Your story was very interesting and the "COG system" looks pretty promising, onshore. Thanks for sharing.
ha the story only scratches the surface
I got a few details to clarify though.
1. If I understand correctly sell or buy should be executed on _close_ of the next 4H candle (red or green) after hitting green/gold line of COG indicator, right?
Entering is a little subjective I take in to consideration a few things
Support and resistance i look at daily and 1H charts to see whats happening.
And The CCI to see if it's over sold.
Basically I am trying to trade retracments after a move up or down.
If you look at the cable on 4H charts it's up moves are around 200 to 300 pips give or take and retracements are around 100 to 200 it seems to move in seqences this is people taking profits usually.
2. What if the green line was hit initially, but moves away a bit after closing this next 4H candle (did happen to me on EUR/USD right now) and the candle before doesn't cross it anymore? Still valid signal? In other way - should the candle before the last still touch or cross the COG line while selling/buying or is it enough it did 4 hours ago?
Once again subjective if you are in the trade walk away this is the beauty of this system it stops indecision and over trading.
3. What if the sell/buy candle is pretty big and closes near or even on the other side if the blue COG line? Still valid? More risky?
Still looking for the retacement does not matter over or on the line just means more likley to retrace
4. How do you decide exact SL/TP distances? You gave us only ranges. Do you have preset values per pair (if yes, could you tell what they are) or is it more like "what guts tell me" thing?
I use 35 to 45 SL and 45 to 55 Tp it depends on as you said before how big is the candle is it likley to head back that far.
Once agian each pair has almost what is called symetrical moves it goes up certain amount then retraces a certain amount if you look there is a pattern most times
UNLESS there is some really good or bad news then you should trade Felix's news trading system.
5. Do you think some pairs are particularly good for this system or is it universal and it doesn't matter (obvious concerns like spread and liquidity aside).
[
COLOR="purple"]I only use pairs with 4 pips spread or less apart form NZd?USD only beacuse I live in NZ and there is some good news trades to be had.
Many questions, I know, but I'd like to have the rules as precise as possible. Planning to write a little EA to backtest your strategy.
It takes time to get a "feel" for it I am still learning and appreciate any input BUT it has to be simple because I AM
It has a few traits I like very much. Like: simplicity, it's well defined (aside from SL/TP) and doesn't require staring at charts whole day, just each 4 hours. And the set and forget rule after entering the market - I like it very much
The success/failure ratio remains to be tested
Maybe you have some kind of journal or statistics from the times you used this method? Then you could estimate it perhaps? Like 60/40% or 70/30% or whatever.
I will post my trades at the end of each week, this week on my live account as I was away I have had Two loses and 6 wins and one open My demo as I was away for the last three days is one loss for wins one open.
Anyway, time to finish my already too long post...