Developing a system #26 (The Entry System)
Submitted by User on January 18, 2011 - 14:56.
Submitted by Chris
This is an enter at "almost" any time system. I'm not really sure this is a strategy but it has been working very well on a demo account. Entry is still a problem but here goes --
I place S/L at 40 pips (or 400 points on 5 dec system) and T/P at 210 (or 21). I use ECN broker whose spreads range between less than 1 and 2. Do not trade above those spreads as it diminishes odds. Assuming 50-50 shot of picking a winner, the formula is as follows (-410* X .5)+ (210 X .5) - [spread]. This is a loser, but b/c the t/p is about 1/2 of the S/L, my odds are probably in the low 70% range. I estimate that for this to be a winner, I need to pick winning trades roughly 72% of the time with these spreads.
I then look at the 4hr, 1hr and 15M chart. I place MACD and stochastic on each, with 9 EMA. I determine trend in 4hr and 1Hr, and if they match, I look for entry point on 15M. I have been averaging winning trades roughly 78% of the time.
Sometimes, i cheat a bit and if I see a clear trend, I remove the T/P limit and put in a trailing stop. This can be good and bad b/c a quick swing reduces my profit and technically negatively affects my approach.
Here's my problem -- I do not like my entry system and I am looking for tips/advice on an entry system where I can look at an indicator or 2 and immediately enter. Right now, I feel like I am guessing too much. Any help would be great.