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True Trading Tactics

  • #1
  • First Post: Feb 3, 2012 9:08am Feb 3, 2012 9:08am
There is no ‘holy grail’. But I give you this, a very simple, sensible and profitable system that can be used on any pair. It's not revolutionary, hell it may already be the same as other trading systems, I don't know. But I like to call it true trading so if it's already here then it's worth repeating.
As for time frames again any, but I advise AGAINST 4hr as many brokers have different start/finish times. 1hr is ideal, so is daily for the working man (set and forget)
The first chart is a typical 1hr chart, full of highs and lows.
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  • #2
  • Feb 3, 2012 9:10am Feb 3, 2012 9:10am
Now look at the chart and look for candles that have reached a peak high and then turned sour (turned and finished red). Then do the same for lows (were red and turned green). In case this is unclear below is a crude knock up of a typical chart showing what I mean
Attached Image
  • #3
  • Feb 3, 2012 9:11am Feb 3, 2012 9:11am
More, please...
  • #4
  • Feb 3, 2012 9:11am Feb 3, 2012 9:11am
Now here is the chart again with arrows pointing to the one’s I mean. See how the market makes a new high and yet cannot keep the candle above it’s open, so on a ‘high peak’ a candle opens, goes higher and turns green, however the rise cannot be sustained and the market drops. The candle falls below its open and turns red and eventually closes red (call it the reversal candle). We now look to sell at the break of the bottom of this candle ‘reversal candle’. The candle that breaks this is the ‘breakout candle’.
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  • #5
  • Feb 3, 2012 9:14am Feb 3, 2012 9:14am
The numbers on the chart on the previous post are profits (if we take the size of the ‘reversal candle’ as our take profit). As you can see much more could have been taken. It shows approx. one week, with 9 trades, 1 loss, 1 BE, 7 wins and a profit of 162 pips. The SL was take at the high of the reversal candle giving a 1:1 ratio, however below shows other options to keep SL’s lower giving greater ratios
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  • #6
  • Feb 3, 2012 9:18am Feb 3, 2012 9:18am
more charts from this week..
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Click to Enlarge Name: kkk2.jpg Size: 142 KB
  • #7
  • Feb 3, 2012 9:19am Feb 3, 2012 9:19am
i'll post some more info shortly..
  • #8
  • Feb 3, 2012 9:36am Feb 3, 2012 9:36am
Quoting kraven
i'll post some more info shortly..
Hi K,so how many pips does one have in profit to bring to b/e,thanks for sharing.
  • #9
  • Feb 3, 2012 9:41am Feb 3, 2012 9:41am
Quoting kraven
i'll post some more info shortly..
Simply the best. Great start K. Will follow your thread.
  • #10
  • Feb 3, 2012 9:43am Feb 3, 2012 9:43am
Kraven,

based on what you said, this can easily be backtested on a long history of data as the rules can be completely mechanical, have you done that? Without that, it's hard to claim that it works on any pair/time frame. If you give me a sufficient reason(ing) I will go and backtest it on 10 years of data but it will take me a few hours of coding and I would rather not do it if I don't have a good reason to believe this is worth my time (I don't actually believe it works long term, if applied consistently).
  • #11
  • Feb 3, 2012 9:45am Feb 3, 2012 9:45am
Tedge i tend to get out when the market appears to go flat....i.e seems to move around my entry area a few times. Most of the time you will see a 'good strong' move in the direction of the entry.
  • #12
  • Feb 3, 2012 10:03am Feb 3, 2012 10:03am
Re-entry and possible exits..

if you want to try for more pips then your SL (1:1) then exit on the first pullback bar (see pic) as you can always re-enter.....

Wait until a trend develops. A trend for me is 3 bars or more going in the same direction, steeper the drop/climb the better. Wait for a pullback of 1 or 2 candles. Enter on the break of the pullback candles.
Works on all timeframe but stick to 1hr and daily.
Attached Image (click to enlarge)
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  • #13
  • Feb 3, 2012 10:04am Feb 3, 2012 10:04am
the last pic is the GU 1 hr at this minute
  • #14
  • Feb 3, 2012 10:11am Feb 3, 2012 10:11am
Quoting kraven
Re-entry and possible exits..

if you want to try for more pips then your SL (1:1) then exit on the first pullback bar (see pic) as you can always re-enter.....

Wait until a trend develops. A trend for me is 3 bars or more going in the same direction, steeper the drop/climb the better. Wait for a pullback of 1 or 2 candles. Enter on the break of the pullback candles.
Works on all timeframe but stick to 1hr and daily.
Based on your rules, you should go long on the break of the first (green) pullback in the picture, am I understanding your rules right?
  • #15
  • Feb 3, 2012 10:16am Feb 3, 2012 10:16am
Quoting kraven
the last pic is the GU 1 hr at this minute
do you double up lots if you take a loss K?
  • #16
  • Feb 3, 2012 10:22am Feb 3, 2012 10:22am
Thank you Kraven. Very good thread. I will follow. Do you trade at London, New York or Asia open or time does not important? You open a position any time when you see such set up?
  • #17
  • Feb 3, 2012 10:28am Feb 3, 2012 10:28am
last pic as this is time consuming...

just knocked this pic up of recent EJ 1 hr...good pair to trade with this.

you will see i'm showing start entries, also re-entries, plus what i call a 'dead stop entry' it's bascialy when the next candle reaches the previous high and turns back pretty much to the pip.
Attached Image (click to enlarge)
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  • #18
  • Feb 3, 2012 10:28am Feb 3, 2012 10:28am
Quoting kraven
Re-entry and possible exits..

if you want to try for more pips then your SL (1:1) then exit on the first pullback bar (see pic) as you can always re-enter.....

Wait until a trend develops. A trend for me is 3 bars or more going in the same direction, steeper the drop/climb the better. Wait for a pullback of 1 or 2 candles. Enter on the break of the pullback candles.
Works on all timeframe but stick to 1hr and daily.
Hi Kraven,

A very interesting strategy you have here.

I have one question on the GU chart. The candle you use to look for re-entry, is this candle also a buy signal, such that a break of the candle upwards is a buy entry? (approx where you took profit on your short)

N
  • #19
  • Feb 3, 2012 10:46am Feb 3, 2012 10:46am
just some quick replies..

Nick'em if we have a nice trend...say 3 good bars then the next candle pullsback, i often take profit when the pullback candle closes and then put an order in at the break of the pullback candle in the direction of the original trend.

Tedge if i take a loss i just take it. i don't double up. if you let them run you can get some good R:R

aQuant can you show me the candle you mean. there's a chance it was an entry that i missed. If you want to back test then do, I just started this thread to help others with an easy way to trade. it's not perfect but i do well with it. but remember if markets go flat i will get out, sometimes this works for me sometimes i've missed big runs doing this
  • #20
  • Feb 3, 2012 10:51am Feb 3, 2012 10:51am
Quoting lite27
Thank you Kraven. Very good thread. I will follow. Do you trade at London, New York or Asia open or time does not important? You open a position any time when you see such set up?
doesn't matter to me...obviously the busier the better, if we get a rejection of the price (which is what happens when we get a reversal high/low candle) then the more volume pushing it away from that level the better, hence the nice steep candle patterns i like.
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