This thread is influenced by the BK8 system. Link. But it is different and also the way I handle the thread is different. The OP BK8 wished that the thread was fully about his system. Many OP's does it that way. I fully respect that, because I have seen so many threads been "hijacked" by people talking totally different systems. But if you request a very strict line, then there are good ideas that are missed. Therefore - in this thread we discus the BMA system which I present below. But it is very welcome to try all timeframes, using it in a different way and bring in confluencing indicators. The purpose is, to make a system giving a nice profit. Just remember what the basis is.
Of cause if anybody tries to Hijack the thread - you are kicked out. Same if people cannot behave. And I mean it and will do.
When the thread was started, we used SMA5. But it gives a lot of signals which are no good. Therefore the strategy now uses only EMA50. The thing about EMA50 is, that it is the trend (other values can be used). So using this strategy you find the BOUNCES from the trend and this is really what matters and what this strategy is about.
In this system there are 3 indicators who are all mandatory.
- EMA50 - The trendline.
- Stochastic Variable at 14.3.3.
I normally use daily. The most stabile. But if someone want to try it on different timeframes - you are very welcome. Let us hear about your results.
But - I have recently started a PROP account and want 1 trade every day. That is not likely at the daily, so I use M30 for that. It is going well.
I use the 28 normal FOREX pairs. PLEASE note that this is FOREX Factory and that is what we are trading. You can of cause trade whatever you like, but we only refer to FOREX in this thread.
Strategy - BUY trades. Short trades are opposite.
- Price reached the low Bollinger border and is now going up.
- Last bar closed above EMA50. If the the bar is a little short, then wait for then next bar to give confirmation.
- Stoploss (SL) at the Bollinger band or the last swing low.
When is it not working.
- EMA50 Must be crossed within 3 - 5 bars after crossing over the Bollinger side band. Otherwise find another trade.
- In ranging environments (unless you are very experienced). A nice strong trend is necessary.
Exit is not part of this strategy. Let us hear how you does that.
My charts have black background because I am working a lot during night times.
The Robot BolloingerMA_5
Watch post#84 for the latest version. The robot does not trade for you, but it gives you the signals.
OP has reserved the first 9 post's for further explanations and examples.
Update: This was not a good idea. Strategy change of cause as we work with it, that is the point of this thread. But now I am not allowed to edit these post from 2 to 9 - neither am I allowed to deleted any posts.
So please be adviced, that even if I still think that the texts are relevant then some of it is no longer part of this strategy. Sorry for the confusion.