1min Tricolour

hi

i have my own scalping system i trade. i use the tricolour system as an added filter...nothing else.

i only aim for 6 pips per trade with sl at last swing low or 6 pips whichever is lower. i only scalp 1 min when i feel like it. otherwise iam a swing trader...long term.

today i made on scalp: 6 pips, 4 pips, 6 pips, -6pips, -3 pips, 5 pips, 6 pips, 8 pips, 6 pips, 5 pips, 4 pips. total = 41 pips.


on your chart entries, do you enter immediately when the price moves back down the ma's ? whats your criteria ...

Hi Paulus and thanks for sharing.

I use a similar method off the 1min tf. Those who said its a waste of time trying to grab few pips on the 1mi tf don't probably know how to use the time frame in question.

From experience, if say EurUsd moves 50pips, I usually make 80pips or more. How you may ask. The reason being that on the 1min tf, a 15pip move affords me the opportunity to grab about 8pips having paid spread. Sometimes, I get more than this.

The beauty of the 1min tf is that you profit from almost every meaningful fluctuations (every 20pip move) thus compounding your profit.

I will test your system during the weekend on EurUsd and Gold to see what I can benefit from it.

Once again, thanks for sharing.

Hi Paulus,

Can you please explain the rationale behind the parameters you used for your stoch? Am trying to adapt the system to XAUUSD.

Thanks.

Paulus can are you trading this method everyday?

Would be appreciated if you would post some charts of previous days trading to reinforce and compare to our own trades.

Thx,
Todd

I enter when both stochs cross overbought levels (80 and 90) for Short and oversell (20 and 10) for longs.
I have not changed any Paulus rules.
But i have observed that for Longs the shortest MA shouldn't turned down (without crossing others MA's yet) to enter trade.
For Shorts vice versa.

Is there a particular script that you guys use to enter the trade and that calculates the percentage and pips, etc?

i was talking about the entries on your charts above. why did you decide to enter at those particular points ? they dont seem to tally up with the rules.

they dont seem to tally up with the rules.

Why?

I entered for rules from post no.1 from page no.1.

Hi Todd

I have been trading this system .. along side version 2 which to me is more accurate and profitable

I have also been working with an Ea coder re an indicator but these things take such a long time and you wouldn't believe the amount of questions and queries you get... .

Tricolor V2 has tried to address a few problems

It gives a few more signals as one of the criteria is for the long term stoch which is based on a 5min chart to be either oversold or overbought.

If this doesnt give green or red no matter how good the setup is the signal will not be valid as the rules stand

Aslo the 102ma ( Blue) can remove alot of good signals as it moves up and down through the red and green ma's as price is pulling back hard or rallying hard

By the way it is 102 because on the 3min chart its a 34ma and on the 5 min chart its a 21ma both Fibonacci numbers

1,1,3,5,8,13,21,34,55,89,

The red is a 63ma because on the 3min chart its a 21ma and on the 5min chart its a 13ma - Fib numbers

The green is 165ma because on the 3min chart its a 55ma and on the 5min chart its a 34 ma - Fib numbers

I gain allot of 5% wins using version 2 over version 1 as it gets around the long term stoch

We also noticed that 2 or 3 trades with nice price action..ie nice steps up or down often run for alot of %

I now use a Stop loss as before but with a fib tool marked at 5% ,10%,20%,30% etc etc

when I enter an trade and it hits 5% i move stop to the close of the entry candle

If I hi 10% level I move stop to 5% level if I hit 15% level i move stop to 10% level etc etc

yest on GU I had a trade that hit 30%..I will post details later prob on new tread linked to this one..you guys may not like it but I think it gives more opportunities during the day with a possibility of a nice % win.

All we are doing here is identifying long term trend and entering on a strong rally or retracement,

We are also now trying to improve on the risk reward although that was set a a ratio of 2:1 which is good in my opinion

Also guys that keep better records than me may well find out that taking 10% with a fixed stop of 5% produces better results than larger wins but also larger amounts of 0% wins

But I will post the system and let people compare

Cheers

P

here is an example from 1 of the swaps I trade

UsdChf

The black arrow is a normal Tricolor signal which hits 10%

V2 also captures this signal and using its moving stop at sliding increments also gets 10%

The red signal is a V2 signal and by chance this gets taken out at 0%,V1 doesnt trigger as the longer term stoch is not over sold

With a fixed 5% sl and fixed 10% win this would of gained 10%

Giving a return of 20% on your account over 2 trades

P

Thanks for working on this, I really liked this system from the getgo. Are these Versions you talk about EAs you're making? I'd prefer to just trade it manually... what is different in V2 than V1?

I will try and post tomorrow but have family here


A good example of the difference between the 2 system is that after London Close ( A period I do not trade) we had a decent signal which the original system would not of picked up as the longer stoch was not OS enough

The V2 picked it

P

Interesting... looking forward to hearing more. My biggest problem was the lack of opportunities following the rules exactly. I love trading reversals though especially in the direction of a 5 minute trend so I'm excited to see the modifications you've come up with.

Currently I'm just using a 50 SMA on a 5 minute chart and then looking on a tick chart for CCI oversold or overbought levels to get in with the direction of the 50 SMA.

Happy new year guys

I'm a newbie, i don't know why my stop loss gets hit every time with this strategy.

Here's a chart, i'm simulating with a broker with a large spread, but i marked the stop loss with the red line as if it was a broker with a tight spread.

So it looks like you got rid of the longer stochastic and maybe the 102 MA, but put in place put some sort of MA +- a certain number of pips or a Keltner channel as the secondary filter to use alongside the shorter stochastic?

Looks like a 63 (or shorter) period Keltner, no 102 MA, just the short and long EMAs,.. if the EMA's are in order and the stochastic is ob/os, and price is still within or on the correct side of the keltner, that's a trade? Is that close? Lots more trades that way, which I'd like.
Or maybe its no 63, just the two long EMAs and the Keltner takes the place of the 63 as well as the long stoch.

Sorry for the huge delay

here is the V2

Regards

The man is back! How goes it? Too busy making a killing on this never ending downtrend??

In a strong downtrend, do you trade any other stochastic overbought even if the envelope hasn't pulled back up to above the other MAs?

And do you still use V1 at all or have you switched solely to this?

Thanks for the update and the work, excited to take a look at it

Hi

I dont use V1 at all although will look to make sure V2 is picking out more signals..

No Im guided by the envelopes.. if a trend is weak and goes down all day without a signal thats the way it goes...if you change to start taking weak pull backs on a normal day with a normal volatilty day you could get burnt on several trades dur to the fact the market will carry on against you untill those bands come above the ma's...of course we will always lose on some trades we have to

cheers

P

I only see one trade today on this pair per the V2 rules. Is that correct?

Simple, yet elegant. A high probability, and a high R:R. Absolutely beautiful man. I look forward to forward testing your method. I particularly like V2's Fibo tool use for a manual trailing stop. Well done!