A "new" simple system based on MA

Thank you for the advice, I changed my EMAs to GMMA as well, and entries seem much clearer now. Hoping to make this thing work, as I really do love the concept behind it.

A successful trading week to you.

Hello to all the followers here ! Launching this thread, my goal was to give a simple approach of FX trading because simplicity allow people to easily understand what they so that you become more an more confident in your trading system and so that you are able to trade without your feelings. That's why I talk about the philosophy of the system because this is the more important and all indicators used are here to answer at the system's phiosophy. This system is nothing else than a trend trading system ! Why ? Because as all people here, I know and I read that trend is your friend ! We are independant traders, we make and sometimes lose our own money !!! We dont want to gamble with it ! So we have to minimize our risks and maximize our profits ! And trend trading is the best for that ! When you are a bank trader you play the money of bank's custommers and the only consequence for a losing trader is to be fired....but he will not lose his own money ! Even the bank won't !!! This is different in our case !!! So we have to get a serious plan, serious rules, and be confident. This system is all about it ! And we use simple indicators such as price action, EMA's, DMI, and oscillators to define the trend and the best momentum ! What else do you need ? Nothing guys, believe me ! With this philosophy, you will catch the trend and buy or sell at the lower risk momentum. Of course you will have losers....but your winners will be more often and larger than your losers. And when you perfectly master this system you will find it is really boring (that's why I decided to launch this thread : it allows me to discuss about trading with others, and I think it is really interesting in a social way to learn something to someone) ! You are alone behind your screen and you are waiting for the same setups all the day, doing the same thing everyday, with none around you. You make money but your job is almost as exciting as the job of a factory worker !!! I can sware you it is the truth !!! The only BIG difference is that you make money, even lots of money ! Why do I talk about it this morning ? It is because I see that this thread is not really becoming what I hoped. Guys, dont be only followers : be actors ! Give me your point of view, your success or not with this system etc...The messages I receive are almost all about EA. I do not use EA because I think that people are smarter than EA and they can "kill" them on the market. EA are what older traders knew as the crowd on the market !!! The best example is the trade I did not take this morning : Check on the next post !

The first trade was not taken because of the price action on the higher TF (1h because I trade on the 15min). Look at the pics.

The second target has been touched : 30 pips on the first half and 45 pips on the second. A nice day, making money easily simply following the system on a perfect setup : low risk and high potential of profit. I never risked more than 2% and I finally end with 37 pips per lot. This is not the case everyday but I can guarantee you that if you are a newbie and you focus on the perfect setups, you will earn money without taking high risks. Learn Price Action, Resistance/support levels, trend indicators, and oscillators....and post your experience !!! The day is done for me and I can have fun. Bye.

Hi hmaoui
I am very glad you still attention to this post and share your experience.Thank you for all you do.
I have practice on demo since my last post，and I think the system is a profitable system，but the most important thing is the ability of find a Strong trend，cuz if trend not have the momentum，the price will go up and down.In this case it is difficult to make a profit.The 2nd thing is the timing of entry,because the SL is very small,so the entry must very accurate, to avoid unnecessary loss.
when I trade on demo,I find lots of entry,but most of them is not a nice one.
In the present stage I will try to find a effective method to pick up strong trend and accurate timing of entry.

Hi Too_Lazy,

Thank you for your feedback. This system is clearly profitable because we trade in the direction of the trend and we try to enter at the best price (meaning with a very small risk). The SL is really short but it is a part of the system that warranty you against big losses. Nevertheless, you have to be very accurate and not afraid to re-enter when a second opportunity is coming after the first loss. Maybe you can trade on 15mn chart to rise your SL and be more confortable. Look at the 1h trend and trade on the 15mn chart, 5 mn chart would be just to be more accurate in your entry. I think it can suit you more because 1mn/5mn is really hard especially for newbies (and experienced traders too !). I now trade this system by this way as I have a "large" capital (and also with my "lebanon system" on 1h TF).

Concerning the trend you are absolutely right !!! This system is nothing more than a trend trading system and I advise you to not use it during sideways markets such as now. Why tradin the trend ? Because the larger moves take place with a trend not durng a sideways market. So you can catch lots of pips only during a trend. Of course, in a flat market like now you will lose money. Then you have two solutions : filter out the sideways markets (DMI with no directions, little spreaded BB, weak ATR, no Higher Highs or lower lows, EMAs all at the same place, etc....) or use the oscillators to scalp some pips (not for beginners).

Right now we dont have any trend so dont try to trade using this system. Try to scalp if you feel confortable or wait for a volatility breakout. Volatility is really cyclic ! After a low volatility period it always comes a high volatility one's. Be patient this is the way to be a good trader. Do not try to anticipate ! The markets will be here tomorow :-) Wait for the breakout and be prepared to enter on the pullback.....you will catch major moves !!!

For example look at your 4H chart on the €/$. You can see that a bearish trend developped at the end of october/begining of Novembre followed by a nice pullback on the LT EMAs on the 7th of November. After this pullback the bearish trend continued to reach a low on the 13th of November. The second pullback was an alert because price broke the LT EMAs and even if it downcrossed the EMAs, it never broke the last low. Then DMI was in a n trend configuration such as the EMAs which were on the top of each other (consolidation). After then, the ST EMAs broke upwards the LT EMAs which were compressed (a sign of a possible trend inversion). Price were above LT EMAs, ST EMAs above LT EMAs, and there was a nice pullback on the LT EMAs with a nice pinbar formed on the 21st of November. STO's were on the 50 level support -> possible entry with a SL just under the low of the pinbar. With less than 50 pips as a SL (nothing for a 4H chart entry), he entry would have been near 1,2770 with no exhaustion sign of the uptrend until now....about 200 pips higher. I think tht even if you place your SL at 1,29 you would have been in a free trade with a minimum profit of around 130 pips...for a SL of 50 pips ! A nice R/R ratio, dont you think ? This trade could also go very much higher or not but you would be stressless.

This the philosophy of the system : trading in the directionn of the trend entering at the best price and take profit of large moves to get a high R/R ratio. So that you can take many losses without being affected. Be confidnt in your skills, practice it everyday, and when you are profitable in demo take a mini account for real and trade it like a robot ! You will see that you will be profitable and you will understand why many successful traders write books ! Trading is not exciting it is always the same like for a ford worker !!! The only difference is that you are your own boss and that you can earn lots of money...

Hello all. Long time since I don't trade. But here is my today's trade. +6%



Regards,
Dragon

Hello again,

I've been trading the system and it has been great on m1. I don't have screenshots of my entries, but I do have a question for today.
Basically I know that I shouldn't trade the system when market is ranging and that I should rely on my oscillators... But suddenly there was a drop and I am not sure how I should have gone about trading it.

Below is a screenshot of my chart;

Should I have trusted the m1 EMAs cross along with the DI- pointing up and then crossing above DI+, then just held onto my position until daily S1 (which coincided with 2900 psychological support) ? Or is there any entries I have missed? ADX is through the roof, and stochastics are oversold throughout the whole drop...

This may be a very stupid question, but I was just wondering how you would have done things here, just stay out (like I did) ?

Thanks for all of the help.

Nice trade ! Happy to see you again on this thread

Hello ! I was not here so I did not answer you. To give you my feedback : First, never trust ONLY the 1mn chart !!! You have to check what is the trend on the longer TF (5mn TF) ! So I cant tell you if it would be great to enter or not and at which level. Never forget the philosophy of the system : enter a trade at the best price in a clear trend !
Also, never look ONLY at oscillators in a trending market...because price make oscillators. So it is very important to look at price action and how it reacts on S/R levels such as EMAs in a pullback. Oscilators are just a confirmation. For example, in a clearly down trend, Stochastics can stay O/S during a long time : it means it is a strong trend so a pullback, even a touch of the EMAs followed by a bounce off of it can be a very good opportunity to enter a trade ! Please make your homework about PA (look at James16 thread for example), oscillators and each indicator you use. You have to master it to interpret it !!!
Place you SL and your Profit Target at reasonnable levels. I mean you have to put a tight SL on 1min TF (7 pips) and take your profit very fast at S/R levels. In your case, if the trend was short on 5min TF, you may have enter at the touch of 12 EMA, putting a 7 pips SL and a profit target at the RN 1,2900. It would have been acceptable.
But be sure that trading on 1 min TF is really hard and is not for beginners ! You have to be able to trade like a robot because you don't have the time to think about your decision (hesitation can kill your account) and you heve to be really accurate to enter at the best moment. I would rather trade the 15mn TF with 1h checking....less stress and less hard to begin

Hello. Today's trade gaves me -3%



Regards,
Dragon

I am not sure that you took the trade according to the rules. Look at the first pullback on the left of your pic : you may have entered at the 12 EMA and re-enter at the LT EMAs (first entry is at about 1,3065 and the second is at about 1,3070). After that, you have a support at the blue line which is (I suppose) a pivot line (strong support). At this level you may have exited one position at least and put your SL at B/E. After that no more entry because there is no trend (the last bottom has not been broken even if there is a pullback and the DMI confirm). Also you would have been exited as the trend reversed itself with more than three candles that closed above the LT EMAs.
As the trend reversed you could enter at the pullback (at the right of your pic) and it would be a loser or a B/E at best.
Also dont forget to have a look at the trend on the higher TF. As it seems to be a 1min chart you should have checked on the 5min chart to see if it is bulish or bearish. If it was bullish you may have taken only long position which exclude the first trade (even if it can b a winner), and if it was bearish the second one is excluded. Focus on best setup.....Yesterday was really crazy : there was a strong resistance on 1,31 level and the trend reversed on 1h TF. I waited for the pullback and entered on the 15mn chart for an 80 pips trade !!! Patience is the key !!!

Thank You for your advice .

I always check the trend on 5 min. and trade only with the direction of that trend.

In my pics blue lines are support levels, red lines are resistance levels and brown lines are middle levels.


Thank You,
Dragon

Hello. Today's trade gaves me +5%



Regards,
Dragon

Well Done !

Just to give you an example of a flat day ! Look at the chart for explanations. It is important you do not trade with this system and anyelse trend trading system during period of range or you will lose money. So learn to identify cler trending period to avoid flat markets and focus on A+ trades.

Hello. Today's trade gave me +6%.



Hmaoui... when are you going to stop trading this year and when are you going to start trading next year?

Regards
Dragon.

Hello Dragon ! Hope you are positive with the system this year ! I did not trade from last week until the first week of January. I am in holidays to celebrate the end of the year and Xmas period (even if I am not a christian) with my kids and all my family. So I will be back on the 2nd of January or something like this.

Hi followers ! This is almost the end of the year and it is the best time to look at your results with this system. For me, it was a very profitable year and I can say that this system suits me and that I master it now. I hope that it will be the same for you. For all newbies (new followers of the system - less than 3 years of trading and less than 1 year with this system), I would like to say you that you have to work and to continue to try this system, reading the rules every week even every day to integrate it perfectly. Look at charts, always try to follow the rules whatever your results are. On the beginning it is more important to understand and to follow perfectly the rules than focusing on the bottom line ! Once you are confident and you master the system, then you will automatically earn money.

Some members or followers asked me if I have a signal service ! Clearly, I dont have a business service based on signals delivering because I think it is a no value service. Actually, my first source of income is the trading and I am also a salesman for an IT company (for my own). I actually think about setting up a business to learn trading. The goal would be to give all the tools to the "students" to build their own system so that they will be able to understand the market and make some good profit. But this is only a project and it is not sure that I will do it. Nevertheless, I will think about it on 2013.

Merry Xmas and happy new year ! Hope to see you again in 2013

hi hmaoui and all followers,

long time I not chat here but I have still sucessful trade this sys.

thanks to you hmaoui and all poster here!

and I wish to you all:

merry Xmas and happy successful new year ! hope to see you again in 2013