Edźwin's M15 system - proverbial construction of flail :)

Hi everyone
I'd like to share concept of my system, the idea of it came upon me few days ago so it is in its infancy and questions like how long do I play this sys? or what is the success ratio? will remain without answer at least for now.
In Poland for few days temperature is above 30 degrees Celcius, these conditions are probably good for naked trading but not so good for thinking, so if you consider this idea to be complete nonsense, put the blame on my sun-stroke

Ingredients:
- m15
- two white long lines
- sma5

Recipe:
First line we draw at 9:00 (start of London session), the second one at 15:30 (start of NY session), we wait for candle close and draw white long line between its high and low. When the price goes above white line we may have setup to play longs, when the price goes under white line we may have setup to play shorts.
We have valid signal to play when a gap appears between two follow candles and white long line. If the gap consists only of one candle and candles touch or cross white line or the candles direction don't match current trend and sma5 doesn't change side, then signal is false. After the gap appearance we wait for pullback to sma5 and then open a position.
We have next signal on the same side of white line when candle's open and close are above/under sma5 due to trend so we wait for gap only when price is changing sides in relation to white line.
Once we draw the second line at 15:30 we forget about the first one.

http://img37.imageshack.us/img37/228...yjasnienie.png

Dacyt jak mawia Lubaszenko

Hello again
It's time for my next author's idea (I won't create new thread because of the low intrest in my first concept). As previous one, it isn't based on any idicator or other satan's instruments because I'm a confirmed follower of simplicity combined with effectivness. For me, systems with hundreds of rules to obey give us only more and more occassions to commit mistakes. Okey so much for the introduction, let's go to the point.

White broken line is sma5.
Be careful near round numbers and be aware of S/R levels from higher tfs.
TP: 15 pips (if market is ranging it's good to reduce TP to 10 pips, tp must be executed manually, thanks to that from time to time we can get more than 15 pips because of sudden market moves)
SL: 30 pips (so high sl can give us effectivness above 80% and what is more most of bad trades is closed below 15 pips).
Any comments and suggestions will be appreciated

http://img805.imageshack.us/img805/9494/seedycja2.png
http://img267.imageshack.us/img267/8059/se2edycja2.png
http://img84.imageshack.us/img84/5006/se3edycja2.png

Dacyt, greetings from Poland

Greetings Edzwin,

My initial reaction after reading your first posting:

Another breakout strategy on FF

BUT...

The two candle gap theory is interesting, can you please elaborate on that!

Hi to Poland

Which pairs have you tried this with? I assume because you're taking into account the London & NY opens, it must be for the EUR and GBP crosses.

Thanks for sharing a simple system. Simple is best.

Countex there is nothing to elaborate on, rule is simple: between two following candles and horizontal line must appear a gap. Correct me if I'm wrong but it probably won't work on higher tfs or on other sort of breakouts. From higher tfs I take only S/R levels and rest of my attention is focused on m15. This tf is perfect for me, gives me a few signals a day so I don't have to wait for entry too long and at the same time is high enough to let me minimise broker's influence on my game.

Just for the record, system I've described in the second post of this thread isn't part of the system from the first post, yet both ideas can be connected if someone likes.
I play only on "Edek" which stands for EUR/USD, from 8:30 to 18:00 (GMT +2:00).

Stop-loss shouldn't exceed 30 pips.
Stop-loss can be placed on a few different levels, everything depends on the risk one want to take:
1. above/below the sma5,
2. above/below the first candle the move starts from,
3. above/below the second candle,
4. above/below entry candle,
5. above/below the last high/low,
according to trend.

http://img8.imageshack.us/img8/245/s...nastoploss.png

http://img227.imageshack.us/img227/2...endingorde.png

Interesting concept. Does the first candle have to close above/below the sma 5?

We need the first candle's high/low to be above/below the sma5.

Thanks. I'll be following along.

I don't understand.

London opens at 0700 GMT.
New York opens at 1200 GMT.

Where do you get the times you give in your instructions?

I meant opening hours of London and NY stock exchange (GMT +2:00).

As I've metioned before, be careful near round numbers and be aware of sr levels from higher tfs and from m15 mainly when market is ranging. You can also add fibs and pivots to your chart certainly it won't hurt simplicity of this system.

http://img708.imageshack.us/img708/4...alsesignal.png