Long term using MA's on H1

Hello and welcome to a long term strategy that I just recently put together last night. It consists of using Moving Averages. Just to start I'd like to thank everyone for the threads on FF, which I find most valuable. I've been reading these threads for about a month and haven't posted yet but I think this is a great start.

I've been trading for about a year or so and haven't been that serious till lately. I used the money that I put in the market as gambling money and that's how I looked at it. So I'm currently about 6k in the whole. At this point and time my mind set has changed and I would like to do this for a living someday. I did use a program that was supposed to give buy and sell signals but decided that it didn't work that well, so here I am trying to learn more everyday. After all is said I'm using this as a new beginning and journal my trades. Most importantly being honest with myself also.

In looking at this strategy I found that it involves lots of hours in front of the computer. I haven't fine tuned this strategy yet for all the currency pairs so I'm going to currently use the G/U. In terms of backtesting this strategy I've looked at the chart from Jan and calculated that it would of generated approx. 700+pips for the month. It created about 13 trades for the month.

I will curently be posting the trades I make here and they should not be traded with live accounts and this is for testing purposes only. In addition to posting my trades I would ask anyone that has any suggestions or comments to feel free and post away. I will respond as soon as possible since I usually work during the day EST. Working shouldn't reflect to many of the trades I believe since most of them should be placed within the first few hours of the London session. I will post my stategy later in this thread. Hopefully by the end of the week

Thanks
Bob

I currently don't see any trades forming till tomorrow morning or possibly longer.

Even though I am in EST I will use GMT times just so that I don't confuse myself

Good luck with your journal!

Thanks and welcome!!
Look forward to future trades soon and good luck with your trading as well

Forex Strategy 1

Long Term Trading with MA’s on H1

Simple Trading While Watching the Screen

Only tested for the G/U on the one hour charts for the month of January
It looks like it may work on several charts as well as different currency pairs with the stoploss adjusted. This system may be simple but will require hourly visits to the comp.

Backtested this system from the hourly chart for the month of Jan. The system produced 13 signals. The results for are as follows from Jan:

TRADES PIPS
WINS: 8 764
LOSSES: 2 32
BREAK EVEN: 3 0
Net Gain: 8 732

Requirements:

1. One hour chart only
2. SMA 5, EMA 21 , and EMA 40

Rules for entry

1. Will always enter with a market order
2. Wait for the SMA 5 to cross over the EMA 40
3. The first candle must close above or below the EMA 40 depending on which way the trade is. It is not valid if only the wick crosses over the EMA 40

Stop Loss:

1. Which ever way the trade is entered the stoploss should be 30 pips in the opposite direction.
2. When the trade goes thirty pips in your favour set the stop loss to breakeven.

Exit Strategy:

1. Will always exit manually unless stoploss is hit before the SMA 5 crosses over the EMA 21
2. Wait for the SMA 5 to cross the EMA 21 and then exit
3. If the EMA 21 never crosses over the EMA 40 then close when the SMA 5 reaches the EMA 40

This is the strategy that I will be forward testing and will wait till the end of the year to see how it does. I again just want to thank everyone for their ideas. I got this idea after reading many threads. So at this point and time I am sharing what I put together and hope it helps. Any suggestions or comments would be greatly appreciated.
thanks
bob

Do you pay attention to the trend on the higher TF?

I am trying to attach a pic but I'm not sure yet how so bear with me while I explain a possible trade one could have taken.

On the g/u hourly chart

Jan 8 10:00 an entry signal is given
The candle closses at 1.9777 and is under the EMA 40
Thus creating a sell

Example of a trade

Sell
Open 1.9777
Close 1.9514 @ Jan 12 13:00

The stop loss would of intially been 30 pips out at 1.9807
Since the trade had gone 30 pips in our favour, then the stoploss then went to breakeven at that point.

Total pips 263

All trades will be shown in GMT time and am using intellicharts

Thanks
Bob

Welcome
At this point and time with this strategy I haven't taken into account trend lines, fib lines, or any formations. This strategy is purely from the Ma's

Thanks
Bob

[IMG]file:///C:/DOCUME%7E1/ROBERT%7E1/LOCALS%7E1/Temp/moz-screenshot-2.jpg[/IMG]

I'm also adding the e/u to the plan as well. The sl would be 20 away from the open of the trade and once 20 pips up set sl to b/e.


Possible trade upcoming-look for the SMA 5 to cross over the 40 EMA on the g/u. Will look again around 01:00 for trade signal.

open 2996
s/l b/e

waiting for SMA 5 to cross the EMA 40

trade 2

long on G/U

open 9514 @08:05
sl 9484

all open positions have the spread included

In looking at the chart from Jan, using the MA method seems very positive. I was thinking this because Jan isn't as active as opposed to the 2nd and 3rd quaters of the year. So right now I ask everyone, Do you think that the MA setup I have will work in a trending environment (ie. the 2nd and 3rd quaters of the year)?

Thanks,
Bob

trade 2

long on G/U

open 9514 @08:05 2/14/07
sl 9484

Closed @1.9574 @1200 2/15/07

pips+60

trade 3

g/u sell
open-9571 @1400 on 2/15/07
sl - 9601

stopped out @1410

pips-30


net pips 30

Looking for direction now on the pound as the SMA 5 is hovering around the EMA 40 for a possible crossover again to the upside. The EMA 21 and EMA 40 are converger as well.

C-1.3131 on 2/16 @0200

pips +135

After reviewing the charts for the month of January again, I've come to the conclusion that the MA strategy did not fit well with this pair. I will continue to forward test it for a complete year as indicated earlier, but does not look that promising.

Thanks,
Bob

Hi Bob,

I'm use EMA strategy too, but different setting,
I propose to change EMA 40 becoming EMA 45

Regards, Core

Thanks for the advice Core. I'm definitely going to look into it. I actually just got done back testing the charts on the gpd with the H1 settings. I went all the back to Aug 1 using the charts from metatrader since my intellicharts only went back to the beginning of January. Based upon my current strategy it isn't all that profitable and maybe just breakeven over the long run. Right now I'm looking to incorporate some formations and fib lines and add it to my current strategy. Do you use only EMA's or anything else with your strategy? How do you enter and exit your trades? I've been searching for the method which would be the most profitable, but I haven't been able to get a hold of one yet and keep jumping around with different strategies, while tracking of them though. I'm currently looking to do this full-time and I have unlimited time on my hands without having to work on anything else for the time being. So right now I'm looking at all my options and whatever you can share would be great.

Thanks,
Bob

Hi Bob,
I only use EMA’s strategy for my trading.
I’m entry if any signals from EMA, I’m exit after 20 pips (sometime I’m exit more than 20 pips).
My target every moth only 200 pips; If I have more then 200 pips, it is good month for me.
I’m assumption every moth, trading min 10 times. (10 times x 20 pips = 200 pips)

Regards, Core

Hi Core,

Today looked like a nice day to use the ema strategy since you are only looking for 20 pips. In regards to a monthly projection I was looking at 200 pips a month my self with an average of 10 a day. Then again it's easier said then done. I would like to become more of a longterm trader than an intraday trader, so that's why I'm looking at different strategies. I'm only looking to take about 3-4 trades a month averaging about 50pips per trade. Therefore I want to take trades with higher probabilities. I will continue to look into the EMA strategy while also looking at other ways to enhance my strategy. Thanks for your response and good luck trading.

Bob