I wanted to share this trading system I've come up with, I've been testing it for about 4 weeks, any ideas for improvements ?
The Indicators
60SMA
long term MACD 30,60.30
Short term MACD 12,26,5
5 min candle chart
The Rules
The Indicators
60SMA
long term MACD 30,60.30
Short term MACD 12,26,5
5 min candle chart
The Rules
- I only trade from 7am to 1pm GMT, max 2 trades
- The long term MACD is used to give us the direction in which we can take trades, eg when the histogram is positive take long trades and when negative only take short trades.
- Once we have a trend going on the long term MACD look for a pullback on the short term MACD, it must go negative on the histogram for a least one bar, ofen it will go bearish for a few bars, on the first positive short term bar (wait for close of bar) go long with 2 lots. The long term MACD should still be going up.
- Stop goes below the lowest low of the last 3 bars.
- move stop to breakeven once first profit target is hit.
- Take profits on second postion at 2x risk
I have attached an image as an exsample,
[IMG]file:///C:/Users/Simon/AppData/Local/Temp/moz-screenshot.jpg[/IMG]