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4H 5EMA System

  • #221
  • Oct 15, 2008 11:52am Oct 15, 2008 11:52am
Quoting TimeFreedom
@ 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
You would have moved your stop 5 pips below the low of the candle with the 2 pointing at the candle. The candle with the 1 pointing to it did not break the higher EMA by 5 pips and therefore could not be used as a proper setup bar to go short, so as I said above you would have waited and candle 2 did break the 5 EMA by more than 5 pips.

Trades using a 4H close of 2,6,10 AM and PM did much better in the last few days. I really dont think in the long term that you using different close times on your 4H chart will hurt you, you just might lose some trades that the room makes money on and you might win on some I lose on. Over time im sure they even out.

Hope this makes sense, if you need further clarification just ask.

-Sterling
Founder of Day Trading Forex Live
  • #222
  • Oct 15, 2008 12:01pm Oct 15, 2008 12:01pm
Quoting howard
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
Good question. You DO put you entry to go short in if its a proper "setup" which it was. What is meant by not putting an entry to go the other way in the market until the reversal bar closes, is in reference to the times when a "setup" to go the other way is not there. Basically you take every trade signal that is givin.

Heres an example. If your long from 1.7000 and your stop is 1.6950 and you get triggered into the trade, you wouldnt put the order to go the other way in if you were watching and saw the buy order got triggered. You would wait until that reversal bar that triggered the buy to close and then put the reversal entry in.

That last short was different tho, it was a actual signal so you exit your long 5 pips below the low and enter short, with your stop loss 5 pips + the spead above the current setup bar. Also regarding your question, you would not put a buy stop at the current shorts stop loss untl the current reversal bar closes at 2PM EST. Hope this makes sense, if not feel free to ask again. At the beginning of this thread I put charts and and explained entries and exits for every trade last month so that may help to understand the system better. It may seem a little complicated but, once you fully understand it you will see its very simple.

-Sterling
Founder of Day Trading Forex Live
  • #223
  • Oct 15, 2008 12:07pm Oct 15, 2008 12:07pm
Quoting Ronald Raygun
As a recommendation, you could probably add a lot if you get two or more consecutive signals.
Good recomendation Ronald. As far as different MM stratagies like this, well, thats up to the traders own rick tollerance. This system only wins at best 60% of the time so knowing that if you loose 3 times or more in a row, odds are a winner is coming up fast, and hopefully like we are having now a sting of good winners.

My money managment: I trade 1 standard lot per $20,000 in my account. Soon I will only be trading 1 standard lot per $40,000 in my account. I believe the more money you have the more you should protect it, and that is why im doing that. Even at 1 lot per $40,000 and an average of 600 pips a month you still are making 15% on you account monthly which people would kill to make that much consistantly!

-Sterling
Founder of Day Trading Forex Live
  • #224
  • Oct 15, 2008 2:08pm Oct 15, 2008 2:08pm
There is nothing like being up 260 pips for the day.. I love this system. I hope every one is having a good trade day
  • #225
  • Oct 15, 2008 2:30pm Oct 15, 2008 2:30pm
I am following your thread from the very beginning. Immediately when i saw it i knew it is my cup of tea. I started on 2008.10.09 with demo 5000USD account and traded 1 lot (i know its stupid size but its demo). Right now i have closed 10333USD and another 1800 floating. That is over 100% per 5 days. Awesome. Even with mini lot it would be over 10%.

Right now I am working on EA so i can easily test some ideas i have to improve your system. Like opening trades only in the direction of supreme trend.

Thank you very much for your ideas, effort and good will to share with us. Respect.

Lukas
  • #226
  • Oct 15, 2008 2:41pm Oct 15, 2008 2:41pm
lukas i would really like to see that EA when you are done with it. I would love to see how many pips that could bring.
  • #227
  • Oct 15, 2008 3:14pm Oct 15, 2008 3:14pm
Good day guys! Today will offically bring us back into positive territory for the month. From now on not carrying a trade into the weekend should keep us safe. If not for that little error we would be very green for the month. But as with any system, it CAN be improved and now we know. That to me shows how good this system is, to take a big loss on a not so smart rule, and it still manages to start turning positive pips. Here are the trades from today. The red arrows indicate the setup bar and the blue arrows indicate the reversal bar.

As of yesterday we were offically -137 pips down.

Trade #12 - +49 pips

Trade #13 - +29 pips

Trade #14 - +220 pips and floating. Your stop for this trade should be at 1.7603, and you should have the following order in for trade #15 as well.

Trade #15 -
Buy stop - 1.7603
Stop loss - 1.7329

When this next bar closes at 6PM EST we will be able to move the stop way down and lock in profits. Until then the stop stays 5 pips + spread above the bar that started at 2PM EST. Definatly happy trading for anyone that has taken the last few signals!

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: trade #14.gif Size: 51 KB
Founder of Day Trading Forex Live
  • #228
  • Oct 15, 2008 5:06pm Oct 15, 2008 5:06pm
We are currently short from 1.7491

Trade #14 update

New stop loss - 1.7400



Potential Trade #15

Buy stop - 1.7400

Buy stops stop loss - 1.7130

Well were atleast going to make 91 pips on this trade. I suspect the G/U has some more downside tho. Atleast I believe it will make a lower low this bar, thus allowing us to move are stop closer to lock in more profit.

-Sterling
Founder of Day Trading Forex Live
  • #229
  • Oct 16, 2008 6:13am Oct 16, 2008 6:13am
Just want to confirm I understand the SL placement rules. Please take a look at the screen shot of GBPUSD, H4 on IBFx and let me know when to move the SL. My understanding is that we need to wait for a candle to go above the 5EMA by 5 pips to move the current SL. And once we get the candle that moves above 5EMA by 5 pips we can also place a reversal Sell Stop trade?

Please advise,

TimeFreedom
Attached Image
  • #230
  • Oct 16, 2008 7:59am Oct 16, 2008 7:59am
Quoting TimeFreedom
Just want to confirm I understand the SL placement rules. Please take a look at the screen shot of GBPUSD, H4 on IBFx and let me know when to move the SL. My understanding is that we need to wait for a candle to go above the 5EMA by 5 pips to move the current SL. And once we get the candle that moves above 5EMA by 5 pips we can also place a reversal Sell Stop trade?

Please advise,

TimeFreedom
You can put your reversal trade in now, you do that as soon as the reversal bar closes. As far as moving your stop your correct you dont do that until a setup bar is closed, and that would mean that price has broken the higher 5 EMA.

-Sterling
Founder of Day Trading Forex Live
  • #231
  • Oct 16, 2008 4:43pm Oct 16, 2008 4:43pm
Quoting stersuhr

Trade #12 - +49 pips

Trade #13 - +29 pips

Trade #14 - +220 pips and floating.

-Sterling
Sterling,

I am reading the charts in order to recreate the last orders. Just to make sure if I understand, should not trade #12 be +39 pips profit? For me the S/L should have been on 1.7462? In this sense, how order #12 got closed -- because of its S/L or because order #13 was opened?

Thanks for your time.
  • #232
  • Oct 16, 2008 5:48pm Oct 16, 2008 5:48pm
Quoting fx-char
Sterling,

I am reading the charts in order to recreate the last orders. Just to make sure if I understand, should not trade #12 be +39 pips profit? For me the S/L should have been on 1.7462? In this sense, how order #12 got closed -- because of its S/L or because order #13 was opened?

Thanks for your time.
I will be back at 10PM EST or earlier to answer questions...gotta fun now. Ill answer the PM's too, and post the chart for the day.

-Sterling
Founder of Day Trading Forex Live
  • #233
  • Oct 16, 2008 9:24pm Oct 16, 2008 9:24pm
Quoting fx-char
Sterling,

I am reading the charts in order to recreate the last orders. Just to make sure if I understand, should not trade #12 be +39 pips profit? For me the S/L should have been on 1.7462? In this sense, how order #12 got closed -- because of its S/L or because order #13 was opened?

Thanks for your time.
Your right trade #12 is +39 pips not +49. Trade #12 was closed because #13 was opened. Remember the rules say you only exit when a signal to go the other direction is given. When this happens you exit the current trade (#12) and open in the direction of the new signal (#13). Hope this clears things up, and thanks for checking my math on trade #12 I was off by 10 pips Hope this clears things up!

-Sterling
Founder of Day Trading Forex Live
  • #234
  • Oct 16, 2008 9:44pm Oct 16, 2008 9:44pm
Trade #14 got stopped out for +198 pips. I will explain this because I will probably have some questions on that

Trade #15 -90 pips

Trade #16 - pending

Potential Trade #17 -

Sell stop - 1.7236

Sell stops stop loss - 1.7360

At trade #14 we had two huge bars down, the last of which was the lowest low of the move down, and thus was are setup bar. The next two bars did not make a proper setup bar and so the trade was cancelled per the rules. Being that the trade was cancelled, we now look for new setup bars. This came on the third bar after the second huge bar down (trade #15). Hope all this makes sense, as always if not please ask.

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: g.gif Size: 63 KB
Founder of Day Trading Forex Live
  • #235
  • Oct 16, 2008 10:42pm Oct 16, 2008 10:42pm
simple system
{Promotion Removed}
  • #236
  • Edited 6:52am Oct 17, 2008 12:37am | Edited 6:52am
Hi Sterling. When the trade is placed? After the reversal bar is closed or durring the reversal bar is opened and it's high is lower then setup bar's high(for a long position) / higher low then setup bar's low(for short)?
  • #237
  • Oct 17, 2008 1:44am Oct 17, 2008 1:44am
Hey all,

with full permission by Sterling i dare to present you here indicator 4H5EMA which should reflect Sterling's rules. I ask you to review whole thing and let me know your thoughts. I am ready to change anything according to your concerns.

Although I tried to be as precise as possible you my find some discrepancies. Main difference i found in last Sterling's comment. When he mentioned that if within 2 following bars proper reversal bar is not formed setup bar is canceled and whole process starts _after_ second improper reversal. Contrary I consider every bar.

Since I realized this today i present you indicator as is. If you want i can change it.

Be nice.


Lukas
Attached File(s)
File Type: ex4 4H5EMA.ex4   8 KB | 583 downloads
  • #238
  • Oct 17, 2008 3:00am Oct 17, 2008 3:00am
Quoting xluke
Hey all,

with full permission by Sterling i dare to present you here indicator 4H5EMA which should reflect Sterling's rules. I ask you to review whole thing and let me know your thoughts. I am ready to change anything according to your concerns.

Although I tried to be as precise as possible you my find some discrepancies. Main difference i found in last Sterling's comment. When he mentioned that if within 2 following bars proper reversal bar is not formed setup bar is canceled and whole process starts _after_ second improper reversal. Contrary I consider every bar.

Since I realized this today i present you indicator as is. If you want i can change it.

Be nice.


Lukas
Hi Lukas,

Your indicator is quite promising. Surely, the 2 failed reversal bars rule must be taken into account. I will be waiting for its update.
Would it be possible that you send me the source?
  • #239
  • Edited 3:31am Oct 17, 2008 3:10am | Edited 3:31am
Quoting fx-char
Hi Lukas,

Your indicator is quite promising. Surely, the 2 failed reversal bars rule must be taken into account. I will be waiting for its update.
Would it be possible that you send me the source?

hey fx-char,

i have no problem adding 2 reversal bars rule but can you elaborate why? Out of scratch it seems to me i have better performance than original rules (even when by mistake

And lets don't call it my indicator. Its Sterling's. I just did the dirty work. Right now i am learning EAs so we can back test.

Lukas

EDIT: and yes you can have the source code. But right now its not very tidy gimme some time pls. I learned MQL4 last weekend
  • #240
  • Oct 17, 2008 3:59am Oct 17, 2008 3:59am
Quoting xluke
hey fx-char,

i have no problem adding 2 reversal bars rule but can you elaborate why? Out of scratch it seems to me i have better performance than original rules (even when by mistake

And lets don't call it my indicator. Its Sterling's. I just did the dirty work. Right now i am learning EAs so we can back test.

Lukas

EDIT: and yes you can have the source code. But right now its not very tidy gimme some time pls. I learned MQL4 last weekend

Well, the performance might be better, I don't know. But from first sight, not taking into account that 2-bar rule changes the placement of subsequent orders.

Don't worry, take your time, I plan to start learning MQ4 over the weekend
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