Advanced strategy #10 (Trend Line Trading Strategy)

Hi Myronn,

Thanks a million. Yesterday, I tried to use this strategy in smaller timeframe to earn 30+ pips on 1 min chart in my real account, which based on 5 min to look at the trend, 4 wins out of 5 trades within 3 hours. This is a great system to catch up opportunity for "buy low sell high" and obey fundamental rule "trend is your friend".

One key point: For short strategy, I prefer to set a trailing stop few pips about lower high if price is favour to my entry point, vice versa for long. This is a more conservative and safty to improve your winning rate. In real trade, I think winning confidence is more important than money.

Regards
Cody
From Hong Kong

I think the performance is incredible Myronn, I'm sure as you gain experience you'll improve your trading of this system. Even if you don't make any more gains for this week you'll still have a 100% a month which is excellent. Congratulations!
I think at this point you should try to protect your gains a s much as possible and only risk a small amount say 1% per trade till you get back to making gains again at which point you could go back to the 5% per trade risk.

Burt

Hi Burt & hello all,

Not really good trading week for me this week. Why? Greed! Huh? You heard me right. Greed. You see, I had some many excellent trades this week and even last week that could have put me beyond $25k, but I violated my own rules by "holding on a little bit longer". When I started to do that, you know what happened? price turned against me and I ate most of my profits & also hitting my stop loss as well. One thing I learned from that: when you start thinking "hold on for a little bit more profit,that is the exact time you should be taking profits". That is my experience and does anybody has any similar experience like that?

Attached is a screenshot of my live account trade so far.

Regards

Myronn

Hi Myron

How have you fared this week, I hope you were able to generate a 100% this week as well taking your total to 20000/- dollars.

Do keep us informed.
burt

Good one guys. Good observation Grant, the USDJPY when you look on the 4hr timeframe and draw a trendline, you will see price is finding resistance on that trendline, and it is really struggling to break it. I did not take a short trade on USDJPY it touched/intersected that 4hr trendline as I was a bit reluctant because when you look at the 1hr chart, and draw and upward trendline, you will see price finding support on that trendline and those 2 opposing trendlines are quite close to each other (converging towards a focal point...expect a breakout most likely to the downside, based on thd 4hr trend if it is strong) I want to make sure that 1hr upward trendline is completely broken to the downside to confirm to me it is heading down then I wait for opportunity to go short as per the strategy.

Happy trading

Myronn

You lucky boy. You get to sit down at night and do London, while I have the slow Tokyo session in the evening. I have to wake up at 1am for the same.

Did you see the JPY? 4H downtrend?

Thanks for the swing

Grant

Thank you Myronn,

I've downloaded Swing_zz indicator too:

Swing_ZZ.mq4

I've been following the strategy discussion, you're doing a truly amazing job! Keep it up!

Best regards,
Edward

Hello Grant and hello all,

you can get the swing zz indicator in here: http://www.forexfactory.com/showthread.php?t=67479

aussie evening for me is from 5-10pm, dont know what is time is that in GMT. I use standard setting.

Regards

Myronn

Hey Myronn.

Listen, I was looking for your specific Swing ZZ but couldnt find it, only a ton of other ones that zig either a lot more, or less. What are your setting? What session is the Aussie evening? i usually try to wake for London myself.

Grant

Myronn!!!

I was going to mention that CHF. That trade was a trendline BREAK. What did you do? You trade continuation.

On my fibro weekly, Nov 05 to the low, the 50% is at 1.1470. Where did you get your 50% from?

I also have a support line on the weekly from '95 at 1.1203, but that's a stretch as far as I'm concerned.

I love trading triangles like your CHF, but usually they break in a continuation. I would love to have a bigger chunk of cash to be able to trade everything, but not yet so I wasn't in the CHF trade. However, here is the latest JPY.

Keep it up.

Grant

Hello all,

I hope this week has been good for you. It is good to be alive and breathing.

This is how my week turned out: I did reach my target of $15,000...however lost back $5000. Overall, not a bad performance for the week. Looking foward to next week trading.

to the user who asked about the money management, I am using max of 5% risk on live account. To some, that may be too much. Everyone has a different risk appetite I suppose, so use risk that you are comfortable with. With regard to margin, I really dont have any specific rules on that regarding opening new position(s), but this is what I do, when i place a trade & when that trade is in profit, I move my SL to Breakeven or at least lock in some profits only then I open a new position.

Anybody who read my previous post on "watch out" for USDCHF as it was nearing the monthly downward trendline? Remember that? Have you seen what happened to it this week? The price touched that trendline & took a tumble on Monday, Tue & Wed on the daily chart but retraced back up on thurday exactly on 50%Fib area at around 1.1203. It might probably go and test the trendline again. Would be interesting to see if the trend holds.

Regards

Myronn

hi myronn,

you have a great strategy here as it instructs a trader to take trades in the direction of the trend (unlike mine where i have to wait for trend reversal signals through pivot points and candlesticks). point is, am open to anything that can bring in consistent profits.

i want to put your strategy to the test but i don,t have the zz indicator. i know you've said it's not a must one has it.....but i would like it.

do you mind sending it to me??

please reply
happy (and careful) trading to you all!!

joegathu

Hi Myronn

Congratulations on your success, could you also tell us about what type of mm you use for eg
1)what percentage of your live account do you risk per trade
2)what percentage of your account do you utilize as margin to open a new position for each trade

The reason I ask is because in the demo you posted i found a trade where the stop loss was at about 10% of your total available account.

Thanks & I hope you achieve your target of 15k this week

In answer to a user question above it is my personal opinion to stick to the trend shown in the larger timeframes like the 1hr becuase they have more significance than minor counter trends shown in a smaller timeframe like 5min. however that does not mean I cant take counter trend trades in 5min timeframe...it can be done and can be very profitable too & when you do that, keep in mind the BIGGER PICUTRE that you are going against a main trend. That also means that support and resistence (swing highs & swing lows) you identify in a larger timeframe are more important than ones seen on 1min or 5min timeframes. Also it i good to have a trendline drawn on the larger timeframe so that should you decide to take COUNTER TREND trades on 5min timeframe againt the main trend, as price nears the larger timeframe trendline, it is better not to place any counter trend trades at all as price nears the main trendline. Yes, you will find excellent trading opportunties in 5min timeframe that go against the main trend and you can take them but keep in mind the bigger trend when you do trade against it.

Hope this helps.

Regards

Myronn

Thank you for sharing this great strategy! I have been having some issues in identifying trends though: what if the hourly shows a general downtrend with congestion (flat range for a day) but the 5 min shows an upwards trend (let us say for 3 hours with 2 swing highs) like EURUSD today. Do I follow the long-term against the current trend, bet on falling prices (on hourly) or stay out altogether?