JCP's System – Using Multiple TFs

Some personal background before I get going:
I've worked extremely hard over the last 4-5 years at becoming a successful trader. Unfortunately, most of my experience was extremely painful, with much money lost and extreme stress. After "sobering up" a bit, I finally started thinking clearly about the market, trends, time frames, ect... I then started to break even on a regular basis with a few relapses here and there. Then after a period of consistent success I funded my accounts, and for the last year and a half or so, I've been working my "regular" job part time, while making up the difference trading the other half of the day. The mental transition what the hardest part, as it took almost a year to have full confidence in what I do. So this is where I'm at today. I am continuously working on refining my skills as a trader, even though I am consistent, I believe I can be better.

I'm here opening this thread because it seems it would be very enjoyable to share, discuss and learn. I'm finding there are a lot of great ideas on this site and it's great to be able to converse about them with other interested folks, as my family and friends could care less about the details.

My approach:
I'll outline my strategy in following posts, as I first want to cover my main thought process. My priority when placing an entry is to get it safely to break even as soon as possible. It's usually not right away, as I do allow for fluctuations, but once it has gone my way I usually set it to even, or at least close to it. If it goes against me immediately, I also like to give it a little time and "wiggle room". My goal in this scenario is to get out at even before hitting my SL.

Many of my entries are driven by a bias from Monthly, Weekly and/or Daily. Some of these entries are placed at the close of these bars, although I prefer to enter on the lower time frames. I posted a bit on Hugh's Daily thread which shares some similarities to what I do. It has also sparked some ideas on how I can refine my own process, which I'd like to share here as well. I've got some thoughts on how I can place more orders from daily charts, which could be nice, as I spend a lot of time in front of the computer now, and don't want that to always be the case.

I trade to attain long term positions, but also spend time during the day in and out of trades on the 15M. I'd like to keep the focus of the thread more to the long term trades, or at least the start of it.

More to come...

This is the first system I was ever successful with. It's based on the 30/60 EMAs, it is one of the two EMA pairs I use, I also have a strategy using the 5/8 EMAs. It's very simple and is used on Weekly, Daily, 4H and 2H (2H must be in direction of trend, will explain).

Here's the break down. Wait for the first cross of the ema's, then wait for price to pullback. I'll often enter right at the close, mainly on 4H. Weekly and Daily I prefer entries on the lower TFs.

My SL is place just beyond the most recent peak or valley, although when entering on the lower TFs I will get my SL to even once it get's going. If it's turning against me and hasn't hit my SL, I'll wait for it to come back close to my entry point and get out. The only ones that really work for me are the one's that take off quickly, many are closed at break even.

Target profit really varies for me, and depends on how big the initial move is. I like to let it go as long as possible and will trail my SL at each pullback to the EMA's.

Here's a chart of an entry placed today on the 4H. It's the first CO, the daily is also at the first CO level, I've tried multiple times over the last couple of weeks, so this is just another try. I entered at the close of that first bar just below the EMAs.

Here's a shot of that Daily chart I mentioned above.

Great idea to start your own thread Jcp, I know a lot of people will be interested in your method. I for one will be watching closely, always open to new ideas. Good luck. My vote on this thread has been added

Thanks for the support Hugh, good to have you around.

A quick update on this before moving on. After the close of the second 4H bar, I moved my SL just below the low of the bar that closed beneath the EMAs for a 20 pip loss. There are many times when this would stop me out and move on for hundreds of pips, but this is one case where it saved me from a full loss. Now, I adjust my lot size per my risk % by taking the potential full loss into account.

Here's another sample of a setup on the 4H, and another way I like to approach it. This one I will wait for confirmation on the 15M, and will post charts accordingly. Basically, looking at these setups as opportunities to trade on the lower time frames can be a great way to approach a variety of strategies. It really takes some work and consistency to get a position to stick for the long haul.

By the way, I only look at the crossovers that are at swing high/lows.

So I will continue to follow trades using this method, meanwhile here's a quick summary of the guidelines I follow.

• Weekly and Daily are primarily for bias
• 4H is entered at swing high/low regardless of bias
• 2H is entered with the Daily bias (meaning, cross needs to be in same direction on Daily as the fresh cross is on the 2H)
• Initial (emergency) SL is place just beyond prior peak/valley
• Only enter at first cross overs
• Get SL to BE or as close to it as possible, as quick as possible, but leaving room for some fluctuation.
• Only one entry per day, max. I find that with trading other strategies in tandem, I am good about spreading out my entries, as many of the pairs are moving together and could result in bigger losses, plus it's just impossible to manage.
• Taking profit – I am trying to capture the bulk of a trend. For instance NZDCHF, I'm still in and managed to enter that on lower TF with a couple of good positions at low risk. This one trade can create more profit than months of going in and out.

Not very many stick, this is the downside, but the ones that do are very profitable, making it worthwhile to keep trading this strategy.

I'd like to dive into another strategy next, while following this one with live charts as we go.

Hi JC seems to work how do you determine when to set the stop to break even?
also what other systems do you trade

Hi Stumpy,

That's not a set rule necessarily. Basically, the mindset is that most of the time when price is ready to take off it does it does so quickly, so, I tend to move my SL rather quick once it starts moving. This results in many missed opportunities, but eventually they stick, and I rarely need to take a full loss. Entering these on the shorter TF's really works best, as I am able to try multiple times to get it if the opportunity presents.

I haven't had a chance to get to the other strategy yet, I did go over it some in Hugh's thread, I'm away on vacation for the weekend so should get around to it early next week. I'll also get to the entry method on the shorter TF's, just trying to get my thoughts out clearly, plus waiting for a live opportunity to present itself.

So the 4H is still crossed, just waiting for the 15M to cross and pullback as well for entry. This needs to happen while the 4H cross is still in tact to be valid. Basically, the same principles apply from the higher frame TFs to the 15M for confirmation.

I made other entries around the 27 area today, will post a chart on that in a bit, those are set to BE.

The were a couple of tries on the lower TF's this morning that closed out at BE and 2 Pip loss. It ended up bouncing a 4th time off the line and I still have the position at 27 and it's set to BE. I'll explain further on this entry later, but it basically needs to create an upward channel at least 3 times before reversal entries.

hi JCP how do you get the two differant sets of MAs on the one chart?

Hey Stumpy, sorry for the delay, just back from vacation. I'm able to add up to 5 ema's on the platform I'm using, most should allow for more, as I'm on a web based platform.

This pair ended up crossing back upward which voided the setup. Basically lost 2 pips in all my attempts. The 15M never crossed over until after it was void, so no more attempts were made.

This is the next setup I am watching. The weekly EMAs have recently crossed and price has close below for a signal long.

I will now be looking for opportunities on the 15M, 1H and 4H TFs.

Here's a look at the 15M chart I am watching.

Here's a fresh cross on EU 4H. Will only take this if the 15M crosses up and gives me an opportunity as the Weekly and Daily are both down.

This is the introduction to another setup I use. I prefer the longer TF's for this, MO, WK, and DA.

Attached is a look at a setup that occurred in at the June close. The rules are simple.

• Wait for a fresh cross of the 5/8 EMAs.
• Wait for a pullback bar that closes between or beyond the EMAs with the newly formed trend is still in tact.
• Start looking for opportunities to enter on short TFs, getting SL to breakeven is key