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Thread: MTF Stochastic trading using 1min chart (Questions)

  1. #11
    Hi, I've been looking at the main thread and it has been interesting.

    I have a query with respect to the pair that is selected, EURJPY. I discovered that EURUSD and EURJPY are tightly correlated through the Euro sessions. From a spread viewpoint, would not trading the EURUSD reduce your trading costs, especially because the spread is large when compared with your profit targets. Including commissions, it costs roughly 1.5pips for EURJPY compared to 0.8 pips to EURUSD.

    Any thoughts?

  2. #12
    Quote Originally Posted by ;
    Hello, I've been looking at the main thread and it has been interesting. I have a question with respect to the pair that is chosen, EURJPY. I noticed that EURUSD and EURJPY are tightly connected during the Euro sessions. From a disperse perspective, wouldn't trading the EURUSD lower your trading expenses, especially since the spread is large compared to your profit targets. Including commissions, it costs approximately 1.5pips for EURJPY compared to 0.8 pips to EURUSD. Any ideas?
    Hi

    Good question

    I will answer my ideas shortly

  3. #13
    Quote Originally Posted by ;
    Hello, I have been considering the main thread and it has been interesting. I have a question with regards to this pair that is selected, EURJPY. I noticed that EURUSD and EURJPY are closely connected through the Euro sessions. From a disperse perspective, would not trading the EURUSD reduce your trading expenses, especially since the spread is large when compared with your profit goals. Including commissions, it costs approximately 1.5pips for EURJPY compared to 0.8 pips to EURUSD. Any thoughts?
    (Composing this here since their is no limitation on post here and I welcome all thoughts regrading that )

    Hello GaryG

    Thanks for the question as I think it's perfectly timed as I have been looking into it myself recently and will do some calculations and rear testing about it on the weekend.

    To begin off with.My broker doesn't have a predetermined spread size as its ECN so my spreads on FX are floating on all pairs in normal surroundings from 0 to 1.2 pips
    (0 - 12points at watch on my own chart). I must pay $7 to a round trip in and out of the market each 100 000 units of currency in whatever the value may be.

    To make it much easier to calculate it works out to about 0.7 pips on x / USD pairs and on EUR / JPY it works out to about 0.9ish pips.

    Here are the charts attached so you can have reference to what I am talking about on EU like you said and EJ and GU that is more commonly employed by me or the men who exchange the system





    The EU and GU trade at $10 dollars a pip per 100k along with the EJ to $8.4 per 100k.

    This means that I make less per pip on EJ compared to EU and GU and pay the same commission to get in and out of this market.On 1 pip (10 points) I lose 1,6 points so each 100pips I make on EJ instead of EU or GU I lose 16pips of currency gained and if you make 100 pips a week then you lose 64pips a month and 768pips a year. Thats about two months worth of pips.Hope which makes feel how I typed it differently let me know and I'll try again.

    Therefore for me personally it not a matter of spread at the moment but pip value which affects my trading that the most currently.

    I use to exchange just EU and GU and after that volatility expired last year I moved to EJ rather than moved back when the ranges changed back to normal bearing in mind
    X / YEN pairs have a tendency to print larger ranges every once in while but we are searching for averages rather than out of the norm days as they exist on most pairs.

    I'm also currently looking into DAX and DOW for disperse reasons and there's absolutely no commission involved but they are CFDs and they lawful duties work otherwise to FX so need to be certain about a lot of things like I enjoy leverage.

    Look at their spread and average ranges and also with this broker I found yesterday that the spreads are mended and just checking it out on DEMO for today




    In my opinion there's absolutely no way to know what pair will exchange the best for the day.All we can consider is the averages and what the PA resembles.

    May Be a little over kill on the issue but you can find lots to consider when we try and build our self the best method to your character and there will always be little things which can make a big difference

    Please note these are my views at present and that I may be wrong on a few of it and happy to confess to it if anybody points out anything besides what I mentioned please feel free to article

  4. #14
    Hello,

    Good points with excellent substantiation. From my point of view, I put a value on spread as it is a big cost of trading particularly at the reduced timeframes. In my experience with an ECN broker, I usually find the spreads of EURUSD (0 to 5 points) much more attractive than EURJPY (8 to 13 points) excluding commissions. Assuming we are aiming for a small goal profit of below 10pips with this particular program, the spread alone represents 5% of profit for EURUSD and 13 percent for EURJPY (carrying the approximate figures again). While you have a look at the pip worth, I think just taking a look at the percentage a spread reduces profit and raises loss to be accurate. Again, I might be incorrect or my logic might be flawed.

    As we all know, no system of trading is perfect and profits are constantly accompanied with losses. I find that reducing the cost of trading particularly when it is such a large proportion of potential profit to be significant.

    On a negative note, would it be possible that you talk about the stats so much for trading this system? By way of instance, the win loss ratio, average win pips and average lost pips. With this information possibly a greater analysis of this spread issue will burst. (together with the premise that EURUSD does indeed proceed in Precisely the Same direction and volatility together with EURJPY)

  5. #15
    Quote Originally Posted by ;
    Hi, excellent points with excellent substantiation. From my perspective, I put an importance on spread as it is a big cost of trading especially at the lower timeframes. From my experience with an ECN broker, I usually find the spreads of EURUSD (0 to 5 points) much more appealing than EURJPY (8 to 13 points) excluding commissions. Assuming we're aiming for a little target profit of under 10pips for this system, the spread alone represents 5 percent of profit for EURUSD and 13 percent for EURJPY (carrying the approximate figures again). As you look at the...
    Sorry but I dont maintain those stats because my system isn't mechanical and very very optional.

    Are you testing this system?

  6. #16
    Quote Originally Posted by ;
    quote Sorry but I dont maintain those stats as my system isn't mechanical and very very optional. Have you been testing this system?
    Hi,

    I have not been testing it as intensively as you've. I did however use it on a 5m chart for approximately a month but found that the outcomes are extremely varied as the system may only work well in strong breakouts. Basically each place shooting using Genesis is a wager on whether the movement will last that can be a fantastic egy if there's momentum. But in periods of nowadays, it is really hard to filter out those undesirable signals (make it 1m or 5m)

    On a related note, typically what is the stoploss utilized for the 1M egy? Can it be that the swing high/low or a fixed pips?

  7. #17
    Quote Originally Posted by ;
    quote Hello, I have not been analyzing it as intensively as you've. I did however use it on a 5m chart for approximately a month but discovered that the results are very diverse as the system can only work well in strong breakouts. Essentially each place shooting using Genesis is a wager on whether the move will last which can be a fantastic egy when there's momentum. But in periods of nowadays, it is really hard to filter those out bad signals (be it 1m or 5m) On a related note, typically what is the stoploss used for the 1M egy? Is it that the swing high/low...
    This is the entry requirements on the first article


    The Entry demands

    1 - Matrix Changes colour along with the bar closes.This is going to function as sign candle (the indior does not repaint )
    two - Price enhances by 1 pip of this Signal candle
    3 - If you use the Stochastic then at least one wants to be in your leadership.

    Now you've got a signal.If you decide to use it is up to you.There isn't a magic answer for when to choose it and when not.Know how price works and viewing that the price action unfold everyday will help you'll make much better decisions the more experience you get with this system.

    IF - You decide to trade Stoploss goes over the swing high or low but its up to you the way you would like to do it.Your trading the system and have to take responsibility for how many pips you risk .

    The patterns repeat themselves day in and day out.Not changing what it is you are looking at the whole time will train your eye.A weak craftsmen blames his tools.

    Exits

    Exits would be definitely the most important thing in gambling because that is where you as a trader determine whether the chance remains present.Exits helps lock in profits and reduce risk by going Stoplosses and many other things.Nothing complied just the basics

    I divide my trade into two equal parts in order to have 2 exits.I might half the second take profit again to the second half of this transaction should I think price will last and I wish to stay in the move and wish to take some profits.

    Other traders divide the size into 3 equal parts from the beginning and then trade accordingly.I cant speak to them send them a PM or ask them.

    My TP1 = 3 or higher or should I choose to make it smaller since PA isn't looking good its up to me personally.
    My TP2 = 6 or higher but that I shall always try and get the very best price for it.This is that the cash maker.I have a little profit in the bank from TP1 therefore let TP2 ride.

    Strada strategy that I will hopefully learn in time is as follows:

    TP 1 = 6 or larger
    TP 2 = 12 or bigger or if there's alteration signal

    Like I said exits are what create a trader a trader and the better you get the more confidence you'll have in your decisions to leave the trade open or close it.


    Open transactions are shut if a signal happens in another direction and you think there's sufficient cause to close or even revers your order.

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