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Simple trend-following system

  • #1
  • First Post: Edited Aug 15, 2015 3:37pm Aug 13, 2015 7:41pm | Edited Aug 15, 2015 3:37pm
A while ago i show a friend how to create a simple multi time frame trend following system. He seems to like it, as 6 months later he still trades with it. So I thought i'd quickly post it here for traders who are 'lost' or fancy trying something simple

One indicator (cci customcandles). set 'overbought' to 55 and 'oversold' to -45

Go to daily and wait for a candle to close RED or GREEN

If green then go to 4hr chart and look for buys
If red go to 4hr chart and look for sells

use on any pairs.

.............its so simple it may have already been posted cause simple is best
Attached Image(s) (click to enlarge)
Click to Enlarge Name: USDCHFDaily.png Size: 43 KB
Click to Enlarge Name: USDCHFH4.png Size: 38 KB
Attached File(s)
File Type: mq4 CCI CustomCandles.mq4   3 KB | 1,248 downloads
  • #2
  • Aug 13, 2015 9:05pm Aug 13, 2015 9:05pm
Kraven...Thanks for sharing the simple system.

Need few more clarification...

Once we see a Daily candle CLOSES Green or Red, the next day we need to look in for the trade in H4 candle right? Can you please explain?

Regards,
Paul.
  • #3
  • Aug 13, 2015 9:31pm Aug 13, 2015 9:31pm
Quoting kraven
(cci customcandles). set 'overbought' to 55 and 'oversold' to -45 {image} {image} {file}
What is the CCI Period setting in the indicator (14, 20, other?)?
Thanks.
  • #4
  • Aug 13, 2015 10:09pm Aug 13, 2015 10:09pm
Quoting kraven
A while ago i show a friend how to create a simple multi time frame trend following system. He seems to like it, as 6 months later he still trades with it. So I thought i'd quickly post it here for traders who are 'lost' or fancy trying something simple One indicator (cci customcandles). set 'overbought' to 55 and 'oversold' to -45 Go to daily and wait for a candle to close RED or GREEN If green then go to 4hr chart and look for buys If red go to 4hr chart and look for buys use on any pairs. .............its so simple it may have already been posted...
Sounds interesting..... Don't you see the 'quality' of the daily candle for setup? For example, length of the candle, long wick of the candle,... bla bla. Does the candle color only matter?
Simplicity is the ultimate sophistication - Leonardo da Vinci
  • #5
  • Aug 14, 2015 1:58am Aug 14, 2015 1:58am
Template will be appreciate
  • #6
  • Aug 14, 2015 5:13am Aug 14, 2015 5:13am
Quoting MidnightRun
{quote} What is the CCI Period setting in the indicator (14, 20, other?)? Thanks.
period 20, set 'overbought' to 55 and 'oversold' to -45. everything else should be pre set
  • #7
  • Aug 14, 2015 5:19am Aug 14, 2015 5:19am
Quoting fxolive
Kraven...Thanks for sharing the simple system. Need few more clarification... Once we see a Daily candle CLOSES Green or Red, the next day we need to look in for the trade in H4 candle right? Can you please explain? Regards, Paul.
wait for firsts daily candle to close in a colour (red or green).

go to 4hr. enter on break of first break of the candle the same colour as the daily.....if you exit at xxx pips then keep checking daily, if its still the same colour then keep entering on the 4hr when colour matches
  • #8
  • Aug 14, 2015 5:21am Aug 14, 2015 5:21am
Quoting heispark
{quote} Sounds interesting..... Don't you see the 'quality' of the daily candle for setup? For example, length of the candle, long wick of the candle,... bla bla. Does the candle color only matter?
No as this would keep only keep you out of probably as many good trades as bad.
  • #9
  • Aug 14, 2015 5:22am Aug 14, 2015 5:22am
Quoting laksior
Template will be appreciate
hell laksior just put the indi on a chart and set it to the settings. its that simple.
  • #10
  • Aug 14, 2015 5:38am Aug 14, 2015 5:38am
Simple? on your chart you show a daily 12August, but your 4HR entry candle is 15 July ???
  • #11
  • Aug 14, 2015 2:33pm Aug 14, 2015 2:33pm
No stop loss?
  • #12
  • Aug 14, 2015 2:53pm Aug 14, 2015 2:53pm
Quoting BugattiBoy
Simple? on your chart you show a daily 12August, but your 4HR entry candle is 15 July ???
............i circled the white daily candle (which is actually august 13) and wrote stop looking for candles..


OK. wait until a coloured candle appears on the daily (remember your going to be a day behind as you wait for the candle to form, you obviously loose this days trading as you wait for it to close).......lets say GREEN for buys

the next day go to the 4hr to look for entries in the direction of the daily candle....GREEN buys

When the daily candle closes white, stop looking for entries and wait until you get another daily coloured candle.......remember you will still be looking for enties on the first white candle day as you don't know this is a white candle until it forms...however entries are rare as the price will be going in the opposite direction to your entries, hence it closes white.

hopefully this helps
Attached Image(s) (click to enlarge)
Click to Enlarge Name: USDCHFDaily.png Size: 43 KB
Click to Enlarge Name: USDCHFH4.png Size: 52 KB
  • #13
  • Aug 15, 2015 9:29am Aug 15, 2015 9:29am
Hi Kraven thanks for sharing your system here on FF.
Pleased reread your first post I am sure it should say if RED look for sells.
Kind regards
Nev
  • #14
  • Aug 15, 2015 3:38pm Aug 15, 2015 3:38pm
you are correct nevmar, thanks (edited)
  • #15
  • Aug 25, 2015 4:38am Aug 25, 2015 4:38am
where to exit? cheers :]
  • #16
  • Last Post: Edited 12:38pm Sep 4, 2015 12:08pm | Edited 12:38pm
Hi!

it looks simple and deadly, Kraven! Thanks for sharing.

I'm going to trade it, with a tweek next week: I'm going to look for an entry candle in 1H TF, and enter a single trade per day with a short TP. Let's call it Caatinga-Style. I'll post the outcome in the end of week.

By-the-way, why do you use 55 and -45 on CCI, Kraven? and for how long have you been using this system?
Thanks again.

Cheers!
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