Hi all
I, like most of you who trade on higher time frames, do at times get frustrated with the lack of suitable trades, staring endlessly at my screen sometimes for days without seeing a decent trade forming. I have of late, been playing around with the five minute TF while waiting for trades on the 30 minute TF and I think that by combining the best of a couple systems may give us good results on this TF.
Catfx50 is a fantastic system and I have been using it for some months now. It has been optimized to run on the 30 min TF and I feel in its present configuration will probably not work successfully on the 5min TF. Having said that I feel the Catfx50 concept can be adapted to work with the XO MTF indicator on the 5-min chart and successfully pull out pips that higher time frames will miss.
The core concept of Cat50fx is the price crossing the 50 ema with filtering provided by various indicators.
If we use this concept on the 5-min TF and add StepstochMA, Xo MTF, OsMA2, we may have the basis of a good 5-min system. We are still retaining the reason for this thread, that is to explore the use of Catfx50 on this time frame and also using filters that are successfully used on the 5-min TF.
Attached is a chart of the idea and may be a starting point to take this system further.
The indicators used in this example are:
50 EMA
StepMA Stoch
settings
WATR 10
Kwatr 1.0
Calc Bars 2000
Super XO
settings
KirPER 6.0
Peirod 1, 5
“ 2, 15
“ 3, 30
“ 4, 60
OsMA2
settings
Fast 5
Slow 12
Signal 9
Super XO
settings
KirPER 3.0
Period 1, 5
“ 2, 15
“ 3, 30
“ 4, 60
Sell trade example:
When price crosses the 50 ema and next bar opens below, and stepstoch has crossed down through the blue line, the OsMA is crossing down through the zero line and the super xo bars have turned red, then we enter a sell market order.
To exit we use the second Super XO. When we have a change to two blue bars we exit.
Ignore the second Super XO for entry completely; use it for exit only.
There are a few other trades that can be taken, a bounce of the 50 ema of example confirmed by the other indicators, anyway you get the idea.
By using a system like this we can take advantage of both time frames, pulling out 10 to 20 pips and more on the 5 min TF while using Catfx50 as we have been on the 30 min TF.
Anyhow just an idea that I have been trying out over the past few days, I will see how it pans out over the next few weeks.
Mark
