Where Reality And Magic Merge Into One

Ok watch this...

This screenshot was taken yesterday at 10 Est. on a 0.1 pt Renko chart.

You can see a pivot above the dark blue line and below the green line and that would make it my entry point.

However, even though there was a white bar closing ABOVE the green bar and into the yellow line section (yellow circle), the blue bar that followed(green circle) closed in BELOW the green line so there was no need for us to exit that 1st entry point because both the 1st and 2nd one were BELOW the green line.

In other words, to make sure that the 2nd entry will close in the yellow or red section, we first need to have two white bars in a row ABOVE the yellow/red line before exiting our green line entry.

If the yellow circle white bar would have done another white bar, the blue bar that followed would have closed right ABOVE the green line in the yellow zone.

Again, we have 3 entry possible.

1- Above the dark cloud (Midline4) but below the green line
2- Above the green line but below the yellow line
3- Above the yellow line but below the red line

I don’t think adding more lines is going to change anything, the base lines themselves aren’t profitable most of the time.

I coded up a simple base strategy which buys and sells at the crossover points, and optimized from 1 through 18.
There are no stops or targets just a look at how often the cloud direction is profitable.
The best one was 11 which was profitable 38% of the time.
This is on M2K 0.1 brick Renko back to the beginning of the contract on 5/5/2019

Alright , just forget about it then, I'll continue on my own.

Hey Nevi,

I've been looking at your way of trading against my system and at first I thought this was crazy but you might be on to something here...

My system is based on the super extended dips to get back into the previous trend direction and make 5 pts but your way of entering in the opposite direction of the present trend is interesting here's why...

A I just mentioned, when the price goes above my clouds it's because the price is over extended but...there is a second reason why the price goes above my clouds and that's when we have a trend reversal AND THAT PAYS A LOT MORE than just 5 pts because now, if the market makes a big move 20, 50+ pts then you catch ALL those big moves and I LIKE THAT.

Here's a screenshot I made recently that should explain it better...

In the first screenshot, taken Sept. 24, we can see it make a nice 25 pt trade.

In the first half of the 2nd screenshot, we have a typical range where the market goes up maybe 5-10 pts before coming back down. You can still make a few pts (3-6 pts) here and there but look at the second half when the market takes off.

By entering right when the market moved above my dark blue cloud, we caught another 20+ pt trade.

There are still money to be made with my previous system which is to get back in when the price comes back into the clouds but in too many cases, when the price goes above my clouds, it's because the price is reversing and I was missing that opportunity to make all those big moves.

It's still early but it's looking promising because you don't need too many of those big move to pay for the tiny little fake entries you will get.

25 pts could have been done on the 24 and another 20 pts trade the next day. Not bad right?