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4H 5EMA System

  • #1,381
  • Edited 10:50am Nov 21, 2008 10:33am | Edited 10:50am
Hi Sterling.
Thanks for sharing system.
I just start read thread and want be sure , am good understand ur rules for set up and entry . Like u can see on pic , I open short on EU with stoploss equal high from previous bar ( now I think stoploss must be 5 pips high ) on reversal bar , or I must wait for close reversal bar and after that open short?
And one sugestion , I don't know how looks thread latter , but when I read: open trade , stoploss etc , I want see pic with that trade , if it's possible please aply pic with trade , about u writing.
Thanks.
pit
PS so pic , thanks , sorry
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  • #1,382
  • Nov 21, 2008 11:37am Nov 21, 2008 11:37am
Quoting stersuhr
Basically if you understand all the rules it will eventually all come together. None of the rules contradict another. That being said you know two things...one is that you dont put the reversal order in until the reversal bar closes, and two you need a proper setup bar to put a order in. Knowing that on the short we closed it when are buy got triggered but then the long got stopped out before it closed and therfore we dont reverse the buy to a sell. So what next, well #2 you know that you dont enter without a proper setup bar and reversal bar. So...
Just to make sure I am absolutely clear on the reversal rule - you only reverse when the bar closes without the stop being hit -so that in this case (04.00 long entry) if the long trade hadn't been stopped out and closed just above the stop, we should then place a sell order at the stop level?

Thanks for all the great feedback!
  • #1,383
  • Nov 21, 2008 11:44am Nov 21, 2008 11:44am
Quoting petersurrey
Just to make sure I am absolutely clear on the reversal rule - you only reverse when the bar closes without the stop being hit -so that in this case (04.00 long entry) if the long trade hadn't been stopped out and closed just above the stop, we should then place a sell order at the stop level?

Thanks for all the great feedback!

Hi Sterling,

I would think that according to the scenario above, we only reverse if our long stop at 4:00 is not hit because if the stop was hit at the same bar, we would be stopped out and wait for the next valid set up. Is this correct? Thanks.
  • #1,384
  • Nov 21, 2008 11:48am Nov 21, 2008 11:48am
Quoting petersurrey
Just to make sure I am absolutely clear on the reversal rule - you only reverse when the bar closes without the stop being hit -so that in this case (04.00 long entry) if the long trade hadn't been stopped out and closed just above the stop, we should then place a sell order at the stop level?

Thanks for all the great feedback!
That's right, Peter, reversal bar must have closed before the sell stop order is placed at the stop loss level.
You don't have to be right, just don't be too wrong
  • #1,385
  • Nov 21, 2008 12:00pm Nov 21, 2008 12:00pm
Hi Sterling,

so what do you think, what would be the rule here? After the reversal bar, the short signal fails within 2 bars. There is no long signal either? Thanks for the clarification. I think I know I just would like to have some clarification.

Regards
BR
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.
  • #1,386
  • Nov 21, 2008 12:38pm Nov 21, 2008 12:38pm
Quoting petersurrey
Just to make sure I am absolutely clear on the reversal rule - you only reverse when the bar closes without the stop being hit -so that in this case (04.00 long entry) if the long trade hadn't been stopped out and closed just above the stop, we should then place a sell order at the stop level?

Thanks for all the great feedback!
Yeah you got it right. If the buy's stop would not have been hit in the same bar the buy was triggered we would have put a sell stop in when the reversal bar closed.

-Sterling
Founder of Day Trading Forex Live
  • #1,387
  • Nov 21, 2008 12:39pm Nov 21, 2008 12:39pm
Quoting piptrees
Hi Sterling,

I would think that according to the scenario above, we only reverse if our long stop at 4:00 is not hit because if the stop was hit at the same bar, we would be stopped out and wait for the next valid set up. Is this correct? Thanks.
Correct. You only put the reversal order in once the reversal bar closes.

-Sterling
Founder of Day Trading Forex Live
  • #1,388
  • Nov 21, 2008 12:41pm Nov 21, 2008 12:41pm
Quoting bullrock
Hi Sterling,

so what do you think, what would be the rule here? After the reversal bar, the short signal fails within 2 bars. There is no long signal either? Thanks for the clarification. I think I know I just would like to have some clarification.

Regards
BR
Well the red bar right after looks to be the setup bar and I cant tell weather or not the two following bars break its low. You said it didnt so Ill go with that. Being that you have no signal for a trade you cant get it. You would have missed the drop and it looks like a buy signal was givin right after the drop.

-Sterling
Founder of Day Trading Forex Live
  • #1,389
  • Nov 21, 2008 12:43pm Nov 21, 2008 12:43pm
Quoting piptrees
Hi,

Now we are short again at 1.4812. Just wanted to clarify something about weekend trades since we will be closing our trade for the weekend when this candle closes.

Sterling mentioned that on sunday at open, we put in our trade as if nothing has changed. If a gap gives a signal in the opposite direction, open the trade in the direction of the new signal. So can I say that if come sunday, the price opens below the red dotted line, we will go in and short like we are in a short position now. If the price opens the higher than the red dotted...
Thats exactly right! I hope people that have any confusion read your post and look at the chart, it will definatly clear things up for them.

-Sterling
Founder of Day Trading Forex Live
  • #1,390
  • Nov 21, 2008 12:45pm Nov 21, 2008 12:45pm
Quoting stersuhr
Thats exactly right! I hope people that have any confusion read your post and look at the chart, it will definatly clear things up for them.

-Sterling
Thank god for sterling!
  • #1,391
  • Nov 21, 2008 12:56pm Nov 21, 2008 12:56pm
Quoting stersuhr
Well the red bar right after looks to be the setup bar and I cant tell weather or not the two following bars break its low. You said it didnt so Ill go with that. Being that you have no signal for a trade you cant get it. You would have missed the drop and it looks like a buy signal was givin right after the drop.

-Sterling
thanx
.
  • #1,392
  • Nov 21, 2008 2:46pm Nov 21, 2008 2:46pm
For those interested in the 8 hour timeframe, our Buy trade was stopped out 5 pips below the low of the new Setup Bar (arrowed) for -37 pips. We are currently Short from 1.4809 with SL @ 1.5069. The pip count for the month is -892 pips.
Attached Image
If there is ever any doubt then there is no doubt.
  • #1,393
  • Nov 21, 2008 4:20pm Nov 21, 2008 4:20pm
Quoting piptrees
Thank god for sterling!
lol I dont know about that but thank you anyway. Im gonna do the daily chart to bring us current. Kinda a crappy end to the week but we still made good money this week. I sure thought that short on the G/U was going to net more but then the damn market had to rally....ehh I hate the stock market!!!

-Sterling
Founder of Day Trading Forex Live
  • #1,394
  • Nov 21, 2008 4:22pm Nov 21, 2008 4:22pm
Quoting Kristo
For those interested in the 8 hour timeframe, our Buy trade was stopped out 5 pips below the low of the new Setup Bar (arrowed) for -37 pips. We are currently Short from 1.4809 with SL @ 1.5069. The pip count for the month is -892 pips.
I dont follow the 8H chart much, only what you post really but from the looks of things its seems to be a bit choppy. Its almost like once you finally get an entry the market is tired and turns around on you. I have yet to backtest the daily...Ill probably do that tonight.

-Sterling
Founder of Day Trading Forex Live
  • #1,395
  • Nov 21, 2008 4:40pm Nov 21, 2008 4:40pm
Trade #23 - We went long from 1.4843 with a original stop loss of 1.4706 The trade continued in are favor for a while and then gave a signal to go short, at which point we exited the long and went short. The price we exited the long was 1.4916 for a total profit on the long of +73 pips

Trade #24 - We went short at 1.4916 after a proper setup bar and reversal bar. The original stop on this trade was 1.5069 Price moved down and then retraced, since we dont carry into the weekend we exited 5 minutes before the market closed at 1.4916 which is exactly where we got in so we broke even on this one.

Are total pip count for the month is +627 pips. The second to last bar was a setup bar to go long, and had a high of 1.4934 so if the market opens up at 1.4942 or higher we will enter long as soon as the market opens. If the market opens below this price we will re-enter the short that we closed right before the close of the market. Basically we still trust the system we just dont trust what the market can do to us in a gap, therefore we dont want to be in during the weekend but as soon as the market opens you enter depending on the rules. The best way I can explain this is just pretend there was no weekend. So when the market opens you enter where you should be if there had been no gap in trading. I hope this is clear if not ask and ill try to convey the message better.

-Sterling
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Founder of Day Trading Forex Live
  • #1,396
  • Nov 21, 2008 5:38pm Nov 21, 2008 5:38pm
Quoting stersuhr
Trade #23 - We went long from 1.4843 with a original stop loss of 1.4706 The trade continued in are favor for a while and then gave a signal to go short, at which point we exited the long and went short. The price we exited the long was 1.4916 for a total profit on the long of +73 pips

Trade #24 - We went short at 1.4916 after a proper setup bar and reversal bar. The original stop on this trade was 1.5069 Price moved down and then retraced, since we dont carry into the weekend we exited 5 minutes before the market closed at 1.4916...
I'm glad your totals and trades match my EA, we had a total of 625 pips on gbp, congrats
Attached File(s)
File Type: zip gbp.zip   4 KB | 383 downloads
  • #1,397
  • Nov 21, 2008 7:43pm Nov 21, 2008 7:43pm
Quoting ziko123
I'm glad your totals and trades match my EA, we had a total of 625 pips on gbp, congrats
Great job on the EA man, hope you make some money with it It looks to be right on!!!

-Sterling
Founder of Day Trading Forex Live
  • #1,398
  • Nov 21, 2008 7:52pm Nov 21, 2008 7:52pm
have we got a definitive and correct EA to trade this system already??
  • #1,399
  • Nov 21, 2008 8:03pm Nov 21, 2008 8:03pm
Quoting piptrees
Hi,

Now we are short again at 1.4812. Just wanted to clarify something about weekend trades since we will be closing our trade for the weekend when this candle closes.

Sterling mentioned that on sunday at open, we put in our trade as if nothing has changed. If a gap gives a signal in the opposite direction, open the trade in the direction of the new signal. So can I say that if come sunday, the price opens below the red dotted line, we will go in and short like we are in a short position now. If the price opens the higher than the red dotted...
Sterling and piptrees,
I think there's something wrong with what you guys said:

In that chart, we are short, and the last bar IS a setup bar to go long;
So Sunday at openning, we would enter short if it opens below the last candle's high;
We would enter long if it opens above that last candle's high.
(so roughly, the turning point is around the green line, not the red one).

Am I missing something?
  • #1,400
  • Nov 21, 2008 9:03pm Nov 21, 2008 9:03pm
Quoting stersuhr
Great job on the EA man, hope you make some money with it It looks to be right on!!!

-Sterling
thanks, I'm attaching the ea, i didn't implement the friday and 50% rules yet,
I don't feel comfortable trading this live as It lost money in eurusd, eurjpy, audusd, gbpjpy, usdjpy this month, I'm afraid these currencies can start making money using this ea any time and the gbpusd start losing money,
if you know the settings that are good for eurusd and usdjpy then please let us know

in the attached EA you can set the the pips past signal, EMA period, pips past stop,timeframe and spread ,also you can set trailing profit if you wish
Attached File(s)
File Type: ex4 5EMA.ex4   14 KB | 504 downloads
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