03/03/2010 23:55:11
tom
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BACKTESTING
Backtest all FOREX markets as requested looking for the pattern ABC / pinbar/doji/engulfing reversal
Supply proof – Write atleast one trade
)n every instrument in forex on a 10 min chart
Trade setup time - text on chart + elipses boxes - arrows - trend - divergence - pivots
Trader Entry - Chart marker - + text + rules
Trade Exit - chart marker - rules used
YOUR NEXT TASK
Write down simple - non verbose - trade setup and trade rules
What time you will trade
What instrumnet you will trade
Your position size
Your risk size + technique ( technical stop + static stop+ spread)
Rules for When you should stop trading....
rules for when you do not trade
rules for sitting on hands
You final task
20 trades
All in journal
All using the trade plan
WHAT is teh result - do you need to alter the trade plan or can you go live?
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MicroTrends tom
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09/03/2010 00:59:25
tom
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The Immediate Task is articulate on charts:
Trade Setup
Trade Entry
Trade Exits
On charts using text and chart markers
Then post to forum
use a detailed subject
put some info about trends, open
ABC pattern lower high b sell for example
edited by tom on 09/03/2010
Example http://www.micro-trends.co.uk/forum/topic375-trade-setup-and-entry-confirmation--late-vs-early.aspx
edited by tom on 09/03/2010
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MicroTrends tom
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09/03/2010 09:53:52
tom
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Write a list of
Trade Setup Conditions
Trade Entry Conditions
Trade Exit
You wont use all of these - on all trades...
maybe a only a few
write different types of and how to calculate
stop
entry
target
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MicroTrends tom
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09/03/2010 09:54:35
tom
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Write a list of market conditions
OHL
TRENDS
GANN FANN
DIVERGENCE
ETC
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MicroTrends tom
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09/03/2010 10:03:33
tom
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10 Min Charts
find a reversal trade setup if you can: for a morning star, everning star, bearish engulfing, bullish engulfing, pin bar
find the following:
ABC C sell high
ABC C sell lower high
ABC B sell high
ABC B sell lower high
ABC C buy low
ABC C buy higher low
ABC B buy low
ABC B buy higher low
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MicroTrends tom
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10/03/2010 04:18:45
tom
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Every Day
Write a practice trade for a chart 10min + 3 min be side of it if possible of one trade
Trade Setup
Trade Entry
Trade Exit
Put in it alos
stop
entry type
target
it must start subject like
GBPUSD 10 Mar ABC C sell at high with trend
inside post details of trade again
Trade setup was ABC C sell at high with trend
wooides was tredngin short
this wa a publlback intraday weekl and intermdetie teend were all down
so therefore this was agood trade setup to have
blah blah
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MicroTrends tom
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10/03/2010 04:47:38
tom
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Go back to the basics and attend the the NinjaTrader Training webinars
this was 6 weeks ago...
http://www.ninjatrader.com/webnew/trading_online_events.htm
Introduction
to NinjaTrader New User Orientation SuperDOM Basics Advanced Trade Management
Level 1 Advanced Trade Management
Level 2 Charting
Level I Charting
Level II Chart Trader
Trading
FOREX with NinjaTrader
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MicroTrends tom
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10/03/2010 06:50:33
tom
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To finish
Copy and post exaclty as near as poss as this post
http://www.micro-trends.co.uk/forum/topic375-trade-setup-and-entry-confirmation--late-vs-early.aspx
find the same day and do teh same trade
Then
Post charts 10 min and 3 min for thurs and fri
Video help
http://www.micro-trends.co.uk/forum/topic381-how-to-mark-a-trade-on-a-chart.aspx
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MicroTrends tom
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14/03/2010 01:51:39
nigel
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Trade Set ups
ABC Pattern, Look to buy or sell from B or C
From High or Lows, at support or resistance, Ideally with trend & pin bar reversal pattern
Pullback from a MA with the trend
Trade entry
Use Gannfan placement to show support & resistance & trend line break
Try to enter trade on new 240 min bar or 1 hour or 30 min bar
Wait for Donchian channel upper or lower on 3 min to form before placing trade
Look for Engulfing candle patterns after set up, and morning or evening stars
Close above or below Cyan MA,
Trade with the trend
Enter on a pullback to a MA, with the trend
Look for confirmation on woodies, From extreme & crosses zero, Green in box with + or - trending insidered or green dot following series of opposite colour,
CCI & RSI with trend & above 50 for long (RSI),50 for going short, CCI below zero for short, Above zero for long
Higher time frame charts to confirm candle colour to enter trade,Also trend lines drawn on HTF
Range & Renko charts can help with candle colours and trend line breaks
Range has a regression channel to show the trend
Use 3 min chart to confirm trade entry on 10 min chart this is our Trading time frame chart, wail for 10 min bar to close before placing trade
Support & Resistance levels,
Yearly,Monthly,Weekly,Daily levels, Yesterdays Open High & Low, Fibinachi levels-weekly for example, whole numbers on RHS of Chart,
Write these figures down before trading, as it is too much information to apply to chart, only apply the most important levels
Trade exit
Trendline breaks
Close above or below Cyan MA
Reversal pattern after new C, at new High or Low, look at all indicators for possible confirmation
Engulfing candle Patterns at pin bar reversals
Areas of Support or Resistance - R1,R2,PP,S1,S2
edited by nigel on 14/03/2010
edited by nigel on 14/03/2010
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nigel
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14/03/2010 19:34:44
tom
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GOOD EFFORT
Trade Set up - pick one not many
Reversal patterns at s/R OHL - ABC on 10min charts
ABC Pattern, Look to buy or sell from B or C
From High or Lows,
ABC does not have to be highs or lows
it can be a higher low or lower high -these can be mich better trades
the open is very important OHL not HL
The high can be the open
the low the open
or the open support or resistance after a new low or high -
at support or resistance, Ideally with trend
& pin bar reversal pattern
Does not have to be pin bar
Pullback from a MA with the trend
pullback to not from
a MA such as blue cyan 10 SMA for example when trying to get in with a move whihc is trending - not range bound- but how do you know that?
Trade Setups
confirmation of the trade setup
Negation of the Trade setup -
Trade entry
Use Gannfan placement to show support & resistance & trend line break
GANN FANN projects support and resistance not TRENDS - IT IS NOT A TREND LINE
Trade setup - and entry - ie
Try to enter trade on new 240 min bar or 1 hour or 30 min bar
this cuts down over trading - but filters out some easy trades
For example new hour - first 10 min bars has 3 canldes of 3mins - you may trade using
Wait for Donchian channel upper or lower on 3 min to form before placing trade
only true if you are looking at C or B break - but not true if you are waiting for a pullback
only true if you a 3 min trader
The 3 min hcart can help but will also get you in on trades that dont exist - use it like a zoom lens
Look for Engulfing candle patterns after set up, and morning or evening stars
Lool for these to confirm a trade setup - not after - these are the trade setups
however one of these candles maybe part of the trade entry -
for pattern trades - which do not wait for confirmation of other indicators
Trade setup has to be confirmed before you can look for trade entry sometimes it is part of the same thing
Close above or below Cyan MA, only true on a reversal move when range bound or on a reversal which will then go with the trend (whihc trend)
Trade with the trend - not always that is trade strategy not a trade entry - you may be better to only choose setups with the trend if you are not good at counter trend reversals
Enter on a pullback to a MA, with the trend - only at times - if you always do that o will loose more than you win - this is only good in some situations and also depends if you are near end of the move ...
Look for confirmation on woodies,
on which timeframes?
From extreme &
not always from extreme - as woodies will chop and show extremes quite oftern
much better a long series of dots followed by an opposite -(plus all other variants and rules)
crosses zero, not always - it may never cross on some charts - it may also be Zero line rejection
but good to do so 0as yo may miss the move - so you look at the 3 min for ealry confirmation - to get in so you are not mid range
Green in box with + or - trending insidered or green dot following
Trade setup not entry - this give you direction - in other words it tells you what you cant do - ir go against it - but it all depends on time series adn bigger picture intermediate trend/ intraday / intraweek
If you wait for this then you wont get in - it is a bonus if there and should tell you if your trader setup is dodgy or not
series of opposite colour, followed by another colour trade setup condition - not entry but can be for both
CCI & RSI with trend & above 50 for long (RSI),50 for going short, -only if you are looking at 3 min trades - but yes its a slow rule to follow, too laggish and not needed for the best trades
CCI below zero for short, Above zero for long on what? 3 Min, renko, range?
+100 to -100 is better
Higher time frame charts to confirm candle colour to enter trade,
Trade setup is HTF
Also trend lines drawn on HTF
Trade setup
Range & Renko charts can help with candle colours and trend line breaks - how?
Range has a regression channel to show the trend - it shows a very shortterm trend based on action
You can zoom in to Use 3 min chart to confirm trade entry on late confirmation versus late
10 min chart this is our Trading time frame chart, TTF
wail for 10 min bar to close before placing trade - trade setup and trade entry and exit
candle close on breaks and patterns
DO NOT BOTHER WITH THIS IT IS TOO EARLY
Support & Resistance levels,
Yearly,Monthly,Weekly,Daily levels, Yesterdays Open High & Low, Fibinachi levels-weekly for example, whole numbers on RHS of Chart,
Write these figures down before trading, as it is too much information to apply to chart, only apply the most important levels
Trade exit
Trendline breaks
Close above or below Cyan MA
Reversal pattern any point..not C
after new C, at new High or Low,
look at all indicators for possible confirmation -better to use one method and to monitor its effectiveness - via trade sim, journal and backtesting
Engulfing candle Patterns at pin bar reversals
Areas of Support or Resistance - R1,R2,PP,S1,S2
FIBONACI levels
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MicroTrends tom
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14/03/2010 19:46:53
tom
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TRADE SETUP
ABC Reversal Patterns at Support and Resistance on 10Min Chart
Confirmation assisted/filtered with trend- gann fan - woodies - price action - OHL SR - timing
Negation of Trade Setup ( filter)
pinbar followed by opposite
pinbar followed by engulfing
morning evening stars
What are the
Market and Technical conditions which can affect the validitiy/ probability of the Trade
Before trading session
During trade setup
Intermediate, weekly, daily Trends,
S/R levels, Fib Levels, ATR, Timing, Volume, Gann Fann S/R
Chart confluence, indicator confluence,
price action - coloour versus direction
Trade Entries
Trade setup confirmed (how?)
Woodies zero cross
MA
ABC Trend break
parabloic break
CONFIRMATION
late confirmation versus early -
maybe you need to use the 3 min to help get in during a 10 min trade setup
Exit
trend line break
blue cyan on 10min or 3 min
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MicroTrends tom
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14/03/2010 19:47:29
tom
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and many others.....
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MicroTrends tom
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17/03/2010 10:17:05
tom
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it is better not to do anything than to do something half cobbled together - rather than making time and effort to do it right using all the resources at hand the forum etc
The only proper chart done so far was copied... the second was a good standard the third was terrible...
what went wrong...?
There is, a video and a template to use...
all you need to do is copy and past the text in and edit
SOLUTION
use the forum good examples, video, look at your printed charts...
throw out all printed charts that are substandard...
do not mark up charts unless you are going to do it properely.
do not do anything around trading unless you are going to do it properley.
give up trading now unless you are going to take it seriosuly
as you go make a list of the trade setups, entries, exits, stop, targets, market conditions etc...
ie copy the text for the trade setup, entry, exit into a spreadsheet
what this means is that you will have loads of different trade setups inthat spread sheet on one row side by side
the under neath in a new row
trade entrys
then underenath in a new row
trade exits
so you can use it in the future......
i think this is the only way of keeping it all on track and not veering off into substandard results ever again...
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MicroTrends tom
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17/03/2010 10:27:48
tom
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SNIPPETTS
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MicroTrends tom
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19/03/2010 12:11:58
tom
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The only trade setups to learn with are the following: ( due to keeping it simple baby steps first)
pinbar at high
pinbar at lower high
pinbar at low
pinbar at higher low
B Buy, sell
C buy, sell
(ABC) - Sell, Buy B or C
Draw all ellipses
Draw box aorund the trade setup on 1 candle the pin bar
Other Trade setups
Ignore alll others for now:
E.G
later you can look at other reversal patterns, engulfing, stars, + trend breaks at ABC,
Ignore trend, ignore all other stuff such as woodies
Trade entry
woodies crosses 0
close, above or below cyan MA
(trend line break ignore)
Trade exit
trend line break
blue cyan close above, below
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MicroTrends tom
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19/03/2010 12:18:08
tom
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PRACTICE TASK #1
On a 10Min Chart - Mental exercise to learn the script...
VERBAL DRILL = no chart markings
Task is to practice drill and speak out loud,
to spot and to speak the logic - later to add in more complex variants and conditions
Do not do any other trade setup or conditions...
ABC SYSTEM
Examples
Trade Setup
Pinbar at high
B Sell
Trade Setup
Pinbar at lower high
B Sell
Trade Setup
Pinbar at low
C Buy
Trade Setup
Pinbar at higer low
C Buy
Trade Setup
Pinbar at high
C Sell
Trade Setup
Pinbar at lower high
C Sell
Trade Setup
Pinbar at low
B Buy
Trade Setup
Pinbar at higer low
B Buy
THEN DRILL
the Trade SETUP
Followed by TRADE ENTRY VERBAL DRILL
TRADE ENTRY
WOODIES crosses 0
CLose Above/ Below Blue MA
NOW DRILL ENTRY ORDERS, STOPS, AND TARGETS
VERBAL DRILL
MARKET ORDER ENTERED
STOP ORDER PLACED ABOVE HIGH + 13 TICKS
STOP ORDER PLACED ABOVE LOWER HIGH + 13 TICKS
STOP ORDER BELOW HIGH - 13 TICKS
STOP ORDER BELOW LOWER HIGH - 13 TICKS
TARGET ORDER PLACED AT HIGH - 5 TICKS
TARGET ORDER PLACED AT LOW + 5 TICKS
IGNORE ALL OTHER TARGETS E.G ( R1,R2,S1,S2)
THEN DRILL
TRADE SETUp
TRADE ENTRY + ORDERS
TRADE EXIT
TRADE EXIT
CLOSE ABOVE/BELOW BLUE MA
AND OR
TREND LINE BREAK
NOTE - just whip backwards on the 10min historical data - practice and drill....
When you have exhausted all your data - change to the EURUSD
then any other forex chart....
PRACTICE TASK #2
CHART MARKUP
Actually mark the chart up over 3 months of GPBUSD
Elipses, boxes, chart marke arrows for trade...
TRADE SETUP
TRADE ENTRY
TRADE ORDERS
TRADE EXIT
Do 2 or 3 on histrorical data.... post to forum for the day
PRACTICE TASK #4
Simulated trade
warm up by makring on the chart...or wlaiking through ones already marked
do a trade - good or bad - no matter
Record it in journal
ABC TRADE - C BUY
FUTURE TASKS
THEN WE WILL make it more sophisticated
with trend - pullbacks etc
counter trend
edited by tom on 19/03/2010
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MicroTrends tom
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19/03/2010 12:58:52
tom
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After doing the below - drill this with filtering...
from exampke: only trade with the trend ---perhaps
looking at candle colours and chart confluence....
woodies extremes and trend stats
early versus late confrimation
levels of support and resistance
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MicroTrends tom
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22/03/2010 21:04:11
tom@micro-trends.co.uk
Posts: 10
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TRADE POST EXAMPLE/S
SHORT AT HIGH OR LOWER HIGH
Trade Setup= Pin Bar @ lower High, B Sell
Trade Entry= woodies crossed below 0, close below cyan MA
Market Order Short ( or Limit below MA-5ticksl) price 5000
Stop @ High + 13 ticks ( or swing high or above parabolic etc) price 5015
Target @ Open or Low or PP or R1 or R2 or a MA price 4050 + 5 ticks
Trade Exit= Position Closed : Trend Line Break,Close Above Cyan MA (SMA 10) Price 4078
Trade Exit= Stop hit - Price 5015
Trade Exit= Target hit - Price = 4050
Trade Exit= Stop hit - moved in to BE Price = 5000
Trade Exit= Stop hit - moved in above Cyan MA - PRICE = 4085
Trade Exit= Stop hit Trailed Parabolic - Price 4080
PNL = +20Ticks
REVERSE FOR LONG TRADES
FOR JOURNAL ONLY
Note: Counter Trend -with trend (intraday 30min? etc??? which trend?)
edited by tom on 25/03/2010
edited by tom on 25/03/2010
edited by tom on 25/03/2010
edited by tom on 25/03/2010
edited by tom on 25/03/2010
edited by tom on 25/03/2010
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11/05/2010 09:23:46
tom
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#1 Drill -Visual Backtet 20 Trades - looking for lower highs and higher lows
#2 Subscribe to Stocks and commodoties maagazine - www.trader.com
#3 Look in ninjaTrader news FXCM - look at the charts analysis - learn the lingo - learn how to describe what you see
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MicroTrends tom
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12/05/2010 06:46:28
tom
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buy the articles on silvain vervoots stops - stop placements
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MicroTrends tom
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