Advanced strategy #10(Trend Line Trading Strategy) - ENJOY !

[epsilon43]

Kraven I only trade the daily and 4 hour time frames. I believe any thing lower then you run the risk of unreliable signals. I used to have quite a spectrum of currencies to trade but realised that this probably made you less profitable. I now only trade the Eur/USD, AUD/USD, and GBP/USD. It is best to not focus on too many currencies and may be increase your lot size per trade. It is a great system due to its logic.

[kraven]

thanks again epsilon.....i agree with you on the fewer pairs i only trade the GU and EU (spread) and i'm starting to agree with you on the lower time frames, i often trade 15m dropping to 5min but i'm tiring of getting in and out and SL's getting hit..hence i've came back to this......can i ask what strategy you use on the daily?

[epsilon43]

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!

[abundance]

Thank you Epsilon. Good to know there are still people around here, though it appeared to be your first post . Mine, too.

Yes, I think I will focus on the major pairs as you mentioned. How do JPY pairs perform from your experience? From observation I think CHF pairs are rather erratic. Do you think so?

You mentioned you focus on daily n H4 timeframe. Do you go down to lower timeframe to make entry?

Thank you.

[epsilon43]

Hi Abundance,

Yes I agree with you the CHF trades can be erratic. I used to trade the Cad/JYP and Eur/JYP - but considering they move in a similar fashion to the EUR/USD, why not focus on that currency alone? Some times spreading yourself thin has no advantages due to currency correlation.

I have previously dropped down to the lower time frames whilst trading the 4 hour chart (so look for trades on the hour chart) - although admittedly, I have now set my EA just to take trades on the day chart and not worry about dropping down to the 4 hour TF when trading the daily TF's. Ultimately, when you do drop down, you take more risk - good for some but not good for others.

My advice would be for new traders to stick with the daily or 4 hour chart initially. The problem for most is that the strategy doesn't produce lots of signals on the day chart. Itchy fingers and all that can lead to traders seeking gains on lower time frames. The goal is to be profitable and not to be a frequent trader!

[kraven]

thanks Epsilon, have you got a like to the EA? thanks

[epsilon43]

Hi Kraven,

The EA isn't commercially available. I developed it from an basic EA to look for pivots and to trade the lower time frame with money management etc. I could sell you one if you are interested so best to send me an email to discuss?

[epsilon43]

I will post a couple of charts next weeks to explain what to do when the trend line is broken. In the past I have re-drawn the trend line but this can be quite problematic. If anyone can send me a link as to how to post charts on this forum, it would be greatly appreciated!

[azadali]

Here's a trade I took earlier today on EUR/USD. Its still open. Hope you can open the attachment to see the chart

[toinou21]

i thought the thread was dead, glad to see some people are still posting chart. I will post some as well next week.