Great GBP/USD Strategy for Swing Trades | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

5/6 candle swing low swing high Indicator 5 replies

Swing high / Swing low indictator+alert? 20 replies

High probability trade setups for day trades and swing trades 4 replies

Swing highs and swing lows 3 replies

swing high/swing low indicator and volume tic history 13 replies

Attachments: Great GBP/USD Strategy for Swing Trades
Exit Attachments

Great GBP/USD Strategy for Swing Trades

  • #1
  • First Post: Mar 1, 2007 10:02pm Mar 1, 2007 10:02pm
Dear all traders,

I have been asked in a few chat rooms what strategy do i use for swing trades.

Therefore i decided to share this strategy of mine to anyone who is interested.

Average 300-400 pips a month.

Things you need:
1) Daily Chart on GBP/USD
2) 4 hours Chart on GBP/USD
3) Slow Stochatics (13,5,5) on both charts
4) EMA 4, EMA13, EMA50 on the 4 hours chart

Look at 4 hours chart
Entry:
When the EMA4 first cross the EMA50 follow by EMA13 cross the EMA50, with a new open candle, place your entry with a stop loss of 50pips.
Exit :
When EMA4 reverse and cross the EMA13 on the next open candle.

They call this the NoBrainersTrade but i have modified a few things and add in a really good filter base on the daily charts with slow stochastics.

For Filter look at Daily chart
Valid Long Entry:
Slow %K above Slow %D on the Daily Chart
Valid Short Entry:
Slow %D above Slow %K on the Daily Chart

Very simple method but yet powerful.
It works on other pairs too but i found this work best on GBP/USD.


VyNNeR
  • #2
  • Mar 2, 2007 12:45am Mar 2, 2007 12:45am
Set this up real quick on a 4hr/40 day.....seems like a very strong method. Does the filter do a sufficient job to keep you out of sideways markets in your experience? I will do some backtesting as well.

Thanks for sharing...
  • #3
  • Mar 2, 2007 1:27am Mar 2, 2007 1:27am
Looks great on both charts.

Thanks and many pips!
  • #4
  • Mar 2, 2007 2:35am Mar 2, 2007 2:35am
Tx for sharing this, I set this up and looks like we might get a SHORT-GDP on the next candle. Am I correct?

http://img2.freeimagehosting.net/uploads/56c911f9e7.jpg
  • #5
  • Mar 2, 2007 3:11am Mar 2, 2007 3:11am
Quoting VyNNeR
Dear all traders,

I have been asked in a few chat rooms what strategy do i use for swing trades.

Therefore i decided to share this strategy of mine to anyone who is interested.

Average 300-400 pips a month.

Things you need:
1) Daily Chart on GBP/USD
2) 4 hours Chart on GBP/USD
3) Slow Stochatics (13,5,5) on both charts
4) EMA 4, EMA13, EMA50 on the 4 hours chart

Look at 4 hours chart
Entry:
When the EMA4 first cross the EMA50 follow by EMA13 cross the EMA50, with a new open candle, place your entry with a stop loss of 50pips.
Exit :
When EMA4 reverse and cross the EMA13 on the next open candle.

They call this the NoBrainersTrade but i have modified a few things and add in a really good filter base on the daily charts with slow stochastics.

For Filter look at Daily chart
Valid Long Entry:
Slow %K above Slow %D on the Daily Chart
Valid Short Entry:
Slow %D above Slow %K on the Daily Chart

Very simple method but yet powerful.
It works on other pairs too but i found this work best on GBP/USD.


VyNNeR
Neat system

Haven't backtested it, but looks simple to work. Why do you have the slow stoch on 4 hr chart? Can't see where you use it
  • #6
  • Mar 2, 2007 4:11am Mar 2, 2007 4:11am
Quoting Fx1618
Tx for sharing this, I set this up and looks like we might get a SHORT-GDP on the next candle. Am I correct?

http://img2.freeimagehosting.net/uploads/56c911f9e7.jpg
I saw this too and opened a position at the opening of the candle which does appear just after the crossing of the EMAs, and currently am up. Though the price may rebound at the double zero so I am unsure if I should take profit or continue as per this system.
  • #7
  • Mar 2, 2007 5:07am Mar 2, 2007 5:07am
Hi fellow traders,

Thank you all for your interest in this swing trade system.
I was a little busy just now trading my sweet little cable.
Caught +27 +50 +50 = +127 pips today.

I'll try to answer a few questions here now.

VyNNeR
  • #8
  • Mar 2, 2007 5:22am Mar 2, 2007 5:22am
Quoting learningtheropes
Set this up real quick on a 4hr/40 day.....seems like a very strong method. Does the filter do a sufficient job to keep you out of sideways markets in your experience? I will do some backtesting as well.

Thanks for sharing...

Dear learningtheropes,

i have been using this swing trade setup live since June 2006.
i only kept track the pips gain for 4 months and i stopped keeping track of it after that since im very sure this is a profitable system.

June2006
GBP/USD +202pips

July 2006
GBP/USD +169pips

Aug 2006
GBP/USD +389pips

Sep 2006
GBP/USD +306pips

The Daily Chart Stochastics can really filter those bad trades during sideway market.

I am currently using this system as my swing trades and other method for short term trades and i'm acumulating avg 600-1000 pips a month just on cable.

VyNNeR
  • #9
  • Mar 2, 2007 5:24am Mar 2, 2007 5:24am
Quoting Fx1618
Tx for sharing this, I set this up and looks like we might get a SHORT-GDP on the next candle. Am I correct?

http://img2.freeimagehosting.net/uploads/56c911f9e7.jpg
Dear FX618,

Yes this is a valid short as long as the PKS crosses on the daily chart when next candle opens.

VyNNeR
  • #10
  • Mar 2, 2007 5:26am Mar 2, 2007 5:26am
Quoting NKE
Neat system

Haven't backtested it, but looks simple to work. Why do you have the slow stoch on 4 hr chart? Can't see where you use it

Dear NKE,

The stoch on the 4 hours chart just gives me a better view on the price for oversold and overbought situation. You might then want to exit before the EMA4 and EMA13 crosses.
One could take profit at any S/R point.

VyNNeR
  • #11
  • Mar 2, 2007 5:28am Mar 2, 2007 5:28am
Quoting zamakhtar
I saw this too and opened a position at the opening of the candle which does appear just after the crossing of the EMAs, and currently am up. Though the price may rebound at the double zero so I am unsure if I should take profit or continue as per this system.

Dear Zamakhtar,

This appear to be a very good setup. But if you see a sharper angle and the EMA4 and EMA13 cosses the EMA50 at about the same time and opens at a wider angle, that is the best case senario.

Im currently profiting from the current trade too.

VyNNeR
  • #12
  • Mar 2, 2007 5:38am Mar 2, 2007 5:38am
hey vynner,

thanks for sharing your method. what was your biggest row of losing trades?
  • #13
  • Mar 2, 2007 5:43am Mar 2, 2007 5:43am
Quoting FXfreak
hey vynner,

thanks for sharing your method. what was your biggest row of losing trades?
Dear FXFreak,

Seriously speaking, most of the time the 50pips stops loss is hardly hit, the most you will get -10 or -20 as you would already exit when the EMA4 and EMA13 crosses back.

With this system, i lose very little and gain alot therefore not a bad risk reward system.

Hope you know what i mean.

VyNNeR
  • #14
  • Mar 2, 2007 6:08am Mar 2, 2007 6:08am
thank you, this is what i wanted to know and this is what i like ;-)

your entry for short today is 1,9515. is that correct?

you wrote that we need a the stochastics also in the 4h-chart. why?

which method do you use for short term trades?

enjoy the day :-)
  • #15
  • Mar 2, 2007 6:20am Mar 2, 2007 6:20am
Hi VyNNer,

A really interesting system, thanks for sharing this with us.

I've just got one question for you - the EMA's are the applied to the close?

Many thanks

Jilly
  • #16
  • Mar 2, 2007 6:27am Mar 2, 2007 6:27am
I'll be back testing this system this month, I would like to know how many signals you see per month and how many you trade out of those you see.

Thank you once again for sharing your system, so far 1/1 wins
  • #17
  • Mar 2, 2007 6:44am Mar 2, 2007 6:44am
Quoting FXfreak
thank you, this is what i wanted to know and this is what i like ;-)

your entry for short today is 1,9515. is that correct?

you wrote that we need a the stochastics also in the 4h-chart. why?

which method do you use for short term trades?

enjoy the day :-)

Dear FXFreak,

My Short entry for today was 1.9557 and its +111 pips open at thie moment.
What a good day to start this thread this way. Hope some of you got the profit too.
It is not necessary to wait for the EMA4 and EMA13 cross to exit.
One could try to exit at good Support or Ressitance level.
But believe me, ive tried sticking to my rule, there was once a trade i got +530pips in one single trade.

Regarding the stochs on 4hours please refer to the previous post that ive replied.

VyNNeR
  • #18
  • Mar 2, 2007 6:46am Mar 2, 2007 6:46am
Quoting JillyB
Hi VyNNer,

A really interesting system, thanks for sharing this with us.

I've just got one question for you - the EMA's are the applied to the close?

Many thanks

Jilly
Dear JillyB,

Yes EMAs are applied to close.

You are welcome.

VyNNeR
  • #19
  • Mar 2, 2007 7:33am Mar 2, 2007 7:33am
Hi VyNNER ,
Nice thread and method. Could I ask,
-How many trades a week, a month do you expect on average?
-Do you trade a routine number of hours or a session, a day? How many hours a day do you trade?
-What is the usual trade length time, 2,4,8 etc hrs?

-Do you scale-in and scale-out of trades, and if so, how do you that?

Regards
Jon
another INTP
  • #20
  • Mar 2, 2007 8:32am Mar 2, 2007 8:32am
About
" 3) Slow Stochatics (13,5,5) on both charts"

I am using mt4 chart. Doesn't seem to have slow stochastic? It is stochastic oscillator in mt4. Available options are %k,%d,slowing...(5,5,13)? not sure whether stoch applies to exponential, linear weighted, simple or smoothed? hmm or maybe this is a totally different indicator?
1 trader viewing now