I'm providing what I think is a very good and simple system as long as you follow it scrupulously. I'm sure you can be successful with it as long as you have good and conservative Money Management and I'm writing also this for myself !
I have already traded it for 2 months (Nov and Dec 2019) with extremely good success (67% and 140+%) which is quite huge I agree, but that was mainly due to the fact that my trades were a bit heavy, I was somehow in "test" mode as I initially wanted to start fresh with this system in January 2020.
Please take note of 2 things:
1. I will trade EURUSD only, I have developed this system for it, please don't pollute the thread with other pairs.
2. I won't discuss MM here, everyone being responsible for the risk he can afford.
I will publish live trades in coming posts and attach an explorer soon so you can see by yourself how this works and what are the results.
Symbol & Time Frame traded
- EURUSD 1H
- Simple Moving Average
100-► 96 Close.
- MyStochRSI (My own Stochastic RSI) for TradingView and MT4, source code provided for both.
- Trend Line as additional confirmation tool
- A Long trade is triggered when the price crosses the MA96 from Below to Above it AND MyStochRSI (MSRSI) crosses the 40 level from Below to Above it. Additional break of the previous trend line is a confirmation that the signal is valid.
- A Short trade is triggered when the price crosses the MA96 from Above to Below it AND MyStochRSI (MSRSI) crosses the 60 level from Above to Below it. Additional break of the previous trend line is a confirmation that the signal is valid.
- You exit the trade either when you are happy with your current profits or on a contrary signal. Also note that MSRSI approaching the 5 or 95 level is a clear signal that an incoming correction is due, so act accordingly.
Now I hear yourself telling, Yeah! That's another MA cross system that lags and which we all know don't work in flat markets. That's true and I won't discuss that fact so I perfectly understand that you leave the thread now and save your precious time.
But, in case you're still there, I think that we can mitigate that by first, being conservative with our orders, and second, reading the chart and getting some clues from MSRSI where I think it can make all the difference.
For the 1st, I follow a simple rule, my lot size is calculated to make me lose 10% of account if the price goes against me by 100 pips and usually I saw that I have plenty of time to exit before that. That means that for 1K account, you enter a trade of 0,1 lot. This also means that I have to make 100 pips to reach my monthly target which is 10% of account but this is personal stuff.
And for the 2nd, I will show in a chart in the next posts how flat market could be possibly traded but keeping in mind that it's anyway difficult to trade those and that sometimes it's simply better to take a loss when you get the 3rd or 4th reverse signal and wait for a better day.
Below is the code source for MyStockRSI if you want to use it on TradingView as I do.
Alternatively, you can download the indicator for MT4 here: https://www.mql5.com/en/market/produ...tab_p_overview
Or download the code source of the one I made here.
//@version=3 study(title="MyStochRSI", shorttitle="MyStochRSI") source = close // Levels on chart OverSoldLevel = 95 OverBoughtLevel = 5 MidLevel = 50 LowMidLevel = 40 HighMidLevel = 60 // Indicator variables lengthRSI = 0 lengthStoch = 0 K = 0 smoothK = 0 smoothD = 0 if interval == 60 lengthRSI := 96 lengthStoch := 96 smoothK := 30 smoothD := 6 else lengthRSI := 150 lengthStoch := 150 smoothK := 6 smoothD := 6 hline(OverSoldLevel, color=blue,linestyle=dashed,linewidth=2) hline(OverBoughtLevel,color=blue,linestyle=dashed,linewidth=2) hline(MidLevel,color=blue) hline(LowMidLevel,color=gray) hline(HighMidLevel,color=gray) rsi = rsi(source, lengthRSI ) k = sma( stoch(rsi, rsi, rsi, lengthStoch ), smoothK ) d = sma( k, smoothD ) plot( d, color=blue, title="d-line",linewidth=2 )
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A Warm Welcome !