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UPDATE 12/03/2007
Hello all,
First I want to thank all of you for the support. Forex11 & I never thought this would take of they way it did. Thank you.
Now down to business. As I said somewhere on this thread I would only be updating this original method with any new additions once I was satisfied with its performance & it still adhered to our K.I.S.S. methodology. So officialy I will be adding the MFI (Money Flow Index) with 80/20 settings. I will be & have been testing certain indis & possibly will be updating again in the near future. I would like to ask Forex11 (Co-Creator FTC) if he would like to post his methodology. Below is screen shots of the my current methodology.
I have 3 charts set up. A 30M, 1HR & 4HR.
If I see a signal like this:
I move on to the 1HR. Then I see this:
I move on to the 4HR & then I see this:
So as you can see I look for confirmation on all 3 charts. You can always take it off the 1Hr if you like but I prefer the 4 HR. When you see all 3 its a super strong indicator that it will go in that direction. Thats how I trade it. Simple & straight forward.
As for exits & stoploss. To make it simple if you use a 1HR GBP/JPY I reccomend at least 75 pip SL. on the 4 HR a 200 pip SL. As for exits you can use the next signal or a profit point of your choosing. As for me I use the MFI to see how close its being overbought/oversold, look for upcoming news that my affect your trade & to make sure my risk reward is at least 2-1. Never risk more that what you will gain. Put bluntly its stupid.
The indis below are the indis im using & the TPL. You must use the same indis I use otherwise the TPL wont work. But you can always just add the indis as well.
Take Care & good luck.
Bear-
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Hey All,
I was trying to get help making an EA out of this & it was suggested that I post it here so people will get comfy with it.
Before I get into it I have a few things to say.....
Yes you will lose.
But with proper money management & practice you can do pretty good.
All the tools needed are available for download. This system only works on MT4 brokers.
Heres how it works.
On a 1 hour (aggressive) or a 4 hour (optimal) chart, place the ZIGZAG POINTER & NON LAGGING ZIGZAG indicator with the inputs supplied, on a candle chart with period separators.
How To Enter 4 Hour Chart
When you see an arrow & the Zig-Zag Line, go in that direction. Place your stop according to your risk appetite. I use at 60 on a 4 HR & 20 on a 1 HR depending on which pair you use (I use the EUR/JPY or GBP/JPY 1hr or 4 hr) & your risk appetite, you can set your goals. Your trade will go until you hit your goal or the next bounce with an Arrow.
If you dont see a new arrow yet, this trade MIGHT not be done. You have 2 options.
1)You can get out & wait for the next arrow.
2)You can adjust your stop to capture some pips & ride it out.
The reason I say that is because I have noticed that more than a few times the trend will bounce & retrace for a while, then continue. I have used the bounce as stop & a chance to add to my positions.
A few points are if the overall trend is long & you see a short signal, chances are its a small retrace so it is more risky. However its a good chance for a quick profit.
How To Enter 1 Hour Chart
If you choose to use a 1 hr chart I recommend that you get out at each bounce or your specified targets.
This is a serious trading system. I have been scoffed at about this but I have been using it.
If you have the time I think you should demo it.
Before I forget, yes the arrows move. If a new high/low is established, the arrow will move to the next PROBABLE reverse point. So backtesting is useless. Only forward testing applies & thats why I know it works.
Constructive comments & suggestings are welcome.
Thank you for your time
Bear-
As per Mr. Pips Request here is a link to all indis:
http://www.forex-tsd.com/157318-post1522.html