Hey Guys,
its Marc from Germany!
I just needed to start this thread now, as I am quite stuck with my trading.
First of all, I am just demoing all of this trades!
Second, PLEASE PLEASE, if you post into this thread, than do it positively (not something like: I am better, you are wrong!)
Third, I am trying to tune up my strategy because I want to filter out wrong signals.
And finally, this is an all technical strategy. Fundamentals are not considered (except major news -> I stay aside)
Okay, let me start with explaining the strategy. I derived it from the Fozzy Daily Method (BIG BIG Thanks to Fozzy!)
Chart Setup:
RSI8 with MA8 over it.
50 SMA (as Trend Indicator)
on a 4h chart
Pairs: GBP/USD, EUR/USD, GBP/JPY,
Thats it. Actually this is the initial situation.
Buy Signal: RSI crosses the MA upward
Sell Signal: RSI corsses MA downward
aditionally, major support&resistance lines (horizontally) and fibonaccis (derived from MAJOR swings from daily/weekly charts) help me to identify reversals (to stay out of trades)
Alone with this, I dobubled one 5k demo account. Problem: I guess it was luck (I am from pessimistical nature)
PROBLEM:
I use this (4h!) method only to grab about 40 pips (if I want or not). In 70% this is achieved easily and sometimes it goes further.
Mostly, the next 1-2 bars after the cross are going into my direction (90%) and turn around afterwards. BUT sometimes it goes on in my direction)
As I am very engaged in getting a higher percentage I need one or maximal two more indicators, which help me to identify bad trades.
I tried the following:
Trade in direction of the trend: Nope, did not work out for me. Actually, the trend is not MY friend
Sell only when Stochastics have been overbought and vice versa: Ran quite well, but too few trades ( I want about 5-8 trades per week)
Buy only when candles are above bollinger bands middle (and vice versa): Nope, again it did not work.
Parabolic SAR (buy when below price and vice versa): I thought this is good... but I was not very satisfied wit hsome trades (maybe adjustable when entering after a RSI/MA cross..weŽll see)
Exit: S/L on 5% of account with 1 lot (with 5k account)
or/and at fibo/supp&resistance levels
or sometimes when RSI/MA cross in the other direction
Okay, what has to be adjusted?
1.) filter for bad trades
this is where YOU come into play. maybe you can help me to find a fitting indicator that matches my strategy (maybe something with volume or cycles)
2.) EXIT! I guess I have to rely on trendlines, fibos etc
Current activity:
Trying as filter: ADX14: +DI line above -DI -> only buy
and when -DI above +DI -Y-> only sell
and asking myself: waiting for next candle to open or entering trade immediately after cross
-> guess when situation is unclear, waiting is better. but when volume and strenght is high one can join a trade when rsi/ma cross
I will further post my trades, and why I did it. Additionally, I will post my opinion about sup/res lines and fibos.
______
The picture was made quickly. Just showing how recent action looks. The thing in the upper richt corner is a signal bar indicator found in this forum.
its Marc from Germany!
I just needed to start this thread now, as I am quite stuck with my trading.
First of all, I am just demoing all of this trades!
Second, PLEASE PLEASE, if you post into this thread, than do it positively (not something like: I am better, you are wrong!)
Third, I am trying to tune up my strategy because I want to filter out wrong signals.
And finally, this is an all technical strategy. Fundamentals are not considered (except major news -> I stay aside)
Okay, let me start with explaining the strategy. I derived it from the Fozzy Daily Method (BIG BIG Thanks to Fozzy!)
Chart Setup:
RSI8 with MA8 over it.
50 SMA (as Trend Indicator)
on a 4h chart
Pairs: GBP/USD, EUR/USD, GBP/JPY,
Thats it. Actually this is the initial situation.
Buy Signal: RSI crosses the MA upward
Sell Signal: RSI corsses MA downward
aditionally, major support&resistance lines (horizontally) and fibonaccis (derived from MAJOR swings from daily/weekly charts) help me to identify reversals (to stay out of trades)
Alone with this, I dobubled one 5k demo account. Problem: I guess it was luck (I am from pessimistical nature)
PROBLEM:
I use this (4h!) method only to grab about 40 pips (if I want or not). In 70% this is achieved easily and sometimes it goes further.
Mostly, the next 1-2 bars after the cross are going into my direction (90%) and turn around afterwards. BUT sometimes it goes on in my direction)
As I am very engaged in getting a higher percentage I need one or maximal two more indicators, which help me to identify bad trades.
I tried the following:
Trade in direction of the trend: Nope, did not work out for me. Actually, the trend is not MY friend
Sell only when Stochastics have been overbought and vice versa: Ran quite well, but too few trades ( I want about 5-8 trades per week)
Buy only when candles are above bollinger bands middle (and vice versa): Nope, again it did not work.
Parabolic SAR (buy when below price and vice versa): I thought this is good... but I was not very satisfied wit hsome trades (maybe adjustable when entering after a RSI/MA cross..weŽll see)
Exit: S/L on 5% of account with 1 lot (with 5k account)
or/and at fibo/supp&resistance levels
or sometimes when RSI/MA cross in the other direction
Okay, what has to be adjusted?
1.) filter for bad trades
this is where YOU come into play. maybe you can help me to find a fitting indicator that matches my strategy (maybe something with volume or cycles)
2.) EXIT! I guess I have to rely on trendlines, fibos etc
Current activity:
Trying as filter: ADX14: +DI line above -DI -> only buy
and when -DI above +DI -Y-> only sell
and asking myself: waiting for next candle to open or entering trade immediately after cross
-> guess when situation is unclear, waiting is better. but when volume and strenght is high one can join a trade when rsi/ma cross
I will further post my trades, and why I did it. Additionally, I will post my opinion about sup/res lines and fibos.
______
The picture was made quickly. Just showing how recent action looks. The thing in the upper richt corner is a signal bar indicator found in this forum.
Per aspera ad astra!