Simple Profitable Method

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Trader28 -


Have you ever traded just the 10-min charts?

That question goes to everyone I guess. It seems that if you traded only the 10-min chart, using the same guidelines, you could really make just 1-2 large trades on most days, and make a very nice profit.

I guess it just depends on your preferred trading style. Id love to hear feedback.
 
No I haven't, but I can see that suiting certain trading styles, generally speaking the longer the time frame the smoother and more accurate the signals

Incidentally the 3 period simple moving average with 2+ horizontal shift works a treat on 10 mins
 
Does anyone understand the fundamental difference between MA and MACD? What does it mean for the macd to be under or moving away from the sma? I notice on my 10 min graph both ma and macd have a downward slope, macd is more variable and is consistantly below the sma.. im curious what this indictates.
 
Quote from paulbechard:

Does anyone understand the fundamental difference between MA and MACD? What does it mean for the macd to be under or moving away from the sma? I notice on my 10 min graph both ma and macd have a downward slope, macd is more variable and is consistantly below the sma.. im curious what this indictates.
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Loosely speaking think of the crossovers as trend and the zero line as momentum, the example you give means the trend is down but being above the zero line doesn't have much momentum behind it

And the MACD MA should be a 9 period exponential moving average not an SMA
 
A real trade i made this morning , +19 pips net exit near the pivot:
macd histogram 60/130/45 above 0, up cross of the macd 12/26/9, we can go long.....
I will create a thread for my trade with this technique on forex and i will stop posting on this thread which is mainly for futures.
Thanks to trader 28 for his help and good trades to all.
 

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thanks for posting, but what is different in your approach?
imo you take only trades in the trend direction of the 10 minute TF
(based on 60/130/45 macd on 2 min)
 
you are right! there is nothing different in the approach i use! indeed the macd 60/130/45 on 5minutes is aproximately like a 12/26/9 on 25 minutes charts minutes, the only advantage of my charting is that :
* you have everything in the same chart ( 5 minutes and 25 minutes for me , just like the 2 minutes and 10 minutes of trader28)
* when i open my screen i watch the macd 60/130/45 and i know how i am going to trade : only long trades if macd 60/130/45 >0, it prevents me form overtrading or taking 5 losing reverse in a row....it forces me to trade in the trend and not to try scalping against trend.
the trades in agreement with the main trend have better % of success and better risk reward than scalping against trend.
My settings are just a way to make things more visual and to avoid trading in a new direction every 20 minutes getting whipsawed time after time, which is the main danger when you trade a method using macd and or moving averages...
My goal is to catch the first pullback of the session, the other pullback are less interesting because necessarily closer to the point of reverse of the market...
Good trades to all!
 
I just wanted to thank trader28 for stimulating my brain a little.

Over the past four weeks I have developed a little system that has been extremely profitable based upon some of his original principles.

I'll mention a few key points that are different from trader28's in case any of you want to explore. All trades are on the ER.

I have 2 macd's on my chart:
1) 12,26,9
2) 3,10,26 per LBR

Most of the signals come off of the 3,10,16, as it is faster.

There are two types of entry signals:

1) Zero Line Cross (I only take these AFTER a divergence)

2) Zero Line Reject (similar to Woodies on the CCI)

Target is 1.50 points and stop is 1 point.

This is a very robust way to trade and is only for traders who don't mind taking 7-10 signals per day.

To give you an example of a weeks worth of trades:
Mon-Thurs week of 10/9 (I didn't trade Friday)


25/34=73.5% for $2815 net per contract

21 of the trades were ZLR and 13 were ZLC.

A couple of the trades had losers less than 1 point as I got a signal in the opposite direction before being stopped out.

So far today, 3 winners for 4.5 points per contract

I am trading no more than 5 lots, as I have found slippage and ease of entry and exits decrease above 5 lots on the ER.
 

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Quote from DonKee:

I just wanted to thank trader28 for stimulating my brain a little.

Over the past four weeks I have developed a little system that has been extremely profitable based upon some of his original principles.

I'll mention a few key points that are different from trader28's in case any of you want to explore. All trades are on the ER.

I have 2 macd's on my chart:
1) 12,26,9
2) 3,10,26 per LBR

Most of the signals come off of the 3,10,16, as it is faster.

There are two types of entry signals:

1) Zero Line Cross (I only take these AFTER a divergence)

2) Zero Line Reject (similar to Woodies on the CCI)

Target is 1.50 points and stop is 1 point.

This is a very robust way to trade and is only for traders who don't mind taking 7-10 signals per day.

To give you an example of a weeks worth of trades:
Mon-Thurs week of 10/9 (I didn't trade Friday)


25/34=73.5% for $2815 net per contract

21 of the trades were ZLR and 13 were ZLC.

A couple of the trades had losers less than 1 point as I got a signal in the opposite direction before being stopped out.

So far today, 3 winners for 4.5 points per contract

I am trading no more than 5 lots, as I have found slippage and ease of entry and exits decrease above 5 lots on the ER.
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great info!!

please keep updating your trades w/charts if you can.

thanks a bunch!

I would love to know how you handled the chop for the last 3 hours...as you can't tell the signal will be made during chop until hindsight
 
Quote from DonKee:



21 of the trades were ZLR and 13 were ZLC.
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Good stuff Donk, what is the break down of winners vs losers for ZLC and ZLR? ie: how many of the 13 ZLC's were winners and how many of the 21 ZLR's were winners?
 
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