Have not tried it but now that I understand it correctly will do so.
I'll go over a couple of weeks data on my simulator and post results in a day or two.
Cheers,
PKFFW
So don't wait for the 2nd MACD Histo bar to finish.
Cu2 is a girl! Thanks for the complement.
It was yesterdays chart after the close of the FTSE.
I am in Australia at the moment so I just opened the chart on closed market time was meant as an exsample for everyone. But it looks like some good big moves with it your system.
Do you wait for the 2nd bar to finish?
Buy the way how have you found Capital Spreads as a broker, have you been getting good honest fills whilst live trading?
I have been scared off buy spread betting companies as they do tend to hunt your stops with dishonest prices. I have a CP account so have full live chart access.
Cu2 is a girl! Thanks for the complement.
It was yesterdays chart after the close of the FTSE.
I am in Australia at the moment so I just opened the chart on closed market time was meant as an exsample for everyone. But it looks like some good big moves with it your system.
Do you wait for the 2nd bar to finish?
Buy the way how have you found Capital Spreads as a broker, have you been getting good honest fills whilst live trading?
I have been scared off buy spread betting companies as they do tend to hunt your stops with dishonest prices. I have a CP account so have full live chart access.
Generally I will enter at the start of the 2nd Histogram bar. I will often wait for the price to push higher than the previous bar as an extra confirmation that I want to be long.
I have accounts with Capital Spreads, FinnSpreads, IG and Worldspreads. Capital Spreads aren't bad, spreads are tight on the FTSE, no real problems. SOmetimes fills can be a little slow.
Dinos
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Just a thought on the exit strategy, one that has served me well for years is using the MACD momentum between the fast and target line, whilst the momentum remains in you favour, run the trade, as the c/o narrows get ready to close the position on c/o, by using stoch as well, you would have had an early warning of the macd c/o.
Only problem been, it adds more to you screen to look at than you probably want.
Only problem been, it adds more to you screen to look at than you probably want.
anddy26
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head scratching
ok being very wet behind the ears and dead keen to learn..ur macd and settings...where can i find them and adjust them..im on capital spreads and had limited success in the black but its blind faith..any where , where i can find out what all the jargon means for dummies and try our ur system
would even go to msn with some one to discuss things if they had the time and patience
[email protected].
thanks in advance
Graham
ok being very wet behind the ears and dead keen to learn..ur macd and settings...where can i find them and adjust them..im on capital spreads and had limited success in the black but its blind faith..any where , where i can find out what all the jargon means for dummies and try our ur system
would even go to msn with some one to discuss things if they had the time and patience
[email protected].
thanks in advance
Graham
Hi ceyababy,
I got up early Sydney time to test this out on the S&P emini so thought I'd share my results and ask a question.
Trading from 12pm Chicago time so far....two hours
Caught a 3.5 point move straight away. Thankyou
Second trade was 1 tick profit. After PSAR reversed and didn't match MACD I closed position.
Now to the question......The PSAR again matched up with MACD two bars later however by this time the MACD histogram had been green and above the centre line for 17 bars. For this reason I passed on the trade as I wasn't sure if this was a valid trade since MACD had been green for so long.
Do the PSAR and MACD need to line up within a few bars of each other or would you go ahead and take a trade like the one above because they both line up.
For the record the trade would have been closed out 2 mins ago for a profit of 6 points if I had taken it.
Your thoughts appreciated.
edit: Just picked up another 3.75 points on a 5 min trade. Don't know if this is just a lucky day or what but it's a great start
Cheers,
PKFFW
I got up early Sydney time to test this out on the S&P emini so thought I'd share my results and ask a question.
Trading from 12pm Chicago time so far....two hours
Caught a 3.5 point move straight away. Thankyou
Second trade was 1 tick profit. After PSAR reversed and didn't match MACD I closed position.
Now to the question......The PSAR again matched up with MACD two bars later however by this time the MACD histogram had been green and above the centre line for 17 bars. For this reason I passed on the trade as I wasn't sure if this was a valid trade since MACD had been green for so long.
Do the PSAR and MACD need to line up within a few bars of each other or would you go ahead and take a trade like the one above because they both line up.
For the record the trade would have been closed out 2 mins ago for a profit of 6 points if I had taken it.
Your thoughts appreciated.
edit: Just picked up another 3.75 points on a 5 min trade. Don't know if this is just a lucky day or what but it's a great start
Cheers,
PKFFW
Last edited:
Hi ceyababy,
I got up early Sydney time to test this out on the S&P emini so thought I'd share my results and ask a question.
Trading from 12pm Chicago time so far....two hours
Caught a 3.5 point move straight away. Thankyou
Second trade was 1 tick profit. After PSAR reversed and didn't match MACD I closed position.
Now to the question......The PSAR again matched up with MACD two bars later however by this time the MACD histogram had been green and above the centre line for 17 bars. For this reason I passed on the trade as I wasn't sure if this was a valid trade since MACD had been green for so long.
Do the PSAR and MACD need to line up within a few bars of each other or would you go ahead and take a trade like the one above because they both line up.
For the record the trade would have been closed out 2 mins ago for a profit of 6 points if I had taken it.
Your thoughts appreciated.
edit: Just picked up another 3.75 points on a 5 min trade. Don't know if this is just a lucky day or what but it's a great start
Cheers,
PKFFW
Hi PKFFW,
I am often inclined to take these Parabolic SAR Moves in the direction of the MACD. You can often find that the SECOND Push up is profitable and sometimes it can be an awesome move bigger than the first. Obviously a knowledge of reading market conditions would be useful too. But yes if it looks good for more up action I would take the signal..
Glad you are finding it profitable ! (SO FAR !!!!!)
Mark
Mark,
Well since posting last another one of those kinds of trades came up. Would have been stopped out for a small loss first. Then if I had re-entered when recent swing low had been broken(just as added confirmation and to avoid another possible whipsaw) I would now be sitting on another 6.25 point profit. In both these profitable cases(this profitable one and the one earlier in the day) added confirmation of the MACD histogram bars becoming longer and recent highs/lows being broken seem to work well.
I will keep my eyes open and continue testing however it does appear you are correct. These second pushes can be quite profitable.
By the way I'm using a 2 min chart simply because my 1 min chart seems way too busy and choppy for my eyes!
Cheers,
PKFFW
Hi,
I can see how this sytem works and its made me a few points so thanks for posting your strat. One question Do you find it does well when the market first opens for example yesterdays FTSE gave about three false signals right off the bat. Also how has this been working for you on Aud/Usd? Ive made a few points on this also, trouble is the price spikes that you get with forex make the 10 point stop a little tight at times so it tends to close you out before any profits can be taken.
I can see how this sytem works and its made me a few points so thanks for posting your strat. One question Do you find it does well when the market first opens for example yesterdays FTSE gave about three false signals right off the bat. Also how has this been working for you on Aud/Usd? Ive made a few points on this also, trouble is the price spikes that you get with forex make the 10 point stop a little tight at times so it tends to close you out before any profits can be taken.
Hi,
Price spikes are a problem, but there isn't a lot you can do about them. To me they are my biggest problem and often screw with my stop strategy. I think that as far as setting stops go, 10 points isn't a hard and fast rule. If I was trading the dow (notice the IF) I would not trade with a 10 point stop, the chances are that will be hit and you will be out nursing a small loss as you watch the price run you right in to profit. You need to look at the market and assess your own stop strat for each instrument.
You can sometimes find that the open presents the most volatility, yes I took hits on the opening 3 trades yesterday, but small ones.
Realistically this really isn't a holy grail, and I hope to never have made a claim that it is. I just posted the setup I use to trade to see what other people thought, if anyone else makes cash from it then that is GREAT !! I can't stress enough that on a FTSE 1 min chart your losses will be minimal, that doesn't mean losing trades don't happen...of course they will, but when you do lose you are out for a very small loss.
Mark,
Well since posting last another one of those kinds of trades came up. Would have been stopped out for a small loss first. Then if I had re-entered when recent swing low had been broken(just as added confirmation and to avoid another possible whipsaw) I would now be sitting on another 6.25 point profit. In both these profitable cases(this profitable one and the one earlier in the day) added confirmation of the MACD histogram bars becoming longer and recent highs/lows being broken seem to work well.
I will keep my eyes open and continue testing however it does appear you are correct. These second pushes can be quite profitable.
By the way I'm using a 2 min chart simply because my 1 min chart seems way too busy and choppy for my eyes!
Cheers,
PKFFW
The added filter of swing high and swing lows is good. It is something I am looking at myself. Personally I would only look for the swing low / swing high to be broken when trying second entry in to the same trend. If the low/high breaks I agree with the theory that the moves has some validity. The setup can sometimes whipsaw you with the parabolics especially when the market is tight, so waiting for that Swing low / Swing High break is essential.
Dinos
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Hi Mark
Good system, as you know there are a few points we have already discussed, principally entry, management and exit.
What I added when I looked at this system is as follows and I have put an attachment to this to show what I mean.
1) 3 MA's 20,50, 100 for trend direction, trading only in the direction of the MA20
mimimum, if all 3 are trending the same this will give strong support to the
direction, do not counter trade (ie trade against the trend).
2) RSI (14) with a MA20 target line
3) Stochastic (14,3,3,)
4) MACD (12,34,9)
A) 1st alert to entry, RSI & Stoch crossover target line.
B) MACD c/o in conjuntion with 1st green bar histogram & PAR
c) At this point, price has nearly bottomed, and is sat on top of the MA20, on candle
confirmation, enter a long position, the price is now above the MA20.
D) The Ma20 crosses the MA50 adding strength to your trade, and the momentum gap #
of the macd is growing, reflected by the growth in the price. whilst this gap remains
open, do not close on minor price drops
E) Close the position after the macd closed and on point of c/o, shortly after this the
price sat on top of the MA20 line before retracing
F) Do not take counter trend trades, therefore ensuring you always stay on side
G) Do not trade when the MAs are flat, wait until trend sets in and act accordingly
H) By trading only trend, if you get your entry point wrong, you have a good opportunity
of getting out unscathed, trade against the trend, you have a good chance of getting
stuffed.
Any thoughts / feedback from you anybody, please feel free
Good system, as you know there are a few points we have already discussed, principally entry, management and exit.
What I added when I looked at this system is as follows and I have put an attachment to this to show what I mean.
1) 3 MA's 20,50, 100 for trend direction, trading only in the direction of the MA20
mimimum, if all 3 are trending the same this will give strong support to the
direction, do not counter trade (ie trade against the trend).
2) RSI (14) with a MA20 target line
3) Stochastic (14,3,3,)
4) MACD (12,34,9)
A) 1st alert to entry, RSI & Stoch crossover target line.
B) MACD c/o in conjuntion with 1st green bar histogram & PAR
c) At this point, price has nearly bottomed, and is sat on top of the MA20, on candle
confirmation, enter a long position, the price is now above the MA20.
D) The Ma20 crosses the MA50 adding strength to your trade, and the momentum gap #
of the macd is growing, reflected by the growth in the price. whilst this gap remains
open, do not close on minor price drops
E) Close the position after the macd closed and on point of c/o, shortly after this the
price sat on top of the MA20 line before retracing
F) Do not take counter trend trades, therefore ensuring you always stay on side
G) Do not trade when the MAs are flat, wait until trend sets in and act accordingly
H) By trading only trend, if you get your entry point wrong, you have a good opportunity
of getting out unscathed, trade against the trend, you have a good chance of getting
stuffed.
Any thoughts / feedback from you anybody, please feel free
Last edited:
Dinos
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Chart to view
Chart to view, click on link
[img=http://aycu26.webshots.com/image/35465/2005752746904333560_rs.jpg]
Best I can do, sorry, unless anybody has any ideas
Chart to view, click on link
[img=http://aycu26.webshots.com/image/35465/2005752746904333560_rs.jpg]
Best I can do, sorry, unless anybody has any ideas
guys, for this kind of trading you must have twigs holding your eyes open. sounds like you need some live feeds and to build your own trigger screen - then you could "single hit" several instruments - otherwise staring at ftse all day for a couple of points will be somewhat soul destroying.......... no? i dont see the longevity in this strategy. any comments? maybe the system can be used over larger timeframes?
Depends on your style of trading......Horses for courses. Yes points are small, but you are continually in and out on a 1 minute chart....point hauls can often be higher than you're suggesting. I would suggest position trading would require twigs. Using a 1 minute chart you are always at the coal face.
I had the chance to trade the S&P 500 emini last night(sydney time). Not ideal to be trading out of hours but I'm demoing and wanted to test in many different conditions. Only traded 1.5 hours and took 4 trades on my 2 min chart.
1: +4.50 points
2: +0.25 points
3: -0.75 points
4: +3.25 points
Initial stops where 2 points or if PSAR and MACD no longer line up. Stop moved to BE when 2 points in profit. Exits I'm trying to base more on price action. Things such as recent S&R, reversal patterns, proximity of 50sma etc. So far so good but would like to get this part down in a more concrete way.
Overall I like the simplicity of the original system. The only thing I have added is trying to only trade in direction of the trend and if MACD or PSAR has been switching back and forth lately I will wait for recent swing highs/lows to be broken before taking a trade signal.
Frankly at this stage I'd be quite happy to get between 2-5 points a day on average if I can keep this consistency up.
Cheers,
PKFFW
1: +4.50 points
2: +0.25 points
3: -0.75 points
4: +3.25 points
Initial stops where 2 points or if PSAR and MACD no longer line up. Stop moved to BE when 2 points in profit. Exits I'm trying to base more on price action. Things such as recent S&R, reversal patterns, proximity of 50sma etc. So far so good but would like to get this part down in a more concrete way.
Overall I like the simplicity of the original system. The only thing I have added is trying to only trade in direction of the trend and if MACD or PSAR has been switching back and forth lately I will wait for recent swing highs/lows to be broken before taking a trade signal.
Frankly at this stage I'd be quite happy to get between 2-5 points a day on average if I can keep this consistency up.
Cheers,
PKFFW
emini
just joined today and trade sp emini during day, ets. i like to use keltner bands, trade in direction of trend; e.g. if trend is up, i look to enter at the mid to bottom kelts; if trend is down, enter on the mid to upper kelts for shorting.
also look for fib levels after a move up, say after the open. i look for 2.25 pts profit per trades, 2--3 times a day. but my best trading is between 10am--11:30am ets.
would like to share info w/you about emini--always looking to improve.
john
just joined today and trade sp emini during day, ets. i like to use keltner bands, trade in direction of trend; e.g. if trend is up, i look to enter at the mid to bottom kelts; if trend is down, enter on the mid to upper kelts for shorting.
also look for fib levels after a move up, say after the open. i look for 2.25 pts profit per trades, 2--3 times a day. but my best trading is between 10am--11:30am ets.
would like to share info w/you about emini--always looking to improve.
john
