by epsilon43 » Thu Nov 18, 2010 9:46 pm
I agree with you Kraven, the lower time frames can be frustrating. I even found the 4 hour time frame quite time consuming when you are looking at multiple charts - hence I stream lined this with just 3 currencies.
I have refined this strategy considerably. On the daily TF I either drop down to the 4 hour chart and find my entry. However, I look for a pivot bar rather than the first 4 hour bar after the trend line has been intersected. This is more accurate. I think the original strategy was to place a buy order at the high and low of the bar that crossed the trend line - which is fine, but I like to see evidence of price movement. So I wait for a reversal pivot at the trend line.
I now have an EA which identifies pivots once the trend line is hit and drops down to the lower time frame for better entries - alternatively, I set it just to trade the daily by finding the pivot. I realized that trading the daily was so much more stress free and trades can run for so much longer (even though you use smaller lot sizers) than trading the 4 hour chart. As for TP, I have a movable bar on the EA so I can either take profit within a swing or use the EA to trail price at major peaks or troughs to keep the trade running longer.
I also sorted the problem of re-drawing trend lines - which incidently I feel you shouldn't. When a trend line is broken, I use a second strategy (123) to set orders at low or high. this is quite effective since you can be sat around for day's waiting for an entry using the daily charts. One more thing, I did set my EA to trade 5 min.15min and hourly charts - all with pretty dismal results. This is how I know the lower TF's do not work!
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