SAR Method on 4hr Charts

what would be the actual setting gbpusd H4 (GMT+2):
SAR from long to short around 1.6315?

Your question is unclear...I'm not sure what "setting" you are referring to...unless it is for the EA in which case I'll let the EA author respond.

right now, I would be in a long around 1.6390 with a SAR @1.6315

iwjw,

I'm not sure exactly what you are asking here. If you could rephrase your question, it may make it easier. It does look like a very sideways market at the moment, probably due to the fact that the western world is getting into the festive season for Christmas. Volume won't be up until early January now so it is a good time to take a bit of a break or greatly reduce position size. Cheers. Jim

It's only a theoretical question about the position of the blue and the red line - finding the first trade so to say
I would have opened a long with the 3. candle from the right at the break of the high of the 8. candle from the right (where the prior short got stopped out) and a stop&reverse at the low of 4. candle (swing low)
My question is whether that is a correct trade area not whether the trade would make sense at all

Cant thank you enough for this great system buff----so simple--so obvious. Great.

Messed up my lines in the prior chart
Long entry during the bar with the arrow
Would this one be correct?

IRISH37, thanks for the support. Much appreciated.

iwjw,

I can't see a problem with your entry on the candle with the arrow. My only issue would be that I would have moved the SAR level up to the low of those two candles about 4 to the right of the big spike up candle. You have four yellow lines in play and that bearish candle takes you out down below the bottom yellow line. The next bullish candle, which is nearly exactly the same range, takes you nicely back into the yellow lines. My SAR level would have been moved up to that low. So obviously now, I would be short. As stated earlier, the market will wither move on low volume or just meander sideways during this holiday period. I have made some decent money at this time of the year in the past, but also had some flat markets that become quite frustrating. Trading is a bit like professional gambling where you are always looking for an edge and putting yourself in a better position to win. This time of the year is just hit and miss, therefore no edge in my opinion. Take a break and come back fresh in mid Jan. If you do want to continue trading, reduce your risk, or work on development. The market will be there when you come back. Cheers.

Hi,

How do you trade lower timeframes. Do you proceed manually or with pending orders? The spread does not allow me to set stop orders directly to the trigger lines.

Thanks

buff,
thanks for your explanation
It's currently for just getting used to it and not to forget to move a line (SAR) when it should have been moved
So sideways market maybe a good excercise

I like this system very much, and have adapted it to my trading style.
I have been trading it on the hourly timeframe and i only move the SAR an hour before exchange closes.
This way i can keep working my day job and once a day update the lines.
I have backtested 2013 manually, and it gave me some good results, only one month with a small loss.
I've had a 50% win/loss ratio, but winners outrun the losers, biggest winner was more then 8 x max looser.

Thanks again Buff, and gspajon thanks for the extra information.

Hello Jim , Have been reading your excellent thread, thank you for your explanations. But many of us are not english speakers. ¿could you made a written explantion? Regards

Chake

whick pair did your backtest?

No forex slait73, i backtested a future, i allmost only trade futures.
Wich future i tested does not matter, it is better if you test your own because that is most important to get a feel for the system and convidence in the system.

Thanks for the updates guys. Good to see others are getting some benefit from this system.

Dibanos, I'll try and do up a word doc that I can attach to this thread. This will hopefully give you a better understanding of the method. It is actually a lot easier to explain by video, but I'll see what I can do. Give me a couple of weeks though as I am at home enjoying Christmas. Head back to PNG in early Jan so I'll be able to do it up once I get back there.

For those that celebrate Christmas, Merry Christmas and Happy New Year to you and your families. Stay safe and enjoy, and may the trading gods smile on you in 2014! Cheers. Jim

Super result for the week-----brilliant system. Mega thanks.

Good example here of what Buff was saying about fudging a few pips on your entries. This double would have gotten you in long before it turned back down. Now it may flip again and go back up but better to play it safe.

You also may notice the 200 ema I have on the chart. Was thinking about filtering the trades and only taking in the direction of the longer term trend.
Any thoughts on that...Buff...others?

I am not a fan of adding a "buffer" to the SAR. Simply because the buffer size then becomes a distraction issue...is it really "playing it safe" to allow an even larger stop? I don't really know, but the point is the buffer and the concern of, "am I going the right direction" distracts from the real point...this market is ranging. So it is during this time you may want to actually TIGHTEN your stops to hold on to profit and NOT stop-and-reverse (SAR). Perhaps let the market range until the holidays are over then get back in when a trend is more likely to form.

If you want to ride a LOOOONG trend I suggest using a daily or weekly chart, but then your stops will be larger...that's just the way the game is played. All price/time relationships (time frames) have periods of ranging. The real art is in knowing when to trade inside a range (using a smaller time frame) and when to just stay away. I've been getting whipped a bit by this pair and by Gold...indeed most all the pairs are in large ranges...so I decided to leave it alone and see what happens after the new year.

Again...when the big trend starts, this method will have you in on the right side...then its just a matter of how long can your ride it before losing the wave on a consolidation period.

Hey guys,

Attached is a basic word doc that is a guide for this method. If you already understand the method, there is probably no need to read it. One thing I did forget to mention, is probably what is discussed above with regards to a buffer when placing trades. On the 4hr chart I tend to place my stops/orders 10 pips above/below the high/lows. That is my buffer. On the 1hr chart we use to use 1 pip but we also took the spread into consideration. It is a little rough around the edges and if anyone believes I missed anything in it, feel free to give me an uppercut and advise me.

There was a question about adding a MA to act as a filter. That is entirely up you. Me, I like to keep the chart clean and free of all indicators when trading this method. Cheers. Jim

Buff,

Thanks so much for the word doc. This method would be hard to put into words and personally I thought your videos were perfect.

I like this method a lot but one does need to understand that you are buying and selling right at support and resistance levels. Therefor one must realize that there are usually a few losers to withstand before that winning big move in the opposite direction. In other words its a trend follower which means lower win rate with higher risk:reward.

It's simple, easy to follow for longer term trades, and if you can be patient with good money management, I believe profitable in the long term.

Thanks for the pairs suggestion. The whole correlation thing is not easy to figure out.

Thanks for the method. Been at this for a long time and one comes to recognize the merits of a good method.

Mike