jiva 5,5

Place your new trading idea here to see if someone can automate it.
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jiva34
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Joined: Tue Nov 15, 2011 1:26 pm

jiva 5,5

Post by jiva34 »

As requested here is the strategy that has consistent results. It is used on a longer time frame. The day chart and trades can last for weeks or even months if there is a strong trend.
Whether or not it can be adapted to lower time frames is a good question.

It is not my original idea but has been shared with me by a professional trader. His guidance has made a huge difference for me, psychologically as well as technically.
Student teacher relationship is invaluable so I don't know how much of the technical part will be received by just blabbing it out here. But let's see if just the technical alone can carry this thing forward. Trading manually there is a bit of room for decision making by subjective experience. In other words if things don't look right I could just say I'll pass on this one.
But here is the basic idea.

On the day chart: At the opening of the new day candle. Trades are not taken mid day. A good trending pair like EU or GU is preferred but EJ, CJ etc are just fine too.
Based on a cross of the 5 simple and 5 lwma.
Enter long cross up, stop 1 ATR, after a move 2 ATR move stop to Breakeven plus 5 pips profit, trail at 2 ATR adding positions on retracements. Stops for added positions are placed above or below swing hi or swing low.
Exit stopped out or a reverse signal.
calculate position sizes according to stop.

use of ATR is significant.


I am really really risk averse, so I have modified this just a bit for my own tolerance level. Which can be called "tippy toes"..

same entrance strategy, but exits are a bit different.
after a move 1/2 ATR, exit 1/3 position move stops for remaining 2/3's to breakeven + 5 pips profit.
after 1 ATR exit another 1/3 , trail the stop for last 1/3 following swing hi and swing low or stop out at opposite signal.

This gives me a lot of peace of mind since I am in profit right away after 1/2 ATR and the remaining position is locked in - NO RISK from there on out... and I am free to look for another trade on another pair.
At present I have 4 trades open, NO RISK. 2 pairs are running the last 1/3 of position, they can stay in forever as far I am concerned...
And 2 are heading for the 1 ATR mark... But they are also locked in having shed 1/3 for profit at 1/2 ATR.
I trade .5% for each initial opening and not to exceed 2% risk at any time.

So I have made some money and am free to look for 4 new trades while these open trades play out with NO RISK.

Of course this changes the r/r ratio since a win could be 1/3 at much as a loss but it balances out in that a possible loss can be captured as a 1/3 win.
I don't have enough historical data accumulated to verify this but by trading in a simulator this appears to be the case.


So that's it.
there are 2 versions based on different exit strategies. Aggressive and tippy toes...
Can it be adapted to lower time frames?
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