The CM5 Trading Robot and System - page 4

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Jellybean wrote >>

Hi forexlady

I understand what you say about MM.

You said that you or your EA considers the trends on three timeframes. Does this mean that you start and stop it manually at certain times or does the EA do that? Would you tell a little more about that, please?

Cheers

Jellybean

No one can trade effectively without fear unless you consider the overall consition of the entire market prospective.

EA makes the decision on when to start and stop a position while examining what the market is doing.

 
Kent wrote >>

Forexlady,

Thanks for replying to some key questions and few good tips, Esp on MM and checking three timeframes. Does the 3 TF you have mentioned has any ratio of of 3:1 or 5:1. For example the TFs can be 15m, 5m, 1m? (3:1 and 5:1), or 4H,1H, 15m? (4:1).

Even if you consult 3 TFs, the criteria for entry or getting out of the trade is based on the lowest tf or any other key factor you employ?

You cannot, at least for me, have a ratio of 5:1 even 3:1 on a small time frame like 1M, 5M. Maybe 15M or highier.

I would say 15M because sometimes a 15M chart can push as much as 50 to 100 pips before starts to show consolidation.

Now if you know the overall market trend, then you are free to apply any kind of ratio you want. 5:1 mean you risk 1 pip to gain 5. That means out of every positive trade you can afford to lose 5.

The key is not to trade in the blinb, but know where the market will be in the next month or so.

No matter what everyone tells you, at the end of the day trend will gain momentum.

Its funny to see how many traders talks about follow the trend, follow the trend, follow the trend. But how many really understand and follow it?

 
forexlady wrote >>

You cannot, at least for me, have a ratio of 5:1 even 3:1 on a small time frame like 1M, 5M. Maybe 15M or highier.

I would say 15M because sometimes a 15M chart can push as much as 50 to 100 pips before starts to show consolidation.

Now if you know the overall market trend, then you are free to apply any kind of ratio you want. 5:1 mean you risk 1 pip to gain 5. That means out of every positive trade you can afford to lose 5.

The key is not to trade in the blinb, but know where the market will be in the next month or so.

No matter what everyone tells you, at the end of the day trend will gain momentum.

Its funny to see how many traders talks about follow the trend, follow the trend, follow the trend. But how many really understand and follow it?

Forexlady,

Thanks. I was not referring to the risk reward ratio. I was trying to see the logic/ratio behind the 3 different timeframes you have mentioned in one of your posts. I am giving the questions again here. And also, when you say Day trend will gain momentum, are you implying that irrespective of the intraday trend (short term), the long term (day trend - longe term based on daily timeframe ) will be the deciding factor of the short term trend? If that is the case, your EA sees the Daily trend as the topmost trend (Major)? And with the specific trades I asked earlier, If you use Daily TF, 100+ pip stop loss is too small for a pair like gbp/jpy.

Now back to my question:)

Does the 3 TF you have mentioned has any ratio of of 3:1 or 5:1. For example the TFs can be 15m, 5m, 1m? (3:1 and 5:1), or 4H,1H, 15m? (4:1).

Even if you consult 3 TFs, the criteria for entry or getting out of the trade is based on the lowest tf or any other key factor you employ?

 

Thanks for your answer to my question, forexlady.

Here's another, if you please.

I also trade manually using trend following techniques that required three timeframes in agreement, but my entry conditions are based on the appearance of the price chart more than the values of indicators. I find it hard to program an EA to detect these visual conditions. Does your EA use technical indicators for the entry conditions or have you managed to program your EA to recognise price patterns? If it uses indicators, will you please tell which ones?

Jellybean

 
Jellybean wrote >>

I also trade manually using trend following techniques that required three timeframes in agreement, but my entry conditions are based on the appearance of the price chart more than the values of . I find it hard to program an EA to detect these visual conditions.

JellyBean,

I am with you on the writing code to check on some visual conditions, which may be difficult to tell the EA. I have qstn for you. If you are checking 3 tfs, but you say entry is based on the price chart?. But price chart on which TF? major/inter/minor? Because if the trend is upwards in major, it may not be the same in inter/or minor tf. How you decide on your entry?

Thanks

 
Kent:

JellyBean,

I am with you on the writing code to check on some visual conditions, which may be difficult to tell the EA. I have qstn for you. If you are checking 3 tfs, but you say entry is based on the price chart?. But price chart on which TF? major/inter/minor? Because if the trend is upwards in major, it may not be the same in inter/or minor tf. How you decide on your entry?

Thanks

Hi Kent

One strategy I use manually is a break-out strategy, but I only enter if the higher timeframe trend is in agreement with the direction of the chart I'm trading. For example, if I see an opportunity to take a long trade at a good resistance on a 15 minute chart, I check for higher highs and higher lows and no divergence in MACD or RSI on both the 15 minute chart and the 1 hr chart.

Another pull-back strategy I use has its entry condition on the fastest chart (e.g. 15 min) and requires higher highs and higher lows (for long) on that timeframe plus two slower timeframes (e.g. 15 min, 1 hr and 4 hr).

However, if I see a set-up on a 1 hr chart, I will check the 4 hr & daily charts.

My difficulty is programming reliable detection of break-out levels and good-looking pullbacks. My code doesn't seem to have the same aesthetic abilities that we humans do :-(

Cheers

Jellybean

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