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4H 5EMA System

  • #661
  • Oct 29, 2008 12:29pm Oct 29, 2008 12:29pm
EJ is going up, by the system I am short. The recent high on the 10/28 20:00 candle has not been broken. My reversal stop is 10 pips above that. Am I doing that right? Any Feedback?
  • #662
  • Oct 29, 2008 12:50pm Oct 29, 2008 12:50pm
sterling said we are flat today, does that mean that after the stop out, there has not been any trade that has triggered

and how often does this flatness happen in a month?

look at that big long position on G/U isnt there a way to trade such? we are just looking and the pips are rolling into some other guy's purses.
John 3:16 - From THIS love no power on earth can me sever.
  • #663
  • Oct 29, 2008 12:53pm Oct 29, 2008 12:53pm
hey guys just talked to sterling he will be home in a little bit to answer the questions, i told them there were quite a few. As of right now we are short from 1.6274 with are stop at 1.6482. Hopefully we dont get whipsawed again, but if we do were still well positive for the month.
  • #664
  • Oct 29, 2008 12:56pm Oct 29, 2008 12:56pm
Quoting DJOetzi
Hi Howard,
how do you get the 8H charts with Metatrader. I am using Alpari(UK).

Greetings DJOetzi
Hi

I posted an indicater called "period Converter", download it from the paperclip at the top of this thread and use it as I explained in a post a few pages back
Regards
  • #665
  • Oct 29, 2008 12:57pm Oct 29, 2008 12:57pm
Quoting alllivemind
EJ is going up, by the system I am short. The recent high on the 10/28 20:00 candle has not been broken. My reversal stop is 10 pips above that. Am I doing that right? Any Feedback?
On the E/J you long reversal trade should have been triggered and you should be long with a stop of 121.33 if your using 5 pips below. If your using 10 pips below the stop should be 121.28.
  • #666
  • Oct 29, 2008 12:59pm Oct 29, 2008 12:59pm
Quoting Hiranya
hey guys just talked to sterling he will be home in a little bit to answer the questions, i told them there were quite a few. As of right now we are short from 1.6274 with are stop at 1.6482. Hopefully we dont get whipsawed again, but if we do were still well positive for the month.
I was at a meeting and missed that short, so I put in the order rather than short a market that's going up! So I'm still long from 1.6274, and if we set a new high I'll just treat that like a setup bar that it is.
  • #667
  • Oct 29, 2008 1:02pm Oct 29, 2008 1:02pm
Quoting Hiranya
On the E/J you long reversal trade should have been triggered and you should be long with a stop of 121.33 if your using 5 pips below. If your using 10 pips below the stop should be 121.28.
Thanks,
But where would my long entry be? I thought I understood this system. Which candle would have been the reversal, as the high still has not been broken, and the lower band has not been touched?
Thanks
Michael
  • #668
  • Edited 1:55pm Oct 29, 2008 1:45pm | Edited 1:55pm
Quoting howard
Hi Sterling

The 8hr chart opens and you can customise and apply your indicators onto it as usual
Note that the 4hr chart should be running all the time to have the 8hr chart running

Please let me know if there is any problem
I just succeeded in loading the chart correctly, my questions now are:
1. are we to apply the same rules of 4HR chart to 8HR or is there any slight changes.
2. from the chart I attached does it mean that you have been long since 27.oct 2008?

the red arrow is the set up bar and the blue arrow is the reversal bar which successfully triggered the long position you have been since

if am wrong correct me and enlighten me as well

if that is true then lets see to this 8HRs thing

pls Howard you are the one who has been using it, how is it?

Sterling you said you will backtest it, also how is it?
Attached Image (click to enlarge)
Click to Enlarge Name: 8hr chart2.gif Size: 11 KB
John 3:16 - From THIS love no power on earth can me sever.
  • #669
  • Oct 29, 2008 1:54pm Oct 29, 2008 1:54pm
Quoting howard
Hi

I posted an indicater called \\\"period Converter\\\", download it from the paperclip at the top of this thread and use it as I explained in a post a few pages back
Hi howard,

it works. Many thanks. Good work!
DJOetzi
  • #670
  • Edited 7:59pm Oct 29, 2008 2:02pm | Edited 7:59pm
Quoting Kosomolate
I just succeeded in loading the chart correctly, my questions now are:
1. are we to apply the same rules of 4HR chart to 8HR or is there any slight changes.
2. from the chart I attached does it mean that you have been long since 27.oct 2008?

the red arrow is the set up bar and the blue arrow is the reversal bar which successfully triggered the long position you have been since

if am wrong correct me and enlighten me as well

if that is true then lets see to this 8HRs thing

pls Howard you are the one who has been using it, how is it?

Sterling you said you will backtest it, also how is it?
Kos,
I am trading the 8 hr live with only 4 microlots, but I am long at 1.5523 since the reversal bar 10/27 8:00. More risk, wider stops, but no whipping, I'm still long! In 3 hours I'll move my Stop up under this current bar.
I believe we are awaiting for a reliable EA before we can do anything but a manual backtest. I also believe for those testing and trend following system that it is not accuurate to test these last 2 months, some of the most volitile in history. It will be great results for any system that relies on momentum. We need a several year test and hopefully that will determine if the rules for 8hr and EJ or whatever should change and be optimized. In the meantime I'm just going with low position size doing hands on research.
I am not afraid as I know that this environment is great for this system.
Plus its only 4 microlots. The strict Sterling method, I trade with 20 microlots.
M

ps: We are about 50% back from the high set on 10/20. Also, the 38 of the high on 9/25 is very close to the 62 of the 10/20 high, just a little bit above where we are now.
  • #671
  • Oct 29, 2008 2:22pm Oct 29, 2008 2:22pm
hi! allivemind

you are very correct, I was just wondering if any one has gone far with the 8HR chart and the E/J.

I noticed that there is a lot of bars crossing both high and low EMA i.e a lot of unqualified bars.

perhaps the EMA period has to be adapted to the TF

any way thanks for the explanation all the same, I am anxiously waiting for this EA and other adjustments

cheers
John 3:16 - From THIS love no power on earth can me sever.
  • #672
  • Oct 29, 2008 2:41pm Oct 29, 2008 2:41pm
Quoting Kosomolate
I just succeeded in loading the chart correctly, my questions now are:
1. are we to apply the same rules of 4HR chart to 8HR or is there any slight changes.
2. from the chart I attached does it mean that you have been long since 27.oct 2008?

the red arrow is the set up bar and the blue arrow is the reversal bar which successfully triggered the long position you have been since

if am wrong correct me and enlighten me as well

if that is true then lets see to this 8HRs thing

pls Howard you are the one who has been using it, how is it?

Sterling you said you will backtest it, also how is it?
That is correct, the 8hr system has been long from 1.5668 on the 27th. and in 1 hour 19 mins the stop will move to 1.6264, at the moment stop is at 1.5963

I am applying exactly the same 4hr rules to 8hr.
Regards
  • #673
  • Oct 29, 2008 3:47pm Oct 29, 2008 3:47pm
Hi Howard
Thanks for Period converter. I am able to load the 8Hour chart but It does not seem to change the price, it is stuck at one price. What can i do to get this solved.
Thanks in advance
Bhupinder
  • #674
  • Oct 29, 2008 3:52pm Oct 29, 2008 3:52pm
Quoting alllivemind
Thanks,
But where would my long entry be? I thought I understood this system. Which candle would have been the reversal, as the high still has not been broken, and the lower band has not been touched?
Thanks
Michael
Your still in a sell so your stop is still in the original location (the red line).
Attached Image (click to enlarge)
Click to Enlarge Name: ej.gif Size: 50 KB
Founder of Day Trading Forex Live
  • #675
  • Oct 29, 2008 3:57pm Oct 29, 2008 3:57pm
Im gonna eat and then post the chart for the day. I think the chart will answer all the questions people had, but if it dosent please ask after I post the chart and ill be more than happy to answer them all...be back in 20 min.

-Sterling
Founder of Day Trading Forex Live
  • #676
  • Oct 29, 2008 3:59pm Oct 29, 2008 3:59pm
Quoting stersuhr
Your still in a sell so your stop is still in the original location (the red line).
Thanks! That's exactly where I am, I must have misunderstood your other post..
  • #677
  • Oct 29, 2008 4:27pm Oct 29, 2008 4:27pm
Trade #25 was stopped out for -117 pips and brought the current pips count for the month down to +669.

Trade #26 - We went short at 1.6274 and have a current stop of 1.6482

I havent had much time to work on backtesting the 8H candles. I do know that it is profitable but you might be able to get away with trading other more volitale pairs such as the G/Y if you use 8H candles. Its all something that is going to take time and effort. I will try to do as much as I can but I usually scalp the EUR session and with everything else my time is somewhat limited.

I do have a EA on the way. Someone PM'd me and said they were making one. He sounds like he really understands the system and knows whats hes doing with coding. He said it was done a few days ago, and he is de-bugging it now. Im not sure how many days that is going to take but as soon as hes done im sure he will let me know.

-Sterling
Attached Image (click to enlarge)
Click to Enlarge Name: trade #25,#26.gif Size: 49 KB
Founder of Day Trading Forex Live
  • #678
  • Oct 29, 2008 5:34pm Oct 29, 2008 5:34pm
Sterling

Have you ever thought about increasing the static 5pips that you add to the spread...I know of atleast 3 losing trades over the past month that would have been eliminated by doing this.

This would will not change the way the system works and can be implemented in times of increased market volitility and then moved back when things settle down.

With trading the 4hr timeframe this minimal pip change IMO is not that signifigant in profit/loss per trade but if it can increase winning trade% it may be useful.

Just a thought

Mike
  • #679
  • Oct 29, 2008 5:39pm Oct 29, 2008 5:39pm
Quoting earret
Sterling

Have you ever thought about increasing the static 5pips that you add to the spread...I know of atleast 3 losing trades over the past month that would have been eliminated by doing this.

This would will not change the way the system works and can be implemented in times of increased market volitility and then moved back when things settle down.

With trading the 4hr timeframe this minimal pip change IMO is not that signifigant in profit/loss per trade but if it can increase winning trade% it may be useful.

Just a thought

Mike
Mike I was thinking the same thing, I've seen a few trades which were just stopped out on th 5 pips causing loss, but then reverse back the other way and getting stop out again- But if they had say 10 to 15 pip extra on the end they would not have stopped and reverse but continues with original trend with more profitable results...
  • #680
  • Oct 29, 2008 5:45pm Oct 29, 2008 5:45pm
I guess if it works for you...it could also work against you.

It would certainly have to be tested over the long term to determine if it provides any edge.
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