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Testing those settings now, let me show you one of the entries i have been working.
So my normal systme provides me with a relatively precise entry point with a stop of 3 ticks. Now i would normally scalp out for +5 or 6 ticks as indicated on the chart1, but as you can see on chart 2 at the same time we had a signal bar forming. While i agree that if you look at the top left part of the lower left corner there could have been fakeouts/spikes it generally seems to be the case that these signal upmoves will provide at least 4-5 more ticks in your direction. On the larger timeframes (right side of picture 2) you can see the signal bar forming in the mean time. Now once those would have closed you would have had essentially a golden ticket to simply "ride the trend". Essentially taking 3x more in terms of profit than you regularly would.
So this is one of the applications I am currently developing for my exit strategies using flexrenko.
I generally like the idea of using your type of entry system but i have yet to discover more "data" for the higher timeframes. As of yet i am unsatisfied with the settings, each of them is peculiar in its own way and has advantages and disadvantages. 10-9-8 is relatively interesting and 13-12-11 seems to work out nicely for longer moves and displays the same data as the 10-9-8 but reducing the "noise".
on the other hand 5-4-3 is too noisy yet provides a cleaner view for certain entries whereas 4-3-2 is generally much much much more precise but if you dont have an entry system you are going to get suckerpunched by the "whipsaws" and countermovements.
The charts are interessting that way, as i said i will definitely check out your settings for the higher timeframes, i am very interested in the concept of entering limit orders on retracements and how to minimize stops, or if im just going to go with the smaller timeframes. I wanted to ask you, have you tried playing around with geometry and flexrenkos? I.E trendlines or andrews pitchfork or fibonacci (expansion, projection, retracement etc ?)
Not exactly FlexRenko, but these "renko" bars have some nice, profitable swings... gotta just keep 'riding the waves' and reversing at all the trend changes in this GC market....
Thanks that line of yours seems to do well. I have not tested I.E trendlines or andrews pitchfork or fibonacci (expansion, projection, retracement. But I use 50% area for entrys on a pullback. The first 1 I dont know what it is. (I am from Sweden) I know Andrews Pitchfork and Fibbonacci. I will look at it and see if I can come up with something. Regards Outlander
So far im quite happy, my exit efficiency has gone up dramatically and correlates with my overall entry efficiency now. Also its a neat reward you can reap for trading only 1 contract, very rewarding. i wish every day was like this.
Results on FGBL Future and Nasdaq are even more impressive actually than on 6E. This tool is definitely a goldmine when it comes to exit strategies and holding trades. Thanks for sharing, i still feel the need to make some additional tweaks to it before beginning on working on an automated system and using this as exit criteria, but i need to look a bit deeper into sierracharts coding mechanisms for that.
Instead of all in/all out on one contract, have you thought of trading TWO contracts and reversing with THREE contracts each time and trailing the entry stop up to reverse at trend change, but in the meantime, covering one of the two contracts at 8-10 ticks when that profit is available on the one contract, thus always trailing ONE at all times?
Theoretically that is doable although on live i will not be able to do this because of my account size, its simply too high risk for me. If somebody was willing to step up to the plate and say "Here have 130000 USD and do this, you can have 25% of the profits" then sure ill go ahead and do that
This whole thing is complex because there are several factors and each has a key role which can make or break the system on several specific days of trading. A system here needs to be universally applicable and make sure that instead of getting out with a loss because a day was extremely spiky or price was acting highly erratic it simply reduces your profit for that day by an acceptable margin relative to the average trading day winnings.
And still in my humble opinion the most important thing when devising a system that is based on entries with flexrenkos instead of focusing on exits your primary concern would be to enter during a signalbar with a good proportion rather than it happening afterwards, thus allowing you to do stuff like trailing because otherwise a reverse signalbar is going to effectively cut your profits by 2/3 some of the time.
Nice results, i see we are getting similar results, with your holding strategy being clearly superior because of the larger gains on the profitable trades. Are you using the 40 tick settings on the 6E future here?