Trade in Multiple Time Frames

[Wippi1817]

Hello,

I have a strategy which works in the lower timeframe very well - it performes in 1h or 4h too. Does it makes sense to trade a strategy in multiple timeframes as confirmations?

The following example (is is a Long Strategy Only):

I get the signal in 5 min timeframe and I enter the trade
--> while during the 5 min trade a 15 min Signal happens I jump to the 15 min timeframe and wait until the exit point occures in the 15 min trade
--> while during the 15 min trade a 30 min Signal happens I move to the 30 min timeframe
---> move to the maximum timeframe

For the exit scenario there exists to options (I am currently not sure about this)
--> I stay in the biggest timeframe and finish the trade
--> or when lower time frame (in this example the 15 Min timeframe) happens an exit I will take the exit

That do you think about confirming a signal in higher timeframes and move to it?

Would be great to hear your thoughts....

Thanks in advance!

 

[humbletrader2016]

The general purpose to use bigger TFs is to see the big picture and where major S/R are. I tried your method before and it didn't work quite well in the long run. I don't know what instrument you are trading. In Futures market, You will find many times it moves up/down so fast that bigger TFs signals lag behind.

 

[tommcginnis]

Your goal should not be entry(s) and exit(s), but *trades*.
So you need to examine this idea over a good chunk of time, and see how it behaves for each underlying. (Humbletrader's point re "Futures" I would clarify to Indexes.)

I used to tick-scalp. I used 1minute charts with T/A that usually held well for 10-15 minutes -- while my actual *trades* were 00:30 - maybe 05:00. Why so short?

"Enter on a shout; Exit on a whisper."

I'm using that now, too -- but for week-long trades and EOD data.
You *won't* catch it all. You will lose less, though. (For my algo.)

 

[wrbtrader]

Hello,

I have a strategy which works in the lower timeframe very well - it performes in 1h or 4h too. Does it makes sense to trade a strategy in multiple timeframes as confirmations?

The following example (is is a Long Strategy Only):

I get the signal in 5 min timeframe and I enter the trade
--> while during the 5 min trade a 15 min Signal happens I jump to the 15 min timeframe and wait until the exit point occures in the 15 min trade
--> while during the 15 min trade a 30 min Signal happens I move to the 30 min timeframe
---> move to the maximum timeframe

For the exit scenario there exists to options (I am currently not sure about this)
--> I stay in the biggest timeframe and finish the trade
--> or when lower time frame (in this example the 15 Min timeframe) happens an exit I will take the exit

That do you think about confirming a signal in higher timeframes and move to it?

Would be great to hear your thoughts....

Thanks in advance!

Seriously...just backtest the different situations you're thinking about and then simulate trade them to determine your answers instead of relying on the thoughts of anonymous people.

Backtest Results + Simulation Trading should give you a double shot into what you should be doing prior to placing a real dollar on a trade.

wrbtrader

 

[Specterx]

Hello,

I have a strategy which works in the lower timeframe very well - it performes in 1h or 4h too. Does it makes sense to trade a strategy in multiple timeframes as confirmations?

The following example (is is a Long Strategy Only):

I get the signal in 5 min timeframe and I enter the trade
--> while during the 5 min trade a 15 min Signal happens I jump to the 15 min timeframe and wait until the exit point occures in the 15 min trade
--> while during the 15 min trade a 30 min Signal happens I move to the 30 min timeframe
---> move to the maximum timeframe

For the exit scenario there exists to options (I am currently not sure about this)
--> I stay in the biggest timeframe and finish the trade
--> or when lower time frame (in this example the 15 Min timeframe) happens an exit I will take the exit

That do you think about confirming a signal in higher timeframes and move to it?

Would be great to hear your thoughts....

Thanks in advance!

You have basically the right idea. The best results are available when signals from one TF cascade into a higher one, e.g. a directional signal on the daily which will trigger a weekly signal if it works. Trade management is user-defined but in general, you need to use risk points from the higher TFs as the trade evolves.

This type of approach lets you convert a typical 1.5x-2x R:R trade into a 5x-8x trade, on the basis of initial risk.

 

[murray t turtle]

Hello,

I have a strategy which works in the lower timeframe very well - it performes in 1h or 4h too. Does it makes sense to trade a strategy in multiple timeframes as confirmations?

The following example (is is a Long Strategy Only):

I get the signal in 5 min timeframe and I enter the trade
--> while during the 5 min trade a 15 min Signal happens I jump to the 15 min timeframe and wait until the exit point occures in the 15 min trade
--> while during the 15 min trade a 30 min Signal happens I move to the 30 min timeframe
---> move to the maximum timeframe

For the exit scenario there exists to options (I am currently not sure about this)
--> I stay in the biggest timeframe and finish the trade
--> or when lower time frame (in this example the 15 Min timeframe) happens an exit I will take the exit

That do you think about confirming a signal in higher timeframes and move to it?

Would be great to hear your thoughts....

Thanks in advance!

%%
Long story short; sure, use the larger time frames.You may get more dividends/profits + less commissions, in ETFs. I like a 5 hour chart/50day moving average............; if i tried to trade off a 5 minute chart i would starve LOL.

TA is not hogwash; many would tell you that, hoping you never discover a 200 day moving average.Most of the money made in the stock market is long /mutual funds/long ETFs; but QQQ+ SMH, especially QQQ are good downtrend /bear trends, below 200dma.

Actually i though QQQ would rally/uptick a bit a bit more @ 200dma LOL, but live + learn.,

 

[speedo]

Yes but it's complicated. Each have to develop their own rules based on observation and testing.