Priscan System | Forex Factory

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Priscan System

  • #1
  • First Post: Oct 12, 2006 8:14pm Oct 12, 2006 8:14pm
Well let me introduce myself being i'm new here...my names Greg and i've been tradeing forex live for about 3 years now, and have always reffered to FF for answers to the many questions I had during my learning experience, and now that i've finished a year in profit I felt like I should give back a bit and share my strategy. Now i'm not sure if this is origonal, but I call it Priscan, so if it has another name just let me know. It is very simple, brings in an average of 200 pips a month (sometimes more sometimes less), and is a great way for novice traders to bring in an income. I use either 1:1 leverage or 2:1 (if i'm confident) leverage being it has "low risk" level..It works best on basically any DAILY. Here it goes...

First you set up WMA 4, WMA 15, and WMA 40...
now when the 40 crosses with the 4 you open your position, and when the 40 crosses the 15 you close it. (Example Below)

http://img.photobucket.com/albums/v2...tx41/FFEX1.jpg

Now i'm sure your all saying "but I miss the entire trend that way!" Just hold tight, i'll get to that =]. Now some things you should watch out for when using this are...

EXTENSIVELY LARGE CANDLES - NEVER open a position, or close it when you encounter one of these, even if it triggers your MA's. (They will generally lead to morning stars/evening stars.)
3 BLACK CROWS/3 ADVANCING WHITE SOLDIERS-If you are unfamiliar with candle formations, this is when 3 substantially sized candles follow each other simultaniousley in either direction. This indicates you to automatically close your position if you are entered in one, or not to open one if it is indicated.
15/4 CROSS- Never open a position if the 15 and 4 ma's haven't crossed before the 4-40 cross

Now..catching large trends...I'm going to tell you right now, you won't get them all, but the large ones you will. If you see the MA's consolidate and all cross at the same time, or relatively close to each other in the same (DECENTLEY SMALL) candle, then you hold your position until the 15 CROSSES THE 4. I'll give an example of this below.
http://img.photobucket.com/albums/v2...tx41/FFEX2.jpg

Well thats about it..constructive critiscism/questions are more then welcome...Please feel free to share this strategy with others, but please give credit where it is due. Good luck traders.
  • #2
  • Oct 12, 2006 8:19pm Oct 12, 2006 8:19pm
Thanks for sharing!!
Trade what you see - Not what you think
  • #3
  • Oct 12, 2006 8:31pm Oct 12, 2006 8:31pm
mestx41.. ur a good man !!
BECAUSE I CAN !
  • #4
  • Oct 12, 2006 8:37pm Oct 12, 2006 8:37pm
Very very nice TX a bunch Looks real good
  • #5
  • Oct 12, 2006 8:58pm Oct 12, 2006 8:58pm
Do you have stop losses set? If so, what is your percentage for t/p vs. s/l hits? BTW, thanks... I've already started back-testing.
  • #6
  • Oct 12, 2006 9:04pm Oct 12, 2006 9:04pm
Quoting brick911
Do you have stop losses set? If so, what is your percentage for t/p vs. s/l hits? BTW, thanks... I've already started back-testing.
Great question thanks for asking!..Now you get a great surprise..there are no stop losses! Now your probably saying that sounds like maddness but theres just no need for them...giving its "low risk" level you just go out on the cross...in the event you enter into a losing trade (means the 4-15 never crossed) Just exit when the 4-40 crosses again (you'll loose but it will NEVER be that much..about 1/4 of your normal profit..trust me loss of money isn't somthing you should be worrying about with a conservative system like this..be more concerned with maximizing profits. But anyway, after you exit on that cross, don't open a trade in the opposite direction because the 4-15 has not crossed yet...when the 4-15 crossed you may trade on the next 4-40 cross...Happy Tradeing!
  • #7
  • Oct 12, 2006 9:12pm Oct 12, 2006 9:12pm
Thanks again. A few more questions if I may...

1. Have you tried any different time scales? or do you think that raises the risk?
2. It looks like you are getting somewhat large gains on these individual trades. Is it safe to assume you only close a few of these per month... if that?
3. Is this purely a technical system? Do you not concern yourself with fundamentals of any kind?

...eagerly waiting.
  • #8
  • Oct 12, 2006 9:14pm Oct 12, 2006 9:14pm
Quoting mestx41
Great question thanks for asking!..Now you get a great surprise..there are no stop losses! Now your probably saying that sounds like maddness but theres just no need for them...giving its "low risk" level you just go out on the cross...in the event you enter into a losing trade (means the 4-15 never crossed) Just exit when the 4-40 crosses again (you'll loose but it will NEVER be that much..about 1/4 of your normal profit..trust me loss of money isn't somthing you should be worrying about with a conservative system like this..be more concerned with maximizing profits. But anyway, after you exit on that cross, don't open a trade in the opposite direction because the 4-15 has not crossed yet...when the 4-15 crossed you may trade on the next 4-40 cross...Happy Tradeing!
so everytime you open a trade, do you pray that the world would be a stable place until you close that position. come on bro, one false nuke test from korea or a terror plot in europe would send the market in a haywire, and your account to dust. A large stop loss is better than no stop loss at all.

remember, market crash will always surprise you.
  • #9
  • Oct 12, 2006 9:39pm Oct 12, 2006 9:39pm
Quoting brick911
Thanks again. A few more questions if I may...

1. Have you tried any different time scales? or do you think that raises the risk?
2. It looks like you are getting somewhat large gains on these individual trades. Is it safe to assume you only close a few of these per month... if that?
3. Is this purely a technical system? Do you not concern yourself with fundamentals of any kind?

...eagerly waiting.
1) Yes and daily is really the way to go, not only is there more risk. the rewards are practically nothing.
2)Well...it depends how long they last, if their small you may get like 5 in a month, but if you catch a trend, you will only get one in a month, but your profit will be huge...the longer your in a trade, the more profitable it becomes.
3) Yes and now...the analysis is purley technical but look at my response to the next post, and you will understand.
  • #10
  • Oct 12, 2006 9:43pm Oct 12, 2006 9:43pm
Quoting hilmy83
so everytime you open a trade, do you pray that the world would be a stable place until you close that position. come on bro, one false nuke test from korea or a terror plot in europe would send the market in a haywire, and your account to dust. A large stop loss is better than no stop loss at all.

remember, market crash will always surprise you.
Someone diddn't read carefully ;]...jk good question...if you look at my "things to watch out for" section of the article, you will see that I posted --Extensively large candles-dont open a position after them, and if they signal an unprofitable close in your trade then don't close it, simply disregard it and continue the trade until another, hopefully profitable, close is triggered. This actually occured just the other day with the nuke test..It triggered a close in my GBP/USD trade, yet look at the pair now, im immensley in profit. Also just to make sure were on the same page...when major news events occur, they cause huge ups/downs meaning..extensively large candles.
  • #11
  • Oct 12, 2006 10:02pm Oct 12, 2006 10:02pm
Do you use this strategy on any pair that gives you the opportunity, or do you concentrate on certain pairs?

Also, tell me if I have this right. I'm currently looking at the AUD/USD. It looks like it may cross very soon. The 4WMA crossed through the 15 at a steep angle and is targeting the 40. I'm gonna keep my eye on this tomorrow to see if it triggers a trade going long. However, I wouldn't take this trade due to the large candle leading up to it. Do you agree?
  • #12
  • Oct 12, 2006 10:08pm Oct 12, 2006 10:08pm
How about the EUR/CAD. It looks as though they all crossed in the same area on the 10th. Would that trigger you to go long but wait for the 4WMA to cross the 15?

Thanks for all your responses.
  • #13
  • Oct 12, 2006 10:16pm Oct 12, 2006 10:16pm
what makes you choose WMA? not EMA?
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  • #14
  • Oct 12, 2006 10:37pm Oct 12, 2006 10:37pm
Quoting brick911
Do you use this strategy on any pair that gives you the opportunity, or do you concentrate on certain pairs?

Also, tell me if I have this right. I'm currently looking at the AUD/USD. It looks like it may cross very soon. The 4WMA crossed through the 15 at a steep angle and is targeting the 40. I'm gonna keep my eye on this tomorrow to see if it triggers a trade going long. However, I wouldn't take this trade due to the large candle leading up to it. Do you agree?
Hm this is a tough one to choose...although...its 11:43 right now, and in about 15 minutes that candle will be closing without a 4-40 crossover (the one that triggers you to open a position) and the previous candle holds a 15-4 cross, so I think i'm going to take this one...that is if the next candle is small and in the upwords direction, otherwise it would represent a possible evening star. So my answer is that I will take the trade if the candle tommorow closes in the upword direction, and is small...otherwise I won't risk it.
  • #15
  • Oct 12, 2006 11:24pm Oct 12, 2006 11:24pm
Greg, What pairs are your favorites?

This looks similar to the "25" system in some ways. Thanks for presenting it here. I like how you deal with exits.
Don Life is expensive, but includes a free trip around the sun.
  • #16
  • Oct 13, 2006 5:36am Oct 13, 2006 5:36am
I am still newbie and would like to make something clear for me:

1) When WMA40 croses WMA4 from top means sell and if it crosses is from bottom means buy?

2) Is it applicable on 5min daily charts or daily should be timescale resolution?
  • #17
  • Oct 13, 2006 10:40am Oct 13, 2006 10:40am
Quoting lubzdr
I am still newbie and would like to make something clear for me:

1) When WMA40 croses WMA4 from top means sell and if it crosses is from bottom means buy?

2) Is it applicable on 5min daily charts or daily should be timescale resolution?
1) Just do the opposite of whatever the trend just was. (If you just got out of a down-trend go up...thats the simple way, but if you still wanna know you sell when the 40 crosses on top of the 4, and buy when it does the opposite.

2) Stick to dailies.
  • #18
  • Oct 13, 2006 11:12am Oct 13, 2006 11:12am
I just closed this trade last night at 12 am when the new candle opened...it was on eur/aud...I used 1:1 leverage and saw an 89 pip gain (7 pip spread included)...the trade wen't on for 3 days...also if you guys wan't i'll start posting some trades as I make them after this weekend. Also a little tip...I use alertfx to let me know when these crosses occur so I dont have to watch like 20 charts constantly!

http://img.photobucket.com/albums/v2...r-audtrade.jpg
  • #19
  • Oct 13, 2006 11:54am Oct 13, 2006 11:54am
Quoting traderone
Greg, What pairs are your favorites?

This looks similar to the "25" system in some ways. Thanks for presenting it here. I like how you deal with exits.
I can't believe I left this out!...I trade all pairs on the daily level EXCEPT the EUR/JPY, EUR/USD, USD/JPY. They just dont work! =\
  • #20
  • Oct 13, 2006 12:02pm Oct 13, 2006 12:02pm
Quoting mestx41
I can't believe I left this out!...I trade all pairs on the daily level EXCEPT the EUR/JPY, EUR/USD, USD/JPY. They just dont work! =\
How long did you monitor these pairs before coming to that conclusion? It seems strange that this approach works with so many other pairs and then fails with those.
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