STOP LOSS FOR HIGHER FRAMES + (different topic) 3-FRAME INDICATOR
Hi Capt. and other Duck Hunters,
SL FOR HIGHER FRAMES: Captain, your default stop loss for the D1, H4, M5 combo is 30 pips. Seems like that's comparable to trading the H4. Am I correct? Anyhow, if I were to trade a combo like W1, D1, H4, what would be the best way to determine the comparable stop loss? Seems like it should be in proportion to the ATRs. For example, if the ATR on the H4 of a pair is 25, and the ATR on the D1 (for the higher combo) for the same pair is 75, the ATR on the D1 is 3 times the ATR on the H4. Therefore, it seems, to get the comparable stop for the higher combo, I'd multiply 30 pips by 3, which would be a 90 pip stop loss for the D1. Make sense? Is there a better way?
INDICATOR: Can anyone direct me to an indicator that would show the relation of price to the 60 SMA for the three frames of a 3-time-frame-combo simultaneously, on the same frame, so I wouldn't have to keep flipping from frame to frame (for multiple pairs)? Preferably one with visuals as opposed to simply text? If it's an EA that has that feature, but one where I could turn off the auto trade function, that would be cool, too.
In the interests of research and fun I decided to place 100 trades (on my dummy a/c!) using the Three Ducks rules, and to record interesting features thereof.
The first one that struck me (trade #8) gave a buy signal on AUD/USD, but immediately below strong resistance around 7677. Would seasoned Duckies take such a trade, or move on in search of softer targets?
Just 22 trades in to my 3 Ducks trial. Checking the 4H and 1H before choosing an entry point on the 5M is such a simple and effective discipline.
Retaining the good Captain's rules, I am adding others as I go, like not taking the bait when strong resistance lies ahead of my bet.
Unfortunately I have to spend time away from the keyboard, and my fear is that I will return to find that the price popped up 100 pips then fell back onto my stop. So I place modest targets, and unfortunately these are getting hit. Despite this, so far I have won 183 pips and lost 126. Mostly using quite tight stops, which I move up whenever it seems practical.
... The first one that struck me (trade #8) gave a buy signal on AUD/USD, but immediately below strong resistance around 7677. Would seasoned Duckies take such a trade, or move on in search of softer targets?
I have been using the 3 ducks for a number of weeks and my entry has been very good. Taking the first half of the trade using 4 hour ATR works really well. However knowing if there is to be a continuation of the trend and if there is where to get take the final half of the trade more problematic.
So the question is what exit strategy are 3 ducks traders using. Trend lines macd etc etc
He also hasn't been active in many of the other forums that he 'used' to post at - but then again it's time consuming to keep it up, let alone dealing with the constant bombardment of repetitive questions that have been answered time and time again in the same thread!