RR's System

I am in the process of refining and backtesting this system and figured it would be a good opportunity to see if anyone is interested or has any additions or critiques.

It's relatively simple as it is now, and I have tested it this past week on Demo and it did well.

Here's the set-up:

I have only tried this on the 4H and 1H timeframes on EU. It's possible it could work on others.

I am only trading this method on EU.

I am using the 7 and 14 EMAs.

If the 7 is above the 14 EMA, I only go long, and vice versa.

Using long as an example, if price is trending up and I get a bar with a lower close that is in between the 7 and the 14 EMA, I place a buy order.

I have been setting my SL at about twice the distance of the current bars length, but I am testing the result on setting it below the low/high of following bar, which would leave my position unprotected for the duration of that particular time frame.

It's designed to keep the trade with the trend, and is generally not a long term hold. My intent is to have a profit target for each trade with a limit order placed immediately after the position is opened.

There must be significant space between the 7 and 14 EMA for this to be valid. No sideways movement, or entangled "EMA's"

This is it. I would love to get any constructive feedback that anyone has to offer.

Please see attached chart for reference.

I'll update throughout the weeks to come with my results.

Best Regards,

RR

Hi RR, very similar to some other systems, pull back to the MAs and trade off that.

You had 225 views but no posters, thought I'd give you a push.

Thanks for the push Phreddy.

Here's the first opportunity of the week on the 1H EU. I'm in at 3595 with a 10 pip profit target. SL will be set just below the current bar.

Out very quickly for +10 just before it tapped the trend line and briefly reversed.

how do you decide the tp as 10 pips ? is it fixed for H1 or depends on some factors ?

since we dont know the bar low until it closes, the stoploss could be high or low w.r.t the tp. so how do you manage the risk:reward ?

7/14 ema is on close ?

thanks a lot

Hello Roundrock,

I set the TP to 10 pips because that was the closest resistance level at the minor trend line drawn on the previous chart. The stop loss would have been placed after the current bar was closed, just below it. But since the TP was hit before the close of the bar, the actual SL order was never placed.

Regarding risk/reward, I honestly don't give it much thought for this particular method, I just place my limits and stops at the appropriate levels.

Yes, EMA is on close.

Best,

RR

Here's the second occurrance of the week on the 4H EU. This bar closed while I was sleeping, so I missed this one.

whats yr broker time in GMT ?

my charts are not matching with yours. mine is GMT+2

My broker time is GMT +8.

Although I haven't explored this much on the lower TFs, I thought this 15M EU chart was noteworthy. Nice reversals after the close in the middle of the EMAs in both instances.

Entered long at the close of the 1H within the EMAs. SL will be set at the close of the following bar if my target profit is not hit. TP is currently set to +12.

Although not quite the same, this reminds me of this system I used to trade until my eyeballs started falling out of my sockets.

http://www.forexfactory.com/showthre...=221815&page=2

Yes, it's definitely nothing new, but I'm hoping to flush out the quirks and add it as one of my tools, as none of the other entry methods I am using are EMA based. I like the variety.

SL is now set just below the close of the hourly bar. TP remains the same.

TP reached and position closed for +12.

Only one signal today on the 1H about an hour ago, unfortunately I wasn't around to take it, as they are few and far between, but good to have it on record as this progresses.

I'm giving the 15M TF a little test run here. We'll see what happens. SL will be set at the close of the current bar. No TP yet.

Set my stop just above the top of the bar, and am currently out for -13.

Here's the only larger TF opportunity today, I had other positions opened so didn't participate in this, but posting it for the log.

Here's the latest close between the two EMAs on the 1H. I'm short at 3604 with TP at 3550. SL will be determined upon the close of the current 1H bar.