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4H 5EMA System

  • #201
  • Oct 14, 2008 5:30pm Oct 14, 2008 5:30pm
Quoting Ronald Raygun
I'm about ready. It's a hashup of a bunch of existing systems here on FF.
Im glad to see some people thinking about taking the challenge. I hope your ready by the 1st!

-Sterling
Founder of Day Trading Forex Live
  • #202
  • Oct 14, 2008 5:35pm Oct 14, 2008 5:35pm
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 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
Im not sure how long you have been trading but if you have been trading for any length of time you know very well that murpy's law never takes effect more than in trading. Having said that no I never stop taking signals when I get to a certain pip count. How do you know that you wont make +1600 pips that month and then the next month be down -300 pips, you dont.

I know if I take every signal that in one years time I average around 700-800 pips. But thats the key, never get emotional just trade the rules to a T and you will make money. When you start adding emotional decisions and personal opinions to a rigid system things go downhill fast. All IMHO of course.

-Sterling
Founder of Day Trading Forex Live
  • #203
  • Oct 14, 2008 5:38pm Oct 14, 2008 5:38pm
Ill be posting a break down of all the trades for the day, some of the trades taken are a bit off but very close. Youll see very clearly when I post the chart, Ill be back around 830PM EST to do that. Currently we are short from 1.7501 with are stop at 1.7639. There were some trades in between tho which as I said I will break down in about 2 hours.

-Sterling
Founder of Day Trading Forex Live
  • #204
  • Edited 6:36pm Oct 14, 2008 5:51pm | Edited 6:36pm
Quoting stersuhr
Ill be posting a break down of all the trades for the day, some of the trades taken are a bit off but very close. Youll see very clearly when I post the chart, Ill be back around 830PM EST to do that. Currently we are short from 1.7501 with are stop at 1.7639. There were some trades in between tho which as I said I will break down in about 2 hours.

-Sterling
Thanks Sterling,
I see why we have to take every trade. I sure thought our pair would keep rising, but we are doing great on the short after making 500 pips on the long. Nice!
Shouldn't the stop be at 1.7483? 9 pips over the high of the last formed candle? It just completed about 50 min ago and it is a new setup bar.
M
  • #205
  • Oct 14, 2008 7:20pm Oct 14, 2008 7:20pm
Quoting alllivemind
Thanks Sterling,
I see why we have to take every trade. I sure thought our pair would keep rising, but we are doing great on the short after making 500 pips on the long. Nice!
Shouldn't the stop be at 1.7483? 9 pips over the high of the last formed candle? It just completed about 50 min ago and it is a new setup bar.
M
Its 1.7482 for me I only have a 3 pip spread, but yes you are right. I was talking about the original stop loss on this short trade. Sorry, I should have been more specific. Daily chart and pip count coming up in about 20 minutes.

-Sterling
Founder of Day Trading Forex Live
  • #206
  • Edited 8:05pm Oct 14, 2008 7:42pm | Edited 8:05pm
1.) Trade #10 was closed out for +380 pips

2.) Trade #11 - The red arrow at point (2) on the chart is pointing to the setup bar. The blue arrow is the reversal bar. Price triggered are sell stop and stopped us out in the same bar. -80 pips

3.) Trade #12 - We are short from 1.7501. Your current orders in the market should be the following.

Stop loss - 1.7482

Potential Trade #13
Buy stop - 1.7482

Buy stops stop loss - 1.7385

I will be more than happy to answer any questions on the charts if you dont understand them. All I ask is that you have atleast read the rules and most of the thread. I have spent hours posting all last months trades and many questions can be answered from those.

With all the trades closed we are still -137 pips for the month. This does not include the trade that we are in now. The gap killed the performance for the beginning of this month. Ive decided to close all trades before your broker closes on friday and then re-enter sunday where the rules tell you to enter. If no new signal is triggered over the weekend gap then you re-open the position you closed on Friday. Without that little mishap we would be well positive, and after thinking about it there is no reason to leave it open. Will you miss some gaps your way, yes, but you will also miss the ones against you. Leaving money in the market over the weekend is leaving it to chance, and this system is to well designed to have a rule that relies on chance. As always trade this to whatever risk you allow, but as for the offical performance it will reflect this slight adjustment.

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: trade #11.gif Size: 50 KB
Founder of Day Trading Forex Live
  • #207
  • Oct 14, 2008 7:55pm Oct 14, 2008 7:55pm
stersuhr i think that your buy stop price and you short sl are off of the wrong bar.. You are taking you price off the 6 o clock bar and you should be taking it off the 2 o clock bar or wait until the current bar closes at 10. I hope that i am right or i will feel like a dumb ass
  • #208
  • Oct 14, 2008 8:03pm Oct 14, 2008 8:03pm
Quoting Hiranya
stersuhr i think that your buy stop price and you short sl are off of the wrong bar.. You are taking you price off the 6 o clock bar and you should be taking it off the 2 o clock bar or wait until the current bar closes at 10. I hope that i am right or i will feel like a dumb ass
Yeah your right I was looking at my fxpro broker which has different close times on the 4H chart. Thats for the heads up Hiranya! Ill adjust it right now.

-Sterling
Founder of Day Trading Forex Live
  • #209
  • Oct 14, 2008 8:07pm Oct 14, 2008 8:07pm
Quoting stersuhr
Yeah your right I was looking at my fxpro broker which has different close times on the 4H chart. Thats for the heads up Hiranya! Ill adjust it right now.

-Sterling
Glad i can help and i am glad that i did not make my self look like a ass hole by going up against the masta
  • #210
  • Oct 14, 2008 8:56pm Oct 14, 2008 8:56pm
Quoting Hiranya
Glad i can help and i am glad that i did not make my self look like a ass hole by going up against the masta
lol the "masta", not really. I just thought I should let everyone in on a little secret...Hiranya is my cousin. He is actuall the one who turned me on to the thread, "a basic trading system" or whatever the name of that thread is. The originator of that thread is Effilang, and this system has its root in that system. That being said he knows this system as well as I do and therefore is well quaified to answer any questions regarding this system. He also helped me come up with the rules to this system and backtest all different pairs to come up with the final product, which is thee, "4H 5EMA System" that you see today. Anyway trade #12 is nicely in profit. Remember to adjust your trade according to the rules come 10PM EST.

-Sterling
Founder of Day Trading Forex Live
  • #211
  • Oct 14, 2008 10:02pm Oct 14, 2008 10:02pm
Sterling,
Thanks for your patience, I thought I understood things, but now I understand better. Your chart and explanation seem quite clear.
  • #212
  • Edited 4:35am Oct 15, 2008 12:35am | Edited 4:35am
Sterling,

I am not sure if anyone has asked you this questions but i am curious;

1) What to do when you have similar signals showing up repeatedly along the direction of the trend. I mean, u have a long signal during an uptrend and there is no reverse signal but a similar signal as the trade progresses. Do you exit the first trade and enter the second one OR do you allow the first trade to run while also entering in on the second one???

2) When you enter a trade do you place the stop-loss order immediately or do you wait for the candle to complete (i mean the retracement candle after the setup candle). 1st Scenario: Assuming you place the stop-loss immediately and your trade gets stopped out but eventually continues in the initial direction you would have been stopped out and would have missed out on the trade. 2nd Scenario: You wait for the candle to complete before placing the exiting in the new direction and simultaneously opening the reverse order but what if the candle goes way against your direction of trade before you exit causing a substantial loss?

PS: I believe when you put the stop-loss order you also have a standing order to take the reverse direction.
Less is more...
  • #213
  • Oct 15, 2008 7:54am Oct 15, 2008 7:54am
Quoting ajantala
Sterling,

I am not sure if anyone has asked you this questions but i am curious;

1) What to do when you have similar signals showing up repeatedly along the direction of the trend. I mean, u have a long signal during an uptrend and there is no reverse signal but a similar signal as the trade progresses. Do you exit the first trade and enter the second one OR do you allow the first trade to run while also entering in on the second one???

2) When you enter a trade do you place the stop-loss order immediately or do you wait for the candle to complete (i mean the retracement candle after the setup candle). 1st Scenario: Assuming you place the stop-loss immediately and your trade gets stopped out but eventually continues in the initial direction you would have been stopped out and would have missed out on the trade. 2nd Scenario: You wait for the candle to complete before placing the exiting in the new direction and simultaneously opening the reverse order but what if the candle goes way against your direction of trade before you exit causing a substantial loss?

PS: I believe when you put the stop-loss order you also have a standing order to take the reverse direction.

1.) I just keep the original trade. Exiting the first trade and putting the same trade on wouldnt make sense, because you would just be paying the spread for a second time. Hope that makes sense.

2.) I always put the stop on as soon as I put a trade on. Sometimes you do have the trade triggered and it stops you out in the same bar, but its not very often. Also you only put a trade to go the other direction once the reversal bar closes, not right when you put the trade on.

Hope this helps.

-Sterling
Founder of Day Trading Forex Live
  • #214
  • Oct 15, 2008 8:09am Oct 15, 2008 8:09am
Quoting stersuhr
1.) I just keep the original trade. Exiting the first trade and putting the same trade on wouldnt make sense, because you would just be paying the spread for a second time. Hope that makes sense.

2.) I always put the stop on as soon as I put a trade on. Sometimes you do have the trade triggered and it stops you out in the same bar, but its not very often. Also you only put a trade to go the other direction once the reversal bar closes, not right when you put the trade on.

Hope this helps.

-Sterling
Hi Sterling

while you are here could you clarify the following:

The current bar which will close in 1 hour is a set-up bar when closed for going short and we have our long trade stop 5 pips below it, if the next bar proves to be a reversal bar, our stop will be hit, now you mentioned that we do not enter the reverse trade until the reversal bar closes.

If the reversal bar which opens in around 1 hour closes much lower say at 1.7450, how do we enter our short trade?
Thanks a lot
Regards
  • #215
  • Oct 15, 2008 8:14am Oct 15, 2008 8:14am
Quoting stersuhr
1.) I just keep the original trade. Exiting the first trade and putting the same trade on wouldnt make sense, because you would just be paying the spread for a second time. Hope that makes sense.

2.) I always put the stop on as soon as I put a trade on. Sometimes you do have the trade triggered and it stops you out in the same bar, but its not very often. Also you only put a trade to go the other direction once the reversal bar closes, not right when you put the trade on.

Hope this helps.

-Sterling
Alright let me get this straight. For the first question, if you have another trade going in the same direction, do you take the another trade on the other signal while still keeping the previous trade OR you do not take it at all but maintain with the first trade.

I get your gist on the second question but i need to clearify your answer for the first. Sorry of i sound obstinate, just need some more detail.
Less is more...
  • #216
  • Oct 15, 2008 8:22am Oct 15, 2008 8:22am
@ stersuhr;

I am posting an IBFx GBPUSD H4 chart and need some clarification in regards to moving the SL. Does price need to take out previous high candle which would show a higher high, ("HH"), to constitute the right setup to move the SL. Or is a higher low, ("HL"), enough?

Edit: #1 checkbox is where I entered long.

TimeFreedom
Attached Image
  • #217
  • Oct 15, 2008 9:01am Oct 15, 2008 9:01am
Quoting ajantala
Alright let me get this straight. For the first question, if you have another trade going in the same direction, do you take the another trade on the other signal while still keeping the previous trade OR you do not take it at all but maintain with the first trade.

I get your gist on the second question but i need to clearify your answer for the first. Sorry of i sound obstinate, just need some more detail.
You maintain your first trade untill you get stoped out and then should have a short stop in the market at you stop loss for your long. So you do not put any more in to your first trade
  • #218
  • Oct 15, 2008 11:14am Oct 15, 2008 11:14am
Did every one get in on this nice short..If every one followed the system like they should every one should be up 90pips just today and that is not counting this short that we are in. Today will be a good day.
  • #219
  • Oct 15, 2008 11:45am Oct 15, 2008 11:45am
Quoting ajantala
Alright let me get this straight. For the first question, if you have another trade going in the same direction, do you take the another trade on the other signal while still keeping the previous trade OR you do not take it at all but maintain with the first trade.

I get your gist on the second question but i need to clearify your answer for the first. Sorry of i sound obstinate, just need some more detail.
If your long you dont exit until you get stopped out at the original stop loss or until you get short signal. If your short you dont exit until it gets stopped out at the original stop loss or you get a signal to go long.

If your long and you get another signal to go long you do nothing. Same in the case of a short. Hope this clears things up.

-Sterling
Founder of Day Trading Forex Live
  • #220
  • Oct 15, 2008 11:48am Oct 15, 2008 11:48am
Quoting stersuhr
If your long you dont exit until you get stopped out at the original stop loss or until you get short signal. If your short you dont exit until it gets stopped out at the original stop loss or you get a signal to go long.

If your long and you get another signal to go long you do nothing. Same in the case of a short. Hope this clears things up.

-Sterling
As a recommendation, you could probably add a lot if you get two or more consecutive signals.
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