Could this system work

I have spent most of the weekend researching forex (as this is the only time I get to do it) and I happen to come across the following.

9/50 EMA crossover. OK here is the system.

Eur/Usd 15 minute chart (I only tried it on the Eur/Usd)

Around 3am-4am CST look for the crossover of the 9/50

Whichever way it crosses it will likely stay there for the rest of the
trading day unless there is a news event

Trailing SL of 1.5 times of the ATR(14)

Could this system work and if so how can I set it up? I am very new to FX and when I set up the EMA ( I think I have the right indicator) it only has one line so I am somewhat confused when it says buy or sell in the direction of the cross over at a certain time.

If this would be a valid system can someone post a chart or some how explain how I can set this up and test it.

Thanks and sorry I am sure this is something very simple

Thanks

CarpeUK

Trying not to be too harsh given that you say you are a beginner, but nobody here will be able to tell if exactly if the system "could" work or not.
Try learning how to backtest it or if you don't know how to program, try testing it manually in a backtest or in a forward test.

In principle the system would be very easy to setup if you were familiar with the Metatrader interface(assuming this is what you plan to use).Just checkout the help file to see how to use indicators and enter orders.

With money management I think it could work for you.....
open up a chart and put the MAs on it and do some visual backtesting ....
then open a demo account and forward test it for a few months.

No two traders will trade a system the same way so regardless of the 'history' - it may work for you and it may not -
You may wish to go to babypips.com to start your forex education.
9/50 EMA - is two (2) EMA's so add the EMA indicator twice - once for 9 and once for 50. Make em different colors sp you vcan tell lwhich is which.
Put the ATR indicator on w/ a setting of 14 - and trade that demo account till you graduate from babypips.
Good Trading to you.

as it has been said before no one can say it is good or bad system. it depends to your style of trading, some will see it nearly to cross and enter early, others oh! I want to see it cross then enter, others will wait for the new candle to open after the cross happens.
as I see it the 50 ema is good on 15m chart and if you notice 9 ema and the candle crosses the 50 ema at the same place nearly most of the time.
above 50ema go long below go short.
some things to think about, maybe some experienced traders could help about or tell how they decide about these things:
what will be your profit target be? 25 pips 50 - 100?
how will you decide if you will close the trade or keep it going? if you are in profit and price start going against you, at what stage will you decide to close the trade? how will you know is this a small or major retrace?

here is a chart and a template for the system, I hope I understood it and didn't do something wrong
Blue cross up go long and vice versa.

That's 4am to 5am eastern. Some of the best trading will be done by then. The 9/50 will lag like mad, too, so you'll always be running a bit behind there too.

Pairs often reverse at the US NYSE open (9:30 east), then fade before lunch, then sometimes reverse again around 2pm eastern. So don't depend on trades continuing for the entire day.

IF that were the case we couldn't trade long term...........

I think Rabid means to not count on it continuing on a 15 min chart which is what this cat is looking to trade... maybe?

you might give this thread a read. Not saying it is exactly the same but you never know what you might learn .

http://www.forexfactory.com/showthread.php?t=44759

Trade direction often reverses thru-out the day. When it doesn't it's referred to as a "trend day" and there are certain characteristics it has that other days do not. If you make a study of intra-day charts you'll notice that most days tend to reverse around major market opens, shortly after major market opens, after major runs in one direction or another, and after lunch time.

http://i28.tinypic.com/2621po8.gif


There's a chart from last week, hourly, pound/dollar. Notice the ranging action? The tops occur early in the london session and the reversals are occurring around the early US session (altho one of them starts near 2pm). This is not always the case, of course, but this happens enough that you can't expect price to continue thru the entire day.

What you have is the beginning of a fairly popular, and surprisingly powerful, intra-day system. I have a friend of mine that combines a 3/5 EMA crossover with bar patterns to trade off the 5 minute. The whipsaws are killer tho, you have to cut losses very very tightly (10, 15, maybe 20 pips) and set very strict time limits for questionable trades (if it's not profitable in a half hour ditch it, if it's not breakeven in 2 hours, ditch it).

You've also got to get good at recognizing bar patterns that could signal an upcoming reversal ahead of a cross-over. These usually occur towards a pivot point, R1 or S1, often times at particular times of the day and are pretty easy to spot. I wouldn't exit a trade at a reversal sign (because nothing is 100%) but I would definitely tighten my stop loss to the end of the last bar. Of course that's personal preference, I do not like riding out intra-day retracements... I'd rather close the trade, take the money and go do something better with the rest of the day. But that's just me.

Generally speaking you can make any system profitable by just cutting your losses down to tiny tiny fractions and letting your winners run. That means this system as well, so yes it could probably be made to work just fine over time, but the real question is... does the rate of return and trading pattern fit your personality?