Advanced system #14 (Simple trading with Daily range)

Hi Stuart

Working hard on your system - from testing now gone live and had a good day so far today. I am trying out an indicator I have just discovered - Ichimoku, Japanese for "one look". Be very interested to hear if anyone has had experience of using this indicator.

I think it may help identify the probability of trends, and I will be back as soon as I have I fully worked out the rules to screen out trades like your EURGBP. What I am hoping is that it will give three levels: one for a trend continue with the 25% average range take profit level, one where there is a much higher probability of a large break in one direction and where it is worth risking a higher % of the average range for the profit level, and then one for a choppy market: not sure yet but possibly then use a smaller stop loss and take profit level. As I understand it so far, it very cleary defines the support/resistance area so once the price breaks above/below a move beyond that candle is a clear confirmation of the break.

I am using an ATR indicator on a 5 day setting to give me an average range. I am using the COG with a 30 day setting which gives me a very clear picture of the month's trend. Again, feel that there is much more information to be used from the COG indicator than I am seeing at present - possible the other levels should be helpful to define stop loss and take profit levels. One thing I discovered that I didn't know is that metatrader includes a daily bar for Sunday - probably this is a good factor as I imagine it reduces the size of the ATR for Monday trading.

As a last observation, I haven't had time yet but feel mayube we should look at the correlations of the pairs we are using - do you think it might be worth screening out the very highly correlated pairs? On the other hand maybe we are automatically including a hedging strategy?

Look forward to reading your posts.

This is a great approach for which thanks.

Diana

Hi Stuart,

How did you loose both ways on the EURGBP today? or was for yesterday 23/3/09? Looking back in history I didn't see any loss. I suppose may be it was due to your 24 hrs period otherwise it was supposed to be a perfect trade.

Please COG? Let me know it and how to apply it.

Thanks for your system. It's a wonderful one.

Stuart

You are a little disappointed today. Understandable, BUT you have learned several very valuable things! We learn (sadly) as we adjust from losses. THANK YOU again for your incredible effort on Advanced 14. We will all do better tomorrow and continue with a healthy system that will do nothing but get better.

Best to you, David

Hi All,

As I discovered today ... using the daily average is not that recommended. Although for days with spikes, it is then highly recommended!! Continue using the previous days range, unless there was an "out of the ordinary" move (spike) - in that case, use an average.

I managed to find a non-painting COG indicator. Please use it.

JB_Center_of_Gravity.mq4

I do apologize, but I am going to have to go back on my previous comment with regard to trading both ways - don't. I learned and expensive lesson today on the EURGBP which hit SL in both directions!!! My fault I know.

Another indicator which might help is the MTF HAS indicator? (Multi time frame Heikin Ashi smothered). Give it a go?

MTF_HAS_Bar_Lower_A.mq4

I have thought of testing and setting the orders 15% of the previous days move away from close price, but still taking the 25% profit? This way it drastically decreases your risk/reward ratio ... and it gets you in the trade earlier. I am going to put it to the test now, and let you know the results tomorrow.

Until tomorrow then ... and thank you all for the ideas and help.

Stuart

Hi David,

I haven't had a chance to compare 25% vs 10 day Average trading. PP stop loss is still in testing.
I'll try to catch up this week.

Regards,
Edward

Edward, Stuart

[ E ] I wonder if you have any follow-up thoughts on using the Pivot Pt + 15 as your SL?

Secondly, do you still prefer to take the 25% off the PREVIOUS day (perhaps unless there is a spike) rather than the 10 day AVERAGE?

[ S ] Stuart, do you believe your daily performance has been enhanced by using the 10 day average figure, or is that a tactic to hold for days following spike moves?

Thanks to both,

With appreciation, David

You'd need to register a demo account with any of the MT4 Forex brokers, and use COG indicator on MT4 platform - the platform it was made for.

Regards,
Edward

I was wondering if someone could suggest where i could get the COG indicator?
I am with FXCM and they dont have it.

Stuart I believe you've created the holy grail or as close to it as we can ever get, thanks so much. If only the risk:reward could somehow be raised to 1:1 Please everyone lets work on this.

Thanks to Stuart and of course our Edward.

Hey Josh - currently up 12 pips - lol. Got hit for -164 on gbpusd which in hindsight i should never have entered because it was flat lining anyway and i got stopped out of EURJPY for -101 but it looks like it will eventually hit its targets. Was this pair one of the ones you went with and if so how did you avoid being stopped out?

Did do however +74 GBPJPY, +29 EURGBP, +47 GBPCHF, +35 USDCHF, +49 USDJPY, +42 CADJPY.

Do you use any trend indicators in particular like the CCI or do you just use your eye and price action - I guess my real question is, on what basis did you only pick 3 of the 10 pairs?

Cheers

Scott

Hi Raj,

Yes, you have to wait till a new candle opens for the next day and then take previous day data and fill in the excel file.

We don't trade on Saturday and Sunday.
For Monday trades, I believe (I'm not sure, Stuart knows it better :) we should take Friday + Saturday + Sunday data combined.

To Walter: COG stands for the Center of Gravity. It is the same indicator.

Regards,
Edward

Hi all, Thanks for all this information team work is the best. I have a question is the COG the same as the Center of Gravity Oscillator?
Thanks in advance for your answer

Walter

Hi Stuart/Edward , I would like to know if I have wait until a new candle opens for the next day, so that I get the previous day close price and then fill in the excel sheet and then key in market order to go long or short.?
Secondly what would be the High, Low and close price to be taken for saturday and sunday?

Cheers
Raj

Hi Phil,

I used COG on 1 hour chart to determine trend direction.

It doesn't matter where the price is trading in relation to the blue line or any other COG's lines. Just the overall inclination of the lines at the most recent candle matters.

On the screenshot the COG tells us to focus on Selling now.
If we pretend that now is the beginning of the day and we look to place new orders, we would be biased towards Shorting EURUSD based on the hourly chart trend.

Regards,
Edward

Hello Edward,
I'm a little confused about the COG indicator. Do you look at the COG on the 1HR charts to determine direction just before placing trades? Are you looking at price to be above the center blue line to go long or below it to go short? If you could post a chart showing how you determine direction with the COG, I would really appreciate it. A big thanks to Stuart for presenting this interesting concept. Thanks Phil