"Katana Trading Strategy"

Going along nicely still.

Nice !

Nice shooting Musashi !

This sort of flies in the face of those on this forum tooting 80-90% wins.
As shown profitability is solely not about a methods winning %. but everything to do with R/R%...keeping losses small and wins larger.



Well done

Cheers

Bluesteele

You know what the most difficult thing is? It's taking those run of losses in a row and then the self doubt kicks in, however knowing that all it takes is one or two trades at r:r 1:2 and 1:3 to wipe out a run of losses keeps you going.

Self Discipline to stick to your exit and to move your stop in the direction of the trade is what is needed to achieve those higher r:r wins.

The market might range more than it trends, but when it trends, that's when you make money. Simple as that.

Identification of a possible trend is one of the most important aspects to any trading plan. We can anticipate the beginning of a trend by looking for congestion in the market, this can be seen on any time frame or on any price bar chart.

Typically once price moves outside of a congestion area, it will move/trend to the next congestion area. This is basically how the market moves. It moves from one congestion level to the next.

Identification of a pull back against the trend and then the subsequent continuation of the trend is one of the most difficult things to do.

Look for factors that might indicate this could be the end of a pull back.

Such factors to me are,

1. Price reaches a previous intraday support or resistance level, previous end of day support or resistance level.

2. Price reaches a xx25 xx50 xx75 xx00 level.

3. Price comes back to a 50% fibonacci ratio level ( 50% fib level in a trending environment will quite often signal the beginning of another wave in the trend ).

4. Stochastic indicator is indicating a level where price has pulled back enough to consider the end of a move is about to occur.

5. Price is above / below all the moving averages.

Those are the main factors to me that will indicate a potential area on the chart where price may continue in the direction of the trend.

This is but one strategy to use to trade the market.

There are indeed others, such as breakouts out of a congestion areas, price pattern recognition, new daily lows, new daily highs and so on and so on.

Hi Musashi,
...Oi Oi Oi.......
thanks for making time to share your strategy in this thread of yours. I just found it last night and still reading through the pages.

The way I trade is quite similar with yours. My question is, do you only see chart setups in 1 timeframe only?
and do you pull your fibs on daily hi n low or on the very last trend movement ?

i'm gonna continue my reading


cheers mate...

i got carried away and forgot it's range bar..
the fib question remains...

err..has this thread move to somewhere else ?

anyways, i'll just post and hope a samurai in here would share his thoughts

http://i50.tinypic.com/4qq45l.gif

This is EU chart today which happened couple minutes ago.
This is a chart setup that i usually enter.
Price retrace from A and open position on breakout at B.

Would any of you enter earlier ? if yes, what's the reason on your entry ?
If not, why ?

I'm following M on twitter but he didn't trade this one.

just for my interest of people trading range bars /renko bars

Thoughts: RangeBar/RenkoBar how to do it?

http://www.forexfactory.com/showthread.php?t=392781

thanks
Ati

Is anyone still trading range bars and found it profitable compared to time-based charts?

just recently looked at price change bars. didnt understand them until now. esignal memeber so it is easy to load these charts, but they only supply about 21 days of historical data to back test strategy, but at a 10 price change bar setting, that is thousands of bars. looks more like normal candlesticks than range bars, which i have been using and feel that they give a better look at trend than time based bars. range bars do not present a visual of the consolidation of prices like price change bars do. a range bar might only print one bar over a two or three, four or longer hour time frame, depending on the activity. the price change bar does present a great visual of prices meandering around a small price area with many price changes, back and forth, until the required number of price changes has taken place. a 10p chart might print an hour of prices going back and forth around a few pips, showing the quiet before the movement in a new trend, (i do like to trade very small time frames, but i spend hours watching the markets).

a range bar might show one bar with an open at the low and close at the high for a 10 pip range and take more than an hour to do so. a 10P price change bar would show several candles in the same time period with the price bouncing up a few pips and down a few pips, clearly an inactive market or simply consolidation around a price level. it is fascinating to compare a 5 minute chart to a 10P chart. an engulfing candle in a 5 minute chart might look like an orderly trend upwards on a 10P chart, with many candles formed with pullbacks (flags and pennants) to give opportunities to enter for 10 or more pip gains, or losses if it goes against the short term trend.

incase you are curious, esignal costs me 190 each month, usd, and i dont have an indicator for the trading vehicle most people use with the free charts. possibly there is an indicator out there for that, but i dont have one.

.

trading vehicle... i was referring to a program such as metatrader. depending on your broker, some brokers use their own trading platform and some use metatrader. my error was in referring to it as a vehicle instead of a trading platform.

a price change bar is a candlestick that uses a preset number of times a currency pair changes their price instead of posting after a set number of minutes or a set range of pips. in a 10P price chane bar, if a currency goes up one pip then down one pip, and does this 5 times, then price has changed 10 times yet it has only traveled two pips, one up, one down. a candle stick will post that has a range of two pips. some charts i look at have a 500P price change bar, which would indicate that prices change 500 times. that might mean that it fluctuates up or down a few pips, yet price changed 500 times. if this posts a doji, possibly a shooting star doji, then this is a good indication of a top of a swing since the price changed 500 times, yet opens and closes on the same price. an engulfing bar of 500P, would indicate that prices have consistently gone up for 500 price changes and open and closed at the extremes.

price change bars have no relationship to time, since prices might take hours to change in a slow time, and have no relationship to range, since prices can fluctuate back and forth in a small range for a long time.

one aspect of price change bars is that they seem to draw boxes and pennants much clearer than time charts and range charts, and range charts really dont draw flags and pennants well at all.

other indicators, which i dont use, look clearer. moving averages seem smoother than time charts. esignal web site has a brief explanation of these bars.

Does anyone know where to find or download a "gapless" range bar EA? Most range bar EAs had a gap of 1 pip before the next bar opens. I'm looking for the gapless version.

I use www.az-invest.eu scripts and indicators for Range bars, Renko Bars, and Median Renko. Excellent performance. To avoid GAPS, I use the parameter, refresh on History update.

Hope it helps

By "gapless", I meant the gap between the previous bar and the next bar. On MT4 indicator/EA, there is always this 1pip gap. But for TradeStation chart, there is no gap between each candle. Thanks for the link, I will search for the gapless range bar EA there.

mmaker,

or you could request a Range Bar indicator here: www.tradingsimulator.net

I have a commercial one, and the above indicator mentioned is better.

Regards

g

Found a version of range bar script here:
http://www.forexfactory.com/showthre...73#post4049673

good post.