Trading the Daily Timeframe

I am considering just trading on the Daily timeframe with smaller lot size. The reasons are many. Less stress, less screen time, less noise, larger potential profits, higher win %, etc...

 

This is kind of interesting to me although it's just a raw idea that I have formulated at this stage...

 

http://i177.photobucket.com/albums/w201/jtimpsonstamps/Daily.png

 

The idea is basic but sound: Enter pullbacks (lower highs in uptrend and higher lows in downtrend) in the direction of the trend once the trend resumes. I have marked with large arrows the setup bars where a trade would have been entered on a breakout of that bar. Initial Protective Stop could be just past the extreme of the pullback. In the case of an inside bar, stop beyond the extreme of the outside bar that precedes it. Start trailing a stop a few pips beyond the bar's high/low once it would yield a profit (so in a long trade, the low of the bar would be greater than the trade entry point). Exit 1/2 in this way and when you do, move stop to break even. Exit the other half on trend change or other method. Risk 2% of account on each trade.

 

Here is current chart. The last bar is still open as I post this so the arrow is questionable:

 

http://i177.photobucket.com/albums/w201/jtimpsonstamps/Daily2.png

 

Perhaps you have feedback on this concept or an even better method or system that you prefer?

 

What method do you consider the best for trading on the daily timeframe? It doesn't have to be one you came up with yourself. It could be a commercially available system...

 

Hopefully this discussion will yield some fruitful ideas for us all !

 

Diesel10

Edited December 1, 2011 by Diesel 10

Hi diesel, thanks for opening this thread. Let me confess, that I have my portfolios diversified from H1 to even monthly trades. The daily trading systems are very profitable and most systems can be applied to different underlyings, not only Forex but also stocks, commodities...

My preferred systems are Profitunity (BW), and Ichimoku. These have to be traded manually. Lindencourt Daily can be traded via an EA from Steve available at FF. A further method would be BigSandwich at FF.

 

Regards

i definitely agree that the dailies would present less noise..and could be more profitable but you have to be able to handle bigger stop losses

i definitely agree that the dailies would present less noise..and could be more profitable but you have to be able to handle bigger stop losses

 

Or trade smaller lot size or carefully selected basket

 

Regards

I always keep an eye out for inside bars on the daily.

Diesel 10, it is certainly good to be seeing you start this thread, as trading dailies, and weeklies void the whip-saw, noise, and psychological emotions that smaller TF produce. It's easier to be on the right side of the order flow trading in larger time frame I believe, just trade what you see.

Funny as it may, these simple methods are the ones that make money more consistently and we've all heard of these simple methods when we all started trading.

However, we as humans have to complicate it by adding the adx or stochastic along with 7 more other things to make it look good and confusing.... "Keep it simple and you'll make money".

@Diesel10: what is the blue line in your chart?

@Diesel10: what is the blue line in your chart?

 

Looks like the GANN HILO

 

I trade daily TF but enter on H4 TF

GANNHILO ia great indicator,

draw TL on D1 tf. wait for 123 pattern on H4 and enter.

@Diesel10: what is the blue line in your chart?

 

Gann HiLo with a lookback of 10

The past always looks good, I always have an issue with when to enter. Would you just enter a pending position since you cannot anticipate the move until after the fact?