deep pull back or a sharp strong rally

We use the stochastic colour so it visually shows us when the parameters are meet for a trade

And i scale my ma thin thicker and thick to visually see when they are lined up correctly.


The chart shows examples of Friday

For a long

we need ma in correct order
Long term stoch green indicating longer term pull back
Short term stoch green indicating 1min pull back

These must be green at the same time.
The price must pull back into the space between the blue and green area

We eneter on Tick up of fast stoch with green candle

For a short

we need ma in correct order
Long term stoch red indicating longer term rally
Short term stoch red indicating 1min rally

These must be red at the same time.

The price must rally into the space between the blue and green area

We eneter on Tick down of fast stoch with red candle

Stop loss 1 pip above below Hi or low of recent candle

Risk a % of your account on each trade

For me that's 5% so if my entry to my SL is 8 pips I calculate 5% of my account and buy contracts

My TP is 10% gain on account so in this example that will be 16 pips of movement

Therefore my risk is 5% my TP is 10% my risk reward will always be 2;1

Start at London Open close as your preference

P

UPDATE

Please follow link to go to page 96 for details on Tricolor V2 - http://www.forexfactory.com/showthre...71#post5274371

Please fllow link to go to page for details of 5min exit http://www.forexfactory.com/showthre...36#post5356236

wonderful concept
why dont we add pivot lines (1 min extremely reacts to it)
and filter Trade time to market opens (London, NY) may be can use atr5/25
so after making 2% we can quit for the day, hang around with kids, family, GFs

set daily target at 2% make 40% a month
lets give this a demo try
but more filters needed

Hi Paulus, it seem a nice system. Thanks for sharing!

I'd like to know why ( in your last image) didn't you take the trade before your first win (there were the some contidion of stochastic oversold) and the trade immediately after the lost (there was divergency too)?

Thanks!

The stoch filters very well dont forget both green at the same time

Friday 9 signals made well over your 2% .. more like 60 %

This is simple clean to the eye..I dont want to use pivots here on the 1min the whole concept is to take advantage of 1 min movement at any area in the market

Cheers

[quote=Aztrader2;5128682]Hi Paulus, it seem a nice system. Thanks for sharing!

I'd like to know why ( in your last image) didn't you take the trade before your first win (there were the some contidion of stochastic oversold) and the trade immediately after the lost (there was divergency too)?

Thanks![/quote

Sorry my fault

1st Point

Any signal that triggers above the blue and green for a long does not qualify we need a strong pull back

Same reasons for a short we need the trade to pull back into the blue and green trade area

That trade did not so not trade

2nd Point

If you look at the trade after the failure as you suggest you will see the 3 mas not lined up correctly..this pull back is to strong

Have now added this to 1st page

Hope that helps

P

[quote=Paulus;5128701]
That's all clearer now, thanks!
Btw, i've loaded your template, and now I can see better what you say....

How do you manage such fast trades in 1 min Tf? You have to fastly calculate pips for Sl (plus spread?) & TP (plus spread?) and decide the size of lots accordingly for you 5% risk. I want to say: 3 instead of 4 pips and there's already a big difference in lot size..... Do you use a trade management EA with MM?

thks Paulus, i always check out all the systems u post

Hi Paulus...

In your first post, first picture, the second trade (long entry) comes well below the blue/green zone. What makes you take the long trade here, the fact that the MAs are still in order for a long or the fact that the stochs are oversold?

maybe the weakness of this system is WAITING!!
you have to wait every single minute until you get the signal
live trading is a magnitude difficult than back-test with this

patience is the key
i hope we have an alert for this

I like this. Very clean. Very simple. Excellent.

Paulus, in your description you list both stoc as low/high. In the attached charts the slow stoc is set at close/close.

Which is correct, please? Thanks......

I don't know if this trading system will work out in real market environment, and i don't really like this trading style, nor the money management..

But meh, this stuff makes 100% sense.. kudos to you Paulus!!

20% today...

Here is a quick 5 pip trade using Paulus's set up. MA lined up for short, Stochs overbought. Rejection at resistance level. Could have stayed in this for another 4-5 pips.

Great morning here (US West Coast) .....

I'm keeping track of the trades, i don't think i will ever trade this system live, but i really like the idea behind it.

I will start a forward test tomorrow, AvaFX broker, from 0800 GMT+1 to about 1830.

Good looking chart today, as we are in a good trending day.
Today's trades so far:

Hi SteMahg..

Don't mean to be rude here...but...If you don't plan on ever trading this methodology live why bother with it at all. Seems like you're wasting your time here.

I hope Paulus doesn't mind me showing a divergence counter trend trade I just took. I know he hasn't covered this yet.We have a nice down move going and we get another thrust that makes a lower low. The fast Stoch is showing divergence with the new price level. Wait for an up candle to be formed and bang..a quick 15 pips with little risk.

Because now by now i'm working on hourly charts, and i get bored really fast, and forward testing a system (that i really like) is a good way to fill up my free time

As i said i really like the system and the idea behind it, but my experience tells me that a system like this cannot last in a live environment, due to spread (or fees), slippage, stop-haunting, volatility spikes etc..
I hope to be wrong, and if i will i'm ready to fund a small live side-account.

Time will tell

[EDIT]

Another +10% in the meantime
Will post chart at 18/18.30 GMT+1

Hi Paulus,

Could you post the mq4 file of the StochasticColor indy? My Mt4 crashes everytime I load the indicator.

Many thanks.

julai