Great technique for beginners...

[pompey]

Originally Posted by Akash

Hi Pipsrus,
I am using MT4, you can unzip the file into MT4's indicator folder and it should work .

Rockin' Tradin'
-Akash

anyone can help me to do this? Thanks

[Akash]

Hi,
I am going to discuss my technique once again, because it has some-what changed since my original post.

Settings:

-Use the Kijun Sen (KS) line in the Ichimoku Kinko Hiyo indicator (by default it is the blue line in the indicator), use default settings, which are Kijun: 26 and Kijun-Shift: 9.

-Use the 20 Linear Weighted Moving Average (LWMA).

-Use only 30 min charts, but you can use hourly charts to have a look at the basic trend.

-Trade only 5AM to 5PM GMT.


Procedure:

-Once price crosses the KS line, either up or down, look at the MA and wait for it to curl in the direction of price.

-When the MA is curled, the value of KS line is your entry point. Always wait for price to retrace slightly from the KS line, so as to cover the spreads.

-Once you enter the trade, 90% of the times, the trade will go in your way (if you checked everything and entered at right price), so when it goes to +10 pips, move your stops to break even. 20% of the times it will come back, hit your stops and then reverse again...but at least you save your money.

-I close at +20 pips profit, but if I catch a long term trend then I try to hold on.

-Once you exit and make about 40-50 pips in a day, go out for beers.


CAUTION:

Underline, bold and italicize these points in your mind.

-Make sure that the MA is curled in the direction of price, when price reaches the KS line. Remember, if it isn't curled, then it might probably be a whipsaw. There is always tomorrow and there always will be more trading opportunities. Don't trade today until you don't see something you're sure about.

-Don't enter a trade, if price hits the KS line when it goes almost vertical and price is ranging 5-6 pips. This system is meant to catch trends. It can, but you just have to wait.

-Farther the MA curls around from the KS line, safer the trade.

-Short when MA is over the KS line and long only when MA is underneath the KS line.

-NEVER ENTER IF PRICE HAS PASSED THE KS LINE, ALWAYS WAIT FOR A RETRACE.


I guess that's about all of my system, please let me know if anyone has any doubts and I would love to clear them out. I would also appreciate your comments on the system, even criticism would help.

Rockin' Tradin'
-Akash

[firedave]

Detail chart please ! Thank you

[SRoberts_]

Hi Akash,

Thanks for clarifying your latest system rules, I'm going to start demo trading this tomorrow.

Did you mention that the timeline in MetaTrader 4 is GMT +1 hour ?

Happy Trading,

Steve.
UK

[perching]

Originally Posted by Manzar

Hi perching. This strategy works only with USD/YP or i can use it on other pair as well.

You should be able to use on all pairs.

[LoriK]

Hi Akash - thanks for posting.

I need some clarification on
[quot]-When the MA is curled, the value of KS line is your entry point. Always wait for price to retrace slightly from the KS line, so as to cover the spreads.[/quote]

Do you mean placing a limit order for the value of the KS line? I noticed that the price is past the value most times, or at least when I looked at it LOL.

Thanks,
Lori

[SRoberts_]

LoriK,

This is my take on what Akash does;

Once the price bar crosses KS, don't necessarily place your order immediatley (but get it ready to submit if you can) and then wait for a short period of time (say one or two trading ticks) for the value to potentially retrace (hopefully by the spread amount) and then strike while the price has dipped. Of course if the price continues to head back the wrong way, well then it's time to bite your nails !

For instance I use MetaTrader 4 and do the following;

1) Wait for price to cross KS (up or down)





2) Open the new order screen, setup the order pricing (stops, profit etc) and then watch the tick chart carefully.

2a) On the tick chart if the price starts going even further in the overall intended direction then I place my order without any further delay. (I wont have covered the spread, but hopefully the price will rise high enough to cover it)



2b) If the price dips back down (retraces), as long as it's not a huge retracement, then I place my order with the benefit that I've covered the spread.

I hope this has helped, but if this isn't what other people do or what Akash intended by his comments, I'd be glad to be corrected.



Steve.
UK

[fxquest]

Hi Akash,

Thanks for the clear post with your updated system

I programed an MT4 expert based on your rules. The expert had decent results but I found a few things that make the results significantly better (at least when back-testing):

1) A S\L of 20 is probably too tight (MT Optimization suggests 50).

2) Taking profit with a trailing stop of 10 (rather than a fixed 20 pips PT) improves the size of the winning trades.

3) I added an "MA filter" which is the minimum distance between the KS to the MA. Setting this at 6 pips helps in reducing whipsaws.

4) Also, if the limit entry order is not filled within 30 minutes it is cancelled (this is probably obvious to anyone manually following the rules but I had to define some rule for the program).

One thing I did not implement into the expert is the "vertical caution".

With all those changes the expert produces great back-testing results with the GBP/USD 30M (5AM - 5PM) !!

I am starting to forward test and hope that the results will be similar. I will let you know.

Thanks,
fxquest