5_15 Minute stochastic scalping on 1 Min TF

Hello Everyone,

Here is my simple system which I am using testing it. For me it seems to be profitable. Please provide your feedback on this system.

Buy when the below condition meets:

1. When the price goes above 5 EMA
2. When blue arrow appears on the 15 min stoch
3. When blue arrow appears on the 5 min stoch
4. Exit when red arrow appears on the 5 min stoch

Sell when the below condition meets:

1. When the price goes below 5 EMA
2. When red arrow appears on the 15 min stoch
3. When red arrow appears on the 5 min stoch
4. Exit when blue arrow appears on the 5 min stoch

Attaching the indicator and template.

http://i61.tinypic.com/2j4a6np.png

Looks like basic synergy system to me.

actually i cant catch ur point which tf you are told us to trade m1 or m5 or m15 and i have one question what happen if it repaints ???

does the arrows on the MTF repaints ?

I have just back tested it offline in 1 Min TF. Need to check if it repaints or not when market opens. My guess it should not repaint.

ok sir we will wait for ur reply if it repaints or not after market open

Its easy to trade when continuous arrow displays during stochastic crossed and moves forward. If anyone finds issue during live trading please modify the indicator. I am just testing this if it works or not.

You are using stoch settings 11/3/3 from 5M and 15M to trade the 1M. So basically, you are comparing the 14 SMA of the 5M against the 15M on a 1M chart. If your intent is to trade the 14 SMA on the 15M and/or the 14 SMA on the 5M chart then you don't really need the 1M chart. Your lowest signal is the 5M chart, so you are actually trading the 5M chart.

In other words, your system is really trading the 5M chart SMA 14 and comparing it to the 15M chart SMA 14 for confirmation. You can eliminate a lot of false signals and clutter by using the 5M chart instead of the 1M chart. You do not have a 1M chart system. You have only converted a 5M chart system onto it. You can be profitable when the market is trending, but it will kill you if it ranges. Your indicator setting won't keep up during range trading. Keep on trying

What is the different using a current chart than an offline chart ?

Agree with you. I am not sure if there is any indicator that will work during ranging market. I generally don't like to hold a trade for a long time and will be happy if I get quick 10 points and then exist from the trade. Thats why prefer 1 min time frame where we could eliminate false signals by following 5 and 15 min stoch.
Still needs to see how this system works in live market

Thanks for providing your inputs. Your thoughts are always welcome.

I mean to say I have not seen how the system works in live market. Need to check it on Monday when the market opens.

From the lines you draw on your chart trade 1 to 4. It is obvious you don't have experience with MTF indicators. You will get to know later.

kos

Well we should see how this indicator turns out to be , if its repainting , then this system needs remodelling , if this system doesn repaints then its close to 90% win rate.

Yes. At this stage I could not comment anything. I understand only moving average. I commit that I don't have much experience on any other indicators. I just got inspired to this system by seeing the Genesis trading system where they have used the same settings with Genesis Matrix. I got the MTF Stochastic indicator with arrow alert from other forum and modified it to my convenience. Posted the system for testing with other members. We have lot of experts and coders in this forum. They could provide their inputs and correct it.

just a word of advice , if it does repaints even after the candle closes , then u need to reconfigure the indicators. Btw if it doesnt , just sit back and take the pips .

I trade the 5M chart everyday. The stochastics is not ideal because it cannot show the range properly. It has a tendency to reach its upper/lower range and get stuck there. To compensate I use a stoch 12/1/3, with a 4 SMA and 8 SMA drawn on top of it, but it is not a primary trading indicator. If the market goes flat, it "might" show me the direction the flat part is heading so I can exit at break even or with a little loss or little profit. If the market makes a momentum move, then it shows a good exit. If the market is doing stair steps, it is worthless. Its best use is when you have a move followed by a flat period (or fake reverse) and then a continuation in the same direction.

I also do not care about the 20/80 or 30/70 lines. I use the 50 line as a confirmation. Once it crosses the 50 line, it is the same as crossing the corresponding moving average and is usually a high probability entry point.

In other words, the stochastics is not the best stand alone indicator to use for trading...in my opinion. You have shown a wonderful picture of a historical move. I am not fooled though There are plenty of areas where your indicator will fail you. However, if you are comparing the signal against two time frames I believe that overall you will be in profit. In a range though, by the time the 15M signals, your 5M will be heading the other way. So you are going to be sitting there just watching the market for quite some time.

Realize too, that nearly every indicator is written against the same moving average array. This means if you use an RSI, CCI, QQE, etc...with a period of 11, the only difference will be how the range inside of the indicator is pictured. Some might show you exhaustion better than stochastics, but they will all more or less have the same entry/exit signal. If you find another indicator that more clearly depicts market movement, then delete the stochastics. You only need one indicator set at 11.

There are MTF indicators other than stochastics. You can find some in FF, or you can google for them. One of my favorite junk yards to dig around in is at http://www.forexmt4.com/_MT4_Indicators though their MTF list is small. I am pretty sure there is another site that has quite a few of them and if I remember correctly I have seen threads in FF with a lot of MTF indicators attached.

Good Luck!

lol this indicator is a fail , need remodeling/recoding.