Walter`s Forex "Trend Trades"

[walterw]

Originally Posted by momentom My solution so far is an entry into the 6th colour band of the rainbow on the 1 minute chart - CYAN in my case - as my profitable exit.

This is a first nice example on how we can optimize our exit definition... I think Momentom you are on the right track here, as it will be able to take more decent profits on a move.. cheers Walter.

[walterw]

Originally Posted by momentom Re: Exits Great stuff Walter as I said. May I offer this comment. As an ex floor trader, my big problem since leaving the floor over 15 years ago is staying in a trade long enough even though I am a scalper. Exiting on the re-entry into the rainbow of the 1 minute chart looks like exiting very early. That's OK if there is a quick re-entry but there is often not. Maybe a little more optimisation could help here. I tried using ATR stops at first to help me out but looked to the rainbow for a proper solution wanting to remain faithful to your concept. I then looked at each band according to its colour to try and match the ATR. My solution so far is an entry into the 6th colour band of the rainbow on the 1 minute chart - CYAN in my case - as my profitable exit. I have only eyeballed this and have not done a proper backtesting - needs some decent programing in MultiCharts. What do you think?

Originally Posted by walterw This is a first nice example on how we can optimize our exit definition... I think Momentom you are on the right track here, as it will be able to take more decent profits on a move.. cheers Walter.

Momentom : I did some more research today on this "exits" issues... I know I need to revisit my exit definition because I find to small the "scalper exit" as previously presented and to large the "traders exit".... looking at your input I find it very valuable... still this 6th band will not be much diferent to the "traders exit" wich is quite long... will work very well under momentum conditions but will give a lot of neutral results under low momentum conditions...

Now Looking more charts today and I did 4 nice trades today , even made real time videos but they got too large sized lol.. (will now post pictures of the trades) I came to some more interesting exit definition that could be THE EXIT... instead of having various exit alternatives that starts making definitions to complex and go against our simplicity target...

This new optimized exit definition could be the bars themselfs crossing the thick darkgreen line...

Below I post the exits of my four trades today all winners...









So this could be a more medium term exit that could promediate my previous two exits definitions into one... Should we call it "The Exit"

It would be the cross of the bars to the thick Darkgreen line...

these are the small tweaks I was talking about and NO I will just do it on this same thread... cheers Walter.

PD: Please Remember that this is still an open reasearch process... ALL INPUTS ARE VERY WELCOME...

[walterw]

Here goes a short video about my revisited new "exit definition" I just like it a lot ¡¡ it makes my life much simplier to have one only exit definition... we will call it "The Exit".... cheers Walter.

[walterw]

My four "VMAR Icon" trades today...

I think charts talk more than a thousand words... cheers Walter.

[walterw]

And a short video about them... cheers Walter.

[Armand]

Very nice Walter...clean, simple and more than 5 pips! Thanks for sharing this...Armand

[walterw]

Originally Posted by Armand Very nice Walter...clean, simple and more than 5 pips! Thanks for sharing this...Armand

Yes Armand it has the edge of shooting for some more pips... wich is able to give you a better relation with forex costs... glad you like it ¡¡... cheers Walter.

[momentom]

These exits are quite difficult but very important.

Your small sample size does look good but I'm not confident in THE EXIT until I see at least 100 trades on each of, say, 4 different pairs.

I had a look at THE EXIT on less correlated non FX markets and it did not work well as many markets move sideways on the 1 minute after the break and you would be stopped out just before the real move began. Perhaps looking at non FX is a mistake and perhaps THE EXIT is OK with only FX. The entry methodology is so nice with any market and I, for myself, would like to see a generic exit that also works with any market. I think Guppy had some that may be worth looking at. I will on the weekend.

[ztrader]

igorad has just converted and posted his MT4 version of Fantail VarMA at TSD

Take a look at his snapshot.

ENJOY!

z

[momentom]

Here's a template I did for Ninjatrader Fantail. It uses NT studies that are there and creates the Rainbow. Let me know please if you find any anomalies.