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4H 5EMA System

  • #741
  • Oct 31, 2008 12:17am Oct 31, 2008 12:17am
Hi sterling, just a quick line to say thank you for the incredible system that you are providing to everyone here, and the patience to answere all the questions, thank you also to everyone else that has contributed throughout this thread.
  • #742
  • Oct 31, 2008 12:17am Oct 31, 2008 12:17am
Quoting Kosomolate
the 00:00 bar on alpari just closed crossing the low 5EMA more than 5 pips touching the high 5EMA but not crossing it

what is the next thing to do?

- simply remain in the long position as in trade #29 cos the 16:00 bar has the lower low OR
- move the SL from the low of 00:00 bar to the low of the current 04:00 bar

may I have some confirmation

and another shady area to me is that sterling said we should wait for the reversal bar to close before placing our reversal trade, that is if we were stopped out and now that he said we should have our sell stop @ 1.6205

wont this sell stop trigger as soon as the trade got stopped out at this point?
Yes just remain long. Thats exactly it. When the long gets stopped out you would go short.

-Sterling
Founder of Day Trading Forex Live
  • #743
  • Oct 31, 2008 12:20am Oct 31, 2008 12:20am
Hi Sterling and Hiranya,
I'm having go at trading this on an Oil chart as well,
I just want to Clarify something, sorry if it has already been gone over before.

See Chart,
Sell Trade was taken at the top and currently in good profit, although it was entered a little late at the top manually.

As price went in profit, I have moved stop loss and pending buy reversal to above candle 1.

Since Candle 1. is the lowest low I still have the stop there, should I have moved it on further by now?

I have not as yet because the two candles following 2 and 3 did not make any lower lows, so now those two have past we look for a fresh one to place the stop above and also pending buy right? and this new one doesn't have to meet any other criteria than being 5 pip past the low EMA at any point?

So potentially now, Once candle 4 is complete as the new one and say stays as it is in the picture, even if it does not create lower low than candle 1, I will move my stop above it then or leave where it is until lower low than candle 1 is formed?

Many Thanks, Paul
Attached Image (click to enlarge)
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  • #744
  • Oct 31, 2008 12:21am Oct 31, 2008 12:21am
Quoting Hiranya
Well first the bar that was at 00:00 never hit the higher ema it was 8 pips below. I do not know what sterling has said about the reversal but any time that i put in a trade i have a reversal order in the market at the stop loss. besides that the 00:00 bar never made a lower low in other words you are in a long already so if that bar never made a lower low you are still in a long. I hope that clears up a little
I think you meant to say you dont put the reversal order in until the reversal bar closes. Hey im gonna call you in a minute so get your phone.

-Sterling
Founder of Day Trading Forex Live
  • #745
  • Oct 31, 2008 12:26am Oct 31, 2008 12:26am
Quoting viperzz
Hi Sterling and Hiranya,
I'm having go at trading this on an Oil chart as well,
I just want to Clarify something, sorry if it has already been gone over before.

See Chart,
Sell Trade was taken at the top and currently in good profit, although it was entered a little late at the top manually.

As price went in profit, I have moved stop loss and pending buy reversal to above candle 1.

Since Candle 1. is the lowest low I still have the stop there, should I have moved it on further by now?

I have not as yet because the two candles following 2 and 3 did not make any lower lows, so now those two have past we look for a fresh one to place the stop above and also pending buy right? and this new...
You will move it above 4 when it closes....4's low dosent not matter since the first reversal bar trade failed to trigger the buy. You should use the 50% retracement rule now for your current stop. Its on the front page rules with a link to the post for a better explination.

-Sterling
Founder of Day Trading Forex Live
  • #746
  • Oct 31, 2008 12:38am Oct 31, 2008 12:38am
Thanks Sterling- Ahh yes the 50% retracement rule can come in now because it's + 150 pips...more like + 400 pips!-
Thanks a lot!
  • #747
  • Oct 31, 2008 12:42am Oct 31, 2008 12:42am
Quoting viperzz
Thanks Sterling- Ahh yes the 50% retracement rule can come in now because it's + 150 pips...more like + 400 pips!-
Thanks a lot!
No probelm bud, glad to see you makin some money!!!!

-Sterling
Founder of Day Trading Forex Live
  • #748
  • Oct 31, 2008 2:01am Oct 31, 2008 2:01am
Quoting stersuhr
No probelm bud, glad to see you makin some money!!!!

-Sterling
Sterling,
Are you/ your programmer confident that an EA can be made to follow your rules exactly?? I mean can the EA handle all things specified some being more complex and discretionary such as the 50% rule? and weekend close time plus deciding weather or not to re-enter and continue the trade the following week?
  • #749
  • Oct 31, 2008 2:11am Oct 31, 2008 2:11am
Quoting viperzz
Sterling,
Are you/ your programmer confident that an EA can be made to follow your rules exactly?? I mean can the EA handle all things specified some being more complex and discretionary such as the 50% rule? and weekend close time plus deciding weather or not to re-enter and continue the trade the following week?

Well the good thing is if the programmer is good enough none of the rules require a human decision. They all can be programmed. If the guy that is making it now cant do it Ferrufx can. I feel like the person making it now is very capable.

-Sterling
Founder of Day Trading Forex Live
  • #750
  • Edited 2:29am Oct 31, 2008 2:15am | Edited 2:29am
Well we are short now, and both timeframes got short below the low at 1.6207. Timeframe A (for Alpari) lost 264, time frame B (for i B fx?) lost 289. The 8 hour is still short from 1.6358 with no chop. And that's the weather!
  • #751
  • Oct 31, 2008 2:18am Oct 31, 2008 2:18am
Quoting alllivemind
Well we are short now, and both timeframes got short below the low at 1.6207. Timeframe A (for Alpari) lost 264, time frame B (for iBfx?) lost 289. The 8 hour is still short from 1.6358 with no chop. And that's the weather!
You might just turn me into a 8H timeframe believer...mike right?

-Sterling
Founder of Day Trading Forex Live
  • #752
  • Oct 31, 2008 2:29am Oct 31, 2008 2:29am
Quoting stersuhr
You might just turn me into a 8H timeframe believer...mike right?

-Sterling
Well last few trades it's been miraculous, but go back a bit on the chart before this big drop, and there's a lot of chop. The 8 hour has also been great lately on E/J. This system, I must thank you, has given me a new confidence in trading...
-Michael
  • #753
  • Oct 31, 2008 2:46am Oct 31, 2008 2:46am
Quoting alllivemind
Well last few trades it's been miraculous, but go back a bit on the chart before this big drop, and there's a lot of chop. The 8 hour has also been great lately on E/J. This system, I must thank you, has given me a new confidence in trading...
-Michael
No problem man glad to help...the good thing is the system is the same on any time frame, so whatever your preference the system remains the same. 8H, 4H, 1H hell even the 5M it works pretty well on from 1-4 in the morning. It works good from 8-11 on the 5M too.

-Sterling
Founder of Day Trading Forex Live
  • #754
  • Oct 31, 2008 3:08am Oct 31, 2008 3:08am
Quoting stersuhr
No problem man glad to help...the good thing is the system is the same on any time frame, so whatever your preference the system remains the same. 8H, 4H, 1H hell even the 5M it works pretty well on from 1-4 in the morning. It works good from 8-11 on the 5M too.

-Sterling
Are those times EST? I have been paper trading on a 5 min, and it does seem to work well
  • #755
  • Oct 31, 2008 3:16am Oct 31, 2008 3:16am
Quoting stersuhr
Well the good thing is if the programmer is good enough none of the rules require a human decision. They all can be programmed. If the guy that is making it now cant do it Ferrufx can. I feel like the person making it now is very capable.

-Sterling
That is great to hear.
  • #756
  • Oct 31, 2008 3:28am Oct 31, 2008 3:28am
Hi Sterling

I thought if reversal bar on long trade makes higher high and lower high then we can move up the stop loss to 5 pip below the low of reversal bar. I did not know that the reversal bar has to qualify as a setup bar as well.It is clear now.
I also wanted to ask you the rule where it says if you get stopped out of your reversal trade you do not put another reversal trade in the market,when does this rule applies ? Please could you explain with the example.

Thanks a lot Sterling, you are a great help.
Bhupinder
  • #757
  • Edited 5:44am Oct 31, 2008 4:44am | Edited 5:44am
27/10

Trade no 1 closed +680

30/10

Trade no 2

Short at 1.6308
Stop at 1.6683

Stop moved to 1.6508
Regards
  • #758
  • Oct 31, 2008 9:44am Oct 31, 2008 9:44am
27/10

Trade no 1 closed +680

30/10

Trade no 2

Short at 1.6308
Stop at 1.6683

Stop moved to 1.6508

Stop safely moved to 1.6294
Regards
  • #759
  • Oct 31, 2008 1:28pm Oct 31, 2008 1:28pm
I had to close my week out a little early because I wont be at terminal later. So here it is.

5 Total trades

3 winners
2 losers

1033 Pips for the week

Thats Awesome.

Including last week when I started on the 22nd.
I lost 2 other trades but only for -278.

Running total of 755 pips.

Thanks for sharing your system.

p.s. I started this after the big move south. Probably could not have picked a worse time to start!
  • #760
  • Oct 31, 2008 1:47pm Oct 31, 2008 1:47pm
Quoting alllivemind
Are those times EST? I have been paper trading on a 5 min, and it does seem to work well
Yup EST.

-Sterling
Founder of Day Trading Forex Live
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