4H 5EMA System | Page 5 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

TEB 5ema & 12ema and 21 RSI (MTF) 1,730 replies

5EMA hilo system, and EA Idea 18 replies

4H 5EMA System's EA 79 replies

4HR 5EMA Expert Advisor 42 replies

when 5EMA crosses out of 55LWMA channel 0 replies

Attachments: 4H 5EMA System
Exit Attachments

4H 5EMA System

  • #81
  • Oct 7, 2008 12:03am Oct 7, 2008 12:03am
Quoting stersuhr
...the rules...state that you only put the trade to go the other way in the market AFTER the reversal bar closes. We got triggered into the trade this morning and stopped out all in the reversal bar, therefore we did not have a sell stop in the market to go short...

-Sterling
Um, no, checking with my Alpari US chart, the low of the setup bar was at 1.7513, the lowest point of the reversal bar was at 1.7515, the stop out occurred a few minutes into the next bar, not in the reversal bar.
  • #82
  • Oct 7, 2008 3:42am Oct 7, 2008 3:42am
seems to me thjat those of us with 4 hr closes @4am EST like IBFX should be short @1.7435 and v ery happy......
Michael
  • #83
  • Oct 7, 2008 6:18am Oct 7, 2008 6:18am
Still happy?
  • #84
  • Oct 7, 2008 8:36am Oct 7, 2008 8:36am
combine this system with pivot level.
you would not enter short 1.7435
infact you will enter long
and really very very happy
  • #85
  • Oct 7, 2008 9:47am Oct 7, 2008 9:47am
Quoting alllivemind
seems to me thjat those of us with 4 hr closes @4am EST like IBFX should be short @1.7435 and v ery happy......
Michael


If you look at the new high as of 10 am you need to put your short in @ 1.7398 with a sl @1.7662.. where did you come up with a short @1.7435 at 4am???
  • #86
  • Oct 7, 2008 10:04am Oct 7, 2008 10:04am
Thanks for sharing this system!I will try it for sure.
  • #87
  • Oct 7, 2008 12:08pm Oct 7, 2008 12:08pm
Quoting jaykay
Um, no, checking with my Alpari US chart, the low of the setup bar was at 1.7513, the lowest point of the reversal bar was at 1.7515, the stop out occurred a few minutes into the next bar, not in the reversal bar.
Thanks for catching that I dont know how I overlooked it. Good eyes!

-Sterling
Founder of Day Trading Forex Live
  • #88
  • Oct 7, 2008 12:13pm Oct 7, 2008 12:13pm
Quoting alllivemind
seems to me thjat those of us with 4 hr closes @4am EST like IBFX should be short @1.7435 and v ery happy......
Michael
Yeah at this point in my live trading, when I see hughe bars one way and the down and then up, I usually wait for it to break out. I still take all the trades but with smaller lot sizes until it breaks out.

-Sterling
Founder of Day Trading Forex Live
  • #89
  • Oct 7, 2008 1:02pm Oct 7, 2008 1:02pm
Hi!

can anyone explain it little more simple it really comes down to 2 candles right ? the setup and the reversal. the reversal just have to have a higher low and and a 5 pips higher high than the setup bar ? but what about the setup bar i dont really get it where at the ema must it be ? must it touch ?


best rtegards
  • #90
  • Oct 7, 2008 3:29pm Oct 7, 2008 3:29pm
Apparently the Master agrees with my call, tho it was a loser. Now we should be short @ 1.7456 right? Two candles ago (on IBFX) the top ema was broken and on the last candle the low was broken. My call number is 5 pips below the low.
I thought trades were going to be called in advance? Don't stop just because of a few losesers in a row..... That's just trading!
Michael
  • #91
  • Oct 7, 2008 4:21pm Oct 7, 2008 4:21pm
Quoting alllivemind
Apparently the Master agrees with my call, tho it was a loser. Now we should be short @ 1.7456 right? Two candles ago (on IBFX) the top ema was broken and on the last candle the low was broken. My call number is 5 pips below the low.
I thought trades were going to be called in advance? Don't stop just because of a few losesers in a row..... That's just trading!
Michael
I will be calling trades in advance iv just been slacking a little. ill give a pip count when I get hme tonight too. ill be bac in a couple of hours and do all that.sell stop -1.7425stop loss - 1.7644-steling
Founder of Day Trading Forex Live
  • #92
  • Oct 7, 2008 4:31pm Oct 7, 2008 4:31pm
Has anyone backtested this system extensively? Like for at least a year?

I'd be curious to see the results. Stop-and-reverse systems typically have very large drawdowns, which can greatly effect profitability since only a small % of the account can be allocated to only one trade.
  • #93
  • Oct 7, 2008 5:42pm Oct 7, 2008 5:42pm
Quoting stersuhr
5.) Price broke the lower EMA by more than 5 pips and was followed by a proper reversal bar that broke its high by 5 pips. I wrote in the sell stop on this trade but the order to go the other way should always be there. I put it in after the reversal bar closes so as to avoid being whipsawed. I might more clearly define that in the rules.

Buy stop - 1.8065
Stop loss - 1.7978
Sell stop - 1.7978
Sell stops stop loss - 1.8125

Price went in are direction and the reversed and stopped us out. -87 pips

6.) Are sell stop was triggered and at the point of us getting stopped out. I like this becasue you tend to take a few more loosers but never miss out on the big runs.

As stated in trade 5 above
Sell stop triggered at -1.7978
Stop loss - 1.8125

Took profit at 1.7860 when a buy signal was given. +118 pips.

7.) The setup bar breaks the low by 5 pips and has a reversal bar break its high by 5 pips for a buy.

Buy stop - 1.7860
Stop loss - 1.7781

You would not have been able to put a order to go the other way on this one because you were stopped out before the reversal bar closed. As I said before you only look at this system once every 4 hours and adjust it accordingly. So we wait for the next trade.



i dont get trade 7 here the reversal bar has no higher low why is it taken ?


best regards
  • #94
  • Oct 7, 2008 5:54pm Oct 7, 2008 5:54pm
Quoting stersuhr
I will be calling trades in advance iv just been slacking a little. ill give a pip count when I get hme tonight too. ill be bac in a couple of hours and do all that.sell stop -1.7425stop loss - 1.7644-steling

The candle that you are making your trade on is not the one with a higher high. The previous candle is the one that has the higher high so you would want to make that one you set up bar so the price would be sell stop @ 1.7398 sl @ 1.7662. That is the way that i see it.. Is that right???
  • #95
  • Oct 7, 2008 6:17pm Oct 7, 2008 6:17pm
your completly right my bad, I just got my ass kicked in golf and looked at the charts on my phone and didnt see the candle before it. Cancel that last trade! There are currently no trades, because the candle that made that high was not followed within 2 candles with a proper reversal bar. There are no setups right now.
Founder of Day Trading Forex Live
  • #96
  • Oct 7, 2008 6:22pm Oct 7, 2008 6:22pm
We have had 2 trades so far for a total of - 252 pips

1.) -106
2.) -147

Continue to watch the trades it will turn positive. I have backtested it for well over a year and it is still profitable, even more so lately. In the last six months it has averaged around 700-800 pips a month. Last month it took almost 1000.

-Sterling
Founder of Day Trading Forex Live
  • #97
  • Oct 7, 2008 6:25pm Oct 7, 2008 6:25pm
Quoting jgadefelth
i dont get trade 7 here the reversal bar has no higher low why is it taken ?


best regards
On trade seven Alpari-US which is what the standard broker is for this system has a low on the setup bar of 1.7746 and the reversal bar has a low of 1.7449 which was a perfect setup and ended up being a huge trade. Your broker may have a different low thats all I can think of.

-Sterling
Founder of Day Trading Forex Live
  • #98
  • Oct 8, 2008 1:10am Oct 8, 2008 1:10am
Sell stop - 1.7423
Stop loss - 1.7604
Founder of Day Trading Forex Live
  • #99
  • Oct 8, 2008 1:47am Oct 8, 2008 1:47am
ok i looked at your chart and i cant see that trade 7 in the first chart on page 1 in this thread.


best regards
  • #100
  • Oct 8, 2008 8:13am Oct 8, 2008 8:13am
i think this system looks better to trade on a daily.
1 trader viewing now