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Buy sell line trading

  • #21
  • Mar 4, 2012 3:18pm Mar 4, 2012 3:18pm
Quoting shahrooz67
Wrote an EA and checked the results

The are not so much pleasing

maybe my misunderstanding of the method
I have EA's for this, you will do much better trading it manually.

These are edges, how you trade it will be vital to your result.
tradewith60
  • #22
  • Mar 4, 2012 3:21pm Mar 4, 2012 3:21pm
Quoting 60minuteman
This thread is here to discuss a trading system using a simple buy sell line.

For my buy sell line I use a 50sma, if price is below we only short, if price is above we only long. (closed price only here.)

Then we follow some very simple rules to trade.

I use 2 signals for a trade with the buy sell line, here are the rules for the first signal.

1. price below the 50sma we only short, price above the 50 sma we only long.

2. open and close price must engulf the previous bars open/close.

3. entry is at 1 pip +spread below the signal bars low (for...
sma shows different readings day vs 4hr.
Are you applying 4hr or shorter?
I am posting the graphs to show the dilemma. 2 opposing trades.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: sessions sma 1day.gif Size: 13 KB
Click to Enlarge Name: sessions sma 4hr.gif Size: 13 KB
In trading, you have to be defensive and aggressive at the same time
  • #23
  • Mar 4, 2012 3:24pm Mar 4, 2012 3:24pm
Quoting 60minuteman
Works on all TF's, all pairs... preferred TF for me is H4 followed by H1.

.
Never mind I must of overlooked this post.
Thanks for your simple approach.I like simplicity.I'll test it on demo
In trading, you have to be defensive and aggressive at the same time
  • #24
  • Mar 4, 2012 3:26pm Mar 4, 2012 3:26pm
Quoting Davit
sma shows different readings day vs 4hr.
Are you applying 4hr or shorter?
I am posting the graphs to show the dilemma. 2 opposing trades.
Just trade the chart you're on, its not multi tf...
tradewith60
  • #25
  • Mar 4, 2012 3:34pm Mar 4, 2012 3:34pm
Quoting 60minuteman
Just trade the chart you're on, its not multi tf...
If 1hr chart sma is above price and 4hr chart is below then which one is more "reliable" or the one you pull the trigger.
In trading, you have to be defensive and aggressive at the same time
  • #26
  • Mar 4, 2012 3:47pm Mar 4, 2012 3:47pm
Quoting Davit
If 1hr chart sma is above price and 4hr chart is below then which one is more "reliable" or the one you pull the trigger.
I have no idea which is more reliable... I trade H4 because it suits me, I like to let the trades do their thing without having to be there all the time.

I would suggest picking a TF that you prefer and just trade that...

Remember we are trying to make it simple so you can repeat the process over and over again and be consistent.

First and foremost the set up has to obey the rules, then youre only decision is wether you want to take the trade or not, you will get plenty of signals using this and I certainly don't trade them all...

let me give you a few examples, and this is also another example why a simple EA will give you bad results...

if a pair moves on average 120 pips a day and your signal candle is 90 pips, would you take it?

if the signal candle is at 7pm on a friday or the first h4 on sunday night... are they risky trades?

if the trend has been sideways for 3 days and the next h4 peeks 3 pips higher than the previous candle... is that a high probability trade?

Paper trade it for a while and soon you will see the easy trades set up and scream for you to take them..
tradewith60
  • #27
  • Mar 4, 2012 3:58pm Mar 4, 2012 3:58pm
Here are GJ and GU current H4 charts, ask yourself which one has been best to trade and why, remember we are trend traders...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screen shot 2012-03-04 at 21.56.38.png Size: 30 KB
Click to Enlarge Name: Screen shot 2012-03-04 at 21.55.55.jpg Size: 35 KB
tradewith60
  • #28
  • Mar 4, 2012 4:01pm Mar 4, 2012 4:01pm
Same scenario with AJ and AU....

Its fairly easy to stack the odds in your favour by picking the right pairs.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screen shot 2012-03-04 at 22.00.22.jpg Size: 49 KB
Click to Enlarge Name: Screen shot 2012-03-04 at 21.59.55.jpg Size: 43 KB
tradewith60
  • #29
  • Mar 4, 2012 4:02pm Mar 4, 2012 4:02pm
Simple price action is the way to go.
  • #30
  • Mar 4, 2012 4:07pm Mar 4, 2012 4:07pm
Quoting 2+2=4ex
Simple price action is the way to go.
absolutely, being able to spot a trend likewise, shorting the yen pairs the last 3 weeks would of been a whole lot harder than longing them..
tradewith60
  • #31
  • Mar 4, 2012 4:09pm Mar 4, 2012 4:09pm
Congratulations on a superb method, 60minuteman
I've been trading a similar method to this for years using a different filter and a slightly shorter time frame .Its very reliable if you just aim for small wins.
Engulfing bars really are an under-appreciated timing tool but EAs never perform as well as an experienced traders brain. No surprise there.
Staying away from the chop is certainly the key to very long runs of winners and short runs of losers.
I try other methods but I keep coming back to the engulfing bar method again and again.
The big thing is to stop tinkering once you've found a consistent method
Well done!
  • #32
  • Mar 4, 2012 4:14pm Mar 4, 2012 4:14pm
Quoting Pip Rage
Congratulations on a superb method, 60minuteman
I've been trading a similar method to this for years using a different filter and a slightly shorter time frame .Its very reliable if you just aim for small wins.
Engulfing bars really are an under-appreciated timing tool but EAs never perform as well as an experienced traders brain. No surprise there.
Staying away from the chop is certainly the key to very long runs of winners and short runs of losers.
I try other methods but I keep coming back to the engulfing bar method again and again.
The...
Cheers piprage and feel free to add any wisdom...

and you are 100% simple can be effective, dont mess with it, dont complicate and add to it...

I do find it strange that outside bars get so little attention, you can find people trading inside bars all over the place... weird!
tradewith60
  • #33
  • Edited Mar 5, 2012 7:59am Mar 4, 2012 4:28pm | Edited Mar 5, 2012 7:59am
SIGNAL 2

Ok, I said I had 2 signals/set ups I use with the buy sell line, so here is the second, with rules and an example

1. below the 50sma only short, above the 50 sma only long

2. the signal candle must close in the bottom 25% of its range for shorts, the top 25% for longs

2a. (for shorts) the high of the signal candle or the previous candle must be the highest high of the last 5 candles

(for longs) the low of the signal candle or the previous candle must be the lowest low of the last 5 candles

3. entry is 1 pip +spread below the low of the signal candle for shorts, above the high for longs, it has to trigger on the very next bar or the trade is invalidated, we need momentum... (cheers billbss for pointing out i'd forgotten that.!)

4. stop loss 1 pip above the high for shorts, 1 pip below the low for longs.

5. target is 1/1 r/r where you can remove risk, close the trade, or close partial.
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2012-03-04 at 22.16.59.jpg Size: 79 KB
tradewith60
  • #34
  • Mar 4, 2012 4:51pm Mar 4, 2012 4:51pm
Does the entrance have to take place the very next bar after the signal candle?
  • #35
  • Mar 4, 2012 4:54pm Mar 4, 2012 4:54pm
I once used the 50 MA thing. It's not bad but causes you to miss some great trades. But great trades are missed all the time so keep up the good work !
  • #36
  • Mar 4, 2012 4:55pm Mar 4, 2012 4:55pm
Quoting billbss
Does the entrance have to take place the very next bar after the signal candle?
Damn!!! you're right, i always always forget to put that bit in!!! thanks Billbss i will edit that
tradewith60
  • #37
  • Mar 4, 2012 4:57pm Mar 4, 2012 4:57pm
Quoting ONEjust1
I once used the 50 MA thing. It's not bad but causes you to miss some great trades. But great trades are missed all the time so keep up the good work !
You're right it does do that, but it will also keep you consistent, 2 steps forward, 1 step back...
tradewith60
  • #38
  • Mar 4, 2012 5:24pm Mar 4, 2012 5:24pm
Quoting 60minuteman
You're right it does do that, but it will also keep you consistent, 2 steps forward, 1 step back...
Well said. "Do what you know and understand". Adopt a methodology and become the Master at trading it.

Best of Luck (you already have the skill).
  • #39
  • Mar 5, 2012 12:07am Mar 5, 2012 12:07am
Nice strategy. Very clear and simple criteria for the trades.
  • #40
  • Mar 5, 2012 12:22am Mar 5, 2012 12:22am
seems good,appreciated your wisdom with a vouch
Trade responsiblypatience is the key/Swing trader
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