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"Katana Trading Strategy"

  • #241
  • Dec 29, 2011 4:20am Dec 29, 2011 4:20am
Quoting jmflukeiii
Sir... I was in no way talking about your template or strategy or setup. In fact, I have a very similar one I use as for trend following as well.

I meant the Eur/Usd market itself.
Ah i see, yes when market goes sideways it is a mess, but the market does not go sideways forever, which is the beauty of range bars, shows symmetrical moves very well, unlike those time based bars... that's what i call a jumbled mess... it hurts my eyes to look at time based charts now..
  • #242
  • Dec 29, 2011 4:24am Dec 29, 2011 4:24am
Quoting Musashi
Ah i see, yes when market goes sideways it is a mess, but the market does not go sideways forever, which is the beauty of range bars, shows symmetrical moves very well, unlike those time based bars... that's what i call a jumbled mess... it hurts my eyes to look at time based charts now..
lol... yes I was referring to my 5 minute chart I have sitting here in front of me. Its like someone learning to drive a manual transmission car for the first time.... start to go, but oops, released the clutch to quick and the car shutters to a stop.

I really liked your idea about just turning stochastics into histograms so I did that (I had actually already done this with CCI and RSI for my 1 tick chart). But it certainly cleaned up my 1 minute chart instead of 5 different stochastic lines in one indicator panel....
Small disciplines repeated with consistency lead to great achievements.
  • #243
  • Dec 29, 2011 4:29am Dec 29, 2011 4:29am
Now watch the market move another 50 pips after it hits my trailing stop..
Attached Image (click to enlarge)
Click to Enlarge Name: katana chart 111.jpg Size: 160 KB
  • #244
  • Dec 29, 2011 4:31am Dec 29, 2011 4:31am
5 minute outside reversal bar
Small disciplines repeated with consistency lead to great achievements.
  • #245
  • Dec 29, 2011 4:32am Dec 29, 2011 4:32am
Quoting jmflukeiii
lol... yes I was referring to my 5 minute chart I have sitting here in front of me. Its like someone learning to drive a manual transmission car for the first time.... start to go, but oops, released the clutch to quick and the car shutters to a stop.

I really liked your idea about just turning stochastics into histograms so I did that (I had actually already done this with CCI and RSI for my 1 tick chart). But it certainly cleaned up my 1 minute chart instead of 5 different stochastic lines in one indicator panel....
If I was you, and anybody else for that fact, I would get a range bar script and run it, and sit and watch how price moves using these bars for a few weeks. Do not trade using them, just watch them and watch them around key levels of price...

Then after you've done that for a few weeks, go back and watch the 5min charts again..... then see what happens..
  • #246
  • Dec 29, 2011 4:34am Dec 29, 2011 4:34am
Quoting jmflukeiii
5 minute outside reversal bar
Forget this way of thinking my friend, you will be better off... inside bars, outside bars, doji mean nothing on range bars.
  • #247
  • Dec 29, 2011 4:42am Dec 29, 2011 4:42am
Quoting Musashi
Forget this way of thinking my friend, you will be better off... inside bars, outside bars, doji mean nothing on range bars.
When you look at inside bars on a chart, basically all you are doing is looking at a range after a move in one direction, for example on a H4 chart you have a down bar, then an inside bar forms, basically this is just a ranging period of price after a move down.

Why limit yourself to time based bars....it makes no sense to think like this. You constantly switch between time frames, always concerned about the higher time frames.. because they are more important you tell yourself..

But why are they more important? support and resistance, price levels is what is important... waiting for a H4, H1, D1 bar to form and then make a decision is to me just a ludicrous notion now.
  • #248
  • Dec 29, 2011 4:44am Dec 29, 2011 4:44am
Quoting Musashi
Forget this way of thinking my friend, you will be better off... inside bars, outside bars, doji mean nothing on range bars.
I don't trade off of them. I have them up because its what everyone else is looking at. So unfortunately, they do mean something. A doji on a 5 minute typically means price reverses, at least enough for me to scalp it on my tick chart for 3-8 pips. A bounce on the 50SMA on a 5minute chart happens all the time, enough for me to scalp 3-8 pips. And that last bar I just called lead to a 10 pip decline which I took 7 from.

I know what you're saying though - I do love range charts, but I'm just accustomed to viewing it in time. And so are a majority of traders, especially those who are on the opposite side of my winning trades. So I agree, range is beautiful and smooth, but I feel for me at least, I need to see what everyone else is seeing so I can react to what I think they're going to do.

I trade off a 1 or 10 tick (depending on the data feed) line chart most of the time. All my trades are taken and exited by the time a 10 range bar forms typically. But I think if I were to trade longer positions, I would definitely want to use a range bar system of some type.
Small disciplines repeated with consistency lead to great achievements.
  • #249
  • Dec 29, 2011 4:47am Dec 29, 2011 4:47am
Quoting Musashi
Why limit yourself to time based bars....it makes no sense to think like this.
.
I agree to some extent. However, I think its important to note what so many others are seeing as well. Not to mention, there is a great deal of validity to the things I look for on a time chart.

And in no way, by the way, am I trying to say range bars are wrong or anything. I'm just saying, I'm much more accustomed to something else and have ways of using it to my advantage.

My 1 tick line chart tells me way more than these stupid 1 minute candles. In fact, half the trades I make almost make no sense on a 1 minute chart at all, let alone a 5 minute. But thats reversal trading. Trend following I've typically stuck with a 1 minute, but maybe I'll try a 3 range or something

EDIT: 4 range with a Gann HiLo... when price breaks through the 250 and 50 emas, wait for a retracement that stays under the 50, then trade the gann cross in the direction of the emas.

And sorry, that's it from me... thanks for the suggestion though, I might fiddle around with this a bit more.
Attached Image (click to enlarge)
Click to Enlarge Name: $EURUSD (4 Range) 12_28_2011.jpg Size: 86 KB
Small disciplines repeated with consistency lead to great achievements.
  • #250
  • Dec 29, 2011 5:01am Dec 29, 2011 5:01am
Quoting jmflukeiii

EDIT: 4 range with a Gann HiLo... when price breaks through the 250 and 50 emas, wait for a retracement that stays under the 50, then trade the gann cross in the direction of the emas.

And sorry, that's it from me... thanks for the suggestion though, I might fiddle around with this a bit more.
what is this Gann HiLo indicator, do you mind posting it here so I can observe it on a chart please.
  • #251
  • Dec 29, 2011 5:04am Dec 29, 2011 5:04am
Quoting Musashi
what is this Gann HiLo indicator, do you mind posting it here so I can observe it on a chart please.
Ninjatrader or MT4; I have both? If ninjatrader, I won't post here, but I'll email it to you if you PM me your email.
Small disciplines repeated with consistency lead to great achievements.
  • #252
  • Dec 29, 2011 5:05am Dec 29, 2011 5:05am
Quoting Musashi
what is this Gann HiLo indicator, do you mind posting it here so I can observe it on a chart please.
Hi Mushashi,

Here you go.., both on chart and histo version. hope this helps.

Hi jmflukeiii,

do you use the standard settings of Gann Hi-Lo or is there any other
Attached File(s)
File Type: mq4 Gann High-Low activator.mq4   8 KB | 443 downloads
File Type: mq4 Gann High-Low activator histo.mq4   6 KB | 403 downloads
  • #253
  • Dec 29, 2011 5:07am Dec 29, 2011 5:07am
Quoting paapi
Hi Mushashi,

Here you go.., both on chart and histo version. hope this helps.
Thank you, I will observe it on a chart, I am always looking for better methods to exit trades, so far the best method I use is to exit based on price levels, and move stops in direction of the trade using these price levels as the support/resistance levels.
  • #254
  • Dec 29, 2011 5:22am Dec 29, 2011 5:22am
Quoting paapi
Hi Mushashi,

Here you go.., both on chart and histo version. hope this helps.

Hi jmflukeiii,

do you use the standard settings of Gann Hi-Lo or is there any other
Yes it seems to be useful for entries, it is picking up trend continuation entries pretty well, I will do some visual testing using this indicator to see if I can incorporate it into trading plan.

Any method that will help keep you out of the market when it is ranging very helpful.
  • #255
  • Dec 29, 2011 5:29am Dec 29, 2011 5:29am
Quoting paapi
Hi Mushashi,

Here you go.., both on chart and histo version. hope this helps.

Hi jmflukeiii,

do you use the standard settings of Gann Hi-Lo or is there any other
I use a 5 period Gann on a 15 tick (or 150 tick for my IB feed) chart. I've yet to master it, but its there to try to help me stay in my reversal scalps off the 1 tick ( 10 tick for my IB feed) chart. I really think it works best when not on time based charts - for awhile I used it on a renko chart where I would trade only the gann crosses in the direction of the 50 EMA on 3 or 5 pip Renko chart. Or like I just posted, it seems to be great on a range chart.
Small disciplines repeated with consistency lead to great achievements.
  • #256
  • Dec 29, 2011 5:32am Dec 29, 2011 5:32am
That is enough trading for today.

Moving my stop down on that EU trade cost me... however it pays to move the stop down in the direction of the trade.... although sometimes it will be of benefit other times it will not...

Equity
Attached Image (click to enlarge)
Click to Enlarge Name: statement.jpg Size: 114 KB
  • #257
  • Dec 29, 2011 6:01am Dec 29, 2011 6:01am
Gann HiLo Activator showing similar results compared to the stochastics.

Market really trending well now...

Attached Image (click to enlarge)
Click to Enlarge Name: katana chart 112.jpg Size: 283 KB
  • #258
  • Dec 29, 2011 7:25am Dec 29, 2011 7:25am
Quoting Musashi
If you want to use Renko, then use this file to make the Renko Blocks.

I would not recommend using them, at the very least use them with the wicks enabled.

The Renko Blocks do not give a true representation of price, unlike the Range Bars.

Thanks Musashi, will try this, and continue looking for Range Bars.

Outcome was not favorable last nite. It looks easy to follow the rules re. the three ma's. Will have to try this but takes some patience. Thanks again.
  • #259
  • Dec 29, 2011 7:44am Dec 29, 2011 7:44am
Quoting brucewhain
Thanks Musashi, will try this, and continue looking for Range Bars.

Outcome was not favorable last nite. It looks easy to follow the rules re. the three ma's. Will have to try this but takes some patience. Thanks again.
Obtaining range bars is easy, just google search and you'll find the link to the mql service where you can obtain it.

http://www.google.com.au/#sclient=ps...w=1416&bih=810
  • #260
  • Dec 29, 2011 4:09pm Dec 29, 2011 4:09pm
Just checked the chart from overnight session for me, I can identify one possible trade which if traded would of been a loss trade, after that the trend filter would of prevented any further trading.
Attached Image (click to enlarge)
Click to Enlarge Name: katana chart 113.jpg Size: 316 KB
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