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5-min strategy

 
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tubamirabilis

5-min strategy

One of the strategies I'm working on at the moment, and beginning to see some success with, is what I call a 5-minute strategy. I've ditched getting stressed with the tumultuous noise of the 1-minute chart. I use the 4-hr, 1-hr and 5-min charts, displayed next to each other. I've added Bollinger bands, a 60-period SMA, Apiary pivots, MACD, RSI and ATR.

I wait for a period when the candles show some clear movement and directional market sentiment, (no morning or evening stars thanks,) and wait for a new candle. If MACD, RSI and the latest Apiary pivot suggest market movement in the same direction, even better! I wait for the first 30 seconds of a new 5-minute candle to see which way it is starting to develop. Then I enter a small position in that same direction, so if it's developing as a blue candle I enter a sell position, usually, either 0.01 or 0.05. I don't necessarily expect an immediate jump into profit as the second, third and fourth minute, it may be retracing a little or just wheeling about a bit. But, as soon as it is clearly in profit, and looks to have a good chance of continuing in that direction, I enter another larger position in the same direction. Often, in the final minute, especially in the last 30 seconds, the original direction of the 5-min candle goes further and closes out with a fairly thick candle and giving some profit for both trades. Obviously, it's far from a perfect setup so don't expect it to work every time but I think it works more often than not.

Anyone have any comments on this? Have you tried something similar or do you have any recommendations how I can improve this idea?

Thanks,

John

Tue, 06/12/2018 - 8:30am
 
jhefling

Have you tried the 15 minute chart? That seems to be where the nolise settles down a little for me. Admittedly, I don't yet have an enviable track record
.

 
JayTea

Using multiple time-frames also and looking for alignment (if I understand you correctly), that should come in quite handy. I do similar with D1, H1, M5.

Some questions to ponder for you: how are you placing stops? Equally important where are your take profits? Take a look at your ranges (ATR- you are using it and is handy, or just use cross-hairs as I do) and have a plan for each, don't simply guess. By doing so you will first: gain confidence in your system as you learn to tune to market conditions; and you can book more profit.

And for what it is worth (remember I'm new, not funded, etc. etc. etc.) I lost the indicators, at least the ones that told me things I already knew. Some may become clutter to you in time also, so as they say "your mileage may vary". You may find some really assist you, those would be the ones to keep! Kudos for surviving Silver 2.

Edit: I've not admitted this before here on Apiary but here it is. I use bar charts.

 
tubamirabilis

Thanks for both your comments. jHefting, I haven't tried the 15-min chart. I'm just not patient enough for that! I'm too wrapped up in figuring what the 1M chart is doing inside each 5M chart!

Jay, Thanks, yep, I'm almost at the end of Silver III - missed it by just minutes last week! Just got to improve my stats. Yes, I display ATR and have recently learnt how to use it properly but haven't yet. I've got to learn a lot more patience and to really plan trades rather than to just whack them on because I think something will go in a particular direction!

I've got the indicators I need - I just need to ruddy-well use them lol!

 
kiranpatel42

A simple suggestion.
1. Check the market is trending on say 5 min chart. Check for pull back to go long or short as the case may be.
EMA 50 or your favorite MA to determine the trend.
Oscillator indicator showing overbought/oversold condition.
2. Look for signal to buy/sell when 50 EMA is slopping up/down and oscillator is oversold/overbought.
3. Once you have established direction and trend, then let the trend be your friend.(ride the trend).
These are the three steps and make your own into your strategy.

 
burton

tubamirabilis, a couple questions...

it doesn't read as if you are entering, based on the higher time frames and or indicators, rather, just the initial opening of the m5 candle...is that true?

"but I think it works more often than not" ...to which i must ask...

did you go back in time i find examples of such setup? ...how many examples?

it is not an easy setup to historically evaluate. i would think you would have to study the m1 chart...

- the 0, 5, 10, 15, 20, 25, 30, 35, 40, 45, 50, and 55 candles, to determine the initial move, as it relates to the m5 candle.

then you would want to study, also on the m1 chart...

- the 4, 9, 14, 19, 24, 29, 34, 39, 44, 49, 54, and 49 candles, to determine the ending move of the same m5 candle.

bottom line, as discussed, over and over again...

"IT'S NOT THE SYSTEM, AS MUCH AS IT IS THE TRADER!"

my point is this...

if you don't take the time to study your setup, historically, then, at best, all you are doing is...

"making a guess, a guess that is based on a hunch"

mastery comes with time, repetition, review and adjusting.

ultimately, a trader must learn to...

"marry the process and divorce the outcome"

yet, this cannot happen with having done the work and having a clear understanding of the historical probabilities of a given setup.