PinBar Trading

So I've been discussing this with my friends for some time and no matter how bad scenarios we apply, we still find this method profitable. Take a look and let me know what you think.

As far as I'm concerned James16 thread method combines pin bar trading with standard TA to make trading decisions. I'm not a big fun of long term trading so I tried to apply this method on shorter TF. And here it is, apparently a system that is capable of making 10+% a day. I've been testing it on demo and so far I've got an average of 21% return a day, never risking more than 2.5% of equity per any given trade. Systems seems to do worse during Asian open - just keep it in mind.

So here we go,

TF: M15
Pair: EUR (that's the one I traded demo), but GBPUSD, USDCHF, EURGBP should do fine as well.

ENTRY:
Whenever you have a pin bar on a M15 TF, you place an order exactly at pin bar's high or a pip above. To make sure your profits exceed losses you place another order (same lot size) 5 pips above that level.

EXIT:

EXIT 1:
Exit is as far as your pin bar dictates you to place it, i.e., if pin bar from low to high is 10points you place your TP at 10points from the first entry level.

EXIT 2:
A candle thing. Whenever previous bar's low is exceeded you exit both orders.

That would be for long. Analogically for short. Take a look at the chart and please share your thoughts. I'll try to find some time on the weekend to code it to an operational EA. Meanwhile let's try to find some down side of this approach.

please explain your entry as far as are you only putting buy stops if trend is up? only one order direction at a time? how is SL determined, exactly?

also, isnt the next two candles actually pin bars? the one you highlighted seems to have a longish body to me for a pin bar.
thanks

Not a trend really.. You see, on all the forums you will find that 'trend is your best friend'. The fact is that trend is a bitch. It will change a direction at the exact moment you don't expect it. So how about forgetting trends for a moment? Let's focus on PA.

I'm not sure what you didn't get about the entry my friend. Perhaps the pin bar. So this is my def.:

A Pin Bar:
Any given bar that's low/high exceeds previous bar's low/high, and it's close is higher(for long)/lower(for short) than bar's open. (See the example chart and where the arrows are.)

The system implies that you shall place a pending order at the high/low of a pin bar but it's not always possible due to your broker's limitations about how far from a current price you can place an order, so if you can't place a pending order, you than do a market order (as long as conditions are met).

So forget 'one at the time in one direction'. Let's be 'dumb' and blindly follow the rules. Your balance will be green. The thing is that this system doesn't have 99% accurecy. It makes mistakes. In this business you can never expect 100%. If you want this, then go and get yourself a full-time job. In trading the only thing you need is high expectancy, i.e. higher returns than loses(simply put). It happens quite often that price breaks the recent's bar low/high by one pip and never get's to TP. This is why you have the second order - to make the odds in your favor.

SL:
Simply the pin bar's low/high. Or if you prefer lower risk and lower accurecy than half of the pin bar. You can also get your SL to BE whenever first TP target is met. That's reasonable. You shouldn't get hurt by doing so.

I agree with the pipster, I don't see a traditional PB where your entry is indicated. And I found that PBs that don't occur at a swing high or low are much less reliable. A PB should have a tail 2 to 2 1/2 times the length of the candle body and the other wick/shadow should be very short or non existent. I am interested in seeing further entries, thanks for posting.

i have been using pin bars since i went live in feb 2012, small sizes only.

then someone in FF shared this indi. i found out that pin bars rejecting pivot prices are highly profitable. but instead of regular pivots, i'm using the camarilla pivots without the "midpivots" which are just pierced thru and PA never seem to jump off of them.

attached is an example in M5. i believe the logic also works in higher TF's too i just have time to watch M5.

This approach is very similar to "Jankones" thread


http://www.forexfactory.com/showthread.php?t=163972

Yeap...those are the only pinbars that I am familiar with

Will you consider sharing the indicators please?