Magic 5 is a modified version of the amazing Magic100 trading strategy
This system can be traded on any forex pair and is used on the H1 timeframe
Similar to Magic 100 you need a 100 EMA to help visualize a strong trend. If price is above 100EMA you only take longs, and if price is below 100EMA you only take shorts
You will also need a 5 EMA to help time your entries better
Buy Signal:
1) If a candle is below the 5EMA and not touching the 5EMA use it as an alert
2) If price breaks the high of the alert candle; open a position
3) If price continues down; change the alert to the high of the next lower candle. Alternatively you may maintain the same alert from the first candle
4) You can select any number of trades per day. After 4 alert candle changes, cancel trade
5) Stop loss is fixed at the lowest low of the prior 2 candles and take profit is 1:1
After a lot of recent testing the strike rate seems to be very high. Looking for feedback on money management as well as any ideas for increasing performance. If everyone can test simultaneously we can start to get some data accumulating, which will help fine tune this into a money printer
I currently have a working bot on TradingView, generating signals, entries and exits. I’m still working on it but it’s fully functional.
Here’s some examples of entries without the 100EMA coded in yet. However, I added vertical lines on the true filtered entries. These examples are at 1:1.5 RR but it’s better to start at a 1:1 until you can learn to identify better trends.
This system can be traded on any forex pair and is used on the H1 timeframe
Similar to Magic 100 you need a 100 EMA to help visualize a strong trend. If price is above 100EMA you only take longs, and if price is below 100EMA you only take shorts
You will also need a 5 EMA to help time your entries better
Buy Signal:
1) If a candle is below the 5EMA and not touching the 5EMA use it as an alert
2) If price breaks the high of the alert candle; open a position
3) If price continues down; change the alert to the high of the next lower candle. Alternatively you may maintain the same alert from the first candle
4) You can select any number of trades per day. After 4 alert candle changes, cancel trade
5) Stop loss is fixed at the lowest low of the prior 2 candles and take profit is 1:1
After a lot of recent testing the strike rate seems to be very high. Looking for feedback on money management as well as any ideas for increasing performance. If everyone can test simultaneously we can start to get some data accumulating, which will help fine tune this into a money printer
I currently have a working bot on TradingView, generating signals, entries and exits. I’m still working on it but it’s fully functional.
Here’s some examples of entries without the 100EMA coded in yet. However, I added vertical lines on the true filtered entries. These examples are at 1:1.5 RR but it’s better to start at a 1:1 until you can learn to identify better trends.
Attached Image (click to enlarge)
