Can we discuss the Trading rules?

#1
Mods, pls. delete if we are not allowed to discuss here.

So, I have read the PDF with the rules, but it's too fluffy and I like it black and white.
I think it goes like this....
1. Only trade London session
2. Look 2 TF's up. So trading 30min, look at H4 for direction.
3. Only trade M30 in direction of H4.
4. Arrows only appear if all indicators are favourable (ie. all blue and PA is good, Blue BUY arrow prints). So no need to check indicators?
or do we need to look at indi's to see a clear pattern of blue's or multi-indicator is flat-lining. If we get a buy signal, what do these indi's need to show in order to invalidate it and if it's invalidated - why did the buy arrow show in the first place?
5. MA < 50 pips, 20 pips, 50%ATR? from price?
6. Do not enter if high impact news <2 hours away.

So, above are satisfied and now we are in London session, H4 direction is clear...ready to trade :)
4. If arrow appears in M30, in H4 direction, open trade.
5. If arrow appears in M30, in OPPOSITE direction to H4, DO NOT open trade.

Simple?


Exit:
1. TP at fixed pips? 1:1 RR (=stop) 1.3:1? random#
2. Opposite arrow - exit strait away or wait for candle close?
3. Opposite dots? (exit or exit 50% or tough it out?)
3. Partial exit at "x" pips & let the rest ride (to what 3x SL? 2xATR?) or close all?
4. Fast reversal - close immediately...what is a fast reversal and how many pips?

Perhaps we can discuss using the below diagram to illustrate rules.
buy or sell.png
buy or sell.png (254.64 KiB) Viewed 910 times
So, based on that you do an entry yeah? But I see no one else has entered? Why? What have I missed re. the rules?

Re: Can we discuss the Trading rules?

#2
andrew1 wrote:
Fri Jan 17, 2020 7:19 am

1. Only trade London session
We trade mostly the London session but that doe not mean you cannot trade other sessions.
If you like volatility, trade the UK and/or US session.

2. Look 2 TF's up. So trading 30min, look at H4 for direction.
Yes. The H4 chart gives you an idea about the big picture and the M30 chart tells you what is going on right now. You can use other combinations but you should avoid
switching combinations on a constant base.

3. Only trade M30 in direction of H4.
Yes. That's a valuable filter to keep you on the right side. However, when you gained some experience you will probably also take some counter trend trades.

4. Arrows only appear if all indicators are favorable (ie. all blue and PA is good, Blue BUY arrow prints). So no need to check indicators?
or do we need to look at indi's to see a clear pattern of blue's or multi-indicator is flat-lining. If we get a buy signal, what do these indi's need to show in order to invalidate it and if it's invalidated - why did the buy arrow show in the first place?


The indicator simple tells you that everything points up or down. That's important but that does not mean you should immediatly hit the buy/sell button.

Example 1:
  • ProFx buy signal at the beginning of the UK session.
  • Price went above and stayed above yesterdays high.
  • My risk/reward ratio is favorable.
  • The price action looks solid and the H4 trend is pointing in the same direction.
>>> That is a solid signal and I will take the trade.

Example 2:
  • ProFx generates a sell signal in the middle of the UK session.
  • The price stuck in a range and failed to go up and failed to go down.
  • There is very little price action and the chart looks ugly and the indicators look ugly as well (everything is all over the place).
  • The H4 chart looks oversold.
>>> That is a low probability signal and I will not take the trade.

5. MA < 50 pips, 20 pips, 50%ATR? from price?
Yes, it can be done like this.

6. Do not enter if high impact news <2 hours away.
If I realy like the signal and the price action is good, I will take the trade even when there are news in one hour. Simple because I would expect to
be out of the trade until news. But I would not trade before NFP (US employment data).

So, above are satisfied and now we are in London session, H4 direction is clear...ready to trade :)
4. If arrow appears in M30, in H4 direction, open trade.
5. If arrow appears in M30, in OPPOSITE direction to H4, DO NOT open trade.

Simple?

The simple answer is yes. The rest comes with screen time. :)

Exit:
1. TP at fixed pips? 1:1 RR (=stop) 1.3:1? random#

I do not use fixed TP values. Here is why: If I entered a trade and the price action slows more and more down, I will close the trade. I will not look how much pips I am up/down. Simple because my trade idea would be not more valid. Keeping the trade would mean that I switch from having a plan to "let's see/hope".
On the other hand, if the price keeps pushing and does not show any signs of weakness, I will hold my position.

2. Opposite arrow - exit strait away or wait for candle close?
If the price makes a quick U turn I would not wait until the candle is closed. If the price turns slowly a opposite arrow would be a good reason to close the trade.

3. Opposite dots? (exit or exit 50% or tough it out?)
Closing a trade partially in such situations can work well. Mainly it is a message from the chart, telling you that price might start turning.

3. Partial exit at "x" pips & let the rest ride (to what 3x SL? 2xATR?) or close all?
A good practice is to close trades partially (or fully) after a sharp price move. ATR values can be used as well. As example: When the price moved today 3 times
its usually daily value, it is not very likely that the price will keep moving much longer.
Using fixed values is ok at the beginning but keeping a look to price action and indicators works better.

4. Fast reversal - close immediately...what is a fast reversal and how many pips?
Lets say you are in a trade and the price is trending slowly but steady. You are up 30 pips and then the price skips 20 pips and hell breaks loose
on the chart (and you have no idea what is going on). That would be a fast reversal and if this happens you should close the trade as quick as you can. Because of the reversal and because you lost control of the trade.

Re: Can we discuss the Trading rules?

#4
Thanks mate look forward to hearing more views on how people trade this system. I have spent some time getting more familiar with support and resistance. It's not a significant factor in my trading. Fwiw, I have found
TLB_Resistance_Support to be of use. There are many.
I also want candle to be clear of EMA line.
I am not sure about that Multi-Oscillator - anyone use it ? (other than as part of signal)
Exit is of course the key part...I am trialling a few things on demo. Exit london close, exit at resistance, partial exit etc.