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Using the DASR for successful trading

  • #621
  • Aug 15, 2012 3:02am Aug 15, 2012 3:02am
Quoting jmtini
Hi Eaglepip

Don't know if you've read all the posts above buy it's supposed to be used in conjunction with it's EA.
Yes, I have been reading both threads and have seen mention of the EA.
BTW- Watching LO on EU and it looked like a classic retrace entry after it zoomed up to the DP and fell back. Did you take it?
EP
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  • #622
  • Aug 15, 2012 9:56am Aug 15, 2012 9:56am
Quoting EaglePip
Yes, I have been reading both threads and have seen mention of the EA.
BTW- Watching LO on EU and it looked like a classic retrace entry after it zoomed up to the DP and fell back. Did you take it?
EP
Unfortunately I was tied up with something else and missed it! Which is exactly why I am busy now setting up a VPS in order to set up the price_bounce_off_ma EA which I think will help tremendously especially as it's automatic - no nerves involved!!

Nice afternoon though for selling and good bounce off our 62 envelope (attached)
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  • #623
  • Aug 15, 2012 10:05am Aug 15, 2012 10:05am
Sorry I have not mentioned the setting of SL and TP levels.

Sl can be very tight (5 - 7 pips) )as we don't want the price to break through the 62 EMA . If it does "all bets are off" and we wait for a trend reversal or for the trend to become strong again. In most cases TP can be 20 pips. The EA is set up to take partial profits and then trailing stop which is a great idea if one wants to go more then 20.
  • #624
  • Aug 15, 2012 10:22am Aug 15, 2012 10:22am
Guys I must say that I'm beginning to prefer the JPY pairs for our system - they are definitely not so choppy!


Lovely example today was EURJPY super entry off our "bounce" indicator EMA at around 12.20pm (GMT) was was actually good for 50 pips.

I am trying a short off the new bounce (just now) - not sure how successful it will be as price action penetrated the envelope.
Attached Image (click to enlarge)
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  • #625
  • Aug 15, 2012 12:02pm Aug 15, 2012 12:02pm
Well there you are a perfect example of the system rules. Once price action action has penetrated our 62 EMA envelope, that's it for the day!!
  • #626
  • Aug 15, 2012 12:08pm Aug 15, 2012 12:08pm
Hi jmtini -- Would agree on the JPY pairs ( at least for today ) being less choppy,however that could change on any given day.If you look at GU today unless you were aiming for very small pip profits that chop is going to kill you long term.We may need another input to the ea.If you look at the characteristics of the successful trades today on EU , EJ and CHF/J they all had 1 thing in common in that price moved strongly away from the 62 EMA a minimum of 30 pips before price action moved back ( up ) to the 62 EMA to trigger our entries.So an external input of say Minimum distance travelled from 62 EMA = 30 points could be what is required. GU today was only moving 16 - 20 pips from 62 EMA and created a lot of chop and a lot of trades.I would suggest quality over quantity.Now this is only a quick observation and a lot of experience thrown in to come up with this so I may well be proved wrong and does indeed need further investigation imho.

Just a thought / observation for a filter to what is otherwise an excellent trading idea.





Quoting jmtini
Guys I must say that I'm beginning to prefer the JPY pairs for our system - they are definitely not so choppy!


Lovely example today was EURJPY super entry off our "bounce" indicator EMA at around 12.20pm (GMT) was was actually good for 50 pips.

I am trying a short off the new bounce (just now) - not sure how successful it will be as price action penetrated the envelope.
  • #627
  • Aug 15, 2012 4:09pm Aug 15, 2012 4:09pm
Quoting klw
Hi jmtini -- Would agree on the JPY pairs ( at least for today ) being less choppy,however that could change on any given day.If you look at GU today unless you were aiming for very small pip profits that chop is going to kill you long term.We may need another input to the ea.If you look at the characteristics of the successful trades today on EU , EJ and CHF/J they all had 1 thing in common in that price moved strongly away from the 62 EMA a minimum of 30 pips before price action moved back ( up ) to the 62 EMA to trigger our entries.So an external...
Hi klw

Thanks - it is a great trading method. But in actual fact we've not been using all the indicators on our chart to the full.
Firstly, we must get rid of GBPUSD - you are quite right, the volatility makes it impossible to trade at the moment. I have EURJPY, CHFJPY, AUDUSD, EURUSD & USDCHF - more then enough and they are co-related (EJ to CJ, EU to UC, etc)
Then we need to:
1/ change the settings on our p1m1t indicator
2/ Set up the EA differently depending on how long it's been since the breakout.
3/ Catch the breakout early which I think is the most important way we will be able to greatly increase our daily pip haul.

I've made quite a few pips with the system already but really should have got hundreds more by now and I'm convinced that it's the "only game in town". Catching fast movements using the 5 min chart is great as one can pick up a lot of pips in a very short period of time.

I think in reality that it may be best to actually talk you through some of the trading days that we've had - each day was obviously different and presented a different challenge. Maybe we can use Skype or something. I don't mind because you might even see some other strategy that I may be missing!

Rgds

Jerry
  • #628
  • Aug 15, 2012 5:30pm Aug 15, 2012 5:30pm
Jerry sent you a pm
  • #629
  • Aug 16, 2012 8:43am Aug 16, 2012 8:43am
Well this morning I missed the best set-up which was at 7.00am. Price action broke through our 62 EMA and triggered our tight SL. When price action broke significantly through our 1 hr vegas EMA's (our ultimate resistance) then we needed to look for entries either manually or using our EA off the 62 EMA. If we missed that then we had the other option to look for a break-out of the Asian range. That is what I did and picked up an ultra fast 30 pips! That's a nett 25 so far on this pair.
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  • #630
  • Aug 17, 2012 2:00pm Aug 17, 2012 2:00pm
Firstly looking at Well it was an amazing trading day for our system today with a potential gain
of 120 pips against a loss of 14 pips.

Of course with our "mirror image" of CHFUSD there was a potential of over 200 pips.

I have started up my VPS today and our "price_bounce_off_ma" EA is behaving really well. Set it to bounce ONLY off the 62 EMA with a 6 pip envelope and 6 pip SL is enough.
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  • #631
  • Aug 17, 2012 2:08pm Aug 17, 2012 2:08pm
Well on these two mirrored pairs things were even better.

Four super trading opportunities - all X 2 of course - mirrored pairs!!
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  • #632
  • Aug 18, 2012 9:01am Aug 18, 2012 9:01am
Guys after backtesting and looking ahead now with automated trading in mind, it's going to require a complete change of emphasis and strategy.

Generally we are going to be using our EA but we're also going to use our pending trade strategy to catch breakouts if and when they occur. In this jerky and very volatile market, it's a must that we use both strategies.

I've change my template and deleted a few things. What we want is really less useless trades (trades that go nowhere) and more trades that end end being winners!!
  • #633
  • Aug 19, 2012 9:13pm Aug 19, 2012 9:13pm
Quoting jmtini
Hi everyone

As I mentioned in my last post, our trading strategy is going to change. We are going to use 2 EA's. .
Hi Jerry,
Although this is not a System Thread, since you are reviewing your strategy, I imagine you are not averse to ideas and suggestions. This is a little different to the 2 EA strategy, but with similar goals.
While trying to come up with an indicator to signal bounce of the MA, I noticed:
1. Only looking for bounce trades, misses out on very profitable reversals.
2. Why not use the same Stoch and MAcd reversals to include price reversals OUTSIDE the MA.
3. Filter out Range bound retraces, by excluding signals inside a lesser 50MA envelope.
4. Stop Losses on failed trades are minimised by using the nearest swing hi/lo of the outer envelope.
A chart showing current indicator signals is attached.
EP
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  • #634
  • Aug 20, 2012 7:32am Aug 20, 2012 7:32am
Quoting EaglePip
Hi Jerry,
Although this is not a System Thread, since you are reviewing your strategy, I imagine you are not averse to ideas and suggestions. This is a little different to the 2 EA strategy, but with similar goals.
While trying to come up with an indicator to signal bounce of the MA, I noticed:
1. Only looking for bounce trades, misses out on very profitable reversals.
2. Why not use the same Stoch and MAcd reversals to include price reversals OUTSIDE the MA.
3. Filter out Range bound retraces, by excluding signals inside a lesser 50MA envelope.
4....
Hi Eaglepip

Thanks for your input. I noticed that you're using the 15 min chart? Unfortunately we're only using the 5 min chart.

Agree with you about retraces though. But I rather do think that the way to catch them is to use pending orders under major support areas.
  • #635
  • Aug 20, 2012 12:33pm Aug 20, 2012 12:33pm
Hi everyone

Well it's a learning curve all right

I have deleted the post about changing the system to incorporate two EA's

It doesn't work!!
  • #636
  • Aug 21, 2012 12:03am Aug 21, 2012 12:03am
Quoting jmtini
Hi Eaglepip

....... But I rather do think that the way to catch them is to use pending orders under major support areas.

Yes, using pending orders sounds good and should help avoid some of the whipsaws. Will have to work on the details and give it a try.
Got an early signal yesterday on LO, but got out too soon when price stalled.
Need to work on confidence to stay the distance.
EP
  • #637
  • Aug 21, 2012 8:16am Aug 21, 2012 8:16am
Quoting EaglePip
Yes, using pending orders sounds good and should help avoid some of the whipsaws. Will have to work on the details and give it a try.
Got an early signal yesterday on LO, but got out too soon when price stalled.
Need to work on confidence to stay the distance.
EP
Hi EaglePip

Yes - although we got a second chance on London opening today, it's vital to be up at least 10 mins before Frankfurt opening. Even today one could have picked up an easy 20 pips before that drop that occurred just before London opening. Of course if we had our price_bounce_off_62EMA EA working we would be sitting now with an awful lot of pips!! BTW I managed to find a really nice indicator for market opening lines which helps a lot.

Here is my FINAL template guys - BACKTESTED - BACKTESTED - BACkTESTED!!
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  • #638
  • Aug 21, 2012 8:21am Aug 21, 2012 8:21am
OK

So this morning we had a really fast trend so far. Way above our 62 EMA

So what do we do? Simply change our template to bounce price off the EMA where the action is!

Here is the one you can use:
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  • #639
  • Aug 21, 2012 8:42am Aug 21, 2012 8:42am
OK so price is even above our 24 EMA (last chart)

SO WE WAIT!!


When we miss a good entry point - better to wait for the next one. Don't force the market to conform to us by entering a "in hope" trade - we always follow, never lead!

If you are wondering where the extra lines came from I'm using that follow the candles on our main chart - open two 5 SMA's - one set to the close (blue) and one set to the open (red). Helps to see more clearly the direction of the trend as well as other uses I elaborate on later!
  • #640
  • Aug 21, 2012 12:23pm Aug 21, 2012 12:23pm
Hi everyone

Forgot to post the templates.

1/ Main template

2/ Fast trend movement 24/28 EMA template (with dotted 20 SMA line for those who want to gamble a bit more!)


Obviously when price action signicantly breaks through the 24/28 EMA and 5 high/low lines on main template change direction, we look to trade in the opposite direction!
Attached File(s)
File Type: tpl 5 min template.tpl   116 KB | 219 downloads
File Type: tpl fast trend.tpl   30 KB | 179 downloads
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