Multiple time frame 24ema

MICRO TRADING

I've come to love the M1 time frame and what i do now is take a short once the m15 Stoch crosses in O/B followed by a M1 Stoch cross in O/B and a close below the 14LWMA.
With the Tops and bottoms addition all I need to do is when i'm in a trade and a H1 and or H4 4LWMA/14LWMA Crossover signal appears (better when both appears almost at the same time) it simply tells me to get ready to add to my positions.
Once that is done I look for a chance to move my earlier position to BE and exit both positions at R/R or S&R or RN or BRN.

BUCKETS LOAD OF PIPS


I've decided that I must keep strictly within my MM parameters -no SL greater than 15pips will be entertained!
My first trade of the month with my system produced +40 pips, had I taken all my signals yesterday, I'd have made a bucket full of pips, but I took just one and did not add on when I got the signal to.

SO FAR SO ?

I have taken stock of the past 1 month and I see the ups and downs and in betweens.
It was a profitable month, but my emotional advancement has not been good enough to close the "profit gap" of my system.
The first few days were trendy but I stayed on the sidelines, I tried to "tame" the M1 TF when it did not need taming and overall missed so many opportunities even during this holiday season.

So how far have I gone?
I realised my most profitable time frame is the M5, M1 can produce a lot of quick entries but I've found that I'm never second guessing my M5 signals as much as I do M1.
I have settled for these settings:
M15 mtf stoch 14,2,2
M1/m5 Stoch 15,1,5
H4 mtf MA 96
H1 mtf MA 24
No more tweaking of these settings please!
Will stick with M5 and only use M1 to enter moves which I have missed on M5.
My assessment of Dec is:-
25 trades my lowest since Sept; had I stuck with M5, I'd have taken a lot more trades before going on vacation;
An improvement in percentage of profit trades from 61% in November to 64% (should have kept trading to further improve this);
Net profit percent was 20% up from 5% in November (should have kept trading to further improve this).

2014 OUTLOOK?
I wont fund a new account yet, but will revive an abandoned one which I can attach a trade explorer on FF and Myfxbook, and see how their analytics will help, when I resume work.
I am committing myself to a weekly target, that will spur me on to STICK TO THE PLAN.
That is:
Minimum of 150 pips weekly and
Average of 30 pips daily.

Piece of cake if I STICK TO THE PLAN!
It's gonna be a great year!

Okay I have to admit it's not easy to just leave your system alone especially when you still have issues with taking all your trades second guessing your signals and the like.

So I have added another aid -Xaphod's ASC Trend-2TF to my M5 and M1, the risk is set to 1 making it as responsive as can be, when both TFs line up it acts as a confirmatory filter for trend and counter trend.

That ought to settle the second guessing issues for good here's how it looks.

MULTIPLE ENTRIES

I got to the office a little late, missed my M30 entry, and as I settled to take a position in M5, my laptop had a near crash so I could not see what was happening in the market, but after I regained access to my computer, the market had exceeded the 5day ADR so I took a scalp position and exited with 8 pips, Iwonder what moved the market next?

I did some thinking, and I saw that I allow my SL to get hit more than 90% of the time but more than 50% of the time, I bail out and my TP is out-shot by price and I concluded it's the old "I can't afford to lose what I've gained and price could turn and hurt me by hitting my SL"

What I decided was to see where exactly can I get signals that price does not move against, now that would allow me leave my trades to run to their TP target, so the hunt is in, in pursuance of that, I had to tweak again and came up with some ideas.

Simply:
1 Make the M15 TF (the control or set-up chart) faster,
2 Make the M1 TF (the trigger chart) slower;
3 Make the equilibrium MA more responsive.

It came to this:-

M15 Stoch settings 8,3,3
M1 Stoch settings 21,3,5
The 14LWMA replaced with LSMA Period 24, typical price.

RULES

BUY WHEN
ASC Trend Bullish;
M1 Stoch is crossing up from 10 or 25 otherwise it must be a divergence;
(crossings from other levels can be taken with half normal lot size);
M15 Stoch is crossing up from 10/25/50/75/90; and,
Price closes above 24LSMA.

SELL WHEN
ASC Trend Bearish;
M1 Stoch is crossing down from 90 or 75 otherwise it must be a divergence;
(crossings from other levels can be taken with half normal lot size);
M15 Stoch is crossing down from 90/75/50/25/10; and,
Price closes above 24LSMA.


I have mentioned M15 Stoch crossing from all the levels (from extreme to extreme) because price can remain in O/B or O/S regions for extended periods.
The bonus in this tweak is that I get to take advantage of HIDDEN DIVERGENCE when it shows up as the 21,3,5 setting displays Divergence so well and so reliably.

Now all I have to do is GET BUSY RAKING IN THE PIPS!

VISUALS

How it looks with an example of a sub-optimal trade that took 11 pips from my account.

MORE VISUALS

I like the line graph as I don't have to bother about candle patterns all I need to see is PRICE closing above or below the MA and my P4L clock tells me when the candle ends.

Nice chart. Can you share your indies?

LIVE OBSERVATION

I may have to adjust the M15 Stoch settings a bit, I've opened a new chart just to observe, though there will always be a trade-off hoping that would be favourable, meanwhile can't trade again today got to be busy on my "j o b" lol.

The list:-
P4L Clock
ICT Big and mid figures
ICT Asian session (opens @ midnight closes @ LO)
MTF MA Crossover Alert
Sc MTF MA
Sc MTF Stochastic
TriggerLines mtf (LSMA)
ASC Trend Matrix 2 TF (Optional cos it agrees most of the time with both Stochs and sometimes lags and prevents profitable entries)

Indies and Template attached

The M15 Stoch is set to 8,3,5
M1 21,3,5

SO FAR, VERY GOOD

I was in and out of the office so could not take advantage of the good moves of today's market.
I'm amazed just following the new rules I've drafted and going over the charts I see abundant opportunities.
It seems now that I can trade with 10 pips SL on my M1, a 10 pips TP can earn me 5%, and that's just 1: R/R and there are opportunities for better R/R multiples.
I settled down later and I saw an opportunity for a quick scalp by way of a Bearish hidden divergence and since it was near support I aimed for 8 pips but set my TP @ 60 pips for take take advantage of positive slippage should I leave my seat suddenly, amazingly price did not retrace more than 4 pips against my position till i took it out in the nick of time.
Meanwhile I'm still comparing M15 Stoch settings of 8,3,3 with 8,3,5.

MORE COMPARISON


Seems like 8,3,5 is saving the day, I went back and saw how today's late asian and early London sessions would have played out with 8,3,5 and ....
8,3,5 has it, just like I settled for 14,3,5 earlier, the 5 slowing smooths out some noise and you have a cleaner curve if you like.

even the beast is tamed

I LOGGED OUT

Thursday was a very good day on the markets but I made a terrible mess of my trading, didn't keep to the rules, chased the news where I should have simply waited for a divergence to continue with the news direction or fade the move back, used too high SL and then too low and was punished both times, I ended the day with a 30% drawdown

I really thought I had this psychological aspect under wraps but guess I was wrong and especially since I had just upped my game to pick positions with 10 pips plus spread and risk 5% yes 5% per trade and target 5, 10,15 even 20% Reward depending on the market flow.

At the end of the day I was so upset, I loggedout of FF (1st time this year) and went home to lick my wounds, imagine loosing the kind of returns some traders dream of in a year in just a single day!

7 trades, 6 losers, 1 winner
30% drawdown.
Had I taken all the correct valid trades as marked in the chart and avoided the incorrect trades, I't would have been,
8 trades, 2 losers 6 winners
40% gain.

MY FOLY

See how it went down

MY REVENGE

Friday morning i visited my Fried Rooi's thread for some inspiration and all those pips nailing gingered me up.

I saw traders trading multiple currency pairs and carting off pips and and i said to myself hey you sure can do this, so I added EURJPY to the mix and took the very first signal I got which would have ended in 10% but for price hitting my capital protection, I was too busy afterwards but still had time for a later day sell which yielded a 10% gain.
In all 2 trades 2 winners 13% gain.
I just need to take all my valid signals and the system will take care of the rest.

BAIL OUT/ RATIONALIZATION

I wanted to start the week with a positive result so i rationalized 2 EURJPY signals as being too close to a BRN and on my first signal on the GBPSUD pair, I couldn't wait to hit my 1/2 target after getting 1/1 R/R and price threatened to reverse on me I bailed out for 12 pips.

The EURJPY signal was good for 10% as well.
I just have to outgrow these vices so that I can close the profit gap of my system.

MIGRATION

I have been trying out another multi time frame indicator it's called !ULTRA OTHER TIME FRAME STOCHASTIC INDICATOR and I am liking the results so far.
I'd be watching it some more to see it's consistency.
I also picked up the Heiken Ashi Oscillator as a momentum filter to add to the mix.