Bee the Change Trading Strategy Worksheet

Bee the Change Trading Strategy Worksheet

“Bee the Change” Trading Strategy Worksheet

(Submitted by Meagan for Silver III Beeline Task)

Inspired by the Gandhi quote “Be the change you want the world to be.”, this simple strategy evolved from the Fast Track Strategy taught in Beeline. I wanted to get better at “feeling” the price action as if I was riding the roller coaster of price change, and learn to trade like Shawn with an intuitive feel for price action patterns. EventuallyI want to get good at knowing when to get in and get out based on just the price action without the crutch of many indicators. When I’m in the flow of this trade I can ‘feel” the waves of change and I imagine I’m moving with it. It helps!

This strategy worked well for me throughout Silver beeline. It works well applying it to the scaling in or out of multiple positions such as in the 4 down or 3 down conversion play in Silver II.

My trading strategy requirements:

  • Simple to use without a lot of confusing rules to remember
  • Indicators that help you interpret:
  • momentum (or rate of change),
  • direction,
  • variance, and
  • turning points
  • Replicatable over time in different situations and currency pairs
  • Proven by others, and tweaked by me to fit my style

The Set-Up:

Time: This is effective on all time charts: H4-M1. I use these sets for alignment:

  • H4, H1 and M15 for larger/longer trade goals
  • M1, M5, and M15 for scalping
  • I like to set it up on the longest chart and then go to the M1 chart to choose the moment of entry.
  • I monitor my trades on the M5 chart.

Tip for D1 or Long Term Trade:I have found that if I intend for the trade to go longer than 24 hours I add the Momentum Oscillator and align the momentum over all time charts to establish trend consistency. If

Indicators:

  • Stochastic (3,14,3) – the default with lines added for visually highlighting 70%, 50%, and 30%
  • Instead of 50 SMA as in the Fast Track Strategy, I use the EMA(50) set to line width 2 and bright green
  • I add the HMA (13)
  • For 24 hour+ trades Imight add the Momentum (20) Oscillator to confirm momentum change.

Additional helpful Chart tools:

  • I use the Fibonacci Fan or Lines frequently to help plot Take Profit and Stop Loss.
  • I plot support and resistance ranges or zones for Break out trades, and to define Take Profit and Stop loss.

Take Profit:

  • Set to achieve a Beeline task objective or a personal goal
  • Set in support or resistance zones as appropriate.
  • Use the Fibonacci tools to help refine placement.
  • Set based on price action. Check ATR if that helps or use the crosshairs to measure the average candle change in pips to choose an appropriate Take Profit.

Stop Loss:

  • Set equal to Take Profit for equal Risk/Reward ratio.
  • Use a larger stop loss and relative take profit for longer timeframes or you will get stopped out prematurely.
  • Set above last resistance or below last support as appropriate depending on bearish or bullish trade.
  • Use the Fibonacci tools to help refine placement.

I like to use the 2:1 Reward/Risk ratio in active markets, such at 10 TP, 5 SL.

Note: I used to calculate the exact Stop Loss and Take Profit number and type into the order form, but now I use the one click buy or sell on the top right of the chart (looks like a traffic signal). I set my one-click variables to Take Profit 20 and Stop Loss 20 all the time. Once I place the order I then manually adjust the take profit or stop loss lines by dragging them to precisely where I want it relative to price action and support/resistance zones.

Pulling the Trigger:

Bullish Entry and Exit / Bearish Entry and Exit
  • If the D1 chart and the HMA line are trending up I will only look for a bullish entry
  • Trigger candle must close above the EMA and be a bullish candle
  • AND….the HMA is blue and trending up
  • AND….the Stochastic has gone below 30 and is oversold or approaching oversold
  • And…. the Stochastic is pointing up for a Buy signal AND the next candle opening is bullish
  • Stop Loss: place below the last support low.
  • If using Momentum: over 100
  • Exit when the indicators read change in the trend or you’re giving up Pips
All these criteria must be met!! /
  • If the D1 chart and the HMA line are trending down I will only look for a bearish entry
  • Trigger candle must close below the EMA and be a bearish candle
  • AND…. the HMA is red and trending down
  • AND….the Stochastic has gone above 70 and is oversold or approaching oversold
  • AND… the Stochastic is pointing down for a Sell signal AND the next candle opening is bearish
  • Stop Loss: place above the last resistance high.
  • If using Momentum: under 100
  • Exit when the indicators read change in the trend, or you’re giving up Pips
All these criteria must be met!!

Trade Rules:

  • Alignment over any 3 time charts must be met for short or medium time or don’t take the trade.
  • Keep an eye on your take profit and stop loss and adjust if necessary.
  • For longer trades: the STO may cross the 50 line AND the candle must close, without oscillating or wicking, to trigger entry. Otherwise wait till it crosses 70 or 30.
  • Long term trade: Momentum Alignment over time from D1 – M1. Over 100 is bullish, Under 100 is bearish.
  • ALWAYS set a stop loss and do not move it unless you modify the trade for a longer term trade with a larger take profit (an equitable Reward/Risk ratio).

Scaling In:

  • I use this strategy effectively with scaling in with multiple small positions on a trend.
  • Take the first trade and wait: make sure its moving in your direction. I usually wait for it to be up 1-2 pips before taking the second position.
  • Set the 1 Click trading tool for the .01 lot size, and desired Take Profit and Stop Loss.
  • Click on Buy or Sell, type the position # in the notes and submit.
  • Repeat quickly for the number of desired positions. 5-10 positions works well if you’ve caught the trend at the beginning.
  • Keep a close eye on these and begin to scale out as soon as the trend appears to be retracing, quickly closing out the most recent trades first and moving backwards to close trades in reverse order.

Money Management:

  • I only use .01 micro-lots while learning, especially when the goal is a longer term trade with a higher stop loss requirement. This allows me to continue to trade shorter trades while waiting on longer trades to end. I like to manage 2-5 multiple trades of various lengths.
  • I do trade news if actively monitoring – I never set this and walk away for a news event. With a Breakout Buy/Sell Stop the Sto becomes less important but the EMA and HMA are helpful.
  • The longer term charts (D1, H4, H1) reign and if the STO or MO change on the longer charts then I exit on the shorter charts taking profit at the opening of the first candle that is going against my trade trend.

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