Advanced strategy #10 (Trend Line Trading Strategy)
Submitted by Edward Revy on October 4, 2008 - 08:30.
A truly great work has been done by Myronn, the author of the current Trend Line Trading Strategy.
Support-resistance trading, trend line trading, checking higher time frames, money management — the strategy has a concrete-like theory base and a simple implementation — a winning combination, that places it into the category of advanced strategies.
Remember, your feedback, comments and suggestions are always in great demand!
Edward Revy
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Hi Edward! Thanks again for this great site. I am about 3 weeks old in FX, using TradingStation in FXCM. Can you please tell me where I can get the ZZ indicator which my platform can support? Thanks again!
Merz
Hi Merz,
There really is not a comparable indicator at this time in TS2. FXCM says they are working on adding customizable indicators into the platform.
For now, I would recommend using an MT4 Demo or live account to utilize that indicator.
Best regards,
Edward
Hi, how have you guys been doing with this system? I trade it on 4 or 8 hour charts as I'm on holiday now and just want to check in now and again.. I had an okay week making around 170 pips. I don't use any indicator and just draw the trendlines without the use of any indicator. I traded chf/jpy, usd/cad, nzd/jpy, aud/jpy.. etc.
Think by getting to know this system better and following the rules you can really do good. Any results from you guys?
Coenraad Lubbe
It has been working really well for me on all charts 4 hrs. and up. I love the fact that you are either right or wrong and you know which quickly.
Kaz
Where do you guys think is the best place to place stops? Out of all my trades it seems that just under the or above (when short) the formation candle by not more than 5 pips seems adequite.. If price triggers your entry and moves against you past your formation bar it is obvious your wrong... It looks as if the system really works on any timeframe. One thing I have also seen is that the more precisly the price just touches the trendline and then moves in the bigger trend the better the trade probability..
Positive.
If price exceeds the candle you've entered with, you're proved wrong - get out at small price and try again.
Rich
Has anybody experimented with better take provit levels? It is so irritating when your take profit level is reached and you are out of the trade but price keeps on following the trend.. Some of these trades keeps on moving double or triple the take distance.. What I will be looking to do is take 2/3's of the position off at the take profit level the system prescribes, I will let the remaining third run with a trailing stop of maybe 30-35 pips depending on the volatility of the specific pair looking at fib profit extension levels.. I know this is making a simple system much more complex, but if it works better why not? Just remember to test new ideas with little amounts or on demo...
And lastly, I'm a firm believer that almost any decent system can be traded with success. The only thing making you lose is yourself. All good traders spend each day traning their mind as well. I know, go hug a tree right? But seriously, trading discipline is more inportant than any strategy for bad discipline ruins even the best strategies.. Think about that.
I recommend it too.
Taking 2/3 of position out at originally suggested profit level and leaving the remaining 1/3 run till the move ends is the best choice!
I do this way all the time, not particularly for this system, for my own, which is quite similar, based on support and resistance.
Rich