Hello All,
Thread rules are short and simple; Play Nice or You're Out.
EDIT 4/15/14 Here is a link to myfxbook for anyone interested.
I have been a currency trader for just over 3 years. Like many, I have been to hell and back both emotionally and financially...several times over. It took me almost that amount of time to figure out that I only have one enemy in this lonely business, and get it through your head, it is a business. The enemy is not your broker, not your combination of indicators, not their settings, not your pet, or even your spouse...it's YOU.
Again like so many, I bounced from this system to that system at least 10-15 times. Additionally within those systems, added, deleted, and changed probably 100 different indicators and their parameters looking for that "perfect" combination. I was on a "Quest For The Holy Grail". It had to exist somewhere, how could it not...with hundreds of indicators with dozens of settings...there absolutely had to be a combination of indicators and settings that fit the right to wear the title "Holy Grail"...Right?
Oh there is truly a Holy Grail, and it does contain the right combinations of parameters...it is own personal Psyche.
It is the combination of;
1) Faith--In a proven system, and knowing and accepting that any business sustains losses
2) Patience--In waiting for a particular setup and knowing that any systems setup will not catch 100 out of the 120 ADR of pips
3) Control--Of the frustration and anger, as well as the elation and ego. But most importantly, one of humanities most damaging traits...Greed.
So...what exactly am I bringing to the table. Having lived everything you have read so far, I finally figured out exactly what I personally need, to conduct this business each day.
Once I was able to calmly stand back from this business for while, I came to the conclusion that I need only 2 requirements:
1) A High Probability Entry
2) A High Probability Exit
As one scours the Forex forums, there are many worthwhile systems that do work for the system presenter, obviously, and some of his/her followers. (if you believe everything you read). I can tell you what failed to work for me most often, was number 2 of what I need...A High Probability Exit.
So here is what I have to present.
After a 6 month back test, and 2 months of forward testing, I have a system with a 78% success rate. Sounds great...right? But the majority will still fail without their Psyche in check, and I will show screen shots of trades that trended very well on a particular day, on a particular pair, and my setup only rewarded me with 14 pips. Many will state that this is not enough time to see all market scenarios. I strongly disagree. The market only moves 2 ways..trend or consolidation (ranging)...that's it! Six months provides hundreds of trending and consolidation periods.
OK...let's get to the charts.
As the thread title states, I am using Renko Bricks as opposed to time based bars. This was a huge initial breakthrough for me personally because I could now view charts the way my Program Engineering background processes information...1's and 0's. I use an 8 Pip brick...PA either went up 8 Pips (1's) or went down 8 Pips (0's)...that's it...nothing in between!
I will not spend anytime explaining how to set up Renko charts. Figure it out. There is a wonderful resource called Google that provides everything you need. I will of course provide the EA I use to produce them.
All Indicators are from various forums around the internet. A big THANK-YOU to those with the skills to program some of these custom indicators!
The Nuts and Bolts Overview
Extremely Simple...there are only 2 High Probability Entries and 1 High Probability Exit.
Indicators will be numbered 1 to 5.
Brick Size 8
High Probability Entry 1
Indicators 1, 2, and 2 more of the remaining 3
High Probability Entry 2
Indicators 2 to 5 (all but number 1)
High Probability Exit
2 Bricks (16 pips minus your spread)
Take Profit
2 Bricks
Stop Loss
3 Bricks
Pairs
GBPJPY, GBPAUD, XAUUSD
That's it. You will notice the pairs I use are all high volatility, but you are free to experiment with any pair you wish.
It is my exit rule that has made all the difference for me. Most of you will scoff at the point that my TP is 2 bricks and my SL is 3 bricks...Scoff Away, that's my rule. Everyone is free to make their own rules. I'm simply giving everyone a system that has proven very successful for ME.
My daily goal is 3 successful trades (just a guideline), 48 pips minus spreads. I use a script for entries, which I'll provide, which will set SL, TP, and % Equity for each trade, which I have set to 3%.
There you have it, Entries, Exits, and Money Management.
My next posts will be each of the indicators I use, their settings, and a screen shot.
Below are the latest files.
Should anything be altered during the course of time, this zip file will always represent the latest version.
My eyes are focused on a 3 Brick price reversal as pic describes. With high volume and volatility I will consider entering on the forth, but PA has to be moving quickly. For all intents and purposes, it is a 3 Brick reversal with indicators conforming as stated.
Thread rules are short and simple; Play Nice or You're Out.
EDIT 4/15/14 Here is a link to myfxbook for anyone interested.
I have been a currency trader for just over 3 years. Like many, I have been to hell and back both emotionally and financially...several times over. It took me almost that amount of time to figure out that I only have one enemy in this lonely business, and get it through your head, it is a business. The enemy is not your broker, not your combination of indicators, not their settings, not your pet, or even your spouse...it's YOU.
Again like so many, I bounced from this system to that system at least 10-15 times. Additionally within those systems, added, deleted, and changed probably 100 different indicators and their parameters looking for that "perfect" combination. I was on a "Quest For The Holy Grail". It had to exist somewhere, how could it not...with hundreds of indicators with dozens of settings...there absolutely had to be a combination of indicators and settings that fit the right to wear the title "Holy Grail"...Right?
Oh there is truly a Holy Grail, and it does contain the right combinations of parameters...it is own personal Psyche.
It is the combination of;
1) Faith--In a proven system, and knowing and accepting that any business sustains losses
2) Patience--In waiting for a particular setup and knowing that any systems setup will not catch 100 out of the 120 ADR of pips
3) Control--Of the frustration and anger, as well as the elation and ego. But most importantly, one of humanities most damaging traits...Greed.
So...what exactly am I bringing to the table. Having lived everything you have read so far, I finally figured out exactly what I personally need, to conduct this business each day.
Once I was able to calmly stand back from this business for while, I came to the conclusion that I need only 2 requirements:
1) A High Probability Entry
2) A High Probability Exit
As one scours the Forex forums, there are many worthwhile systems that do work for the system presenter, obviously, and some of his/her followers. (if you believe everything you read). I can tell you what failed to work for me most often, was number 2 of what I need...A High Probability Exit.
So here is what I have to present.
After a 6 month back test, and 2 months of forward testing, I have a system with a 78% success rate. Sounds great...right? But the majority will still fail without their Psyche in check, and I will show screen shots of trades that trended very well on a particular day, on a particular pair, and my setup only rewarded me with 14 pips. Many will state that this is not enough time to see all market scenarios. I strongly disagree. The market only moves 2 ways..trend or consolidation (ranging)...that's it! Six months provides hundreds of trending and consolidation periods.
OK...let's get to the charts.
As the thread title states, I am using Renko Bricks as opposed to time based bars. This was a huge initial breakthrough for me personally because I could now view charts the way my Program Engineering background processes information...1's and 0's. I use an 8 Pip brick...PA either went up 8 Pips (1's) or went down 8 Pips (0's)...that's it...nothing in between!
I will not spend anytime explaining how to set up Renko charts. Figure it out. There is a wonderful resource called Google that provides everything you need. I will of course provide the EA I use to produce them.
All Indicators are from various forums around the internet. A big THANK-YOU to those with the skills to program some of these custom indicators!
The Nuts and Bolts Overview
Extremely Simple...there are only 2 High Probability Entries and 1 High Probability Exit.
Indicators will be numbered 1 to 5.
Brick Size 8
High Probability Entry 1
Indicators 1, 2, and 2 more of the remaining 3
High Probability Entry 2
Indicators 2 to 5 (all but number 1)
High Probability Exit
2 Bricks (16 pips minus your spread)
Take Profit
2 Bricks
Stop Loss
3 Bricks
Pairs
GBPJPY, GBPAUD, XAUUSD
That's it. You will notice the pairs I use are all high volatility, but you are free to experiment with any pair you wish.
It is my exit rule that has made all the difference for me. Most of you will scoff at the point that my TP is 2 bricks and my SL is 3 bricks...Scoff Away, that's my rule. Everyone is free to make their own rules. I'm simply giving everyone a system that has proven very successful for ME.
My daily goal is 3 successful trades (just a guideline), 48 pips minus spreads. I use a script for entries, which I'll provide, which will set SL, TP, and % Equity for each trade, which I have set to 3%.
There you have it, Entries, Exits, and Money Management.
My next posts will be each of the indicators I use, their settings, and a screen shot.
Below are the latest files.
Should anything be altered during the course of time, this zip file will always represent the latest version.
My eyes are focused on a 3 Brick price reversal as pic describes. With high volume and volatility I will consider entering on the forth, but PA has to be moving quickly. For all intents and purposes, it is a 3 Brick reversal with indicators conforming as stated.
Attached File(s)
Renko12MTR_v1.rar
112 KB
|
639 downloads
|
Uploaded Apr 18, 2014 11:08am
Renko12MTR_v1_2.rar
112 KB
|
608 downloads
|
Uploaded Apr 22, 2014 1:59am
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