KAS37 Trading System

I have been trading with success, my own trading system, called KAS37, my favourite number (3 and 7), and would like to share it with the world.

Hope every Forex Trader would benefit from it.

Words of common advice - try it in demo account first, get the feel.

Setup :

1) Bollinger Band (BB), 20,0,2 - Default.
2) RSI 3 and RSI 7
3) Stochastic 7,3,3
4) Simple Moving Average, SMA 3 and SMA7
5) Pair - GBPJPY, 5 Min Chart. (the rest of the other pair, I wouldn't guarantee of success)

ENTRY RULES:

1) BUY ENTRY

a) Stoch cross up from below 20 (or less than 30)
b) RSI 3 and RSI 7 cross up from below 30.
c) SMA 3 and SMA 7, cross up between Lower BB and Mid BB.

2) SELL ENTRY

a) Stoch cross down from above 80 (or greater than 70)
b) RSI 3 and RSI 7 cross down from above 70.
c) SMA 3 and SMA 7, cross down between Upper BB and Mid BB (FOR SELL ENTRY, THIS does not matter , ie the cross between the Upper BB and Mid BB- added 090208, 100208)

3) STOP LOSS (SL) & TARGET PROFIT (TP)

a) SL is 30 pip, (or, 2 pip plus spread above or below previous swing High or Low - added 090208)
b) TP is 30 pip (or trail the profit if you are in profit)
c) Move SL to BE when in 20 pip profit.
d) If price doesn't hit target profit within 30 min to 1 hr, Close it at Best Profit (added 090208)

IMPORTANT NOTES:

1) The rules must follow step a, b then c, NOT b, a then c, as you would not get VALID SIGNALS.
2) EXCEPTION of ENTRY RULES, of RSI (cross above 70 or below 30) and Stoch (cross above 80 or below 20), can ONLY BE DONE, if and only if, u see DIVERGENCE with 3 Spikes of Higher Highs or Lower Lows.
3) You may enter early by following signal a) and then b) without waiting for c) to confirm. BUT, it has 90% success rate - i choose to enter on this entry.
4) It is BEST (change from almost mandatory to BEST - added 090208) that PRIOR to ENTRY based on the RULES stated above, that the previous 2-3 bars length shall be less than 20 pips

ATTACHED is the example of the ENTRY SIGNALS FOR both BUY AND SELL. Look at the arrows.

Attached are other examples of VALID SIGNALS, (of which some I have taken and profit).

More Chart Examples.

Another example, this is very powerful move.

Do you trade if there are news?

How long have you been trading this strategy?

1) So far, I don't care about the news, but I would like to know, IF it does effect the system.

2) To be frank, I have been trading with this system about one week and it proves successful to me (live trading). BUT, i have been trading in forex for more than 8 months with multiple techniques (by other PROVEN METHOD like Imran Sait, James IB). The reason why I create this technique of my own, after THOUSANDS of observation and trading in the market, sometime profit and sometime losing, and it must suit my lifestyle - I cannot handle waiting 6 hours a day to see a signal. My target, within 2 hours, I put up a trade and close it within that time - and normally using these technique, the signals did come up probably 2 or 3 within 2 hours.

3) Even though I am confident with my system, and trade LIVE with it, the reason I post it here, so that, every other traders can try with DEMO ACCOUNT and give INPUTS if any to make the system near perfect. Do not trade LIVE if you dont get the feel and confident.

Trade taken just now at 209.329 SELL.

current price - 10 pip profit, moving my SL to BE already.

current price, 17 pip profit, still not close yet.

price hit my TP at 30 pip profit.

Actually the same happens to me: I don't have the patience to wait several hours a day to get a signal. Thats why I only trade the 1M and 5M charts, but they are so noisy...
I also don't like the 1H or 30M charts, because I want to sleep at night without being stressed and to have to get up at 2 and 4am.

What broker do you use and what is your spread for this pair as that could affect sl and tp targets for retail brokers.

Cool of you to share your system

Trade taken at 209.082, using rule a) and b) without c) ie, waiting for SMA 3 and 7 cross.

Minutes later, hit my SL with -30 pip. This is the risk that I am taking.

Answering question, I am using fxcm, with normally 8-9 pip spreads on GY.

I would like to add note from this experience.

EXTRA NOTE:

BOTH THE BUY AND SELL ENTRY is BEST when the 2-3 BARs length prior to signal is less than 20 pip. The smaller the length of the BAR the BETTER!

Just to share, at the arrow, I am not taking the BUY, strictly following my rule.

The Rule says, Valid signal only happen when Stoch cross first, then RSI, if you look at the chart, the RSI cross first, then Stoch, then SMA 3/7.

Even it looks almost the same, and very tempting.. I have seen many cases it got stop out. So, stick to the rules.

Edited Post:
As I went through my trading activities, I feel responsible to add or correct my statement below. The NOT TAKEN signal below is Mainly because I have shifted my focus in capturing the RANGE trading picture, so it ‘blinds’ me a bit. Let me go into details – The NOT TAKEN signal below is not a BAD ENTRY signal (it is just not my BEST ENTRY signal - the BB is not in 'squeeze') – it is infact VALID, and I have taken the trade before quite many times – and it does not matter whether the price has gone below the Middle BB, as long as the cross of SMA3/7 happened. BUT, one thing to really TAKE NOTE, if the Middle BB is pointing upward, then the cross of SMA3/7 must happen above the Mid BB, and if the Middle BB is pointing downward, then the cross of SMA3/7 can happen near or below the Mid BB, and it works especially well in 'squeeze' BB. But, make sure the other 2 rules happen first.

Hope it is clear.


Original Post:
Another example of the Rule. The NOT TAKEN Signal - even it looks like VALID, it is not, the cross happened when the price has gone below Mid BB.

My experience tell me that it wouldn't go that far. Just to make sure everyone demoing this would take note.

Proof of my statement, this is current price.


Another OBSERVATION, I have been holding to make this statement, but I think I would like to share (not 100% foolproof yet, I think!) - When RSI cross first, then Stoch cross second, price begins to ENTER into CONSOLIDATION period.

Please observe (anybody who reads this thread) and give comment.

Thanks for sharing your system, I've been trading with good results, but so far only with one of the commercial EAs

Have you considered demo testing this with any other currency pairs? If so, which ones... if not, why not/what's holding you back?

Thanks for your contribution, it's great to see other traders out there having success!

I have demo testing first with GJ, GU, EU AND EJ, but only GJ has the BEST move that can reach my target, that's why I am confident with GJ to trade live.

# Just asking, are u happy with your commercial EA's performance, how much pip per month ?

Referring to Post #16, actually I am beginning to find new signal, BASED on the CONSOLIDATION period or ranging period, but still demo testing this. Refer to attached chart. The VERTICAL LINE, shows where the crossing of RSI first, before the Stoch. Based on my observation, this should indicate that the PRICE now ENTERING into consolidation or ranging. So, how can we make use of this indication ?

Refer to two HORIZONTAL lines. The bottom line represents the LOW of the RANGING PERIOD (just taking the lowest low, prior to the RSI Crossing) and the top line represents the HIGH of the RANGING PERIOD.

So, when the price is as close to the BOTTOM of the RANGING period, it is a BUY SIGNAL and when the price is as close to the TOP of the RANGING period, it is a SELL SIGNAL.

I am still demo testing this SIGNALS. Hope to get feedback, if others have interest in this system.

TQ.

Refer attached chart. It proves my previous statement (I hope!).