The rules are simple:
for D1 or H4 timeframe - it is simple Ichimoku indicator's rules. And dots (enter) and arrows (re-enter: enter one more time) are used just for confirmation of the trend only (same as histogram for example).
For trading on timeframe lower then H4 - those dots and arrows can be used to open the trades.
I am using this system almost every day to check the market condition in the morning.
More comfortable for me to trade is D1 timeframe. Because in case of D1 - I do not need to look at Metatrader's charts all the time. In case of H4 - it may be more difficult: I traded H4 timeframe long time ago (channel trading system) and stopped only because it is difficult to be near PC without sleeping for many days ...
D1 timeframe - it is much more easy: just check the charts in the morning for possible enter once or 2 times in a day.
In the next few posts I will explain about Ichimoku indicator's signals, about AbsoluteStrength indicator and how to use it, which pair to trade and how many trades per Metatrader need to be open, how to select lot size based on initial deposit size.
Stop loss and take profit.
Do not trade without stop loss. Especially if trading D1 or H4 timeframe. Stop loss value is the price of nearest dot or arrow (in most of the cases), or nearest support/resistance line (most often - borer of the cloud).
I am using price of dot/arrow for stop loss.
Stop loss is not small by value for D1/H4 timeframe as we can see from the charts so we should have initial deposit enough to trade those timeframes.
Stop loss is moved by trailing stop. In my trades in the beginning of this thread I used trailing stop as 30 - 50 pips (4 digit pips). But in reality - it should be not less then 50. Stop loss should not be moved by trailing stop in aggressive way, especially on D1 timeframe. Let the profit run.
So, the trade may be closed by stop loss (moved by trailing stop). Or we can close the trade if price will touch/cross some support/resistance line (usually - border of the cloud) if we do not want to trade inside the cloud in ranging unpredictable market condition.
i am useing the rules are the same ones that newdigital ( thanks to you Boss ) posted.
At the Best you are deffinetly doing well with this system Congrats i have a few questions (if they are answered in the rules then ignore me as i havent read them yet i just finished reading this whole section.) why did you go from 2 lots to 1 lot and then all of a sudden from a couple of pairs to just one pair? are you trading the daily or 4h timeframe?
Hi NewDigital, ATB...
Thanks for your inputs...
NewDigital - after many years of trading I agree with you that D1 is more managable to live a normal life and not be glued to the screen, I will take another look at the template with the rules you've given above. Any additional explanation for ichimoku as you mentioned would be great! Best, Lee
My current understanding of ichinmoku
Hi NewDigital - do you use ichimoku in the same way as I understand it? eg:
Buy Rules - Strongest Entry
1-price above the cloud
2-Tenken crosses kijun in the direction of the trend
3-Chikou Span is above the price curve
Sell Rules- Strongest Entry
1-price is below the cloud
2-tenken crosses Kijun in the direction of the trend
3-Chinkou Span is below the price curve
Chinkou Span shows support/resistance in an elegant way
This is a perfect setup and I guess other variations such as price not above cloud for long when kijun/tenkan cross could be considered?
Hi At the best - what timeframe are you trading as to my understanding if you are trading the daily your buy of 2 USDJPY lots in the last statement '50000' doesn't agree with my understanding of ichimoku setup for long on USDJPY (see last post for definition) thanks for your contributions !
answering your Q
will for the 1 lot ORDERS i was trying the 5M TF
that is why i stuck with one pair
BUT the best TF is DAILY
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