Simple Indi's to consider for 10.4

[Jonathan2FI]

Hi Ingot,
your quest to make 10.4 safer is excellent - and I appreciate it is a fine line between diluting an excellent strategy, trying to mechanise something which will always need some intuition and adding real value.
Once people understand 10.4/5 and have several 100hrs behind them trading it then you can read NBs and others posts and see they do not take all trades .... but why? 240 was there RSI had flat-lined etc.

1. Trade retracements (RSI2 or Stoch) in direction of trend defined by 240lwma - crystal clear!

2. Safer entry (since RSI2 will often be flat lined for multiple bars and price is can be doing many things. Yes I understand that if you have placed your SL at the 240lwma plus a couple of pips this should not worry you - unless you are under capitalised for this type of trading and then it will scare the pants off you. Yet it worries some very experienced traders (who I assume are adequately capitalised for 100pp plus SLs) who take the trade off if it does not comply/move after a certain time. So here I believe you add value with additional confirmation indi's lag is of course key. I would mention that many 10.4 safe traders that cannot screen sit trades are better off taking fewer safer. Note this is not a set and forget statement.

3.Avoid ranging and whiplash ...and specially those pesky "have you
had an accident recently telephone calls" not in a car but yeh I just
got hit by boj head on.
Yes we can look at angle of 240lwma if flat be careful or another shorter MA or AO based on MAs or CSS or spuds stoch. Which is better ? personal choice, how you want to use (visually or EA) and results.


4. Avoid Taking trades where price has moved substantially away from 240lwma already.......mmm
Envelopes I have used in the past what have others used?

5. Near a major S&R again what are others using

Are there others ? plus comments if I have missed a point or drawn wrong conclusions

Jonathan

[Ingot54]

Interesting questions Jonathan, and they deserve far more time to consider than I have tonight. I will ponder this and give you a considered response in a day or so.

Others may also like to throw in an answer to this.

I like the way you put the opening statement though:

Hi Ingot,
your quest to make 10.4 safer is excellent - and I appreciate it is a fine line between diluting an excellent strategy, trying to mechanise something which will always need some intuition and adding real value.

Your use of the word "safer," is the key to all we do, given that there are people on the opposite side of all trades, whose mission in life is to give us a receipt for our money

Thanks for refreshing the thread too - appreciated.

[Jonathan2FI]

Ingot,
Continuing with the focus of safe trading I provide the following for comment ....
with the opportunity of anyone identifying a potential flaw, short cut or improvement in my current technique I open up all details. Note this post is about building safe trading techniques and tools to support 10.4 - it is experimental and therefore the following is not a finished trading system someone can apply. Stick to 10.4 if in doubt.

OK here goes
1. Take NBs logic to put together target list at D1 using Currency Slope strength from 10.4/10.5 info page - some objectivity needed here - look at absolute level , previous levels, angle etc to indicate general direction
2. Put together relevant pairs and scan YAD104v1.07 to see if setting up (optional can go straight to charts if you wish)
3. Go to charts that pass these filters
4. On the chart I use trad. 10.5 Grey 5.02 But with the following
4.1 Only with AO on bottom window with RSI2 over laced no CSS as I have used already in (1)
4.2 Evertrend indi to pick up on the obvious S&R + trend lines (I have not found an infallible indi that does this and you need to check and add etc..The fact that you are opening multiple charts and scanning opps I find an initial auto indi here helpful... any recommendations considered?)
4.3 ADX cross from ingot
4.4 Envelopes based on 240lwma with deviation set at 2.2-2.6 must set
after identify historical extremes
5. Then
5.1 is the pair trending? Check daily any obvious trend lines? and make sure no obvious conflict with AO e.g. at extreme high or low and about to change in the opposite direction you need!
5.2 is the pullback valid or is it a stronger reversal e.g.
check RSI2, check dist. from 240lwma ref. envelopes
5.3 Is AO about to turn e.g. at extreme low or high or at least slope flattening
5.4 Does the trade have space are any of the following too close ?- pivots - major S&R, trend lines, pivots, psyco levels e.g. 1.0000
5.5 ADX crosses would be nice not essential and certainly do not like if against direction of trade
5.6 Look for obvious SL entry and TP levels ( I do use Pivots for setting many of my TPs but not all)
5.7 Calc. risk and position size and enter pending(s)
Note because I cannot monitor by the hour or even 4 hour I look at scaling in up to total risk level of 2% - I do this at this point using pending orders and I look for obvious levels to identify the multiple entry points
6. Monitor every 8-12hrs and take profit or close if something has changed from above including scaling out
7. Target 2% pw. if 2% already achieved either exit completely or drop risk to 0.5% for any future trades.
Basically apply 10.4/5 then look for reasons not to take - if passes then depending on location of 240lwma potentially pull stops in and set multiple pending
Jonathan2FI