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4H 5EMA System

  • #181
  • Oct 13, 2008 1:25pm Oct 13, 2008 1:25pm
Quoting fx-char
I am not in a trade, but would like to clarify this:
- if a long position was open at 1.7109 (5 pips above HI + 4 spread for me) for the bar @ 13 Oct 04:00, then when the current(last) bar closes, and if it close at approx. the current level(1.7146) should the Stop/Loss be moved 5 pips below the LO (curr. 1.6986) of the last bar?

Thanks.

There was a similar post(#161 (http://www.forexfactory.com/showpost.php?p=2274300&postcount=161) ) but I just want to clarify this state.
You got the entry right but the stop should be 5 pips below the setup bar. Not 5 pips below the reversal bar. When your buy stop was triggered you dont know how low that reversal bar is going to go before it closes. Now if the reversal bar in a long case were to go threw the upper EMA by 5 pips or more, then your stop would be 5 pips below the last 4H bar.

-Sterling
Founder of Day Trading Forex Live
  • #182
  • Oct 13, 2008 1:33pm Oct 13, 2008 1:33pm
Quoting alllivemind
Was that two longs in a row? Did I miss something?
Sterling,
Thank You for all you do, you are a great communicator. My problem is I need to get a demo account that changes candles when you do. Will someone recommend?
I use IBFX, Crown, and ODL and if I am understanding the system correctly, it actually did a lot better lately using the closing times that those have in common.
Also, I love the challenge you threw out. Worse case, you pay $300 for three more great systems.
Thanks
Michael
Over the weekend we were short. When price gapped up it automatically hit are stop and triggered the buy Trade #8. Price went up threw the 5 EMA and was followed by a proper reversal bar and we went short Trade #9. Price went down and went threw the lower ema and was followed by a proper reversal bar. Sorry I was lazy last night but the price didnt need to be adjusted so no big deal.

-Sterling Suhr
Founder of Day Trading Forex Live
  • #183
  • Oct 13, 2008 1:37pm Oct 13, 2008 1:37pm
Long from 1.7100

Stop loss - 1.7254

Trade #11
Sell stop - 1.7254
Stop loss - 1.7448

-Sterling
Founder of Day Trading Forex Live
  • #184
  • Oct 13, 2008 1:42pm Oct 13, 2008 1:42pm
Quoting earret
Michael

Alpari UK will give you the same time change.

Mike
Thanks I got it!
\M
  • #185
  • Oct 13, 2008 3:20pm Oct 13, 2008 3:20pm
Quoting stersuhr
You got the entry right but the stop should be 5 pips below the setup bar. Not 5 pips below the reversal bar. When your buy stop was triggered you dont know how low that reversal bar is going to go before it closes. Now if the reversal bar in a long case were to go threw the upper EMA by 5 pips or more, then your stop would be 5 pips below the last 4H bar.

-Sterling
Yes, that is clear. The yellow line indicates the prospective point where the S/L would have been moved in case the reversal bar breaks the 5EMA(HI) by 5 pips.

Anyway, I've opened a demo account at Alpari US to reduce the questions and play in the time zone.

Thank you.
  • #186
  • Oct 13, 2008 7:57pm Oct 13, 2008 7:57pm
Quoting fx-char
Yes, that is clear. The yellow line indicates the prospective point where the S/L would have been moved in case the reversal bar breaks the 5EMA(HI) by 5 pips.

Anyway, I've opened a demo account at Alpari US to reduce the questions and play in the time zone.

Thank you.
Trade #11 is still on and it is 353 pips in profit as of right now. I have some bad news tho. Im not going to be able to post trades as they happen, its just too time consuming. I will however post a daily chart of the trades everyday. The good thing about this system is that you can backtest it with 100% accuracy. So each chart will have entries and exits according to the rules. If someone does ever step up to the plate and take the 4H 5EMA challenge I will start posting every trade live again. Sorry for the inconvience. This system is easy enough to learn and trade so I dont see it being much of a problem anyway.

-Sterling
Founder of Day Trading Forex Live
  • #187
  • Oct 13, 2008 8:09pm Oct 13, 2008 8:09pm
Thanks Sterling,
Are we ahead yet? over 350 pips is great! I'm starting with small but real money in the next few days. My plan is to "stairstep".
In a 4000 acct, starting with .1, half the recommended amount, each losing trade I will go up .02 (ie, 1.2, 1.4, ect) and each winner lower it again. I will enter after the next losing trade.
M
  • #188
  • Oct 13, 2008 8:17pm Oct 13, 2008 8:17pm
We will still be a little down for the month if this trade gets stopped on this candle. The gap from this last weekend really hurt us. But sometime it goes are direction. Im considering not holding a trade over the weekend. Had this rule been in place well would be well positive with this trade. Yeah that is very safe .1 lots per $4000, and theres nothing wrong at all with safe. I actually fully endorse your MM. The safer the better. This system takes 3-4 huge trades a month and then the rest seem to even each other out. I really dont care how this system makes it to the 700 pip average I just know it usually gets there by the end of the calender month. I wish you well!

-Sterling
Founder of Day Trading Forex Live
  • #189
  • Oct 13, 2008 8:28pm Oct 13, 2008 8:28pm
Sterling

I was going to ask you if someone had taken your challenge yet...I guess I got my answer.

I couldn't agree more about how time consuming it is to post each and every trade. You have to be careful or it will completely consume you and the whole idea around a system with concrete rules in place is to take some of the pressure off so that you can enjoy the trading experience.......while your making $$$$$$$ of course.

So anyway take care...as long as you are available for questions from time to time that's all we could hope for.

Thanks again

Mike
  • #190
  • Oct 13, 2008 8:57pm Oct 13, 2008 8:57pm
Quoting earret
Sterling

I was going to ask you if someone had taken your challenge yet...I guess I got my answer.

I couldn't agree more about how time consuming it is to post each and every trade. You have to be careful or it will completely consume you and the whole idea around a system with concrete rules in place is to take some of the pressure off so that you can enjoy the trading experience.......while your making $$$$$$$ of course.

So anyway take care...as long as you are available for questions from time to time that's all we could hope for.

Thanks again

Mike
I can promise I willl answer every question, everyday. I have more than enough time to do that for sure. And as I said I will post a chart of the days trades.

-Sterling
Founder of Day Trading Forex Live
  • #191
  • Oct 13, 2008 9:47pm Oct 13, 2008 9:47pm
Trade #10

Trade #10 is now up 400 pips and here are the new orders. I dont plan on doing this at 2AM and 6AM. The rules are clearly defined and anyone following this system should be able to adjust there orders as the market tells you to.

Trade #10
Stop loss - 1.7394

Trade #11
Sell stop - 1.7394
Stop loss - 1.7519

-Sterling
Founder of Day Trading Forex Live
  • #192
  • Oct 14, 2008 10:27am Oct 14, 2008 10:27am
Hi Sterling...been out for a while but came back to see you have done pretty well with this post. I would give your method a full try on the GBPUSD from tomorrow and maybe take you up on your challenge...(i guess you are no more concerned about the money, just the profitability now).

Meanwhile do you have any plans of modifying your method for the 1HR chart? I am kinda like impatient with the 4HR chart though i use em, i trade it alongside 1HR charts too cos i love the price action.
Less is more...
  • #193
  • Oct 14, 2008 1:54pm Oct 14, 2008 1:54pm
Quoting stersuhr
Trade #11 is still on and it is 353 pips in profit as of right now. I have some bad news tho. Im not going to be able to post trades as they happen, its just too time consuming. I will however post a daily chart of the trades everyday. The good thing about this system is that you can backtest it with 100% accuracy. So each chart will have entries and exits according to the rules. If someone does ever step up to the plate and take the 4H 5EMA challenge I will start posting every trade live again. Sorry for the inconvience. This system is easy enough to learn and trade so I dont see it being much of a problem anyway.

-Sterling

Yep, the backtest is in its early stage. I got the 1MIN data, now have to aggregate it in 4H intervals, then to handle the EMA-s, and to apply the order rules. The results should be written out in order to be compared for accuracy against your posts. This is time consuming as I'm doing it in my spare time.

cheers!

PS: I also look forward to see how other trading systems compete against the 4H 5EMA!
  • #194
  • Oct 14, 2008 2:07pm Oct 14, 2008 2:07pm
Quoting fx-char
PS: I also look forward to see how other trading systems compete against the 4H 5EMA!
I'm about ready. It's a hashup of a bunch of existing systems here on FF.
  • #195
  • Edited 2:34pm Oct 14, 2008 2:17pm | Edited 2:34pm
We went short right? The low of the highest candle was 1.7506, so with a 4 pip spread I'm short at 1.7502 and the long trade is +502 banked profit!
The stop is 9 pips above the last complete candle 7574+9=1.7583. But in 2 HR 40 mins the next candle will have formed and we will move our stop down.
Do I have it right?

Question: You say this system averages 700 pips per month. So if ever you are 800 or 1000+ ahead would it be prudent to stop for the month or to lower exposure?
M
  • #196
  • Oct 14, 2008 2:21pm Oct 14, 2008 2:21pm
Quoting alllivemind
We went short right? The low of the highest candle was 1.7506, so with a 4 pip spread I'm short at 1.7502 and the long trade is +502....
Anyone else?
yes my short triggered at 1.7505, but I am not sure about moving the stop
Regards
  • #197
  • Oct 14, 2008 2:27pm Oct 14, 2008 2:27pm
You should have your sl at 1.7579 and you new long order in at 1.7582 with a sl at 1.7425
  • #198
  • Oct 14, 2008 2:31pm Oct 14, 2008 2:31pm
Quoting Hiranya
You should have your sl at 1.7579 and you new long order in at 1.7582 with a sl at 1.7425
I dont see any setup bar for going long yet
Regards
  • #199
  • Oct 14, 2008 2:54pm Oct 14, 2008 2:54pm
Quoting howard
I dont see any setup bar for going long yet

The set up for a long is the sl on your short. So you are in a short now and if it was to turn and move up when it hits you sl for you short at that time you would start a long position and you would be in that untill the market give you a short signal
  • #200
  • Oct 14, 2008 3:34pm Oct 14, 2008 3:34pm
So if we are in a trade, which is almost all the time, we don't need an "official" setup bar?
Our short is almost 100 pips ahead. The system is working great!
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