Dear All,
My name is Peter Ramses from Egypt. I have been following the trading systems threads on forex factory for a very long time and I would like to thank everybody who has helped =). I would like to post my system. It isnt really a creation but just an observation and I have been trading it live with amazing results and have not had but minor losses.
I use this method of trading with the USD/CHF and here are the rules:
You will be needing to open two 1hour charts of USD/CHF
In the first one plot:
- 21 Exponential moving average
- Add +5 and -5 levels to the 21 EMA
- 8 Exponential moving average
- Stochastic (14,5,5)
- RSI (21)
- MACD (5,13,1)
In the second one plot:
- 21 Simple moving average
- Add +5 and -5 levels to the 21 SMA
For Long position: The 8 EMA has to cross and go above the +5 level of the 21 EMA in the first chart and in the second chart the 8 EMA has to cross above the +5 level of the 21 SMA, both conditions must be met inorder to take the trade. The green stochastic has to cross above the red stochastic or already be above it and the RSI(21) has to be above the 50 line.
For Short position: The 8 EMA has to cross and go below the -5 level of the 21 EMA in the first chart and in the second chart the 8 EMA has to cross below the -5 level of the 21 SMA, both conditions must be met inorder to take the trade. The red stochastic has to cross above the green stochastic or already be above it and the RSI(21) has to be below the 50 line.
The MACD is there only to warn about divergence. IF in a sell position and the chart gives lower lows and the MACD is giving HIGHER lows, then it is time to beware as this is an indication to the ending of the trend and that a reversal is soon to happen. IF in a buy position and the chart is giving higher highs and the MACD is giving LOWER highs, this is also an indication to the ending of the uptrend and a reversal is soon to happen.
For stop losses I keep it at 20 pips below the 21 EMA for a long position and 20 pips above the 21EMA for a short position.
The profit ranges from 60 pips to a few hundred pips. First I wait for 30 pips then set the stoploss to break even then after 60 pips then I set the stoploss to +30 pips, and every extra thirty pips I move up the stop loss another 30 pips to lock in profit.
I usually risk 3 percent of my account per trade.
This is the system =) and I will be posting my past trades as well as every trading chance I see half an hour before I take the trade.
Looking forward to your responses.
My name is Peter Ramses from Egypt. I have been following the trading systems threads on forex factory for a very long time and I would like to thank everybody who has helped =). I would like to post my system. It isnt really a creation but just an observation and I have been trading it live with amazing results and have not had but minor losses.
I use this method of trading with the USD/CHF and here are the rules:
You will be needing to open two 1hour charts of USD/CHF
In the first one plot:
- 21 Exponential moving average
- Add +5 and -5 levels to the 21 EMA
- 8 Exponential moving average
- Stochastic (14,5,5)
- RSI (21)
- MACD (5,13,1)
In the second one plot:
- 21 Simple moving average
- Add +5 and -5 levels to the 21 SMA
For Long position: The 8 EMA has to cross and go above the +5 level of the 21 EMA in the first chart and in the second chart the 8 EMA has to cross above the +5 level of the 21 SMA, both conditions must be met inorder to take the trade. The green stochastic has to cross above the red stochastic or already be above it and the RSI(21) has to be above the 50 line.
For Short position: The 8 EMA has to cross and go below the -5 level of the 21 EMA in the first chart and in the second chart the 8 EMA has to cross below the -5 level of the 21 SMA, both conditions must be met inorder to take the trade. The red stochastic has to cross above the green stochastic or already be above it and the RSI(21) has to be below the 50 line.
The MACD is there only to warn about divergence. IF in a sell position and the chart gives lower lows and the MACD is giving HIGHER lows, then it is time to beware as this is an indication to the ending of the trend and that a reversal is soon to happen. IF in a buy position and the chart is giving higher highs and the MACD is giving LOWER highs, this is also an indication to the ending of the uptrend and a reversal is soon to happen.
For stop losses I keep it at 20 pips below the 21 EMA for a long position and 20 pips above the 21EMA for a short position.
The profit ranges from 60 pips to a few hundred pips. First I wait for 30 pips then set the stoploss to break even then after 60 pips then I set the stoploss to +30 pips, and every extra thirty pips I move up the stop loss another 30 pips to lock in profit.
I usually risk 3 percent of my account per trade.
This is the system =) and I will be posting my past trades as well as every trading chance I see half an hour before I take the trade.
Looking forward to your responses.
