Thread: Faizumi fx verification trades

Originally Posted by bonnevie

I've an irrational dislike for multi-timeframe methods so I appreciate feedback on the real effectiveness of the practice. (Not so convinced that higher TFs will keep me out of, say, trades that appear profitable but come at the end of a daily trend when the market turns around; who knows how long a trend lasts?)



bonnevie

bonn,
one of the turning points in my trading came when I realized the power of MTF. When you think about it, what time frame do you think the real movers and shakers of the Forex market are interested in? The GMs, the Sony's, the Hyundais, the Toyotas, the BMWs, the Pepsi's, the Nestle's, the Samsungs et al of the world are interested in? My guess would be the weekly TF at a minimum. I cannot imagine their currency hedge portfolio managers trading the M15 or H1 or H4 TF's. No matter what anyone says, we as the retail traders are ultimately trying to ride the coat tails of these market movers. So it is prudent that we pay attention to the time frames these guys are trading at. That is my rationale.....and just my opinion.

Thanks for the encouragement, duggils. Appreciate it.

Since my last post, I dropped the goldminer and sniper indicators and used the standard MT4 MACD instead as kidrock suggested; demo traded the H1 time frame after work (GMT -5 time zone); watching 14 pairs, not just the jpy crosses; trading one mini lot per pair - couldn't trail my stops because I would need to have some kind of VPS hosting set up - so just the one lot; traded only in the direction of the daily trend, as per kidrock's practice; didn't always have the nerve to set my TP at 50 pips (I'm used to trading lower TFs with smaller TPs, so 50 pips still felt scary-far!) so sometimes my TP was 30 pips, aaaand....(drum roll) made about 750 pips! Perhaps that might seem like chump change to some folks but it's been a long time since I've seen so much green in my trade history!

So, yes, the strategy works...so far. Just thought I'd give that quick update.

bonnevie