GoldenTulip 15m Scalping

PLEASE continue reading at

http://www.forexfactory.com/showthre...82#post7825082

Golden Tulip has evolved.

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How simple can it be: making money by watching two charts, waiting for the right moment. GoldenTulips.

Addedum

Goto addendum 1: The GoldenTulip indicator explained and version 1.0.1.

Grow some tulips

As tulips grow fast and multiply easily, i cannot pick all the flowers by myself. So here's how i do it. Feel free to step in, use this strategy and help improve it, so that we can grow even more en more beautiful tulips.

First things first: mathematical indicators are not fit for trading, as they only tell what has happened and do not have a clue on what can happen in the future. They can however support other strategies and that is how i use some in this strategy.

Why should you believe me? Why should you listen to anything i write here? I really don't know. So just try the strategy for yourself and you will see: almost no losses, and many wins. Up to 200 pips a day and even more if you can spare the time. As long as you stick to the GoldenTulip doctrine...

What is it all about?

Monitor some 15m charts, waiting for a proper reversal candle.

1. See if the reversal is supported by some indicators as well as S&R lines and at last a candle of proof.
2. Open 1 or 2 positions, depending on the band width that is available for the reversal.
3. Fixed StopLoss. Trailing StopLoss. Fixed TakeProfit. Manual Trailing.

The method is as follows:

1. Wait for the right conditions to trade - an EA could help here as an auto alert.
2. Wait for the trigger to be complete.
3. Open 1 or 2 positions. SL = TP = 20 pips.
4. When first position is closed on TP: set second SL to BE and trail on 12-15 pips, or wait for next reversal signal and close manually.

What are the tools?

For this strategy i use

1. the TDI indicator i found on the web.
2. the SemperAugustusGoldenTulip indicator - an eclectic home grown indi.
3. the SemperAugustusTFV indicator - fully home grown. Download here.
4. MT4, or cAlgo. Later this year i will switch to jForex and also make the tools for jForex.

Further more i use patience and sangfroid. As the GoldenTulip doctrine might be simple, i had to learn the hard way not to deviate from the strategy.

I will provide the set of indicators for download in this thread.

I will elaborate on the TFV indicator later on in this thread.

Setup, timeframe and pairs

I open two charts in a 15 minute timeframe, with the indicators above. I only tested and use this strategy for 15m trading, but i think it can be used in any timeframe.

It can be used for al major currencies (EUR, GBP, CHF, USD, JPY, NZD, AUD, CAD).

I always watch two pairs, as i'm satisfied with just a couple of successful trades per day. The two pairs must not cohere. So EURUSD and GBPJPY are a nice setting. Plus they have very low spreads.

Criteria first

For this example, lets go long.

1. There must be at least 20 pips between the current price and the Kijun Sen (also in the SAGT indi).
2. There must also be at least 20 pips between the current price and the EMA10 band.
3. There must be at least 60 pips band width within the Donchian Channel between upper and lower line.
4. Both red and green RSI price lines in the TDI indicator may not meander too close to the yellow line, but must have spread out to the lower blue VB line.
5. Candles left of the lowest pinbar must show a real descending line and may not be cluttered next to each other.
6. There is no economic news moment coming within the hour.
7. The last bar is a typical Lowest Low, preferably but not necessary a long wick with a short body.
8. Preferably trade on the major trend and not against it.

Of course for an upcoming short position things work the same in the opposite direction.

Price Action = Highest High or Lowest Low

Trading Price Action (PA) is nothing more than waiting for the right candle shape – a small body and a large wick – combined with the highest high or lowest low in a row of aprox 5 candles. I call this a HiLoPa moment. As shown left in the image below. On the right you see a fake HiLoPa moment. How much did i want this to be a real one, but it wasn't. So if you would say: the first blue candle proves the reversal upwards and the second one, would even confirm, you would lose money on the third and beyond.

The triggers

The trigger is formed in two possible ways:

1. by completion of the candle of proof.
2. by the TFV dot.

Working with the TFV dot can give more results as well as risks. Waiting for the candle of proof is a secure thing to do.

The candle of proof is the last candle that completes our Long reversal signal. The Low is higher than the previous one discussed above as Criteria. It is a full bodied Long candle. If this candle is closed, you can open positions.

One or two positions

If there is plenty of band width, you can open two identical positions, thus splitting the calculated volume (figure out your own money management) in two parts.

1. Position One has 20 pips SL and 12 pips Trailing Stop and 20 pips TP.
2. Position Two has 20 pips SL and 12 pips Trailing Stop and no TP.

When positions are closed on SL or trailing SL, you're done.

When position One has closed in TP, you can set SL of position Two to BE. Then you can do two things:

1. Let position Two run on its Trailing Stop.
2. Remove Trailing Stop and wait for another reversal bar that meets the same criteria as for opening a position. Then close it manually.

Example

In the setting below i took a double position at (1). The first with a TP at 20 pips, the second closed manually after a clear reversal signal at 45 pips (2). There i stepped in (at the closing of the bar that proved reversal) with one position and took another 20 pips on TP at (3).

I only took one position there, because the margin between price and Kijun Sen was a tight 20 pips and price was already converging around the Kijun Sen.

That's all folks

That's all there is to it folks. I'm not saying this is THE ONE strategy as it is derived from many others. Please leave your comments here.

Rules of engagement

1. Do not focus on the opportunities you missed, but focus on the opportunities you create.
2. Do not focus on the desired results, but focus on the efforts you must make to get the desired results.
3. Do not focus on the money, but focus on the pips.

Finally: a proper introduction of myself

Let me introduce myself properly. I'm Semper, Dutch and living in the Netherlands. I am self employed media professional. I develop concepts for new media (web, app etc). So my job is mainly to sit and think and come up with idea's. The forex trading started for me about nine months ago. I learned a lot and also developed some strategies, partially by myself but mostly by copying others.

Price action trading has been a constant factor for some months now and evolved to this Golden Tulip 15m Scalping Strategy. I trade for fun. I think i just like to be right all the time ;-) The money was secondary until recently. Now i'm going for the big €€€ as i designed a new house, bought a piece of forest and want to have the house build. And because i found out that you don't pay taxes in the Netherlands for money you make with Forex, while i pay 53% over my income i make working.

If you're interested in this strategy, please feel free to share something about yourself. And let me know how your results are with this method. Please stay on topic, but do share.

I will post the indicators and a template in the next post here.

As promised: the indicators for download.

While writing the above post, i took a ride on GBPJPY. 52 pips on a trailing stop.

1. I went against the trend, but there was a large downfall, so it had to go up once.
2. There was not a proper pinbar, but it was a clear Low.
3. There was a large distance to Kijun Sen as well as EMA10 band and the Donchian band width was large.
4. Also TDI was clear on the reversal.

Where i stepped out, there is another reversal pinbar, but this one is really too close to the EMA10 band and the Kijun Sen. Both function as S&R area, so no trades here.

Subscribed........I'm using something quite similar....look forward to more and good luck with your thread!

Thanks 4xplosion. I find this quite an adventure.

Trading is a great adventure ...

Hi Semper

1. There must be at least 25 pips between the lower Donchian Line (supplied by the SemperAugustusGoldenTulip indi) and the centered Kijun Sen (also in the SAGT indi).
2. There must also be at least 20 pips between the lower Donchian Line and the centered EMA10 band.

Measurement is from upper or lower Donchian Line? Or both Donchian Line must be more than 25 (Kijun) and 20 (EMA10) pips?

Sorry for the inconvenience.

Lower lows are usually situated on the lower Donchian. Higher Higs on the upper Donchian.

But to be precise: there must be at least 20-25 pips between current price and Ema10 as well as Kijun Sen. You may off course be satisfied with less band width, but then you probably won't make the full 20 pips.

Thanks for the question, i will correct this in my explanation.

Perhaps there is a chart with the measurement indicated. Thanks

Just made the corrections. Download SemperAugustusGoldenTulip version 1.0.1 here

The different widths are displayed by the SAGT indicator in a label.
The settings for this indicator are:

1. Ema Periods (9) - for the golden Ema band of High and Low in the middle. This is the short term trend. If set to 0, no band visible.
2. DonchianSlowPeriods (52) - the slow band of Highs and Lows. If set to 0, no band visible.
3. DonchainFastPeriods (0) - another (faster) band of Highs and Lows. If set to 0, no band visible.
4. KijunSenPeriods (26) - the Kijun Sen blue line, borrowed from the Ichimoku Kinko Hyo indicator. If set to 0, no band visible. Uses the DonchianSlowPeriods to calculate its value. If DonchianSlowPeriods is set to 0, it uses the standard value of 52. As Tenkan Sen value it uses EmaPeriods or the standard Tenkan Sen value of 9.
5. HiLoBars (6) - A simplyfied way of showing eventual High and Low candles. Can be used as alerter for trade opportunities.

Then some settings for the info label.

1. ShowLabel (4) - the corner to show the label (1 to 4). If set to 0, no label.
2. StopLossPoints (200) - at my broker 200 points = 20 pips. This is only used to calculate trade volume.
3. MaxRiskPromille (20) - is the risk promillage for calculating the volume.

In below image the 5 numbers in the label are all pips x 10 because my brokers measures in points only:

1. Average width of last 5 candles (16)
2. Donchian Slow Width (767)
3. Distance from Donchian Slow Upper to Kijun Sen (306)
4. Distance from Donchian Slow Lower to Kijun Sen (462)
5. Distance from current price to Kijun Sen (279)
6. Spread (2)

Why only highs and lows?

This strategy is fully based on highs and lows. So all indicators tell a different story about highs and lows.

1. The Donchian Channel is a bullit proof indicator used by the illustrious company of Turtles. They saw and used the true value of highs and lows, but only traded with the trend alongside the channel borders. This reversal strategy uses other tools to determine a bounce of this band. It also uses this band to measure if trading is appropriate at the current volatility.
2. The Ema9 (or 10) band is an all round MA for determining the trend. By using the two lines showing High and Low of the Ema10, we get a small channel that warns us against placing trades if price is in or near to this band. Price does not easily bounce of this line so for reversal trading this band is off limit.
3. The Kijun Sen is another distinguished and super valuable member of the Highs and Lows club. It not only shows a strong S&R line, it also shows the trend. Price easily bounces of on this line, but if it breaks through after a reversal, you can enjoy a long and profitable ride.
4. The only Time aspect in this strategy is the timeframe and waiting for a candle to close. As every trader knows: at the end of a timeframe, often shit happens. This is a minor handhold that prevents us from rushing into things.

Hope this is helpful. In a next post i'll elaborate on the Temporary Fair Value indicator.

Semper Augustus

Dear; SemperAugust Please Share Your Template This System..

I thought i shared just about everything i have for this strategy. If it is the MT4 template you mean: hier it is.

I tried to make MT4 look as much as possible like cTrader and cAlgo. Easy to the eyes with as little distraction as possible.

Is it me but I am a little lost here.Hi Semper,I thought the proof candle had to be full bodied,whereas in one of your trades it is not......also what are the yellow dots for?

Tedge

The yellow dots are a very simplified and often wrong indication of highs or lows. Still under development.

And as human as i am, i'm a sinner and often sin against my own doctrine ;-) Most of the times with profit, but if a trade is lost, it's always because of my impatience.

Oh

You are absolutely right Tedge UK. I was looking at the wrong picture. Sorry for that.

The arrow should have been higher up at the second blue candle. That's where you ought to step in. Like in corrected image below.

I was refering to this one,trade number 2

Fortunately i'm a better trader then drawing artist. That top green rectangle should have started lower. I drew it where i stepped out. I stepped in again at the closure of that candle marked with a 2.

Morning Semper,

Do you need to see a bull HiLoPa bar at the bottom or doesn't it matter?

If a pinbar (hilopa ;-) is at the top or bottom of the Donchian channel, it means that it reconnected to a previous high or low. Might be a support or resistance area.

But it is not necessary. More important is that it is low (or high) in a row of lows, because the reversal would be against a strong trend. Nor should you pinbar be in or near to the golden Ema band. As price does not easily escape from that area.

I am not saying that these situations are impossible as they happen al the time, but they are unsure.

What a name btw: Anusragger. You must be Dutch to choose that alias.