5Min Intraday System

Quoting Xaron

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Actually I found a setup where it generates 30-120 pips with a stop (combined for multiple entries) of 60 pips. Will explain it later. Works great.

Regards - Xaron

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Quoting Barak's pip

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hi all ,

I understood the meaning of the 0.1 -0.1 levels on the sma angle indicator as "war zone" .

but I haven't undertand the 0.4 -0.4 , is it no trade zone above \ below them?

many thanks.

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Quoting islandtrader

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...

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Quoting Barak's pip

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hi all ,

I understood the meaning of the 0.1 -0.1 levels on the sma angle indicator as "war zone" .

but I haven't undertand the 0.4 -0.4 , is it no trade zone above \ below them?

many thanks.

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Quoting Golfer

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The area between the 0.1 and -0.1 lines on SMAangle indicator the non-trade zone. If the 21MA is between these two lines, you sit on your hands or go and make a cup of tea.

The areas above the 0.4 or 0.5 line on the SMAangle is when the market is ready for a reversal. Especially in a range bound market which is about 80% of the time. It is only when a market is trending, when you can ignore this signal.

That is why I like Phillip's advice:

1. Be careful after the 2nd or 3rd pullback towards the war zone.
2. 30/60/90/120pip makrket movements - the markets is moving in 'part' of 30 or 60 or 90 or 120 pips.
3. Only have 2-3trades per day - that is what the market will give to you. (my own experience - the rest of the setups are high risk setups).

Look at the attached chart and a stupid mistake of mine after the 21MA has crossed the -0.5line. I did concentrate when I entered that trade. One needs to concentrate when trading this system. You cannot just play around and trade any pullback into the war zone.

Hope it helps.

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Quoting moshnjack

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does this system still rock on guys, i new on forex also this system

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Quoting Barak's pip

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hi golfer ,

it helped me a lot , thank you so much .

i do have one more question , from your experince - does the good setups comes in any specifiic time of the day , or it can appear randomlly in all times?

again , many thanks.

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Quoting moshnjack

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does this system still rock on guys, i new on forex also this system

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Quoting Xaron

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Actually I found a setup where it generates 30-120 pips with a stop (combined for multiple entries) of 60 pips. Will explain it later. Works great.

Regards - Xaron

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Quoting Qwert

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Can't wait for Xaron to teach us his new strategy.

For the 5M Intraday System, what I do is I look at UJ, EJ, EU, GJ for possible setups. I always try to see beforehand which currency pair is moving more in a certain direction. But this will depend on the time of day and also if there will be any news.

If I see a good setup is starting to show(for example BUY GJ), I check immediately the price movement of GU, UJ and EU. If UJ and GU are both going up, no problem. Your target profit will easily be reached. If UJ is going up and GU is going down, you try to see which is moving more pips. If UJ is moving up more pips than GU, you'll have a better chance to profit. If GU is moving down more pips than UJ, I stay out of the trade even if it has a good setup since it will pull GJ down. Also, why do I check EU? GU(recently) has the tendency to follow EU direction esp. if there is news. Even if there is no bad news for GU and EU has bad news, it will pull GU down. So, it might pull GJ down too.

For trading EJ, I look at UJ and EU. Same concept as in trading GJ.

For UJ, I look at EU and EJ. Usually, from my observation, UJ will move opposite the direction of EU. Also, why EJ? Example, for a setup like BUY UJ, I noticed that EU is going down and UJ is going up. So, you think that you won't have a problem anymore since they move in opposite direction? Well, sometimes I think that if there are heavy sellers of EJ at that moment, it will also pull the UJ down. So, I have to check EJ movement too. Same goes for trading EU.

These are all just from "my observation." Great - go with it

I also check the 1HR and/or Daily TF. Why? If trend is "up" in 1HR and/or Daily TF, I will be more confident to let a BUY trade run a little more. If a SELL trade, better close it while in +pips even if small profit only.

I like to use Phillip's 4h system and charts to trade with the 4h MACD rules.

Also, I just use 10EMA, 21EMA and 50SMA, nothing else. I also never use trend lines, pivots, resistance, support, etc. I like to keep it as simple since it's already a tiring work. Anyway, this is "my trading style" and it works for me(hopefully for a very long time).

What you feel comfortable and confident with - that is what matter. If it is working for you and you make money with, stay with it. I agree with you.

I like this system since people here encourage you to take just 10pips and at most 3 trades in a day.

I agree - stay with the orginal rules. However, sometimes it is difficult.

I won't comment on which threads but some causes many traders to think it is easy and made them have a tendency to let their trade run or trade a high percentage of their capital since they want to earn fast because they have read others have earned so much. But in the end, many get burned or sadly, even blow their accounts.

It is so true. I've played around with this system and at one stage I let me losses run. Yes, some of them turns out to be profitable at the end. But boy o boy, you are in trouble if they don't turn around. I lost about a third of my current mini account trying it. I did discuss it with Phillip and it is not is sercet. Take it from me (been there, done that, got the losses) - it doesn't work. Take the profit on the offer. This is an intra-day system - the short the time frame, the more setup there are, the chopper the markets, the samller the profit should be.

Maybe some traders do earn so much money since they have hundreds of thousands of dollars of capital. That is why some of them can hold their losing position/s for a couple of days, weeks or months until price return to their favor. If you can do this, then you can let your profits run. Incidentally, risking a very very small percentage of your capital can let you hold your losing position too for a couple of days, weeks or months until price(if ever it goes back) return to your favor.

Agree.

Another thing, remember that with more money, it will be much easier to make more money. Less capital, slower to make money. Example - In business, an individual have X amount of money. He went into a small restaurant business. Sales are pretty good so his profits are good. A group of 5 friends pooled 5X amount of money and open up Mcdonalds. Their sales are much much higher than the small restaurant so their profits soars.

It is so true

Although many factors affect business, I have seen so many partnerships that are earning so much more than a single individual in business. Another example - A person has $50,000. He placed the money in a time deposit in a bank and withdraws it in 10 years. A group of five friends($50,000 each) deposits $250,000 in the same bank but was given a much higher interest rate because of the higher deposit for 10 years too. And remember, as your money grow bigger, you will be given a much higher interest rate than before. If you know how to compound it(capital plus interest) monthly, you'll see what a big difference it will be in 10 years.

What I'm conveying is - if you have less capital, don't expect to earn like those who have a large amount of capital. Just start with 10 pips, I guess.

That is why I want to measure my profit in 10pips initially. I know people won't agree with me but that is how I motivate myself in this business of forex trading. If you can profit 50pips a week using this 5min system - think of what is it worth on a standard account of $2 000.00 (1pips=$10) for part time trader like me.

Thank you and good luck to your trading.

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Quoting Xaron

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Hi all,

so here comes my (new) way of trading this system.

I still use the basics of this system described on post #1. I use only the 3 MA's, nothing more.

Some history: In the beginning I used the 6 pip + spread stop and got stopped out very often, just to see the trend continue in my direction after it. So I decided to use a wider stop. But then another problem did pop up. If you go for 10 pips only and use a stop of 20 or 30 pips, one mistrade will ruin 2-3 profitabel ones. So after some backtesting and analyzing my old trades I do the following now:

The basics of this system are that you enter in the pullback of a trend. But noone knows when the trend will continue. The war zone (between EMA 10 and 21) is a good area, but sometimes it goes deeper...

That's why I split my position into 3 parts. All 3 parts have the same size. Let's assume an up trend:

I enter with the first lot directly in the middle of the war zone, I do not wait for any close of the candle.
I use a stop of 30 pips and a tp of 30 pips for the first position.

I enter a limit buy order 10 pips below my initial position with a stop of 20 pips and a tp of 40 pips.
I enter another limit buy order 20 pips below my initial position with a stop of 10 pips and a tp of 50 pips.

So if all orders get filled, all use the same SL and TP.

Example from yesterday: I enter my initial position around 14:00 at 1.5519, with the SL at 1.5489 and the TP at 1.5549.
I'v added 2 limit buy orders, one at 1.5509 (SL: 1.5489, TP: 1.5549), one at 1.5499 (SL: 1.5489, TP: 1.5549). Both got filled.

http://www.xaron.net/dl/fx/2008/intr...usd_300508.png

If my initial position reaches a profit of 15 pips, I set my SL to BE, in this case to 1.5520 for all 3 positions.

On friday, everything went fine, I came out with 120 pips.

The following scenarios can happen:
1. A loss. All 3 orders get filled and you get stopped out. That would be -60 pips (-30, -20, -10).

2. Your first order reaches its target: That would be +30 pips

3. The second one gets filled and your positions reaches their targets: +70 pips (+30, +40)

4. All 3 are filled and your positions reaches their targets: +120 (+30, +40, +50)

Then there are several break even cases:
1. BE with a single position: +1 pip
2. BE with 2 positions: +12 pips (+1, +11)
3. BE with 3 positions: +33 pips (+1, +11, +21)

I still do some experiments with another trailing, but this works fine so far. The risk reward is much better for me now.

Regards - Xaron

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Quoting Golfer

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Hi Mosh

It does work if you follow My Triage. Nothing comes easy in forex trading - it is what you make of it.

I still have a problem with one of the legs of my triage and that is discpline. But I am getting better at it. Last week I had a 9% growth of my mini account using a money management of 1.5% (only risk 1.5% of capital on any trade). I traded only 0.2lots per trade and increase my account with 9%.

Usually 'they' recommend that you can risk 1 to 5% of your capital per trade but I am very conservative. Next year I'll probablity open a standard account after I've gained more skills and exprience with this system as well as Phillip's 4h system.

I just cannot thank Phillip enough for his patience and honesty. I am still using the same mini account now for more than 18 months - still very much alive after all the practicing and playing around. I am sure if it was another system, the account would have been blown away by now (like my previous two).

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