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4H 5EMA System

  • #101
  • Oct 8, 2008 8:51am Oct 8, 2008 8:51am
Quoting forextrades
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.

It was back tested for six months and has been traded for one month..
  • #102
  • Oct 8, 2008 11:38am Oct 8, 2008 11:38am
Quoting stersuhr
Sell stop - 1.7423
Stop loss - 1.7604
the trade is now 150 pips in profit. the trade will be adjusted accoding to the rules at 2EST.
Founder of Day Trading Forex Live
  • #103
  • Oct 8, 2008 12:52pm Oct 8, 2008 12:52pm
Quoting jgadefelth
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
On trade 7 the big bar comes sown and then the following 2 bars dont make a higer high to trigger a buy. So the third bar after that big bar becomes the new setup bar. The next bar triggers the buy and then it gets stopped out. The reversal bar not only got you in the trade but it also stopped you out. Had the reversal bar closed you would have put your sell stop in at the point your original stop loss was at, and you would have made a lot of money. But as fate would have it you would have got stopped out before this could happen. I hope this makes sense.
  • #104
  • Oct 8, 2008 1:02pm Oct 8, 2008 1:02pm
You can trade this on any time frame you want. Ive backtested the daily and it works great in a long trending market, thats not what the forex is all the time tho. You can also trade it on the 1H but you will get faked out all the time and there is no way you could ever take every trade. So of course murphy will come in and you will miss the good ones and catch all the bad ones. The 4H brings the best of both world, you can catch every trade. Also it works well in a trending market and a sideways trading one. Feel free to back test it and tell me the months you did and I will backtest it as well, but I already know the results.

Everyone remain patient with this. We had 2 negative trades thats it! Were in profit now and the system at the end of this month will be well in profit. Im gonna go on a limb and say atleast 500 pips for this month. Just wait and see what the end of the month brings! This will be one of if not your most profitable system im sure of that. So stay tuned, stay patient, and trade according to the rules and watch the pips roll in!

-Sterling
Founder of Day Trading Forex Live
  • #105
  • Oct 8, 2008 1:11pm Oct 8, 2008 1:11pm
Quoting stersuhr
Sell stop - 1.7423
Stop loss - 1.7604
Weve now made lower low and so we have to adjust the trade so here are the revisions, you have to do this every 4 hours depending on what the market does. Please let me know if you dont understand.

Stop loss - 1.7431
Buy Stop - 1.7431
Stop loss on the buy order - 1.7254

-Sterling
Founder of Day Trading Forex Live
  • #106
  • Oct 8, 2008 6:39pm Oct 8, 2008 6:39pm
Quoting stersuhr
Weve now made lower low and so we have to adjust the trade so here are the revisions, you have to do this every 4 hours depending on what the market does. Please let me know if you dont understand.

Stop loss - 1.7431
Buy Stop - 1.7431
Stop loss on the buy order - 1.7254

-Sterling
Trade is now 200 pips in profit. Stop loss and buy stop will be adjusted at 10PM EST according to the rules.

-Sterling
Founder of Day Trading Forex Live
  • #107
  • Oct 8, 2008 9:01pm Oct 8, 2008 9:01pm
Quoting stersuhr
Weve now made lower low and so we have to adjust the trade so here are the revisions, you have to do this every 4 hours depending on what the market does. Please let me know if you dont understand.

Stop loss - 1.7431
Buy Stop - 1.7431
Stop loss on the buy order - 1.7254

-Sterling
Stop loss - 1.7292

Trade #4 if triggered
Buy stop - 1.7292
Stop loss - 1.7164

-Sterling Suhr
Founder of Day Trading Forex Live
  • #108
  • Oct 8, 2008 9:44pm Oct 8, 2008 9:44pm
Quoting stersuhr
Stop loss - 1.7292

Trade #4 if triggered
Buy stop - 1.7292
Stop loss - 1.7164

-Sterling Suhr
Trade #4 triggered, Trade #3 was closed for a +131 pip profit.

Stop loss for Trade #4 - 1.7164

-Sterling
Founder of Day Trading Forex Live
  • #109
  • Oct 8, 2008 9:52pm Oct 8, 2008 9:52pm
Sterling

First of all I want to say thanks for the time and effort you put forth with the system...second...just to clarify for myself we have just entered into a buy. We will not be looking for a sell until price pushes 5 pips beyond the high 5 ema. At that time we will begin to place sell stop orders at the bottom of the current bars until the sell order is taken.

Hope I made sense

PS.. did see that you live in MI also? Go Blue

Mike
  • #110
  • Oct 8, 2008 10:14pm Oct 8, 2008 10:14pm
Quoting earret
Sterling

First of all I want to say thanks for the time and effort you put forth with the system...second...just to clarify for myself we have just entered into a buy. We will not be looking for a sell until price pushes 5 pips beyond the high 5 ema. At that time we will begin to place sell stop orders at the bottom of the current bars until the sell order is taken.

Hope I made sense

PS.. did see that you live in MI also? Go Blue

Mike
Yes sir you got it right. It has to push threw the higher 5EMA by 5 pips or more and then we start putting sell stops below that bar, as long as they keep making higher highs that is. After this current reversal bar closes we will put a sell stop order in the market at the stop loss incase it reverses.

-Sterling
Founder of Day Trading Forex Live
  • #111
  • Oct 8, 2008 10:28pm Oct 8, 2008 10:28pm
Thread will more atractive and very clear with the CHARTS ..


Thannx too much
Attached Image (click to enlarge)
Click to Enlarge Name: Insert image.JPG Size: 130 KB
Never sell @ lower upward channel unless breacked and vise versa .
  • #112
  • Oct 8, 2008 10:59pm Oct 8, 2008 10:59pm
Hope this helps everyone follow better.

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: trade #4.gif Size: 63 KB
Founder of Day Trading Forex Live
  • #113
  • Oct 9, 2008 8:53am Oct 9, 2008 8:53am
Trade #4 now 70 pips in profit.

Stop loss - 1.7164

Trade will be adjusted at 2 PM EST

-Sterling
Founder of Day Trading Forex Live
  • #114
  • Oct 9, 2008 9:28am Oct 9, 2008 9:28am
Sterling

I looks as though the system shows promise...just curious if you have ever kept track of the highest weekly or montly drawdown. I see money management being key with this system. For that matter any system that has a riged set of rules to follow is only as good as the money management the trader uses to keep him alive through a drawdown period.

For me...i like to know (or at least have an avg.) of what the highest weekly or montly drawdown period is. This gives me the insight to employ the correct money management method for a given system.

I guess you could say it's psychological on my part...whatever the case it gives me the confidence to follow the rules of any system without hesitation.

again thanks for your time

Mike
  • #115
  • Edited 2:00pm Oct 9, 2008 9:42am | Edited 2:00pm
Quoting stersuhr
Trade #4 now 70 pips in profit.

Stop loss - 1.7164

Trade will be adjusted at 2 PM EST

-Sterling
Trade #4stop loss - 1.7247

sell stop - 1.7247

sell stops stop loss - 1.7403

-Sterling
Founder of Day Trading Forex Live
  • #116
  • Oct 9, 2008 9:55am Oct 9, 2008 9:55am
Quoting earret
Sterling

I looks as though the system shows promise...just curious if you have ever kept track of the highest weekly or montly drawdown. I see money management being key with this system. For that matter any system that has a riged set of rules to follow is only as good as the money management the trader uses to keep him alive through a drawdown period.

For me...i like to know (or at least have an avg.) of what the highest weekly or montly drawdown period is. This gives me the insight to employ the correct money management method for a given system.

I guess you could say it's psychological on my part...whatever the case it gives me the confidence to follow the rules of any system without hesitation.

again thanks for your time

Mike
yeah that's usually the first thing I ask too. the worst drawdown I've had in the last year is around 600pips. this is very rare and never came close to that with other drawdowns. the average on a month if you start at the worst possible time is usually around 300 pips, which is not bad for a system-sterling
Founder of Day Trading Forex Live
  • #117
  • Oct 9, 2008 2:11pm Oct 9, 2008 2:11pm
Trades taken since thread opened

Trade #1 -106 pips
#2 -147 pips
#3 +131 pips
#4 -45 pips

Total -167 pips. It figures I would start calling live trades on my system and start off with a little drawdown lol. No big deal it always comes around! Stay tuned.

Trade #5

Were short from 1.7247
Stop loss - 1.7403
Buy stop -1.7403
Buy stops stop loss -1.7145

Kinda a big stop on the reversal trade but rules are rules and this system works if you follow them. Hopefully the current 4H bar which closes at 6PM EST will make a lower low and we can tighten are stop and move are buy stop closer and have a tighter stop on that as well. We shall see come 6PM.

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: trade #5.gif Size: 58 KB
Founder of Day Trading Forex Live
  • #118
  • Oct 9, 2008 3:51pm Oct 9, 2008 3:51pm
Looks like price is dropping...could get us near break even at the close of the current bar. By the way don't sweat the drawdown...like you said if you believe in the system and it has proven profitable in the past...as long as we follow your rules without hesitation it will come around.

Good job

Mike
  • #119
  • Oct 9, 2008 4:45pm Oct 9, 2008 4:45pm
Stersuhr I have been following the system since inception. Suits my style of trading since I do not have time to screen watch. It seems very profitable and would be learning from your calls and charts. I am in
LISTEN TO MR FUNDAMENTAL AND MR TECHNICAL
  • #120
  • Oct 9, 2008 5:52pm Oct 9, 2008 5:52pm
Quoting okehiedon
Stersuhr I have been following the system since inception. Suits my style of trading since I do not have time to screen watch. It seems very profitable and would be learning from your calls and charts. I am in
Hey,

I really appreciate the support from everyone including you. When people continue to post on this thread it keeps me going and gets me up to post my live trades, otherwise I dont it from my phone in bed haha. Anyway this trade is nicely in profit almost 200 pips as of writing this. Although I dont think we will be needing to adjust the trade right I will to keep with the rules. I feel like the current bar will make a lower low and we will have to adjust come 10PM per the rules. I will also put an updated chart for this trade on when I get home at ten for the scheduled every 4 hour adjustment.

Trade #5
Stop loss - 1.7256

Buy stop - 1.7256

Buy stops stop loss - 1.7056

-Sterling
Founder of Day Trading Forex Live
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