I was wondering what CatFX50 Level signals were they that you made your trades with ? Just learning the system at the moment.
Master it, forexplayer. It will take some time.
Any one confirm my CATFX50 study please
Today is a good day to study the level 4 entry
This is the picture of level 4 entry
Level 4 Rules:
Level 4 is when price, after a consolidation of a few bars, breaks through the last high or low. The main thing we need is an indication of strength, and if we don't get it, it could be a trap!
Obviously, the breakout down should have Hist_StepMa_Stoch in red and green for the opposite.
Something to take into account:
Pairs to trade: EURUSD, USDCHF and GBPUSD.
When bar opens more than 20 pips above/below EMA 50, the signal is riskier.
Level 4 Short Entry:
1. Hist confirm (yes)
2. Nina confirm (yes)
3. Bar Opens ≥ 20 pips below EMA50 (?)
4. Strength Indications (?)
5. Short Breakouts (?)
I have questions about number 3, 4 and 5,
3. Bar Opens ≥ 20 pips below EMA50,
from picture above, the candle open price is 8 pips below the EMA50, and the candle close price is 29 pips below the EMA50, so which will be determined as open ("When bar opens more than 20 pips above/below EMA 50") the Open price or the Close price?
4. Strength Indications,
How to look the current strength? is there indicator for it?
5. Short Breakouts
1.2529 for breakouts how to determine this, is it the yesterday low? or its the support1 ?(support1 from FIBOPIV_v2)
Many Thanks to Ya All,
PS: maybe,ill be back in 2 days from now.
Looking at your CatFX50 word document which goes over this system, I see where it says to add in the filters of "Set filters on Step: +0,04 and -0,04"
Where do you do this in the indicator?
Please see the attached image.
Signal is riskier, still according to system, beside that I use Stepchoppy as indicator as well, and sometimes all 3 indicators met with 1 bar delay after break of ema, so sometimes i open close of the bar which was 1,2539 for 15:00cet. I did backtest system for last 8 monthes this way (opening even if price is higher then 20 pips and even if i open on second bar after break if all 3 indicators met (stepma_hist, nina and stepchoppy). It did save alot of times from false breaks.
But it was backtest, im testing it live (on demo account for now obviously) only for 2 weeks.
So any your comments are welcome and highly needed,
Thank you, Nina.
The question regards level 4 was very actual, do we take low from previous us session or morning's european session (Hans indicator) ? And do we buy/sell on level 4 break after stepma hist shows strong signal only after the close of that bar right ? so actually we didnt have level 4 signal today on break lower ? the price broke low first (setting new low) but 30m bar wasnt closed, and only after bar closed, we can look at stepma, it showed red and yes we broke previous low (but only by few pips ). I'm also unsure regards how we exit from level 4 position? when red/green stepma dies (does below 0.04 or above -0.04) ?
Can you tell me where EMA50 was when you had the signal? How many pips where there between the entry and EMA50?
Ok, thanks for telling me to go master the system. I was able to identify that your EUR trade was a Level 4 signal. But i still dont know the reason behind the GBP trade. You say u took that trade based on strength , how is that measured ? RSI? Or does one of our existing indicators show something that can determine strength of the move.
I did not sell EURUSD because at 14:30 bar was not possible and at 15:00 bar was more than 20 pips away from EMA50. I was ready to short it though if it would have broken 1.2529 (level 4 sell).
I bought it at 1.2605, last high and I closed it at 1.2630.
I bought cable at 1.8396 when I saw bar of hist was green and with strength.
I closed it at 1.8468.
I did not do the same with EURUSD cause it was more fastened to USDCHF and I had already taken a long on cable in a very dangerous environment.
Why did not do the same on eurusd and GBPUSD on its way down when we all see how red bar was getting longer?
Well, I sold them, but as what I did it has anything to do with catFX50, I do not want to post it.
I agree that the euro short signal was not strong, but what about the gbp short, that was as good signal as any, 22 pips from ema50, closed just below pivot point, good momentum, I think it is a valid short signal, even though it s 22 pips, only 2 pips above filter.
Now, there is an absolute clear long @ 1.2610 (i like to add the spread when talking of longs), you got 35 pips there.
Another clear long is gbp @ 1.8460, a level 4 too, prev high of the day and a heavy resistance from past days, also got 30+pips (you even had a retest there and a bounce for another 30).
Now both shorts after the news were ok to trade in my opinion, since they were coincident with the expected outcome of the news, without doing too much analysis, you could have waited for a break of 1.2525 on euro to confirm the dolar rally. I personally took the gbp short, not the euro.
Bottom line is, although it might have gave loosing signals, that s part of the game, prev to that you had 2 other level 1 longs with great results, so I just would recommend to stick to it, trade the signals with it s filters, take partial profits if you want to ride it longer, and enjoy the profits, with a +80% of positive outcome, you should not be worried about a couple of loosers, it is part of the game, and remember that a looser is just a possible big winner, only after the fact we know it s a looser.
Well said, guibermc.
I'm not worried at all with those losses, i have backtested system and read all rules docs and big part of this thread.
I'm just trying to find optimal filters to have profit/loss ratio higher.
Maybe Stepchoppy filter is useless and only add lag, i cant backtest this cause sometimes when there is big move, it redraw previous bar as well (not just last).
Therefore i would like to hear Owner's opinion/comment and in general recommendation for me. No one knows and feels this system better then you, Nina. It would be very useful and kindful if you can share your experience with me and address question that i pointed in previous post regards level 4 low/high and in general more correct information regards +20 pips opening from EMA50, if in long term its profitable to trade with this filter (or we are missing more good raither then false signals). To use StepChoppy indicator or its kinda useless due to lag it has and redrawing of last 2 bars? Or just to stick with nina+StepMa Histogram?