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4H 5EMA System

  • #121
  • Oct 9, 2008 8:30pm Oct 9, 2008 8:30pm
hi stersuhr,

i found your system is good and promisable ... in beginning confused a bit but it easy to understand after you show trade example and several thread discussion.

my question...only cable tested? how about other currency?

have a nice day
  • #122
  • Oct 9, 2008 9:02pm Oct 9, 2008 9:02pm
Quoting wansh
hi stersuhr,

i found your system is good and promisable ... in beginning confused a bit but it easy to understand after you show trade example and several thread discussion.

my question...only cable tested? how about other currency?

have a nice day
Hey Wansh!

I have tested other pairs but I have found the G/U to be the most profitable. I have also tried other time frames but find this to be most profitable on the G/U. Im not saying theres not some combo of a currency and a timeframe that will work better but I havent found it. Also I really want this thread to be focused on the 4H G/U. Im not opposed to taking the thred to another pair but I would have to see 6-12 on a more positive backtest. This one averaged 600-700 pips month for a point of reference.

-Sterling
Founder of Day Trading Forex Live
  • #123
  • Edited 9:34pm Oct 9, 2008 9:08pm | Edited 9:34pm
Thank you stersuhr for your kind explanations, however I'm having trouble setting my EMA. I use Fx Solutions to trade and I don't see upper and lower EMA in my choice for moving averages. Does E stand for exponential, and do you have to customize it, if so what EMA do you use in your settings to reconfigure the EMA to be 5 above and 5 below?

Thanks in advance
LR
  • #124
  • Oct 9, 2008 9:14pm Oct 9, 2008 9:14pm
Here's the 10PM update on trade #5

New:

Stop loss - 1.7107

Buy stop - 1.7107

Buy stops stop loss - 1.7000

As of right now price is about to make a new low and thus at 2AM we will have to adjust again. Some might ask if price is going to make a lower low wont that mean are buy stop and stop go above that? It will at 2AM. This system was designed so you only have to look at the market once every 4 hours, so what happens in between we dont worry about. We just adjust are stops and reversal trades every 4 hours and everything in between we dont worry about.

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: g.gif Size: 67 KB
Founder of Day Trading Forex Live
  • #125
  • Edited 9:54pm Oct 9, 2008 9:39pm | Edited 9:54pm
Hi all,

Let me start by saying im really excited about this. I came up with this idea to benifit the FF. I see to many systems here that will ruin a newbie! They either leave room for emotion and as well all know that is a huge downfall of newbis. They dont have clear defined rules that can be learned or repeated. They dont have a set time of when trades can occur and thus you cant take every trade. Or just plain and simple they dont work for some reason or another! Now dont get me wrong im not saying this system is the holy grail or the system to end all other systems, ill just say its profitable. And after all isnt that the bottom line.

So heres the challenge! If some one can make a system and make more pips in one month than this system Ill pay them $100, and if you dont I want nothing. I want to make that clear I will profit nothing from this. You dont pay me if you take the challenge and loose, im the only one paying! I will take 3 challengers every month.

My system is comletly replicable! You can take a day learn the rules and take every trade the exact way I do and so must your system be! So here are the rules.

1.) It must be a mechanical system that has hard defined rules that you could teach a complete newbie and they could replicate your results.

2.) No EA's

3.) You must take trades as I do before the price gets there. Sometimes I dont post at exactly every 2,6,10 AM and PM but I post before price gets there so that the trade can be copied, and so must you.

4.) You must open your thread on FF so everyone can see it and post your trades there so there is no doubt when the trade was taken, live charts are an option.

5.) It must be on one pair. I dont care which one. I only trade one pair so thats only fair.

I dont care if you want to have a system that you have to be there all the time for or not thats up to you. You should have to have a system that you can get every trade but ill allow it either way. I really think this will benifit FF and bring many great threads here, or that is what I hope atleast! I really dont think the $100 will be the motivator to the competors, rather the competition. Competition breeds inovation and thats what im hoping for! The competion starts NOV 1st. If you want to take the challenge PM me. 3 days before NOV 1st I will take a poll and let the thread decide what 3 systems get to take the challenge. Spread the word!

-Sterling
Founder of Day Trading Forex Live
  • #126
  • Oct 9, 2008 9:45pm Oct 9, 2008 9:45pm
Quoting Mgh
Thank you stersuhr for your kind explanations, however I'm having trouble setting my EMA. I use Fx Solutions to trade and I don't see upper and lower EMA in my choice for moving averages. Does E stand for exponential, and do you have to customize it, if so what EMA do you use in your settings to reconfigure the EMA to be 5 above and 5 below?

Thanks in advance
Hey Mgh,

If you use a MT4 platform then set a 5 exponential moving average and right click it, go to properties of it and then where it says "apply to" you will see low. Then make another 5 EMA and go to "apply to" and set it to the high. Thats it. Let me know if you have any other troubles.

Also your timeframe may be off from mine but the system will still work. My broker changes the 4H candles at 2,6,10AM and PM. Yours will probably be midnight,4,8. The system will still work but you wont have the exact same trades as me. I use alpari-us for this system but you really as I said before dont have to switch. It will all even out over time im sure, well relatively sure lol.

-Sterling
Founder of Day Trading Forex Live
  • #127
  • Oct 9, 2008 9:58pm Oct 9, 2008 9:58pm
I'd be careful with that challenge, unless you purposely intend to lose $300/month =D
  • #128
  • Oct 9, 2008 10:02pm Oct 9, 2008 10:02pm
Quoting Ronald Raygun
I'd be careful with that challenge, unless you purposely intend to lose $300/month =D
Thats exactly the spirit I was trying to inspire. Please give me your best, this system will give anyone a run, I guarantee it! Do we have a first contestant Ronald???

-Sterling
Founder of Day Trading Forex Live
  • #129
  • Oct 9, 2008 10:09pm Oct 9, 2008 10:09pm
Sterling, thanks again for your time and kind reply.

FX Solutions has 23 different MA choices, but I can't find a way to customize any of them to have a 5 above and below. Some automactically set in a upper and lower pane if they don't set on my bar chart directly. Some I can drag into my chart, but it appears not possible so far to set it up like you can on Meta Trader. Anyway, I'm anxious to try your system, and will contact FX soultions tech support to see if they can help.

Your challenge sounds very interesting indeed, I hope to be part of the group trading with you. And again, thank you for sharing what appears to be a great trading system with everyone.

Cheers,
MGH
LR
  • #130
  • Oct 9, 2008 10:10pm Oct 9, 2008 10:10pm
Quoting stersuhr
Thats exactly the spirit I was trying to inspire. Please give me your best, this system will give anyone a run, I guarantee it! Do we have a first contestant Ronald???

-Sterling
I'm trying to make it 'newbie-proof' if you follow this quote:

"Make it idiot-proof and someone will make a better idiot."

Any requirements regarding initial capital, risk, etc? Or are you just counting net pips?
  • #131
  • Oct 9, 2008 10:12pm Oct 9, 2008 10:12pm
Quoting Mgh
Sterling, thanks again for your time and kind reply.

FX Solutions has 23 different MA choices, but I can't find a way to customize any of them to have a 5 above and below. Some automactically set in a upper and lower pane if they don't set on my bar chart directly. Some I can drag into my chart, but it appears not possible so far to set it up like you can on Meta Trader. Anyway, I'm anxious to try your system, and will contact FX soultions tech support to see if they can help.

Your challenge sounds very interesting indeed, I hope to be part of the group trading with you. And again, thank you for sharing what appears to be a great trading system with everyone.

Cheers,
MGH
Im not familiar with that broker so I would go to there live chat help and ask them how to set a 5EMA "applied" to the low and a 5 EMA "applied to the high. Sorry I cant be of more assistance. If you have any questions regarding the system after you get that figured out feel free to ask!

-Sterling
Founder of Day Trading Forex Live
  • #132
  • Oct 9, 2008 10:15pm Oct 9, 2008 10:15pm
Quoting Ronald Raygun
I'm trying to make it 'newbie-proof' if you follow this quote:

"Make it idiot-proof and someone will make a better idiot."

Any requirements regarding initial capital, risk, etc? Or are you just counting net pips?
Just pips, nothing else matters. Im not gonna post my live account unless people want. It just includes to many other trades. And when I say pips I mean actual pips. Not trading 10 lots, taking 10 pips and calling it 100 pips.

-Sterling
Founder of Day Trading Forex Live
  • #133
  • Oct 10, 2008 12:15am Oct 10, 2008 12:15am
Hey Mgh

I believe for FX Solutions Accu charts you want to use Moving Average - Exponential OHLC...once you open this moving avg. you need to change the Fid type...you will have a choice of 1,2,3,4...1 - open, 2 - high, 3 - low, 4 - close.

hope this helps

Mike

Quoting Mgh
Sterling, thanks again for your time and kind reply.

FX Solutions has 23 different MA choices, but I can't find a way to customize any of them to have a 5 above and below. Some automactically set in a upper and lower pane if they don't set on my bar chart directly. Some I can drag into my chart, but it appears not possible so far to set it up like you can on Meta Trader. Anyway, I'm anxious to try your system, and will contact FX soultions tech support to see if they can help.

Your challenge sounds very interesting indeed, I hope to be part of the group trading with you. And again, thank you for sharing what appears to be a great trading system with everyone.

Cheers,
MGH
  • #134
  • Oct 10, 2008 12:44am Oct 10, 2008 12:44am
Sterling

I will have to agree that with its sheer simplicity and ability to adapt to changing trend eviroment this system will capture the big move...which is definitely what you want in any system.

So if you don't mind I would like to periodically post my test results on the Eur/jpy pair on this thread. I am testing this pair (with your same rules of course) because it usually works independant of the pound US...so the two have nothing to do with each other and it is a little less choppy than the Gbp/Jpy.

I look at it this way...if i can trade two pairs with this system profitably...this will keep me from over leveraging myself on one pair and risking too much in a drawdown period. To me if these two pairs (together) can pull down an average of 800 - 1000 pips a month, this is all I will ever need. (you always say that until you actually achieve it...then you want more...it's the whole greed thing coming into play).

anyway...

I will not go into actual trades just maybe weekly or montly pip count +/- posts. This is all with your approval of course...I just don't want to start another thread because it is still your system, your rules, just a different pair...I will keep the posts to the bare minimum just to be informative.

let me know.

Mike
  • #135
  • Oct 10, 2008 1:12am Oct 10, 2008 1:12am
Quoting earret
Sterling

I will have to agree that with its sheer simplicity and ability to adapt to changing trend eviroment this system will capture the big move...which is definitely what you want in any system.

So if you don't mind I would like to periodically post my test results on the Eur/jpy pair on this thread. I am testing this pair (with your same rules of course) because it usually works independant of the pound US...so the two have nothing to do with each other and it is a little less choppy than the Gbp/Jpy.

I look at it this way...if i can trade two pairs with this system profitably...this will keep me from over leveraging myself on one pair and risking too much in a drawdown period. To me if these two pairs (together) can pull down an average of 800 - 1000 pips a month, this is all I will ever need. (you always say that until you actually achieve it...then you want more...it's the whole greed thing coming into play).

anyway...

I will not go into actual trades just maybe weekly or montly pip count +/- posts. This is all with your approval of course...I just don't want to start another thread because it is still your system, your rules, just a different pair...I will keep the posts to the bare minimum just to be informative.

let me know.

Mike
Hey feel free to post Mike. That was actually the only other pair I was going to extensively trade this on. Im actually in the process of backtesting it over the last year. When I back test I always do it three times becasue you always make mistakes. I then average the three for my final tally. Im on my 1 time over the last year so maybe later next week I will have a tally. Feel free to post as much as you want on any pair thats making pips, I dont really care. I just care that it follows the exact same rules if you want to post your results and personal trades you have taken. Look foward to hearing your results!!!

-Sterling
Founder of Day Trading Forex Live
  • #136
  • Oct 10, 2008 1:22am Oct 10, 2008 1:22am
Trade #5 update/ Short G/U from 1.7246

Stop loss - 1.7054

Buy stop - 1.7054

Buy stops stop loss - 1.6770

We now can get stopped out with no less than +192 pips. I really hope this buy stop order dosent trigger because thats quite the stop loss, but rules are rules. I really dont think it will. When the market falls this far this fast it usually jacks around for a while and then continues. Time will tell, dosent really matter just follow the system and + pips will continue to follow.

The red arrow on the chart is the current setup bar. The stop loss is moved to 5 pips + 3 pips spread above that. The buy stop is at the same location, and the stop loss on the buy stop order is 5 pips below the low of the current setup bar. See you all at 6AM EST for the trade adjustment.

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: trade #5.gif Size: 48 KB
Founder of Day Trading Forex Live
  • #137
  • Oct 10, 2008 5:20am Oct 10, 2008 5:20am
Quoting earret
Sterling

I will have to agree that with its sheer simplicity and ability to adapt to changing trend eviroment this system will capture the big move...which is definitely what you want in any system.

So if you don't mind I would like to periodically post my test results on the Eur/jpy pair on this thread. I am testing this pair (with your same rules of course) because it usually works independant of the pound US...so the two have nothing to do with each other and it is a little less choppy than the Gbp/Jpy.

I look at it this way...if i can trade two pairs with this system profitably...this will keep me from over leveraging myself on one pair and risking too much in a drawdown period. To me if these two pairs (together) can pull down an average of 800 - 1000 pips a month, this is all I will ever need. (you always say that until you actually achieve it...then you want more...it's the whole greed thing coming into play).

anyway...

I will not go into actual trades just maybe weekly or montly pip count +/- posts. This is all with your approval of course...I just don't want to start another thread because it is still your system, your rules, just a different pair...I will keep the posts to the bare minimum just to be informative.

let me know.

Mike
Hi Mike

I see that Sterling is happy that you post your test results on EUR/JPY here, however it would be great if you could post all your trades in realtime using a charting with 4 hourly bars closing at the same times of 2-6-10 as sterling uses.
As you mentioned if we could achieve a good number of pips in a month on two pairs which move independently, that is all we need and is a great achievement with a pure mechanical system with no emotions involved.
Regards
  • #138
  • Oct 10, 2008 5:25am Oct 10, 2008 5:25am
hi Stersuhr

Confirm this our the trade levels for 6 am est.
Buy stop 1.6961
Stop loss 1.6961
Buy Stop loss 1.6820

I use Alpari UK +2 GMT

Great system
LISTEN TO MR FUNDAMENTAL AND MR TECHNICAL
  • #139
  • Oct 10, 2008 6:10am Oct 10, 2008 6:10am
Quoting okehiedon
hi Stersuhr

Confirm this our the trade levels for 6 am est.
Buy stop 1.6961
Stop loss 1.6961
Buy Stop loss 1.6820

I use Alpari UK +2 GMT

Great system
Yeah alpari UK dosent match up with Alpari-US. The trade still remains the same as in my 2AM post. If this candle does not break the high of the setup candle we cancel the buy stop and wait for a proper setup bar and reversal bar.

-Sterling
Founder of Day Trading Forex Live
  • #140
  • Oct 10, 2008 6:35am Oct 10, 2008 6:35am
Quoting stersuhr
Yeah alpari UK dosent match up with Alpari-US. The trade still remains the same as in my 2AM post. If this candle does not break the high of the setup candle we cancel the buy stop and wait for a proper setup bar and reversal bar.

-Sterling
I think alpari-us and uk are the same but the previous poster is mistaken in the way that the setup bar is still the same as shown in my chart by yellow dotted line.

Please correct me if I am wrong.
Attached Image
Regards
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