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# Catch Trend

May 31, 2013 06:27 pm
#1

There are countless ways to identify trend and each method has a probability of failure. Not a single method 100% accurate. Infact only a small percentage of traders have high accuracy and most are struggling to get past 50%.

So why struggle to acheive high accuracy in catching trend when u trend will automatically catch ur price.

This method has been tried many times before but I thought to make it a little different by customizing it. I think it is more effective now.

This method can be applied on any timeframe and pair. But you should adjust pips according to timeframe and pair movement.

For Eur/usd and average trade duration of around 1 to 2 days.

Place 3 Buy orders 20, 40 and 60 pip above current price and 3 sell orders 20, 40 and 60 pip below current price.

If buy order is triggered, adjust ur sell orders according to current price. If second buy order is triggered adjust ur sell orders again according to current price.

Opposite if sell order is triggered.

Place ur TP 50 pips away from buy or sell order. Trailing SL with 20 pips difference.

Jun 02, 2013 07:58 am
Champ User

What is the point in repeating buy and sell order? If we keep repeating it, we will always loose one trend because trend cannot go in same direction forever.

Jun 03, 2013 07:00 am
Jogi User

Interesting strategy. There is no technical or fundamental indicator involved. Even price action is not taken into account.

Has anyone tested it for long time? If yes what were the results?

Jun 04, 2013 07:29 pm
ironical User

Read similar strategies but this one is really different.

There should be some point where we stop putting orders.

The good or ill of a man lies within his own will. – Epictetus

Jun 07, 2013 05:10 am
Sasha User

Thx for sharing.

TP is 50 pips which means at least 3 orders will be triggered if price goes in same direction. One the original order then after 20 pips and 3rd after 40 pips. Now if trend reverses before reaching 50 pips then following can occur.

Assume Trend reverses after reaching 45 pips and we were using trailing SL of 20 pips

1st position = +25 pips

2nd position = +5 pips

3rd position = -15 pips

Result of above 3 orders is +15 pip gain. But if price reverses from 25 pips then result would be -10 pips and if trend after 5 pips then result would be -15 pips

At the same time following opposite orders will also be triggered when trend reverses.

1st order will be triggered when price reaches back at 20 pip position and second will be triggered when price reaches at 0 pip position.

These two orders will remain open unless price reaches trailing SL or 50pip TP.

Above is a complex process and doing it all manually is a tough job. Also there is a risk of loss unless price goes in the same direction for specific number of pips before reversing which doesnt happen very often.

The best way to test this strategy would be to make an EA.

Jun 08, 2013 05:27 am
Champ User

Nice analysis. But I think this is not the full picture. Because there can be unlimited scenarios.

I agree that we need an EA to test this strategy.

Jun 11, 2013 03:07 pm
Sasha User

Originally posted by Champ

Nice analysis. But I think this is not the full picture. Because there can be unlimited scenarios.

I agree that we need an EA to test this strategy.

"Full picture" is infinity number of orders. Actually I tried to give best and worst case scenario but I dun think these are best and worst case scenarios rather just better and a bit bad case scenarios.

Jun 12, 2013 04:06 pm
illiterate User

Interesting strategy but difficult to understand. Sasha raised valid point. It has more probability of loss than earn. But in the end it depends on market conditions too.

I wonder if there is a way backtest it?

Jun 13, 2013 06:48 pm
Jogi User

Sasha did great job with numbers. Based on Sasha's analysis, I think this strategy can be good if we keep adding new orders. The only question is how to do it continuously. For this purpose I tried to make an EA by going to EA-maker websites but you can only make an EA there if your strategy is based purely on technical indicators.

So a coder is needed to code this system

Jul 12, 2013 12:14 pm
ironical User

Originally posted by illiterate
Interesting strategy but difficult to understand. Sasha raised valid point. It has more probability of loss than earn. But in the end it depends on market conditions too.  I wonder if there is a way backtest it?

Yes it looks to be a simple system and its EA can be made with some "loop" programming. For a non-programmer, EA maker websites can be a good source. But I think creating it on an EA maker will take a lot of time if u r not familiar with that EA maker.

The good or ill of a man lies within his own will. – Epictetus

Aug 30, 2013 06:49 am

well, I'm a coder - http://surananitin.elance.com!