Interesting strategy! :-)
{quote} I appreciate your questions mate. Please see chart below will help you understand what the rules are and trade logic I picked a random day last year April 11th 2014 and traded it just now using the FXBlue simulator ... made 4.25% as expectedhttp://www.fxblue.com/users/nthusiw/stats {image}
thanks for your explanation, but still i don't understand well when to exit. From your picture i see that you didn't exit one trade even if you had a opp divergence and the buffer turns color...
I would like to be sure what is the rules for entry and exit, can you correct me if i am wrong?
Entry rules for long entry: First at all we need a green signal that is the divergency, than we wait for the buffer to change color to green. When we have the buffer green we enter long.
Exit rules: we exit the trade once the buffer change color, OR we exit the trade when first at all we have an opposite signal from divergency, than we wait for the buffer to turn red, and than we exit?
What is the average result during a choppy day?
Thanks!
Syl
{quote} There are so many examples where you have ignored your own rules on the charts above that its hardly worth marking them. You said exit on opposite signal. There are a number on both charts where the divergence indicator gives a signal followed by the buffer signal and yet you did not exit. I think it would be good if you could clarify your rules. The charts you posted have - for me at least - have raised far more questions than you have answered .
{quote} Hi Nathan, thanks for your explanation, but still i don't understand well when to exit. From your picture i see that you didn't exit one trade even if you had a opp divergence and the buffer turns color... I would like to be sure what is the rules for entry and exit, can you correct me if i am wrong? Entry rules for long entry: First at all we need a green signal that is the divergency, than we wait for the buffer to change color to green. When we have the buffer green we enter long. Exit rules: we exit the trade once the buffer change color,...
I will say this buddy. We have two types of divergence as per the indicator.
1. We have the strongest divergence lines always RED or GREEN bold lines. This is our primary signal
2. We have the dotted lines divergence as well that are RED or GREEN too. These are classical divergence lines. They may appear as they are opp signal yes but are not powerful at all. They are continuation moves. We see this and we hold on to our trade even if the buffer signal line turns colour.
So the dotted lines are never to be used for any entry or exit guys. They show a continuation move of the current bold line. I mean short term trend continuation . Ok? Good.
Thats why i dint close my short and held on until i saw a red bold bullish divergence line then buffer turned green and i was more than happy to close my trade and take my pips
Hope yall understanding and the strategy is getting clearer. Its an unbelievably simple strategy and yet very powerful
Just like a Midget at a urinal am always on my toes
{quote} Can you please answer my question here? Thanks! Mirko {image}
You see i missed the signal and saw it late. So i come back and check the most recent divergence and wait for the buffer line to turn to green again and i take the trade long
Scalping is demanding and until i automate this you may miss one or two signals ....
However the most important thing is to know how to re-enter despite missing the signal
This is why i always suggest you also check M5 chart to see which side momentum is ... so when you drop to M1 chart you have a bias .. and all you looking to do is to enter in the direction of your M5 bias as soon as the buffer line turns to the appropriate colour.
Simple
Just like a Midget at a urinal am always on my toes
{image}
But i would recommend using M5 today.
Today is MONDAY and the volumes are extremely low esp with all this bank holidays.
M1 may give us a tough time .. too many lines.
The strategy needs high volumes to net some nice pips
Am using the m5 chart today mate to avoid too many divergence lines. Today may be choppy ... If so i will close for the day. I dont wonna loose money for me and my clients
Just like a Midget at a urinal am always on my toes
{quote} Yes i know, i was just asking you if my entry and exit were by the rules
Yes the trades were ok by the rules only that i dont place a stop loss. I saw you place a stop ...
But its ok. Rule is exit on the opp signal so you cannot know where to place a stop from the onset
However its discretional
Just like a Midget at a urinal am always on my toes