Advanced strategy #10 (Trend Line Trading Strategy)

Stop Loss hit for USDCHF trade shown above...im out.
Will wait and see if it comes down and starts to bounce on the 3nd trendline (shown above)& that might present another long opportunity.looking at the daily and 4hrly charts, the price is making higher swing highs and higher swing lows so there is still a strong upward movement on this pair.

Cheers

Myronn

Ohoh, how do you do it? I also want such balance.
......went studying again.

Hello all,

almost 3weeks of demoing the trendline trading strategy and the current balance as of Thursday 23rd of October 2008 stands at $129,453. Thats from an initial trading account of $5k. See attached screenshot & also an example of a long entry I took on the 1hr USDCHF. I guess the biggest challenge for me was to be patient to wait for the right setup to occur before placing trades and also trying to be be consistent by sticking to the rules of the trading system. Emotions need to be kept under control, thats for sure.

Happy trading

Myronn

to the user asking about entry; you really dont have to wait for price intersecting or breaking the trendling to place your entry.

for long entry as price nears the trendline:

place buy stop order at least 5pips above the high of the candle(s) that nears the trendline, and if that high is not taken out by the next subsequent candle, move you buy stop order to the next lower high of the candle. do this until you price bounces up and take your order or price breaks the trendline significantly do the downside, that may signify a change in trend so you cancel your buy stop order.

For short entry:

place sell stop order 5 pips below the low of the candle(s) that go near to the trendline. If the low is not taken out, move you sell stop order and place it 5pips under the low the next subsequent candle that forms and closes, do this for each subseqent candles that form as that head towards the trendline, until price comes down and takes out the previous candle low plus 5 pips and then you are in the trade or if price intersects the trendline to the upside and you might consider cancelling your sell stop order.

Regards

Myronn

Hope this helps.

Great strategy! Does anyone know if I set the entry simply using the prior "line breaking candle" even when the current price candle is away form the line or do I manually wait for the price to come to the line and then set my entry order the very moment a candle closes that has broken the line?

Thank you!

Myronn4

Back to work.

MYRONN WROTE:

I cant help but wonder why that trade went against you so I had to find out why and when I opened up my chart and had a look at the EURUSD long trade you took on Thursday (as shown in the chart you posted) this is what I found:
(1)The peak (swing high prior to your long entry) happened to be in a area of 1hr main trendline (down) & price was made to obey it. You took a long entry on a downward plunge of price that was made to obey that main trend. That peak could have provided a good short entry opportunity as per the strategy.
2 THINGS.
1—I WAS SLEEPING WHEN THAT SWING WAS AT IT’S HIGH, AND
2—SHORT WOULD HAVE BEEN COUNTER TREND TO THE 3H AND 1 DAY TRENDS AND
3—IT WASN’T TRENDING DN ON THE 1HR. REMEMBER THAT HIGHER TF’S HAVE PRIORITY.

(2)you could have placed you stop loss just below the candle that you shorted on previously.
I AGREE. I COULD HAVE MOVED IT UP TO EVEN BEFORE GOING TO LUNCH . MY STOP WAS PREPROGRAMMED AT 50 PTS AND I DIDN’T CHANGE IT.

(3)your trade was against the main trend using a minor uptrend Channel & I do spot 2 other possible long entry points in your chart including the one that you took. Did you spot that or you missed it?
MY DEFINITION OF A TREND IS HIGHER HIGHS, HIGHER LOWS AND VV. SINCE OCT 5TH, EUR WAS TRENDING UP ON THE DAILY, 3H AND 1H. IF YOU LOOK AT DAILY TREND OVER MONTHS, THEN YES, I WAS COUNTER. BUT ACCORDING TO WHAT I CONSIDER A TREND I WAS WITH IT. I DID NOT TAKE PREVIOUS TRADES BECAUSE I AM LIVE AND WAS IN CHF AT THE TIME, THEREFORE ACCORDING TO MY RULES OF MONEY MGMT, COULD NOT. PLUS CHF IS HIGHLY CORRELATED, SO WAS NOT WORRIED. AS YOU WILL REMEMBER, I WAS ON THE PROFIT SIDE OF CHF.

It looks like you made the same mistake on GBPJPY as I did on the EUR. . What happened to the trailing stops? We have to keep in mind that these prices will either obey the TL or not So to move the SL at least to even (or plus $1) once the price has moved in your direction will go a long way to your win/loss and profitability. Also, liquidating half your pos when you have decent pts in the bank is a good idea. Possibly the best is to liquidate half, and move the stop to even. Best of both worlds.

You need to read Tom Demark trendlines on this site. He has one thing that is imperative in your TL system-- read right to left.

Remember too that things change after the weekend, that the trend that was valid last week may be invalidated.

Also, a TL that is too steep will be broken easier than a shallow one.

Is that it for now? Yes.

one more thing. upload some of your mistakes including all pertinent info so we can learn from ya.

G

Appreciate your comments Ali,

Regards

Myronn

Hi Myronn,
I'm admiring your work. Keep it up and thank you soooo much!
Cheers,
Ali

Hello all,

I entered the GBPJPY trade I spotted above & Price went went down as predicted but to at least 190 pips and I had the opportunity to lock in some of that pips gained but I chose not to & that decision cost me...as price went back up against me in the trade above and hit my stop loss.

Regards

Myronn

Potential short trade setup for GBPJPY.

Hello All,

This is Sunday 5:14am 12th October, Aussie time,

going thru the charts this morning, I spot a great short trade setup occuring at GBPJPY in the 1hr chart as per the strategy. If you switch to the 30min timeframe, you will see the 3rd candle before the close of trading is a very bearish candle that happened very near(almost touched) the main trendline. That candle gives a high probability that price has reacted to this 1hr trendline and most likely it will head down again.

It will be interesting to see how this turns out. I intend to place my sell stop order when market opens again @ 170.78 & my stop loss @ 172.35 & I have 2 possible profit targets @ 168.06 or 166.23. So my stop loss=157pips & my max potential gain=455pips.

Regards

Myronn

Hi Arsalan,

Good on you. Its good to know you are using the trendline trading strategy. The more you use it, the more you will begin to see how how price behaves when it approaches those main trendlines: The stronger the trend, price will OBEY the trendline, and if the trend is weak, price may break the trendline and that may signify a change in trend. I like this strategy best from others that I have tried simply because I do not try to fight the trend and I know that that the odds are on my side.

Happy trading.

Myronn

Hello all:

In answer to the user who submitted this question: Did you implement this strategy into live trading or just as a demo? If you are currently trading a live account, I would like to know how long do you test a strategy before starting to use it in real account?

Answer: I have been demoing different strategies over 1 year and blew up my demo accounts every time & also I blew up my real mini account with FXCM! I took a full stop to evaluate what I was doing wrong. I spent countless hrs watching the charts & trying to figure out a trading system that would fit me that would have a lot more success. then came the "AHA" moment when I began to draw trendlines and saw prices reacting on these trendlines. That was it. That was what I needed. that is the background behind the trendline trading system.

So Im still on demo obviously. I intend to demo this trading strategy for at least 2 months. Those who use this strategy on live accounts remember that you have the odds on your side when you trade with the trend. Dont fight it! Follow it by getting in at the right time as per the strategy. You will be supprised by the high accuracy and success of this system. Keep it simple.

Hey Grant! Awesome trades! Keep it up!

Cheer from Down Under

Myronn

Grant,

awesome job explaining your trades.

I cant help but wonder why that trade went against you so I had to find out why and when I opened up my chart and had a look at the EURUSD long trade you took on thurday (as shown in the chart you posted) this is what I found:
(1)The peak (swing high prior to your long entry) happened to be in a area of 1hr main trendline (down) & price was made to obey it. You took a long entry on a downward plunge of price that was made to obey that main trend.That peak could have provided a good short entry opportunity as per the strategy.
(2)you could have placed you stop loss just below the candle that you shorted on previously.
(3)your trade was against the main trend using a minor uptrend Channel & I do spot 2 other possible long entry points in your chart including the one that you took. Did you spot that or you missed it?

Regards

Myronn