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Trading Made Simple for Day Charts

  • #2,161
  • Apr 11, 2015 2:54pm Apr 11, 2015 2:54pm
Not too active on FX this week - here is a simple one on GBP/AUD for 147 pips - single entry and manually closing when price hit the 100ema
Attached Image (click to enlarge)
Click to Enlarge Name: gbp aud day 4-11-2015.gif Size: 8 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,162
  • Apr 11, 2015 2:55pm Apr 11, 2015 2:55pm
Quoting kingclarence
Good to see this thread still alive. After a long hiatus im gonna get back on the wagon
Hi Clarence - thanks for checking in - hope to see some charts from you soon
"To live with Passion, it takes Courage and Grace to survive"
  • #2,163
  • Apr 11, 2015 3:20pm Apr 11, 2015 3:20pm
Here would be the recent entries on GBP/AUD.

One thing of note is that for each entry opportunity, the TSL is moving in the same direction as the proposed trade entry. It's a patience thing
Attached Image (click to enlarge)
Click to Enlarge Name: GBPAUDDaily 4-11-2015 2.png Size: 65 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,164
  • Apr 11, 2015 4:53pm Apr 11, 2015 4:53pm
To get a feel for how this works with waiting for the TSL to move in the same direction as the proposed trade, expand your indicator window 1 to full screen and add a vertical line for TDI crosses where both RSI and TSL have crossed and are moving in the same direction. Then pull the window back down and see what this would have yielded with regards to the # of pips won / lost.

Next step is run through some manual back tests and use the F12 button and advance one candle at a time - when you see a cross that is valid, mark with the vertical line. Rinse, repeat and see how this approach works.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPAUDDaily 4-11-2015 tdi.png Size: 65 KB
Click to Enlarge Name: GBPAUDDaily 4-11-2015 tdi 2.png Size: 67 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,165
  • Apr 12, 2015 12:05pm Apr 12, 2015 12:05pm
Just saw the following re-posted on the TMS thread which was a post from Big E as he was teaching on what he looks for before each entry - worth re-posting here

Your safest trades will always be when green crosses red and you enter on candle 1 or 2... odds are in your favor. Why? Because I'm expecting 3-8 candles... which is average...

With bounce trades the odds are lower for your success... but it still works.

When wanting to enter a TDI trade... take a moment first to observe basic 4x things... like:

How close am I to the previous high or lo (for the day charts this will be the weekly S/R levels)

Am I in an uptrend or downtrend.. short & long term... (for the day charts, we are usually looking for reversals or trend continuations after a pause)

Am I in or close to a consolidation area

Are the previous candles small...

Look at the candles on the last reversal... big, little, what

How does the momentum look right now (12-2, 4-6) (referring to the TDI momentum with regards to a clock face)

Does Stoch's confirm the TDI signal - I am not using stochastics, (this was part of Big E's original method, but he stopped using it.)

Sounds like a lot of stuff but it's basic stuff and only takes a moment to observe it...

If you don't already know these things... don't trade live yet... www.babypips.com is a good place to learn about the basics of trading 4X.

http://www.forexfactory.com/showthre...40#post4581540
"To live with Passion, it takes Courage and Grace to survive"
  • #2,166
  • Apr 12, 2015 1:02pm Apr 12, 2015 1:02pm
Quoting Britpip7
...worth re-posting...
Absolutely worth. Thank you for reminding Britpip7!
  • #2,167
  • Apr 13, 2015 5:50am Apr 13, 2015 5:50am
Quoting Britpip7
{quote} Currently I enter with 3 entries as individual trades about 5 pips apart. This means I can close them manually one at a time and with the stupid USA broker rules for FIFO this does work. I am looking to run TP1 and then move to BE after that triggers, for TP2 and TP3, run the SL to the previous candle low - this would result in both being stopped out on April 3rd pull back. Any trade resulting in profit is a good thing - closing too early sometimes leaves you regretting it because that can "lose" several hundred pips. I have done this many...

Hey BP,

Thanks for all your charts and information. I was wondering if you could explain how you determine your TP1/2/3? I currently use a combination of SL at 1x7ATR or close by previous high/low, and a TP1@150 pips and TP2@ 3x7ATR, I move SL to BE on +40pips. I have previously used different TP levels (Fibs, high lows, TDI going flat, weak candle close)

I often get a good run of 150-250+ (TP1 Hit) then get another good run up to 200-350 but then I often get stopped out by the 1x7ATR trailing SL (missing out on 80-170 pips) before the continuation of the trend even further. Using my previous TP methods I was finding the same thing happening... closing out too early before the continuation of the trend.

So I was wondering if you have a basic TP stratigy that you use and then if you would possibly explain what else you look for to prevent this occurring over and over again. I know any green pips are great but I'm looking to gain 70-80% of the move rather than 30-40%. Thanks BP. Ill post a Shot of a trade on the EU I'm currently in which I can see going that way. (TP1 hit at 150, current trailing stop is at 151...
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot (301).png Size: 123 KB
  • #2,168
  • Apr 13, 2015 8:10am Apr 13, 2015 8:10am
Hi guys,
Please, could you share the WatchDog indy.. Regards
  • #2,169
  • Apr 13, 2015 8:28am Apr 13, 2015 8:28am
Explore the forum for yourself some Miche, go to the top right of the page, click on the staple, then in file attachments, it's on page 3.
"You know what needs to be addressed , completely completely reverse that".
  • #2,170
  • Apr 13, 2015 9:40am Apr 13, 2015 9:40am
Thank you Kmw, so I just need to change setting of the RSI period to 3 and TSL to 8. Regards

Quoting Kmw
Explore the forum for yourself some Miche, go to the top right of the page, click on the staple, then in file attachments, it's on page 3.
  • #2,171
  • Apr 13, 2015 11:58pm Apr 13, 2015 11:58pm
Quoting GreenGoblin
{quote} Hey BP, Thanks for all your charts and information. I was wondering if you could explain how you determine your TP1/2/3? I currently use a combination of SL at 1x7ATR or close by previous high/low, and a TP1@150 pips and TP2@ 3x7ATR, I move SL to BE on +40pips. I have previously used different TP levels (Fibs, high lows, TDI going flat, weak candle close) I often get a good run of 150-250+ (TP1 Hit) then get another good run up to 200-350 but then I often get stopped out by the 1x7ATR trailing SL (missing out on 80-170 pips) before the continuation...
If you can crack this problem, you get the keys to the kingdom

I typically place my SL at the bottom of the previous candle for long trades after TP1 is hit (1xATR7), so the main issue here is when the price spikes beyond the ATR 7 value.

Mostly it will depend on your risk tolerance as to how many pips you are willing to sacrifice in the hope of getting the large trend runs, so you can always test out the theory of using a trailing stop of 1.5 x atr 7 on the day candle, but that can be 300+ pips sacrificed on TP2 and TP3.

In the attached chart, pa gets to a profit of 480 pips, but with the SL at the bottom of the APB candle, this gives up 260pips on each of TP2 and TP3, so the combined profit for each of the entries would have been 410 pips out of a possible 1,000 pips.

Not sure there is a scientific response to your question - I too suffer from this on the longer term trends. In the end I take the hits and look for re-entries from a new cross or TDI bounce.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp aud 4-13-2015.gif Size: 17 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,172
  • Apr 14, 2015 12:13am Apr 14, 2015 12:13am
Quoting Britpip7
{quote} If you can crack this problem, you get the keys to the kingdom I typically place my SL at the bottom of the previous candle for long trades after TP1 is hit (1xATR7), so the main issue here is when the price spikes beyond the ATR 7 value. Mostly it will depend on your risk tolerance as to how many pips you are willing to sacrifice in the hope of getting the large trend runs, so you can always test out the theory of using a trailing stop of 1.5 x atr 7 on the day candle, but that can be 300+ pips sacrificed on TP2 and TP3. In the attached...
Just my 2 cents here but here's how I do it. 03 trades opened at same price with pending orders( buy/sell stop). First profit taken when price is equal to the size of the trigger candle(set and forget), second profit taken when present tdi hooks or crosses( individual preference), let the third trade run till the htf tdi changes direction. On the daily tf the third trade sometimes goes on for more than a month with huge pips. I am not in the position,but someone trading full lots would need a pick-up, wheelbarrow wouldn't suffice.
  • #2,173
  • Apr 14, 2015 4:09am Apr 14, 2015 4:09am
Quoting Britpip7
{quote} If you can crack this problem, you get the keys to the kingdom I typically place my SL at the bottom of the previous candle for long trades after TP1 is hit (1xATR7), so the main issue here is when the price spikes beyond the ATR 7 value. Mostly it will depend on your risk tolerance as to how many pips you are willing to sacrifice in the hope of getting the large trend runs, so you can always test out the theory of using a trailing stop of 1.5 x atr 7 on the day candle, but that can be 300+ pips sacrificed on TP2 and TP3. In the attached...
Thanks for the reply BP and Csethna,
I shall try your TP method Csethna, I guess you move your stops on TP2+3 when TP1 is hit.

In terms of risk reward I like the 3x1 ratio so I will have to do a bit of back testing number crunching to see what kinda stops/risk I'm taking before getting in to BE. As I stated in my last post I currently use capital protection at 40pips, I'm sure anyone else using CP knows it has its pros and cons when it comes to the daily range trading.

As a little side note to anyone starting out, moving on to the day charts was eye opening for me, work through this form, understand it through a demo account for minimum 3 months profitable trading, stick to the method, patience is key to success.
  • #2,174
  • Apr 14, 2015 4:19am Apr 14, 2015 4:19am
Quoting GreenGoblin
{quote} Thanks for the reply BP and Csethna, I shall try your TP method Csethna, I guess you move your stops on TP2+3 when TP1 is hit. In terms of risk reward I like the 3x1 ratio so I will have to do a bit of back testing number crunching to see what kinda stops/risk I'm taking before getting in to BE. As I stated in my last post I currently use capital protection at 40pips, I'm sure anyone else using CP knows it has its pros and cons when it comes to the daily range trading. As a little side note to anyone starting out, moving on to the day charts...
Hi GG, after first target achieved,I move the stoploss for targets 2 & 3 to entry price.
  • #2,175
  • Apr 14, 2015 1:44pm Apr 14, 2015 1:44pm
Quoting csethna
{quote} Hi GG, after first target achieved,I move the stoploss for targets 2 & 3 to entry price.
Hey, yeah thanks, I figured that would be your strategy.

As I though I ended up getting stopped out on the EU trade for +152 pips, I know this is good but I'm looking at settling for 250-300 range when it comes, I find I get stopped out around the 150 range more often than managing to stay in a trade for the 350+pip swing, still looking at a few options using small amounts but the risk/reward for me might mean all I can manage is the 200-300 range, key to any trading is managing risk and I'm not happy leaving myself open to a huge stop after the pips have been made. Always a possibility of a re-entry signal but I would always wait on the TDI confirming that, and I risk a lot less if we are not crossing the 68 or 50 line.
  • #2,176
  • Apr 21, 2015 8:51pm Apr 21, 2015 8:51pm
Looking at GBPCAD as a potential canadidate should it manage to find some legs to the upside here. The purple line is the 200 EMA, would be looking for an entry above there.

Weekly trend is not yet turning around, will be watching for this as well before entry.

Thoughts?

PS : don't worry about the sell trade, that is from another open short term trade that is for an unrelated(and failing for this trade!) strategy.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPCAD 4-21-15.png Size: 170 KB
  • #2,177
  • Apr 22, 2015 4:11pm Apr 22, 2015 4:11pm
Quoting mess7777
Looking at GBPCAD as a potential canadidate should it manage to find some legs to the upside here. The purple line is the 200 EMA, would be looking for an entry above there. Weekly trend is not yet turning around, will be watching for this as well before entry. Thoughts? PS : don't worry about the sell trade, that is from another open short term trade that is for an unrelated(and failing for this trade!) strategy. {image}
Just watching on the Day chart, you have a confirmed cross on TDI coming up from the 32 zone on a second white APB

TSL has moved to an upwards direction, so this is also good - all of the GBP pairs are showing strength at this time.

PA is running into the 200EMA which may cause an issue with price stalling and the price channel is looking as another possible issue here.

There was a similar move late in March that only resulted in 3 white candles, so caution if entering as you are now on to candle #3.

The next level of Resistance kicks in around the 1.8500 area.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GBPCADWeekly 4-22-2015.png Size: 45 KB
Click to Enlarge Name: GBPCADDaily 4-22-2015.png Size: 51 KB
"To live with Passion, it takes Courage and Grace to survive"
  • #2,178
  • Apr 23, 2015 8:28pm Apr 23, 2015 8:28pm
Hi to all senior trader!
I'm new here. I'm interested in Day trading as my day job and other commitments suits this. Hopefully, Britpip7 and other senior traders will guide me.

Regards,
Winners Never Quit, Quitters Never Win
  • #2,179
  • Apr 24, 2015 11:39am Apr 24, 2015 11:39am
Quoting hsn100
Hi to all senior trader! I'm new here. I'm interested in Day trading as my day job and other commitments suits this. Hopefully, Britpip7 and other senior traders will guide me. Regards,
Welcome to the thread - Post #1 is still valid and reading the last couple of pages will give you the current thoughts on the process
"To live with Passion, it takes Courage and Grace to survive"
  • #2,180
  • Apr 24, 2015 12:07pm Apr 24, 2015 12:07pm
EUR/CAD looks interesting from a Price Action viewpoint and ignoring all of the current news.

Price is coming off of a Weekly s/r/ level at 1.3100, so if price can close at the current levels, an entry on the next candle could be an option.

TDI crossing out of the 32 zone with MBL heading upwards is also a nice confirmation
Attached Image (click to enlarge)
Click to Enlarge Name: EURCADDaily 4-24-2015.png Size: 47 KB
"To live with Passion, it takes Courage and Grace to survive"
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