This is a system I am currently optimizing. Not certain if there are systems but this has elements of other progr out there.
Not too much to it and plenty of ways it can be personalized/customized.
I am doing this as sort of a personal journal and if others have suggestions or find it helpful then all the better.
Basically:
I use multiple time frames to filter or funnel out potentially bad trades. I do so very much mechanically on time frames that are greater since I believe it's a more accurate system of trading, but because it keeps me more consistent and helps maintain judgement from clouding my decisions.
It starts on weekly to get trend management, Daily to get go/no go sign, 4h/1h to get entry sign, 15min/5min to get entry point and SL.
The details:
I use weekly chart and 5ema to get trend management. A more aggressive intraday trader may want to use 5ema online daily. They may want to use 3ema. A conservative term trader may want on per week to used 10ema or 10sma. A 5ema trendline on weekly is exactly what I am currently using.
I only take longs on the pair in case 5ema on weekly chart is up. I take shorts if 5ema on chart is down.
Next I go into the Daily chart. If Daily is above it's opening price and per week 5ema is up that's a green light to take a trade that is very long on this pair. If the Daily is below the opening I do not trade this pair today unless the daily goes above it's launching. There's an technical problem with daily bars because they vary with brokers. Some beginning at Aussie session, a few at Asian, a few at London, some at US. I use daily bars that start at London beginning (6:00 GMT). If your broker employs time period you can use 1H chart to determine the London beginning and that gives you price of daily pub starting at London session. Add trendline that is horizontal and make certain your trade management is on the appropriate side of this line. Or maybe you feel more comfortable using Aussie beginning daily bars. This depends on the hours that you trade. These are items every trader should work out for themselves. The process of thinking through it will help know the way that is best to interpret what they're seeing from the bars also so it's a good mental exercise.
Continuing on to the intraday time frames. I use them for entry signals and entry points. Now that we've decided that we'll be taking a long position on this pair today because the 5ema is up and the daily is above it's opening price, we are searching to enter a long using a little stop loss. There are. A lot of people use indiors but I pretty much only use price action. In order of significance, candle stick patterns, s/r areas, complete numbers, fibonacci, trendlines.
So say, for example I visit an inside pub on 4H or 1H, I then visit 15m or 5m and try to find s/r areas and candlestick patterns to pinpoint my entry using a little SL. If price keeps trending my manner I proceed SL to BE and put in a second long position. I'll keep doing this till the intraday trend runs out of steam.
So that is basically it.
No predefined exits egy as of yet. Currently I am holding places for multiple days/weeks so I have plenty of time to consider exits. When weekly 5ema proceeds from up to down I will average out my longs as I take shorts onto the pair. Technically this is hedging but not as another side of this trade is at SL of break even zero risk of loss. Yes, a few places you worked hard for and stored for days/weeks will be stopped out at zero pips after having been up hundreds. That is just a part of the procedure.
To outline:
*Weekly to determine fashion. Trade in management of fashion.
*Daily to get green light/red light sign. If daily is above price and weekly trend is up that's a green light for quite a while and if daily is below launching it is light. The reverse is true for weekly tendency.
*Intraday time frame to pinpoint entry with little SL using a number of methods based on our preferences. 4H/1H to look for volatility/breakout/momentum signal. 15min/5min to pinpoint entrance. Simple price action is the method that is recommended. If our wager works out we proceed SL to BE after price moves on and attempt pile on further positions while the tendency continues. But 1 place at a time before we've moved our SL to BE and therefore are in a zero risk standing.
*If weekly 5ema goes from up to down we start to average out long positions as we start to take short positions or visa versa. If broker does not allow hedging then use 2 subaccounts. One for buys and another for sells.
*Exercise appropriate money management in any way times. Since places are being stacked by us we can use a tiny percentage when decreasing drawdown. Say 0.5% - 1% per trade.
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Originally Posted by ;
Perhaps next sequence of trades I do I will save pictures.
