Hey everyone this is my first thread!
I would like this thread to be a gathering place for "indicator-free" traders, for sharing of toughts and discoveries, regarding this trading systems.
But still would like to hear from more indicator affictionates traders on their toughts, either why this could work or not, or what we could do to increase our chances!
I really enjoy reading about indicator-free trading and I come to believe that this is the best way to trade.
I have always been trapped into the HOLY GRAIL quest, trying to find the best-non-lagging-coloring-rightious-perfect entry and exits indicator! But I know for so long that this doesnt exist...
So there is no point for me to look at indicators for other than confirmation and ensurance.
I still believe in checking indicators for trend strenght and
divergence signals, but wedges, triangles, lower lows, trendlines, etc...look more obvious to me.
Price action is always there, whatever indicator you use, its lines, its colors, etc, only appear AFTER price settles in the latest bar...
Anyway, im sure you have read about all this somewhere.
SO! I've been looking at this particular setup to start with, and would like to discuss it, as well as hear your toughts and advices on it and this kind of trading.
As I've seen it being refered to, I'll refer to it as Two Line Trading.
Here's what I've come up with:
I look for an
outside bar, followed by an
inside bar.
An outside bar is a bar whose
range is bigger than the following bar, the inside bar (this is more clear in the pictures attached)
Once this happens, I draw two lines!
One in the high and another in ithe low of the outside bar (bar nš 1).
I put limit orders on these levels: Enter short at the lower line and enter long at the upper line.
After this, somewhere in the next bars (after the inside bar that alerts me for this setup) I wait for a bar, the Trigger bar, that fills one of these limits, and cancel the other.
Ive been using this setup mostly for 1440 minute (daily) chart on the ES, which i find to work best in this setup...
I like to exit the trade on the same day of the trigger bar, ie try to exit at the high of the trigger bar ...
Sometimes I think that its better to use a trailing stop, to prevent from cutting a winner short.... but other times i think that the Trigger bar gets the highest profits.
Ive collected a lot on entry signals, registered their maximum profit, maximum
drawdown, and figured this works best with a 5 point stop, and a 7 point target!
I also believe that at 5
points profit... or something like that, you can set your stop to BE.
Since a picture is worth a thousand words, please check the attached pictures..
I hope this some traders and inspires others in usind this kind of setups.
Im kind of worried about the stops and targets ive set... please discuss, i'd like to hear your opinion on this, and the setup overall.
While youre at it, please post your systems as well, we can find the best way to trade without indicators!
For my sake, I do realise that this system (at least on the daily bars), gives out very few setups per month... and i dont know if it can be considered day trading, but its not swing as well..., but i find it very reliable to compensate.
Please share your toughts.
Best regards and happy trading,
Fredy.