I have been a member of FF for a while now and I have really been blessed with this great forum. I have met great people here on this forum and also learn a lot.
As a token of my appreciation, I will like to share this simple system that I call bread and butter trade.
This system is not for every trader, but if you find it useful, pls feel free to adapt it to your personality.
Another thing I will like to say before I go to the system is that as a trader, you need to reduce the drawings on your charts to see price which is truely the best indicator. Forget about all your numerous lagging indicators, look at price, apply sup/res and you will do well. Another thing is that you should stop looking for the guru that will help you to be successful. The guru is you....yes, I mean you reading this. You are the best trader that can ever be....only if you belief.
I have been trading this system for over 3 yrs now and it has consistently given profit. It can be used as a scalping method as well as for long term trades. It is not 100%, but you can adapt it as you like...remember, you are the best trader the world is waiting for.
The System
Pair: EURUSD. (I trade mainly eu but I am sure that it work on all pairs)
Chart time frames: 1hr, 4hr and daily charts
Indicator: 24ema applied to close.
Rule: There are only 2 rules to remember.
1. When price is above 24ema (minimum of 20+ pips), and price starts to travel towards 24ema i.e. price is falling towards 24ema, set a buy limit at 24ema with anticipation that there will be a bounce back UP. Vice visa for sell. Target 10+ pips
2. When price is below 24ema and travelling UP towards 24ema, If price close above 24ema, Then open and close above 24ema, set a buy limit at 24ema anticipating a retest of 24ema for the journey UP. Vice visa for sell.
Stop Loss:
The stop loss is derived from rule 2 above.
For Buy: When price close below 24ema, then open and close below 24ema, close the trade.
For Sell: When price close above 24ema, then Open and close above 24ema, close the trade.
Avoid News time.
A picture to illustrate:
[IMG]file:///C:/Users/IBUKUN%7E1/AppData/Local/Temp/moz-screenshot.png[/IMG][IMG]file:///C:/Users/IBUKUN%7E1/AppData/Local/Temp/moz-screenshot-1.png[/IMG]
UPDATE:
Steve have been so kind to write an ea for this method. Pls find attached.
The ea keep watching for the position of the 24ema and based on the distance you choose (bufferpips in the ea property), the limit order will be sent. 20 pips is the default.
pls play around with the toy, but get the real foundation of the method manually first while you try the ea on demo. You are responsible for your own trade, so use responsibly.
UPDATE 2:
Steve updated the EA and added 2 script for us to test it out. Pls read post No: 55 for details but find below Steve's statement:
The two scripts will read the EMA for you and send the appropriate limit order at that price.
So long as you use the same magic numbers for scripts and EA, the EA will then monitor the trade for you and (should) move the trade fill price in line with the ema. Set StopTrading to 'true' and the ea will monitor and manage the existing trade, but not send a fresh one once the trade has closed or been deleted.
The only update to the EA is to display the ticket number of the trade it is monitoring on your screen to confirm that it is working with the correct trade.
Update 3:
Squolou have been very kind to improve this strategy by making a dashboard. Pls find attached the dashboard.
Update 4
Steve has done it again. He has come up with a multi pair trading ea for the bread and butter trades. Pls take it for a test and lets come up with the best optimisation for the robot.
Chk out the detail intrustructions at: http://www.forexfactory.com/showthre...33#post4820733
Cheers.
As a token of my appreciation, I will like to share this simple system that I call bread and butter trade.
This system is not for every trader, but if you find it useful, pls feel free to adapt it to your personality.
Another thing I will like to say before I go to the system is that as a trader, you need to reduce the drawings on your charts to see price which is truely the best indicator. Forget about all your numerous lagging indicators, look at price, apply sup/res and you will do well. Another thing is that you should stop looking for the guru that will help you to be successful. The guru is you....yes, I mean you reading this. You are the best trader that can ever be....only if you belief.
I have been trading this system for over 3 yrs now and it has consistently given profit. It can be used as a scalping method as well as for long term trades. It is not 100%, but you can adapt it as you like...remember, you are the best trader the world is waiting for.
The System
Pair: EURUSD. (I trade mainly eu but I am sure that it work on all pairs)
Chart time frames: 1hr, 4hr and daily charts
Indicator: 24ema applied to close.
Rule: There are only 2 rules to remember.
1. When price is above 24ema (minimum of 20+ pips), and price starts to travel towards 24ema i.e. price is falling towards 24ema, set a buy limit at 24ema with anticipation that there will be a bounce back UP. Vice visa for sell. Target 10+ pips
2. When price is below 24ema and travelling UP towards 24ema, If price close above 24ema, Then open and close above 24ema, set a buy limit at 24ema anticipating a retest of 24ema for the journey UP. Vice visa for sell.
Stop Loss:
The stop loss is derived from rule 2 above.
For Buy: When price close below 24ema, then open and close below 24ema, close the trade.
For Sell: When price close above 24ema, then Open and close above 24ema, close the trade.
Avoid News time.
A picture to illustrate:
[IMG]file:///C:/Users/IBUKUN%7E1/AppData/Local/Temp/moz-screenshot.png[/IMG][IMG]file:///C:/Users/IBUKUN%7E1/AppData/Local/Temp/moz-screenshot-1.png[/IMG]
UPDATE:
Steve have been so kind to write an ea for this method. Pls find attached.
The ea keep watching for the position of the 24ema and based on the distance you choose (bufferpips in the ea property), the limit order will be sent. 20 pips is the default.
pls play around with the toy, but get the real foundation of the method manually first while you try the ea on demo. You are responsible for your own trade, so use responsibly.
UPDATE 2:
Steve updated the EA and added 2 script for us to test it out. Pls read post No: 55 for details but find below Steve's statement:
The two scripts will read the EMA for you and send the appropriate limit order at that price.
So long as you use the same magic numbers for scripts and EA, the EA will then monitor the trade for you and (should) move the trade fill price in line with the ema. Set StopTrading to 'true' and the ea will monitor and manage the existing trade, but not send a fresh one once the trade has closed or been deleted.
The only update to the EA is to display the ticket number of the trade it is monitoring on your screen to confirm that it is working with the correct trade.
Update 3:
Squolou have been very kind to improve this strategy by making a dashboard. Pls find attached the dashboard.
Update 4
Steve has done it again. He has come up with a multi pair trading ea for the bread and butter trades. Pls take it for a test and lets come up with the best optimisation for the robot.
Chk out the detail intrustructions at: http://www.forexfactory.com/showthre...33#post4820733
Cheers.
Attached File(s)
Ibuks 24 EMA Bounce auto trading robot by Steve Hopwood.mq4
60 KB
|
2,146 downloads
|
Uploaded Jul 27, 2011 8:04am
Ibuk's Bread'nButter Dashboard.mq4
11 KB
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3,442 downloads
|
Uploaded Jul 28, 2011 9:03am
Ibuks Bread'nButter multi-pair auto-trader by SteveHopwood.mq4
34 KB
|
1,612 downloads
|
Uploaded Jul 29, 2011 6:14am
Ibuks Bread'nButter multi-pair auto-trader by SteveHopwood V2 -14072011.mq4
46 KB
|
1,726 downloads
|
Uploaded Aug 14, 2011 6:39pm