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Thread: HYBRID: trading system within a trading system

  1. #1
    No guy can ch all of the fluctuations....Jesse Livermore....

    FRACTALS/HYBRID:trading system in a trading system

    Generally, high win rate(high win:loss) tends to include reduced risk/reward; or vice versa: the greater the risk/reward the reduced the win rate.

    A trading system which unite win/loss of about 60% along with a regular 8R into 20R(r/r of 1:8 or 1:20) are extremely rare, if they even exist in any way. That's my small observation relating to trading.

    AXIOM: Any machine using a tall R/R ratio should use a greater timeframe for setups and reduced time frames for entry. The larger the differential, the better.

    Now, how does one take care of this bad win:loss ratio which plagues such a system.

    You will find other solutions, of course. However, would be to combine/hybridized a system on a lower time using a trend trading system of time frame. In other words, enter the entry point of your scalp(1mins into 15mins), but use the PT of this trending trading system(H4 to weekly). In case the system features the tendency system, 60% and above; and a decent win/loss of state has a decent win/loss of state 60% and above. We are in business. Of course, there is going to be a dose of breakevens, this really is the character of the monster. It is essentially a trading system in a trading system. A hybrid vehicle. This is ideal for high risk/reward, of say, 8R or 20R using a win rate of 60%. It's risking around 4pips to 15 pips to make 100pips to 243 pips or higher.

    Trend trading breakouts for my high time frame egy has this structure.


    The greater time frame methodologies are: swinging/wave movements and polygonal breakouts on the daily frame using lower 1/8th or 1/4th b-p-c. (BREAKOUT - PULLBACK - CONTINUATION). I am sure that there are others, but these are the ones that I personally know to result in 60% gain rate or greater.

    For Your scalping method: One trading method which I found to have at least 60% success rate at 1min to 15mins time frame are ascending or descending triangle breakout, which ran, pullback, and then continue in the direction of the breakout. With entrance in the reversal candle in the bottom of the pullback.
    From my private study, I notice this method works in all time frames. Lets called this by acronym: TBPC

    As such, the combination of both:using the greater time frame trend trading to place the PT and the lower timeframe TBPC to place the entry yields a top win:loss with a 10 to 20 r:r.

    This is the frame. There's not anything groundbreaking here. It's simply a combination of two practices. I will begin posting live pops


    All these systems are simply little variations of the same thing.

    (1)find a strong, simple system on a greater timeframe that has a good win/loss of 60% or greater; using a 1:1 to 1:3 r/r

    (2) find a simple, robust system onto a LOWER TIME FRAME with a good win/loss plus an adequate r/r of state 1:1 to 1:3.

    (3) merge the two together. When using the TP of the time frame for exit, use as your entry the time frame methodology. Sometimes, it is the system in the 4hr or daily timeframe that is currently replied on time frame that is 1mins or a 5mins, inside itself. That is the way I understand to obtain an adequate win/loss ratio using a decent R/R of state, 1: 8 to 1:20(especially, if the installation is monthly or weekly, and the entry is 1 or 2 5mins.) . Of course, breakevens increases. And win/loss drops because of 1mins' sound. . .that is the reason why I look far away from news.

    (4)Use only price action. Trade with the trend. Avoid news.

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    ADDENDUM: helpful threads that I adapted from:
    Assembling an equity millipede
    Trend Trading All Pairs
    Central Banks Big Players
    Trading with Deadly Truth
    DanUK's Advanced Trend Trading Strategy
    My method of trading by Employing trend line , BL line febo level

  2. #2
    Don't hesitate to post it, if anybody has a fantastic idea for a system that ches R : R using higher WIN: LOSS or a system. (but be forewarned, it will be rigorously analyzed). Because r/r that is high and higher win/loss are very rare.

    Clearly, I dont use indiors. Others do, and it works for them. It is not my style. I use pure price action and readings of fundamentals.


    JUST ADDED: I almost forgot. The change candle creation I look for on the 5mins is the inverted hammer/hammer.

  3. #3
    Quote Originally Posted by ;
    Sounds interesting, what pairs are you currently trading and do you have some charts with setups?
    I will start posting actual installations beginning from tomorrow.

  4. #4

  5. #5

  6. #6
    -- 3 to 5 times fad in 1 direction

    -- followed by consolidation(30mins into 4hr. Preferably a 4hr consolidation)

    -- breakout at the direction of this trend. Search on 1min time frame for BPC. Utilize as SL = 10 pips disperse. TP = 90% of average daily range.

    That is a combination of hectors LOB(THE VIDEOS under) Hector's LOB utilizes 15mins bpc. WHILE TONY USES minutes. I OPT for 1min. Hectors time frame is 3am to 4am us EST time. That's my time frame.
    UPSIDES:that provides a r/r of 1:5 into 1:9; Downside? lots of breakevens. I B/E the trade at 1:1.

    MORE ON hector's LOB:

  7. #7
    Quote Originally Posted by ;
    cad/chf r/r 1:8. No entrances.
    cad/jpy r/r 1:12.7. No entries either.

    The procedure is also a modified hector trades. Waiting following a 1,2,3 formation to get a bpc on the trendline.

    Through the creation of the bpc, go to 1min time frame, and loe yet again loe a 1,2,3 formation around the 1min. Draw another trendline and look off that internal trendline that is 1min. Then enter at the completion of the bpc. Employing the peak of both spread (from the 1,2,3 of 1min) as SL.

    This gives the huge r/r while exploiting the high win ratio of hector's trend trading 3sma.

  8. #8

    Whenever there's a h1 or h4 bpc from daily or weekly octogonal trendlines. With the breakout being just 2 candles before a pullback, and also the continuation candles not 3 candles. I discovered that the price goal of measured movement projection of the BPC tends to be attained. The win/ratio is%. The downside? The r/r is simply 1:1. The occurrence of those breakouts only occurs roughly twice a week.

  9. #9
    Quote Originally Posted by ;

    Whenever there's a h1 or h4 bpc from daily or weekly octogonal trendlines. With the breakout being just 2 candles before also the continuation, along with a pullback candles not candles. I discovered that the price target of quantified move projection of the BPC tends to be attained. The win/ratio is very large:75%. The drawback? The r/r is only 1:1. The occurrence of those breakouts only happens roughly twice a week.

    The question is, how can I potential exploit this large win ratio that has a fantastic r/r? That is why I decided to delve into the BPC itself using a time frame that is 1min input after a 1,2,3 conclusion followed by a bpc.

    The breakdown:

    --LOOK for POLYgonal breakouts on the daily or even weekly. (with two factors touching the trendline). On rare occasions use h4(with three factors touching the trendlines.

    -- look for bpc on h4 or h1.

    --Move to 5mins time frame over the bpc has it's touching the trendline where the breakout happens. Start looking for 1,2,3 formation.

    --draw inner trendline on the 1,2,3 formation.

    --await a bpc of their inner trendline on the 1min. Enter at conclusion of bpc.

    --Use the summit of the 2 spread on the 1,2,3 as SL.

    --B/E the transaction when price goes straight back to the starting point of their inner trendline.

    -TP #1 . Exit at quantified move projection of the h4 or h1 bpc.

    --TP # 2. Move ride the fashion, and SL to the mouth of the H1 OR H4 bpc if trend-friendly.

    --that the Breakout candles can't be over two candles.

    ADDENDUM: GENERALLy, the r/r between the entry at 1min and also the mouth of this 1hr or 4hr bpc can be between 1:3 to 1:5. Subsequently added the projection of 1hr or 4hr bpc. . .that makes it a total of 1:6 to 1:10. That in my experience has 75% chance of hitting that forwards projected bpc.

    UPSIDE: PT target has a 75% probability of hitting ; r/r between 1:6 and 1:10.

    Disadvantage: pattern appears to occur just TWICE a week, with failures at least two times a month. Since using 1mins. . .breakeven has increased. Entry losses has increased. . .1min entry win/rate as dropped below 75%. (because sometimes, there is a bp....and no c....I give up on call whether it drops under 61% FIB(with 50% at the breakout trendline)

  10. #10
    In a nutshell these systems are little variations of the identical thing.

    (1)loe a robust, simple method on a higher time frame that has a fantastic win/loss of 60 percent or higher; with a 1:1 to 1:3 r/r

    (2) loe a simple, robust method onto a LOWER TIME FRAME with a fantastic win/loss plus a decend r/r of say 1:1 to 1:3.

    (3) merge the two together. While inputting on time frame that is lower utilize the TP of the higher time frame for exit. It is the system in the 4hr or daily timeframe that is currently duplied on a 5mins or even 1mins time frame, within itself. That is the way I understand to obtain a decent win/loss ratio with a respectable R/R of say, 1: 8 to 1:20(particularly, if the installation is monthly or weekly, and the entry is 1 or 2 5mins.) . Of course, breakevens increases. And win/loss drops because of 1mins' noise. . .that is I look far from red-labeled news.

    (4)Use purely price action. Trade with the trend. Keep away from news.

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