Here is the updated and advanced version of Perry's trading method. This Wiki is developed to have a single reference for the indicators and rules for perryg's latest trading method. For the general Q&A please use the forum. Most of the indicators for this method have been custom developed by Erez whom has put a lot of effort into the coding.
Perry's trading method was awarded GOLD for best trading system in 2011, improving the system from its bronze ranking in 2010. Perry was personally awarded bronze for best member (3rd place) in 2011. https://futures.io/bmt-best-of-trading/
Perry has enhanced his trading system in 2012 by adding fractals as well as other modifications to refine the methodology. Perry's method is not a group of hard set rules but rather a Paradigm to follow as concepts to apply to your trading strategy.
Perry’s method focuses on aligning with a discernable trend in the short term market. Moving Averages are the indicators that confirm a trend to be exploited for quick profits (3 to 5 ticks average and sometimes more.) Larger Price Targets (PT) should tighten stops after the initial 3 to 5 pips.
There are no reversal or return to mean trades. All trades are in concert with the market trend. Wait for the confirmation of all the moving averages in at least three (3) chart periods for your chart type, i.e... 1 minute, 3 minute, and 5 minute all confirming the trend. Do not try to jump the signals. Patience is the primary trading psyche to be successful with this system.
When trading time charts, you have to use at least another higher time frame if not 2 for confirmation. If you trade the 1 min you must have at least a 3 min or 5 min chart for confirmation. On a time chart, you want at least 3 moving averages to support your trade, as a high probability trade. You must look at the HTF for confirmation and compare at the MAs.
3 additional MAs are required to support the trade in addition to the 1 PPMA and 3 PPMA (5 MAs.) You need 3 DMAs. The paradigm is based on moving averages, so you have to compare the the chart types i.e. time charts to time charts. By looking at a time chart and a range chart the MAs are distorted and cannot be compared accurately. Using the chart types you are able to see the dissection of the MAs on different scales. Trading a 15 min bar is the same as trading 15 ONE minute bars.
1. No trading within 5 minutes, before and after, an economic data release
2. Never trade against the SMA 3
3. A good setup consists of DMAs, PPMAs and HTFs all indicating the same trend without being near obvious Support/Resistance levels (Camarilla Pivots)
4. An entry signal is the entry bar must be within 1 tick but preferably touching the SMA 8 (range) or EMA 13 (Time)
5. One exit signal is SMA 1 crossing back over SMA 3 on the LTF. At that point, review the 2 HTF’s to see the DMA divergences and use all three (3) charts to confirm the exit.
Perry reviews a sort of “perfect setup” that was exited too early in these two reference items:
Original question: https://futures.io/elite-...cement-32.html # 311 & the answer continues in the next item in the thread.
6. The paradigm works on any time frame. The time frame that you trade depends on the individual. Perry normally uses time charts - Have the 1 min, 3 min, 5 min and 15 min charts open. Shorter TF are faster than HTF. Highest TF will always be your trend director, while the lowest time frame will be the entry chart. So if you choose to enter on the 1 min, you must use the 3 min or 5 min as a reference to the trend direction. In 1min TF there should be at least 3 ma's supporting the trade (direction.) If the 3ma's are also in the right order then this is mathematically stronger but not essential. Never ever trade against the color of the candle on the 15 min chart.
1. Always use the "FractalSRLines" indicator with "Calculate on bar close" = TRUE
2. Switch off (select False) MTF 5.1 history status. Past alerts (arrows) are not acurate in history, they are only accurate in real time.
3. Daily currency settlement figures should be used for the pivot calculations found at: http://www.cmegroup.com/trading/fx/g...s_futures.html
4. MTF Analyzer has an Intra-bar counter trend allowing the HTF bar to retrace a certain amount of ticks, but still allowing the trade. When this happens a warning arrow in the form of a lighter color - Orange instead of red, and lime instead of green will show up. This allows BREATHING from the HTF without causing havoc on the lower time frame where you enter or entered a trade.
5. News release times around the globe as well as their summary results can be checked at www.ForexFactory.com including seeing when martket moving commentators (Federal Reserve) will speak
6. Globex forex traders of 6A, 6E should check www.ForexLive.com for commentary including educated estimates of where market is headed and if there are any buy/sell stops in the DOM, especially follow Gerry Davies.
7. 6E’s more favorable trading time is 1am - 3:30am (Eastern) is usually see nice moves in this time frame. Of course Europe opens at 3:00am so be careful. Stay aware of standard news times similar to NY’s 8:30 and 10:00 am releases that often occur at 2:00am (Eastern.)