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I had developed this system for sometime. It is base on H4 time frame.
For start let make it short. If anyone interested with it I only write more. As my English suck so I make it into point form and graphically for easy understanding. Hope there are no typo. : )
Time frame: H4
Pair: GBPJPY (This pair perform well.)
Indicator: RSI (3), RSI (4), MACD (7, 13, 1)
Buy Enter:
- RSI (3) and RSI (4) to cross above 50.
- MACD (7, 13, 1) has to be in green color.
- After 3 signal confirmed, the next bar start we put 3 pending buy orders.
3 pending trade:
1.Entry = High + 16pips + Spread, TP = 50, SL (Pls read Stop Loss written below.)
2.Entry = High + 16pips + Spread, TP = 100, SL (Pls read Stop Loss written below.)
3.Entry = High + 16pips + Spread, TP = freely until the SL hit, SL (Pls read Stop Loss written below.)
For non GJ your TP will need to change as below:
TP1 = 15
Tp2 = 30
TP3 = freely
http://i573.photobucket.com/albums/s...1May281550.gif
Sell Enter:
- RSI (3) and RSI (4) to cross below 50.
- MACD (7, 13, 1) has to be in red color.
- After 3 signal confirmed, the next bar start we put 3 pending sell orders.
3 pending trade:
1.Entry = High - 16pips - Spread, TP = 50, SL (Pls read Stop Loss written below.)
2.Entry = High - 16pips - Spread, TP = 100, SL (Pls read Stop Loss written below.)
3.Entry = High - 16pips - Spread, TP = freely until the SL hit, SL (Pls read Stop Loss written below.)
For non GJ your TP will need to change as below:
TP1 = 15
Tp2 = 30
TP3 = freely
http://i573.photobucket.com/albums/s...2May281550.gif
Stop Loss (SL):
Case1: Set at the opposite entry.
Case2: If the H4 bar achieves > 150 pips profit, at the close of that H4 bar set our SL to 50 pips.
http://i573.photobucket.com/albums/s...3May281551.gif
SL Case1 + SL Case2: Let look at the High1 for pending buy order.
Buy entry = 128.12 (High1) + 16 pips + 7 pips (spread) = 128.35
SL = 126.71 (Low1) – 16 pips – 0 (Spread) = 126.55
High2 – Entry = 129.50 - 128.35 = 115 pips
Trade1 (T1) TP = 50
Trade2 (T2) TP = 100
Trade3 (T3) TP = not yet hit cos it hasn’t hit our SL, SL = 126.55
So T3 continue running. Until SL rules apply.
Sell entry = New SL (Base on Case1)
So a Pending sell order and new SL for T3. Open until it close. For this case it move up to High3. SL case2 rules apply.
New SL = 50 pips (Base on case2, 130.66 (High3) – 128.35 (Entry) = 231).
Let it run until new SL rules apply. In this case it close at our SL.
T1 TP = 50
T2 TP = 100
T3 TP = 50
Total profit = 50 + 100 + 50 = 200 pips
Case3:
- RSI (3) form a new low above 50 for buy.
- RSI (3) form a new high below 50 for sell.
http://i573.photobucket.com/albums/s...4May281551.gif
Case3.b: This pic show sell order with SL case3
Sell entry =138.18 (L1) - 16 pips - 0 pips (spread) = 138.02
SL = buy entry = 139.29(H1) + 16 pips + 7 pips (Spread) = 139.52
Entry – L2 = 138.02 – 136.00 = 202
16 pips + 7 spread = 23 pips
Trade1 (T1) TP = 50
Trade2 (T2) TP = 100
Trade3 (T3) TP = not yet hit cos it hasn’t hit our SL, SL = 139.52
SL progress
139.52 (Case1)
-> 138.02(Entry) – 50 pips = 137.52 (Case2)
-> 137.01(L2) + 23 pips = 137.24 (Case3)
-> 136.89(L3) + 23 pips = 137.12 (Case3)
-> 136.23 (L4)+ 23 pips = 136.46 (Case3)
-> 136.09 (L5) + 23 pips = 136.32 (Case3)
-> 135.22 (L6) + 23 pips = 135.45 (Case3)
Trade1 (T1) TP = 50
Trade2 (T2) TP = 100
Trade3 (T3) TP = 138.02 – 135.45 = 257
Total profit = 50 +100 +257 = 407
Case4:
- RSI (3) move below 50 for buy.
- RSI (3) move above 50 for sell.
http://i573.photobucket.com/albums/s...5May281551.gif
Case4.a: This pic show sell order with SL case4
Buy entry =130.50 (H1) + 16 pips + 7 pips (spread) = 130.73
SL = For this case we don’t have SL at start cos previous sell had close. So we don’t set SL until SL rules apply. RSI (3) below 50 apply after our buy entry signal. So we will use that as a SL. SL = L1 – 16 pips = 128.92
Entry – H2 = 130.73 – 133.26 = 253
SL progress
128.92 ->
-> 130.73 (Entry) + 50 pips = 131.23(Case2)
-> 132.09 (L2) – 16 pips = 131.93 (Case4)
Trade1 (T1) TP = 50
Trade2 (T2) TP = 100
Trade3 (T3) TP = 130.73 – 131.93 = 120
Total profit = 50 +100 +120 = 270
*** No trade when MACD(7, 13, 1) < 30 Or >-30.
BE whenever in profit.
Example:
1. 01 Jun 09 GBYJPY Buy order. (390 pips)
Part 2
Part 4
2. 02 Jun 09 GBYJPY Sell order. (88 pips)