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Thanks so much for your help, because as a trader of just a few months so far, backtesting info over years from another trader is so useful and obviously impossible for me.
Great video, I use exactly these indicators when trading pullbacks in short trends in M5 and M15 timeframe. ADX indicates weather the trend is strong enough (or perhaps growing in means of getting stronger in the current direction), RSI gives the hint for the momentum. So it's quite good to see when the pulling will return, wehen going down to M5 or even M3. Then I enter the trend long or short), set stop loss quite tight (e.g. 5 pips) and take profit on my liking.
Excellent David, very very simplified explanation, request you to make some videos on intraday trading using supply & demand, price action, combination of useful indicators & candle stick patterns Thanks
Improve your equity curve by ignoring signals further ADX coming down. Only accept signals when ADX is going up. Put a threshold of 50. Valid signal when ADX between 35 and 50, ignore signals when ADX is moving down between 50 and 35
Can you please make a video that goes in depth on how you backtest these strategies, or could you let me know which backtesting software you used because it looks very interesting.
It's a good idea, but sadly it would not be viable as such video would simply not get enough views and the UA-cam algorithm would not push it as a result, and obviously it would not be worth the effort. This is a sad reality of UA-cam unfortunately, which is why I reserve technical content for my premium course (see my website). Software is called Amibroker
Please test this method on forex which is open 24/7--and dailyclose & next day open are the same at 5 PM ,EST-- & may be exit can be 5 EMA of RSI going below 50 from above.Your wisdom & work is greatly appreciated.
Great video and content, I am using the same indicator. It works amazingly. Please also release a video with further research on this. Appreciate your efforts you put in.
aww he got us with the reveal of the rest of the equity curve lol. You are right there are soo many indicators out there, I get Leary of using more than any 2 at a time. So I like that this one is simple and its exposure to the market it so tight. I've never used adx, but I do use RSI with Bollinger bands on Daily time frame, If its
I like the addition of bollinger bands with the RSI. however i noticed on PLTR the ADX can confirm or show false signal of bollinger bands also. very cool to see the bollinger bands and adx get above a certain level to confirm.
i hope you can respond my question , but how do you identify trend markets , i want to create an scanner and need objetive rules to determine if is trending or not
I am finding using ADX tells me about a trend too late. By the time i get a high enough ADX to enter the trade, i have missed a lot of the trend. Can you tell me which algorithm you are using for your ADX number please (a book reference?).
Hi Sir. I have a question: What the difference using the indicator ADX with period of 5 bars, instead of 8 bars? This differing periods of bars in the indicator ADX can interfere with the interpretation when using the RSI2? Sincerely. Bert.
Hi David! thanks for your videos! When you said the strategy is invested 24% of the time that include the margin of 50%, it means that in some point you could be using full margin of 150%? Thanks
When trading with fractals, should trader flip charts, 15M, 1H,4H,D1, all at once & see where support & resistance IS as shown by fractals on each frame--and if if it fits close to top/bottom of daily ADR, take that trade. Now 15M fractal level may not be robust(strength wise) enough--but 1H fractal is because to form 1H fractal, market could not penetrate THAT LEVEL IN 5 CANDLES WHICH IS 5 HOURS--and that is lot of data(strength).AND fractal on 1H chart is not just one man talking but line (support/resistance) drawn by millions of traders in those 5 hours. Just act on 1H fractal--and trade be in the direction of 4H/daily trend. And SIR,your wisdom please. ?
Thanksfor the hard work and for sharing with us! Much appreciated very helpful! Im looking at these on my long term holdings. your work is a next level up and my entry into learning systematic trading. i have developed my own scanners but its a bit different than having a set of things activate a trade. very cool very intelligent thank you for being willing to post this info!
RSI x RSI and yes you can put two on one RSI chart and you should. One short, one long. as trigger combined with SMA rejection, S/R levels and pivots as points for trigger release Exits are based on S/R levels, pivots........or hits of SMAs of playing pullbacks. Keep in mind. Once the market pulls back. It will form a new higher high or lower low. So you are looking for the S/R level which is next on the time frame you are using. Do not flip here. Which ever one is the trigger chart is your control for duration of trade.
A nice example of reversal and confirmation with an exclamation point is gold usd. We had a double bottom form at 1680 then price went up and failed to break the top at 1915...when it crashed back down it got away and managed to run away all the way down to 1630....however... the low point touched is not the formation of a new lower low, but rather the rejection of the lower levels and the candle finishing at a new higher low only more so confirms the new upwards trend and does so on a much higher time frame. If it wants to whipsaw its way up to the tune of 250 pips...go right ahead. Make my day with that super channel. Thank you very very much if it keeps that up.
SPY is the worst example to use for this sort of backtesting. try this with Fx charts... you'll get truer results. SPY always goes up. or at least try different time frames that have more pronounced ups and downs.
That's totally fine, different markets have different specifics, and a strategy that works in one doesn't necessarily work in another. I don't quite understand why so many people are drawn to FX or intraday timeframes.
I also don’t see the problem with using a long only strategy on the spy which is long biased. It’s not a bad example, it is the best example for this strategy!
@@matsgoodyear3068 that i can see a point in. yes.... true. until it stops working at which point you get the biggest drops that break previous tankage records. I just see much easier alternatives out there.
@@CriticalTrading I used to trade stocks for a good 4-5 years. I then tried Fx and never looked back and there is just WAY more volatility to take advantage of. And much more edge in Fx than stocks. none of that "trade only the first hour" nonsense. Fx can be traded at more times of the day than stocks. Everything about the stock market is meticulously designed to make you fail all the way from the caveats of its "trade the open" nonsense to all the various bs fees u gotta pay. In fx there is literally a commission and an overnight swap fee and that's it. In stocks you got a dozen different ways they milk cash out of you. In fx i dont need to worry about gaps when i wake up. If i have a position that's acting a bit odd... i don't need to make a decision by 4pm worrying about possible morning gaps.... market continues. Market structure in Fx is way more predictable than in stocks. The way Fx behaves and the manipulations are way more repetitive and predictable in terms of liquidity hunting. Overall much more edge in Fx and more choice as to what time frame you can trade it. I have traded on daily swings all the way down to 25tick charts for scalps. been trading for 8 years now.
📢 BRAND NEW FREE WEBINAR
Elevate your trading using systematic strategies & get a strategy that made 105% in 2020.
Sign up for free today ➔ bit.ly/3oaqAsl
I recently added this indicator in combination with the stochastics and I've been impressed with my results so far, thanks for this great vid 👍
Thanks so much for your help, because as a trader of just a few months so far, backtesting info over years from another trader is so useful and obviously impossible for me.
Great video, I use exactly these indicators when trading pullbacks in short trends in M5 and M15 timeframe. ADX indicates weather the trend is strong enough (or perhaps growing in means of getting stronger in the current direction), RSI gives the hint for the momentum. So it's quite good to see when the pulling will return, wehen going down to M5 or even M3. Then I enter the trend long or short), set stop loss quite tight (e.g. 5 pips) and take profit on my liking.
what about the settings? RSI2 and ADX5?
I love this kind of videos. Thanks David
Thanks buddy, more on the way!
ATR please, this will be a great addition to these series
Excellent David, very very simplified explanation, request you to make some videos on intraday trading using supply & demand, price action, combination of useful indicators & candle stick patterns Thanks
Improve your equity curve by ignoring signals further ADX coming down. Only accept signals when ADX is going up. Put a threshold of 50. Valid signal when ADX between 35 and 50, ignore signals when ADX is moving down between 50 and 35
great job david! will add this to my trading toolbox and study it! Thank you for this
Glad you found it helpful!
Great inspiration! Please continue the series. Thanks!
Can you please make a video that goes in depth on how you backtest these strategies, or could you let me know which backtesting software you used because it looks very interesting.
It's a good idea, but sadly it would not be viable as such video would simply not get enough views and the UA-cam algorithm would not push it as a result, and obviously it would not be worth the effort. This is a sad reality of UA-cam unfortunately, which is why I reserve technical content for my premium course (see my website). Software is called Amibroker
Please test this method on forex which is open 24/7--and dailyclose & next day open are the same at 5 PM ,EST-- & may be exit can be 5 EMA of RSI going below 50 from above.Your wisdom & work is greatly appreciated.
a video covering the key elements of a good strategy would be nice
Thanks for feedback, will add that to my list
Yes I’d like to see this, or your top 5 indicators to make a good trade!
Amazing video,.please do one for the critical indicators ( if.u use more) under a lower timeframe and what kind of strategies to apply . Thnx so much
Great video and content, I am using the same indicator. It works amazingly. Please also release a video with further research on this. Appreciate your efforts you put in.
GENINE SICK VIDEO
What happens if you're in a trade and the ADX dips below filter line 35 and the market continues to go higher? example at 7:52 in video.
Excelente Video. Thanks for your explanation and time.
Glad you appreciate it, stay tuned for more
David, I salute you! Thanks 🙏🏽
aww he got us with the reveal of the rest of the equity curve lol.
You are right there are soo many indicators out there, I get Leary of using more than any 2 at a time. So I like that this one is simple and its exposure to the market it so tight.
I've never used adx, but I do use RSI with Bollinger bands on Daily time frame, If its
Hey Jeramy - haha yes that equity indeed looked promising at first! I'll add the ones you mentioned to my list, interested to see if they're any good
I like the addition of bollinger bands with the RSI.
however i noticed on PLTR
the ADX can confirm or show false signal of bollinger bands also.
very cool to see the bollinger bands and adx get above a certain level to confirm.
How do you make statistics table? I‘m very impressed how it’s organized.
Does this work well with ichimoku
Hi Sir. Thanks for sharing with us.
Is the ADX superior to the 200day MA when using the RSI 2?
I am trying to find best filters for canceling out range adx seems promising?
i hope you can respond my question , but how do you identify trend markets , i want to create an scanner and need objetive rules to determine if is trending or not
Hi, you can use something like recent breakout of N-day high
@@CriticalTrading would a stock being above a moving average of choice also indicate a trend-a-thon?
Is this applicable on mobile, and what's the setting please.. I can find ADMi on phone and three colors
hey man, nice content...what was your exit strategy?
I am finding using ADX tells me about a trend too late. By the time i get a high enough ADX to enter the trade, i have missed a lot of the trend. Can you tell me which algorithm you are using for your ADX number please (a book reference?).
Hi Sir.
I have a question: What the difference using the indicator ADX with period of 5 bars, instead of 8 bars? This differing periods of bars in the indicator ADX can interfere with the interpretation when using the RSI2?
Sincerely. Bert.
Great tnx David, you are perfect
Does it work on cryptos?
Hi, for the requirement for ADX, is it simply just ADX above 35, or ADX crossed above 35? Your thoughts pls?
Great viz. what u use for backtest?
Amibroker
Hi David! thanks for your videos! When you said the strategy is invested 24% of the time that include the margin of 50%, it means that in some point you could be using full margin of 150%? Thanks
Good vid. I have a question what time frame does it work better? 1 day, 2 hours etc.
Thanks, I would always favour daily timeframes as they contain less noise
Thank you ❤❤❤
where's your stoploss? or you just hold negative?
When trading with fractals, should trader flip charts, 15M, 1H,4H,D1, all at once & see where support & resistance IS as shown by fractals on each frame--and if if it fits close to top/bottom of daily ADR, take that trade. Now 15M fractal level may not be robust(strength wise) enough--but 1H fractal is because to form 1H fractal, market could not penetrate THAT LEVEL IN 5 CANDLES WHICH IS 5 HOURS--and that is lot of data(strength).AND fractal on 1H chart is not just one man talking but line (support/resistance) drawn by millions of traders in those 5 hours. Just act on 1H fractal--and trade be in the direction of 4H/daily trend. And SIR,your wisdom please. ?
What do you have your ADX Exponential smoothing set to for ADX?
excellent
Try DeMarker indicator ? Similar to RSI
Thanksfor the hard work and for sharing with us!
Much appreciated very helpful!
Im looking at these on my long term holdings.
your work is a next level up and my entry into learning systematic trading.
i have developed my own scanners but its a bit different than having a set of things activate a trade.
very cool
very intelligent
thank you for being willing to post this info!
Why to combine a volatility indicator with a volatility indicator.
Rsi or adx being volatility indicators is news to me
Sir,
Please make video on Options selling, premium DK.., hedging stratigy
These are all entries but where is your EXIT? You might got stopped out before it went to your bias.
RSI x RSI and yes you can put two on one RSI chart and you should. One short, one long. as trigger combined with
SMA rejection, S/R levels and pivots as points for trigger release
Exits are based on S/R levels, pivots........or hits of SMAs of playing pullbacks.
Keep in mind. Once the market pulls back. It will form a new higher high or lower low. So you are looking for the S/R level which is next on the time frame you are using. Do not flip here. Which ever one is the trigger chart is your control for duration of trade.
A nice example of reversal and confirmation with an exclamation point is gold usd. We had a double bottom form at 1680 then price went up and failed to break the top at 1915...when it crashed back down it got away and managed to run away all the way down to 1630....however... the low point touched is not the formation of a new lower low, but rather the rejection of the lower levels and the candle finishing at a new higher low only more so confirms the new upwards trend and does so on a much higher time frame. If it wants to whipsaw its way up to the tune of 250 pips...go right ahead. Make my day with that super channel. Thank you very very much if it keeps that up.
SPY is the worst example to use for this sort of backtesting. try this with Fx charts... you'll get truer results. SPY always goes up. or at least try different time frames that have more pronounced ups and downs.
That's totally fine, different markets have different specifics, and a strategy that works in one doesn't necessarily work in another. I don't quite understand why so many people are drawn to FX or intraday timeframes.
I also don’t see the problem with using a long only strategy on the spy which is long biased. It’s not a bad example, it is the best example for this strategy!
@@matsgoodyear3068 that i can see a point in. yes.... true. until it stops working at which point you get the biggest drops that break previous tankage records. I just see much easier alternatives out there.
@@CriticalTrading I used to trade stocks for a good 4-5 years. I then tried Fx and never looked back and there is just WAY more volatility to take advantage of. And much more edge in Fx than stocks. none of that "trade only the first hour" nonsense. Fx can be traded at more times of the day than stocks. Everything about the stock market is meticulously designed to make you fail all the way from the caveats of its "trade the open" nonsense to all the various bs fees u gotta pay. In fx there is literally a commission and an overnight swap fee and that's it. In stocks you got a dozen different ways they milk cash out of you. In fx i dont need to worry about gaps when i wake up. If i have a position that's acting a bit odd... i don't need to make a decision by 4pm worrying about possible morning gaps.... market continues. Market structure in Fx is way more predictable than in stocks. The way Fx behaves and the manipulations are way more repetitive and predictable in terms of liquidity hunting. Overall much more edge in Fx and more choice as to what time frame you can trade it. I have traded on daily swings all the way down to 25tick charts for scalps. been trading for 8 years now.
@@OldSkoolLegend have you tried trading crypto?
Annual return 8%? Just put money in a bank. And this is a financial advice.
You need to dig dipper if you want to be in that business! so, don't be lazy