MTP needs a trend filter

[dctommy]

Steve:

I am a new MTP owner under trial period. Last nite I paper traded
forex using short timeframes (3-15 min). I used another software
program made for 4x to check the overall trend (1 min to 90 min)

MTP was almost always fighting the overall trend. This resulted in the
setups moving around....i.e....it would trigger an alert and then the
software would erase the alert and re-issue another alert on the next
bars. Needless to say, it was not very successful.

I have a suggestion: place a trend filter in MTP that would allow the
user to set it in advance: example: if trading on 5 min timeframe, only
issue alert if overall 1 hour trend is up....if trading 4 hour, only if
daily trend is up,...etc. or: vice versa: if trading 1 hour only issue alert
if 15 min trend is up (ie the direction of the alert is supported).

Think it thru: this is not a difficult programming task and would be a
a good addition to the product.

[Steve Griffiths]

Hi,

As we have all said a number of times, we do not recommend trying to trade FOREX on 5mins charts, Forex is just too volatile for this short time frame.

All our professional Forex traders use longer time frames - for example 60 and 240 minutes. As such, this is what we recommend.

I hope this helps ?

Steve

[dctommy]

Steve:

Thanks for geting back to me. Forex is way too volatile for
timeframes under 1 hour.


Tom

[Gene]

Hi,


If you trade FOREX, less than 15 minutes time frames are not good - too much noise.
Try using 4 and 8 hours (with 5 minutes just to adjust the entrance points). It is always good to trade in the direction of the daily trend.

Many pro FOREX traders are using also pivot points and 6 EMA of Open with 5 EMA of Close. This EMA combination was created initially by pro futures traders for SHORT TERM trend analysis in any time frame.

It is always good to see what is working better for you. Beware of not trading near major anouncements. It can be very profitable, but is very risky for new traders.
Have a good trading and HAPPY HOLIDAY SEASON all of you.
Gene

[dctommy]

Gene:

Just a couple of questions: If the big boys are trading pivots (very
common) and 4 hour charts, then is it reasonable to expect that this
will no longer be effective?

Do you think that MTP wave projections will provide different targets
and hence some sort of an edge?

Do you have thoughts on how MTP and the pro forex pivots/tools
can be used together. I understand that Forex is a zero sum game...
for each winner there is a loser. So how do we work with the big money?


Thanks,

Tom

[Steve Griffiths]

Hi Tom,

I have been using these same techniques for nearly 20 years now and they are still as effective now. I have also applied them to historical charts going back as far as I could, and guess what - the MTP techniques still worked.

So I would have to say - don't worry about a technique stopping working, just trade and keep yuor losses small and profits large - that is what makes the money for you and is the real "Edge" you should strive for.

Steve

[Gene]

Hi Tom,

In any market, not only in FOREX, must combine tools developed on different ideas, not only one (like only oscilators or only Elliot).
The tools I mentioned will help to increase your chances of success over using only MTP.

As Steve said, don't warry the tools will not work. They will - if you learn how to use them well. And again, Money Management is vital.


As a similarity, having more and more drivers will not make driving rules uneficient. The increase just will kill more drivers not respecting the rules - you can read traders.
Gene

[dctommy]

Gene:

Thanks, that is an interesting and original analogy!


Tom :rolleyes: