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EMA 25-50 Trading System (Detailed)

  • #341
  • Sep 22, 2007 8:50am Sep 22, 2007 8:50am
Quoting effilang
I appreciate your gratitude supersenger, it warms my heart.

You're right that in a discretional system backtesting won't do it justice.
If anyone is put down by ilcapocamorr's first and negative post, do the following.

Take 8 or 6 Pairs. Back test or Forward test 2550 on the Daily Chart.
Average the income from all pairs on a per monthly basis.

Heck with 2550 trades on the daily chart we are floating at about:

+200 on NZD/USD
+400 on EUR/USD
+300 on USD/CHF
+330 on AUD/USD
+584 on USD/CAD

Thats about 1814 PIPs floating on Daily 2550 signals whos stop losses haven't been hit and this is in less than 1 trading month.

Consider how easy it is to trade. Your signal is issued on the Daily chart, there is nothing to think about, no TA to do, you just enter and set your SL.

Now just imagine trading not 5 pairs like in the above factual relation, but 8 or 10 or 20 pairs like some of my students do on the daily chart where signals are the strongest. You would be making crazy money every month and would only need about 1 hour a day to manage all the trades.

Even if the signal is False! - you're still in the money all you need to do is manage the position. I don't pretend to say that this is the Holy Grail, BUT, each trade entry gives you the opportunity to catch good price movement, more so on the daily chart. NOW, how you ACTUALLY manage the trade when you are up 50 or 100 or 500 Pips relies entirely on how successful of a conversation you can have with Mr. Greed Houlscrou Yu - the outcome of that is what generally titles your trade as a looser or a winner.

Thank me later.

Regards,
E. Lang


Hi Effi (without "e" at the end!),
Your system continues to impress me. The results that you just posted, using only the dailies are great. Did you get those results using your 25-50 system exclusively?

Now, here I am abusing of your generosity. Would you mind delivering signals for the daily? There are some of us who are 9 - 5 slaves and can only have 1 hour to look at the charts.
  • #342
  • Sep 22, 2007 10:48am Sep 22, 2007 10:48am
Hi Effi et al,

Firstly let me say thank you for your contribution to the forum and for helping out many new traders.

I have a question about your system. Your entry rules are based on a close of a bar/candle above the 50 EMA and the RSI at or >50 for a long, below the 50 EMA and the RSI at or <50 for a short.

I am wondering if the RSI is the right indicator for the job. Based on my experiences and past testing, it seems as if the RSI is always at or <>50 when price closes above or below the 50 EMA.

I have included a screen shot that shows an example of how this happens even in periods of consolidation.

So I wonder based on this criteria and example is the RSI even needed since it does not seem to be filtering anything out?

Please do not take this post the wrong way I am not attempting to disprove your system and its validity, I am only trying to find a way to keep the charts clean and maybe enhance the system in some way.

Best regards,

Steve
Attached Image
Nothing is impossible, with a willing mind!
  • #343
  • Edited 1:03pm Sep 22, 2007 12:12pm | Edited 1:03pm
oghe-hlate - thank you, i hope you benefit from it.

alcastro - yes those are 2550 results EXCLUSIVELY, check the daily charts. I pretty much start trading around 17:00 EST / 00:00 GMT + 2, so i have nothing against posting Daily 2550 signals for the time being.

Trader_V - i appreciate your attention to detail. If it weren't for that being one of my stubborn qualities, i would never have created so many systems nor found the ambition to continue optimizing and making yet more accurate trading methods.

I understand and accept the regular inaccuracy of RSI and welcome any ideas on ways to improve this for the better. For the time being though, it is what i know to work best.

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #344
  • Sep 22, 2007 2:51pm Sep 22, 2007 2:51pm
I have tried and tried to figure out how this entry crossed any of the 50ema's on the open... and gosh darn I just can't figure it out Effi. Any chance that this trade also meets the critieria of the "other" unpublished system? Otherwise a simple chart illustrating it will alleviate my utter confusion about this entry signal. I definitely checked the other time frames for this date and time .... and I'm sorry but just don't see the signal.

Thanks so much in advance. Live from piptopia,

Joe


Quoting effilang

GBP/JPY BUY - 230.42

Issued: 20.09 | 10:09 PM (GMT)


Entry: 230.42
SL: 229.25


Floating: +245 +133 PIPS


I'm gonna have to go out soon so i wont be able to baby sit this trade anymore. I've moved my S/L to B/E and i've set a target of 233.50


Regards,

E. Lang

  • #345
  • Sep 22, 2007 3:02pm Sep 22, 2007 3:02pm
Hello JSManuse,

Sorry for the confusion.

This was a bonus signal, not 2550 related.

The last 2550 signal that was issued was NZD/USD Long.

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #346
  • Sep 22, 2007 4:42pm Sep 22, 2007 4:42pm
thx man for ur signals and ur system in trading
but i think the signals u gave us not from 2550 only , right ?
can u tell us about the other system u use
and thx 4 every thing
  • #347
  • Sep 22, 2007 5:40pm Sep 22, 2007 5:40pm
Thank you.

No the signals are not 25|50, but i do not discuss the others here, due to forum restrictions.

You are welcome to use the CONTACT ME link in my signature if you have any additional questions.

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #348
  • Sep 22, 2007 5:56pm Sep 22, 2007 5:56pm
Hi Effi,

On some of your chats you use 14,3,3, stoch and others 5,3,3. Is there any reason for this?

What do you do about the Sunday candle or is it ok.

I use IBFX and my new daily candle starts at 8.00 pm est. Is that ok also?

Thanks

Billser
It's All About Attitude ...
  • #349
  • Sep 22, 2007 6:13pm Sep 22, 2007 6:13pm
Quoting Billser
Hi Effi,

On some of your chats you use 14,3,3, stoch and others 5,3,3. Is there any reason for this?

What do you do about the Sunday candle or is it ok.

I use IBFX and my new daily candle starts at 8.00 pm est. Is that ok also?

Thanks

Billser
I beat the crack out of the Sunday candle and rob it for all it's pips and leave no trails

14,3,3 is for another system i teach.

I trade with 3 Systems, you are already familiar with 25|50, which is the slowest and least yielding of them. I trade it on the Daily chart and sometimes H4.

The 2nd is traded on the Daily Chart and the last is traded on H1 and H4.
This is all my knowledge and trading experience crammed into the dumbest looking of systems. They are all dead simple to use and do not require Technical Analysis other than drawing S/R on the H4/Daily chart every full moon... not literally of course, i'm just expressing the extent of the interval so you can get an idea of the laid back trading style.

My students are tutored all of these in detail.

As for your daily candle. I can't comment about whether its ok, i have no idea. My broker FXSOL opens at 17:00 EST, which is 00:00 and is perfect for me, cuz thats when most of my signals are issued; i'm just lucky, well i like to think so anyway

Just to make this clear, so i don't have to answer anymore of the first question.
IF a signal i issue (trade it at your own risk) is titled "BONUS"; it is not 2550 related.

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #350
  • Sep 22, 2007 7:03pm Sep 22, 2007 7:03pm
I wonder if some of you might throw this on your charts and confirm that everything is in order. It is a BETA version of an indicator that will calculate your stops, long or short, at 3 different multiples of the ATR that you select.

The reason i made it is to preserve screen real estate. The only ATR figure you need is the current figure so you don't need the whole chart imo.

Thanks in advance.

Gandy

PS. Remember... this is a BETA... and even if it wasn't i can't guarantee its accuracy.
Attached File(s)
File Type: mq4 ATR Stop.mq4   4 KB | 906 downloads
  • #351
  • Sep 23, 2007 12:32am Sep 23, 2007 12:32am
all if you care, my backtesting was wrong i wrote a macro and it calculated incorrectly, will get back to you later...
  • #352
  • Sep 23, 2007 8:18am Sep 23, 2007 8:18am
Thats cool dude.

I've posted a request to see if anyone is willing to make an EA on the Forex|MT4 EA dev. forums.

Hope someone will be kind enough, if not i'll just have to put a price tag on it. Somebody will be bound to make it then.

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #353
  • Sep 23, 2007 8:48am Sep 23, 2007 8:48am
http://img178.imageshack.us/img178/662/entryfg6.jpg


"What do we do in this case?
open & close below ema 50, rsi is good... do we wait for a bearish candle or do we enter on the candle with the arrow?
Or maybe we enter on the candle before the red arrow (the big bearish candle)?"
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #354
  • Sep 23, 2007 8:49am Sep 23, 2007 8:49am
Hello ******,

Your 2550-S Entry would have been at the candle before the arrow red signified bull candle.

In other words your entry is at the close of the candle below 50 EMA (Candle being pointed at with the yellow/green arrow)

Best Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #355
  • Sep 23, 2007 9:51am Sep 23, 2007 9:51am
Hi Everyone,
Hi Effi,

Yes, I would enter on the yellow candle too. With the SL settings, the bull candle will not cut my loss. In so doing, the trade will go with the bearish ride.

However, I would have lost on another sell entry on the bear candle (about 6 vertical lines after - I thinks it's Mar28) because it makes a reversal and continued with the up trend. It broke the 50EMA and then the upward 25EMA while the RSI is below 50 already, and yet, continued on the uptrend. Is there a way to avoid this false signal?

Thanks and best regards,
REY
  • #356
  • Sep 23, 2007 9:57am Sep 23, 2007 9:57am
Quoting effilang

This one is for you my Aussie Dollar lovin buddy.


AUD/USD SHORT (H4/H1 Bonus)
ENTRY: 0.8644
SL: 0.8720


Hi Effi,
I lost on the above trade. I had to stop it due to the weekend. Minimal though.

I posted the AUDUSD question just to clear things up on the uptrend. At least, know what to do. I guess, patience is the right answer like you have said. Nonetheless, my focus right now is on the GBPUSD pair. I am looking at EURJPY, EURUSD, and USDJPY as well and prioritizing it respectively.

So, I will just keep on waiting for a bonus signal from you for GBPUSD. And the others as well.

Best regards,
REY
  • #357
  • Edited 10:41am Sep 23, 2007 10:30am | Edited 10:41am
These are the results for 2550 for GBP/USD since September 2005.
Hand traded using the systems strict SL and ENTRY/EXIT criteria.

280
-160
470
655
-95
-109
678
267
308
481
305
-42
-36
-48
262
-54
-91
164
176
-121
-85
1535
-70
146
180
-150
-173
-180
-90
711
154
-140
200
142
-72
270
-52
-57
389
-43
899
167
467
87
-124
100
-190
256
512
-43
-48
-72
100
-111
140
150
800
-119


59 Trades
27 Loosers
32 Winners
Average trades per month. ~2.3 thats about, 23 trades a month on 10 pairs or a trade a day. These are just rough numbers, but have been correlated well.

Pips Gained: +11451
Pips Lost: -2575

Total: 8876
8876 / 24 Months = 370 Pips a Month on one pair.

Considering that it only takes about 10 mins to manage a trade every day, you could easily manage 10 pairs for about 2 hours a day and income anything about 3000 Pips averaged monthly just trading this.

It is the sloppiest of the 3 systems i trade and teach, because it misses out on over 50% of the move, but everything has its price.

If you wanna trade once a day for 2 hours, you'll make less, but its still good money.

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #358
  • Sep 23, 2007 10:57am Sep 23, 2007 10:57am
Just in case anyone got discouraged by the statistics of 3000 PIPS a month with 10 Pairs, at 1 trade a day considering how much i've made in the past 13 days on here I'd like to let you know that once folks go through with me, they'll know how to catch that missing 50% that is left out of the movement, so losses are literally halved, which is basically how i manage to gain so much in such a small time.

Chew on that for a while. :

Regards,
E. Lang
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #359
  • Sep 23, 2007 11:44am Sep 23, 2007 11:44am
Well.. is this market thing gonna open up or what already
"One Grows Tall After Walking Through A Forest Of Tall Trees."
  • #360
  • Sep 23, 2007 12:43pm Sep 23, 2007 12:43pm
You ready for the starters gun Effi?
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