Advanced system #13 (The Floor Trader System)

thank you that is a great help. appreciated.

Answer to last poster:

I am not the poster above, but I can help.
You should read up on Range Bars, they are not time based, but a preset to a specific range (in this example set to 5), so for every 5 pips, a new bar is created.

You can trade this on any pair, but works best during London-NY Session.
Some pairs are more volatile than others, and it can be required to use a higher range.

Do some research, there are plenty available on the net.

to the last poster...what time frame and currencies are you using it on?

I love this strategy! I use Range Bars and it's powerful with them!!! I use a 5 pip range and I've added a 30 and 50 EMA along with MACD 38,120,20, AMAZING!

I wait for the 30 EMA to cross 50 then I take Level 1 signals. I take the first, second or third and I adjust my R:R ratio according to that. First or Second signal I use a 1:3 r:r and third signal 1:2 or 1:1(sometimes). When the MACD has crossed into a direction it solidifies the strength and keeps me in trades for a long time!

I'm up 30% on the week and that's being very very conservative. Remember indicators work extremely well on range bars because it follows the price and price only unlike time based charts.

Thank you for the feedback and sharing the idea!

Best regards,
Edward

Firstly, thanks Edward for an excellent site. I have got tremendous value out of several of your strategies.

As I trade on NinjaTrader, I have developed most of the indicators for your strategies for that platform.

I have used this system live for a couple of weeks quite successfully, average runs of 50-80p.

Here are 2 modifications that I have found invaluable:

I use a modified VMA instead of EMA for the 9/18 TAZ. This VMA is based on the Chimps (Walter's version of the rainbow) and it gives much clearer signals as in a lot less chop.

And I use the standard Parabolic to filter my entries i.e. only take signals when the price direction is supported by the parabolic.

:)

Different formulas, may be..?

I'd suggest you try also MT4 and compare it to those two. Whichever one matches - wins.

guys im looking for advice on the ADX indicator..

i have 2 platforms that i trade off, marketscope by fxcm and dealbook 360 from GFT. however my 14 period ADX reading is different for both?.. why would this be? i have the same pair/TF on each platform with ADX 14, however there is an 8 point difference on each reading.. the chart im looking at, marketscope says 32.12 and dealbook says 32.84 for ADX 14, any suggestions?

thanks in advance

thank u very much for the reply Edward, upon backtesting ADX seems a reliable indicator. however i will demo test this method of L2 entry and give you some proper results as we know nothing beats a traders action to real time charts! thanks again.

Hi Lil Pip,

The price rarely offers us ideal patterns or ideal setups, on the contrary, many times we're required to work with non-standard cases, where we should be able to recognize trading opportunities.

Answering your questions:

Question: "if price retraces and hits the 18EMA and the price consoidates a few bars within the range of the candle that hit the 18EMA, do we take the trade once price breaks over/below the high/low of the candle that hit the 18EMA, even if it takes 2 or 3 candles to do so?"

- yes, even if it takes 2 or 3 or 4 candles to break above/below the candle - we'll take that trade.

Question: "what does one do if the candle that retraces into the 9/18 EMA zone actually closes further than the 18EMA?"

- We still enter a trade. Overshooting past the 18EMA is fine. It's that non-standard situation we have to deal with. We want to take the trade, but this time we have to make sure the price is on the right side of the 18EMA.

- I haven't tried ADX for this method, and I'd appreciate your feedback!

- the site doesn't support member registration. All posts are send to us for a preview. It's a slight inconvenience for our visitors, but on the other hand it saves hours of maintenance work every day, plus among greatest advantages is that I'm able to track and answer every single question posted by readers anywhere on the website.

Best regards,
Edward

hi all,

its Lil Pip again,

just a thought, has anybody tried using the ADX indicator to determine L2 entries? i think that may help and i will backtest over the weekend since it shows you whether or not the current trend is strong or weak?

also, can somebody tell me how to post as a registered member? i have signed up and am logged in but my posts appear as 'user'? what am i missing!

thanks again

hi again, (i posted the above Q)

i have another question regarding entry..

what does one do if the candle that retraces into the 9/18 EMA zone actually closes further than the 18EMA? to clarify, in a rally retracement (overall downtrend) the candle closer higher than the 18EMA and in a decline retracement (overall uptrend) prices close lower than the 18EMA?

do we still enter the trade if the reversal candle goes higher/lower than the high/low of the candle that closes past the 18EMA or do we only take trades where the candle retraces and only touches the 18EMA, not closing past it?

many thanks,

Lip Pip

hi all, can i just ask regarding entries;

if price retraces and hits the 18EMA and the price consoidates a few bars within the range of the candle that hit the 18EMA, do we take the trade once price breaks over/below the high/low of the candle that hit the 18EMA, even if it takes 2 or 3 candles to do so? or do we strictly take trades where one candle retraces to hit the 18EMA and the next candle reverses (in the direction of the trend cycle) and creates a high/low which is higher/lower than that of the candle that hit the 18EMA?

i hope the question is clearly understood.. many thanks.

Hi Osahon,

Yes, it is.

Best regards,
Edward

Good morning Edward.
Please could you help me look at the attached screen-shot and advise if you see a possible head and shoulders pattern?

Thank you and best wishes
Osahon