waterskiguy Posted January 4, 2011 Author Report Share Posted January 4, 2011 alright, The beauty of 4H candle trading is that we can only check the charts every 4 hours because we can only get confirmed entries when a 4H candle closes. It's up to you when you look for opportunities to trade. Waterskiguy checks all pairs in the morning in his timezone and he also checks them at night. Checking once a day would still highlight opportunities to trade, though not as many as checking twice. The more pairs you scan through each day, the better your chance of finding a pair which is strongly trending and a good candidate for a trade. Because we're longer term trading we're not too concerned about spread, so we can trade some of the less popular pairs if they're trending nicely. With FxPro I have 20 pairs in my market watch list from EURUSD to AUDCAD. Set up all these pairs on 4H charts and load the template. When checking pairs go through the market watch list methodically changing the timeframe to weekly first. If there's no obvious trend on the weekly, then move onto the next pair. If weekly is trending, then change the timefream to daily, and if daily isn't trending in the same direction as weekly then move on to the next pair. If both weekly and daily are trending nicely, then look at the 4h chart and see if there's an arrow with the trend and both RSI indicators are lined up. It sounds a lot to check, though should take 20-30 mins max. and is worth the effort if we're looking at making good consistent pips each week :) You are sooo right. It seems like a lot to do but it takes me 20,30 mins to go through all my pairs. I find 1 trade in am when I awake and 1 trade in pm before I go to bed. Most weeks 5 - 10 trades. Quote Link to comment Share on other sites More sharing options...
anton1713006147 Posted January 4, 2011 Report Share Posted January 4, 2011 waterskiguy, Would you please to tell ask how long you have been trading this system? What is the max drawdown? Thanks and regards, anton Quote Link to comment Share on other sites More sharing options...
waterskiguy Posted January 4, 2011 Author Report Share Posted January 4, 2011 waterskiguy, Would you please to tell ask how long you have been trading this system? What is the max drawdown? Thanks and regards, anton This system has been traded for a long time or a variation of this method 1 - 2 years. You ask about draw down - I can not answer that. This is a "tool" I provide for you to trade the market. I trade or have traded this method with great success. But just because I trade it with great success does not mean you will be able to. A lot of how successful you are with this "tool" navigating the market will come down to what is YOUR general ability, skill set in trading in general. There are general rules that govern trading, basic principles, if you have a good understanding of those then you should do fine, if you are brand new to trading then you can't expect to have the same success trading this compared to someone who has logged 6,000 - 7,000 chart hrs. Hope this makes sense, I don't want to sound harsh and please don't take it that way but that is reality. ravijj, bnbb2004, forex.pathfinder and 3 others 6 Quote Link to comment Share on other sites More sharing options...
bnbb2004 Posted January 4, 2011 Report Share Posted January 4, 2011 (edited) I'm not sure where the "thanks" button is, but I'd like to thank you Waterskiguy for sharing your system and all the helpful info from Soundfx. I look forward to trying it out this week. Happy Pipping to all! :-) Edited January 4, 2011 by bnbb2004 Quote Link to comment Share on other sites More sharing options...
waterskiguy Posted January 4, 2011 Author Report Share Posted January 4, 2011 Sorry for my stupid question, but do you guys actually watch all pairs? I don't necessarily "watch" all pairs but yes I do go through all pairs. Out of my list of say 20 pairs I write down the 4,5 pairs that look the best and out of that I will choose 1 trade to put on. I do this again in evening, takes me about 20, 30 mins to go through. I create a watch list of sorts so by the time I do my analysis in the evening I don't really have to go through all 20 pairs again. I already have my "list" started and this then carries on to the next morning and so on and so on etc etc. beppus, alright and civicsi411 3 Quote Link to comment Share on other sites More sharing options...
Zoltan Posted January 5, 2011 Report Share Posted January 5, 2011 I put in two trades today; 1 lot on the Aud/Usd and 1 on the Euro/Usd. I am closing both of them now, Aud/Usd 44 pips and 110 pips on the Euro. I will be traveling so no open orders for me. Just trade the signals in the direction of the trend. I used the M30 charts, sorry waterskiguy. No price action, pivot or fib levels, candles or any other nonsense were used. Don't shoot me, I am just saying. Enjoy the system, if you can make money with it you are a trader if you can't... . With this system you will not have to think a lot. You'll do better, I believe if you forget most of the things you learned about Forex. Thanks again waterskiguy, I had fun testing it. Quote Link to comment Share on other sites More sharing options...
harry007 Posted January 5, 2011 Report Share Posted January 5, 2011 Looks like need a powerful speed to use the indicators. I am running other software too meanwhile. guys if you have a older computer, then first save the calculation for your CPU. go to MT4 Menu > Tools > Options > Charts and reduce the "Max bars in history" and "Max bars in chart" I used now at my older Laptop only 500 bars , thats by M30 chart 250 hours = more then 10 days hope that will help you Quote Link to comment Share on other sites More sharing options...
shabz Posted January 5, 2011 Report Share Posted January 5, 2011 Have you guys tried the Cruscotto indicator, it's in the forum, this will tell you the strength of 8 individual currencies, Gold & Oil. Once setup you could just look at the weakest currency against the strongest in the higher timeframes, H4, Daily, Weekly. It will be alot quicker than trawling through 20 pairs X 2 timeframes. As you only need to find maybe 2 - 3 candidates first, then do your 2 timeframe analysis. You can update your candidates list much quicker this way, maybe twice a day. Quote Link to comment Share on other sites More sharing options...
kraven Posted January 5, 2011 Report Share Posted January 5, 2011 well i looked over 9 pairs today and couldn't see any all going the same way (weekly, daily, 4hr) The next time anyone see's one can they post on here, as they don't repaint i'll be able to check out the signal. thanks Quote Link to comment Share on other sites More sharing options...
Guest phreak Posted January 5, 2011 Report Share Posted January 5, 2011 Correct me if I'm wrong, but it DOES REPAINT. I few minutes ago a 'down' arrow appeared on H4 GBP/USD chart; and it kept appearing and disappearing a few times (depending on price movement I assume). It's gone for now... If it is not repaint, what is it??? Quote Link to comment Share on other sites More sharing options...
termar Posted January 5, 2011 Report Share Posted January 5, 2011 Great system and I’m learning a great deal. My broker is Dukascopy and they only support Jforex platform. Would you please post the source code for your indicators so I can convert them to Jforex? Thanks in advance, termar Quote Link to comment Share on other sites More sharing options...
eggzactly Posted January 5, 2011 Report Share Posted January 5, 2011 Correct me if I'm wrong, but it DOES REPAINT. I few minutes ago a 'down' arrow appeared on H4 GBP/USD chart; and it kept appearing and disappearing a few times (depending on price movement I assume). It's gone for now... If it is not repaint, what is it??? There is difference in intrabar and close bar - Intrabar all indicators recalculate, so repaint... regards, eggzactly Quote Link to comment Share on other sites More sharing options...
eggzactly Posted January 5, 2011 Report Share Posted January 5, 2011 Correct me if I'm wrong, but it DOES REPAINT. I few minutes ago a 'down' arrow appeared on H4 GBP/USD chart; and it kept appearing and disappearing a few times (depending on price movement I assume). It's gone for now... If it is not repaint, what is it??? There is difference in intrabar and close bar - Intrabar all indicators recalculate, so repaint... regards, eggzactly Quote Link to comment Share on other sites More sharing options...
waterskiguy Posted January 5, 2011 Author Report Share Posted January 5, 2011 Correct me if I'm wrong, but it DOES REPAINT. I few minutes ago a 'down' arrow appeared on H4 GBP/USD chart; and it kept appearing and disappearing a few times (depending on price movement I assume). It's gone for now... If it is not repaint, what is it??? NO it does not re paint - a valid signal is when the BAR closes - the bar has to close - with any system you should not be entering until the candle/ bar closes. Once the bar/ candle closes and arrow appears it will not go away. We do not enter with market orders only limit orders. Then that way we make the market come to us a have to go through to fill our order. Quote Link to comment Share on other sites More sharing options...
waterskiguy Posted January 5, 2011 Author Report Share Posted January 5, 2011 There is difference in intrabar and close bar - Intrabar all indicators recalculate, so repaint... regards, eggzactly Correct - if you watch ANY indicator while the bar/ candle is forming it will re paint. That is why you always wait for the bar/ candle to close. Once the bar/ candle closes and a arrow appears it will not move or change/ re paint. Always wait for the candle/ bar to close on any method especially on position/ swing trades. A lot can happen in a 4hr bar or daily bar. So wait for the close of the bar and it will not re paint. That is why some people like to have a bar/ candle timer which tells them how much time is left in the candle/ bar before it closes. U can use this to judge how much time until the signal becomes valid or you can just wait until the candle closes. Quote Link to comment Share on other sites More sharing options...
manganate Posted January 5, 2011 Report Share Posted January 5, 2011 Have you guys tried the Cruscotto indicator, it's in the forum, this will tell you the strength of 8 individual currencies, Gold & Oil. Once setup you could just look at the weakest currency against the strongest in the higher timeframes, H4, Daily, Weekly. It will be alot quicker than trawling through 20 pairs X 2 timeframes. As you only need to find maybe 2 - 3 candidates first, then do your 2 timeframe analysis. You can update your candidates list much quicker this way, maybe twice a day. This one is also good if you turn off the news reader part: http://indo-investasi.com/showthread.php/9000-Ultimate-Currency-Strength-Meter! Quote When mind lingers in one place efficiency is lost Link to comment Share on other sites More sharing options...
manganate Posted January 5, 2011 Report Share Posted January 5, 2011 This system has been traded for a long time or a variation of this method 1 - 2 years. You ask about draw down - I can not answer that. This is a "tool" I provide for you to trade the market. I trade or have traded this method with great success. But just because I trade it with great success does not mean you will be able to. A lot of how successful you are with this "tool" navigating the market will come down to what is YOUR general ability, skill set in trading in general. There are general rules that govern trading, basic principles, if you have a good understanding of those then you should do fine, if you are brand new to trading then you can't expect to have the same success trading this compared to someone who has logged 6,000 - 7,000 chart hrs. Hope this makes sense, I don't want to sound harsh and please don't take it that way but that is reality. Of all the good trading summaries given in this thread of what to do and how to do it, this is the one which mystifies beginning traders the most. They wonder, "Why can't you just tell me!!!" It explains why those sites that advertise: "Follow our instructions exactly," or "Look over our shoulders (for a fee, in our top secret zone)," and you will make millions, never work. Why? Because the ppl you are watching have just explained what they have been doing live and that time is now in the past. They are the ultimate re-painters! If Waterskiguy starts a trade and I start the exact same trade at exactly the same time we will probably have different outcomes because my experience and attitude is different from his. I hope this helps someone. BTW: I suspect someone will soon request coders to design an EA for this. I wont do it. I know what the outcome will be. We've all been there and done that. But best of luck anyway. Quote When mind lingers in one place efficiency is lost Link to comment Share on other sites More sharing options...
grooter Posted January 5, 2011 Report Share Posted January 5, 2011 Strangely, EAs of profitable manual systems often suck, so the systems get trashed. Wondering what's missing here. Probably that's a more philosophical question :) Quote Link to comment Share on other sites More sharing options...
manganate Posted January 5, 2011 Report Share Posted January 5, 2011 Strangely, EAs of profitable manual systems often suck, so the systems get trashed. Wondering what's missing here. Probably that's a more philosophical question :) All systems start of as manual before being turned into auto. Bad manual systems will always give very bad auto systems. A good manual system will have been honed by an individual over a long period to maximize its efficiency and profitability: it will work like a marriage, with fights, rages, love - and great sex! But when it becomes mechanical, not even the designer will be able to pick up the little nuances; even whether to go with, or avoid news. In other words, not even the designer of a good system has a hope in hell when it is turned into a mechanical one! halcyonn 1 Quote When mind lingers in one place efficiency is lost Link to comment Share on other sites More sharing options...
soundfx Posted January 6, 2011 Report Share Posted January 6, 2011 (edited) Guys, Each trade should be taken on its own merit and you need to think of drawdown in the same terms too. Potential drawdown on a single trade depends on how much you've staked and the size of your stop. Because waterskiguy's system is longer term trend following all your trades will naturally already have an edge - hence keep on trading the system with a sensible 2.5% of account stake consistently and your account should grow. Here are some tips to improve on trade selection to ensure that you pick only the best trades and can see some consistent account growth: 1. You see a down trend on weekly and daily and an arrow pointing down on the 4H candle which has just closed - do you jump straight into the trade short with a market order? If so, then you've already reduced the odds of your trade succeeding. You may even think that short term RSI isn't too important if it doesn't line up and just home in on the arrow because it's made a noise and grabbed your attention - this too is a fatal move. So...firstly ensure that you follow all rules to the letter every time you trade. 2. You see a trend down as in 1. and decide to correctly place a sell stop just below the low of the 4H candle, however when you calculate your swing high you realise it's 300 pips away. Then you look at what's happened to price recently over the 4H, Daily and Weekly charts - has price always stopped at a support level ? How far away is that support level ? If a previous support level has held and is only 100 pips away, then you're best off ignoring this trade and looking for a better one, for the simple reason that the reward of 100 pips isn't worth risking 300 pips to get it. 3. You see a down trend as in 1. again, however you've missed the next 4H candle after the one with the arrow on and that next candle went down but zoomed back up to close with a stonking great spike on the bottom. Enter short here with a market order (which you shouldn't be doing anyway!) and you're asking for trouble. 4. Draw some trendlines on the charts in all timeframes - ask yourself if your trade makes good sense. Are you looking to go long at the top of a well established weekly channel ? If so, then again you're likely to come unstuck as price bounces off the top of that channel yet again and eventually blows through your stop. As for EA's, the majority of EAs fail because you can't code mechanical exits that work anywhere near as well as manual trader's exits. Manual traders have a feel for market flow, they can see differences in speed of candle formation and can minimise losses. The typical EA has a simple stop of x pips which guarantees that it will kill an account when market conditions change. More sophisticated EA's can get around this problem a bit by using a % of ADR as the stop, but the stop is still nowhere near as manual trader's stop. Good manual scalp traders can get out of a lot of potentially losing trades by just seeing price "stalling" etc. and getting out quick for breakeven. Some EA's are able to place stops at swing highs and lows as required by this system, but then they fail because they can never get the right risk/reward. This system is different to most in that the entry and exit rules are clear-cut. We're placing orders with stop at swing/high low and have a target which is at least as big as the stop or preferably bigger. The bigger targets will come from some chart analysis of S/R levels in different timeframes which is is possible to code into an EA, though not easy. So why not create an EA ? 1. The analysis of "trend" is easy to define with the human eye when the rest of a chart is taken into context (something we do naturally). This is where the EA would come unstuck. Also in the additional checks which we may sometimes manually make on S/R levels, trendlines etc. will be very hard to code. 2. What is the point of creating an EA in the first place? Most folks want an EA because they're not full-time traders and can't be at a screen all day and some are just lazy and want to turn on a machine which earns them money for doing nothing every day lol. This system requires a maximum of 1 hour analysis each day, if you prefer you could just check the charts once a day for 20-30 mins at a time convenient to you. If you trade this system correctly you won't need to look for the latest marketing scams "Earn $$$$'s per week for 1 hour's work a day" because you already have the capability to do just that (or will do very soon :) ). Edited January 6, 2011 by soundfx jtrader, suica, fxshare and 11 others 14 Quote Link to comment Share on other sites More sharing options...
forexfx Posted January 6, 2011 Report Share Posted January 6, 2011 (edited) I'm not getting any arrows on the H4 chart....did I miss anything? Thnks Edited January 6, 2011 by forexfx Quote Link to comment Share on other sites More sharing options...
alright Posted January 6, 2011 Report Share Posted January 6, 2011 I'm not getting any arrows on the H4 chart....did I miss anything? Thnks You need to see these indicators on your chartshttp://i55.tinypic.com/sv58k4.jpg If you don't there must be something missing. Are you using the template provided? forexfx 1 Quote Link to comment Share on other sites More sharing options...
forexfx Posted January 6, 2011 Report Share Posted January 6, 2011 (edited) hahaa... it was because I renamed few of the indicators....my fault :( thanks alright :) Edited January 6, 2011 by forexfx Quote Link to comment Share on other sites More sharing options...
Freddie Posted January 6, 2011 Report Share Posted January 6, 2011 EMERGENCY! EMERGENCY!! This system brings my computer to a halt! Any suggestions? Quote Link to comment Share on other sites More sharing options...
alright Posted January 6, 2011 Report Share Posted January 6, 2011 EMERGENCY! EMERGENCY!! This system brings my computer to a halt! Any suggestions? Tools>Options>Charts Reduce the Max bars in chart. At the moment I have 5000 and 8 charts open no problem. But you can reduce it even further, I suppose to 2000, without affecting the signals. Freddie and ⭐ totemg2000 2 Quote Link to comment Share on other sites More sharing options...
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