Trend filter suggestions for strategy needed
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If a moderator could kindly edit my post with the following below, then I would greatly appreciate it. Along with the new title, Fixing a new Strategy.
I am trying to plug a gap in a new strategy in trading CFDs. Using 4 charts. The first chart is a 4-hour chart with Ichimoku and MACD. The second is a 1-hour chart with Pivot Point that is modified to show the MACD as a 4-hour. The third is a 5-minute chart with Pivot Point. Last is daily with a regular MACD and RSI. I also use candlestick patterns and some fundamentals to assist. I am open to any suggestions to help improve the strategy.
The strategy works as follows,
- Using the 4-hour chart, I wait for the candlestick to cross the Kijun-Sen. Once it does, I come back once it has finished.
- After the candlestick is complete, I check to see where the past price point is in comparison to the Chikou Span.
- If Chikou Span has crossed past candlesticks, then I place a trendline on the top/bottom (depending is the trend is long or short) of the current candlestick.
- I will then use the 5-minute chart to set an auto trade when the 5-minute chart has closed after/below the trendline. I also use the MACD on the 4 and 1-hour chart to confirm the trend.
- I use the Pivot Point on the 5-minute to set Stop Loss. The Stop Loss is placed on the last high/low adjacent to the second Pivot Point line.
- The Limit is set on the 1-hour chart using the Pivot Point or past data using trendlines.
- The amount per contract is calculated as so, 1 percent of total capital. For example, 1 percent of 20,000 is 200. Then measure the distance of the potential entry point to the potential Stop Loss. For example, Stop Loss is 50 pips away. Now divide, 200/50=4. The contract is purchased at £4 per pip. The ratio is always close to, or more than, a 1 to 1 between Stop Loss and Limit. So the Limit would be set close to, or more, than 50 points from entry.
- The daily is used to help the overall understand of the trend direction.
The strategy works well, but there is a time when the Ichimoku fails me, and the price with go against me before going my way and hitting the Stop Loss. What I am looking for is any suggestions that will help prevent me from making a trade when the Ichimoku is wrong. Any suggesting indicators, or if someone thinks they can create one, then even better. Any help would be greatly appreciated. I was thinking of something else on the 1-hour chart to show that the trend is still going in one direction when the Ichimoku is showing another. Thus preventing the trade until the time is right.
Thank you in advance.
Thanks to all those guiding me in creating a better post and helping me understand how Prorealcode forums work.
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