Trend catcher / Profit hunter combo

#1

I tried combining some of the newer indicators over the weekend and wanted some feedback on this idea. The main indicators being used are trend catcher, profit hunter and trend confirm.

The trade direction is dictated by profit hunter, with the blue line above the gold for a buy and below it for a sell. Trend catcher must match that direction and the confirmation bar must close. Trend confirm has to match for an entry to be taken (on the confirmation bar or the next at the latest).

The entry would be 1-2 ticks after the confirmation bar closes.
Looking back through some charts made this look like a good entry for small scalp trades and the occasional trend trade.

The idea I tested out today was to trade 3 spread contracts with two set up for a scalp and the third left on for a potential trend trade. After taking profit on the two scalping contracts I moved the stop loss on the third to try to lock in a small profit. On NQ and ES I thought to risk $35 for $25 on the scalps, and $25 for $15 on CL and GC (per contract). I came up with these numbers from looking at the charts and trying to account for the bid/ask spread on those instruments.

I used instant submit for the entries but setting a stop trigger 1-2 ticks beyond the confirmation bar could work as well.

This shows my CL entries.

I also got bold and did an NQ trade.

On the third CL trade I took profit at the wrong level, looked at the prices wrong.

After trading this way, it might be easier to just do the small scalp trades instead of trying to mix in a trend trade. It can be a bit much to keep up with.

The entry/exit rules may need some adjustment, as well as the risk/reward targets. Any thoughts?

#2

Mler, great job on posting your charts and trades and rules. I think this is some good suff here and a great job of combining some of the new indicators to come up with new strategies and systems! Dom is also working up a Forum post for what he is dong with combining Profit Hunter and Sharpshooter as well, would be great to see both of your systems and compare them side by side and see what we can combine etc. I like what you have going here, keep it up and please keep us updated on your trade results each day. You may also want to throw Trend Flip on there and see how that lines up as well

#3

Thanks, I’ll definitely take a look at trend flip. I may not get many trades in until Thursday, that’s my next day off.

#4

Thursday update. Up $20 for the day as I continue to work on the rules for entry and exit. My first trade for today was on gold which was almost immediately stopped out for a loss of $83.40 using 3 contracts. The big mistake here was trading into the red ICE line, I didn’t have ICE up at the time.

Next trade was on US500 which turned out well, plus $47.40 using 3 contracts.

I tried a premium collection trade which ended up getting stopped out.

My last trade on US500 went very well, plus $91.60 using 3 contracts.

I’m still trying to decide if I want to continue leaving one contract in place for a trend trade. So far the winning scalp contracts have made $14.36 per contract, while the trend contracts overall have made $11.87 per contract. These numbers don’t include the stopped out trades from today.

I want to try more of these trades using a stop trigger order, triggering 8 ticks beyond the close of the pending bar. On a 12 tick diagnostic bar that should place it two ticks beyond the confirmation bar if it closes in the desired direction. I think that may get me better entries and the trigger can always be cancelled if the price moves in the other direction. The price can really take off sometimes when the confirmation bar closes so this may help. It seems that it will also build patience directly into the system.

Looking at the profit hunter indicator, I think it may be best to wait on entries when the blue line is moving against the desired trade direction. If the blue line is moving against the desired direction or flat, waiting on trend flip to line up seems to be a good idea.