Does Your Strategy Work Across All Time Frame Charts & All Markets?
#489: Does Your Strategy Work Across All Time Frame Charts & All Markets?
In this video:
00:24 – Don’t use a strategy that only works on one time frame chart
00:57 – Things that experience bring
01:33 – The strategy that I developed 17 years ago and still use today
02:58 – Candle Patterns and Price
03:10 – Real life examples from this year
03:50 – H2 EUR/USD makes a 4:1 Reward:Risk
05:13 – The power of a trading community
Your trading strategy, if it’s a good strategy, should work across all timeframe charts and all markets. Let me explain more. Right now
Hey there, traders. It’s Andrew MItchem here, the Forex trading coach for video on podcast number 489.
Don’t use a strategy that only works on one time frame chart
Now, one of the things that fascinated me when I started trading almost 20 years ago was I would buy systems or view systems online or buy books, and people would say, Hey, this system’s really good. It’s fantastic, guaranteed to work, which of course it’s not.
But you know, it’s getting to work and you should only apply it on the pound US dollar or you should only apply it on 15 minute timeframe charts or five minute time frame charts. And I can never really understand why that was. But when you knew you kind of take on board what people say and they develop the systems, you kind of go with it.
Things that experience bring
It’s not until you develop some time, strategies, knowledge, experience, and I have your ups and downs that you go through. Do you actually realize that that’s not a good way of trading? But she soon find out that over optimizing and curve fitting, although it may look good in hindsight and you can make results, historical results look absolutely incredible.
You soon get to find out and realize that the reality is that that kind of over optimizing and curve fitting does never work in the real market going forward or doesn’t work consistently well.
The strategy that I developed 17 years ago and still use today
And so when I developed my own strategy, which we’re now talking about sort of 17 plus years ago, by the time I’ve been through the ups and downs of following other people and I wanted something that was real, that was going to work across all timeframe, charts, all currency pairs and all trading conditions, because you never know when you’re going to be in trending markets or rangebound markets.
You just don’t know in advance, of course. And now what we developed as we go into more and more markets available to us, we have more markets available to us, especially on MT5, is of course we can now trade into the crypto markets, the commodities, indices, metals and so the fantastic thing that I love about my strategy is not only does it work across all different timeframe charts and by the way, if you’re on MT5, you know how easy it is now to put on like six hour charts or two hour, six hour, eight hour, 12 hour charts, which of course in MT4 days we didn’t really have so much availability to those charts.
So not only does the strategy today were equally as well across all timeframe charts, we have a lot more forex pairs in play. You know, we’ve got some like Euro/Mexican and we’ve got, you know, US/Singapore and we’ve got Thai and we’ve got and you know, pesos where all these markets that a few years ago we didn’t have access to. Plus of course to go to all those other non markets.
Candle Patterns and Price
And the beauty of using price action by using candle patterns and candle shapes and where they appear within the charts is that can be applied across all timeframes, all markets. And that’s why the strategy does so well.
Real life examples from this year
Now let’s put that into a real example for you. Just last week I was saying how our daily chart trades had produced a 7.5% gain in the eight days for January that we’d been trading when I made last week’s video.
And we ended up having and great end into January and we’ve started off quite nicely in February as well. However, I have noticed this week that the majority of our trades have come from shorter timeframe charts, just the way that the market is, the conditions out there. We’ve had a few daily charts and we’ve taken two on the monthly on the February monthlies as well.
But the majority of our trades this week have been shorter timeframe charts. Now I want to give you a couple examples.
H2 EUR/USD makes a 4:1 Reward:Risk
Just yesterday I saw on our forum site someone is saying on the two hour charts there’s a couple trades setting up on the EUR/USD and the EUR/CAD as sell trades as reversal trades. Now I wouldn’t know how to look at my charts of that.
Well that pretty good. By the time I got to my charts, a few minutes had passed and passed the change over. Now if you go and look to our chart Euro US dollar the 8:00 candle 0800 hour candle on the 2nd of February. So it’s the candle that started at 8:00 and finished at 10:00. Don’t have looked it out in the charts you see a lovely reversal trade there. On that trade on a two hour chart trade.
I ended up getting a 4 to 1 reward to risk out of that trade. So in other words, half of 1% risk on that trade. Real low control risk, only half of 1% of my account risk. But I made a massive 2% account gain on that one trade. The euro Canadian made a 2 to 1. So that did really well as well.
So you put the two trades together. I made a 3% account gain on two trades taking that exact same time, all posted and written on our forum site by someone else. I didn’t even look at the charts at the time. I just happened to see that pop up on the Forum site. Went to look at the trades, saw the trades go Yeah, they’re fantastic.
Took them, profited. So what does that tell you? Well, it tells you that different time, different charts can be treated equally as well and also tells you about the power of a community and a forum site of like minded people. And that’s one thing we’re really proud of here at the Forex Trading Coach. Coming up in this April, we celebrate our 14th birthday here at the far trading carriage, something we’re massively proud of and we love doing what we do.
So if you have any interest in trading, different timeframes, different markets, but the same strategy, that’s the important thing with low risk, high reward to risk trades, just like those two trades I’ve just mentioned and like last week on the daily charts, come and have a chat with us here at the Forex Trading Coach. We’re here to help.
We’re friendly people, we’re real people. We trade from home and we do this because we love doing it and we love the community of traders. So I hope that helps. Don’t forget, if you see a strategy, if someone goes, you can only trade this on a one hour timeframe or whatever the timeframe is, or you can only trade this on the EUR/JPY or whatever the market is.
It’s likely to be curve fitted, over optimizing probably not a great thing to do. You need to be able to trade regardless of the time frame chart, the conditions and the set ups that the market is presenting to you. Just like the two examples from daily charts last week, shorter timeframe charts this week, just the way the market is.
But we’ve profited both times and that’s what makes this work. This is Andrew Mitchem Forex Trading Coach I see this time next week bye for now.